Malaysian Pacific Industries Bhd. · MYX:MPI
Malaysian Pacific Industries Bhd — Q3 FY2024 Earnings Presentation
61 slides from Malaysian Pacific Industries Bhd's earnings presentation, May 2024
Slide 1: Malaysian Pacific Industries Berhad Investor Presentation Q3 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 3 F Y 2 0 2 4 ( J a n - M a r ‘ 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
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 (%) 526 >100% Q3 FY24 vs. Q3 FY23 Net cash (RM million) EBITDA (%) 958 26% as of Q3 FY24 Q3 FY24 Note: FY24 = July 2023 – June 2024 Malaysian Pacific Industries Berhad
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 RF – Smartphone Thin & Multi-Die MLP – Small & Thin Sensors TVS SiC tech X3 for Mobile Market Sensors Sensors for Automotive For RF & powe
Slide 8: Board of Directors
8 Board of Directors YBHG DATUK KWEK LENG SAN MANUEL ZARAUZA MS FOO AI LI 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 • Appointe
Slide 9: Management team
9 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 MURALITHARAN RAYMON
Slide 10: Table of Content
1 10 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 11: Supply chain & business model
11 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 12: Wide portfolio
12 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 13: Geographic footprint
13 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 14: Production facilities
14 Production facilities CARSEM MANUFACTURING SITES & BUSINESS UNITS Carsem (M-Site, Ipoh) • Floor Space: 436K sq. ft. (40,500 sq. m.) SOIC MICRO MSU • Workforce: 2,205 employees Automotive & Consumer • GM: Muralitharan Carsem (S-Site, Ipoh) • Floor Space: 640K sq. ft. (60,000 sq. m.) PMG MLP TEST •
Slide 15: Table of Content
1 15 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 16: Sustainability performance
16 Sustainability performance MPI IS IN FTSE4GOOD BURSA MALAYSIA INDEX FY23 performance snapshot Malaysian Pacific Industries Berhad
Slide 17: Sustainability at MPI
17 Sustainability at MPI OUR APPROACH IS RESPONSIBLE & RESPONSIVE, DRIVEN BY 3 THEMES Malaysian Pacific Industries Berhad
Slide 18: UN Sustainable Development Goals
18 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 19: Environment
19 Environment River monitoring activities at Sungai Meru Boundary noise monitoring to meet Guidelines of EQA 1974 Green day campaign every 1st Friday of the month; No plastic bag every Friday Malaysian Pacific Industries Berhad
Slide 20: Training & education
20 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES ISO27001 –Information Security Customer Development and Closing Factory 5S Online Training and Q&A Management System Training Skills Training Malaysian Pacific Industries Berhad
Slide 21: Training & Education
21 Training & Education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES Online & offline training – Apache Kafka Administration and Developer Training, Understanding IATF 16949:2016 Core Competency – Quality System, Measurement System Analysis, Acceptance Sampling, Statistical Meth
Slide 22: Employee relations
22 Employee relations Chinese New Year activities Celebrations – International Women’s Day Employee Retention and Culture Promotion Malaysian Pacific Industries Berhad
Slide 23: Employee relations
23 Employee relations Celebrations - Chinese New Year Celebration Malaysian Pacific Industries Berhad
Slide 24: Employee relations
24 Employee relations Celebrations - Raya Celebration Malaysian Pacific Industries Berhad
Slide 25: Employee relations
25 Employee relations Celebrations – Back to School 2024 Malaysian Pacific Industries Berhad
Slide 26: Employee relations
26 Employee relations Celebrations – Woman’s day Malaysian Pacific Industries Berhad
Slide 27: Recruitment
27 Recruitment Successfully organized an open interview campaign Program: Karnival Kerjaya & Pasak Perak Malaysian Pacific Industries Berhad
Slide 28: Anti-bribery & anti-corruption
28 Anti-bribery & anti-corruption LEADING ETHICALLY & TRANSPARENTLY Certification for implementing Anti-Bribery Management Systems, complying with ISO 37001:2016. Operating Certifying authority Status subsidiaries Carsem M SIRIM QAS International Sdn. Bhd. Certified Shanghai Ingeer Certification Car
Slide 29: Table of Content
1 29 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 30: Industry dynamics
30 Industry dynamics MARKET UNCERTAINTY REMAINS DESPITE NEW TECHNOLOGY PUSHING PC & SMARTPHONE MARKET OUT OF 2023 LOWS Market uncertainty remains, despite PC & Smartphone market ending their 7 consecutive quarters of decline Worldwide EV car sales up by 7% annually; BYD continued to sell the highest
Slide 31: Growth strategy
31 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 SiC, MEMS sensors, GaN, 5G testing segments • Advanced packaging – inorganic options for • Sharp sales pipeli
Slide 32: Sales
32 Sales MPI MADE A STRATEGIC MOVE TOWARDS UPCOMING TECHNOLOGIES Continued investments in complex packaging technologies SiC adoption in EVs is gaining Customized sensors used for 5G technology has a bright future – Power packages enabling the next momentum – Experience of monitoring several data po
Slide 33: Sales – SiC and GaN packaging business
33 Sales – SiC and GaN packaging business SHARPENING STRATEGIC FOCUS – CARSEM S-SITE HAS A NEW BUSINESS UNIT FOCUSING ON HIGH POWER TECHNOLOGY GaN powered Artificial Intelligence (AI) Ongoing SiC & GaN projects for Automotive & Renewable Energy USD Mil Source: www.researchandmarkets.com Source: www.
