Solomon Systech (International) Ltd. · HKEX:2878

Solomon Systech (International) — FY2004 Earnings Presentation

23 slides from Solomon Systech (International)'s earnings presentation, Mar 9, 2005

  1. Slide 1: 2004 Annual Results Announcement

    Solomon Systech (International) Limited 2004 Annual Results Announcement 9 March 2005 Hong Kong

  2. Slide 2: Table of Contents

    www.solomon-systech.com TABLE OF CONTENTS • Summary • Financial Review • Business Review • Outlook • Corporate Directions SSIL 2004 Annual Results 9 March 2005 P. 2

  3. Slide 3: Summary

    www.solomon-systech.com Summary SSIL 2004 Annual Results 9 March 2005 P. 3

  4. Slide 4: Remarkable Results – We Make Things Happen

    www.solomon-systech.com REMARKABLE RESULTS – WE MAKE THINGS HAPPEN • Increase in turnover, up 182% • Net profit growth of 161% • EPS reaching 19.3 HK cents for the year • Full year dividends per share 14.6 HK cents • Gaining market share in mobile display IC area • A leading global display ICs produ

  5. Slide 5: Financial Review

    www.solomon-systech.com Financial Review SSIL 2004 Annual Results 9 March 2005 P. 5

  6. Slide 6: Profit and Loss

    www.solomon-systech.com PROFIT AND LOSS For the year ended December YoY (US$ million) 2004 2003 Change Turnover 308.2 109.3 182% Gross profit 96.6 46.0 110% Profit attributable to 59.2 22.7 161% shareholders (HK cents) Earnings per share 19.3 8.5 127% Dividends per share 14.6 6.6 121% Interim 2.6 --

  7. Slide 7: Balance Sheet

    www.solomon-systech.com BALANCE SHEET As at 31 As at 31 (US$ million) Dec 2004 Dec 2003 Change Total assets 249.7 81.6 206% Total borrowings Nil Nil NA Shareholders’ funds 176.6 49.9 254% Net cash 125.3 37.2 237% (HK cents) Shareholders’ funds per share 55 21 162% Net cash per share 39 15 160% Note:

  8. Slide 8: Historical Financials

    www.solomon-systech.com HISTORICAL FINANCIALS Turnover Net profit US$m US$m 350 70 CAGR 102% CAGR 180% 300 60 250 50 200 40 150 308 30 59.2 100 20 50 10 0 0 2001 2002 2003 2004 2001 2002 2003 2004 SSIL 2004 Annual Results 9 March 2005 P. 8

  9. Slide 9: Historical Financials

    www.solomon-systech.com HISTORICAL FINANCIALS Shareholders’ funds Return on equity (%) US$m 200 60% CAGR 88% 50% 160 40% 120 30% 177 52% 80 20% 40 10% 0 0% 2001 2002 2003 2004 2001 2002 2003 2004 SSIL 2004 Annual Results 9 March 2005 P. 9

  10. Slide 10: Business Review

    www.solomon-systech.com Business Review SSIL 2004 Annual Results 9 March 2005 P. 10

  11. Slide 11: Units Shipment and ASP

    www.solomon-systech.com UNITS SHIPMENT AND ASP US$ 180 2.2 160 140 2.0 Units (million) 120 OTHERS 1.8 m-TFT 100 OLED 80 1.6 CSTN 60 1.4 MONO 40 ASP (RHS) 1.2 20 0 1.0 2001 2002 2003 2004 Note: Others include graphic controllers, PDA etc. SSIL 2004 Annual Results 9 March 2005 P. 11

  12. Slide 12: Market Share

    www.solomon-systech.com MARKET SHARE Global handset shipment SSIL market share (RHS) 800 20% 700 600 15% Units (million) 500 400 10% 300 200 5% 100 0 0% 2001 2002 2003 2004 Assumptions: (1) Mobile handsets with dual display as a percentage of overall mobile handsets shipped in the previous years are

  13. Slide 13: Market Share and Margin

    www.solomon-systech.com MARKET SHARE AND MARGIN Gross margin Net margin SSIL market share (LHS) 20% 50% 40% 15% 30% 10% 20% 5% 10% 0% 0% 2001 2002 2003 2004 SSIL 2004 Annual Results 9 March 2005 P. 13

  14. Slide 14: New Products – Mobile

    www.solomon-systech.com NEW PRODUCTS – MOBILE Monochrome UT Putian TCL STN Starcom Sony Color STN Nokia LG Ericsson OLED Motorola Samsung Philips m-TFT Motorola Motorola Motorola SSIL 2004 Annual Results 9 March 2005 P. 14

  15. Slide 15: New Products – Non Mobile

    www.solomon-systech.com NEW PRODUCTS – NON MOBILE E-paper Graphics controller OLED products (Flexible watch) (Coffee machine & printer) (MP3 player) SSIL 2004 Annual Results 9 March 2005 P. 15

  16. Slide 16: New Customers

    www.solomon-systech.com NEW CUSTOMERS Business with Solomon Systech 30 No. of customers 25 20 15 >US$ 5m >US$ 1m 10 5 0 2003 2004 SSIL 2004 Annual Results 9 March 2005 P. 16

  17. Slide 17: Awards

    www.solomon-systech.com AWARDS • From technology to corporate • From industry to investment community • From region to global • …as well as from customers SSIL 2004 Annual Results 9 March 2005 P. 17

  18. Slide 18: Outlook

    www.solomon-systech.com Outlook SSIL 2004 Annual Results 9 March 2005 P. 18

  19. Slide 19: Growth Drivers

    www.solomon-systech.com GROWTH DRIVERS • Expected healthy growth from color display ICs for mobile handsets, in particular CSTN and m-TFT areas • Increasing popularity of OLED display in MP3 player applications • Volume shipment of large display driver ICs commencing in the first half of 2005 SSIL 2

  20. Slide 20: Other Business Opportunities

    www.solomon-systech.com OTHER BUSINESS OPPORTUNITIES • Graphic controllers for high-end equipment • Multimedia chips for mobile phone applications • Micro display ICs used in applications such as digital camera and head mount device • Potentially large market for e-paper applications, for examples,

  21. Slide 21: Corporate Directions

    www.solomon-systech.com Corporate Directions SSIL 2004 Annual Results 9 March 2005 P. 21

  22. Slide 22: Corporate Directions

    www.solomon-systech.com CORPORATE DIRECTIONS • Being a dominant global display IC products provider • Broadening display IC product portfolios • Increasing market share, by enlarging global customers base and the product applications • Exploring non organic growth opportunities • Enhancing corporate

  23. Slide 23: Thank You

    www.solomon-systech.com Thank You Solomon Systech (International) Limited Stock code: 2878 SSIL 2004 Annual Results 9 March 2005 P. 23

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