Micro-Mechanics (Holdings) Ltd · SGX:5DD
Micro-Mechanics (Holdings) — Shareholder Meeting (October 2020)
22 slides from Micro-Mechanics (Holdings)'s shareholder meeting presentation, Oct 30, 2020
Slide 1: Annual General Meeting FY2020
Annual General Meeting FY2020 30 October 2020
Slide 2: Business & Industry
perfect parts and tools, on time, every time Business & Industry Chris Borch, CEO Low Ming Wah, COO Micro-Mechanics AGM FY2020 Presentation 2
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-fabrication and Our Mission is… assembly processes of the semiconductor industry Perfect Parts and Tools On • Serve a worldwide base of custom
Slide 4: Business Model
Business Model HIGH PRECISION, PROCESS-CRITICAL Parts and Tools for Semiconductor Industry Proprietary consumable tools used in Contract manufacturing of precision the assembly and testing of parts used in process-critical semiconductors, such as die-attach applications for the wafer fabrication PRO
Slide 5: Semiconductor Industry Review
Semiconductor Industry Review Global Monthly Chip Sales WSTS Semiconductor Sales Forecast (US$ B) YOY Growth (US$ B) 500.0 45.0 30% 25% 480.0 40.0 20% 460.0 35.0 6.2% 15% 440.0 30.0 3.3% 10% 420.0 25.0 5% 400.0 20.0 0% 380.0 15.0 -5% 360.0 10.0 -10% 340.0 5.0 -15% 320.0 0.0 -20% 300.0 Jan-15 Jul-17
Slide 6: Semiconductor Industry Review
Semiconductor Industry Review Three-month average of worldwide billings of North American equipment manufacturers Global Semiconductor Equipment Sales Forecast YOY (US$ B) Growth 3.0 80% 2.5 60% 2.0 40% 1.5 20% 1.0 0% 0.5 -20% 0.0 -40% Jan-17 Apr-17 Jul-17 Jan-18 Apr-18 Jul-18 Jan-19 Apr-19 Jul-19 J
Slide 7: Impact of COVID-19 on Operations
Impact of COVID-19 on Operations Temporary closures and reduced operating level of our factories were in compliance with government measures to contain Covid-19, which also led to travel limitations for workforce and supply chain disruptions Year 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Singapor
Slide 8: FY2020 Corporate Highlights
FY2020 Corporate Highlights REVENUE GROWTH S$64.2M 6.4% MAINTAINED GROSS PROFIT MARGIN 53.4% RAISED DIVIDENDS BY 20% TO 12.0 cents GROWTH IN NET PROFIT PER SHARE S$14.7M 13.1% Micro-Mechanics AGM FY2020 Presentation 8
Slide 9: FY2020 Corporate Highlights
FY2020 Corporate Highlights In the long term, our view for the future of the semiconductor industry remains unchanged, if not enhanced. We continue to believe the industry is poised for a prolonged period of solid growth BACK TO BETTER It remains difficult to accurately predict the business outlook
Slide 10: Strong, Flexible and Resilient
Strong, Flexible and Resilient To make it easier to adjust to changes in circumstances and ensure business continuity, we have put in place goals, structures and processes. Some of our key initiatives are: Maintain Healthy GP Margin - Focus on the value we bring to customers - To be a leading Next G
Slide 11: Commitment to Governance
Commitment to Governance Singapore Governance and Transparency Index 2020 Micro-Mechanics ranked among the Top 20 companies Since listing in 2003, we have received over 30 awards in recognition of our high standards of corporate governance, quality of disclosure, transparency and investor relations.
