Solomon Systech (International) Ltd. · HKEX:2878

Solomon Systech (International) — H1 2005 Earnings Presentation

21 slides from Solomon Systech (International)'s earnings presentation, Sep 7, 2005

  1. Slide 1: Interim Results Presentation 2005

    Interim Results Presentation 2005

  2. Slide 2: Table of contents

    www.solomon-systech.com Table of contents • Summary • Financial review • Business review • Outlook SSIL 2005 Interim Results 7 Sept 2005 P. 2

  3. Slide 3: Summary

    www.solomon-systech.com Summary SSIL 2005 Interim Results 7 Sept 2005 P. 3

  4. Slide 4: Summary – Continuing to deliver

    www.solomon-systech.com Summary – Continuing to deliver • Turnover up 69%, year-on-year • Net profit growth of 62% • EPS reaching 11.7 HK cents for the 6-month period • Dividend per share of 4.0 HK cents • Global market share in mobile display ICs approaching 20% SSIL 2005 Interim Results 7 Sept 200

  5. Slide 5: Financial Review

    www.solomon-systech.com Financial Review SSIL 2005 Interim Results 7 Sept 2005 P. 5

  6. Slide 6: Profit and loss

    www.solomon-systech.com Profit and loss Six months ended 30 June YoY (US$ million) 2005 2004 Change Turnover 185.7 110.1 69% Gross profit 57.9 39.7 46% Profit attributable to 36.3 22.5 62% shareholders (HK cents) Earnings per share* 11.7 8.4 39% Dividends per share 4.0 2.6 54% * EPS calculation is b

  7. Slide 7: Balance sheet

    www.solomon-systech.com Balance sheet As at 30 As at 30 (US$ million) June 2005 June 2004 Change Total assets 238.2 190.9 25% Total borrowings Nil Nil N/A Shareholders’ funds 176.3 148.7 19% Net cash 149.9 124.4 20% (HK cents) Shareholders’ funds per share 55 46 20% Net cash per share 47 39 21% Note

  8. Slide 8: Adopting of new accounting standards

    www.solomon-systech.com Adopting of new accounting standards • Effective date January 1, 2005 • Impact immaterial • One standard worth mentioning SSIL 2005 Interim Results 7 Sept 2005 P. 8

  9. Slide 9: HKFRS 2 – Share based payments

    www.solomon-systech.com HKFRS 2 – Share based payments • Its impact on SSIL can be summarized below: Impact on 2005E 2006P 2007P Expense (as % of revenue) <1.0%a ~1.5%b ~2.0%b Dilution (increase in no. of shares) ~0.2% ~0.2% ~1.0% * The dollar value impact on expense is reflected as a percentage of

  10. Slide 10: Historical financials

    www.solomon-systech.com Historical financials Turnover Net Profit US$m US$m 200 40 CAGR 100% CAGR 94% 150 30 100 20 185.7 36.3 50 10 0 0 1H 2003 1H 2004 1H 2005 1H 2003 1H 2004 1H 2005 SSIL 2005 Interim Results 7 Sept 2005 P. 10

  11. Slide 11: Historical financials

    www.solomon-systech.com Historical financials Earnings Per Share Shareholders’ Funds HK cents US$m 16 200 CAGR 80% CAGR 88% 12 150 8 100 176.3 11.7 4 50 0 0 1H 2003 1H 2004 1H 2005 1H 2003 1H 2004 1H 2005 SSIL 2005 Interim Results 7 Sept 2005 P. 11

  12. Slide 12: Business Review

    www.solomon-systech.com Business Review SSIL 2005 Interim Results 7 Sept 2005 P. 12

  13. Slide 13: Units shipment by product line

    www.solomon-systech.com Units shipment by product line 120 100 LARGE PANEL Units (million) 80 OTHERS OLED 60 m-TFT 40 CSTN MONO 20 0 1H 2002 1H 2003 1H 2004 1H 2005 Source: Solomon Systech SSIL 2005 Interim Results 7 Sept 2005 P. 13

  14. Slide 14: Change in blended ASP

    www.solomon-systech.com Change in blended ASP 60% 40% 20% 0% -20% -40% 1H 2H 1H 2H 1H 2H 1H 2002 2003 2004 2005 Note: Half-on-half change in blended ASP Source: Solomon Systech SSIL 2005 Interim Results 7 Sept 2005 P. 14

  15. Slide 15: Gross margin and market share

    www.solomon-systech.com Gross margin and market share Gross margin SSIL market share (RHS) 50% 25% 40% 20% 30% 15% 20% 10% 10% 5% 0% 0% 2002 2003 2004 1H 2005 Assumptions: (1) Mobile handsets with dual display as a percentage of overall mobile handsets shipped in the previous years are 15% (2001), 2

  16. Slide 16: What we delivered in the first half?

    www.solomon-systech.com What we delivered in the first half? • m-TFT display ICs for 3G phone Mobile display • OLED display ICs for MP3 player • TFT driver ICs for LCD TV, Large display monitor and notebook • Controller ICs for New display micro-display applications SSIL 2005 Interim Results 7 Sept

  17. Slide 17: New awards in the first half

    www.solomon-systech.com New awards in the first half 2005 International ARC Awards Overall Annual Report Gold Award - Technology Consulting 2004 Employer of the Year Award - Manufacturing SSIL 2005 Interim Results 7 Sept 2005 P. 17

  18. Slide 18: Outlook

    www.solomon-systech.com Outlook SSIL 2005 Interim Results 7 Sept 2005 P. 18

  19. Slide 19: General views on the second half

    www.solomon-systech.com General views on the second half • Demand for mobile handsets and MP3 players • New products and customers • Stability of wafers supply • Cost of sales • Pricing pressure • Competition Most favorable Most unfavorable SSIL 2005 Interim Results 7 Sept 2005 P. 19

  20. Slide 20: Expected units growth of 2H versus 1H

    www.solomon-systech.com Expected units growth of 2H versus 1H MONO CSTN M-TFT OLED OTHERS 0 - 50% 50 - 100% >100% Growth Note: Others include large display driver ICs and new display products SSIL 2005 Interim Results 7 Sept 2005 P. 20

  21. Slide 21: Thank You

    www.solomon-systech.com Thank You Solomon Systech (International) Limited Stock code: 2878 SSIL 2005 Interim Results 7 Sept 2005 P. 21

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