power generation micro-electronics oil & gas power generation chemical & petrochemical...

Power Generation

Micro-electronics

Oil & Gas

Power Generation

Chemical & Petrochemical

Micro-electronics

Advanced Holdings Ltd.

Corporate Presentation

6 September 2004

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

Business Overview

Oil & Gas Chemical & Petrochemical Power Generation Micro-electronics

Corporate Overview

Business Focus

IndustryFocus

Leverage on engineering expertise to focus on the design & supply of Process Equipment used for the proper, safe & efficient operations of process plants

• Chemical & Petrochemical • Power generation• Oil & Gas • Micro electronics

• Primary market: PRC & Singapore• Secondary market: Malaysia, South Korea, Hong

Kong, Thailand and Japan

Established in 1993, Advanced is a homegrown designer and

provider of Process Equipment for key global industrial customers

MarketFocus

Our Reach

South KoreaJapan

Hong Kong

Thailand

SingaporeMalaysia

The PRC

Sales & Marketing Network:- The PRC (Shanghai & Beijing)- Singapore- Malaysia- Seoul

Major projects completed


Major Milestones

• Thermo Electron Corporation• Nanjing representative office

• Incorporation • 1st major project

• Beijing representative office• ISO certification

• Z&J Technologies GmbH• Entered PRC market

• Shanghai office• 1st million dollar contract

• Development of software models• Perrin GmbH• US$2.2m Petrochem. project

1997 1998 1999 2001 200220001996 2003 2004199519941993

• Major odorant process equipment supplier in Asia Pacific

• Established Advanced Malaysia

• US$0.92m oil & gas project with Formosa group, Taiwan

• Consolidated offices

• Guided Wave Inc.

• Corporate restructure• Seoul office


Business Process

1. Securing orders

• Site visits• Study

specifications • Submit proposal

(basic design)

2. Planning & Design

• Review process data

• Internal quality checks

• Finalise design

3. Procurement & Fabrication

• Order components• Schedule for

fabrication

4. Project Execution

• Quality check• Site delivery• Installation• Supervision

5. Testing & Commissioning

• Performance test• Commission• Integration• Acceptance at site

Duration of projects: 3 to 6 months

Value: Range from US$0.2m to several millions


Focus on Design Engineering

Provide customised Process Equipment through:- Extensive design and engineering capabilities- Close collaboration with established principals

Select the most appropriate technology and designs to cater to the specific needs of our customers

Pool of qualified engineers- Specialise in product design, project management, and

product evaluation and testing - Integration into our customers’ plants and facilities

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

Our Products & Projects


Process Equipment Defined

What is Process Equipment?

Engineered devices and systems used in a wide range of industrial and laboratory applications

Functions of Process Equipment

Essential for the proper, safe and efficient operation of process plants

Example of Applications

Process controls, measurement, analysis,monitoring and operations

Where are our products used?

Oil & Gas Micro- electronics

Power Generation


Established companies in key growth industries

Based on percentage of turnover in FY2003

63.8% 27.4% 8.6% 0.2%

Chemical & Petrochemical Industry

Process Analyser System

• Consisting of analysers, sample conditioning system and shelter, it is used mainly in the quality control of products and the environment

Chemical Dosing System

• Automatically injects a precise quantity of various chemical for the treatment of

products and protection of plant equipment

Catalyst Metering Package

• Transfers catalyst, in paste form, in a precise quantity in a polypropylene plant

Oil & Gas Industry

Gas Booster System

• Increases the pressure of gases, such as nitrogen and natural gas, for distribution and wastage reduction

Gas Odorisation System

• Odorises natural gas/town gas/LPG due to safety regulation

LNG Sampling System

• Vaporises liquefied natural gas so that it’s properties can be analysed accurately

Power Generation Industry

Chemical Dosing System

• Automatically injects a precise quantity of various chemicals for the treatment of cooling water system in

power plants

Major Projects

Industry Project Customer Year

Oil & Gas Supply of odorant package Daelim Industrial Co., Ltd (South Korea)

2004

Oil & Gas Supply of NIR analyser systems & development of blend product software models

Uhde Edeleanu S.E. Asia Pte Ltd (Singapore)

2003

Oil & Gas Supply of 10-stream process NIR analyser system & refinery blend product software models

China Oil Dalian International Trading Co., Ltd (PRC)

2003

Power Gen. Supply of chemical dosing system for power plant

Hyundai Engineering & Construction Co., Ltd (South Korea)

2002

Oil & Gas Odorant system revamp for the Beijing City Gas Project

Beijing Coal Gas Company (PRC) 2002

Chem. & Petrochem.