Slide 34: Sales – Expansion of automotive sensors
34 Sales – Expansion of automotive sensors The future for cars with intuitive traffic information & real time monitoring is not possible without over 100 highly sensitive sensors & faster data transfer Ready building in front of Carsem M-site Transformation to advanced Working with major automotive
Slide 35: Sales – Tapping into auto segment growth in China
35 Sales – Tapping into auto segment growth in China Automotive segment growth in China is expected to be tremendous and all the cars would need high power & complete connectivity CSX fully automated factory for automotive packaging Strong future for Carsem in China Chinese Car Brands ➢ Automotive i
Slide 36: Carsem is fully geared up to run as soon as market bounces back
CARSEM IS FULLY GEARED UP TO RUN AS SOON AS MARKET BOUNCES BACK Carsem is confident about its growth in future: THE RIGHT PORTFOLIO POSITIONING COMPETITIVE PRICING STRATEGY CONTINUOUS INVESTMENT IN GROWTH AREAS ADEQUATE CAPACITY TO ABSORB NEW BUSINESS ANCHOR CUSTOMERS & STRONG PIPELINE ROBUST CASH P
Slide 37: Sales – Revenue composition
37 Sales – Revenue composition AUTO REMAINS STRATEGIC – GROWN FROM ~29% IN FY18 TO 43% OF OUR SALES NOW 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 conne
Slide 38: Sales – Pipeline
38 Sales – Pipeline HEALTHY PIPELINE BUT RECESSIONARY RISKS HAVE PUSHED PROJECTS TO FUTURE QUARTERS NEW PROJECT INTRODUCTIONS (#) • Carsem has a healthy order book with major projects coming from the Automotive segment • Healthy pipeline development on the enabling technologies of future, i.e., SiC,
Slide 39: Technology – Automotive segment
39 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 40: Technology – Industrial segment
40 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 41: Technology – Consumer/communications segment
41 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 42: Technology – Invention patent
42 Technology – Invention patent Die level traceability - Die level A2MM Die information transforming fully implement DA Machine IT Host Laser Mark Machine XXYY (Die coordinate) Unique unit Pick die Marking ##(Wafer ID) AABB (unit coordinate) Record information and Follow host instruction Extract in
Slide 43: Technology – Immediate focus: SiC
43 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 44: Technology – Immediate focus: GaN for RF
44 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 45: Technology – Future focus: 5G testing
45 Technology – Future focus 5G TESTING Carsem Suzhou has been working extensively on 5G test technology 5G – Next Generation of mobile broadband development ✓ CSZ is working with 10+ customers for 5G device testing ✓ Completed 5G and Wifi7 RF test capability development, up to WiFi7 7.125GHz ✓ Cont
Slide 46: Technology – Future focus: Modules
46 Technology – Future focus MODULES Entirely new SMT Line 3D X - Ray C - Mold CARSEM SUZHOU ✓ Invested in dedicated machines for FEM module line under production ✓ Invest in dedicated machine and skilled manpower to extend FEM line capacity ✓ Attacking high end customer FEM product, under engineeri
Slide 47: Technology – Carsem technology center
47 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 48: Technology – Key R&D projects
48 Technology Key R&D projects • Side wall plating design by step cut for automotive • Small body size; excellent wetting performance • GaN device for fast charging application device • Exposed pad – good with heat dissipation • Thin package with small body size • High thermal performance, simpler P
