Aac Technologies Holdings Inc. · HKEX:2018

Aac Technologies — Q4 2019 Earnings Presentation

18 slides from Aac Technologies's earnings presentation, Mar 25, 2020

  1. Slide 1: 2019 4Q Results

    AAC TECHNOLOGIES HOLDINGS INC. (Incorporated in the Cayman Islands with limited liability) (Stock code: 2018 HK) 2019 4Q Results 25 March 2020

  2. Slide 2: 2019 and 4Q 2019 highlights

    2019 and 4Q 2019 highlights (RMB) Revenue Gross Profit GP Net Margin Profit 2019 17.9 B 5.1 B 28.6% 2.2 B 2018 18.1 B 6.7 B 37.2% 3.8 B YoY -1.4% -24.3% - 8.6 p.p -41.5% 4Q19 5.3 B 1.5 B 29.0% 0.8 B 3Q19 5.0 B 1.5 B 29.6% 0.7 B 4Q18 4.8 B 1.8 B 38.1% 1.0 B QoQ 5.9% 3.8% - 1 p.p 8.9% YoY 9.6% -16.5%

  3. Slide 3: Effective financial management & solid Cash Position

    Effective financial management & solid Cash Position  Operating cash inflow of RMB3.8bn for FY2019, more than enough to cover the capital expenditure  Disciplined and manageable capex with RMB3.0 bn spent during 2019 (>30% on optics; 20% on acoustics)  Net gearing remains healthy at 10.5% as at D

  4. Slide 4: Investing in future sustainable growth

    Investing in future sustainable growth No. of Patents FY2019 5,000 +41% YoY Korea 4,500 Denmark Japan 4,000 Suwon 3,500 US Copenhagen Osaka Aalborg 3,000 Irvine 2,500 Finland China 2,000 Turku 1,500 Tampere Beijing, Wuhan, 1,000 Singapore Nanjing, 500 Changzhou, - Suzhou, FY14 FY15 FY16 FY17 FY18 FY

  5. Slide 5: Optics – delivering growth

    Optics – delivering growth Performance Review Outlook  FY19 revenue +94% to RMB 1.07Bn; 4Q19 revenue +150% YoY/+9%  6P, 7P, Tele, wide, small camera, main Plastic Lens: Speed up development of QoQ to RMB 0.34Bn camera, TOF lens. Estimated 100 million+ units will be tested by  ASP increase for the

  6. Slide 6: Performance by business segments

    Performance by business segments

  7. Slide 7: Acoustics

    Acoustics FY19 FY18 YoY 4Q19 3Q19 4Q18 4Q19 QoQ 4Q19 YoY Revenue (RMB mn) 8,167 8,675 -5.8% 2,241 2,280 1,880 -1.7% 19.2% GP Margin 31.0% 37.2% -6.2p.p. 30.3% 33.3% 34.6% -3.1p.p. -4.4 p.p. Gross Profit(RMB mn) 2,536 3,228 -21.5% 678 760 651 -10.7% 4.2% Performance in 4Q19 Outlook  To start the mas

  8. Slide 8: Electromagnetic Drives (ED) and Precision Mechanics (PM)

    Electromagnetic Drives(ED) and Precision Mechanics(PM) FY19 FY18 YoY 4Q19 3Q19 4Q18 4Q19 QoQ 4Q19 YoY Revenue (RMB mn) 7,694 8,073 -4.7% 2,457 2,118 2,615 16.0% -6.0% GP Margin 29.8% 40.6% -10.8 p.p. 30.5% 29.5% 44.8% +1.0 p.p. -14.2 p.p. Gross Profit(RMB mn) 2,280 3,275 -30.4% 750 626 1,171 19.9% -

  9. Slide 9: Micro-electromechanical systems (MEMS)

    Micro-electromechanical systems (MEMS) FY19 FY18 YoY 4Q19 3Q19 4Q18 4Q19 QoQ 4Q19 YoY Revenue (RMB mn) 929 814 14.0% 260 289 202 -10.0% 28.6% GP Margin 27.5% 26.6% +0.9 p. p. 29.3% 31.3% 26.9% -2.0 p.p. +2.4 p.p. Gross Profit(RMB mn) 256 217 17.9% 76 90 54 -15.8% 40.1% Performance in 4Q19  Revenue

  10. Slide 10: Efforts on sustainability

    Efforts on sustainability Key Benchmarks Disclosure Adhered to International Standards Select Ratings & Rankings BBB GRI Standards ESG data assurance AA Score 76.9/100 <IR> Framework ESG Reporting Guide Alignment on track 60 ESG score TCFD recommendations UNSDGs 9

  11. Slide 11: Efforts on sustainability (Cont’)

    Efforts on sustainability (Cont’) Major Awards & Recognitions  Certificate of Excellence of the Hong Kong Sustainability Award 2018/19 Organization Award  Special Mention in the H-share  Best ESG Report (Large Cap) Companies and Other Mainland  Best in Reporting (Large Cap)  Citation for Enviro

  12. Slide 12: Appendices

    EERIE PRA) AAC TECHNOLOGIES HOLDINGS INC.

  13. Slide 13: Appendix-AAC’s key product lines

    Appendix-AAC’s key product lines Acoustics Electromagnetic Drives Optics Haptics Exciter, Stepper motor Hybrid Plastic Camera Speaker, Acoustic MEMS audio module lens lens module receiver modules microphone display Precision Processing High-speed RF/Antenna Powered hinge Transmission LDS LCP FPC Con

  14. Slide 14: Appendix-Major segments creating synergies together

    Appendix-Major segments creating synergies together Haptic / 3D Glass/ Acoustics MEMS ED Optics Metallic RF Solutions Components Components Casing In-house Integrated Electromagnetic Special Metallic RF Front-end Seamless Expertise Moulding Integration Design • Develop total solutions by cross-platf

  15. Slide 15: Appendix-Diversified manufacturing bases in Asia Pacific

    Appendix-Diversified manufacturing bases in Asia Pacific Shuyang Ma’Anshan • Acoustics (Automation) • Chemical treatment • Electromagnetic drives • Precision parts • RF/antenna • Precision processing Xiamen • MEMS Changzhou • Acoustics • Precision processing (3D glass) • Electromagnetic drives Nanni

  16. Slide 16: Appendix-Returning to shareholders via dividends and buyback

    Appendix-Returning to shareholders via dividends and buyback  Dividend for FY2019 is HK$0.40  In order to maximize the liquidity of the Group, no dividends was paid in the end of FY2019  During FY19, RMB1.81 Bn was spent on paying dividend and share buyback Returning to shareholders via Rewarding

  17. Slide 17: Investors information

    Investors information STOCK CODE CONTACT INVESTOR RELATIONS The Stock Exchange of Hong Kong Limited: Company website: https://www.aactechnologies.com/en/ 2018 Bloomberg: 2018: HK Email : aac2018@aactechnologies.com Reuters: 2018.HK Official IR wechat: ISIN: KYG2953R1149 MAJOR MARKET INDEXES Constitu

  18. Slide 18: Disclaimer

    Disclaimer  The performance and the results of operation of AAC Technologies set out in this presentation are historical in nature and past performance is not a guarantee of future performance.  Certain statements made herein are forward-looking or which use certain forward-looking terminologies.

AAC Technologies Holdings — Q4 2019 Earnings Presentation on 6ix