Malaysian Pacific Industries Bhd. · MYX:MPI
Malaysian Pacific Industries Bhd — Q4 FY2024 Earnings Presentation
55 slides from Malaysian Pacific Industries Bhd's earnings presentation, August 2024
Slide 1: Malaysian Pacific Industries Berhad Investor Presentation Q4 FY2024
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 4 ( A p r - J u n ‘ 2 4 ) INVESTOR RELATIONS CONTACT Rohit Kumar +605 5262333 extn 8497 rohitkumar@carsem.com Malaysian Pacific Industries Berhad
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: MPI, a member of the Hong Leong Group
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 is an operating company within Malay
Slide 5: Financial performance snapshot
5 Financial performance snapshot STRONG FUNDAMENTALS CREATE BUSINESS RESILIENCE IN TOUGH TIMES Revenue (RM million) PAT growth (%) Debt 2,095 >100% ZERO FY24 FY24 vs. FY23 as of FY24 CAPEX (RM million) EBITDA (%) Net cash (RM million) 226 28% 1,001 FY24 FY24 as of FY24 Note: FY24 = July 2023 – June
Slide 6: Table of Content
1 6 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 7: Journey & capabilities
7 Our journey Carsem One of the most JOURNEY & CAPABILITIES trusted OSAT Power Management 5G 5G TEST partners globally - CuClip Technology for Cloud Server Farms SiC, GaN RF – Smartphone For auto, AI – Thin & Multi-Die mid/ high power MLP – Small & Thin Sensors TVS SiC tech X3 for Mobile Market Sens
Slide 8: Management team
8 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 PO LAU ERIC CHEAH INDERJEET SINGH Jay RAYMOND SHI CK LEE
Slide 9: Table of Content
1 9 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 10: Supply chain & business model
10 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 11: Wide portfolio
11 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 12: Geographic footprint
12 Geographic footprint BROAD GEOGRAPHIC PRESENCE, SERVING A GLOBAL CUSTOMER BASE CARSEM NORTH AMERICA CARSEM S. KOREA CARSEM SUZHOU, CHINA CARSEM JAPAN CARSEM TAIWAN CARSEM IPOH, MALAYSIA S-SITE, M-SITE LEGEND Manufacturing plants & Sales offices Sales offices Malaysian Pacific Industries Berhad
Slide 13: Production facilities
13 Production facilities CARSEM MANUFACTURING SITES & BUSINESS UNITS Carsem (M-Site, Ipoh) • Floor Space: 436K sq. ft. (40,500 sq. m.) SOIC MICRO MSU • Workforce: 2,246 employees Automotive & Consumer Carsem (S-Site, Ipoh) • Floor Space: 640K sq. ft. (60,000 sq. m.) PMG MLP TEST • Workforce: 2,916 e
Slide 14: Table of Content
1 14 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 15: Sustainability performance
15 Sustainability performance WE ARE A RELIABLE AND RECOGNIZED BRAND FOR SUSTAINABLE BUSINESS PRACTICES for THREE successive years TWICE in a row Diverse and inclusive organisation 6,605 employees as of June 2024 Gender diversity 51% 49% EQUITIES |TECHNOLOGY (GOLD) Malaysian Pacific Industries Bhd (
Slide 16: Sustainability at MPI
16 Sustainability at MPI OUR APPROACH IS RESPONSIBLE & RESPONSIVE, DRIVEN BY 3 THEMES Malaysian Pacific Industries Berhad
Slide 17: UN Sustainable Development Goals
17 UN Sustainable Development Goals 6 PRIORITY SDGs MOST ALIGNED WITH OUR BUSINESS Safeguarding employee health & safety is a MPI makes a significant contribution top priority for MPI towards employment and economic growth MPI actively focuses on innovation, As a global employer, MPI strives to ensu
Slide 18: Environment
18 Environment Malaysian Pacific Industries Berhad
Slide 19: Training & education
19 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES Some of our training programmes, such as team building, SLDN Apprenticeship Program, mandatory training for engineers, audit and compliance training, competency training and ERT training Malaysian Pacific Indus
Slide 20: Training & education
20 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES Training for enhancing engineering capabilities Training for Project Management Malaysian Pacific Industries Berhad
Slide 21: Employee engagement
21 Employee engagement Celebrating festivals Team building Malaysian Pacific Industries Berhad
Slide 22: Employee engagement
22 Employee engagement Sports Malaysian Pacific Industries Berhad
Slide 23: Anti-bribery & anti-corruption
23 Anti-bribery & anti-corruption LEADING ETHICALLY & TRANSPARENTLY Certification for implementing Anti-Bribery Management Systems, complying with ISO 37001:2016. Operating subsidiaries Certifying authority Status Carsem M SIRIM QAS International Sdn. Bhd. Certified Shanghai Ingeer Certification Car
