Malaysian Pacific Industries Bhd. · MYX:MPI
Malaysian Pacific Industries Bhd — Q4 FY2021 Earnings Presentation
62 slides from Malaysian Pacific Industries Bhd's earnings presentation, October 2021
Slide 1: Malaysian Pacific Industries Berhad Investor Presentation Q4 FY2021
1 M A L A Y S I A N P A C I F I C I N D U S T R I E S B E R H A D I N V E S T O R P R E S E N T A T I O N Q 4 F Y 2 0 2 1 ( A p r - J u n ’ 2 1 ) INVESTOR RELATIONS CONTACT Rohit Kumar +605 5262333 extn 8497 rohitkumar@carsem.com Malaysian Pacific Industries Confidential
Slide 2: Disclaimer
2 DISCLAIMER Malaysian Pacific Industries (MPI) provides access to this presentation for general reference only. This presentation is strictly confidential solely intended for communicating financials and may not be reproduced or circulated without MPI’s prior consent. If you are the recipient of th
Slide 3: Table of Content
1 3 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 4: Business overview
4 Business overview MPI – A MEMBER OF THE HONG LEONG GROUP Hong Leong Group and MPI • The Hong Leong Group was established over 50 years ago and is one of The Hong Leong Group the largest conglomerates in Asia One of the Largest Conglomerates in Malaysia • Carsem and Dynacraft are operating companie
Slide 5: Investment highlights
5 Investment highlights STRONG FUNDAMENTALS DELIVERING INDUSTRY LEADING RESULTS Revenue (US$ million) PAT (RM million) Net cash increase by 481 326 9% FY21 FY21 FY21 vs FY20 Revenue growth PAT growth Equity-Debt Ratio 30% 82% 100:0 FY21 vs FY20 FY21 vs FY20 FY21 • Focused growth & transformation str
Slide 6: Quarterly Snapshot
6 Quarterly Snapshot KEY FIGURES – Q4 FY21 Revenue (US$ million) PAT growth 130 61% vs Q4 FY20 Revenue growth EPS 38% 37.9c vs Q4 FY20 Net Cash (RM million) CAPEX growth 902 >100% vs Q4 FY20 Malaysian Pacific Industries Confidential
Slide 7: Business outlook
7 Business outlook MPI will continue to benefit from • Long term technology drivers – in particular, RF (5G) in Asia, and power (SiC, GaN) & automotive (electrification, sensors, safety) across US, EU • Localization driven demand trends in China • Positioning of reliable supply center for US & EU, b
Slide 8: Table of Content
1 8 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 9: Journey & Capabilities
9 Milestones Carsem One of the most JOURNEY & CAPABILITIES trusted OSAT Power Management 5G 5G TEST partners globally - CuClip Technology for Cloud Server Farms RF – Smartphone Thin & Multi-Die MLP – Small & Thin Sensors TVS SiC tech X3 for Mobile Market Sensors Sensors for Automotive For RF & power
Slide 10: Board of Directors
10 Board of Directors YBHG DATUK KWEK LENG SAN MANUEL ZARAUZA MS LIM TAU KIEN CHAIRMAN; Non-Executive/ GROUP MANAGING DIRECTOR/ Non-Executive Director/ Independent Non-Independent Non-Independent • Appointed to BoD of MPI in Jul 1990, and as GMD of • Over 25 years of experience across various • Has
Slide 11: Management team
11 Management team Many years of consolidated experience in the industry MANUEL ZARAUZA, GROUP MANAGING DIRECTOR, MPI Over 25 years of manufacturing sector experience; Previously with Siemens, Osram Opto Semiconductors, and Seoul Semiconductor ERIC CHEAH, CFO, MPI INDERJEET SINGH, GM, CARSEM S-SITE,
Slide 12: Table of Content
1 12 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 13: Supply chain & business model
13 Supply chain & business model CARSEM’S PACKAGING & TESTING SERVICES FORM A VITAL PART OF SEMICONDUCTOR VALUE CHAIN IC backend Boxing/ PCB manu- SMT SMT End Mask IC frontend production module/ System design IC Design facturing Assembly Assembly customer production production (Assembly & system (ba
Slide 14: Wide portfolio
