1q09 results presentation-31oct08micromechanics.listedcompany.com/newsroom/1q09_results_prese… ·...

Results Presentation 1Q09

Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09

1Q09

Financial Review

3 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09

1Q09 Results Snapshot

15.9%1.811.52Earnings Per Share (S cents)

-26.218.1Net Profit Margin (%)

-61.448.3Gross Profit Margin (%)

15.9%2.52.1Net Profit (S$ mil)

13.4%3.12.7Profit Before Tax (S$ mil)

22.3%9.611.7Revenue (S$ mil)

Change1Q08(July to Sep 07)

1Q09(July to Sep 08)

Financial year ending 30 June


1Q09 Results Analysis

0.9%(1Q08 : 2.2%)

Trade receivables > 90 days/ Total trade receivables

S$12.8 mNo borrowings

Cash Balance

25.0%(1Q08 : 28.1%)

Operating expenses / Sales

-15.9%Net Profit

- 3.7%Gross Profit

+ 22.3%Sales

ResultKey Measurables Boosted by start of new CMA-relatedplant in the USA in June 2008; CMAcontributed to 30% of Group sales from10% previously

Trade-off between sales growth andgross profits in near-term

Expense structure remains well-controlled after asset acquisition

Profit of S$2.1 m despite toughereconomic conditions and start of newoperations in the USA

Maintained a solid balance sheet –ready for challenges and opportunities


Group Revenue

7.6 7.8 7.98.4

8.9 8.88.1

8.99.6 9.7

9.29.8

11.7

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

0.9

3.5

1Q08

1Q09

5-year (FY04 to FY08) Revenue CAGR 13.3%

S$ million+22.3%

8.7

8.2

1Q08

1Q09


Japan

4%

Taiwan

8%

Europe

14%

USA

22%

Others

4%

China

17%

Singapore

4%

Philippines7%

Malaysia

16%

Thailand

4%

Revenue Analysis by Markets

China

China

2

Philippines

Malaysia

3

Europe

Europe

4

USAMalaysia1Q08

USA

1

Taiwan1Q09

5

81% of combined USAand Europe salesderived from CMAbusiness

201%

64%

25%

Largest market for oursemiconductor toolingbusiness

1Q09 Revenue breakdown by Markets

Sales in othersemiconductor toolingmarkets, except Taiwanand Thailand, were softer

Top 5 Markets


59.7%63.4% 41.0%

21.2%

48.3%

53.9%

57.7%59.9%61.4%

58.1%56.1%

58.0%59.9%

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

Gross Profit Margin

Aim to improve CMA GP margin in FY2009

Semiconductor Tooling GP Margin CMA GP Margin

Group GP margin affectedby lower CMA GP margin

Semiconductor toolingGP margin held steadydespite price pressure andincreased capacity in 2H08

CMA GP margin declineddue to increased productionheadcount and depreciationfrom newly started USAplant


54.0%52.0%

58.0%58.0%61.0%

1Q08 2Q08 3Q08 4Q08 1Q09

Capacity Utilization

Focus on enhancing overall plant utilization

Additional production capacity inPenang plant in 2H08; start of newplant in USA in June 2008

Capex spending in 1Q09: S$0.6 m

Capex budget for FY2009: S$2.0 m

(not including plans for moreintegrated IT system)


Group Net Profit

2.0 2.0

2.32.1

1.7

2.2

2.5 2.5

2.1

1.7

2.1

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

5-year (FY04 to FY08) Net Profit CAGR 17.3%

S$ million

-15.9%

•Higher operating overheadsdue mainly to increasedheadcount of USA plant andSales Incentive Program

•However, as a percentage ofsales, operating expenses fellto 25% from 28.5% in 1Q08

•Higher effective tax rate of22.5% in 1Q09

•Net profit margin contractedto 18.0% in 1Q09


Financial Position

21.2%*

31.2%*

28.77 cents

Nil

S$1.85 m (1Q09)

S$12.8 m

4.2%*

S$4,500 (1Q09)

0.9%

End Sep 2008

23.7%

34.2%

ROE

ROE (ex-cash)

Shareholders equity

27.01 centsNAV per shareNet assets

NilBorrowingsGearing

S$2.41 m (1Q08)

S$11.5 m

Operating cashflow

Balances

Cash and equivalents

3.7%

S$6,300 (1Q08)

Inventory / Sales

Inventory write-off

Inventory

1.0%(Outstanding > 90 days) /Total trade receivables

Trade receivables

End June 2008IndicatorCategory

Solid Balance Sheet

*Annualised figure

Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09

Outlook &

Strategies


The Silver Lining…

Ready for challenges and opportunities

Micro-Mechanics’

Silver Lining

574 greatpeople =

“IncreasingWealth”

Skills,experience &

worldwidefacilities

Strong balancesheet – S$23 mof cash and TR;no borrowings

Clear goals &practical

strategies

The USA economy is likely to head into recession…

Economies worldwide facing sluggish growth at best…

Challenging outlook for FY2009 …


Business Strategies

SemiconductorTooling

Sector :Semiconductor

Markets : MainlyAsia

Fast & effective local supportto global customers

Enhance tooling productrange – ‘nano-technology’

Continual focus on quality, costand cycle time

CMASectors :Aerospace, medical,instrumentation,semiconductor

Markets : Mainly USand Europe

CMA-USA operations boostsales growth, add breadth anddepth to skills & customerbase, but near-term drag onprofitability

Work towards operationalprofitability for CMA-USA

Focus on quality, cost andoperational improvements


Safe Harbour forForward-Looking Statements

This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements.Investors can identify some of these statements by forward-looking items such as ‘expect’, ‘believe’, ‘plan’, ‘intend’,‘estimate’, ‘anticipate’, ‘may’, ‘will’, ‘would’, and ‘could’ or similar words. However, you should note that these words arenot the exclusive means of identifying forward-looking statements. These forward-looking statements are based oncurrent expectations, projections and assumptions about future events. Although Micro-Mechanics (Holdings) Ltd.believes that these expectations, projections, and assumptions are reasonable, these forward-looking statements aresubject to the risks (whether known or unknown), uncertainties and assumptions about Micro-Mechanics (Holdings) Ltd.and its business operations.

Some of the key factors that could cause such differences are, among others, the following:• changes in the political, social and economic conditions and regulatory environment in the jurisdictions where weconduct business or expect to conduct business;• the risk that we may be unable to realise our anticipated growth strategies and expected internal growth;• changes in and new developments in technologies and trends;• changes in currency exchange rates;• changes in customer preferences and needs;• changes in competitive conditions in the semiconductor industry and our ability to compete under these conditions;• changes in pricing for our products; and• changes in our future capital needs and the availability of financing and capital to fund these needs.

Given these risks, uncertainties and assumptions, the forward-looking events referred to in this presentation may notoccur and actual results may differ materially from those expressly or impliedly anticipated in these forward-lookingstatements. Investors are advised not to place undue reliance on these forward-looking statements.

Investors should assume that the information in this presentation is accurate only as of the date it is issued. Micro-Mechanics (Holdings) Ltd.’s business, financial conditions, results of operations and prospects may have changed sincethat day. Micro-Mechanics (Holdings) Ltd. has no obligation to update or revise any forward-looking statement, whetheras a result of new information, future events or otherwise, except as required by law.

31 Kaki Bukit Place, Eunos TechparkSingapore 416209www.micro-mechanics.com

Investor Relations ContactOctant Consulting tel (65) 6220 [email protected] or [email protected]

Thank You

1q09 results presentation-31oct08micromechanics.listedcompany.com/newsroom/1q09_results_prese… ·...

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