Integrated Micro-Electronics, Inc. · PSE:IMI
Integrated Micro-Electronics — Q2 2022 Earnings Presentation
19 slides from Integrated Micro-Electronics's earnings presentation, Aug 3, 2022
Slide 1: IMI Analyst Briefing 2022 Q2
IMI Analyst Briefing 2022 Q2 August 3, 2022 Online
Slide 2: Global Economic Outlook
Global Economic Outlook
Slide 3: Global Economy
GLOBAL ECONOMY AND OPERATING ENVIRONMENT Global Economy Higher-than-expected inflation triggering tighter financial conditions; a worse-than-anticipated slowdown in China and negative spillovers from the war in Ukraine have further lowered expectations in 2022 vs last quarter 6.1 3.2 2.9 Region 2021
Slide 4: Headline CPI Inflation
Headline CPI Inflation Consumer prices have consistently risen faster than widely expected, The blue line shows CPI inflation may have peaked in between Q2 and Q3 in 2022 Central banks in several emerging market and developing economies have raised interest rates more aggressively The baseline proje
Slide 5: Purchasing Managers Index – Global Electronics, June'22
GLOBAL ECONOMY AND OPERATING ENVIRONMENT Purchasing Managers Index – Global Electronics, June’22 • PMI falls to 20-month low in June amid slowing demand • Electronics PMI fell to 53.7 in June, down from 54.2 in May with orders at the slowest pace since Sept 2020 53.7 • Availability of some parts hav
Slide 6: Delay in Supply Chain Recovery
Delay in Supply Chain Recovery ➢ Delta variant spike in Asian manufacturing regions and geopolitical tensions in Europe delayed the recovery of the market ➢ Automotive segment was particularly behind due to slow acceptance of price increase and alternative component approval. Now starting to seeing
Slide 7: The Future of Mobility is Electric
The Future of Mobility is Electric By 2025, sales of internal combustion passenger vehicles will be 19% below their 2017 peak. • Electric vehicle sales could reach 33% globally by 2028 and 54% by 2035 • EVs accounted for less than 8% of global sales last year, and just under 10% in the first quarter
Slide 8: Market Update on Focus IMI Markets
GLOBAL ECONOMY AND OPERATING ENVIRONMENT Market Update on Focus IMI Markets ⚫ Sales of battery-electric vehicles ⚫ Sensors in the IoT devices to ⚫ Global A&D market is expected (BEVs) to grow by more than grow at a CAGR of 30.8% from to grow a CAGR of 8.5% up to 25% annually through 2030 2021-2028 2
Slide 9: Logistic and Freight Cost
GLOBAL SUPPLY CHAIN UPDATE Logistic and Freight Cost SCFI CFI ⚫ Freight market rates are expected to stay high despite 14 weeks of dropping in Q1’22. ⚫ Increase again during the last 4 weeks due to reopening of Shanghai port after lock down. CONFIDENTIAL AND PROPRIETARY. Any use or dissemination of
Slide 10: Financials
Financials
Slide 11: 2022 Q2 Segment Updates
2022 Q2 Segment Updates '21 Q2 '22 Q2 Y/Y% '21 6M '22 6M Y/Y% ➢ Automotive: Auto 161.0 180.6 12% 332.9 364.8 10% • Growth impacted by component shortage and devaluation of EUR against USD as significant amount of Ind 98.4 126.4 28% 195.4 228.5 17% mobility contracts are based in Europe Aero/Def 12.2
Slide 12: 2022 Q2 Region Updates
2022 Q2 Region Updates ➢ PH: • Revenue growth driven by recovery of backlogs, and '21 Q2 '22 Q2 Y/Y% '21 6M '22 6M Y/Y% strong demand of industrial security devices PH 74.1 95.1 28% 147.7 163.6 11% • Backlog levels remain at $36M due to limited availability of components CN 64.7 81.2 26% 131.8 153.2
Slide 13: 2022 Group Program Wins
2022 Group Program Wins Win Location - 2022 2022 6M New Program Wins 10% 51* 19% 32% 41 29 15* 254 8 184 76 47 131 24% 14% 2021 2022 Philippines China E. Europe MX UK Mobility Industrial Others STI* *IMI wins Annual Revenue Potential; STI wins total project size Win Location - 2021 Notable Wins in 2
Slide 14: 2022 Q2 Performance
2022 Q2 Performance Operating Income Revenue and Gross Profit Margin 380 11. 0% 7.6% 370 6.6% 6.9% 6.5% 9.0 % - 360 350 5.6% 7.0 % (2 .0) '21Q2 '21Q3 '21Q4 '22Q1 '22Q2 (4 .0) 340 -0.7% 5.0 % 330 (6 .0) -1.0% -2.5% -1.3% (8.2) -3.0% (2.4) (4.6) 3.0 % (8 .0) (3.3) 320 (9.7) (1 0.0) 310 1.0 % (1 2.0) 3
Slide 15: 2022 Q2 Performance
2022 Q2 Performance Non Wholly Owned Subsidiaries Wholly Owned Subsidiaries 332 82 282 72 232 62 182 Revenue 52 42 132 32 82 22 32 247 249 253 258 290 12 72 77 74 76 67 2 (1 8) '21Q2 '21Q3 '21Q4 '22Q1 '22Q2 '21Q2 '21Q3 '21Q4 '22Q1 '22Q2 -8 -18 10.0 - '21Q2 '21Q3 '21Q4 '22Q1 '22Q2 5.0 % 1.6% 1.3% 5.0
Slide 16: Capital Structure
Capital Structure Long Term Long Term Debt Debt 21% 21% Common Common Dec Equity Jun Equity 56% 53% Short Term Debt 2021 Short Term 2022 Debt 23% 26% Dec Jun Dec Jun (US$ Millions) Key Financial Ratios 2021 2022 2021 2022 Short-Term Debt 165.8 182.1 Current ratio 1.59 1.52 Long-Term Debt 151.5 151.1
Slide 17: Disciplined Capital Investments
Disciplined Capital Investments 65.0 4.7 15.0 4.6 38.8 $10.8M 9.7 7.0 31.0 2022 6M 0.7 5.0 12.5 8.3 18.7 12.2 2.2 4.5 3.8 2.1 3.8 3.1 18.5 4.7 2.3 12.8 2.8 Buildings………....…..… .........8% 3.3 8.8 Machinery………..….….........39% Furn & Fix………..............…..20% 2018 2019 2020 2021 Constr. in progress
Slide 18: Key Takeaways
Key Takeaways • Component shortage continues to affect the entire industry but starting to show signs of improvement that may be felt towards the end of 2022/beginning of 2023 • Rising inflation driving expenses and affecting margins. Strong competition for skilled labor also driving employee attrit
Slide 19: connect with us
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