16 slides from Integrated Micro-electronics's earnings presentation, May 11, 2023
Slide 1: IMI Analyst Briefing 2023 Q1
IMI Analyst Briefing 2023 Q1 May 11, 2023 Online
Slide 2: Global Economic Outlook
Global Economic Outlook
Slide 3: Economic Growth Figures
Economic Growth Figures • Europe better than initial growth forecasts in 2022. High energy costs, and rising interest rates weighing down 2023 growth 3.4 2.8 3.0 • The end of China’s Zero-Covid program 3.5 will spur economic activity and lead to 0.8 1.4 growth for the year WORLD 2022 2023 2024 Euroz
Slide 4: Global Fab Equipment Spending
Global Fab Equipment Spending CONFIDENTIAL AND PROPRIETARY. Any use or dissemination of this material without the expressed written permission of Integrated Micro- Electronics Inc. and/or AC Industrial Technology Holdings Inc. is strictly prohibited.
Slide 5: Global Semiconductor Inventory Index
Global Semiconductor Inventory Index • Memory market will see significant oversupply for most of 2023. • Analog components are also headed to an oversupply. • Optoelectronic chips continue to see inventory depletion. • Automotive-grade MCU and analog components still facing shortages Source: Gartner
Slide 6: Increased EV Adoption
Increased EV Adoption • 14% of all sold cars in 2022 were EV • Share of Global EV sales: China at 60%, EU 15% and US 8% • 2023 will have 14M unit sales, 35% up y-o-y, approximately 1 out of 5 cars sold • Slowing global economy and high financing rates will likely lead to more consolidation of EV sta
Slide 7: Financials
Financials
Slide 8: 2023 Q1 Segment Updates
2023 Q1 Segment Updates ➢ Automotive: • Still challenged by component shortage but starting to recover with Europe showing strong demand '22 Q1 '23 Q1 Y/Y% • Starting to ramp up EV projects won in the past 2 years Auto 182.8 196.4 7% Ind 102.1 106.1 4% ➢ Industrial: Aero/Def 11.7 11.9 2% • Gradual r
Slide 9: 2023 Q1 Region Updates
➢ PH: 2023 Q1 Region Updates • Growth driven by new industrial projects • Production facilities for Zero EV Motorcycles undergoing final '22 Q1 '23 Q1 Y/Y% preparation for SOP in Q3 PH 67.4 76.7 14% ➢ CN: CN 72.0 63.3 -12% • End of Zero-Covid strategy has reopened economy and will lead to less opera
Slide 10: 2023 Q1 Group Program Wins
2023 Q1 Group Program Wins Q1 New Program Wins Win Location - 2023 26* 30% 3* 42% 47 29 43 61 10% 18 18 14% 4% 2022 2023 Philippines China E. Europe MX UK Mobility Industrial Others STI* *IMI wins Annual Revenue Potential; STI wins total project size Win Location - 2022 Notable Wins in 2023 2% 6% Re
Slide 11: 2023 Q1 Performance
2023 Q1 Performance Operating Income Revenue and Gross Profit Margin 8.6% 8.5% 380 11. 0% 1.3% 1.1% 7.0 8.1% 7.5% -0.2% 0.3% 7.1% -0.8% 370 9.0 % 360 7.0 % 2.0 4.7 1.2 3.8 0.0 % '22Q1 '22Q2 '22Q3 '22Q4 '23Q1 350 5.0 % -5.0% (3 .0) 340 3.0 % (0.5) (2.7) (8 .0) -10.0 330 1.0 % 334 357 351 367 347 320
Slide 12: 2023 Q1 Performance
2023 Q1 Performance Non Wholly Owned Subsidiaries Wholly Owned Subsidiaries 332 102 282 82 232 62 Revenue 182 132 42 82 22 32 258 290 275 288 276 2 76 67 76 79 71 '22Q1 '22Q2 '22Q3 '22Q4 '23Q1 (1 8) '22Q1 '22Q2 '22Q3 '22Q4 '23Q1 -18 2.0% 2.1% 7.0 5.0 % 0.8% 1.0% - '22Q1 '22Q2 '22Q3 '22Q4 '23Q1 -0.6%
Slide 13: Capital Structure
Capital StructureLong Term Long Term Debt Debt 21% 20% Common Common Dec Equity Mar Equity 52% 53% Short Term 2022 Short Term 2023 Debt Debt 27% 27% Dec Mar Dec Mar (US$ Millions) Key Financial Ratios 2022 2023 2022 2023 Short-Term Debt 192.7 206.8 Current ratio 1.51 1.48 Long-Term Debt 150.4 148.7
Slide 14: Disciplined Capital Investments
Disciplined Capital Investments 38.8 7.0 31.0 0.7 5.0 $5.9M 12.2 21.2 2023 Q1 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………....…..… .........8% 3.3 1.9 2.4 Machinery………..….….........38% Furn & Fix………...............……7% 2019 2020 2021 2022 Constr. in progress…....
Slide 15: Key Takeaways
Key Takeaways • Revenues still challenged by lingering supply shortage but demand recovering particularly in European automotive market • Margin improvement from lower freight costs, manufacturing efficiency and price renegotiations • Inflation continues to drive labor and utility expense increases
Slide 16: connect with us
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