QES Group Bhd · MYX:QES
QES Group Bhd — Q3 2021 Earnings Presentation
38 slides from QES Group Bhd's earnings presentation, Nov 19, 2021
Slide 1: QES Investor Briefing Q3-2021
QES INVESTOR BRIEFING Q3-2021 (19 November 2021) Assuring you our best, always in collaboration with © 2021 QES Group Berhad. All rights reserved.
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by QES Group Berhad and is preliminary in nature and solely for information and discussion purposes and must not be relied upon for any other purpose. The “Presentation” that follows shall mean and include the slides that follow, the oral presentation o
Slide 3: Company Overview - Corporate Structure
Company Overview - Corporate Structure DISTRIBUTION DIVISION MANUFACTURING DIVISION 100% 100% 100% 100% QES Intra Pacific QES (Asia-Pacific) QS Instruments QES Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Manufacturing Sdn. Bhd. 100% 87.7% QES (Thailand) Co., Ltd. QES Technology Philippines, Inc 100% 70% 30% 82.5%
Slide 4: Company Overview - Corporate Milestones
Company Overview- Corporate Milestones • Official launch of SPECTRO SEA • Diversification into Centre of business of: Excellence. a) semiconductor test and • Implementation of assembly; Business Fulfilment • QES was founded b) semiconductor System within QES in October 1991 by wafer fabrication; Gro
Slide 5: Company Overview - Organization Structure
Company Overview - Organization Structure Managing Director/President Chew Ne Weng Executive Director Liew Soo Keang Human Resource Manufacturing & Finance & & Admin R&D Treasury General Manager General Manager Vice President Inspection, Test & Yeoh Cheong Yeow Chin Guat Eem Lim Chee Keong Measureme
Slide 6: Business Overview - Business Segments
Business Overview - Business Segments Distribution Manufacturing Semiconductor Semiconductor Inspection, Test Materials & Analytical Inspection & Automated & Measurement Engineering Instruments Measuring Handling Equipment Solutions Equipment Equipment © 2021 QES Group Berhad. All rights reserved.
Slide 7: Business Overview - Distribution Division
Business Overview - Distribution Division Inspection, Test & Measurement Materials Engineering Solutions Application • Inspection for flaws • Consumable materials used in the • Sub systems to process toxic gas • Test and analyse composition of semiconductor industry in the fabrication process materi
Slide 8: Business Overview - Manufacturing Division (Semiconductor Equipment)
Business Overview - Manufacturing Division (Semiconductor Equipment) Semiconductor Inspection & Measurement Automated Handling Systems • Application Automated Inspection Equipment • Automated Handling Equipment (Semiconductor) • Semi-Automated Inspection Equipment • Automated Inspection Equipment •
Slide 9: Business Overview - Semiconductor Equipment Line Up
Business Overview - Semiconductor Equipment Line Up Manufacturing Division - Equipment for Semiconductor Processes Automated 1st Optical Chapman Wafer 2nd Optical Semi- Post Die Attach 3rd Optical Semi- Wafer Sorters Semi-Auto Metrology (AMS Auto Inspection Semi-Auto Auto Inspection Post Mold Panel
Slide 10: Business Overview - Manufacturing Division (IR4.0 & Smart Manufacturing)
Business Overview - Manufacturing Division (IR4.0 & Smart Manufacturing) IR4.0 and Smart Manufacturing Solutions Automated Vision Software • Post Wire Bonding Application • Smart Vending Solutions • Post Die Attach • • Automated Smart Inspection Equipment Security Solutions • Wafer Inspection and Po
Slide 11: Business Overview - IR4.0 and Smart Manufacturing Solutions
Business Overview - IR4.0 and Smart Manufacturing Solutions SMART VENDING SOLUTIONS INTEGRATED WAREHOUSE • Real-Time Database MANAGEMENT SOLUTIONS • Requirement Personalized to • RFID Technology Employees • Fully end-to-end integration • Automated Issuance from Receiving to Issuance • PPE Integrity
Slide 12: Business Overview - Sector & Product Diversity
Business Overview -Sector & Product Diversity Manufacturing Diversified into 3 core sectors Core Business Counter cyclical Distribution Spare parts and service provide strong recurring Spare Parts and Service revenue Sustainable revenue Electrical & growth Semiconductor Electronics Automotiv