Slide 24: Table of Content
1 24 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 25: Industry dynamics
25 Industry dynamics SEMICONDUCTOR INDUSTRY OUTLOOK IS DAMPENED BY THE RECESSION RISKS IN THE US AND SLOWDOWN IN EU Malaysian Pacific Industries Berhad
Slide 26: Sluggish automotive market
26 Sluggish automotive market GLOBAL AUTO MARKET IS COOLING OFF AFTER A STRONG REBOUND LAST 2 YEARS Growing market uncertainty is obscuring the outlook for recovery Lack of demand for EV due to higher costs Car sales are down due to economic & insufficient charging infrastructure distress & high int
Slide 27: Chinese semiconductor industry
27 Chinese semiconductor industry CHINESE SEMICON INDUSTRY IS GRADUALLY GAINING MOMENTUM China is currently the world's largest semiconductor market, accounting for more than 50% of global consumption. Lots of new backend semiconductor companies are coming up in China with the help of Govt. Incentiv
Slide 28: Facilities expansion in Southeast Asia
28 Facilities expansion in Southeast Asia OVERSEAS EXPANSION OF FACILITIES TRENDING – MALAYSIA EMERGES AS A TOP CHOICE Malaysian Pacific Industries Berhad
Slide 29: Growth strategy
29 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 wide band gap tech (SiC, GaN), power segments packages for AI, custom sensors for auto, 5G/6G • Sharp sales p
Slide 30: Sales
30 Sales SEMICON INDUSTRY IS POISED FOR GROWTH IN THE LONG TERM, THOUGH VOLATILITY IS EXPECTED IN THE SHORT TERM To maintain a competitive edge in the rapidly evolving semiconductor industry, Carsem continues to invest in packages for hydrogen cars, renewable energy & AI servers WIDE BAND GAP AI SER
Slide 31: Sales – SiC and GaN packaging
31 Sales – SiC and GaN packaging CARSEM’S WIDE BAND GAP BUSINESS IS FOCUSING ON MID TO HIGH POWER TECHNOLOGY GaN Powered Artificial Intelligence (AI) Ongoing SiC & GaN projects for Automotive & Renewable Energy (USD Mil) Source: www.researchandmarkets.com Source: AI Research Portal Carsem is front r
Slide 32: Confident about longer term outlook
32 Confident about longer term outlook CARSEM IS FULLY GEARED UP TO RUN AS SOON AS MARKET BOUNCES BACK THE RIGHT PORTFOLIO POSITIONING COMPETITIVE PRICING STRATEGY CONTINUOUS INVESTMENT IN GROWTH AREAS ADEQUATE CAPACITY TO ABSORB NEW BUSINESS ANCHOR CUSTOMERS & STRONG PIPELINE ROBUST CASH POSITION M
Slide 33: Sales – Revenue composition
33 Sales – Revenue composition AUTO AND INDUSTRIAL REMAIN STRATEGIC AUTOMOTIVE CONSUMER & COMMUNICATIONS • 5G and IoT are unlocking multitude of use cases – smart cities, healthcare, etc. • Long term growth is driven by electrification, ADAS/ AD, safety, and connectivity trends • Semiconductor deman
Slide 34: Technology – Automotive segment
34 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 35: Technology – Industrial segment
35 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 More servers with high power & high efficien
Slide 36: Technology – Consumer/communications segment
36 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 37: Technology – Immediate focus: SiC
37 Technology–Immediate focus SiC - UNLOCKING RF & POWER APPLICATIONS CARSEM ADVANTAGE ✓ Already working with the No.1 SiC wafer supplier in the world Benefits of SiC over ✓ Optimized packaging & previous gen materials performance for better results SiC technology for power has ✓Wider bandgap, ✓ Ong
Slide 38: Technology – Immediate focus: GaN for RF
38 Technology – Immediate focus GaN FOR RADIO FREQUENCY (RF) APPLICATIONS – 5G BASE STATIONS Significant growth is projected for front end modules (FEM) in the next 8 years ✓ Carsem spent US$ 12Mil for 5G RF FEM. Carsem Suzhou already has experience in FEM for 4G/5G, include DiFEM Module/DiFEM Modul
Slide 39: Technology – Future focus: 5G testing
39 Technology – Future focus 5G TESTING 5G – Next Generation of mobile broadband Carsem Suzhou ✓ CSZ is working with 10+ customers for 5G device testing ✓ Completed 5G and Wifi7 RF test capability development, up to WiFi7 7.125GHz ✓ Continuing engagement with specialized customer for 5G FR2 (mmWave)
Slide 40: Technology – Future focus: Satellite communication
