QES Group Bhd · MYX:QES
QES Group Bhd — Q1 2022 Earnings Presentation
43 slides from QES Group Bhd's earnings presentation, May 20, 2022
Slide 1: QES Investor Briefing Q1-2022
QES INVESTOR BRIEFING Q1-2022 (20 May 2022) Assuring you our best, always in collaboration with © 2022 QES Group Berhad. All rights reserved.
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by QES Group Berhad and is preliminary in nature and solely for information and discussion purposes and must not be relied upon for any other purpose. The “Presentation” that follows shall mean and include the slides that follow, the oral presentation o
Slide 3: Company Overview - Corporate Structure
Company Overview - Corporate Structure DISTRIBUTION DIVISION MANUFACTURING DIVISION 100% 100% 100% 100% QES Intra Pacific QES (Asia-Pacific) QS Instruments QES Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Manufacturing Sdn. Bhd. 100% 87.7% QES (Thailand) Co., Ltd. QES Technology Philippines, Inc 100% 85% 30% 82.5%
Slide 4: Company Overview - Corporate Milestones
Company Overview- Corporate Milestones • Official launch of SPECTRO SEA Centre of • Diversification into Excellence. business of: • QES was founded a) semiconductor test • Implementation of in October 1991 and assembly; ERP within QES by Mr Chew Ne b) semiconductor wafer Group. Weng as a fabrication
Slide 5: Company Overview - Organization Structure
Company Overview - Organization Structure Managing Director/President Chew Ne Weng Executive Director Liew Soo Keang Human Resource Manufacturing & Finance & & Admin R&D Treasury General Manager General Manager Vice President Inspection, Test & Yeoh Cheong Yeow Chin Guat Eem Lim Chee Keong Measureme
Slide 6: Business Overview - Business Segments
Business Overview - Business Segments Distribution Manufacturing Semiconductor Semiconductor Inspection, Test Materials & Analytical Inspection & Automated & Measurement Engineering Instruments Measuring Handling Equipment Solutions Equipment Equipment © 2022 QES Group Berhad. All rights reserved.
Slide 7: Business Overview - Distribution Division
Business Overview - Distribution Division Inspection, Test & Measurement Materials Engineering Solutions Application • Inspection for flaws • Consumable materials used in the • Sub systems to process toxic gas • Test and analyse composition of semiconductor industry in the fabrication process materi
Slide 8: Business Overview - Manufacturing Division (Semiconductor Equipment)
Business Overview - Manufacturing Division (Semiconductor Equipment) Semiconductor Inspection & Measurement Automated Handling Systems • Application Automated Inspection Equipment • Automated Handling Equipment (Semiconductor) • Semi-Automated Inspection Equipment • Automated Inspection Equipment •
Slide 9: Business Overview - Semiconductor Equipment Line Up
Business Overview - Semiconductor Equipment Line Up Manufacturing Division - Equipment for Semiconductor Processes Automated 1st Optical Chapman Wafer 2nd Optical Semi- Post Die Attach 3rd Optical Semi- Wafer Sorters Semi-Auto Metrology (AMS Auto Inspection Semi-Auto Auto Inspection Post Mold Panel
Slide 10: Business Overview - Manufacturing Division (IR4.0 & Smart Manufacturing)
Business Overview - Manufacturing Division (IR4.0 & Smart Manufacturing) IR4.0 and Smart Manufacturing Solutions Automated Vision Software • Post Wire Bonding Application • Smart Vending Solutions • Post Die Attach • • Automated Smart Inspection Equipment Security Solutions • Wafer Inspection and Po
Slide 11: Business Overview - IR4.0 and Smart Manufacturing Solutions
Business Overview - IR4.0 and Smart Manufacturing Solutions SMART VENDING SOLUTIONS INTEGRATED WAREHOUSE • Real-Time Database MANAGEMENT SOLUTIONS • Requirement Personalized to • RFID Technology Employees • Fully end-to-end integration • Automated Issuance from Receiving to Issuance • PPE Integrity
Slide 12: Business Overview - Sector & Product Diversity
Business Overview -Sector & Product Diversity Manufacturing ❖ Diversified into 3 core sectors Core Business ❖ Counter cyclical Distribution ❖ Spare parts and service provide strong recurring Spare Parts and Service revenue ❖ Sustainable revenue Electrical & growth Semiconductor Electronics Automotiv
Slide 13: Financial Highlights - Quarterly Results QoQ and YoY
Financial Highlights - Quarterly Results QoQ and YoY For the period ended RM'mil Q1 22 Q4 21 QoQ% Mar 22 Mar 21 YoY% Revenue Distribution 60.4 55.0 9.8% 60.4 45.3 33.3% - Product 40.6 32.3 25.7% 40.6 29.5 37.6% - Materials 9.4 9.2 2.2% 9.4 5.7 64.9% - Spares & Service 10.4 13.5 -23.0% 10.4 10.1 3.0%
Slide 14: Financial Highlights - Quarterly Results Comparison
Financial Highlights – Quarterly Results Comparison In RM ‘mil For Period Ended Q1'22 vs Q1'22 vs Mar'22 vs Q1'22 Q1'21 Q4'21 Mar'22 Mar'21 Q1'21 Q4'21 Mar'21 Revenue 66.3 52.6 64.2 26.0% 3.3% 66.3 52.6 26.0% PATMI 6.7 6.9 4.4 -2.9% 52.3% 6.7 6.9 -2.9% PATMI Margin 10.1% 13.1% 6.9% 10.1% 13.1% EBITD
Slide 15: Financial Highlights - Quarterly Revenue and PBT trend
Financial Highlights – Quarterly Revenue and PBT trend Quarterly Financial Highlights 20.0% 66.3 2019 - 2022 Q1 64.2 17.1% 54.3 52.6 51.7 15.0% 14.2% 41.5 40.6 39.9 40.5 39.8 39.5 38.9 35.9 10.3% 10.0% 9.9% 8.9% 8.3% 9.3% 7.3% 6.8% 6.4% 6.2% 5.0% 2.7% 9.0 9.4 5.4 5.3 5.7 3.3 0.0% 2.9 2.7 2.3 2.5 (1.