Slide 13: Financial Highlights - Quarterly Results QoQ and YoY
Financial Highlights - Quarterly Results QoQ and YoY For the period ended RM'mil Q3 21 Q2 21 QoQ% Sep 21 Sep 20 YoY% Revenue Distribution 46.7 50.3 -7.7% 142.3 99.0 43.7% - Product 31.3 31.1 0.6% 91.9 55.1 66.8% - Materials 4.5 6.6 -31.8% 16.8 14.4 16.7% - Spares & Service 10.9 12.6 -13.5% 33.6 29.5
Slide 14: Financial Highlights - Quarterly Results Comparison
Financial Highlights – Quarterly Results Comparison In RM ‘mil For Period Ended Q3'21 vs Q3'21 vs Cumulative Q3'21 Q3'20 Q2'21 9M Sep'21 9M Sep '20 Q3'20 Q2'21 YoY changes Revenue 51.7 36.0 54.3 43.6% -4.8% 158.6 114.6 38.4% PATMI 3.8 1.6 3.9 137.5% -2.6% 14.6 6.7 117.9% PATMI Margin 7.4% 4.4% 7.2%
Slide 15: Financial Highlights - Quarterly Revenue and PBT trend
Financial Highlights – Quarterly Revenue and PBT trend 20.0% Quarterly Financial Highlights 54.3 52.6 2019 - 2021 Q3 17.1% 51.7 15.0% 41.5 40.6 39.9 40.5 39.8 39.5 38.9 35.9 10.3% 10.0% 9.9% 8.3% 9.3% 7.3% 6.8% 6.4% 6.2% 5.0% 2.7% 9.0 5.4 5.3 2.9 2.7 3.3 3.6 2.3 2.5 0.0% 1.1 Q1-2019 Q2-2019 (1.1) Q3
Slide 16: Financial Highlights of Q3'21 - 9M cumulative period
Financial Highlights of Q3’21 – 9M cumulative period Revenue (RM Mil) Gross Profit (RM Mil) PBT (RM Mil) PATMI (RM Mil) 200 .0 50. 0 150 .0 100 .0 158.6 39.1 19.7 114.6 50. 0 14.6 25.3 9.2 6.7 0.0 0.0 0.0 0.0 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21 • Revenue increased due to a jump in sales
Slide 17: Financial Highlights - Cash & Cash Equivalents
Financial Highlights – Cash & Cash Equivalents Cash and cash equivalents (RM'mil) 85.4 74.2 71.5 69.4 51.3 45.7 14.8 2017 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 * Included in the financial year ended 2020 Cash and Bank Balances is RM17,850,000 being monies placed to vendor’s financier in respect of
Slide 18: Financial highlights - Gearing ratio
Financial highlights – Gearing ratio 140 0.60 131.5 130 0.57 127.9 124.2 120 117.3 0.50 110 100 87.8 89.1 0.40 90 80 0.34 Rm’million 70 0.31 0.30 60 0.26 0.27 50 46.5 43.0 40.5 0.20 40 0.18 33.2 0.15 30.1 30 26.3 0.10 20 15.5 13.1 10 0 - 2017 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 External Borrowing
Slide 19: Financial highlights - Other ratios
Financial highlights – Other ratios Earnings before Interest, Taxes, Depreciation and Profit attributable to Owners of the Company Amortisation (RM'million) (RM'million) 21.3 19.8 15.4 15.0 14.1 8.7 9.7 8.7 6.6 6.0 6.9 3.3 3.9 3.8 2017 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 2017 2018 2019 2020 Q1-20
Slide 20: Analysis: Revenue (QoQ and YoY) - By Countries
Analysis: Revenue (QoQ and YoY) – By Countries For the period ended RM m Q3 21 Q2 21 QoQ% Sep 21 Sep 20 YoY% Revenue Malaysia grew strongly YoY Malaysia 21.7 26.1 -16.9% 63.2 38.5 64.2% ASEAN 28.1 24.3 15.6% 82.8 62.5 32.5% Strong ASEAN YoY recovery Singapore 9.4 6.8 38.2% 27.0 17.2 57.0% Semicon gr
Slide 21: Analysis: Revenue YoY - Cumulative 9M (By Country/Region)
Analysis: Revenue YoY – Cumulative 9M (By Country/Region) Others RM12.6 Others million RM13.6 million 12.6 13.6 63.2 ASEAN 38.5 SEPT 2021 RM82.8 SEPT 2020 ASEAN million RM62.5 Malaysia 82.8 Malaysia million RM 63.2 62.5 RM38.5 million million YOY growth ASEAN Malaysia Others 32.5% 64.2% (7.4%) © 202
Slide 22: Analysis: Revenue Breakdown - By Division
Analysis: Revenue Breakdown – By Division 4.4% 7.4% 9.7% 13.3% 16.2% 13.9% 18.3% 26.5% 23.2% 21.1% 19.2% 25.8% 21.4% 25.8% 69.1% 66.9% 69.4% 69.2% 60.9% 60.3% 58.0% 2017 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 Distribution Division - Product Distribution Distribution Division - Services & Supply of S
Slide 23: Analysis: Revenue Breakdown - By Industry
Analysis : Revenue Breakdown - By Industry Q3-2021 Q2-2021 Others, 11.0% Automotive, Others, 11.5% Automotive, 21.9% 20.9% E&E, 19.6% E&E, 18.1% Semiconductor, Semiconductor, 47.5% 49.5% Automotive E&E Semiconductor Others Automotive E&E Semiconductor Others © 2021 QES Group Berhad. All rights reser
Slide 24: Analysis: Manufacturing equipment series revenue trend
Analysis: Manufacturing equipment series revenue trend Manufacturing Division - Revenue Breakdown (YoY) by Product Series 25.1% 47.6% 44.5% 47.9% 28.4% 23.7% 25.8% 26.6% 41.0% 12.9% 14.8% 23.2% 18.2% 25.9% 10.5% 13.6% 28.2% 9.2% 19.3% 0.5% 4.9% 5.7% 2.5% Revenue FY 17 FY 18 FY 19 FY 20 9M-2021 RM'00
