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Annual General Meeting FY201128 October 2011
MICRO-MECHANICS(HOLDINGS) LTD.
2
FY2011 REVIEW
Record revenue in FY2011� Lifted by higher sales from both business divisions
Net profit up 43.0% to S$6.8 million
Total dividends of 3.0 cents per share or approximately S$4.2 million
Healthy balance sheet with S$7.5 million in cash and no borrowings
3
BUSINESS PROGRESS IN FY2011
Precision tools and consumable products used in the assembly and testing of semiconductors
� Completed outfitting of a larger factory in Suzhou, China
� Developed new micro-manufacturing processes� Singapore factory turned into a Product Development
Centre with higher level of automated work centres
Semiconductor Tooling
� Grew our CMA business� Realising business diversification and growth beyond
semiconductor tooling business� Upgrading and improving manufacturing capability� On a more stable footing
Custom Machining and Assembly (CMA)
Complex machined components for equipment manufacturers in laser, medical, aerospace, and wafer-fabrication industries
4
FY2011 FINANCIAL SNAPSHOT
REVENUE UP 10.6% NET PROFIT UP 43%
11.7 9.3 11.7
9.09.8
11.4
5.4 10.111.17.0
11.811.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
FY2009 FY2010 FY2011
4Q
3Q
2Q
1Q
(S$ mil)
33.1
41.045.3
0.5
4.8
6.8
0.0
2.0
4.0
6.0
8.0
10.0
FY2009 FY2010 FY2011
5
FY2011 FINANCIAL SNAPSHOT
REVENUE BREAKDOWN
Semiconductor tooling
82%
CMA18%� Revenue grew
12.5% to S$37.0M� Gross profit margin
was 53.7%
� Revenue up 3.1% to S$8.3M
� Gross profit margin was 11.3%
6
SHAREHOLDER VALUE
(IPO price = 18.4 cents after adjusting for 1-for-4 bonus issue in FY2006)Total dividends of 25.9 cents per share since listing
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0
1
2
3
4
5
6
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Special dividendProposed final dividendInterim dividendNTA per shareDividend
per share (cents)
2.4
0.81.2
3.5
5.0 5.0
2.0
3.0 3.0
NTA per share (cents)
7
AWARDS
Received 3 awards in 2011 in recognition of our efforts to raise our corporate governance and transparency standards
Most Transparent Company (Main Board Small Caps) 2011– SIAS
Best Investor Relations Award (Silver) for companies with market cap of less than S$300M – Singapore Corporate Awards 2011
Best for Shareholders’ Rights and Equitable Treatment in Singapore - Asiamoney Corporate Governance Poll 2010
Source: Asiamoney publication, Dec 2010/Jan 2011 Issue
FY2012 FIRST QUARTER RESULTS
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OPERATING ENVIRONMENT
-40%-30%-20%-10%0%10%20%30%40%50%60%70%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Jan-09
Mar-0
9
May-0
9
Jul-09
Sep-0
9
Nov-0
9
Jan-10
Mar-1
0
May-1
0
Jul-10
Sep-1
0
Nov-1
0
Jan-11
Mar-1
1
May-1
1
Jul-11
Global chip sales (US billion)
Source: Semiconductor Industry Association (SIA)
Y-O-Y Sales Growth
• Chip sales in July and August 2011 were US$24.9 B and US$25.0 B• Average monthly sales in April to June were US$24.8 B
Slowdown in business environment in 1Q12� Weaker business sentiment in global technology industry� Uncertain economic conditions led to reduction in orders and
delays in shipments to customers
10
1Q12 RESULTS AT A GLANCE
1Q12 Variance from 1Q11REVENUE S$10.4 million - S$1.3 millionGROSS PROFIT S$4.7 million - S$1.0 millionOPERATINGEXPENSES (net of other income)
S$3.0 million -S$0.2 million
NET PROFIT S$1.2 million -S$0.7 million
Profit and Loss
Healthy cash balances of S$8.8M at the end of September 2011Lower capex of S$1.5M compared to S$2.6M in 1Q11Account receivables ageing profile remains soundZero bank borrowings
Financial Health
11
Slower business conditions in 1Q12 due to concerns over economic conditions
GROUP REVENUE
9.5 11.7 9.3 11.7 10.4
9.7 9.09.8
11.4
9.2 5.4 10.111.1
9.87.0
11.811.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
FY2008 FY2009 FY2010 FY2011 FY2012
4Q3Q2Q1Q
(S$ mil)
38.2
33.1
41.0
-11.2%
45.3
FY: Financial year ending 30 June
12
REVENUE BY PRODUCTS
FY: Financial year ending 30 June
