1h15 operating and financial performance · 8/12/2015 · total market 6.8% cagr 2014 –2018...

1Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015

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1H15 Operating and Financial Performance

Analysts’ Briefing

12 August 2015Romulo Lounge Tower One and Exchange Plaza


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Market Updates Section 2

Review of 2Q 2015 Financial Results Section 3

Customer Highlights Section 1

Agenda


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10 years and over

20 years and over

15 years and over

*based on weighted average of the top 75% of revenues

Deeply-Embedded Partner to Our Customers

Key strengths we are leveraging 1. Long-standing relationships with top-tier customers2. Diversified lines of businesses3. Expanded reach Average customer relationship of 10 years*


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0-5 years, 4%

6-10 years, 9%

11-15 years, 31%

Over 16 years, 30%

0%

10%

20%

30%

40%

0 2 4 6

Revenue

Years

Customer concentration by length of relationship1

1 based on the Top 75% of revenues2 Manufacturing Market Insider, based on 2014 EMS-related revenues

Customer nationality Production site Market segment served by IMI

America China, Philippines Industrial, Telecommunication

Europe China, Mexico, Philippines Industrial, Automotive, Consumer

Europe China, Czech Republic,Philippines

Industrial, Automotive

Global footprint and capabilities: an attractive proposition to our customers

Our diverse customer base and deep customer relationships strengthen our position as the 18th largest EMS provider 2

1. Long-standing Relationship with Top-tier Customers


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Source: Automotive News June 2015 ranked by sales of original equipment parts in 2014

2014 Rank 2013 Rank Company Total OEM auto parts sales (in US$ million)

1 1 Robert Bosch GmbH $44,240

2 3 Magna International Inc. 36,325

3 4 Continental AG 34,418

4 2 Denso Corp. 32,365

5 5 Aisin Seiki Co. 28,072

6 6 Hyundai Mobis 27,405

7 7 Faurecia 25,043

8 8 Johnson Controls Inc. 23,589

9 9 ZF Friedrichshafen AG 22,192

10 10 Lear Corp. 17,727

11 14 Valeo SA 16,878

12 11 TRW Automotive Holdings Corp. 16,240

13 13 Delphi Automotive 16,002

14 12 Yazaki Corp. 15,200

15 – ThyssenKrupp AG 12,801

9 of the top 15have engagement with IMI

7 are direct customers; and

2 are engaged through Tier 2

customer

▼

▼

▼

▲

▲

▲

▲

Top 15 Global OEM Auto Parts Suppliers

2. Diversified Lines of Businesses

▼

* arrow indicates upward/downward change in ranking


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Germany Spain USA France Germany Germany Italy USA Germany

DPC / MPC;

pressure sensor

Front view

camera

Gear sensorPRODUCT

PhilippinesIMI Site

MicropolineGear Shifter

DCT 150/300

Electronic horn

Switch: Window lift, main light, head up display

Jiaxing, China

Ignition coil

CustomerNationality

3. Expanded reach: Case Study – Volkswagen


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Italy USA Luxemburg Germany France France Germany UK Germany Sweden

Rear lamp senses,light bulb socket

A/C sensor flex circuit

Sensor occupant detection

Rear wiper

controller

PRODUCT

CustomerNationality

IMI Site

Anti pinch window lifter; door latch

Ignition system

Fuel pump driver

Gear shifter lighting

Seat massage controller

Hall sensor

Mexico / Bulgaria

Power closure system module

Bulgaria Czech RepublicMexico

Our Global Support for Volkswagen (continued)


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Laguna, Philippines

Třemošná, Czech Republic

Botevgrad, Bulgaria

Italy USA Sweden USA USA Germany

Electronic horns

Antenna Front view camera

Electronics for gear

management

Exterior mirror turn indicator

MFS electronic interface GEN 1.5

Window lifter sensor adaptor

PRODUCT

Customer Nationality

Jiaxing, ChinaIMI Site

Case Study: Our Global Support for Volvo


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Major wins in 1H15

Nationality Industry ApplicationProduction

site

Europe Automotive Steering China, Mexico

Europe AutomotiveEmbedded control

switches and lighting

Europe

America Industrial Asset tag sensors Europe

America Automotive Driver assistance Europe

Europe IndustrialControls and

lightingPhilippines

1 2 3 4 6 8 10Year

Conceptual production schedule

Year 3 ramp up

1 2 3 4 6 8 10Year

Conceptual gross profit development

Units

Gross profit

Focused New Business Development: Automotive

Opportunities pipeline: Active bids under evaluation

Industry Application End-application

Automotive CameraSurround and forward views, rear,

side-mirror, in-cabin

Automotive Controls Body, engine, wiper, light

Automotive LightingLow-beam, high-beam, head light, rear light, ambient, turn signal

Automotive Telematics Tracking and vehicle security

Industrial Security Access system - RFID, biometrics

Industrial PowerSupply, module, battery

management

Industrial Lighting LED


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Market Update Section 2


Customer Deep Dive Section 1


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Total Market6.8% CAGR

2014 – 2018

Total Market6.8% CAGR

2014 – 2018

Source: IndustryARC

Automotive camera

Lane departure warning system

Controls – cruise, steering wheel, body

Sensors – occupancy seat, rotor positioning, temperature, humidity, tire pressure, anti-fog, transmission gear