Slide 16: Financial Highlights of FYE22 - 3M cumulative period
Financial Highlights of FYE22 – 3M cumulative period Revenue (RM Mil) Gross Profit (RM Mil) PBT (RM Mil) PATMI (RM Mil) 66.3 16.9 52.6 9.0 9.4 14.7 6.9 6.7 3M-2021 3M-2022 3M-2021 3M-2022 3M-2021 3M-2022 3M-2021 3M-2022 • Overall revenue increased notwithstanding a drop from the manufacturing divisi
Slide 17: Financial Highlights - Cash & Cash Equivalents
Financial Highlights – Cash & Cash Equivalents Cash and cash equivalents (RM'mil) 85.4 79.4 71.4 51.3 45.7 2018 2019 2020 2021 Q1-2022 * Included in the financial year ended 2020 Cash and Bank Balances is RM17,850,000 being monies placed to vendor’s financier in respect of the 5-storey detached fact
Slide 18: Financial highlights - Gearing ratio
Financial highlights – Gearing ratio 150 0.40 139.1 140 135.7 130 0.35 120 117.3 0.30 110 0.28 100 0.27 87.8 89.1 0.25 90 RM' million 80 0.21 0.20 70 0.19 0.18 60 0.15 50 40 36.9 33.3 0.10 30 28.3 20 15.5 17.0 0.05 10 0 - 2018 2019 2020 2021 Q1-2022 Total debts (RM'million) Shareholders’ Equity (RM'
Slide 19: Financial highlights - Other ratios
Financial highlights – Other ratios Earnings before Interest, Taxes, Depreciation and Profit attributable to Owners of the Company Amortisation (RM'million) (RM'million) 29.0 19.0 19.8 14.1 15.4 10.7 8.7 8.7 6.7 3.3 2018 2019 2020 2021 Q1-2022 2018 2019 2020 2021 Q1-2022 Basic Earnings per Share (se
Slide 20: Analysis: Revenue (QoQ and YoY) - By Countries
Analysis: Revenue (QoQ and YoY) – By Countries For the period ended RM m Q1 22 Q4 21 QoQ% Mar 22 Mar 21 YoY% Revenue Malaysia grew strongly YoY due to Distribution Malaysia 31.6 28.8 9.7% 31.6 15.4 105.2% Slight dip from a high benchmark ASEAN 28.1 29.1 -3.4% 28.1 30.4 -7.6% from Indonesia and Phili
Slide 21: Analysis: Revenue Breakdown - By Country/Region
Analysis: Revenue Breakdown – By Country/Region 5.5% 8.3% 8.5% 11.0% 10.0% 42.3% 57.1% 53.4% 50.2% 59.9% 47.7% 38.3% 41.3% 37.4% 29.1% 2018 2019 2020 2021 Q1-2022 Malaysia ASEAN Others © 2022 QES Group Berhad. All rights reserved.
Slide 22: Analysis: Revenue Breakdown - By Division
Analysis: Revenue Breakdown – By Division 4.4% 11.4% 8.9% 18.3% 16.2% 26.5% 15.7% 21.1% 21.4% 25.8% 75.4% 69.1% 67.5% 60.3% 58.0% 2018 2019 2020 2021 Q1-2022 Distribution Division - Product Distribution Distribution Division - Services & Supply of Spare Parts Manufacturing Division © 2022 QES Group
Slide 23: Analysis: Revenue Breakdown - By Industry
Analysis: Revenue Breakdown – By Industry 10.7% 8.6% 12.5% 14.5% 18.4% 24.5% 18.8% 20.0% 19.4% 24.8% 20.3% 25.2% 53.6% 43.9% 45.2% 39.6% 2019 2020 2021 Q1-2022 Semicon Automotive E&E Others © 2022 QES Group Berhad. All rights reserved.
Slide 24: Analysis: Manufacturing equipment series revenue trend
Analysis: Manufacturing equipment series revenue trend Manufacturing Division - Revenue Breakdown (YoY) by Product Series © 2022 QES Group Berhad. All rights reserved.
