Malaysian Pacific Industries Bhd. · MYX:MPI
Malaysian Pacific Industries Bhd — Q1 FY2022 Earnings Presentation
62 slides from Malaysian Pacific Industries Bhd's earnings presentation, November 2021
Slide 1: Investor Presentation Q1 FY2022
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 1 F Y 2 0 2 2 ( J u l - S e p ’ 2 1 ) 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
3 TABLE OF CONTENT 1 INTRODUCTION 2 C O R P O R AT E O V E R V I E W 3 BUSINESS OVERVIEW 4 S U S TA I N A B I L I T Y 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 4: MPI – A Member of the Hong Leong Group
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 and Dynacraft are operating companie
Slide 5: Quarterly Snapshot
5 Quarterly Snapshot Q1 FY22 - STRONG FUNDAMENTALS DELIVERING INDUSTRY LEADING RESULTS Revenue (US$ million) PATAMI growth Net cash (RM million) 139 48% 914 vs Q1 FY21 Revenue growth EPS CAPEX growth 33% 41.17sen 90% vs Q1 FY21 vs Q1 FY21 • Focused growth & transformation strategy with execution cap
Slide 6: Business outlook
6 Business outlook MPI will continue to benefit from • Long term technology drivers – in particular, RF (5G) in Asia, and power (SiC, GaN) & automotive (electrification, sensors, safety) across US, EU • Localization driven demand trends in China • Positioning of reliable supply center for US & EU, b
Slide 7: Table of Content
7 TABLE OF CONTENT 1 INTRODUCTION 2 C O R P O R AT E O V E R V I E W 3 BUSINESS OVERVIEW 4 S U S TA I N A B I L I T Y 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 8: Journey & Capabilities
8 Milestones 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 Sensors for For RF & power X3 for Mobile Market Sensors Automotive
Slide 9: Board of Directors
9 Board of Directors YBHG DATUK KWEK LENG SAN MANUEL ZARAUZA IR. DENNIS ONG LEE KHIAN 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 variou
Slide 10: Management team
10 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 ERIC CHEAH, CFO, MPI INDERJEET SINGH, GM, CARSEM S-SITE,
Slide 11: Table of Content
11 TABLE OF CONTENT 1 INTRODUCTION 2 C O R P O R AT E O V E R V I E W 3 BUSINESS OVERVIEW 4 S U S TA I N A B I L I T Y 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 12: Supply chain & business model
12 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 (bare
Slide 13: Wide portfolio
13 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 Consumer & MEMS & Sensors Copper Clip Flip Chip Suppressor (TVS) Management (SiC, Communication
Slide 14: Geographic footprint
14 Geographic footprint BROAD GEOGRAPHIC PRESENCE, SERVING A GLOBAL CUSTOMER BASE CARSEM NORTH AMERICA CARSEM EUROPE CARSEM S. KOREA CARSEM SUZHOU, CHINA CARSEM JAPAN CARSEM TAIWAN CARSEM IPOH, MALAYSIA DYNACRAFT INDUSTRIES, S-SITE, M-SITE PENANG, MALAYSIA LEGEND Manufacturing plants & Sales offices
Slide 15: Production facilities
15 Production facilities CARSEM MANUFACTURING SITES & BUSINESS UNITS Carsem (M-Site, Ipoh) • Floor Space: 436K sq.ft. (40,500 sq. m.) • Workforce: 2,144 employees Automotive & Consumer SOIC MICRO MSU • GM: Sharon Ko Carsem (S-Site, Ipoh) • Floor Space: 640K sq.ft. (60,000 sq. m.) • Workforce: 3,433
Slide 16: Production facilities – Carsem Suzhou
16 Production facilities – Carsem Suzhou COMPLETED LEVEL 2 EXPANSION WILL ENABLE TO CAPTURE ADDITIONAL BUSINESS FROM THE ASIAN MARKET 1st Phase 2nd Phase Completed in Oct 2020 Completed in Sep 2021 • Total floor space in 2nd Phase Level 2: • Total floor space in 1st Phase Level 2: 4,300 4,400 Sq. Me
Slide 17: Production facilities
17 Production facilities FACTORY EXPANSION FOR PIPELINE, COMMITMENTS & BUSINESS GROWTH CHINA MALAYSIA Malaysian Pacific Industries Berhad
Slide 18: Table of Content
18 TABLE OF CONTENT 1 INTRODUCTION 2 C O R P O R AT E O V E R V I E W 3 BUSINESS OVERVIEW 4 S U S TA I N A B I L I T Y 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 19: Our operational context
19 Our operational context INTERNAL & EXTERNAL FACTORS GOVERNING & INFLUENCING OUR BUSINESS Malaysian Pacific Industries Berhad
Slide 20: Sustainability at MPI
