Our Strategy

Rationale

We need a market-leading range of products to be attractive to our customers. The product range also needs to be broad due to the fragmented nature of the markets we serve which have a multitude of product requirements.

The broader and more up-todate our product range, the more chance we will have something that will work effectively in our target customers’ applications.

Target/Goal

To release sufficient products to achieve a best year revenue in excess of US$30 million.

Past performance

Over the past few years we have been expanding our product portfolio and have developed a number of highly efficient, leading-edge products.

Planned future actions

Emphasis has now shifted towards products which still have leading efficiencies but which are more mainstream and attractive from a cost perspective.

Rationale

We pride ourselves in the level of service and support we offer to our customers, particularly during the design-in stage.

We have a compelling proposition where customers expect excellent quality and reliability to power their mission-critical equipment, but in particular where they face a power problem due to either heat dissipation or electrical noise. These are the type of customers that we target.

Target/Goal

Organic revenue growth in excess of 10%.

Past performance

We have targeted customers for which reliability is key or where their equipment may be located in harsh environments. These customers value the support and service that our highly trained sales force and power systems engineers deliver.

Planned future actions

We are prioritising our resource on the customers that fit our value proposition. We are deemphasising customers that may have significant revenue potential but where cost is a more critical factor than quality and reliability or engineering support during the design phase.

Rationale

We still have a relatively small share of the available business in some of the accounts we call on. We are continuing to expand our product portfolio so we can address more of the opportunities that are available in these accounts to grow our revenues.

Target/Goal

Organic revenue growth in excess of 10%.

Past performance

We have spent the last few years gaining approved or preferred supplier status at the key customers in the Industrial Electronics, Healthcare, Semiconductor Equipment Manufacturing, and Technology sectors. We are focused on this existing customer base in order to grow our revenues.

Planned future actions

As we expand our product offering through continued product development and acquisitions, we aim to address an increasing proportion of our customers’ requirements with our excellent service and support.

Rationale

Since listing in 2000 we have built a strong brand in the power converter market. This, together with our product portfolio and excellent customer service, has allowed us to consistently take market share and grow significantly. As the Company grows we need to upgrade our systems and processes and, in particular, our supply chain processes in order to scale and run a much larger business as we continue to grow.

Target/Goal

Consistent improvement in lead time and on time delivery.

Past performance

We have evolved from a distributor to a manufacturer, now having manufacturing facilities in China, Vietnam and North America. We have recruited supply chain talent to achieve this transformation.

Planned future actions

As the business continues to grow and become more complex we will continue to add talent to our supply chain operations in 2020.

In 2019 we have also upgraded our ERP system in our sales companies in Asia, Europe and North America.

Rationale

Strong corporate social responsibility is not only important to our key customers but also to our employees and the communities in which we operate. This incorporates not only environmental performance but also health and safety, treatment of our people and business ethics.

Target/Goal

Consistent reduction in our CO2 intensity.

Past performance

We are a full member of the Responsible Business Alliance (RBA). The RBA Code of Conduct to which we comply addresses all of these important ethical and environmental matters, which we strongly endorse.

Planned future actions

We will remain a committed member of the RBA.

We strive to lead our industry on environmental matters and have a committee dedicated to raising awareness of “Green” initiatives, however small.

Rationale

Our strong balance sheet and cash generative business model allow us the capacity to pursue business acquisitions. This is another avenue to expand our product offering and addressable market.

Target/Goal

Bolt-on acquisitions driving inorganic revenue growth in excess of 5%.

Past performance

Through our recent acquisitions we have added both RF power and high power/ high voltage to our product range.

Planned future actions

We continue to look for acquisitions to expand our product offering and other capabilities.