Slides
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Accelerating our Journey to Excellence Micro-Mechanics (Holdings) Ltd 2QFY2026 and 1HFY2026 results presentation 30 January 2026
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Table of Contents 03 – Corporate overview 06 – Operational update 14 – Financial highlights 24 – Outlook & summary
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Corporate overview Micro-Mechanics facility in California, USA (MMUS)
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• Next Generation Supplier focused on enabling advanced technologies • Established track record since founding in 1983 and public listing on SGX Mainboard in 2003 • Trusted by more than 600 customers globally with diversified geographical footprint across five operating facilities in USA, Singapore, Malaysia, China and Philippines • Purpose driven mission – • Perfect Parts and Tools, On Time, Every Time – based on scalable, repeatable, cost-effective and data- driven processes Corporate overview Aerial view of Micro-Mechanics facility in California, USA Micro-Mechanics’ headquarters in Singapore (MMS)
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5 Diversified customer base across semiconductor value chain Supplying next-generation process critical parts to over 600 customers globally Micro-Mechanics MACCS1 Note: 1) Materials, assemblies, components, consumables (including tools) and services High precision metal parts critical to wafer fabrication process High precision micro- machined parts and tools Wafer front-end process equipment manufacturers • Lithography • Deposition (CVD/ALD) • Etch (Dry/Wet) • CMP • ION implantation • Thermal, clean, wafer handling Back-end equipment for assembly and test equipment manufacturers and users Die attach Wire bonding Advanced packaging & custom tooling What we manufacture Who we serve End-use applications • Smartphone • Consumer electronics • Wired and wireless infrastructure • Server, datacentre, storage • Automotive • Industrial Business model Front end • Integrated Device Manufacturer (IDM) • Foundry Back-end • Outsourced Semiconductor Assembly and Test (OSAT)
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Operational update Micro-Mechanics’ facility in Laguna, Philippines (MMPH)
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7 Operational update Strengthening resilience and capabilities Continuing to progress Five-Star Factory initiative for sustainable success • Continuing to strengthen excellence in areas fundamental to business performance Prioritising disciplined capital management to support continued investment for growth • Group seeks to allocate capital strategically to growth areas, including product development for Advanced Packaging and equipment for WFE manufacturing • Higher capital expenditure of S$2.3 million expected in 2HFY2026
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8 Five-Star Factory strengthens our core foundation Five core pillars to drive excellence, navigate headwinds and capture growth Innovation Excellence Developing new breakthroughs in next- generation components High Performance Teams Investing in our people to drive innovation and efficiency Workplace Efficiency and Safety Streamlining processes, reducing waste and maximising output Customer Engagement and Support Decentralising Group structure to respond effectively to customers Operational Excellence Developing best-in-class practices for repeatability and scalability
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9 Customer Engagement and Support Decentralising structure to respond effectively to customers Objectives • Established a team to study how to better support customers in Taiwan • Focused on supporting market growth in Arizona, which is attracting both WFE and Advanced Packaging investments by major chip makers Milestones • Strengthen the Group’s decentralised structure to improve our ability to promptly respond to customers’ and industry’s evolving high-value needs Our Factories and Presence Factory & Office Distributor / Agent California, US Suzhou, China Penang, Malaysia Singapore Batam, Indonesia JapanTaiwan Laguna, Philippines Thailand
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10 High Performance Teams Investing in our people to drive innovation and teamwork • At the Annual General Meeting in October 2025, shareholders approved the adoption of a Performance Share Plan (PSP 2025), designed to reward high performing employees with shares and reinforce the Company’s ownership culture • Attract and retain talent with the right skills in the right positions • Upskilling and training programmes to acquire new skillsets and master new techniques to solve new industry challenges • Align incentive systems with measurements of performance to drive efficiency and productivity Objectives Milestones
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11 Workplace Efficiency and Safety Streamlining processes, reducing waste and maximising output Objectives Milestones • Continued work with each factory to improve the way workplaces are organised, become more productive, and remain clean, safe and environmentally responsible o Based on a comprehensive internal audit, the Group awarded a “Five-Star 8S” rating to three of its five plants • Operate organised, productive, clean, safe and environmentally responsible operations with implementation of “8S”
