Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — FY2008 Earnings Presentation
20 slides from Solomon Systech (International)'s earnings presentation, Mar 25, 2009
Slide 1: Solomon Systech (International) Limited 2008 Annual Results Announcement
Solomon Systech (International) Limited 2008 Annual Results Announcement 25 March 2009 Hong Kong
Slide 2: Table of contents
Table of contents ` Summary ` Financial Review ` Business Review ` Outlook SSIL 2008 Annual Results Announcement 25Mar2009 P. 2
Slide 3: Summary
Summary SSIL 2008 Annual Results Announcement 25Mar2009 P. 3
Slide 4: Results summary
Results summary ` Unit shipment 115 mu ` Sales US$92.8 million ` Net loss US$23.4 million ` Basic loss per share 7.5 HK cents ` Final dividend per share 3 HK cents ` Book to Bill ratio 0.82 SSIL 2008 Annual Results Announcement 25Mar2009 P. 4
Slide 5: Financial Review
Financial Review SSIL 2008 Annual Results Announcement 25Mar2009 P. 5
Slide 6: Profit and loss
Profit and loss Twelve months ended 31 Dec YoY (US$ million) 2008 2007 Change Sales 92.8 165.0 -44% Gross profit 16.9 39.5 -57% Gross margin 18.2% 23.9% Net (loss) / profit (23.4) 10.2 Net margin -25.2% 6.2% (HK cents) (Loss)/earnings per share* -7.5 3.3 Dividends per share 3.0 3.0 Book to Bill rati
Slide 7: Profit and loss delta analysis '08 vs '07
Profit and loss delta analysis ’08 vs ’07 US$10.2m W ‘07 Net Profit: US$17.8m z Gross Profit with Lower Sales US$4.7m z Inventory Provision US$1.2m z Operating Expense US$4.9m z Financial Assets at Fair Value US$4.6m z Investment Impairment US$3.4m z Interest Income US$3.0m z Tax Expense US$23.4m X
Slide 8: Balance sheet
Balance sheet As at 31 As at 31 YoY (US$ million) Dec 2008 Dec 2007 Change Total assets 162.3 202.4 -20% Total borrowings Nil Nil N/A Shareholders’ funds 143.8 172.1 -16% Net cash 110.9 137.8 -20% (HK cents) Shareholders’ funds per share 46 55 -16% Net cash per share 35 44 -20% SSIL 2008 Annual Resu
Slide 9: Net cash delta analysis '08 vs '07
Net cash delta analysis ’08 vs ‘07 ` Net Cash @ 31st Dec: ` US$110.9m (’08) vs $137.8m (‘07) - US$26.9m ` Major Cash Outflow ` Dividend Payout: - US$ 6.3m ` Strategic Investment - US$ 5.6m ` Plant, Property & Equipment - US$ 4.9m ` Financial Assets - US$17.7m ` Major Cash Inflow ` Interest Received
Slide 10: Business Review
Business Review SSIL 2008 Annual Results Announcement 25Mar2009 P. 10
Slide 11: Blended average selling price
Blended average selling price ` 2008 blended ASP = US$0.81, down 15% YoY HoH YoY 2.5 1.96 50% Blended Unit ASP (US$) 2 Blended ASP Change 1.54 1.5 1.5 1.11 0.95 1 0% 0.81 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 0.5 0 2003 2004 2005 2006 2007 2008 -50% SSIL 2008 Annual Results Announcement
Slide 12: Unit shipment distribution
Unit shipment by product line ` Mono & Color STN: 45 mu ` m-TFT: 37 mu ` OLED: 25 mu ` New Display: 8 mu ` Display System: Initial shipment Balanced shipment in different product applications. mono STN CSTN m-TFT OLED New Display System Others mono STN CSTN m-TFT OLED New Display System Others 300 1
Slide 13: 2008 End Product Examples
2008 End Product Examples Business, Market and Application Diversification Mobile Display, OLED Display and New Display Health Care Electronic Mobile Phone MP3 GPS Product Shelf Label Display System Solution Smart Phone Mobile Digital TV Mobile Phone SSIL 2008 Annual Results Announcement 25Mar2009 P
Slide 14: Outlook
Outlook SSIL 2008 Annual Results Announcement 25Mar2009 P. 14
Slide 15: 1. Business Transformation
1. Business Transformation From To IC component application system solution ` Display Panel ` Display System Electronics Businesses Solution Businesses ` Mobile Display ` Display System ` OLED Display Solution ` New Display MDTV System Display IC ` Green Power LED Lighting SSIL 2008 Annual Results A
Slide 16: 2. Market Application Transformation
2. Market Application Transformation From To consumer electronics and mobile phone industrial applications GPS Electronic Shelf Label Mobile Digital TV (MDTV) Mobile Phone MP3 Players Portable Media Player (PMP) Health Care Product LED Lighting SSIL 2008 Annual Results Announcement 25Mar2009 P. 16
Slide 17: 3. Revenue Transformation
3. Revenue Transformation From To single multiple revenue streams ` IC component Sales ` Solution Sales ` Software ` Printed Circuit Board Assembly ` Modules ` Royalty ` Design service fees ` End Product Sales ` Recurring S/W income SSIL 2008 Annual Results Announcement 25Mar2009 P. 17
Slide 18: 4. Expertise Transformation
4. Expertise Transformation From To IC know-how software and system design expertise ` 2007 ` 2008 ` IC engineer: 94% ` IC engineer: 85% ` software engineer: 6% ` software engineer: 15% ` IDH: 0 ` IDH: 2 % is of the total R&D engineers IDH: Independent Design House SSIL 2008 Annual Results Announcem
Slide 19: 5. Effectiveness Transformation
5. Effectiveness Transformation Continuous improvement ` Business alignment ` Display System Solution BU and IDHs ` Green Power BU with investment in LED suppliers ` Organizational effectiveness ` 2009 operating cost reduction > 20% ` Operational efficiency SSIL 2008 Annual Results Announcement 25Ma
Slide 20: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com SSIL 2008 Annual Results Announcement 25Mar2009 P. 20
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