Semiconductor tooling
85%
CMA15%� Revenue declined
8.5% (S$0.8M) to S$8.8M
� Gross profit margin was 52.2%
� Revenue down 23.8% (S$0.5M) to S$1.6M
� Gross profit margin was 4.8%
Sales were softer due to reduction in customers’ purchases, delays in shipments, appreciation of the USD against SGD, & selling price pressure typical of the semiconductor industry
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REVENUE BY GEOGRAPHICAL MARKET
1Q12 1Q11 ChangeSingapore 0.3 0.6 (39.7%)Malaysia 2.2 2.3 (4.2%)Philippines 0.8 0.9 (11.3%)Thailand 0.9 0.9 5.8%China 2.1 1.8 14.7%USA 2.0 2.5 (21.8%)Europe 0.5 0.5 0.0%Japan 0.4 0.5 (29.2%)Taiwan 0.9 1.1 (18.8%)Rest of world 0.3 0.6 (48.7%)Total 10.4 11.7 (11.2%)
Singapore, 3%
Malaysia, 21%Philippines,
7%
Thailand, 9%
China, 20%
USA, 19% Europe, 5%
Japan, 4%
Taiwan, 9%Rest of
world, 3%
China and Thailand markets registered growth in 1Q12(S$ mil)
14
GROSS PROFIT MARGIN
� Gross profit declined S$1.0 M to S$4.7 M� Affected by lower sales, selling price pressure, weaker greenback,
higher production headcount and depreciation cost
50.9%44.0%
47.2% 48.0% 48.9% 46.4% 45.4% 42.7% 45.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
FY: Financial year ending 30 June
Target GPM : 50%
FY20
10 –
47.5
%
FY20
11 –
45.9
%
15
GROUP NET PROFIT
2.5 2.1 1.4 2.0 1.2
2.6
0.2 0.71.8
2.1
-1.4
1.3
1.6
1.7
-0.4
1.4
1.4
-4
-2
0
2
4
6
8
10
FY2008 FY2009 FY2010 FY2011 FY2012
4Q3Q2Q1Q
(S$ mil)
8.9
0.5
4.8
-37.5%1Q2Q
3Q4Q
6.8
FY: Financial year ending 30 June
� Net profit declined S$0.7 M to S$1.2M� NP margin contracted to 12.0% from 17.0% previously
16
OPERATING ENVIRONMENT
Expect more challenging business environment� Continued concerns over global economic performance dampening
business sentiment� Lower consumer and industrial demand will place pressure on
semiconductor sales� Forecasts for chip sales in 2011 shaved to between negative 0.1% to
growth of 2.9%� Sales growth projections for 2012 are between 3% and 5%� Uncertainty of global economy will also undermine demand for
capital equipment
17
OPERATING ENVIRONMENT
Update on our operations in Thailand� Factory operations have been suspended until end of October 2011
for safety of workers due to flooding in the area� Taken necessary precautions to protect factory from rising
floodwaters� Most customers have also temporarily halted their operations � Cost of physical damage to our facility is presently minimal� Sales from Thailand market formed less than 10% of Group revenue� Expect business in Thailand to decline in the short term due to
disruption to customers’ operations
18
This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. Investors can identifysome 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 are not the exclusive means of identifying forward-looking statements.These forward-looking statements are based on current expectations, projections and assumptions about future events. AlthoughMicro-Mechanics (Holdings) Ltd. believes that these expectations, projections, and assumptions are reasonable, these forward-lookingstatements are subject to the risks (whether known or unknown), uncertainties and assumptions about Micro-Mechanics (Holdings) Ltd. and itsbusiness 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 we conduct business or expectto 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 not occur and actual resultsmay differ materially from those expressly or impliedly anticipated in these forward-looking statements. Investors are advised not to placeundue 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.’sbusiness, financial conditions, results of operations and prospects may have changed since that day. Micro-Mechanics (Holdings) Ltd. has noobligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except asrequired by law.
SAFE HARBOUR FOR FORWARD-LOOKING STATEMENTS
Micro-Mechanics31 Kaki Bukit PlaceEunos TechparkSingapore 416209www.micro-mechanics.com
Investor Relations ContactOctant ConsultingTel (65) 6296 [email protected] / [email protected]
MICRO-MECHANICS(HOLDINGS) LTD.