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12 Operational Excellence Developing best-in-class practices for flawless quality, repeatability and scalability Objectives Milestones • Minimising inventory overstocking with inventory at S$3.7 million, representing 5.3% of sales (30 June 2025: 4.8%) o Inventory written off for 2QFY2026 totalled S$19k, compared to S$13k for 2QFY2025 • Remain focused on efforts to improve planning, streamline manufacturing and minimise inventory • Achieve fast, flawless and cost- effective manufacturing with lean engineering and management principles
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13 Innovation Excellence Engineering breakthroughs in next-generation products, materials, and processes Objectives Milestones • The Group’s R&D team continues to develop new elastomers for advanced packaging applications • For WFE, our engineers completed a year- long project to evaluate and purchase a new machine designed to improve machining quality and efficiency, with the o First installation scheduled at US plant in 1QFY2027 • Successfully evaluated new physics-based programming technology that can improve material removal rates by 10-30% o Implementation of programming method on long-cycle WFE parts is planned for 2HFY2026 • Promote fresh thinking and ingenuity • Drive product and process innovations, new manufacturing capability and adoption of new technologies and methodologies
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Financial highlights Micro-Mechanics’ facility in Penang, Malaysia (MMP)
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15 Note: 1) Return on equity: full year of net profit over shareholders’ equity at end of quarter S$35.4m S$12.6m 35.6% Net cash from operations S$9.4m Group revenue EBITDA & EBITDA margin ROE & net profit 25.1%1 S$6.9m 1HFY2026 highlights Continued positive sales momentum Cash and bank balances S$27.2m Net cash with no borrowings CAPEX (consolidated) S$799k S$1.2m FY2025 CAPEX +8.7% yoy S$9.6m 1HFY2025 +13.7% yoy+12.5% yoy +1.2 ppt yoy S$23.3m 30 Jun 2025
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16 Revenue growth led by consumable tools sales Sustained demand for higher-value products drove consumable tools to a 14-quarter high Revenue by business segments (S$m) • Revenue increase of 14.5% yoy to S$18.7 million was led by growth in consumable tools segment • WFE sales grew 5.8% yoy and 27.2% qoq to S$3.8 million, driven by increased orders and recovery from material delays and shortages for 1QFY2026 2QFY2026 S$18.7m +14.5% yoy (2QFY2025:S$16.3m) +11.6% qoq (1QFY2026: S$16.7m) 25.5 28.6 7.1 6.8 1HFY2025 1HFY2026 Consumable tools WFE +8.7% yoy 12.7 14.9 3.6 3.8 2QFY2025 2QFY2026 Consumable tools WFE +14.5% yoy • Revenue increase of 8.7% yoy to S$35.4 million was led by growth in consumable tools segment • WFE segment sales fell 4.6% yoy to S$6.8 million despite increased orders, impacted by material delays and shortages for 1QFY2026 1HFY2026 S$35.4m +8.7% yoy (1HFY2025:S$32.5m) Note: Due to rounding, some totals in numbers (in this and the following slides) may not correspond with the sum/subtraction of sep arate figures.
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17 China 31.94% USA 22.42% Malaysia 18.26% Singapore 8.21% The Philippines 4.96% Taiwan 5.45% Rest of world 8.76% China 36.35% USA 20.16% Malaysia 17.64% Singapore 8.03% The Philippines 5.23% Taiwan 5.21% Rest of world 7.39% 1HFY2025 Geographical diversification of revenue Group’s decentralised structure supports resilience across markets Revenue from top four markets 1HFY2025 S$m 1HFY2026 S$m yoy% change China 10.4 12.9 23.7 USA 7.3 7.1 (2.3) Malaysia* 5.9 6.2 5.0 Singapore 2.7 2.8 6.3 1HFY2026 * The figure for Malaysia was previously misstated and has now been corrected.
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18 Continued uplift in gross profit and EBITDA Supported by stronger customer engagements and enhanced manufacturing processes 15,967 178 -1,574 -4,791 -1,691 8,090 3,095 11,185 1HFY2026 (S$, ‘000)1HFY2025 (S$, ‘000) 18,135 149 -1,624 -5,228 -1,797 9,635 2,950 12,585 • 3.2% yoy increase in distribution costs, attributable to higher sales-incentives payouts • 9.1% yoy increase in administrative expenses, primarily due to higher legal and professional costs, along with performance incentives • 6.3% yoy increase in other operating expense, mainly driven by higher personnel costs
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19 Steady expansion of GP and EBITDA margins Continued focus on cost efficiencies and operational excellence 8.2 7.7 16.0 8.6 9.5 18.1 1QFY2025 2QFY2025 1HFY2025 1QFY2026 2QFY2026 1HFY2026 50.7% 47.5% 49.1% 51.5% 51.1% 5.8 5.4 11.2 5.9 6.6 12.6 1QFY2025 2QFY2025 1HFY2025 1QFY2026 2QFY2026 1HFY2026 35.7% 33.0% 34.4% 35.5% 35.6% 35.6%51.3% +23% +14% +23% +13% GP & GP margin (S$m) EBITDA & EBITDA margin (S$m) Margin Margin
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20 Sustained positive operating cash flow generation Testament to robust and healthy working capital cycles Operating cash flow (S$m) 4.5 6.1 3.6 4.1 4.5 6.3 6.2 3.4 5.5 4.9 7.1 1.6 3.2 3.9 7.3 3.8 4.4 4.8 FY2022 FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q
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21 Resilient financial position Strong balance sheet to support investing for growth As at 30 Jun 2025 As at 31 Dec 2025 Cash Cash and bank balances S$23.3M S$27.2M Gearing Total borrowings NIL NIL Trade receivables Trade Receivables (Outstanding > 90days) / (Total trade receivables) Bad debt expenses S$12.5M S$2.0K NIL S$13.2M S$11.7K S$2.7K Inventory Inventory Inventory / Sales Inventory write-off1 S$3.1M 4.8% S$166K S$3.7M 5.3% S$43K Net asset value NAV per ordinary share (cents) 35.40 37.82 Equity Shareholders’ equity S$49.2M S$52.6M Note: 1) The inventory write-off as at 30 Jun 2025 reflects write -offs for FY2025, while the figure as at 31 Dec 2025 reflects w rite-offs for 1HFY2026
