Results Presentation 1Q09
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
4 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
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$2.1 m despite toughereconomic conditions and start of newoperations in the USA
Maintained a solid balance sheet –ready for challenges and opportunities
5 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
Group Revenue
7.6 7.8 7.98.4
8.9 8.88.1
8.99.6 9.7
9.29.8
11.7
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
0.9
3.5
1Q08
1Q09
5-year (FY04 to FY08) Revenue CAGR 13.3%
S$ million+22.3%
8.7
8.2
1Q08
1Q09
6 Micro-Mechanics (Holdings) Ltd. Results Presentation 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
7 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
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
8 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
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$2.0 m
(not including plans for moreintegrated IT system)
9 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
Group Net Profit
2.0 2.0
2.32.1
1.7
2.2
2.5 2.5
2.1
1.7
2.1
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
5-year (FY04 to FY08) Net Profit CAGR 17.3%
S$ 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
10 Micro-Mechanics (Holdings) Ltd. Results Presentation 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
12 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
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 …
13 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
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
14 Micro-Mechanics (Holdings) Ltd. Results Presentation 1Q09
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]
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