Malaysian Pacific Industries Bhd. · MYX:MPI
Malaysian Pacific Industries Bhd — Q2 FY2024 Earnings Presentation
59 slides from Malaysian Pacific Industries Bhd's earnings presentation, February 2024
Slide 1: Malaysian Pacific Industries Berhad Investor Presentation Q2 FY2024
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 2 F Y 2 0 2 4 ( O c t - D e c ‘ 2 3 ) 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
1 3 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 4: Business overview
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 is an operating company within Malay
Slide 5: Financial performance snapshot
5 Financial performance snapshot STRONG FUNDAMENTALS CREATE BUSINESS RESILIENCE IN TOUGH TIMES Revenue (RM million) PATAMI growth (%) 523 95% Q2 FY24 vs. Q1 FY24 Net cash (RM million) EBITDA (%) 936 26% as of Q2 FY24 Q2 FY24 Note: FY24 = July 2023 – June 2024 Malaysian Pacific Industries Berhad
Slide 6: Table of Content
1 6 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 7: Journey & capabilities
7 Our journey 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 X3 for Mobile Market Sensors Sensors for Automotive For RF & powe
Slide 8: Board of Directors
8 Board of Directors YBHG DATUK KWEK LENG SAN MANUEL ZARAUZA MS FOO AI LI 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 various • Appointe
Slide 9: Management team
9 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 PO LAU INDERJEET SINGH Jay MURALITHARAN RAYMOND SHI CK LE
Slide 10: Table of Content
1 10 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 11: Supply chain & business model
11 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 (ba
Slide 12: Wide portfolio
12 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 Management Consumer & MEMS & Sensors Copper Clip Flip Chip Suppressor (TVS) (SiC, GaN, GaN on C
Slide 13: Geographic footprint
13 Geographic footprint BROAD GEOGRAPHIC PRESENCE, SERVING A GLOBAL CUSTOMER BASE CARSEM NORTH AMERICA CARSEM S. KOREA CARSEM SUZHOU, CHINA CARSEM JAPAN CARSEM TAIWAN CARSEM IPOH, MALAYSIA S-SITE, M-SITE LEGEND Manufacturing plants & Sales offices Sales offices Malaysian Pacific Industries Berhad
Slide 14: Production facilities
14 Production facilities CARSEM MANUFACTURING SITES & BUSINESS UNITS Carsem (M-Site, Ipoh) • Floor Space: 436K sq. ft. (40,500 sq. m.) SOIC MICRO MSU • Workforce: 2,170 employees Automotive & Consumer • GM: Muralitharan Carsem (S-Site, Ipoh) • Floor Space: 640K sq. ft. (60,000 sq. m.) PMG MLP TEST •
Slide 15: Table of Content
1 15 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 16: Sustainability performance
16 Sustainability performance MPI IS IN FTSE4GOOD BURSA MALAYSIA INDEX FY23 performance snapshot Malaysian Pacific Industries Berhad
Slide 17: Sustainability at MPI
17 Sustainability at MPI OUR APPROACH IS RESPONSIBLE & RESPONSIVE, DRIVEN BY 3 THEMES Malaysian Pacific Industries Berhad
Slide 18: UN Sustainable Development Goals
18 UN Sustainable Development Goals 6 PRIORITY SDGs MOST ALIGNED WITH OUR BUSINESS Safeguarding employee health & safety is a MPI makes a significant contribution top priority for MPI towards employment and economic growth MPI actively focuses on innovation, As a global employer, MPI strives to ensu
Slide 19: Environment
19 Environment River monitoring activities at Sungai Meru Boundary noise monitoring to meet Guidelines of EQA 1974 Green day campaign every 1st Friday of the month; No plastic bag every Friday Malaysian Pacific Industries Berhad
Slide 20: Training & education
20 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES Online & offline training – PMP training, Online Meeting software training, IATF16949 quality tools training, DOE, Techknowledge training, FA Reliability Applications & Capability Training, Factory 5S auditor t
Slide 21: Training & education
21 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES Online & offline training – Program Advokasi Restart dan Kerjaya Myfuturejobs, Enforcement of Amended Employment Act Training Core Competency – Six Sigma Yellow Belt (Root Cause Analysis ), IATF Core Tools Audi
Slide 22: Employee relations
22 Employee relations Celebrations - 50th anniversary of Carsem Malaysia Malaysian Pacific Industries Berhad
Slide 23: Employee relations
23 Employee relations Program: Academic Excellence Academic Excellence Ceremony organized for the children of our employees Malaysian Pacific Industries Berhad
Slide 24: Employee relations
24 Employee relations Sports C.E.R.I.A Sports 2023 HLMG Sports Malaysian Pacific Industries Berhad
Slide 25: Recruitment
25 Recruitment Successfully organized an open interview campaign Program: Karnival Kerjaya & TVET Perak Sejahtera Malaysian Pacific Industries Berhad
