1H 2020 RESULTS PRESENTATION...85 95 105 115 125 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H20 Cash Conversion Cycle (days) Trade Receivable Turnover (days) Trade Payable

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1H 2020 RESULTS PRESENTATION

Tuesday, 11 August 2020

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AGENDA

By moving forward and thinking forward,Serial System helps its partners to be more competitive in the marketplace, today and

in the future

CORPORATE OVERVIEW

FINANCIAL RESULTS

OUTLOOK & STRATEGIES

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3Your Integral Component to Success

CORPORATE OVERVIEW

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One of Asia Pacific’s

largest electronic distribution

networks

Wide product range and diversified

customer portfolio

One of the largest electronic

components distributor

listed on SGX

Total Shares: 896 million

Free Float: 39%Market Capitalisation: S$69.0M

(As at 7 Aug 2020)

Dividend yield: 2-22% p.a. over 10 years

(FY2019: 4.3%)P/B: 0.36

SERIAL SYSTEM AT A GLANCE

1H 2020 FY 2019

Hong Kong 47% 50%

China 14% 12%

South Asia 26% 26%

South Korea 4% 4%

Taiwan 9% 8%

100% 100%

1H 2020 FY 2019

South

Asia 100% 100%

SERIAL

SYSTEM

listed in

Singapore

in 1997

Consumer Products

(5%)*

Electronic Components

(91%)*

* Group Revenue

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Supporting a network of global brands, Serial System is a leading distributor of electronic components in Asia and a dealer

for a variety of consumer products. It is also a strategic investor in businesses in healthcare, managed print services and fast moving

consumer products.

EXTENSIVE NETWORK & DIVERSIFIED BUSINESS

Electronic ComponentsDistribution

Consumer ProductsDistribution

Managed PrintServices

Hospitality and Healthcare Solutions

Medical DevicesAssemblyand Distribution

Fast Moving Consumer Products

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… more than 90 Franchised Product Lines in Serial System Group

PARTNERING LEADING SUPPLIERSElectronic Components Distribution

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PARTNERING LEADING SUPPLIERSConsumer Products Distribution

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CONSUMER PRODUCTS DISTRIBUTION

• The Group’s 100%-owned subsidiary: Achieva Technology Sdn. Bhd.

• Major suppliers include AMD, Intel and Gigabyte.

• Achieva Technology works closely with partner brands to both fulfil their distribution needs and to create a one-stop solution for their customer needs in both end-user and enterprise markets.

• In the modern e-commerce market, Achieva Technology already maintains key channels on online platforms such as Qoo10 and Lazada.

Achieva Technology Group

• The Group’s 100%-owned subsidiary: Swift-Value Business Pte. Ltd.

• Major suppliers include Hewlett-Packard (HP), Epson and Canon. Also the authorized reseller of products from major brands such as Fuji Xerox, Samsung, Oki and Panasonic.

• Swift-Value is the largest HP printer supplies distributor, having captured over 45% of the Singapore market. They keep their top spot by maintaining close relationships with hundreds of customers, ranging from heartland operators to retail superstores such as Popular.

• Providing fast and value-added service and having the ability to retain customer loyalties help Swift-Value offers an extensive and consistent network for their suppliers and partner brands.

• Since 2020, Swift-Value is also a logistics service provider for Ultimaker, one of the premier 3D-Printer brands, based out of the Netherlands. With the Group’s vast networks, Swift-Value offers the best value and service for partners in this fast-rising industry.

Swift-Value Business Pte. Ltd.

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Print-IQ Singapore Pte Ltd

• Started in 2014, Singapore-based Print-IQ (Singapore) is 91.43% owned by Serial System

• Provides managed print services and maintains and distributes copiers and printers

• Premier partner for HP copiers

• Distribution Partner for top 3D printer brand, Ultimaker

CONSUMER PRODUCTS DISTRIBUTIONManaged Print Services

Under the managed print services business model, companies outsource their printing, scanning and copying functions, as well as the management of the equipment, to external service providers like Print-IQ Singapore, PT SMI and Print-IQ Thailand. This reduces their operating

costs and wastage.

Print-IQ (Thailand) Co., Ltd

• Acquired a 49% stake in March 2020

• Provides managed print services and manages printing equipment in terms of maintenance and toner upkeep

PT Sentral Mitra Informatika Tbk

• Set up in 2008, PT SMI is 20% owned by Serial System since November 2018

• Listed on Development Board of Indonesia Stock Exchange

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10Your Integral Component to Success 10

OTHER BUSINESSESPart of Group’s diversification into investment holding of high-margin companies

• Core businesses: Hospitality and Healthcare solutions

• Hospitality solutions: Build based on a core venue management application suite known asVenue360.

