Slide 1: 4Q11 Operation Review & Business Update
4Q11 Operation Review & Business Update March 2, 2012
Slide 2: Agenda
Agenda Financial Review Ralio Sung Business Update & Outlook A.P. Chen Q&A All numbers are consolidated and unaudited unless otherwise specified.
Slide 3: Financial Review
Financial Review 1
Slide 4: 4Q11 Income Statement & QoQ Comparison
4Q11 Income Statement & QoQ Comparison 4Q11 3Q11 QoQ % Unit: NT$ million AMT % AMT % Change Net Sales 8,132 100.0 8,551 100.0 (4.9) Cost of Goods Sold - Product 5,644 69.4 5,759 67.3 (2.0) Gross Profit 1 2,488 30.6 2,792 32.7 (10.9) Inventory Related Gain/(Loss) (47) (0.6) (101) (1.2) (53.4) Gross P
Slide 5: 4Q11 Non-op Income/Loss & QoQ Comparison
4Q11 Non-op Income/Loss & QoQ Comparison QoQ % Unit : NT$ million 4Q11 3Q11 Change 71 101 (29.7) Investment Income 162 101 60.4 Sub./Aff. (91) 0 NA Capital Loss FX Gain/(Loss) (11) (193) NA Fin. Income/(Exp.) & Other 74 81 (13.6) Total 134 (11) NA * The numbers are consolidated and the net income is
Slide 6: 4Q11 Income Statement & YoY Comparison
4Q11 Income Statement & YoY Comparison 4Q11 4Q10 YoY % Unit: NT$ million AMT % AMT % Change Net Sales 8,132 100.0 9,144 100.0 (11.1) Cost of Goods Sold - Product 5,644 69.4 6,324 69.2 (10.8) Gross Profit 1 2,488 30.6 2,820 30.8 (11.8) Inventory Related Gain/(Loss) (47) (0.6) (110) (1.2) (57.3) Gross
Slide 7: 2011 Income Statement & YoY Comparison
2011 Income Statement & YoY Comparison 2011 2010 YoY % Unit: NT$ million AMT % AMT % Change Net Sales 32,506 100.0 33,857 100.0 (4.0) Cost of Goods Sold - Product 21,971 67.6 22,893 67.6 (4.0) Gross Profit 1 10,535 32.4 10,964 32.4 (3.9) Inventory Related Gain/(Loss) (202) (0.6) (384) (1.1) (47.4) G
Slide 8: 12/31/2011 Balance Sheet & QoQ Comparison
12/31/2011 Balance Sheet & QoQ Comparison 12/31/11 09/30/11 QoQ % Unit: NT$ million % % AMT AMT Change Cash 5,320 20 5,831 21 (8.8) S-T Investment 322 1 187 1 72.2 Account Receivable 5,456 20 6,361 23 (14.2) Inventory 7,392 28 7,117 26 3.9 Long-term Investments 4,818 18 4,929 18 (2.3) Total Assets 2
Slide 9: Key Financial Ratios
Key Financial Ratios Unit: % , days 12/31/11 09/30/11 06/30/11 03/31/11 12/31/10 * Days A/R 62 67 66 67 64 * Days Inventory 107 105 101 95 81 *Days A/P 106 105 93 89 99 Cash Cycle 70 67 62 68 56 Current Ratio 1.66 1.63 1.59 2.19 2.13 Debt/Equity Ratio 0.86 0.92 0.96 0.73 0.75 **Net Debt/Equity Ratio
Slide 10: Business Update & Outlook
Business Update & Outlook 8
Slide 11: Quarterly Revenue by Region
Quarterly Revenue by Region In NT$, down 4.9% QoQ, down 11.1% YoY In US$, down 8.4% QoQ, down 9.3% YoY N.A. down 14.2% QoQ, down 35.4% YoY N.A. down 17.9% QoQ, down 34.4% YoY Europe up 15.6% QoQ, down 20.7% YoY Europe up 11.9% QoQ, down 18.6% YoY Emerging Mkts & APac down 8.9% QoQ, up 2.1% YoY Emerg
Slide 12: Quarterly Revenue by Product
Quarterly Revenue by Product 4Q11 In NT$ terms: In US$ terms: Switch down 11.3% QoQ, down 12.6% YoY Switch down 14.6% QoQ, down 10.7% YoY Wireless down 2.9% QoQ, down 5.8% YoY Wireless down 6.8% QoQ, down 4.2% YoY B.B. down 6.8% QoQ, down 31.1% YoY B.B. down 10.6% QoQ, down 28.2% YoY D.H. up 5.2% Qo
Slide 13: 2011 Revenue by Region
2011 Revenue by Region 2011 revenue YoY comparison: In NT$ terms: In US$ terms: 2011 down 4% 2011 up 3.2% Emerging Mkts & AsiaPac up 5.7% Emerging Mkts & AsiaPac up 13.6% NT$ mln Europe down 15.4% Europe down 9.3% N.A. down 18.4% N.A. down 12.3% 40,000 30,000 62% 57% 20,000 10,000 25% 22% 18% 16% 0
Slide 14: 2011 Revenue by Product
2011 Revenue by Product 2011 revenue YoY comparison: In NT$ terms: In US$ terms: Switch down 8.6% Switch down 1.4% Wireless down 0.8% Wireless up 6.4% Broadband down 17.4% Broadband down 10.6% NT$ mln Digital Home up 24% Digital Home up 34.3% 40,000 2% 8% 4% 30,000 10% 20% 17% 20,000 38% 39% 10,000
Slide 15: 2012 Business Outlook
2012 Business Outlook Consumer “mydlink” Consumer Cloud Expand “mydlink” enabled products Engage more e-tail partners Bundle applications/contents Business Unified network platform-mydlink Business Cloud One stop 4S surveillance business solution Expand SI/VAR and vertical channel partners Telcos/IS
Slide 16: 2012 Regional Outlook
2012 Regional Outlook Emerging Mkts Further deepen in-country operations & Asia Pac. Growth driver China, India/Middle East, Japan Focusing on Telco & vertical projects Europe Regain market share in Telco projects Ramp-up Cloud products and IP camera solution North America Focus to regain market lea
Slide 17: 1Q12 Guidance
1Q12 Guidance From QoQ perspective: Revenue slightly lower and back-end loaded for the year Operating margin remain flat 15
Slide 18: Safe Harbor Statement
Safe Harbor Statement All numbers are consolidated. Except for statements in respect of historical matters, the statements contained in this release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange A
Slide 19: Q&A
Q&A For complete financial and press releases, please visit http://ir.dlink.com