14 Wide portfolio COMPREHENSIVE TURNKEY PACKAGING & TEST SERVICES ACROSS KEY APPLICATIONS Automotive System in Quad Flat Package MLP Small Outline IC Package (SiP) (QFP) Industrial Transient Voltage Power Management Consumer & MEMS & Sensors Copper Clip Flip Chip Suppressor (TVS) (SiC, GaN, GaN on C
Slide 15: Geographic footprint
15 Geographic footprint BROAD GEOGRAPHIC PRESENCE, SERVING A GLOBAL CUSTOMER BASE CARSEM NORTH AMERICA CARSEM EUROPE CARSEM S. KOREA CARSEM SUZHOU, CHINA CARSEM JAPAN CARSEM TAIWAN CARSEM IPOH, MALAYSIA DYNACRAFT INDUSTRIES, S-SITE, M-SITE PENANG, MALAYSIA LEGEND Manufacturing plants & Sales offices
Slide 16: Production facilities
16 Production facilities CARSEM MANUFACTURING SITES & BUSINESS UNITS Carsem (M-Site, Ipoh) • Floor Space: 436K sq.ft. (40,500 sq. m.) SOIC MICRO MSU • Workforce: 2,135 employees Automotive & Consumer • GM: Sharon Ko Carsem (S-Site, Ipoh) • Floor Space: 640K sq.ft. (60,000 sq. m.) PMG MLP TEST • Work
Slide 17: Production facilities: Suzhou facility augmentation
17 Production facilities AUGMENTING SUZHOU FACILITY TO CAPTURE ADDITIONAL BUSINESS FROM THE ASIAN MARKET 1st Phase 2nd Phase Completed on 30th Oct 2020 To be completed by 30th Aug 2021 • Total floor space in 2nd Phase Level 2: • Total floor space in 1st Phase Level 2: 4,300 4,400 Sq. Meters Sq. Mete
Slide 18: Production facilities: floor space expansion
18 Production facilities FLOOR SPACE EXPANSION FOR PIPELINE, COMMITMENTS & BUSINESS GROWTH CHINA MALAYSIA • Adding 70K sq. ft. of production floor space at Ipoh (M • Scouting for a new site in China to setup another factory. site) to cater to increasing demands Land to be finalized by Dec 2021 • Bui
Slide 19: Table of Content
1 19 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 20: Our operational context
20 Our operational context INTERNAL & EXTERNAL FACTORS GOVERNING & INFLUENCING OUR BUSINESS Malaysian Pacific Industries Confidential
Slide 21: Sustainability at MPI
21 Sustainability at MPI OUR APPROACH IS RESPONSIBLE & RESPONSIVE, DRIVEN BY 3 THEMES Better Economy Better Environment Better Society Shareholders Energy & emissions GHG Employees Suppliers Waste Business ethics Customers Water Local communities • We respect the local environment • We prioritise th
Slide 22: UN Sustainable Development Goals
22 UN Sustainable Development Goals 6 PRIORITY SDGs MOST ALIGNED WITH OUR BUSINESS Innovation, technology & related MPI has a role to play in energy infrastructure development is a efficiency, emissions control and key focus area for MPI waste management As a responsible MPI makes a significant busi
Slide 23: Sustainability performance
23 Sustainability performance FY21 PERFORMANCE SNAPSHOT Energy intensity in GHG emission Water consumption FY21 was intensity in FY21 index in FY21 was substantially below was well below much lower than FY15 baseline, as FY15 baseline, as FY15 baseline, as targeted targeted targeted 30% lower 29% lo
Slide 24: Workforce diversity & talent retention
24 Workforce diversity & talent retention WE CONTINUE TO PROMOTE INCLUSIVITY, NON-DISCRIMINATION AND EMPLOYEE ENGAGEMENT EMPLOYEES FEMALE EMPLOYEES total global workforce % of female employees in workforce 10,746 45% employees at female employees June 30, 2021 “Women represent 10-25% of the semicond
Slide 25: Training & education
25 Training & education TRAINING & UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES TRAINING HOURS TRAINING TYPES CONDUCTED formal training hours for employees number of trainings by types 80,372 68,356 2020 2021 Jan-Jun TRAINING HOURS PER EMPLOYEE 253 106 average formal training hours/employee
Slide 26: Anti-bribery & anti-corruption
26 Anti-bribery & anti-corruption LEADING ETHICALLY & TRANSPARENTLY Received SIRIM certification for implementing Anti- Bribery Management Systems complying with ISO 37001:2016. Malaysian Pacific Industries Confidential