Slide 25: Analysis: Equipment Installed Base - Cumulative
Analysis: Equipment Installed Base - Cumulative Manufacturing Total QES Group 400 353 13,500 13,169 344 12,933 350 300 13,000 300 265 12,291 243 12,500 250 12,000 11,642 200 11,500 11,070 150 11,000 100 50 10,500 - 10,000 FY 18 FY 19 FY 20 FY 21 Q1 22 FY 18 FY 19 FY 20 FY 21 Q1 22 Installed base con
Slide 26: QES Group - Advantages and Strengths
QES Group – Advantages and Strengths Diversified base of Well established own Large installed base more than 3,800 subsidiaries regional of more than 12,000 customers primarily infrastructure across machines worldwide. from semiconductor, ASEAN. E&E, Metal & Automotive sectors. Extensive R&D on Larg
Slide 27: Key Investment Merits
Key Investment Merits Diverse Products and Regional Presence in Strong financial balance Market Segments ASEAN Market With sheet Overseas Expansion ▪ 30 years experience of being a one stop specialist in Plans ▪ Cash and cash equivalents of > manufacturing, distribution and RM 71.4 million as of 31-
Slide 28: Corporate Updates
Corporate Updates Event Planned activities and updates ❖ Almost 90% completed and moved in as announced on 23-Mar-22. QES @ Glenmarie ❖ Have begun to accept visits from customers, suppliers and fund managers. ❖ Target to conduct official opening ceremony in Aug/Sep 22. ❖ Fully paid to PDC as at 16th
Slide 29: Outlook Summary for FY2022 and beyond
Outlook Summary for FY2022 and beyond Event Planned activities and updates ❖ Order intake from semiconductor customers continues to be very strong. ❖ Same issues plaguing us since 1.5 years ago where deliveries severely impacted by supply chain issues and shortage of critical components. ❖ Will offi
Slide 30: Outlook Summary for FY2022 and beyond
Outlook Summary for FY2022 and beyond Event Planned activities and updates ❖ Estimated 5~6 months to clear backlog of orders (~RM 92 mil) from FY 2021. ❖ Order intake momentum remains strong between Jan to Apr 2022. ❖ QES Group is cautiously optimistic to see growth in FY2022 over FY2021 both top an
Slide 31: AOI Series - Wafer Inspection (PPI Series) Updates
AOI Series - Wafer Inspection (PPI Series) Updates Pictures taken at QES’ new Hicom-Glenmarie factory © 2022 QES Group Berhad. All rights reserved.
Slide 32: ESG Targets and Action Plans
ESG Targets and Action Plans Environmental ➢ QES promoting WEEE/ROHS analytical equipment 237 metric 912,209km to check and monitor hazardous elements (lead, mercury, cadmium etc) coming into consumer electronic products. tonnes Cars mileage taken Playing our part to ensure planet Earth is environme
Slide 33: ESG Targets and Action Plans
ESG Targets and Action Plans Social Governance ➢ Appropriate checks and balance via separate ➢ Gender and racial diversity within employees. roles and functions of Chairman and Approximately 30% female; 70% male Managing Director / President. employee in the entire Group. ➢ Strong oversight and acco
Slide 34: QES Group New Factory - May '22
QES Group New Factory – May ‘22 © 2022 QES Group Berhad. All rights reserved.
Slide 35: QES Group New Factory - May '22
QES Group New Factory – May ‘22 © 2022 QES Group Berhad. All rights reserved.
Slide 36: Cleanroom ISO 6 - May'22 Manufacturing Floor
Cleanroom ISO 6 – May’22 Manufacturing Floor © 2022 QES Group Berhad. All rights reserved.
Slide 37: Manufacturing Floor - May'22
Manufacturing Floor – May’22 © 2022 QES Group Berhad. All rights reserved.
Slide 38: Moving In New Corporate HQ - March '22
Moving In New Corporate HQ – March ‘22 © 2022 QES Group Berhad. All rights reserved.
Slide 39: Utilisation of Private Placement Proceeds - Update
Utilisation of Private Placement Proceeds - Update As at 31 March 2022 © 2022 QES Group Berhad. All rights reserved.
Slide 40: Semiconductor Market Outlook
Semiconductor Market Outlook © 2022 QES Group Berhad. All rights reserved.
Slide 41: Semiconductor Market Outlook
Semiconductor Market Outlook As a result, IC Insights now forecasts total semiconductor sales will rise over the next five years at a more moderate compound annual growth rate of 7.1% (Figure 1). Feb 10, 2022 The 2021-2026 CAGR for total opto, sensor, discretes (O-S-D devices) is projected to rise a
Slide 42: Semiconductor Market Outlook
Semiconductor Market Outlook © 2022 QES Group Berhad. All rights reserved.
Slide 43: Thank You
THANK YOU QES Group Berhad Tel: (603) 5882 6668 No 2, Jalan Jururancang U1/21, Fax: (603) 5567 0811 HICOM Glenmarie Industrial Park, Email: investor.relations@qesnet.com Seksyen U1, 40150 Shah Alam, Selangor, Website: www.qesnet.com Malaysia © 2022 QES Group Berhad. All rights reserved.