• Leading edge modules within Venue360: Electronic meal ordering system (eMOS), IntelligenceRoom Infotainment Solution, Digital Media Content Management System, and IncidentTracking and Reporting System.

• Clients: Khoo Teck Puat Hospital, Ng Teng Fong General Hospital, Jurong Community Hospital,Changi General Hospital, Institute of Mental Health, St Andrew’s Hospital, Gleneagles Hospital,Mount Elizabeth Orchard, Parkway East Hospital, Parkway Mount Elizabeth Novena, YishunCommunity Hospital, Sengkang Hospital, Sengkang Community Hospital, Alexandra IntegratedHealth and Bright Vision Community Hospital.

Serial MultiVision Pte. Ltd. (100%-stake)

• Assembly and distribution of medical devices

• Offers full range of standard and customised perfusion tubing packs marketed over the Asia-Pacific region:

• Customized Heart Lung Pack• Blood Cardioplegia Set• Angio Pack• Sterile Procedural Pack • SurgiAid ® Collagen Wound Dressing

• ISO 13485-certified and its perfusion products bear the coveted CE certification mark.

Contract Sterilization Services Pte Ltd (100%-stake)

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FINANCIAL RESULTS

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US$’000 1H2020 1H2019 Change (%)

Sales 314,287 431,252 (27)

Gross Profit 19,280 30,086 (36)

Gross Profit Margin (%) 6.1 7.0 (0.9) ppt*

Net Profit After Tax(Attributable to equity holders of the Company)

(4,483) 5,429 NM#

EPS - fully diluted (US cents)(1) (0.50) 0.61 NM

NAV per share (US cents)(2) 30/06/2020: 14.80

(1) Earnings per ordinary share on a fully diluted basis are computed by dividing net (loss)/profit attributable to equity holders of the Company by the weighted average number of

shares in issue during the period of 895,841,914 (1H2019: 895,841,914) after adjusting assumed conversion of all potential dilutive ordinary shares.

(2) Net assets value per ordinary share as at 30 June 2020 is calculated based on the net assets value attributable to the equity holders of the Company as at 30 June 2020 and the

aggregate number of ordinary shares of 895,841,914.

SNAPSHOT OF 1H2020 PERFORMANCE

* ppt denotes percentage points# NM denotes Not Meaningful

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• Revenue of US$314.3M in 1H2020, a decrease of 27% from US$431.3M in 1H2019

• Mainly due to the termination of the distribution business with Texas Instruments (“TI”)

• Excluding the impact of decline in turnover due to TI termination, turnover for the electronic components distribution business only decreased

by 9%, mainly due to COVID-19 pandemic which has caused supply chain disruptions and weigh on global consumer sentiment and demand,

compounding challenges earlier imposed by escalating China-US trade tensions

• Consumer products distribution business sales increased 33% to US$23.1 million on the back of higher sales in Malaysia, as demand for tele-

conferencing and computer accessories increased as a result of the movement control order imposed by the Malaysian government on 18 March

2020

• Gross profit margin declined to 6.1% in 1H2020

• Mainly due to lower margins achieved by both the electronic components distribution and consumer products distribution businesses as a result

of keen market competition in a challenging environment

• Impact of lower gross profit margin was mitigated by the Group’s South Korea electronic components distribution subsidiary, which secured

higher-margin product lines in 1H2020

• Net loss of US$4.5M in 1H2020 compared to NPAT of US$5.4M in 1H2019

1H2020 HIGHLIGHTS

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REVENUE GROWTH TRENDSERIAL SYSTEM GROUP

-

200

400

600

800

1,000

1,200

1,400

1,600

44 92

186 184 183 228

315 354

382

545

616 658

817

1,036

1,222

1,403 1,492

1,527

792

431.3

314.3

Revenue (US$' million)

2%

-48%

8%

43%

13%

7%

24%

27%

18%

15%

6%

-27%

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PROFITABILITY

33.4

50.7

57.5 62.6

73.5

90.4 91.5

97.4

105.1

118.6

54.2

30.1

19.3

8.7%

9.3% 9.3% 9.5%9.0% 8.7%

7.5% 6.9%7.0%

7.8%

6.8% 7.0%

6.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H19 1H20

Gross Profit & Gross Profit Margin(US$' million)

