Nanofilm Technologies International Ltd. · SGX:MZH
Nanofilm Technologies International — FY2021 Earnings Presentation
22 slides from Nanofilm Technologies International's earnings presentation, Feb 23, 2022
Slide 1: FY2021 Results Announcement
NANOFILM TECHNOLOGIES INTERNATIONAL FY2021 Results Announcement 23 February 2022
Slide 2: Important Notice
Important Notice This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Nanofilm Technologies International Limited (the “Company”) in Singapore or any other jurisdict
Slide 3: Management Panel
Management Panel GARY HO KAY LIM GIAN YI-HSEN Sean Tan Group Chief Commercial Group CEO Group CFO & Strategy Officer Group CHRO Presenters 2 | CONFIDENTIAL
Slide 4: FY2021 Overview
1 | FY2021 OVERVIEW
Slide 5: FY2021 Performance at a Glance
FY2021 Performance at a Glance FY2021 2H2021 FY2021 2H2021 $ REVENUE 247m S$150m 63m S$44m PAT S$ S$ +13% YoY +7% YoY +8% YoY +12% YoY % $ $ CASH FLOW FROM OPS PPE(1) R&D AND ENGINEERING SPEND TOTAL DIVIDEND (3) S$ 73m S$ 290m S$ 17m 7.1% (2) 2₵ +24% YoY +34% YoY % of revenue per ordinary share +66%
Slide 6: FY2021 Financial Highlights
2 | FY2021 FINANCIAL HIGHLIGHTS
Slide 7: FY2021: Our Underlying Performance is Much Stronger
FY2021: Our Underlying Performance is Much Stronger • Top line increased 13% YoY despite a challenging operating (in S$m) 247 environment 218 250 • Revenue contribution from other customers (1) increased from 150 REVENUE 200 150 141 (+7% YoY) 32% to 39% YoY (+60% YoY) S$m 2020 2021 YoY 100 • Revenue
Slide 8: Capacity Prepared for Growth – Deja Vu
Capacity Prepared for Growth – Deja Vu Scale & Operational Excellence Leading to Stronger Margins Shanghai Plant 1 (1) Shanghai Plant 2 (2) expenses to get it expenses to get it operational operational 70% 60.7% 55.9% 54.9% 60.0% 51.0% 52.8% 60% 53.9% 54.3% 46.1% 49.1% 50.0% 50% Economies of scale b
Slide 9: Investing in Technology & Innovation: Through Higher R&D Spend
Investing in Technology & Innovation: Through Higher R&D Spend R&D and Engineering expenses (in S$m) 7.1% 30 25 5.9% 17 20 3 15 13 2 10 15 5 11 - 2020 2021 (1) R&D & Engineering D&A Total R&D & Eng as % of revenue (%) R&D and Engineering expenses, including depreciation and amortisation, increased 3
Slide 10: Cash Flow: Strong Cash Flow Generation Coupled with Effective Cash Management
Cash Flow: Strong Cash Flow Generation Coupled with Effective Cash Management Cash flow + strong balance sheet Solid operating cash flow to support business requirements & reward shareholders (in S$m) 1 Ongoing Operational Requirements 2 Strategic 73 Initiatives 59 3 TOTAL DIVIDEND (1) 2 % $ ₵ per o
Slide 11: Business Outlook
3 | BUSINESS OUTLOOK
Slide 12: Connecting Deep-Tech to the Commercial World
Connecting Deep-Tech to the Commercial World Advanced Materials BU (“AMBU”) Enabling our BUs to branch out to the Commercial EM Nanofabrication 3C Industrial World BU Equipment BU (“NFBU”) (“IEBU”) Sydrogen Auto Lens Sensors Catalyst BPP Core centralised Strategy & Biz & Prod Capital & functions & S
Slide 13: Business Outlook
Business Outlook • Expanding our horizons: strengthen BU-centric structure and operational excellence, GROUP intensify BD and sales infrastructure, increase sales coverage in various geographies • Focus on operational excellence to mitigate inflationary pressures; embracing Industry 4.0 with investm
Slide 14: Business Outlook (cont’d)
Business Outlook (cont’d) • Easing of supply chain disruptions AMBU • Growing adoption trend of our advanced materials solutions across the verticals, which will continue to provide a solid business pipeline • With new projects ramping up, optimistically confident of its business performance NFBU •
Slide 15: Thank You
® NanoFilm ADVANCING TECHNOLOGY SOLUTIONS THANK YOU ore —- a a nih
Slide 16: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 17: Investing in Technology, Ops Excellence & Capacity…
Investing in Technology, Ops Excellence & Capacity… Operating expenses breakdown 2020 2021 S$m % of revenue S$m % of revenue R&D & Engineering (1) 16.5 7.5% 21.9 8.9% Selling & Distribution (2) 5.2 2.4% 6.6 2.7% Administrative (3) 29.6 13.6% 32.7 13.2% (in S$m) 80.0 23.5% 24.8% 61 70.0 51 60.0 50.0
Slide 18: …Paving the Way for Long-Term Growth
…Paving the Way for Long-Term Growth Breakdown of capex spend 250 Net cash balance as at 31 December 2021 (in S$m) (in S$m) 200 40 28 140 150 4 183 100 155 50 80 82 0 Total cash & liquid Bank loans Net cash assets (3) 7 33 Laying a strong foundation to position Nanofilm for future growth 56 42 Incur
Slide 19: AMBU: Achieved Growth Despite Persistent Supply Chain Disruptions
AMBU: Achieved Growth Despite Persistent Supply Chain Disruptions Financial performance (in S$m) YoY growth 6% 200 182 194 180 160 118 118 140 EBITDA Margins (-0% YoY) EBITDA Margins (+66% YoY) 87 120 100 FY: 48% 80 FY: 41% 58 52 80 60 (+69% YoY) 2H: 49% 76 (-10% YoY) 2H: 44% 64 (+18% YoY) 29 28 40
Slide 20: NFBU: Impacted Due to Early End-of-Life Project
NFBU: Impacted Due to Early End-of-Life Project Financial performance (in S$m) YoY drop 31% 15 13 11 EBITDA Margins 8 EBITDA Margins 11 FY: 29% FY: 2% 9 8 6 7 (+168% YoY) 5 3 2H: 38% (-24% YoY) 0 2H: 18% 3 3 2 1 3 1 (+10% YoY) (-362% YoY) 1H: 7% (-48% YoY) (-64% YoY) 1H: -54% (1) 0 (1) (3) (+210% Yo
Slide 21: IEBU: Higher Demand by Sustained Recovery in Customers’ Capex Cycle
IEBU: Higher Demand by Sustained Recovery in Customers’ Capex Cycle Financial performance (in S$m) YoY growth 50 45 81% 45 40 26 35 25 EBITDA Margins EBITDA Margins 30 (+82% YoY) 15 25 6 FY: 26% FY: 34% 14 9 3 20 15 (+5% YoY) (-22% YoY) 2H: 20% (+228% YoY) 2H: 36% 19 11 4 6 10 5 1H: 34% (+81% YoY) (
Slide 22: Thank You
Thank You
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