Slide 27: Energy & emissions
27 Energy & emissions MANAGING OUR CARBON FOOTPRINT AND ENERGY CONSUMPTION 30% reduction in energy intensity in FY21, below FY15 GHG 29% drop in C02 emissions/ kk unit in FY21, below FY15 baseline baseline CO2, metric ton/ kk unit CO2, metric ton Increased production activity during FY21 led to high
Slide 28: Water management
28 Water management MANAGING OUR WATER CONSUMPTION & CONSERVATION 29% reduction in water consumption index in FY21, below FY15 baseline, despite higher production demand Malaysian Pacific Industries Confidential
Slide 29: Health & safety: Carsem Suzhou vaccination
29 Health & safety COVID-19 VACCINATION FOR OUR EMPLOYEES AT CARSEM SUZHOU EMPLOYEE • Active fulfillment of our social responsibility – we organized vaccination & guidance for employees CARE • Aim is to ensure safety, and good health & wellbeing of our employees BUSINESS CONTINUITY PLAN • >2,000 of
Slide 30: Health & safety: Carsem Ipoh vaccination
30 Health & safety COVID-19 VACCINATION FOR OUR EMPLOYEES AT CARSEM IPOH EMPLOYEE • Active fulfillment of our social responsibility – we organized vaccination & guidance for employees CARE • Aim is to ensure safety, and good health & wellbeing of our employees BUSINESS CONTINUITY PLAN • >5,000 of ou
Slide 31: Health & safety: living environment
31 Health & safety ENSURING SAFE & HYGIENIC LIVING ENVIRONMENT FOR EMPLOYEES Safeguarding employees’ safety Strict compliance with Government SOPs Certificate of Hostel Satisfactory outcome of MITI’s periodic enforcement check Accommodation from Department of Labor Employee dormitory audit by Labor
Slide 32: Table of Content
1 32 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 33: Macroeconomic Landscape
33 Macroeconomic Landscape MPI EXCELS IN A CHALLENGING MACRO ENVIRONMENT Covid, geopolitical uncertainties, raw materials’ price rise, equipment delivery delays, Forex fluctuations, travel restrictions! Malaysian Pacific Industries Confidential
Slide 34: Industry Dynamics
34 Industry Dynamics SEMICONDUCTOR INDUSTRY TAILWINDS TO CONTINUE TO DRIVE STRONG TOPLINE GROWTH MPI REVENUE (US$ million) Semiconductor growth is driven by favorable trends… ✓ Adoption of safe & green technology, and hesitation to use public transport are driving the automotive segment growth ✓ Q4
Slide 35: Growth Strategy
35 Growth Strategy OUR LONG TERM VISION IS TO BE THE LEADING OSAT FOR AUTOMOTIVE, DRIVEN BY 4 STRATEGY TENETS Sales Technology • Strategic sales across application & geography • Investing in 5G testing, SiC, MEMS sensors segments • Advanced packaging – inorganic options for • Sharp sales pipeline ma
Slide 36: Sales – Revenue Composition
36 Sales – Revenue Composition GROWTH ACROSS APPLICATIONS, WITH AUTO & INDUSTRIAL SEGMENTS GAINING SHARE AUTOMOTIVE CONSUMER & COMMUNICATIONS • 5G and IoT are unlocking multitude of use • Automotive remains strategic focus cases – smart cities, healthcare, etc. • Long term growth is driven by electr
Slide 37: Sales – Customer Relations
37 Sales – Customer Relations CONTINUOUS INVESTMENT IN CUSTOMER RELATIONS; POTENTIAL FOR FURTHER EXPANSION IN US & EU Automotive Industrial Consumer NORTH AMERICA ASIA Driving applications Driving applications EUROPE S. KOREA Driving applications SUZHOU, CHINA JAPAN CARSEM TAIWAN IPOH, MALAYSIA PENA
Slide 38: Sales – Pipeline
38 Sales – Pipeline DESPITE EXTERNAL CHALLENGES, CARSEM’s PIPELINE IS GROWING STEADILY Built customer confidence and reliability by Competitive pricing strategy to increase market delivering within timelines despite Covid-19 share challenges NEW PROJECT INTRODUCTIONS (#) Advanced R&D Infrastructure
Slide 39: Sales – Competitive advantages