Slide 26: Anti-bribery & anti-corruption
26 Anti-bribery & anti-corruption LEADING ETHICALLY & TRANSPARENTLY Certification for implementing Anti-Bribery Management Systems, complying with ISO 37001:2016. Operating Certifying authority Status subsidiaries Carsem M SIRIM QAS International Sdn. Bhd. Certified Shanghai Ingeer Certification Car
Slide 27: Table of Content
1 27 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 28: Industry dynamics
28 Industry dynamics FEW SIGNS OF RECOVERY AMIDST PERSISTING UNCERTAINTY, LONG-TERM OUTLOOK REMAINS STRONG Market uncertainty remains, despite PC & Smartphone market ending their 7 consecutive quarters of decline Worldwide EV car sales up by 47% annually - Global EV sales in Dec ‘23 were record high
Slide 29: Industry dynamics
29 Industry dynamics AUTOMOTIVE & INDUSTRIAL SEGMENTS HAVE A BRIGHT FUTURE Semiconductor market expected to reach $1 trillion by 2030 Carsem is strategically positioned in the growing segments Automotive (SiC & GaN) S Green Energy & Industrial Automotive M Artificial Intelligence SZ 5G/6G Connectivi
Slide 30: Growth strategy
30 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 & geography • Investing in SiC, MEMS sensors, GaN, 5G testing segments • Advanced packaging – inorganic options for • Sharp sales pipeli
Slide 31: Sales – SiC and GaN packaging business
31 Sales – SiC and GaN packaging business SHARPENING STRATEGIC FOCUS – CARSEM S-SITE HAS A NEW BUSINESS UNIT FOCUSING ON HIGH POWER TECHNOLOGY GaN powered Artificial Intelligence (AI) New Business Unit for SiC & GaN established in Q2 FY24 SiC & GaN projects won (USD Mil) Source: www.researchandmarke
Slide 32: Sales – Expansion of automotive sensors
32 Sales – Expansion of automotive sensors The future for cars with intuitive traffic information & real time monitoring is not possible without over 100 highly sensitive sensors & faster data transfer Transformation to advanced Working with major automotive automotive sensor packages customers for
Slide 33: Sales – Tapping into auto segment growth in China
33 Sales – Tapping into auto segment growth in China Automotive segment growth in China is expected to be tremendous and all the cars would need high power & complete connectivity CSX fully automated factory for automotive packaging Strong future for Carsem in China Chinese Car Brands ➢ Automotive i
Slide 34: Sales – Capturing opportunities
34 Sales – Capturing opportunities Major companies from China are building samples with Carsem Ipoh to supply to European & American customers Undergoing package EUROPE qualification & Advanced reliability testing. Packaging & CHINA Testing IPOH High volume to Solutions start in 2025 NORTH AMERICA M
Slide 35: Sales
35 Sales FULLY GEARED UP TO CAPITALIZE AS SOON AS MARKET BOUNCES BACK Confident about our future growth THE RIGHT PORTFOLIO POSITIONING COMPETITIVE PRICING STRATEGY CONTINUOUS INVESTMENT IN GROWTH AREAS ADEQUATE CAPACITY TO ABSORB NEW BUSINESS ANCHOR CUSTOMERS & STRONG PIPELINE ROBUST CASH POSITION
Slide 36: Sales – Revenue composition
36 Sales – Revenue composition AUTO REMAINS STRATEGIC – GROWN FROM ~29% IN FY18 TO 43% OF OUR SALES NOW AUTOMOTIVE CONSUMER & COMMUNICATIONS • 5G and IoT are unlocking multitude of use cases – smart cities, healthcare, etc. • Long term growth is driven by electrification, ADAS/ AD, safety, and conne
Slide 37: Sales – Pipeline
37 Sales – Pipeline HEALTHY PIPELINE BUT RECESSIONARY RISKS HAVE PUSHED PROJECTS TO FUTURE QUARTERS NEW PROJECT INTRODUCTIONS (#) • Carsem has a healthy order book with major projects coming from the Automotive segment • Healthy pipeline development on the enabling technologies of future, i.e., SiC,
Slide 38: Technology – Automotive segment
38 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 39: Technology – Industrial segment
39 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 40: Technology – Consumer/communications segment
40 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 41: Technology – Invention patent
41 Technology – Invention patent GRANT OF IP030 - DFN SIDE WALL PLATING Invention patent description: a package design method to achieve side wall plating, a process method to achieve “Zero Burr”. Carsem Suzhou is the market leader in mainland China for side wall plating Patent validity period: 20 y
Slide 42: Technology – Immediate focus: SiC
42 Technology–Immediate focus SiC - UNLOCKING RF & POWER APPLICATIONS CARSEM ADVANTAGE ✓ Already working with the No.1 SiC wafer supplier in the world Benefits of SiC over ✓ Optimized packaging & previous gen materials performance for better results SiC technology for power has ✓Wider bandgap, ✓ Ong
Slide 43: Technology – Immediate focus: GaN for RF
