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4
MISSION
To be the one of the top knowledge-based, value-added distributors of electronics and IT solutions in the Asia Pacific region;
To be a leading Asian-based creator of innovative proprietary technology products and solutions
5
CORE COMPETENCIES
Peripherals and Software
Electronic Components
Data Networking/Service Offerings/
Design & Development
StrategicTechnologies
6
REGIONAL PRESENCE
China
HK
VietnamThailand
MalaysiaS’poreIndonesia
India
Australia
Philippines
Korea
Taiwan
7
ACHIEVEMENTS (Jan - July 2001) Corporate
– Strengthening Group Dynamics• Acquisition of subsidiaries in Vietnam & Australia
Business– New Strategic Partnerships– Four new distributorships secured:
• Infineon • Western Digital• Transpoint Technology• Stream Machine Inc
– Expected to contribute >$80 million to Group revenue in FY2001
8
ACHIEVEMENTS(Jan - July 2001)
Geographic Expansion : China– Achieva Technology China– 51% owned by Achieva – 49% owned by HK-based Interlead Corporation– Paid up capital : HK$10 million– Distribution and service centre for IT products– Distribution network covering 13 cities and 28
retail outlets in PRC– Expected to contribute S$40 million to Group
revenue in 2H
9
PRESENCE IN PRC
• BEIJINGBEIJING
• SHANGHAISHANGHAI• NANJINGNANJING
• WUHANWUHAN
• GUANGZHOU (HQ)GUANGZHOU (HQ)
• SHENZHENSHENZHEN
• CHONGQINGCHONGQING• CHENGDUCHENGDU
• XI’ANXI’AN
• SHENYANGSHENYANG
• JINANJINAN
• ZHENGZHOUZHENGZHOU
• HANGZHOUHANGZHOU
10
ACHIEVEMENTS(Jan - July 2001)
Technology– IP and Patents
• HDD connectivity• Notebook batteries• Expect to file 7 patents on NanoStorage this
year
11
ACHIEVEMENTS(Jan - July 2001)
Technology– NanoStorage
• Working prototype of controller device on schedule• Received engineering sample • Expect to demonstrate complete working engineering
sample by year-end• Nanochip currently raising funds to bring the prototype
into production• Received in-principle approval for government grant for
R&D support
13
MARKET OUTLOOK - THE BAD NEWSVisibility for electronics industry still foggy
– Singapore’s electronics output declined 26% in Q2 2001
Semiconductor industry continues to be affected by inventory overhang
Major global electronics players are reporting losses and cutbacks
Contract manufacturing not expected to recover soon
14
MARKET OUTLOOK - THE GOOD NEWS
PC industry in Asia-Pacific showing signs of initial recovery – Gartner: Asia-Pacific registered a 12.5% y-o-y
growth in PC shipments in 2001Q2• Gartner Dataquest, August 2001
Contract manufacturing services expected to recover and hit US$231 billion by 2005 - up 124% from US$103 billion in 2000
• IDC July 2001
15
MARKET OUTLOOK - THE GOOD NEWS
Consolidation of electronics players => new opportunities for stronger players
New emerging markets with strong growth potential :– China
• 1H 2001 growth : 8% - full year growth expected to be maintained
• WTO entry• Beijing Olympics
– India• IT hub of South Asia
16
GOING FORWARD
To ride out the storm with prudent management and strategic focus on niche competencies and markets
To expand strategically in high-growth emerging economies such as China
To continue to scale up the value chain to provide a full range of knowledge-based value-added services and solutions
To leverage on existing knowledge base, wide network of customers and vast portfolio of products to develop and deliver new offerings to the market
To grow IP and proprietary products/solutions portfolio in high-growth leading-edge technology sectors
To build up professional talent to strengthen management and technological expertise
19
TURNOVER BY PRODUCT
FY2000 –1H
86%
1.00%13.00%
S$’000
83%
15.70% 1.30%
PC peripherals & softwareElectronic componentsData network
FY2001-1H
20
TURNOVER BY MARKET
48 46.649.256.5
45.6
55
17.610.3
0.1
58
08.6
06.7
0
10
20
30
40
50
60
70
FY2000-1H FY2001-1H
S'pore Malaysia Australia VietnamPRC Indonesia Philippines
S$million
22
PBT BY PRODUCT
-1000
-500
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY00-1H FY01-1H
PC peripheralsand software
electroniccomponents
Data networkpdts
Strategicinvestments
Others
S$’000
24
FINANCIAL HIGHLIGHTS
Strong turnover growthStable net profit despite margin squeezeGrowth in profit contribution from electronics
componentsStrategic investments in NanoStorage of $0.8M Strong balance sheet - cash position – up from
$22M to $27M Inventory down to $31MTrade receivables –up from $38M to $56M
27
FINANCIAL OUTLOOK
Challenging conditions for 1H and outlook for 2H uncertain
Revenues expected to continue growing: Estimated total impact >S$120m for FY2001
Profit margins continue to be pressured with increasing competition and electronics slowdown
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