Slide 49: Quality & productivity focus
49 Quality & productivity focus OEE – Overall Equipment Effectiveness & RMS – Recipe Management In house developed OEE system for real-time performance monitoring and Backgrind RMS for process robustness and error proofing In-House OEE In-House OEE Backgrind RMS • Realtime monitoring of machine stat
Slide 50: Awards and recognitions
50 Awards and recognitions QUALITY, PEOPLE and ESG BEST SUPPLIER AWARDS received MAXSCEND WILLSEMI XingHao CANAANTEK EPICMEMS Malaysian Pacific Industries Berhad
Slide 51: Awards and recognitions
51 Awards and recognitions QUALITY, PEOPLE and ESG AOS，US MOSFET Power MXD CHN SSE,CHN SWM，CHN Management RF IC, SiP, PMIC RFIC, TVS, PMIC Allegro, US Outstanding Support: Capacity FY2022 Best in Class: Quality FY2022 / FY2023 PSE, CHN KXC，CHN EPM,CHN ZSS CHN TVS WiFi / RF RF IC RF Filter Power Mana
Slide 52: Table of Content
1 52 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 53: Financial highlights
53 Financial highlights Q3 FY24 SNAPSHOT REVENUE Despite overall market uncertainty, Q3 FY24 has grown by 11% against corresponding quarter of last year PAT Optimized productivity & cost prudence measures led to PAT surge by more than 100% vs. same quarter last year CASH Even during global slowdown,
Slide 54: Key financials
54 Key financials MPI GROUP RESULTS AT A GLANCE Q3 FY24 Q2 FY24 Q3 FY23 Q3 vs Q2 Q3 vs Q3 YTD FY24 YTD FY23 YoY RM mil RM mil RM mil % % RM mil RM mil % Revenue 526.1 522.8 471.9 1% 11% 1,562.0 1,562.3 -0.02% PAT 46.8 47.5 (8.4) -2% >100% 124.3 91.0 37% PATAMI 32.8 32.2 (17.8) 2% >100% 81.4 53.2 53%
Slide 55: Investments
55 Investments CONTINUING STRATEGIC INVESTMENTS FOCUSING ON SENSORS, 5G TESTING & SiC/ GaN TECHNOLOGIES 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 t
Slide 56: Cash
56 Cash STRONG NET CASH POSITION MEANS STABILITY IN UNCERTAIN TIMES NET CASH (RM million) position remained healthy 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 Jun- Dec- Jun- Dec- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- De
Slide 57: Statement of profit or loss
57 Statement of profit or loss Q3FY24 Q3FY23 Changes RM '000 RM '000 % Revenue 526,055 471,861 11% Cost of sales (463,501) (440,317) 5% Gross profit 62,554 31,544 98% Operating expenses (29,225) (31,141) -6% Other operating income/(expenses) 10,334 (9,641) -207% Profit from operation 43,663 (9,238)
Slide 58: Statement of financial position
58 Statement of financial position 31/03/2024 30/06/2023 RM'000 RM'000 Non-current assets Property, plant and equipment 1,338,539 1,416,233 Right-of-use assets 42,899 47,298 Investment properties 26,403 27,026 Investments 46 46 1,407,887 1,490,603 Current Assets Inventories 153,706 149,537 Trade and
Slide 59: Statement of financial position
59 Statement of financial position 31/03/2024 30/06/2023 RM'000 RM'000 Equity Share Capital 352,373 352,373 Reserves 1,932,618 1,826,261 Treasury shares (163,619) (163,816) 2,121,372 2,014,818 Non-controlling interests 381,254 345,570 2,502,626 2,360,388 Non-current liabilities Borrowings (unsecured
Slide 60: Summary
60 Summary MPI revenue grew by 11% in Q3 FY24 Vs Q3 FY23 PATAMI improved by nearly 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
Slide 61: Thank You
61 Thank You Malaysian Pacific Industries Berhad
Malaysian Pacific Industries Berhad — Q3 FY2024 Earnings Presentation on 6ix