39 Sales – Competitive advantages UNREPLICABLE NO DEBT, SUBSTANTIAL QUALITY STANDARDS & CASH ADVANCED R&D INFRASTRUCTURE OFFERINGS IN PROFITABLE COMPANY GROWTH AREAS INVESTMENT IN 49 YEARS IN SERVICE AUTOMATION Carsem’s competitive advantages Malaysian Pacific Industries Confidential
Slide 40: Technology – Automotive Segment
40 Technology – Automotive Segment INNOVATING IN LINE WITH STRATEGY TO BE GLOBALLY PREFERRED OSAT PARTNER FOR AUTOMOTIVE Major trends impacting semiconductor demand (Mobility disruptions) Electrification Autonomy Connectivity Novel battery technologies, growth of electrical Surge in autonomous drivi
Slide 41: Technology – Industrial Segment
41 Technology – Industrial Segment EXPANDING PORTFOLIO ALIGNED WITH TRENDS IN ADVANCED PACKAGING & TESTING FOR POWER Major trends impacting semiconductor demand Industry 4.0 Big Data Higher performing devices with greater functionality driving models that enable More servers with high power & high e
Slide 42: Technology – Consumer/Communications Segment
42 Technology – Consumer/ Communications Segment TAPPING INTO THE 5G REVOLUTION THROUGH ROBUST CUSTOM OFFERINGS Major trends impacting semiconductor demand 5G IoT High data rates, massive connectivity and ultra-low latency, catalyzing Need for combining functionalities – security, connectivity & mic
Slide 43: Technology – Immediate Focus: SiC
43 Technology–Immediate Focus SiC - UNLOCKING RF & POWER APPLICATIONS ✓ New high thermal conductivity and high operating temperature materials (pressure & pressure-less Ag Benefits of SiC over sintered paste, Cu nano paste) CARSEM previous gen materials ✓Wider bandgap, – via a dedicated materials IN
Slide 44: Technology – Future Focus
44 Technology–Future Focus BUILDING/ ACQUIRING CAPABILITIES FOR TECHNOLOGY & VALUE CHAIN UPGRADE In-house NiPdAu Post MODULE/ SiP 3D Printing Design House Mold Plating • Development focus on • Evaluating 3D printing • Looking to acquire a • Development focus on Front End Module/ SIP, technology oppo
Slide 45: Technology – Carsem Technology Center
45 Technology – Carsem Technology Center DEDICATED TECHNOLOGY CENTER TO DRIVE INNOVATION & TECHNOLOGY DEVELOPMENT CARSEM TECHNOLOGY CENTER (CTC) – 4M APPROACH TO R&D MATERIAL METHODOLOGY • Materials lab, • Process development • Design & Simulation • Total 75 active patents MACHINE MAN (HUMAN CAPITAL
Slide 46: Quality & Productivity Focus
46 Quality & Productivity Focus INVESTING IN AUTOMATION & INDUSTRY4.0 TO ACHIEVE ZERO DEFECTS & HIGH PRODUCTIVITY GOALS End Game – Smart factory MPI CAPEX (RM million) Impact Examples of Automation initiatives Auto track in and out, and Centralized 99% Fully automated line with Remote Control (VNC)
Slide 47: Quality & Productivity Focus: certifications
47 Quality & Productivity Focus CERTIFIED ON INDUSTRY’S LEADING PERFORMANCE PARAMETERS ESD Control ISO 14001:2015 Applicable to Design, Assembly, Testing Environmental Management System & Finishing of semiconductor component implemented in compliance IATF 16949:2016 Sony Green Partner Program Design
Slide 48: People – Caring for our Employees
48 People – Caring for our Employees CORONA VIRUS PRECAUTIONS AT OUR FACILITIES IN LINE WITH GOVERNMENT GUIDELINES Temperature check, hand sanitizer & face mask provided at entry Disinfected common area 3X/day Disinfecting buses 4 times a day Disinfecting production area 30 mins Social distancing of
Slide 49: Awards and Recognitions
49 AWARDS AND RECOGNITIONS QUALITY & PEOPLE 2020 Best Supplier (4 years in a row) 2020 Advanced Group for Safety Training Amazing Suzhou Industrial Park Employee Training Base Excellent Enterprise award 2021 Most Exemplary Employer for COVID-19 Response Suzhou Industrial Park Suzhou Industrial Park
Slide 50: Table of Content
1 50 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 51: Financial highlights: FY21