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22 Notes: 1) Bloomberg; for the period 24 June 2003 (IPO) until 3 1 December 2025; which represents the additional number of shares purchased in the period for each share at the beginning of th e period, assuming dividends are reinvested through buying more of the security. STI returned 524% while FTSE ST All Share Index returned 459% during the same period. 2) Dividend payout ratio for 1HFY2026 3.0 cents 1HFY2026 interim dividend Dividend payout ratio2 60.8% Cumulative dividend per share 137.9 cents since listing Commitment to long-term total shareholder returns (TSR) Listing to date TSR of >3,000%1 reflects Group’s sustainable and long-term growth trajectory
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23 Cumulative dividends represent >700% shareholder returns Total dividend payout of 137.9 cents per share since listing Total dividend per share (cents) 0.80 1.00 1.50 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 3.00 4.00 4.00 5.00 6.00 6.00 6.00 3.00 3.00 3.00 0.80 1.20 1.60 2.50 2.50 3.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 4.00 5.00 5.00 5.00 6.00 6.00 3.00 3.00 3.001.00 2.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 0 2 4 6 8 10 12 14 16 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1HFY2026 Special Final Interim
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Outlook & summary Micro-Mechanics’ facility in Suzhou, China (MMSU)
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25 Upward revision supported by uptick in Logic and Memory demand, underpinned by AI-related application and data centre infrastructure Supported by uptick in demand across all regions and product categories, with sustained momentum in Logic and Memory Encouraging sector performance and outlook Industry continuing to show strong sales momentum 216 232 298 272 281 340 356 208 258 303 247 291 346 0 100 200 300 400 500 600 700 800 900 1,000 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026F Worldwide semiconductor revenue in US$ (billion)1 1H (July - Dec) 2H (Jan - Jun) Sales forecast for end-20252 US$772b Source: 36 Years WSTS Blue Book Historical Billings Report (Nov 2025) Source: WSTS Sales forecast for 20262 US$975b Source: WSTS 2025F +26.3% Notes: 1) Presented with Micro-Mechanics’ calendar cycle (July – Jun); 2) WSTS’ calendar cycle (Jan – Dec)
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26 To be a leading Next Generation Supplier of high precision tools and parts used in process-critical applications for the wafer-fabrication and assembly processes of the semiconductor industry Prioritising disciplined capital management & good governance Advancing Five-Star Factory initiative • Maintaining resilient working capital cycle to consistently generate positive operating and free cash flow • Allocating capital strategically to growth areas, including product development for Advanced Packaging and equipment for WFE manufacturing • Expect higher capital expenditure of S$2.3 million in 2HFY2026 • Keeping good governance as a cornerstone for long-term success • Provide customers with fast, effective and local support across all five factories • Exploring market growth plans in Arizona which is attracting both WFE and Advanced Packaging investments by major chip makers • Actively working to promote fresh thinking, ingenuity and the adoption of new technologies, leading to both product and process improvements. • Continued efforts to improve planning, streamline manufacturing and minimise inventory • Progressing towards “Five-Star 8S” rating across all five plants Strategic priorities for FY2026 Strengthening proposition and operational resilience to enhance enterprise value FY2026
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Investment highlights Positioned for high-quality earnings and sustainable growth 27 Favourable industry outlook • Continued positive momentum from semiconductor industry’s recovery Diversified customer base • Serving more than 600 clients across front-end and back-end segments worldwide • Positive momentum from industry’s recovery Geopolitical resilience • Decentralised structure and Singapore listing offer a buffer against geopolitical risks • Insulated from tariff effects as MMH mostly serves domestic market Positive momentum and earnings accretion from High quality earnings and cash flow • Gross profit margin expansion and high ROE (>20%) • Consistent generation of positive and free cash flow • Serving more than 600 clients across front-end and back- end segments worldwide Committed to strong total shareholder returns • Strong track record across market cycles delivering shareholder returns with TSR of >3,000% since listing
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Safe harbour for forward-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 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. Although Micro-Mechanics (Holdings) Ltd. believes that these expectations, projections, and assumptions are reasonable, these forward-looking statements are subject 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 we conduct 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 not occur and actual results may differ materially from those expressly or impliedly anticipated in these forward-looking statements. 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 since that day. Micro- Mechanics (Holdings) Ltd. has no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. 28
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Thank you For more information, please contact investor relations at micro-mechanics@teneo.com