Slide 1: IMI Analyst Briefing 2023 Q2
IMI Analyst Briefing 2023 Q2 August 4, 2023 Online
Slide 2: Global Economic Outlook
Global Economic Outlook
Slide 3: Economic Growth Figures
Economic Growth Figures • Global outlook improved for 2023 due to strong consumer support 3.4 3.0 3.0 and resilient US labor market 3.5 0.9 1.5 • China forecasted to slow in 2024 WORLD 2022 2023 2024 Eurozone amid weak confidence among consumers, in housing market , and slowdown in manufacturing act
Slide 4: Global Manufacturing PMI and Electronics PMI
GLOBAL ECONOMY AND OPERATING ENVIRONMENT Global Manufacturing PMI and Electronics PMI Global Manufacturing Output business optimism dips Electronics PMI Both new orders and production fell at the to seven-month low strongest rates since January, with firms indicating that high inflation and weaker e
Slide 5: Worldwide EMS Market by Segment, CAGR from 2022-2027
Worldwide EMS Market by Segment, CAGR from 2022-2027 Industrial u5.4% Automotive u4.4% Communication u8.3% Computer u1.3% Consumer u4.4% Medical u6.4% Source: New Venture Research, July 2023 CONFIDENTIAL AND PROPRIETARY. Any use or dissemination of this material without the expressed written permiss
Slide 6: Automotive PCBs
Automotive PCBs • EV adoption is driving the growth CAGR 12% $14.5B • More than half of these PCBs are installed in the control system of Battery Electric Vehicle (BEVs) • Growing popularity of automotive lightweighting is leading to a $9.1B gradual shift toward the use of flexible printed circuits
Slide 7: 1H 2023 ESG & Sustainability Performance
1H 2023 ESG & Sustainability Performance Employees (exc. STI) 13,781 Energy use from Renewable Sources GHG Emission Scope 1 & 2 2022: 26% 15% reduction y-o-y Target 100% by 2040 Target 50% total reduction from 2021-2030 Male 42% Female 58% Waste Diverted from Landfill (Phils) Recycled Waste (kg) 1H’
Slide 8: Financials
Financials
Slide 9: 2023 Q2 Segment Updates
2023 Q2 Segment Updates '22 Q2 '23 Q2 Y/Y% '22 1H '23 1H Y/Y% ➢ Automotive: • Successful price renegotiation and ramp up of new Auto 177.6 204.6 15% 360.4 401.0 11% businesses in Europe leading revenue growth Ind 126.3 103.4 -18% 228.4 209.5 -8% Aero/Def 9.1 11.5 27% 20.8 23.4 13% ➢ Industrial: Cons
Slide 10: 2023 Q2 Region Updates
➢ PH: 2023 Q2 Region Updates • Demand drop due pushout of orders by customers to deplete inventories in the channels while some customers still facing '22 Q2 '23 Q2 Y/Y% '22 1H '23 1H Y/Y% key material shortages • Exit of major industrial asset tracking business PH 96.2 67.5 -30% 163.6 145.4 -11% CN
Slide 11: 2023 1H Group Program Wins
2023 1H Group Program Wins 27* Win Location - 2023 15* 8 8 15% 50 131 76 152 31% 36% 95 47 3% 15% 2022 2023 Philippines China E. Europe MX UK Mobility Industrial Others STI* *IMI wins Annual Revenue Potential; STI wins total project size Notable Wins in 2023 Win Location - 2022 Renewable Energy Batt
Slide 12: Partnership with Zero Motorcycles
Partnership with Zero Motorcycles OVER $1B TAM THROUGH ELECTRIFICATION Strategic Partnership with IMI • Growing global demand for electric motorcycles. • IMI has the competency of electronics manufacturing and motorcycle assembly under 1 roof. o California based world leader in electric • IMI to sup
Slide 13: 2023 Q2 Performance (Non-GAAP)
2023 Q2 Performance (Non-GAAP) Revenue and Gross Profit Margin Operating Income 9.6% 8.4% 8.6% 8.5% 380 11. 0% 7.5% 1.7% 2.5% 0.9% 1.3% 12.0 9.0 % -0.1% 370 7.0 % 7.0 360 0.0 % 5.9 4.6 8.5 3.4 5.0 % (0.5) 350 2.0 3.0 % -5.0% '22Q2 '22Q3 '22Q4 '23Q1 '23Q2 340 (3 .0) 1.0 % -10.0% 357 351 367 347 345 3
Slide 14: 2023 Q2 Performance (Non-GAAP)
2023 Q2 Performance (Non-GAAP) 350 Wholly Owned Subsidiaries 102 Non Wholly Owned Subsidiaries 300 82 250 Revenue 62 200 150 42 100 22 290 275 288 276 282 67 76 79 71 63 50 2 - '22Q2 '22Q3 '22Q4 '23Q1 '23Q2 '22Q2 '22Q3 '22Q4 '23Q1 '23Q2 -18 - 2.2% 1.6% 1.9% 7.0 5.0 % '22Q2 '22Q3 '22Q4 '23Q1 '23Q2 1.
Slide 15: Capital Structure
Capital StructureLong Term Long Term Debt Debt 21% 21% Common Common Dec Equity Jun Equity 52% 49% Short Term 2022 Short Term 2023 Debt 27% Debt 31% Dec Jun Post STI Key Financial Dec Jun Post STI (US$ Millions) Ratios 2022 2023 2022 2023 Divestment Divestment Short-Term Debt 192.7 215.5 210.1 Curre
Slide 16: Disciplined Capital Investments
Disciplined Capital Investments 38.8 7.0 31.0 0.7 5.0 $11.1M 12.2 21.2 2023 1H 8.3 18.7 7.7 3.8 2.2 4.5 3.8 3.1 1.8 0.0 2.3 3.1 4.7 12.8 4.3 2.8 8.8 Buildings………....…..… .........12% Machinery………..….….........40% 3.3 1.9 2.4 Furn & Fix………...............……9% Constr. in progress….....…..36% 2019 2020
Slide 17: Key Takeaways
Key Takeaways • $84 million one-off loss booked in June to cover STI impairment of goodwill and certain assets • Turnaround will require additional funding and management effort which we believe an alternative partner will be able to better provide. • Divestment of the company will allow IMI to focu
Slide 18: connect with us
00° 1191000110 ©010110 10 1 Ol connect with us