GP GP%

17%

1%

6%

-54%

28%

8%

13%

52%

13%

9% -36%

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PROFITABILITY

5.1

12.0

10.1

7.9

11.2

16.1

11.0

4.6

9.6

17.7

8.0

5.4

(4.5)

1.3%

2.2%

1.6%

1.2% 1.4%

1.6%0.9%

0.3%

0.6%

1.2%

1.0%

1.3%

-1.4%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0


Net Profit & Net Profit Margin(US$' million)

Net Profit Net Profit Margin (%)

-21%

133%

-16%

41%

44%

-31%

-59%

110%

85%

-55%

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8.8

20.2 19.9 18.9

22.0

30.8

26.0

23.5

26.1

43.2

19.6

12.0

(0.4) (5.0)

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0


EBITDA (US$' million)

-5%

PROFITABILITY

130%

-2%

17%

40%

-16%

-9%

11%

65%

-55%

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FINANCIAL POSITION

173.8

218.3 211.5

277.0

347.8

382.6

430.6

468.6 458.5

332.2 312.0

120.7

147.5 147.0

218.7

295.6 324.1

372.0 397.5

371.5

230.7 219.4

1.4 1.5

1.4

1.3

1.2 1.2

1.2 1.2 1.2

1.4 1.4

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

-

100.0

200.0

300.0

400.0

500.0

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H20

Maintaining Healthy Current Ratio

Current Assets Current liabilities Current Ratio

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86.5

98.7

104.5 110.0 122.2

119.4 124.8

145.0

144.5 147.2

140.5

37.6

71.2

56.3

97.9

120.2

138.0 139.3

166.5

155.9

82.3 84.0

43%

72%

54%

89%

98%

116%112%

115%

108%

56%60%

0%

20%

40%

60%

80%

100%

120%

140%

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0


Net Gearing Ratio

Shareholders' Equity Net Borrowings Net Gearing Ratio

FINANCIAL POSITION

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FINANCIAL POSITION

38

55

61

62 67

53 49 51

54

87

76

31

36

33

32 33

33 33 35

29

40 41 44

51 41

30 32

38 40

42 41

66

75

51

70 69

60

66

58 56

58 66

113

110

25

35

45

55

65

75

85

95

105

115

125


Cash Conversion Cycle (days)

Trade Receivable Turnover (days) Trade Payable Turnover (days) Inventory Turnover (days) Cash Conversion Cycle (days)

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DIVIDEND YIELD

- 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

0.33

0.13

0.28

0.30

0.22

0.24

0.30

0.35

0.18

0.29

0.40

0.22

0.16

0.25

1.00

0.25

0.38

0.67

0.33

0.30

0.30

0.75

0.50

0.17

0.46

0.46

0.13

Interim Special Final

8.9%

8.5%

6.1%

7.9%

5.0%

6.3%

8.0%

6.3%

2.4%

4.6%

21.9%

4.3%

Singapore

Cents

Total Dividend Payout

(In Cent (SGD))

(Interim & Final) each year

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OUTLOOK & STRATEGIES

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Uncertainties

? Greater uncertainty in the global market and China market due to the COVID-19 outbreak as well as ongoing China-US trade tensions

? Global economic slowdown and keen market competition

Bright spots

New applications in IoT, AI, mobility services and autonomous vehicles

Greater deployment of 5G technology

China accelerating its semiconductor production

INDUSTRY OUTLOOK

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• The Group will continue its cost-containment measures, such as tiered salary cuts as well as

optimising operating efficiency

• The Group will also continue to expand its range of supplies of semiconductors and seek to

position itself as the preferred supplier amongst its customers

GROUP OUTLOOK

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The presentation herein may contain forward-looking statements by the management of Serial System Ltd (“Serial System”) that pertain to expectations for financial performance of future periods versus past periods.

Forward–looking statements involve certain risks and uncertainties because they relate to future events. Actual results may vary materially from those targeted, expected or projected due to several factors. Such factors are, among others, general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures as well as changes in tax regimes and regulatory developments. Such statements are not and should not be construed as management’s representation on the future performance of Serial System. Therefore, the actual performance of Serial System may differ significantly from expressions provided herein.

This presentation does not constitute an invitation or an offer to sell, or solicitation of an offer to buy any securities in connection with, any contract or commitment whatsoever.

This presentation has been prepared exclusively for the parties presently being invited for the purposes of discussion. Information contained in this presentation does not constitute a prospectus or offering circular in whole or in part.

Thank You

Documents

1H 2020 RESULTS PRESENTATION...85 95 105 115 125 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H20 Cash Conversion Cycle (days) Trade Receivable Turnover (days) Trade Payable