43 Technology – Immediate focus GaN FOR RADIO FREQUENCY (RF) APPLICATIONS – 5G BASE STATIONS Significant growth is projected for front end modules (FEM) in the next 8 years ✓ Carsem spent US$ 12Mil for 5G RF FEM. Carsem Suzhou already has experience in FEM for 4G/5G, include DiFEM Module/DiFEM Modul
Slide 44: Technology – Future focus: 5G testing
44 Technology – Future focus 5G TESTING Carsem Suzhou has been working extensively on 5G test technology 5G – Next Generation of mobile broadband development ✓ CSZ is working with 10+ customers for 5G device testing ✓ Completed 5G and Wifi7 RF test capability development, up to WiFi7 7.125GHz ✓ Cont
Slide 45: Technology – Future focus: Modules
45 Technology – Future focus MODULES Entirely new SMT Line 3D X - Ray C - Mold CARSEM SUZHOU ✓ Invested in dedicated machines for FEM module line under production ✓ Invest in dedicated machine and skilled manpower to extend FEM line capacity ✓ Attacking high end customer FEM product, under engineeri
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 e-Office - Equipment Visual Management In house system to consolidate all individual systems into one centralized EVM (Equipment Visual Management) system EVM is a ‘one click’ enabler • access to the manufacturing data and effective data … analysis • remote control &
Slide 48: Quality & productivity focus
48 Quality & productivity focus e-office Smart Business (e-office, Paperless and PDA system development) Carsem SZ is focusing on e-Office and paperless system development and implementation Current Situation e-Office and paperless system Malaysian Pacific Industries Berhad
Slide 49: Awards and recognitions
49 Awards and recognitions QUALITY, PEOPLE and ESG BEST SUPPLIER AWARDS received MPI won this award for the second successive year The Edge - FTSE ESG award 2023 The Edge Billion Ringgit Club & Corporate Awards 2023 MAXSCEND WILLSEMI Malaysian Pacific Industries Berhad
Slide 50: Table of Content
1 50 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 51: Financial highlights
51 Financial highlights Q2 FY24 SNAPSHOT REVENUE Despite overall market slowdown, Q2 FY24 has grown revenue by 2% against Q1 FY24 PATAMI Optimized productivity & cost prudence measures led to PATAMI growth by 95% on revenue increase of just 2% Vs Q1 CASH Even with a decline in YoY sales, MPI continu
Slide 52: Key financials
52 Key financials MPI GROUP RESULTS AT A GLANCE Q2 FY24 Q1 FY24 Q2 FY23 Q2 vs Q1 Q2 vs Q2 YTD FY24 YTD FY23 YoY RM mil RM mil RM mil % % RM mil RM mil % Revenue 522.8 513.2 526.4 2% -1% 1,036.0 1090.4 -5% PAT 47.5 30.0 31.8 58% 49% 77.6 99.5 -22% PATAMI 32.2 16.5 18.3 95% 75% 48.7 71.0 -31% EPS (sen
Slide 53: Investments
53 Investments CONTINUING STRATEGIC INVESTMENTS FOCUSING ON SENSORS, 5G TESTING & SiC/ GaN TECHNOLOGIES MPI CAPEX (RM million) • Hire domain specific relevant people across the globe to support business operations & sales • Investing in research & development to deliver latest technology solutions t
Slide 54: Cash
54 Cash STRONG NET CASH POSITION MEANS STABILITY IN UNCERTAIN TIMES NET CASH (RM million) position remained healthy 284 387 444 547 573 644 677 689 713 761 798 809 826 943 918 927 902 914 890 849 772 840 816 813 801 872 936 Jun- Dec- Jun- Dec- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- M
Slide 55: Statement of profit or loss
55 Statement of profit or loss Q2FY24 Q2FY23 Changes RM '000 RM '000 % Revenue 522,751 526,419 -1% Cost of sales (455,215) (455,645) -0.1% Gross profit 67,536 70,774 -5% Operating expenses (30,294) (33,128) -9% Other operating income/(expenses) 6,225 (4,181) -249% Profit from operation 43,467 33,465
Slide 56: Statement of financial position
56 Statement of financial position 31/12/2023 30/06/2023 RM'000 RM'000 Non-current assets Property, plant and equipment 1,325,865 1,416,233 Right-of-use assets 44,564 47,298 Investment properties 26,611 27,026 Investments 46 46 1,397,086 1,490,603 Current Assets Inventories 138,528 149,537 Trade and
Slide 57: Statement of financial position
57 Statement of financial position 31/12/2023 30/06/2023 RM'000 RM'000 Equity Share Capital 352,373 352,373 Reserves 1,881,747 1,826,261 Treasury shares (163,816) (163,816) 2,070,304 2,014,818 Non-controlling interests 365,191 345,570 2,435,495 2,360,388 Non-current liabilities Borrowings (unsecured
Slide 58: Summary
58 Summary MPI revenue grew sequentially by 2% QoQ PATAMI improved by nearly 100%, proving the implemented cost prudence measures to be effective MPI has a healthy order book for future quarters despite the ongoing market uncertainty Carsem continues to invest in new technologies & machines to grab
Slide 59: Thank You
59 Thank You Malaysian Pacific Industries Berhad
Malaysian Pacific Industries Berhad — Q2 FY2024 Earnings Presentation on 6ix