40 Technology – Future focus Satellite Communication Satellite Communication Growth Up Carsem Suzhou ✓ Continue extend supper high RF frequency up to 54 GHz Freq extension ✓ Coverage for mmWave applications: such as 5G, Satcom, Radar, and EW ✓ Engagement with specialized customer for satellite commu
Slide 41: Technology – Future focus: Modules
41 Technology – Future focus MODULES Entirely new SMT Line 3D X - Ray C - Mold CARSEM SUZHOU ✓ Invested in dedicated machines for FEM module line and skilled manpower extend FEM line capacity ✓ Started production for DiFEM Module/LFEM Module/Duplexer+ Quadrupled since Q2FY24 ✓ In regular SiP package
Slide 42: Technology – Carsem technology center
42 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 43: Quality & productivity focus
43 Quality & productivity focus Data Analytics - Test planning system automation Streamline the labor-intensive manual test planning process through Test Planning System Automation Pain Points 1. Manual Test Planning Process 2. Time consuming and labor intensive 3. Complex Planning involving HW/Eqp
Slide 44: Awards and recognitions
44 Awards and recognitions QUALITY, PEOPLE and ESG BEST SUPPLIER AWARDS received MAXSCEND WILLSEMI XingHao CANAANTEK EPICMEMS ALLEGRO KangXi Malaysian Pacific Industries Berhad
Slide 45: Awards and recognitions: Technology advancement
45 Awards and recognitions TECHNOLOGY ADVANCEMENT VITESCO GOLD award – Hydrogen sensor for fuel cell • The package comes with enhanced protection features for harsh media compatibility, with advance manufacturing capability, with protection breathable membrane attach process, and package sawing capa
Slide 46: Table of Content
1 46 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 47: Financial highlights: Q4 FY24 snapshot
47 Financial highlights Q4 FY24 SNAPSHOT REVENUE Despite overall market uncertainty, Q4 FY24 has grown by 10% against corresponding quarter of last year PAT PAT surged by more than 100% sequentially and against the same quarter of last year CASH Even during global slowdown, MPI continues to accumula
Slide 48: Key financials
48 Key financials MPI GROUP RESULTS AT A GLANCE Q4 FY24 Q3 FY24 Q4 FY23 Q4 vs Q3 Q4 vs Q4 FY24 FY23 YoY RM mil RM mil RM mil % % RM mil RM mil % Revenue 532.8 526.1 482.4 1% 10% 2,094.9 2,044.7 2% PAT 108.9 46.8 17.1 >100% >100% 233.2 108.1 >100% PATAMI 83.0 32.8 8.1 >100% >100% 164.4 61.3 >100% EPS
Slide 49: Investments
49 Investments CONTINUING STRATEGIC INVESTMENTS MPI CAPEX (RM million) • Hire domain specific relevant people across the globe to support business operations & sales • Investing in research & development to deliver latest technology solutions to our customers • Floor space expansion to meet increasi
Slide 50: Cash
50 Cash MPI HAS ACCUMULATED RM 1 BILLION CASH DESPITE ALL THE CAPITAL EXPENDITURE SPENT FOR EXPANSION NET CASH (RM million) position going from strength to strength 284 387 444 547 573 644 677 689 713 761 798 809 826 943 918 927 902 914 890 849 772 840 816 813 801 872 936 958 1,001 Jun- Dec- Jun- De
Slide 51: Statement of profit or loss
51 Statement of profit or loss Q4FY24 Q4FY23 Changes RM '000 RM '000 % Revenue 532,840 482,426 10% Cost of sales (489,418) (443,389) 10% Gross profit 43,422 39,037 11% Operating expenses (20,286) (35,235) -42% Other operating income/(expenses) 85,324 7,064 1,108% Profit from operation 108,460 10,866
Slide 52: Statement of financial position
52 Statement of financial position 30/06/2024 30/06/2023 RM'000 RM'000 Non-current assets Property, plant and equipment 1,311,637 1,416,233 Right-of-use assets 42,891 47,298 Investment properties 26,174 27,026 Investments 46 46 1,380,748 1,490,603 Current Assets Inventories 146,200 149,537 Trade and
Slide 53: Statement of financial position
53 Statement of financial position 30/06/2024 30/06/2023 RM'000 RM'000 Equity Share Capital 352,373 352,373 Reserves 1,902,200 1,826,261 Treasury shares (163,619) (163,816) 2,090,954 2,014,818 Non-controlling interests 375,336 345,570 2,466,290 2,360,388 Non-current liabilities Borrowings (unsecured
Slide 54: Summary
54 Summary MPI revenue grew by 10% in Q4 FY24 Vs Q4 FY23 PAT improved by 100%, proving the implemented cost prudence measures to be effective MPI has a healthy order book for future quarters despite the ongoing market uncertainty Carsem continues to invest in new technologies & machines to grab the
Slide 55: Thank You
55 Thank You Malaysian Pacific Industries Berhad
Malaysian Pacific Industries Berhad — Q4 FY2024 Earnings Presentation on 6ix