Qes Group Bhd · MYX:QES
Qes Group Bhd — Q4 2021 Earnings Presentation
46 slides from Qes Group Bhd's earnings presentation, Feb 24, 2022
Slide 1: QES Investor Briefing Q4-2021
QES INVESTOR BRIEFING Q4-2021 (24 February 2022) 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% 85% 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 year ended RM'mil Q4 21 Q3 21 QoQ% Dec 21 Dec 20 YoY% Revenue Distribution 55.0 46.7 17.8% 197.3 130.1 51.7% - Product 32.3 31.3 3.2% 124.2 72.6 71.1% - Materials 9.2 4.5 104.4% 26.0 17.4 49.4% - Spares & Service 13.5 10.9 23.9% 47.1 40.1
Slide 14: Financial Highlights – Quarterly Results Comparison
Financial Highlights – Quarterly Results Comparison In RM ‘mil For Year Ended Q4'21 vs Q4'21 vs Dec'21 vs Q4'21 Q4'20 Q3'21 Dec'21 Dec'20 Q4'20 Q3'21 Dec'20 Revenue 64.2 40.6 51.7 58.1% 24.2% 222.8 155.2 43.6% PATMI 4.4 2.0 3.8 120.0% 15.8% 19.0 8.7 118.4% PATMI Margin 6.9% 4.9% 7.4% 8.5% 5.6% EBITD
Slide 15: Financial Highlights – Quarterly Revenue and PBT trend
Financial Highlights – Quarterly Revenue and PBT trend 20.0% 64.2 17.1% Quarterly Financial Highlights 2019 - 2021 52.6 54.3 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% 8.9% 8.3% 9.3% 7.3% 6.8% 6.4% 6.2% 5.0% 2.7% 9.0 5.4 5.3 5.7 3.3 0.0% 2.9 2.7 2.3 2.5 (1.1) 1.1 3.6 Q1-2019
Slide 16: Financial Highlights of Q4'21 – 12M cumulative period
Financial Highlights of Q4’21 – 12M cumulative period Revenue (RM Mil) Gross Profit (RM Mil) PBT (RM Mil) PATMI (RM Mil) 200 .0 50. 0 150 .0 222.8 100 .0 51.6 25.4 155.2 35.4 19.0 50. 0 11.7 8.7 0.0 0.0 0.0 0.0 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 • On the back of the highest ever
Slide 17: Financial Highlights – Cash & Cash Equivalents
Financial Highlights – Cash & Cash Equivalents Cash and cash equivalents (RM'mil) 85.4 79.4 74.2 71.5 69.4 51.3 45.7 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 * Included in the financial year ended 2020 Cash and Bank Balances is RM17,850,000 being monies placed to vendor’s financier in respect
Slide 18: Financial highlights – Gearing ratio
Financial highlights – Gearing ratio 150 0.40 140 135.7 131.5 127.9 0.35 130 124.2 0.34 120 117.3 0.31 0.30 110 100 0.27 89.1 0.26 0.25 90 87.8 RM' million 80 0.20 0.20 70 0.18 60 0.15 0.15 50 43.0 40.5 40 33.2 0.10 30.1 27.8 30 20 15.5 13.1 0.05 10 0 - 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021
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) 19.8 15.4 14.1 8.7 9.7 8.7 6.6 6.1 6.6 6.9 3.9 3.8 4.4 3.3 2018 2019 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 2018 2019 2020 Q1-2021 Q
Slide 20: Analysis: Revenue (QoQ and YoY) – By Countries
Analysis: Revenue (QoQ and YoY) – By Countries For the year ended RM m Q4 21 Q3 21 QoQ% Dec 21 Dec 20 YoY% Revenue Malaysia grew strongly Malaysia 28.8 21.7 32.7% 92.0 ᶺ 59.5 54.6% ASEAN 29.1 28.1 3.6% 111.9 82.9 35.0% Strong ASEAN recovery Singapore 7.4 9.3 -20.4% 34.3 24.7 38.9% Semicon driven gro
Slide 21: Analysis: Revenue Breakdown – By Country/Region
Analysis: Revenue Breakdown – By Country/Region 2.4% 5.5% 11.0% 8.3% 8.5% 55.1% 57.1% 50.2% 53.4% 59.9% 42.5% 41.3% 37.4% 38.3% 29.1% 2017 2018 2019 2020 2021 Malaysia ASEAN Others © 2021 QES Group Berhad. All rights reserved.
Slide 22: Analysis: Revenue Breakdown – By Division
Analysis: Revenue Breakdown – By Division 4.4% 13.3% 11.4% 18.3% 16.2% 26.5% 21.1% 25.8% 21.4% 25.8% 69.1% 67.5% 60.9% 60.3% 58.0% 2017 2018 2019 2020 2021 Distribution Division - Product Distribution Distribution Division - Services & Supply of Spare Parts Manufacturing Division © 2021 QES Group Be
Slide 23: Analysis: Revenue Breakdown – By Industry
Analysis: Revenue Breakdown – By Industry 10.7% 12.5% 14.5% 24.5% 18.8% 20.0% 24.8% 20.3% 25.2% 43.9% 45.2% 39.6% 2019 2020 2021 Semicon Automotive E&E Others © 2021 QES Group Berhad. All rights reserved.
