Micro-Mechanics (Holdings) Ltd · SGX:5DD
Micro-Mechanics (Holdings) — Shareholder Meeting (October 2017)
24 slides from Micro-Mechanics (Holdings)'s shareholder meeting presentation, Oct 30, 2017
Slide 1: FY2017 AGM & EGM
FY2017 AGM & EGM 30 October 2017
Slide 2: Agenda
perfect parts and tools, on time, every time Agenda 2.00 pm – 2.15 pm Presentation 2.15 pm – 2.30 pm Q&A 2.30 pm – 3.30 pm A&M and EGM Proceedings 4.00 pm End of AGM & EGM Micro-Mechanics AGM & EGM FY2017 2
Slide 3: Business & Industry
perfect parts and tools, on time, every time Business & Industry Chris Borch, CEO Low Ming Wah, COO Micro-Mechanics AGM & EGM FY2017 3
Slide 4: Corporate Overview
Corporate Overview • Founded in 1983 in Singapore • Design and manufacture high precision tools and parts used in process-critical applications for the wafer- Our Mission is… fabrication and assembly processes of the semiconductor industry Perfect Parts and Tools On • Serve a worldwide base of custo
Slide 5: Focusing on Key Customer Outcomes
Focusing on Key Customer Outcomes Market demands flow down through our Semiconductor Customers to Us! Market Semiconductor Customers Consumer Wafer Fab & Chip Assembly Micro-Mechanics Parts and Tools for Process-Critical Applications based on… Need Supply Key Customer Outcomes Trend: Devices < 10 na
Slide 6: Focusing on Key Customer Outcomes
Focusing on Key Customer Outcomes The “Nano” world of semiconductor manufacturing Micro-Mechanics : Customers’ Prepared for “Nano” world Requirements for with Capital and Tools & Parts Engineering Resources The “NANO” world of semiconductor Smaller features with More complex design and manufacturing
Slide 7: Industry Review
Industry Review Global Monthly Chip Sales (US$ B) YOY Growth 35.0 30% • Global semiconductor industry saw robust growth during the first eight months of 2017 30.0 25% 20% • Worldwide chip sales in August 2017 increased 25.0 yoy for the thirteenth straight month to reach 15% US$35 billion for the fir
Slide 8: Industry Review
Industry Review Three-month average of worldwide billings of North American equipment manufacturers (US$ B) YOY Growth 2.5 80% Gartner Says Worldwide Semiconductor Capital 70% Spending Is Forecast to Grow 10.2% in 2017 2.0 60% • Higher growth forecast due to continued aggressive investment in memory
Slide 9: Corporate Milestones
Corporate Milestones • Record revenue and profit in FY2017 • Reported best quarterly performance in 1Q18 • Won Two Gold Awards for Best Managed Board and Best Investor Relations at the Singapore Corporate Awards 2017 • Higher SGTI score of 92 points to rank 19th out of 606 companies listed on the SG
Slide 10: Dividend Performance
Dividend Performance HIGHER DIVIDENDS OF 8 CENTS FOR FY2017 Total dividend payout since listing - 53.9 CENTS per share DIVIDEND PER SHARE (CENTS) 8.0 6.0 5.0 5.0 5.0 3.5 3.0 3.0 3.0 3.0 3.0 2.4 2.0 Special dividend 1.2 0.8 Final dividend Interim dividend DIVIDEND PAYOUT RATIO FY2003 FY2004 FY2005 FY
Slide 11: Financial Review
perfect parts and tools, on time, every time Financial Review Chow Kam Wing, CFO Micro-Mechanics AGM & EGM FY2017 11
Slide 12: FY2017 in Review
FY2017 in Review FY2017 P&L Overview (S$ million) K E Y R AT I O S & S TAT I S T I C S 57.2 REVENUE GROWTH 11.7% GROSS PROFIT GROWTH 12.8% 24.4 PBT GROWTH 17.9% 32.9 0.7 NET PROFIT GROWTH 24.2% 15.1 GROSS PROFIT MARGIN 57.4% 18.5 3.7 14.8 NET PROFIT MARGIN 25.8% EARNINGS PER SHARE 10.62 cents 0 RETU
Slide 13: Group Revenue