Fuel management

Our product experiences

Automotive Market Outlook

ADAS

14.9% CAGR2015-2020


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2% 47% 67%

Sources: Citi Research May 2015, industry and company reports

2013 2017 2021 2025

14% Roadmap to Autonomous Driving

Now Safety features such as forward-collision warnings, lane-departure warning, adaptive cruise control, traffic-sign recognition

2015-2017 Automated braking, throttle, steering with forward vision, GPS connectivity

2018-2020 Car can accelerate/brake/steer by itself but driver is still required in case of emergency or system failure

2020 onwards Driverless car

Front camera penetration rate

Front Camera is Key to ADAS


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Managing IdentitiesAdoption of new credential form factors

Using biometrics

Source: HID

Physical security

15.5% CAGR2014-2019

Physical security

15.5% CAGR2014-2019

Eye tracking module

Electronic door access system

Smart card

Human machine interface

Embedded systems for access control, identification technology, entrance automation


Industrial Market Outlook in Identity Security


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Source: Zinnov Study

Industrial Market Outlook in Controls and Automation

Industrial Controls &

Factory Automation

8.5% CAGR

2013-2020

Industrial Controls &

Factory Automation

8.5% CAGR

2013-2020

Back-end assembly machine

Robot handler for injection molding machine

Custom automation

Factory automation



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Monitoring & Diagnostics

Source: New Venture Research, July 2015

Total Market7.0 % CAGR

2014 – 2019

Total Market7.0 % CAGR

2014 – 2019

Medical Market Outlook

Wireless health monitor

Flat panel imaging equipment

Auto body contouring imaging equipment

Patient monitoring device

Dental system

Concealed hearing aid



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Market Updates Section 2


Customer Deep Dive Section 1


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+ _

Materials cost savings

Strong automotive segment

Full utilization of Bulgaria facilities

Higher contribution of Mexico

Continued weakness of Euro

Normalization of 4G deployment

Declining PC demand

1H 2015 Highlights


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431 416 441

0

100

200

300

400

500

1H 2014 Actual 1H 2015 ex-FX

2.4%

Revenues by site

China…..…..35%

Philippines…32%

Europe……..26%

Mexico……..7%

Total: $416 million

Centered on Higher-Margin Segments

16.7 20.5 17.3 21.30.0

10.0

20.0

30.0

Europe automotive volumein millions

2Q152Q141Q151Q14

▲+23%+22.5%▲

Revenues by segmentAutomotive…....….42%

Telecom…………..19%

Industrial…...……..14%

Consumer………...11%

Multiple markets/ Others….…………..8%Medical………….....3%

Computing……...….3%


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15.0 17.4

3.5%

4.2%

3.0%

3.5%

4.0%

4.5%

13.0

14.0

15.0

16.0

17.0

18.0

1H 2014 1H 2015

Operating profit

Operating profit Operating profit margin

▲+15.7%

48.6 45.9

11.3% 11.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1H 2014 1H 2015

Gross profit

Gross profit Gross profit margin

▼–5.6%

11.3 15.2

2.6%

3.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0.0

5.0

10.0

15.0

20.0

1H 2014 1H 2015

Net Income

Net income Net income margin

25.1 29.4

5.8%

7.1%

2.0%

4.0%

6.0%

22.0

24.0

26.0

28.0

30.0

1H 2014 1H 2015

EBITDA

EBITDA EBITDA margin

▲+17.0%

▲+34.7%

Sustained Operating Performance


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6.4 4.2 4.7 5.2

2.3 5.1 5.2 2.5

3.9 8.2 6.7

3.4

3.0

2.2 7.4

2.1

1.5

1.8

1.8

0.9

0

5

10

15

20

25

30

2012 2013 2014 1H15

PSI

Mexico

Europe

China

Philippines

Disciplined Capital Investments

43%

39%

10%

6%

2%

1H 2015 CAPEX

Machinery & equipment

Contruction in progress

Buildings & improvements

Furniture & fixtures

PPE - Others

Capex/ Revenue 3.1%2.9% 3.4%2.6%

17.3

21.6

26.2

14.0


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(US$ Millions) June 2015

Short-term debt 37.5

Long-term debt 46.8

Total Bank Debts 84.4

Cash 100.6

Net Cash 16.2

Preferred Equity 26.6

Common Equity 221.8

Total Equity 248.4

Key financial ratios June 2015

Current ratio 1.78

Debt/Equity 0.34

Book value/share 0.12

Return on equity 14.7

Capital Structure

12%

13% 8%

67%

Short-term debt Long-term debt

Preferred shares Common shares

Strong Liquidity Position

Return on capital employed: 16.7% post-redemption of preferred shares


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• Strong pipeline builds solid foundation for take off

• Steady improvement in margins across market segments

• Solid balance sheet with US$101 million in cash and a debt to equity ratio of 0.34

Key Takeaways


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Thank you.

website: www.global-imi.come-mail: [email protected]

1h15 operating and financial performance · 8/12/2015 · total market 6.8% cagr 2014 –2018...

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