Nanofilm Technologies International Ltd. · SGX:MZH
Nanofilm Technologies International — H1 2024 Earnings Presentation
22 slides from Nanofilm Technologies International's earnings presentation, August 2024
Slide 1: Nanofilm Technologies International 1H2024 Results Announcement
NANOFILM TECHNOLOGIES INTERNATIONAL 1H2024 Results Announcement August 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 ▪ Outlook ▪ Q&A
Slide 5: Overview
1 | Overview Mr Gary Ho Executive Director and Group CEO
Slide 6: 1H2024 At a Glance: Improving Business Performance
1H2024 At a Glance: Improving Business Performance Steady Revenue Growth and Effective Cost Management 1% 5% 1H2024 17m 134m 8% S$ 1H2024 S$ as at 30 June 2024 +61% YoY S$ 83m ADJUSTED EBITDA TOTAL CASH BALANCE +13% YoY 1H2024 AMBU NFBU IEBU 86% Sydrogen S$ (4m) 0.33₵ per ordinary share Loss narrowe
Slide 7: Overview
Overview $ Steady Revenue Growth in 1H2024 ▪ Revenue recovery continued into 1H2024 ▪ 1H2024 Group revenue grew 13% YoY, led by 20% YoY growth in AMBU and 50% YoY growth in NFBU. However, these gains were partially offset by a decline of 56% YoY growth in IEBU Continuing Cost Optimisation & Investme
Slide 8: Financial Highlights
2 | Financial Highlights Mr Kay Lim Group CFO
Slide 9: 1H2024 Revenue Performance
1H2024 Revenue Performance Momentum in Revenue Recovery Led by AMBU 11 0.0 ▪ 3C within AMBU grew 16.7% YoY with higher contributions (in S$m) 90 .0 from existing and new customers. However, a few 3C projects have encountered delays in mass production 70 .0 ramp-up to 2H REVENUE 50 .0 82.6 ▪ Industri
Slide 10: Core Expenses Review
Core Expenses Review Continuing Cost Optimisation with Strategic Sales Investment (in S$m) 40.6% ▪ GPM improved on a YoY basis to 33.5% in 1H2024 compared to 12 0 50 .0% 32.0% 33.5% COGS & GPM 32.0% in 1H2023 40 .0% 10 0 30 .0% 61.7 80 55.0 20 .0% 60 49.7 10 .0% ▪ Stronger business and operational p
Slide 11: Investment in Technology & Innovation
Investment in Technology & Innovation Continued higher capitalisation rate for R&D and Engineering activities R&D and Engineering Expenses (1) (in S$m) 8.7% (2) 9.3% (2) (2) 8.1% 25 .0 10 .0% 20 .0 16.5 15.7 5.0 % 15 .0 14.9 6.9 0.0 % 10 .0 8.6 9.0 -5.0% 5.0 9.6 6.3 6.7 - -10.0 % 1H2023 2H2023 1H202
Slide 12: PATMI & EBITDA Review
PATMI & EBITDA Review Improvement in profit trend (in S$m) 10.4% ▪ PATMI losses were narrowed by 51.1% YoY, driven by 40 .0 10 .0% 35 .0 30 .0 -4.5% 0.0 % higher revenue, improved gross profit margins from 25 .0 -10.5% better operational performance, and streamlined business costs -10.0 % 20 .0 PATM
Slide 13: PPE Update
PPE Update Enhancing quality asset base to drive future growth 45 .0 (in S$m) 40 .0 PPE Changes in 1H2024 36.6 0.8 ▪ Total purchase of property, plant, and equipment for 1H2024 was S$21.0m 35 .0 9.6 ▪ Major PPE investments include: 30 .0 25 .0 o Near completion of Phase 1 in mega plant in 20.7 8.6 2
Slide 14: Positive Operating Cash Flow
Positive Operating Cash Flow Business resilience with continuing positive operating cash flow Total cash balance as at 30 June 2024 (in S$m) 20 0 S$6.5m structured deposit(1) 18 0 16 0 21 20 14 0 23 1 12 0 10 0 155 80 60 134 40 20 0 Beginning cash balance Operating cash flow PPE Other investing Fina
Slide 15: Outlook
3 | Outlook Mr Gary Ho Mr Ian Howe Mr Gian Yi-Hsen Executive Director and Group CCO Group CSO and Group CEO CEO, Sydrogen
Slide 16: Business Outlook: AMBU
Business Outlook: AMBU Growth Through Strategic Expansions in Consumer and Industrial Sectors CONSUMER: ▪ Our strategic footprint, aligned with the China plus one strategy, positions us favourably for business in China, Vietnam and India ▪ 2H project pipeline expected to result in higher YoY revenue
Slide 17: Business Outlook: IEBU
Business Outlook: IEBU Business cycle is longer ▪ One product line has reached market saturation, leading to fewer growth opportunities. However, a major upgrade to this product line has renewed customer interest, resulting in two secured orders for the upgraded product line in YTD 2024 ▪ Sales oppo
Slide 18: Business Outlook: NFBU
Business Outlook: NFBU An emerging player with unique nanofabrication capabilities for next-gen devices ▪ 2H2024 continues to be driven by the mass production projects for micro-lens array (MLA) lenses in consumer wearables and Fresnel lenses for smartphones ▪ As consumer electronics enter into the
Slide 19: Business Outlook: Sydrogen
Business Outlook: Sydrogen Advances in China with Mass BPP Production and Unveils New Fuel Cell Innovations in 2024 ▪ Sydrogen has commenced quantity production of BPP coatings for additional automotive customer in 1H2024 o Continued engagement and addition of new production customers in 2H2024 ▪ Se
Slide 20: FY2024 Overall Outlook
FY2024 Overall Outlook MARKET ENVIRONMENT ▪ The overall macro environment, while uncertain, presents opportunities from anticipated higher consumer demand driven by AI adoption KEY GROWTH DRIVERS ▪ Consumer: Consumer demand for AI-enabled devices may revive growth. We have expanded our customer base
Slide 21: Q&A
4 | Q&A
Slide 22: Thank You
THANK YOU
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