Group Revenue HIGHEST EVER REVENUE IN FY2017 & 1Q18 Group Revenue Global Chip Sales (S$ mil) 4-YEAR Trend (US$B) 70 REVENUE 380 CAGR : 10% 60 57.2 330 52.2 51.3 50 15.4 43.9 12.9 13.0 280 FY2017 revenue +11.7% 40 39.2 11.7 10.8 13.4 12.5 14.2 230 1Q18 revenue +32.5% 30 10.6 9.2 180 • Reflects the st
Slide 14: Group Revenue
Group Revenue DIVERSIFIED REVENUE STREAMS Sales Breakdown for FY2017 Sales Breakdown for 1Q18 Japan, 2% Japan, 2% Europe, 4% Taiwan, 9% Europe, 3% Taiwan, 7% Rest of Rest of world, 2% USA, 16% world, 2% USA, 16% Singapore, Singapore, 8% Philippines, 10% Philippines, 9% 9% Malaysia, Thailand, 2% Mala
Slide 15: Gross Profit Margin
Gross Profit Margin Gross Margin STEADY GROSS PROFIT MARGIN 60.9% 56.9% 57.4% 57.3% 55.0% 50.7% 49.1% • Higher gross profit margins attributed to higher capacity utilisation, as well as cost, productivity and cycle time improvements Gross profit margin is one of the results that matters most – It re
Slide 16: Profitability
Profitability RECORD NET PROFIT FOR FY2017 & 1Q18 Net Profit After Tax Net Profit Operating Expenses / Revenue (S$ mil) Margin 25 35.0% 1Q18 23.0% FY2017 25.1% 29.2% 30.0% FY2016 26.2% 20 25.8% FY2015 25.5% 23.0% 23.2% 25.0% FY2014 28.5% 15 14.8 17.6% 20.0% FY2013 31.4% 12.0 11.9 4.6 0% 5% 10% 15% 2
Slide 17: Cash Flow
Cash Flow CASH-FLOW GENERATIVE OPERATIONS Track record of healthy net cash (S$ mil) from operating activities (S$ mil) CAPEX 20 20 18.1 18 18 16.3 16 16 14.1 14 14 12 10.8 12 10 8.8 10 8 8 6.6 6 6 4.9 5.1 4.4 4.1 4 4 2.6 2.2 2 2 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 1Q18 FY2013 FY2014 FY2015 FY2016
Slide 18: Balance Sheet
Balance Sheet 30 Sep 2017 30 June 2017 Cash Cash and cash equivalents# S$25.4M S$23.4M Gearing Total borrowings Nil Nil Trade Receivables Trade Receivables S$13.6M S$11.0M (Outstanding > 90days) / 2.2% 0.1% (Total trade receivables) Bad debt expense Nil (1Q18) Nil (FY17) Inventory Inventory S$3.9M S
Slide 19: Key Takeaway
perfect parts and tools, on time, every time Key Takeaway Chris Borch, CEO Micro-Mechanics AGM & EGM FY2017 19
Slide 20: Just One Takeaway …
Just One Takeaway … (S$ mil) $60 40.0% 31.4% 30.0% $40 23.0% 20.0% $20 10.0% 0.0% $0 FY2013 FY2014 FY2015 FY2016 FY2017 1Q18 FY2014 FY2015 FY2016 FY2017 Sales GP Net Profit Overhead as % of Sales $270 mil $54 mil 2012 2013 2014 2015 2016 2017 Micro-Mechanics AGM & EGM FY2017 20
Slide 21: We Are Learning How To Make Better Decisions!
We Are Learning How To Make Better Decisions! It is to make decisions* and then take actions! Upper Limit Effective Nominal (Target) Lower Limit At a fundamental level, what is Ineffective everyone’s job? We are working to build a methodology that helps our people – at all levels – make and implemen
Slide 22: 24/7 Decision Making™
24/7 Decision Making™ MMUniversity® Effective Decisions and Actions: Everyone, Everywhere, Every Time Sat Sun 23 24 1 2 22 3 21 4 Fri 20 24/7 5 Mon 19 18 Decision 6 7 17 Making 8 16 9 15 10 Thu 14 13 12 11 Tue Wed Published by MMUniversity™ 2017 People Make Everything Happen! Micro-Mechanics AGM & E
Slide 23: Safe Harbour for Forward-Looking Statements
Safe Harbour for Forward-Looking Statements This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. Investors can identify some of these statements by forward-looking items such as ‘expect’, ‘believe’, ‘plan’, ‘intend’, ‘estimate’, ‘
Slide 24: Investor Relations Contact
31 Kaki Bukit Place Eunos Techpark Singapore 416209 www.micro-mechanics.com INVESTOR RELATIONS CONTACT Octant Consulting Tel (65) 6296 3583 herman@octant.com.sg / lisa@octant.com.sg
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