VICOM : 3Q2023 Business Update

3rd Quarter 2023 Business Update

8 November 2023

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares ("Shares") in VICOM Ltd (the "Company"). The value of shares and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, the Company or any of its affiliates. An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested. The past performance of the Company is not necessarily indicative of its future performance.

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Contents

• Operational Update for 3rd Quarter 2023
• Financial Update for 3rd Quarter 2023

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OPERATIONAL UPDATE FOR 3RD QUARTER 2023

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Operational Update for 3rd Quarter 2023

Business Climate

• Although inflationary pressure has begun to ease in the quarter, it remains elevated. Business cost still remain high, particularly materials and staff costs.

Vehicle Inspection Business

• The vehicles inspection business has largely been stable, except that there was lower demand for new car registrations / emission testing services as a result of low Certificate of Entitlement quota.
• VICOM has been appointed by LTA as one of the Authorised Partners for installation of Vehicle On-Board Unit (OBU) which will commence from December 2023.

Non-Vehicle Testing Business

• The demand for the non-vehicle testing business has been adversely affected by the weak manufacturing sector which is into its 12th month of decline. As a result, competition for the reduced demand has become very keen.

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FINANCIAL UPDATE

FOR

3RD QUARTER & YTD SEP 2023

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Income Statement - 3rd Quarter & YTD Sep 2023

	3Q 2023	3Q 2022	Fav/(Adv)	9 mths to	9 mths to	Fav/(Adv)
	30 Sep 23	30 Sep 22
	$'000	$'000	$'000	%	$'000	$'000	$'000	%
Revenue	27,252	27,404	(152)	(1)	83,132	80,735	2,397	3
Operating Costs	(19,326)	(19,284)	(42)	-	(58,629)	(56,091)	(2,538)	(5)
Operating Profit	7,926	8,120	(194)	(2)	24,503	24,644	(141)	(1)
Profit after Tax	6,658	6,556	102	2	20,804	19,854	950	5
Profit after Tax and
Minority Interest	6,554	6,461	93	1	20,486	19,567	919	5
(PATMI)
EBITDA	9,865	9,943	(78)	(1)	30,166	30,039	127	-

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Income Statement - 3rd Quarter & YTD Sep 2023

3Q 2023 versus 3Q 2022

• Revenue and Operating Profit ↓ $0.2 million respectively - Mainly from the lower business volume in the non- vehicle testing business arising from the slow-down of the manufacturing sector.
• PATMI ↑ $0.1 million - As a result of higher interest income offset by lower operating profit.

YTD Sep 2023 versus YTD Sep 2022

• Revenue ↑ $2.4 million - Contributed by higher revenue from both the vehicle inspection and the non-vehicle testing business.
• Operating Costs ↑ $2.5 million - Higher operating costs of $1.9 million as a result of inflationary pressure and higher business volume. There was a lower write-back of allowance for expected credit losses of $0.4m and lower COVID-19 Government reliefs of $0.2 million.
• Operating Profit ↓ $0.1 million - Consequently Operating Profit was lower by $0.1m. However if the lower write-back from expected credit losses of $0.4m and lower COVID-19 Government reliefs of $0.2m have been excluded, Operating Profit would have been higher by $0.5m.
• PATMI ↑ $0.9 million - As a result of higher interest income offset by lower operating profit.

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Balance Sheet

	Sep 23	Dec 22	Fav/(Adv)
	$'000	$'000	$'000	%
Cash & Cash Equivalents	46,933	60,491	(13,558)	(22.4)
Other Current Assets	15,864	13,693	2,171	15.9
Non-Current Assets	123,473	112,781	10,692	9.5
Total Assets	186,270	186,965	(695)	(0.4)
Current Liabilities	29,834	30,805	(971)	(3.2)
Non-Current Liabilities	31,090	31,029	61	0.2
Total Liabilities	60,924	61,834	(910)	(1.5)
Total Equity	125,346	125,131	215	0.2

• Cash and cash equivalents decreased by $13.6 million mainly from payments of dividends, Jalan Papan land parcel

and CAPEX, offset by cash generated from operations.

•

•

Other Current assets increased by $2.2 million mainly from higher trade receivables.

Non-current assets increased by $10.7 million mainly from additions in CAPEX and the completion on the

acquisition of the land parcel at Jalan Papan, additional investment in Foretellix offset by depreciation.

• Total liabilities decreased by $0.9 million mainly from the decrease in trade and other payables and income tax payables.

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Cashflow

	3Q 2023	YTD Sep 2023
	$'000	$'000
Cash from Operating Activities	10,632	21,832
Utilisation of Cash:
Dividends to Shareholders	(9,750)	(21,522)
CAPEX	(3,367)	(6,053)
Jalan Papan land parcel	-	(5,264)
Purchases of unquoted equity instruments held at FVTOCI	-	(2,355)
Payments under lease liability	(296)	(867)
Acquisition of subsidiaries, net of cash	(520)	(520)
Total Utilisation of Cash	(13,933)	(36,581)
Interest received	187	1,200
Others	5	(9)
Net Cash Used	(3,109)	(13,558)

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