51 Financial highlights FY21 – ENTIRE YEAR PERFORMANCE SNAPSHOT REVENUE Again, a new record in FY21 after surpassing the earlier all time high revenue of FY20 by 30% PAT FY21 saw 82% hike in PAT over FY20 proving the stringent cost prudence measures effective EPS 137 Sen earning per share for FY21 v
Slide 52: Financial highlights: Q4 FY21 snapshot
52 Financial highlights Q4 FY21 SNAPSHOT REVENUE Q4 FY21 against corresponding quarter last year higher by 38% and 33% in USD & RM respectively. PAT Q4 FY21 PAT 61% higher against Q4 FY20, in spite of additional expenditure due to the ongoing pandemic EPS Q4 FY21 EPS 47% higher at 37.85c vs. 25.73c
Slide 53: Key financial data
53 Key financial data MPI GROUP RESULTS AT A GLANCE Q4 FY21 Q3 FY21 Q4 FY20 Q4 vs Q3 Q4 vs Q4 YTD FY21 YTD FY20 YoY RM mil RM mil RM mil % % RM mil RM mil % Revenue 537.3 526.6 405.5 2% 33% 1,988.5 1,564.6 27% PAT 89.5 89.1 55.6 0.4% 61% 325.5 178.8 82% PATAMI 75.1 74.4 49.0 1% 53% 271.8 153.0 78% E
Slide 54: Key financial data: record revenue and PAT
54 Key financial data MPI SET A NEW RECORD WITH ALL TIME HIGH REVENUE & PAT IN FY21 MPI SEQUENTIAL & CORRESPONDING QUARTER GROWTH (Revenue in US$ million, PAT in RM million) • Outstanding growth driven by successful strategic execution. MPI grew revenue by 30% in FY21 over FY20 • In spite of all the
Slide 55: Cash
55 Cash MPI IS INCHING TOWARDS RM1 BILLION CASH DESPITE MARKET UNCERTANITIES & CONTINOUS INVESTMENTS MPI NET CASH (RM million) grew by 9% YoY with 99% higher CAPEX during FY21 vs. FY20 284 387 444 547 573 644 677 689 713 761 798 809 826 943 918 927 902 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Sep-18 Dec-1
Slide 56: Investments
56 Investments CONTINUING STRATEGIC INVESTMENTS FOCUSING ON SENSORS, 5G TESTING & SILICON CARBIDE • Installing New Machines for Capacity Expansion SZ • Hire more people across the globe to support business CARSEM SITES 5G TESTING operations & sales • Invest in Research & Development to deliver lates
Slide 57: Investments: EBITDA vs Capex
57 Investments CONSISTENT TECHNOLOGY INVESTMENTS TO REALIZE BUSINESS ASPIRATIONS MPI EBITDA VS CAPEX (RM MIL) SOME KEY INVESTMENT AREAS DURING Q3 FY21 Flipchip on RF IC MLP on power management IC, CuClip Power Management for servers Power Management: Battery charge and timing MEMS, Thermal MPI CAPEX
Slide 58: Statement of Profit or Loss
58 Statement of Profit or Loss Q4FY21 Q4FY20 Changes RM '000 RM '000 % Revenue 537,341 405,451 33% Cost of sales (438,544) (328,530) 33% Gross profit 98,797 76,921 28% Operating expenses (19,616) (18,166) 8% Other operating income 17,664 3,352 427% Profit from operation 96,845 62,107 56% Interest in
Slide 59: Statement of Financial Position
59 Statement of Financial Position 30/06/2021 30/06/2020 RM'000 RM'000 Non-current assets Property, plant and equipment 1,051,200 716,967 Right-of-use assets 38,844 42,921 Investment properties 28,790 29,709 Investments 46 46 1,118,880 789,643 Current Assets Inventories 170,226 117,118 Trade and oth
Slide 60: Statement of Financial Position
60 Statement of Financial Position 30/06/2021 30/06/2020 RM'000 RM'000 Equity Share Capital 352,373 352,373 Reserves 1,509,133 1,192,350 Treasury shares (163,816) (163,816) 1,697,690 1,380,907 Non-controlling interests 287,045 238,233 1,984,735 1,619,140 Non-current liabilities Borrowings (unsecured
Slide 61: Summary
61 Summary MPI POSTED A RECORD FY21 MPI creates history in FY21 by surpassing the previous all time high of FY20 in Revenue & PAT by 30% & 82% respectively Despite the ongoing tough times, MPI declared dividend of 30 Sen per share for FY21 Carsem’s sales pipeline is strong & intact but it has shifte
Slide 62: Thank You
62 Thank You Malaysian Pacific Industries Confidential
Malaysian Pacific Industries Berhad — Q4 FY2021 Earnings Presentation on 6ix