Slide 24: Analysis: Revenue Breakdown – By Semicon Applications
Analysis: Revenue Breakdown – By Semicon Applications REVENUE BREAKDOWN BY SEMICONDUCTOR APPLICATIONS (FY2021) Mobile 5G RM17,882,661 13% Memory & Microprocessors RM18,063,452 Electronic Vehicles 13% RM62,445,152 46% OSD (Opto, Sensors & Discrete) RM38,977,583 28% © 2021 QES Group Berhad. All rights
Slide 25: Analysis: Manufacturing equipment series revenue trend
Analysis: Manufacturing equipment series revenue trend Manufacturing Division - Revenue Breakdown (YoY) by Product Series 47.9% 23.7% 25.8% 41.5% 18.2% 14.8% 12.9% 23.3% 47.6% 25.1% 25.9% 44.5% 28.2% 20.1% 13.6% 41.0% 9.2% 12.9% 10.5% 0.5% 4.9% 5.7% 2.2% Revenue FY 17 FY 18 FY 19 FY 20 FY 21 RM'000
Slide 26: Analysis: Equipment Installed Base - Cumulative
Analysis: Equipment Installed Base - Cumulative Manufacturing Total QES Group 344 350 14,000 12,933 300 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 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 Installed base continues to gro
Slide 27: 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 28: 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 79.4 million manufacturing, distribution and as of 31-Dec 21 ▪ Extensiv
Slide 29: Corporate Updates
Corporate Updates Event Planned activities and updates ❖ On track and almost completed Renovation of new QES 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 35,000 sq ft ❖ A joint venture betw
Slide 30: 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 approximately 100,000 sq ft ❖ Total employment forecasted to be at least 100 staffs
Slide 31: Outlook Summary for FY2022 and beyond
Outlook Summary for FY2022 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 power
Slide 32: AOI Series - Wafer Inspection (PPI Series) Updates
AOI Series - Wafer Inspection (PPI Series) Updates Pictures taken at QES Hicom-Glenmarie factory on 13 Feb 2022 © 2021 QES Group Berhad. All rights reserved.
Slide 33: Outlook Summary for FY2022 and beyond
Outlook Summary for FY2022 and beyond Event Planned activities and updates ❖ Estimated 5~6 months to clear backlog of orders (~RM 92 mil) from FY 2021 ❖ Order intake momentum remains strong for Jan and Feb of 2022 FY2022 ❖ QES Group is optimistic to see growth in FY2022 over FY2021 ❖ Subject to meet
Slide 34: ESG Targets and Action Plans
ESG Targets and Action Plans Environmental ➢ QES promoting WEEE/ROHS analytical equipment 313 metric 68 to check and monitor hazardous elements (lead, mercury, cadmium etc) coming into consumer electronic products. tonnes passenger vehicles Playing our part to ensure planet Earth is environmentally
Slide 35: ESG Targets and Action Plans
ESG Targets and Action Plans Social Governance ➢ Gender and racial diversity within employees. ➢ Appropriate checks and balance via separate Approximately 30% female; 70% male roles and functions of Chairman and employee in the entire Group. Managing Director / President ➢ Donation and contributions
Slide 36: QES Glenmarie Factory Progress – Dec '21/Feb '22
QES Glenmarie Factory Progress – Dec ’21/Feb ‘22 Dec ‘21 Manufacturing Cleanroom ISO 6Floor Feb ‘22 © 2021 QES Group Berhad. All rights reserved.
Slide 37: QES Glenmarie Factory Progress – Dec '21/Feb '22
QES Glenmarie Factory Progress – Dec ’21/Feb ‘22 Dec ‘21 Manufacturing Floor Feb ‘22 © 2021 QES Group Berhad. All rights reserved.
Slide 38: QES Group New Factory Progress – Feb '22
QES Group New Factory Progress – Feb ‘22 Demo Room Building Facade © 2021 QES Group Berhad. All rights reserved.
Slide 39: QES Glenmarie Progress – Feb '22 Building Façade
QES Glenmarie Progress – Feb ‘22 Building Façade © 2021 QES Group Berhad. All rights reserved.
Slide 40: QES2@BKIP – Batu Kawan Industrial Park, Penang
QES2@BKIP – Batu Kawan Industrial Park, Penang Land Area: 2 acres Amount: RM4,791,600 Investment: RM20 mil Job Opportunities: Provide jobs for 100 engineers, technicians, administrative & executive personnel within 3 years from operation © 2021 QES Group Berhad. All rights reserved.
Slide 41: QES2@BKIP – Batu Kawan Industrial Park, Penang
QES2@BKIP – Batu Kawan Industrial Park, Penang © 2021 QES Group Berhad. All rights reserved.
Slide 42: Utilisation of Private Placement Proceeds - Update
Utilisation of Private Placement Proceeds - Update As at 31 December 2021 Proposed Actual Expected Utilisation Utilisation Balance Timeframe Purposes RM'000 RM'000 RM'000 for Utilisation (i) Factory capacity expansion 8,200 1,641 6,559 Within 18 months from 30 Oct 2020 (ii) R&D on future product exp
Slide 43: Semiconductor Market Outlook
Semiconductor Market Outlook © 2021 QES Group Berhad. All rights reserved.
Slide 44: Semiconductor Market Outlook
Semiconductor Market Outlook As a result, IC Insights now forecasts total semiconductor sales will rise over the next five years at a more moderate compound annual growth rate of 7.1% (Figure 1). Feb 10, 2022 The 2021-2026 CAGR for total opto, sensor, discretes (O-S-D devices) is projected to rise a
Slide 45: Semiconductor Market Outlook
Semiconductor Market Outlook © 2021 QES Group Berhad. All rights reserved.
Slide 46: 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: [email protected] 40150 Shah Alam, Selangor, Malaysia Website: www.qesnet.com © 2021 QES Group Berhad. All rights reserved.