Micro-Mechanics (Holdings) Ltd · SGX:5DD
Micro-Mechanics (Holdings) — FY2017 Earnings Presentation
20 slides from Micro-Mechanics (Holdings)'s earnings presentation, Aug 29, 2017
Slide 1: FY2017 Results Presentation
Perfect Parts and Tools, On Time, Every Time FY2017 RESULTS PRESENTATION 29 AUGUST 2017
Slide 2: Business & Industry
BUSINESS & CHRIS BORCH, CEO INDUSTRY LOW MING WAH, COO Micro-Mechanics FY2017 Results Presentation
Slide 3: Corporate Overview
Corporate Overview • Founded in 1983 in Singapore • Design and manufacture high precision tools and parts used in process-critical applications for the wafer- Our Mission is… fabrication and assembly processes of the semiconductor industry Perfect Parts and Tools On • Serve a worldwide base of custo
Slide 4: Focusing on Key Customer Outcomes: Supply Need
Focusing on Key Customer Outcomes Market demands flow down through our Semiconductor Customers to Us! Market Semiconductor Customers Consumer Wafer Fab & Chip Assembly Micro-Mechanics Parts and Tools for Process-Critical Applications based on… Need Supply Key Customer Outcomes Trend: Devices < 10 na
Slide 5: The Nano World of Semiconductor Manufacturing
Focusing on Key Customer Outcomes The “Nano” world of semiconductor manufacturing Micro-Mechanics : Customers’ Prepared for “Nano” world Requirements for with Capital and Tools & Parts Engineering Resources The “NANO” world of semiconductor Smaller features with More complex design and manufacturing
Slide 6: Industry Review: Equipment Billings and Capital Spending
Industry Review Three-month average of worldwide billings of North American equipment manufacturers (US$ B) YOY Growth Gartner Says Worldwide Semiconductor Capital 2.5 80% Spending Is Forecast to Grow 10.2 Percent in 2017 Growth rate is up from the previous quarter's 70% • forecast of 1.4%, due to c
Slide 7: Industry Review: Global Monthly Chip Sales
Industry Review Global Monthly Chip Sales (US$ B) YOY Growth 35.0 30% • Global semiconductor industry experienced 25% 30.0 robust growth during the first six months of 2017 20% 25.0 • Semiconductor sales of US$190.5 billion during 15% the first half of 2017 were 20.8% higher than the same period in
Slide 8: Corporate Milestones
Corporate Milestones • Record revenue and profit in FY2017 • USA operations achieved turnaround in 4Q17 • Received two Gold Awards for Best Managed Board and Best Investor Relations at the Singapore Corporate Awards 2017 • Received a Special Commendation Award at the Singapore Governance and Transpa
Slide 9: Dividend Performance
Dividend Performance HIGHER DIVIDENDS OF 8 CENTS FOR FY2017 Brings total dividend payout since our listing to 53.9 CENTS per share Dividend Policy of Not Less Than 40% of Earnings* Dividend per 75% of Net Profit share (cents) 8.0 6.0 5.0 5.0 5.0 3.5 3.0 3.0 3.0 3.0 3.0 2.4 2.0 1.2 Special dividend 0
Slide 10: Financial Review
FINANCIAL CHOW KAM WING, CFO REVIEW Micro-Mechanics FY2017 Results Presentation
Slide 11: FY2017 P&L Overview