Slide 12: Financial Review
perfect parts and tools, on time, every time Financial Review Chow Kam Wing, CFO Micro-Mechanics AGM FY2020 Presentation 12
Slide 13: FY2020 in Review
FY2020 in Review FY2020 P&L Overview (S$ million) 64.2 K E Y R AT I O S & S TAT I S T I C S REVENUE GROWTH 6.4% GROSS PROFIT GROWTH 6.0% 29.9 PBT GROWTH 11.8% 34.3 1.2 NET PROFIT GROWTH 13.1% 16.4 GROSS PROFIT MARGIN 53.4% 19.1 4.4 14.7 NET PROFIT MARGIN 22.8% EARNINGS PER SHARE 10.54 cents 0 DIVIDE
Slide 14: Dividend Performance
Dividend Performance HIGHER TOTAL DIVIDENDS OF 12 CENTS PER SHARE FOR FY2020 Total dividend payout since listing – 85.9 CENTS per share DIVIDEND PER SHARE (CENTS) 12.0 10.0 10.0 8.0 6.0 5.0 5.0 5.0 3.5 3.0 3.0 3.0 3.0 3.0 Special dividend 2.4 2.0 0.8 1.2 Final dividend Interim dividend DIVIDEND PAYO
Slide 15: Group Revenue
Group Revenue YOY GROWTH IN QUARTERLY REVENUE SINCE 2Q20 Group Revenue (S$ mil) 80 70 65.1 64.2 60.3 60 57.2 15.7 51.3 16.4 13.9 50 15.4 FY2020 REVENUE 6.4% 13.0 40 16.1 16.2 • Reflects the semiconductor industry’s 14.4 resilience amid the COVID-19 pandemic 14.2 12.5 30 15.6 15.2 1Q21 REVENUE 18.3%
Slide 16: Group Revenue
Group Revenue DIVERSIFIED REVENUE STREAMS Sales Breakdown for FY2020 Sales Breakdown for 1Q21 Japan, 2% Japan, 2% Taiwan, 9% Europe, 3% Taiwan, 7% Europe, 4% Rest of world, Rest of world, 1% USA, 20% 1% USA, 20% Singapore, Singapore, 9% 11% Philippines, 9% Philippines, Malaysia, 15% Malaysia, 15% 9%
Slide 17: Gross Profit Margin
Gross Profit Margin Gross Margin GROSS PROFIT MARGIN REMAINED ABOVE 50% 56.9% 57.4% 57.0% 53.7% 53.4% 53.4% 53.9% 54.5% 54.8% 52.0% FY2016 FY2017 FY2018 FY2019 FY2020 1Q20 2Q20 3Q20 4Q20 1Q21 Micro-Mechanics AGM FY2020 Presentation 17
Slide 18: Profitability
Profitability MAINTAINED TIGHT REIN ON OPERATING EXPENSES Net Profit After Tax (S$ mil) Net Profit Margin Operating Expenses / Revenue 25 30% 25.8% 26.3% 25.6% 23.2% 22.8% 25% 20 21.5% 1Q21 21.9% 17.1 FY2020 23.7% 14.8 14.7 20% 15 4.0 12.9 FY2019 25.4% 11.9 4.6 3.9 15% 4.1 2.7 FY2018 23.4% 10 2.9 3.
Slide 19: Cash Flow
Cash Flow CASH-FLOW GENERATIVE OPERATIONS Track record of healthy net cash (S$ mil) from operating activities (S$ mil) CAPEX 24 24 22.4 22 22 20 19.3 20 18.1 18.8 18 18 16.3 16 16 14 14 12.1 12 12 10 10 8 7.2 8 6 6 5.1 4.1 4 4 3.4 3.7 2 2 0 2.3 0 FY2016 FY2017 FY2018 FY2019 FY2020 1Q21 FY2016 FY2017
Slide 20: Balance Sheet
Balance Sheet 30 September 2020 30 June 2020 Cash Cash and cash equivalents# S$25.5M S$20.8M Gearing Total borrowings Nil Nil Trade Receivables Trade Receivables S$12.1M S$11.8M (Outstanding > 90days) / (Total 0.09% 0.0% trade receivables) Bad debt expense Nil (1Q21) Nil (FY20) Inventory Inventory S
Slide 21: 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 22: Micro-Mechanics (Holdings) Ltd. Investor Relations Contact
Micro-Mechanics (Holdings) Ltd. INVESTOR RELATIONS CONTACT 31 Kaki Bukit Place Octant Consulting Eunos Techpark Tel (65) 6296 3583 Singapore 416209 herman@octant.com.sg / www.micro-mechanics.com lisa@octant.com.sg
Micro-Mechanics (Holdings) — Shareholder Meeting (October 2020) on 6ix