Slides
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2H 2024 & FY2024 Results Presentation 21 February 2025
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2H 2024 performance 2 Revenue S$1,352 million Net profit S$121 million Net margin 9.0% -2.3% against 1H 2024 We saw revenue growth across the majority of our tech domains moving from 1H 2024 to 2H 2024. In particular, we delivered improved performance in the Networking & Communications and Advanced Industrial tech domains. This was offset by the Lifestyle Consumer tech domain, which was impacted by unexpected lower demand. Comparing 2H 2024 to 1H 2024, revenue declined 2.3%. Net profit margin improved to 9.0%, reflecting the resilience of our business model as well as a tight focus on operational efficiency. compared to 8.9% for 1H 2024 -1.8% against 1H 2024
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FY2024 performance 3 Revenue S$2,736 million Net profit S$245 million Net margin 9.0% The Group achieved an improved net profit margin of 9.0% for FY2024, continuing our resilient track record of strong margins. The consistent performance reflects the effectiveness of our long- term business strategy. -9.6% YoY -9.3% YoY vs 8.9% last year FY2024 revenue declined year-on-year due to softer customer demand. Amid a challenging demand environment, Venture remained steadfast to execute its growth initiatives.
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4 Strong cash flow and balance sheet S$10.00 Net asset value per share as at 31 Dec 2024 Venture continued to generate strong net operating cash flow through its resilient business model. Net cash position rose for the sixth consecutive quarter. Strong net cash generated from operating activities Improved by S$198.2 million Working capital position as at 31 Dec 2024 Net asset value per share continued to grow. S$482.5 million for FY2024 We drove an improvement in working capital from 31 Dec 2023 to 31 Dec 2024 with a reduction in inventories and improved trade receivables and payables position. +2.4% YoY
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Proactive management drove improvement in working capital position 5 Through proactive efforts in reducing inventories and optimising trade receivables and payables, our working capital position improved by S$198.2 million from 31 Dec 2023 to 31 Dec 2024. S$’m 31 Dec 2024 31 Dec 2023 Improvement Inventories 686.4 822.9 136.5 Trade receivables 667.6 677.4 9.8 Trade payables (443.5) (391.6) 51.9 AR – AP 224.1 285.8 61.7 Working capital 910.5 1,108.7 198.2 Note: Numbers may not add up due to rounding.
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Shareholder Returns • Proposed dividend • Share Buyback Plan
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20 20 25 25 25 25 25 50 60 50 50 50 50 50 50 50 50 60 70 70 75 75 75 75 75 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Strong dividend track record 7 The Board of Directors have proposed a final dividend of 50 cents per share for FY2024, bringing the full year dividend to 75 cents per share. Final Dividend Total DPS (S$ cents) Interim Dividend Book Closure Date: 6 May 2025 Payment Date: 19 May 2025 Dividend payout as a % of net profit 77 46 54 56 73 70 59 81 89
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Accelerating our Share Buyback Plan 8 To date, we have purchased 1.7 million shares under the Share Buyback Plan announced in November 2023, which authorised the purchase of up to 10 million shares of the Company. For the remaining 8.3 million shares, the Board has approved the acceleration of the Share Buyback Plan going forward. The accelerated Share Buyback Plan, together with our consistent dividend track record, aims to further improve shareholder returns.
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Advancing Our Growth Initiatives
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10 Advancing our growth initiatives Tap rising demand for hyperscale data centres and requirements for faster data interconnectivity to grow our Networking and Communication solutions Growing our share in the Semiconductor Related Equipment tech domain, where surging demand for AI is driving increased need for advanced semiconductor equipment Developing next-gen instruments for applications such as cell and gene therapy and drug discovery, tapping long-term secular growth potential in Life Science & Medical tech domains Developing advanced technology modules for precision control applications, especially for Life Science and Advanced Industrial technology domains Secured new product wins and expanding our share in the Test & Measurement Instrumentation tech domain, boosted by testing of products used in hyperscale data centres Leverage our unique position to help customers with their global manufacturing risk mitigation amidst trade tensions and a fast-evolving geopolitical environment
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Outlook
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Outlook 12 Venture ended FY2024 with a strong balance sheet and recorded a robust profit margin which reflects the resilience and strength of our business model. We are currently at various stages of implementing new business wins in design and manufacturing. These include products in the Networking & Communications, Test & Measurement Instrumentation, Semiconductor Related Equipment, Life Science, Precision Engineering and Lifestyle Consumer technology domains. Though the short-term business environment is deemed uncertain, Venture targets for growth in 2025. We are confident in our ability to effectively navigate complexities by leveraging our differentiating capabilities, resilience and long-standing relationships with key partners. The Group plans to make investments to augment our differentiating capabilities and explore various opportunities to support our growth. To improve shareholder returns, the Board has approved an acceleration of the Share Buyback Plan going forward.
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Thank you Disclaimer This presentation may contain certain forward-looking statements including, but not limited to, statements as to future operating results and plans. These statements are based on our assumptions and estimates and are subject to known and unknown risks and uncertainties and other factors which may cause the actual results, performance or achievements of the Venture Group to differ materially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements. Consequently, readers are cautioned not to place undue reliance on any forward-looking statements.
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Appendix
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FY2024 financials 15 15 S$’m FY2024 FY2023 YoY (%) Revenue 2,735.9 3,025.0 (9.6) Profit before tax 306.6 330.8 (7.3) PBT Margin (%) 11.2 10.9 Income tax expense 60.8 60.0 1.3 Effective Tax Rate (%) 19.8 18.2 Net profit 245.0 270.0 (9.3) Net Profit Margin (%) 9.0 8.9 Diluted EPS (cents) 84.4 92.6 (8.9) Venture continues to achieve strong net profit margin, driven by our differentiated capabilities.
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16 16 Balance sheet as at 31 December 2024 S$’m 31 Dec 2024 31 Dec 2023 Cash & Bank Balances 1,316.7 1,056.3 Net Current Assets 1,941.4 1,908.5 Net Non-Current Assets 952.9 929.4 Total Net Assets 2,894.3 2,837.9 Accumulated Profits 2,175.2 2,148.7 Share Capital & Reserves 714.6 685.4 Non-Controlling Interests 4.5 3.7 Total Equity 2,894.3 2,837.9 Net Asset Value per share (S$) 10.00 9.76 The Group balance sheet remained strong, with higher net asset value per share.