20 Sustainability at MPI OUR APPROACH IS RESPONSIBLE & RESPONSIVE, DRIVEN BY 3 THEMES Better Economy Better Environment Better Society Shareholders Energy & emissions GHG Employees Suppliers Waste Business ethics Customers Water Local communities • We respect the local environment • We prioritise th
Slide 21: UN Sustainable Development Goals
21 UN Sustainable Development Goals 6 PRIORITY SDGs MOST ALIGNED WITH OUR BUSINESS Innovation, technology & MPI has a role to play in energy related infrastructure efficiency, emissions control development is a key focus and waste management area for MPI As a responsible MPI makes a business, safegu
Slide 22: Sustainability performance
22 Sustainability performance FY21 PERFORMANCE SNAPSHOT Energy intensity in GHG emission Water consumption FY21 was intensity in FY21 index in FY21 was substantially below was well below much lower than FY15 baseline, as FY15 baseline, as FY15 baseline, as targeted targeted targeted 30% lower 29% lo
Slide 23: Workforce diversity & talent retention
23 Workforce diversity & talent retention WE CONTINUE TO PROMOTE INCLUSIVITY, NON-DISCRIMINATION AND EMPLOYEE ENGAGEMENT EMPLOYEES FEMALE EMPLOYEES total global workforce % of female employees in workforce 10,746 45% employees at female employees June 30, 2021 “Women represent 10-25% of the semicond
Slide 24: Training & education
24 Training & education TRAINING & UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES TRAINING HOURS TRAINING TYPES CONDUCTED formal training hours for employees number of trainings by types 80,372 68,356 2020 2021 Jan-Jun TRAINING HOURS PER EMPLOYEE 253 106 average formal training hours/employee
Slide 25: Anti-bribery & anti-corruption
25 Anti-bribery & anti-corruption LEADING ETHICALLY & TRANSPARENTLY Received SIRIM certification for implementing Anti-Bribery Management Systems complying with ISO 37001:2016. Malaysian Pacific Industries Berhad
Slide 26: Energy & emissions
26 Energy & emissions MANAGING OUR CARBON FOOTPRINT AND ENERGY CONSUMPTION 30% reduction in energy intensity in FY21, below GHG 29% drop in C02 emissions/ kk unit in FY21, below FY15 baseline FY15 baseline CO2, metric ton/ kk unit CO2, metric ton Increased production activity during FY21 led to high
Slide 27: Water management
27 Water management MANAGING OUR WATER CONSUMPTION & CONSERVATION 29% reduction in water consumption index in FY21, below FY15 baseline, despite higher production demand Malaysian Pacific Industries Berhad
Slide 28: Environment
28 Environment PROMOTING AWARENESS & COLLABORATING CLOSELY WITH DOE, PERAK, MALAYSIA Launched e-waste collection campaign Engaged in tree plantation, river cleaning Carsem Environment Day 2021 - Sembang Sungai @ Sungai Meru in collaboration with Department of Environment (DOE), Perak, Malaysia. Laun
Slide 29: Health & safety
29 Health & safety COVID-19 VACCINATION FOR OUR EMPLOYEES AT CARSEM SUZHOU EMPLOYEE • Active fulfillment of our social responsibility – we organized vaccination & guidance for employees CARE • Aim is to ensure safety, and good health & wellbeing of our employees BUSINESS CONTINUITY PLAN • ~2,500 of
Slide 30: Health & safety
30 Health & safety COVID-19 VACCINATION AND RTK TESTING FOR OUR EMPLOYEES AT CARSEM IPOH • Active fulfillment of our social responsibility – we organized vaccination & guidance for EMPLOYEE employees CARE • Aim is to ensure safety, and good health & wellbeing of our employees • >5,000 of our employe
Slide 31: Health & safety
31 Health & safety ENSURING SAFE & HYGIENIC LIVING ENVIRONMENT FOR EMPLOYEES Safeguarding employees’ safety Strict compliance with Government SOPs Certificate of Hostel Satisfactory outcome of MITI’s periodic enforcement check Accommodation from Department of Labor Employee dormitory audit by Labor
Slide 32: Table of Content
32 TABLE OF CONTENT 1 INTRODUCTION 2 C O R P O R AT E O V E R V I E W 3 BUSINESS OVERVIEW 4 S U S TA I N A B I L I T Y 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 33: Macroeconomic Landscape
33 Macroeconomic Landscape MPI EXCELS IN A CHALLENGING MACRO ENVIRONMENT Covid, geopolitical uncertainties, materials’ price rise, delivery delays, Forex fluctuations, travel restrictions, manpower constraints, electricity rationing in China! Malaysian Pacific Industries Berhad
