Nanofilm Technologies International Ltd. · SGX:MZH
Nanofilm Technologies International — FY2023 Earnings Presentation
28 slides from Nanofilm Technologies International's earnings presentation, Feb 26, 2024
Slide 1: Nanofilm Technologies International FY2023 Results Announcement
NANOFILM TECHNOLOGIES INTERNATIONAL FY2023 Results Announcement 26 February 2024
Slide 2: Important Notice
IMPORTANT NOTICE This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Nanofilm Technologies International Limited (the “Company”) in Singapore or any other jurisdict
Slide 3: Management Panel
Management Panel Mr Gary Ho Mr Kay Lim Mr Gian Yi-Hsen Mr Ian Howe Executive Director and Group Chief Financial Officer Group Chief Strategy Officer and Group Chief Commercial Officer Group Chief Executive Officer Chief Executive Officer, Sydrogen 2 | CONFIDENTIAL
Slide 4: Agenda
Agenda ▪ Overview ▪ Financial Highlights ▪ ESG Update ▪ Outlook ▪ Q&A
Slide 5: Overview
1 | Overview Mr Gary Ho Executive Director and Group Chief Executive Officer
Slide 6: FY2023 At a Glance: 2H2023 saw a recovery in business performance
FY2023 At a Glance: 2H2023 saw a recovery in business performance Pathway to Revenue Recovery and on-going cost optimisation gaining momentum 1% 1% 155m 10% 9% 9% FY2023 11% 2H2023 S$ as at 31 Dec 2023 S$ 177m S$ 104m TOTAL CASH BALANCE -25% YoY -18% YoY 0.33₵ 80% 79% AMBU NFBU IEBU Sydrogen AMBU NF
Slide 7: Business Update
Business Update $ Pathway to Revenue Recovery Started in 2H2023 ▪ 2023 Group revenue grew 42% HoH. Rebound in Q3 business activities and trend continued into 4Q, led by 3C recovery from improving inventory rebalancing and new end-customers’ product launches ▪ Consumer business narrowed its sales dec
Slide 8: Financial Highlights
2 | Financial Highlights Mr Kay Lim Group Chief Financial Officer
Slide 9: FY2023 Revenue Performance
FY2023 Revenue Performance Upward trend in revenue recovery into 2H2023 ▪ Group revenue declined 25% YoY to S$177m, with narrowing 30 0.0 (in S$m) 2H YoY decline compared to 1H, led by recovery in Consumer 25 0.0 237.4 within AMBU and NFBU. 2023 HoH revenue grew 42% 126.1 177.0 REVENUE 20 0.0 (-16%
Slide 10: Core Expenses Review
Core Expenses Review Continuous cost structure improvement & higher investment in sales efforts (in S$m) ▪ Improving operational performance with recovery in GPM in 2H2023 to 40.6% 25 0.0 49.5% 46.9% 60 .0% 37.0% 50 .0% compared to 1H of 32.0%: COS & GPM 20 0.0 40 .0% 124.5 126.0 30 .0% ▪ FY2023 GPM
Slide 11: Investment in Technology & Innovation
Investment in Technology & Innovation Higher portion of R&D and Engineering activities moving closer to commercialisation R&D and Engineering Expenses (1) (in S$m) (2) 40 .0 (2) 9.0% 7.7% 10 .0% (2) 7.1% 31 35 .0 30 .0 29 5.0 % 15.5 25 .0 10.6 20 .0 19 1.8 0.0 % 15 .0 17.4 18.4 10 .0 15.9 -5.0% 5.0
Slide 12: PATMI & EBITDA Review
PATMI & EBITDA Review Higher depreciation and amortisation impacted PATMI (in S$m) 90 .0 25.2% 30 .0% 80 .0 18.5% 62.2 20 .0% 70 .0 60 .0 10 .0% 43.8 1.8% PATMI 50 .0 40 .0 44.3 0.0 % (+13% YoY) 25.0 30 .0 (-44% YoY) ▪ 2H2023 recovered with a PATMI of S$10.8m, led by a 10.8 rebound in revenues and a
Slide 13: PPE Update
PPE Update Investments in strategic priorities, enhancing quality asset base to drive future growth 18 0 (in S$m) 16 0 PPE Changes in FY2023 140 ▪ PPE investments, excluding leases commitment, for 14 0 FY2023 were S$49m related to additions to property, 12 plant and equipment 12 0 ▪ Major PPE invest
Slide 14: Positive Operating Cash Flow
Positive Operating Cash Flow Business resilience with strong positive operating cash flow despite challenging market Positive operating cash flow Total cash balance as at 31 Dec 2023 (in S$m) (in S$m) OCF 25 0 after WC, 72 interest & taxes 49 20 0 15 0 17 10 0 221 155 39 50 79 1 0 Cash (prior to PPE
