Advanced Holdings Ltd.
Corporate Presentation
6 September 2004
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Business Overview
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Corporate Overview
Established in 1993, Advanced is a homegrown designer and
provider of Process Equipment for key global industrial customers
Business
Focus
Leverage on engineering expertise to focus on the
design & supply of Process Equipment used for the
proper, safe & efficient operations of process plants
Industry
Focus
• Chemical & Petrochemical
• Oil & Gas
Market
Focus
Oil & Gas
• Power generation
• Micro electronics
• Primary market: PRC & Singapore
• Secondary market: Malaysia, South Korea, Hong
Kong, Thailand and Japan
Chemical & Petrochemical
Power Generation
Micro-electronics
Our Reach
South Korea
  Japan

The PRC

Malaysia
Sales & Marketing Network:
- The PRC (Shanghai & Beijing)
- Singapore
- Malaysia
- Seoul
 Hong Kong
 Thailand

Singapore
Major projects completed
Major Milestones
• Major odorant process
equipment supplier in
Asia Pacific
• Incorporation
• 1st major project
• Development of software models
• Perrin GmbH
• US$2.2m Petrochem. project
• Beijing representative office
• ISO certification
• Established
Advanced Malaysia
• Consolidated offices
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
• Z&J Technologies GmbH
• Entered PRC market
• US$0.92m oil & gas project
with Formosa group, Taiwan
• Thermo Electron Corporation
• Nanjing representative office
Oil & Gas
• Guided Wave Inc.
• Shanghai office
• 1st million dollar contract
Chemical & Petrochemical
Power Generation
• Corporate restructure
• Seoul office
Micro-electronics
Business Process
1. Securing
orders
• Site visits
• Study
specifications
• Submit proposal
(basic design)
2. Planning &
Design
• Review process
data
• Internal quality
checks
• Finalise design
Duration of
projects: 3 to 6
months
Value: Range from
US$0.2m to
several millions
Oil & Gas
3. Procurement &
Fabrication
• Order components
• Schedule for
fabrication
5. Testing &
Commissioning
•
•
•
•
Performance test
Commission
Integration
Acceptance at site
Chemical & Petrochemical
4. Project
Execution
•
•
•
•
Quality check
Site delivery
Installation
Supervision
Power Generation
Micro-electronics
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
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Our Products &
Projects
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
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
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Where are our products used?
Established companies in key growth industries
Chemical
& Petrochemical
Power
Generation
Oil & Gas
63.8%
27.4%
Microelectronics
8.6%
Based on percentage of turnover in FY2003
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
LNG Sampling System
• Vaporises liquefied natural gas so that it’s
properties can be analysed accurately
Gas Odorisation System
• Odorises natural gas/town gas/LPG
due to safety regulation
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
Oil & Gas
Chemical & Petrochemical
POSCO
Power Generation
Micro-electronics
Our Competitive
Strengths
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
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
Qualified
engineers
• Considerable knowledge and field
experience
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Niche Position
Focus on niche areas in
chemical & petrochemical;
and oil & gas industries
+
Advantages of
niche focus
• Coal gasification
• Flexibility
• Coal liquefaction
• Sales efforts intensified
• PTA production
• Familiar with project
• MDI production
• Ultra-low temperature
(cryogenics) applications
Oil & Gas
Chemical & Petrochemical
movements and customers’
requirements and decisions
• Higher rates for securing
orders
Power Generation
Micro-electronics
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%
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Exclusive Distributors
USA
Germany
Canada
Suppliers are established equipment manufacturers worldwide
Exclusive distributorship agreements with 6 major principals
on approved vendor lists of customers
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
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
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Key Financial
Highlights
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Revenue
S$’m
16
11.4
12
10.2
1%
10%
8%
8
4
11.2
6%
6%
20%
89%
88%
FY02
FY03
72%
0
FY01
PRC
Others
Singapore
Others: Hong Kong, South Korea, Malaysia and United Kingdom
Profit Before Tax (PBT)
S$’m
3
2.4
2
1
0
5%
10%
CAGR 247%
85%
0.7
0.5
26%
39%
35%
104%
FY01
FY02
PRC
Others
FY03
Singapore
Others: Hong Kong, South Korea, Malaysia and United Kingdom
Note: In FY2002, there was a pre-tax loss of S$2,000 and S$23,000 in Singapore and Others markets respectively.
PBT Margins
%
25
21.4
20
15
10
5
4.9
5.9
0
FY01
Oil & Gas
Chemical & Petrochemical
FY02
FY03
Power Generation
Micro-electronics
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
The Road Ahead …
Business Strategy
& Future Plans
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
Future Plans At A Glance
1. Market Development
Expand
Regional
Sales
Network
+
Expand
Customer
Base
3. Product Development
2. Increase Focus
Larger scale projects
4. Explore Opportunities
Secure new suppliers
Acquisitions • Investments
Expand product range
Joint Venture •
Alliances
In conclusion…
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
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
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
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
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics
End
Oil & Gas
Chemical & Petrochemical
Power Generation
Micro-electronics