Slide 34: Industry Dynamics
34 Industry Dynamics SEMICONDUCTOR INDUSTRY IS DRIVEN BY LONG TERM TRENDS, ENABLING ROBUST TOPLINE GROWTH MPI REVENUE (US$ million) Capitalizing on favorable trends key to business growth Global commitments to combat climate change is driving the automotive segment innovation, growth and expansion
Slide 35: Growth Strategy
35 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 & • Investing in 5G testing, SiC, MEMS sensors, GaN geography segments • Advanced packaging – inorganic options for • Sharp sales pipeli
Slide 36: Sales – Revenue Composition
36 Sales – Revenue Composition GROWTH ACROSS APPLICATIONS, WITH AUTO & INDUSTRIAL SEGMENTS GAINING SHARE AUTOMOTIVE CONSUMER & COMMUNICATIONS • 5G and IoT are unlocking multitude of use • Automotive remains strategic focus cases – smart cities, healthcare, etc. • Long term growth is driven by • Semi
Slide 37: Sales – Customer Relations
37 Sales – Customer Relations CONTINUOUS INVESTMENT IN CUSTOMER RELATIONS; POTENTIAL FOR FURTHER EXPANSION IN US & EU Automotive Industrial Consumer NORTH AMERICA ASIA Driving applications Driving applications EUROPE S. KOREA Driving applications SUZHOU, CHINA JAPAN CARSEM TAIWAN IPOH, MALAYSIA PENA
Slide 38: Sales – Pipeline
38 Sales – Pipeline DESPITE EXTERNAL CHALLENGES, CARSEM’s PIPELINE IS GROWING STEADILY Built customer confidence and reliability by Competitive pricing strategy to increase market delivering within timelines despite Covid-19 share challenges NEW PROJECT INTRODUCTIONS (#) Advanced R&D Infrastructure
Slide 39: Sales – Competitive advantages
39 Sales – Competitive advantages UNREPLICABLE NO DEBT, QUALITY STANDARDS SUBSTANTIAL CASH & ADVANCED R&D INFRASTRUCTURE PROFITABLE OFFERINGS IN COMPANY GROWTH AREAS INVESTMENT IN 49 YEARS IN SERVICE AUTOMATION Carsem’s competitive advantages Malaysian Pacific Industries Berhad
Slide 40: Technology – Automotive Segment
40 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 41: Technology – Industrial Segment
41 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 42: Technology – Consumer/Communications Segment
42 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 43: Technology – Immediate Focus: SiC
43 Technology–Immediate Focus SiC - UNLOCKING RF & POWER APPLICATIONS New high thermal conductivity and high operating temperature materials (pressure & pressure-less Ag CARSEM Benefits of SiC over previous gen materials sintered paste, Cu nano paste) – via a dedicated I N N O VAT I O N T O Wider
Slide 44: Technology – Immediate Focus: GaN
44 Technology–Immediate Focus GaN – CATALYSING CHANGE IN POWER ELECTRONICS GaN is a wide bandgap material that is becoming Carsem R&D focuses on power essential in some applications where Silicon has hit management solutions across its physical limits as a power conversion platform the spectrum (low
Slide 45: Technology – Future Focus
45 Technology–Future Focus BUILDING/ ACQUIRING CAPABILITIES FOR TECHNOLOGY & VALUE CHAIN UPGRADE In-house NiPdAu MODULE/ SiP 3D Printing Design House Post Mold Plating • Development focus on • Evaluating 3D printing • Looking to acquire a • Development focus on Front End Module/ SIP, technology oppo
Slide 46: Technology – Carsem Technology Center
46 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 47: Quality & Productivity Focus
47 Quality & Productivity Focus INVESTING IN AUTOMATION & INDUSTRY4.0 TO ACHIEVE ZERO DEFECTS & HIGH PRODUCTIVITY GOALS End Game – Smart factory MPI CAPEX (RM million) Impact Examples of Automation initiatives e-Summary bin limit control – paperless 90% YoY growth Highly automated line and quality c
Slide 48: Quality & Productivity Focus
48 Quality & Productivity Focus CERTIFIED ON INDUSTRY’S LEADING PERFORMANCE PARAMETERS ESD Control ISO 14001:2015 Applicable to Design, Assembly, Testing Environmental Management System & Finishing of semiconductor implemented in compliance component IATF 16949:2016 Sony Green Partner Program Design
Slide 49: People – Caring for our Employees