FY2017 in Review FY2017 P&L Overview (S$ million) K E Y R AT I O S & S TAT I S T I C S 57.2 REVENUE GROWTH 11.7% GROSS PROFIT GROWTH 12.8% 24.4 PBT GROWTH 17.9% 32.9 0.7 NET PROFIT GROWTH 24.2% 15.1 GROSS PROFIT MARGIN 57.4% 18.5 3.7 14.8 NET PROFIT MARGIN 25.8% EARNINGS PER SHARE 10.62 cents 0 RETU
Slide 12: Highest Ever Revenue in FY2017
Group Revenue HIGHEST EVER REVENUE IN FY2017 Group Revenue Global Chip Sales (S$ mil) Trend (US$B) 70 380 60 57.2 330 52.2 51.3 15.4 Revenue increased 11.7% in FY2017 50 43.9 • 12.9 13.0 280 38.8 39.2 40 11.7 • Quarterly revenue hit a record S$15.4 10.3 10.8 13.4 12.5 14.2 230 million in 4Q17 – refl
Slide 13: Diversified Revenue Streams
Group Revenue DIVERSIFIED REVENUE STREAMS FY2017 FY2016 Country % change S$ mil S$ mil Sales Breakdown for FY2017 Singapore 4.7 3.0 58% Malaysia 11.9 10.6 12% Europe, 4% Japan, 2% Taiwan, 9% Philippines 5.1 4.6 10% USA, 16% Rest of world, Thailand 1.6 1.1 45% 2% China 14.8 14.3 4% Singapore, 8% USA
Slide 14: Steady Gross Profit Margin
Gross Profit Margin Gross Margin STEADY GROSS PROFIT MARGIN 56.9% 57.4% 55.0% 49.1% 50.7% 46.3% • Higher gross profit margin in FY2017 attributed to higher capacity utilisation, as well as cost, productivity and cycle time improvements Gross profit margin is one of the results that matters most – It
Slide 15: FY2017 Profit Up 24.2% to Record Level
Profitability FY2017 PROFIT UP 24.2% TO RECORD LEVEL (S$ mil) Net Profit After Tax Operating Expenses / Revenue 16.0 14.8 FY2017 25.1% 14.0 12.0 11.9 4.6 12.0 FY2016 26.2% 2.8 2.9 10.0 FY2015 25.5% 7.7 3.5 8.0 3.7 2.7 2.4 FY2014 28.5% 6.0 5.1 3.4 4.2 2.7 4Q 4.0 1.5 1.8 2.7 FY2013 31.4% 3Q 1.4 1.4 1.
Slide 16: Building a Lean Manpower Structure
Personnel BUILDING A LEAN MANPOWER STRUCTURE Profit Before Tax per head Headcount (S$) 520 45,000 40,000 500 508 39,800 35,000 • Lean manpower structure as a by-product 36,400 480 34,400 of our improvement initiatives 30,000 471 460 465 25,000 • Added 34 people during FY17 – mainly 461 non-superviso
Slide 17: Cash-Flow Generative Operations
Cash Flow CASH-FLOW GENERATIVE OPERATIONS Track record of healthy net cash (S$ mil) from operating activities (S$ mil) CAPEX 20 20 18.1 18 18 16.3 16 16 14.1 14 14 12 10.8 12 10 8.9 8.8 10 8 8 6.5 6.6 6 6 5.1 4.9 4.1 4 4 2.6 2 2 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2012 FY2013 FY2014 FY20
Slide 18: Balance Sheet
Balance Sheet 30 June 2017 30 June 2016 Cash Cash and cash equivalents S$23.4M# S$20.1M Gearing Total borrowings Nil Nil Trade Receivables Trade Receivables S$11.0M S$9.4M (Outstanding > 90days) / 0.1% 0.1% (Total trade receivables) Bad debt expense Nil (FY17) S$11.2k (FY16) Inventory Inventory S$3.
Slide 19: Safe Harbour for Forward-Looking Statements
Safe Harbour for Forward-Looking Statements This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. Investors can identify some of these statements by forward-looking items such as ‘expect’, ‘believe’, ‘plan’, ‘intend’, ‘estimate’, ‘
Slide 20: Contact and Investor Relations
31 Kaki Bukit Place Eunos Techpark Singapore 416209 www.micro-mechanics.com INVESTOR RELATIONS CONTACT Octant Consulting Tel (65) 6296 3583 herman@octant.com.sg / lisa@octant.com.sg
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