Analyser package including shelter China Jinshan Associated Trading Corporation (PRC)

2002

Oil & Gas LNG sampling system Korea Gas Corporation (South Korea)

2002

Power Gen. Chemical dosing system Samsung Corporation (South Korea)

2001

Oil & Gas Odorant package for offtake station PTT Natural Gas Distribution Co., Ltd. (Thailand)

2001


Some of our Major Projects

TongYeong LNG Terminal

Seraya Power Station

Petron Bataan

POSCO

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

Our Competitive Strengths


Experienced Team

Founder & Managing Director

• More than 17 years of experience

• Doctorate in Engineering

Executive Directors& Officers

• At least 10 years of relevant industry experience

Pool of Qualifiedengineers

• Considerable knowledge and field experience


Niche Position

Focus on niche areas inchemical & petrochemical;

and oil & gas industries

• Coal gasification

• Coal liquefaction

• PTA production

• MDI production

• Ultra-low temperature

(cryogenics) applications

Advantages of niche focus

• Flexibility

• Sales efforts intensified

• Familiar with project

movements and customers’

requirements and decisions

• Higher rates for securing

orders

+


Strong Foothold in the PRC

Penetrated the PRC market since 1994

• 2 offices (Beijing and Shanghai)

PRC market constitutes a major share of our total annual revenue

• FY2003: 87.9%• FY2002: 88.7%• FY2001: 71.9%


Exclusive Distributors

Suppliers are established equipment manufacturers worldwide

Exclusive distributorship agreements with 6 major principalson approved vendor lists of customers

Canada

Germany

USA


Quality Assurance

Stringent quality assurance procedures throughout our

work processes – provide high quality products and services that meet

customers’ satisfaction

ISO9001:2000 certified by Bureau Veritas Quality International

– System integrators – design of chemical/odorant injection systems, chlorination systems, analysis systems, wellhead panels, catalyst metering package

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

Key Financial Highlights

Revenue

88%89%

72%

6%10%

20%

6%1%

8%

0

4

8

12

16

FY01 FY02 FY03

PRC Others Singapore

10.2

11.4 11.2

S$’m

Others: Hong Kong, South Korea, Malaysia and United Kingdom

Profit Before Tax (PBT)

Note: In FY2002, there was a pre-tax loss of S$2,000 and S$23,000 in Singapore and Others markets respectively.

85%

104%

35%

10%

39%

5%

26%

0

1

2

3

FY01 FY02 FY03

PRC Others Singapore

0.5

0.7

2.4

CAGR 247%

S$’m

Others: Hong Kong, South Korea, Malaysia and United Kingdom


PBT Margins

4.95.9

21.4

0

5

10

15

20

25

FY01 FY02 FY03

%

Key Financial Indicators

Profitability Ratio FY2003

Net Margin 17.0%

Gross Margin 36.5%

PBT Margin 21.4%

Efficiency Ratios FY2003

Return on Asset 27.1%

Return on Equity 54.8%

Activity Ratios FY2003

Average Debtors Turnover 97 days

Average Payables Turnover 126 days

Average Inventory Turnover 11 days

Gearing ratio 0.14x

NTA per share 4.0 cents

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

The Road Ahead …Business Strategy & Future Plans

Future Plans At A Glance

1. Market Development 2. Increase Focus

3. Product Development 4. Explore Opportunities

Acquisitions • Investments

Joint Venture • Alliances

Secure new suppliers

Expand product range

ExpandRegional

Sales Network

ExpandCustomer

Base+ Larger scale projects

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

In conclusion…


Vision

To be the market leader in the

DESIGN & supply of Process Equipment

renowned for our commitment

to meet or exceed our

global customers’

expectations & specifications


Investment Considerations

Niche focus intensifies sales efforts

Strong growing market in the PRC & South Korea

Growth potential of key industries

Extensive engineering design expertise

Strong financial track record with healthy pre-

tax profit margins

Power Generation

Micro-electronics

Oil & Gas

Power Generation


Micro-electronics

End

power generation micro-electronics oil & gas power generation chemical & petrochemical...

Documents

oil gas project

customised process equipment

product design

design engineering

product evaluation

singapore2003oil gassupply

siteduration of projects

extensive design