49 People – Caring for our Employees HELPING COLLEAGUES IMPACTED BY COVID-19 Covid-19 response at workplace • Carsem employees banded together to raise RM10,000 in 3 weeks to help colleagues impacted by the ongoing pandemic • Carsem donated another RM10,000 to the fundraiser, in a show of solidarity
Slide 50: Awards and Recognitions
50 AWARDS AND RECOGNITIONS QUALITY & PEOPLE 2021 Best Crisis 2021 Best Employer Most amount of e-waste collected for a premise AND Earliest premise Management and Most potential, Most Creative collecting e-waste of 5 metric tons, within Perak Industries Leadership Suzhou City Department of Environme
Slide 51: Table of Content
51 TABLE OF CONTENT 1 INTRODUCTION 2 C O R P O R AT E O V E R V I E W 3 BUSINESS OVERVIEW 4 S U S TA I N A B I L I T Y 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 52: Financial highlights
52 Financial highlights Q1 FY22 SNAPSHOT REVENUE A new record in Q1 FY22 after surpassing the earlier all time high Revenue of Q4 FY21 by 9% in RM PATAMI Proving the cost prudence measures to be effective, PATAMI grew by 48% YoY & 9% against last quarter EPS Q1 FY22 EPS at 41.17sen Vs 37.85sen of Q4
Slide 53: Key financial data
53 Key financial data MPI GROUP RESULTS AT A GLANCE Q1 FY22 Q4 FY21 Q1 FY21 Q1 vs Q4 Q1 vs Q1 YTD FY22 YTD FY21 YoY RM mil RM mil RM mil % % RM mil RM mil % Revenue 584.5 537.3 440.6 9% 33% 584.5 440.6 33% PAT 95.9 89.5 65.8 7% 46% 95.9 65.8 46% PATAMI 81.7 75.1 55.3 9% 48% 81.7 55.3 48% EPS (sen) 4
Slide 54: Key financial data
54 Key financial data CONSISTENT GROWTH IN LAST 7 QUARTERS; ALL TIME HIGH REVENUE & PATAMI IN Q1 FY22 MPI SEQUENTIAL & CORRESPONDING QUARTER GROWTH (Revenue in US$ million, PATAMI in RM million) 33% YoY 44% YoY 39% YoY 48% YoY 237% YoY 53% YoY Covid-19 Covid -19 lockdown lockdown China M’sia • In ea
Slide 55: Cash
55 Cash MPI IS INCHING TOWARDS RM1 BILLION CASH WHILE CONTINUING ALL STRATEGIC INVESTMENTS MPI NET CASH (RM million) remained healthy with 90% higher CAPEX during Q1 FY22 vs. Q1 FY21 284 387 444 547 573 644 677 689 713 761 798 809 826 943 918 927 902 914 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Sep-18 Dec
Slide 56: Investments
56 Investments CONTINUING STRATEGIC INVESTMENTS FOCUSING ON SENSORS, 5G TESTING & SiC/ GaN • Installing New Machines for Capacity Expansion SZ CARSEM SITES • Hire more people across the globe to support business 5G TESTING operations & sales • Invest in Research & Development to deliver latest techn
Slide 57: Investments
57 Investments CONSISTENT TECHNOLOGY INVESTMENTS TO REALIZE BUSINESS ASPIRATIONS MPI EBITDA VS CAPEX (RM MIL) SOME KEY INVESTMENT AREAS DURING Q1 FY22 Power Management MLP (QFN/ DFN) ramp up, CuClip Power Management for servers MEMS IMU (LGA) ramp up Power Management: Battery charge and timing MEMS,
Slide 58: Statement of Profit or Loss
58 Statement of Profit or Loss Q1FY22 Q1FY21 Changes RM '000 RM '000 % Revenue 584,525 440,585 33% Cost of sales (453,125) (352,595) 29% Gross profit 131,400 87,990 49% Operating expenses (28,158) (15,987) 76% Other operating income 10,271 1,116 820% Profit from operation 113,513 73,119 55% Interest
Slide 59: Statement of Financial Position
59 Statement of Financial Position 30/09/2021 30/06/2021 RM'000 RM'000 Non-current assets Property, plant and equipment 1,148,860 1,051,200 Right-of-use assets 37,664 38,844 Investment properties 28,559 28,790 Investments 46 46 1,215,129 1,118,880 Current Assets Inventories 180,433 170,226 Trade and
Slide 60: Statement of Financial Position
60 Statement of Financial Position 30/09/2021 30/06/2021 RM'000 RM'000 Equity Share Capital 352,373 352,373 Reserves 1,603,615 1,509,133 Treasury shares (163,816) (163,816) 1,792,172 1,697,690 Non-controlling interests 303,394 287,045 2,095,566 1,984,735 Non-current liabilities Borrowings (unsecured
Slide 61: Summary
61 Summary A RECORD Q1 FY22 MPI showed an upward trend for last 7 consecutive quarters, revenue up by 33% and PATAMI up by 48% in Q1 FY22 YoY Carsem’s sales pipeline is strong & intact despite the ongoing challenges across the world Carsem continues to invest in SiC & GaN technology, 5G Testing & ME
Slide 62: Thank You
62 Thank You Malaysian Pacific Industries Berhad
Malaysian Pacific Industries Berhad — Q1 FY2022 Earnings Presentation on 6ix