Slide 15: ESG Update
3 | ESG Update Mr Gian Yi-Hsen Group Chief Strategy Officer and Chief Executive Officer, Sydrogen
Slide 16: Sustainable Innovation: NTI-NTU Corporate Laboratory
Sustainable Innovation: NTI-NTU Corporate Laboratory Collaboration between Nanofilm & NTU – Launched 01 Nov 2023 In alignment with Singapore’s RIE 2025, supported by Enterprise Singapore S$66m Funding 4 Programs Research Pillars 10 Projects In 5 Years Coating 4 Research Pillars: Equipment Advanced M
Slide 17: Investing in partnerships and building the clean hydrogen ecosystem
Investing in partnerships and building the clean hydrogen ecosystem Elevating internal product capabilities Coatings qualified for mass Commercialising fuel cell research in Driving internal product development production; strategic supply of precious metal-free catalyst & innovation across value ch
Slide 18: Outlook
4 | Outlook Mr Gary Ho & Mr Ian Howe Executive Director and Group Chief Commercial Officer Group Chief Executive Officer
Slide 19: Business Outlook: AMBU
Business Outlook: AMBU Accelerating Growth Through Strategic Expansions in Consumer and Industrial Sectors CONSUMER: ▪ Geographical expansion: Our strategic global footprint aligned with the China plus one strategy of our customers positions us favourably ▪ Pipeline visibility enhanced by existing p
Slide 20: Business Outlook: IEBU
Business Outlook: IEBU Business cycle is longer and requires strategic patience before next order wave ▪ One product line reaching market saturation which resulted in fewer growth opportunities. Major upgrade to this product line is renewing customers’ interests ▪ Sales opportunities are still hampe
Slide 21: Business Outlook: NFBU
Business Outlook: NFBU An emerging player in nanofabrication for next-Gen consumer devices ▪ The outlook for NFBU is positive, primarily driven by its crucial role in mass production projects for micro-lens array (MLA) lenses in consumer wearables and Fresnel lenses for smartphones ▪ As consumer ele
Slide 22: Business Outlook: Sydrogen
Business Outlook: Sydrogen Advances in China with Mass BPP Production and Unveils New Fuel Cell Innovations in 2024 ▪ Chinese market for fuel cell and hydrogen related technology recovering well with China’s Long Term Hydrogen Plan ▪ Sydrogen has commenced quantity production of BPP for key automoti
Slide 23: FY2024 Overall Outlook
FY2024 Overall Outlook MARKET ENVIRONMENT ▪ Uncertain market landscape presenting both challenges and opportunities for strategic adaptation KEY GROWTH DRIVERS ▪ Consumer: Pipeline visibility enhanced by existing projects slated for mass production and new projects advancing at the NPI stages with p
Slide 24: Q&A
5 | Q&A
Slide 25: Thank You
THANK YOU
Slide 26: Appendices
) Wu O = Q = Ww ae ae <
Slide 27: FY2023 BU Review: Soft Consumer end-markets; rebound in 2H2023
FY2023 BU Review: Soft Consumer end-markets (3C and NFBU); however, saw a rebound in 2H2023 Good customer traction in the AMBU Industrial sub-segments and in Sydrogen ▪ Consumer (Communication, Wearables & ▪ Consumer (Communication, Wearables & NFBU Accessories and Computer): AMBU Accessories and Co
Slide 28: Strategic Focus Areas: Progress & Updates
Strategic Focus Areas: Progress & Updates Fully focused on improving performance by pursuing opportunities to expand product offering and diversifying customer base New Segments & Joint Ventures R&D and STRATEGIC Geographical $ Product Engineering Product / M&A AREAS Expansion Diversification Develo
Nanofilm Technologies International — FY2023 Earnings Presentation on 6ix