Slide 25: Analysis: Equipment Installed Base - Cumulative
Analysis: Equipment Installed Base - Cumulative Manufacturing Total QES Group 323 332 350 14,000 12,429 12,641 12,766 300 310 12,291 11,642 11,070 300 265 12,000 10,315 243 250 10,000 185 200 8,000 150 6,000 100 4,000 50 2,000 - - FY 17 FY 18 FY 19 FY 20 Q1 21 Q2 21 Q3 21 FY 17 FY 18 FY 19 FY 20 Q1
Slide 26: QES Group - Advantages and Strengths
QES Group – Advantages and Strengths Diversified base of Well established own Large installed base more than 3,800 subsidiaries regional of more than 12,000 customers primarily infrastructure across machines worldwide from semiconductor, ASEAN E&E, Metal & Automotive sectors Extensive R&D on Large p
Slide 27: Key Investment Merits
Key Investment Merits Diverse Products and Regional Presence in Strong financial balance Market Segments ASEAN Market With sheet Overseas Expansion 30 years experience of being a one stop specialist in Plans Net cash of > RM 71.5 million as manufacturing, distribution and of 30-Sept 21 Extensi
Slide 28: Corporate Updates
Corporate Updates Event Planned activities and updates FMCO will delay move in to end of Q1-2022 instead of mid-Nov 21 Renovation of new factory @ Overall space increase from 39,000 sq ft to ~81,000 sq ft Hicom-Glenmarie, Shah Alam Capacity of manufacturing increases from 25,000 sq ft to 35,00
Slide 29: Corporate Updates
Corporate Updates Event Planned activities and updates QES 2nd factory will house a combined QES Mechatronic, QES Vision, AETM and QES Distribution Penang operations QES Penang Expansion Manufacturing space of at least 100,000 sq ft Total employment forecasted to be at least 100 staffs within
Slide 30: Outlook Summary for Q4-2021 and beyond
Outlook Summary for Q4-2021 and beyond Event Planned activities and updates Order intake from semiconductor customers continues to be strong Deliveries impacted by supply chain issues and shortage of critical components Launched PDA1000V (AOI Series) automated inspection machines for IGBT powe
Slide 31: Outlook Summary for Q4-2021 and beyond
Outlook Summary for Q4-2021 and beyond Event Planned activities and updates QES Group is set to record a strong double digit revenue growth FY2021 over FY2020 Q4-2021 shipments (especially manufacturing division) expected to increase due to some delayed shipments originally planned in Q3-2021
Slide 32: ESG Planning for QES Group
ESG Planning for QES Group Event Planned activities and updates Installation of solar panels on roof top of both the current Hicom Glenmarie factory and future QES Batu Kawan factory Environmental Rain harvesting systems to be installed at both sites Complete digitalization to reduce paper and
Slide 33: Utilisation of Private Placement Proceeds - Update
Utilisation of Private Placement Proceeds - Update As at 30 September 2021 © 2021 QES Group Berhad. All rights reserved.
Slide 34: Semiconductor Market Outlook
Semiconductor Market Outlook Global Semiconductor Sales in July Up 29.0% Year-to-Year, 2.1% Month-to-Month “Global semiconductor sales remained strong in July, with robust demand across all major regional markets and semiconductor product categories,” said John Neuffer, SIA president and CEO. “Chip
Slide 35: Semiconductor Market Outlook
Semiconductor Market Outlook The worldwide IC market is now expected to display an increase of 24% this year, driven by a 21% jump in unit shipments and a 2% increase in ASP. A growth rate of 24% would be the third largest increase in the global IC market over the past 16 years, being surpassed only
Slide 36: Semiconductor Market Outlook
Semiconductor Market Outlook © 2021 QES Group Berhad. All rights reserved.
Slide 37: New Glenmarie Factory - Artist Impression
New Glenmarie Factory – Artist Impression © 2021 QES Group Berhad. All rights reserved.
Slide 38: Thank You
THANK YOU QES Group Berhad Tel: (603) 5882 6668 No 9, Jalan Juruukur U1/19, HICOM Fax: (603) 5567 0811 Glenmarie Industrial Park, Seksyen U1, Email: investor.relations@qesnet.com 40150 Shah Alam, Selangor, Malaysia Website: www.qesnet.com © 2021 QES Group Berhad. All rights reserved.