Solomon Systech (International) Ltd. · HKEX:2878

Solomon Systech (International) — FY2005 Earnings Presentation

20 slides from Solomon Systech (International)'s earnings presentation, Mar 13, 2006

  1. Slide 1: 2005 Annual Results Announcement

    Solomon Systech (International) Limited 2005 Annual Results Announcement 13 March 2006 Hong Kong

  2. Slide 2: Table of contents

    www.solomon-systech.com Table of contents • Summary • Financial review • Business review • Outlook SSIL 2005 Annual Results 13 Mar 2006 P. 2

  3. Slide 3: Summary

    www.solomon-systech.com Summary SSIL 2005 Annual Results 13 Mar 2006 P. 3

  4. Slide 4: Growing from strength to strength

    www.solomon-systech.com Growing from strength to strength • Sales US$394 million (+28%) • Net profit US$76.3 million (+32%) • EPS reaching 24.3 HK cents • Final dividend per share 15 HK cents • Total dividends per share of the year 19 HK cents • Global market share in mobile display ICs exceeding 20

  5. Slide 5: Financial Review

    www.solomon-systech.com Financial Review SSIL 2005 Annual Results 13 Mar 2006 P. 5

  6. Slide 6: Profit and loss

    www.solomon-systech.com Profit and loss Twelve months ended 31 Dec YoY (US$ million) 2005 2004 Change Sales 394.1 308.2 28% Gross profit 119.6 96.6 24% Net profit 76.3 57.9 32% (HK cents) Earnings per share* 24.3 20.5 19% Dividends per share 19.0 14.6 30% * Basic EPS calculation is based on the adju

  7. Slide 7: Balance sheet

    www.solomon-systech.com Balance sheet As at 31 As at 31 (US$ million) Dec 2005 Dec 2004 Change Total assets 270.3 250.1 8% Total borrowings Nil Nil N/A Shareholders’ funds 207.0 176.8 17% Net cash 161.4 136.7 18% (HK cents) Shareholders’ funds per share 66 62 6% Net cash per share 51 48 6% * Per sha

  8. Slide 8: HKFRS 2 – Share based payments

    www.solomon-systech.com HKFRS 2 – Share based payments • The first year adoption of HKFRS2 • Its impact on financials is summarized below: Impact on 2005 2006E 2007E Expense (as % of revenue) 0.8%a ~1.5%b ~2.0%b Dilution (increase in no. of shares) ~0.2% ~0.2% ~1.0% * The dollar value impact on expe

  9. Slide 9: Historical financials

    www.solomon-systech.com Historical financials Sales Net Profit US$m US$m 400 80 300 60 200 40 100 20 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 SSIL 2005 Annual Results 13 Mar 2006 P. 9

  10. Slide 10: Historical financials

    www.solomon-systech.com Historical financials Earnings Per Share Return on equity HK cents 28 60% 24 50% 20 40% 16 30% 12 20% 8 4 10% 0 0% 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 * Return on equity (“ROE”) is calculated by dividing the net profit for the year by simple average of sharehold

  11. Slide 11: Business Review

    www.solomon-systech.com Business Review SSIL 2005 Annual Results 13 Mar 2006 P. 11

  12. Slide 12: Units shipment by product line

    www.solomon-systech.com Units shipment by product line 300 250 MISC. Units (million) 200 L-TFT OLED 150 m-TFT 100 CSTN MONO 50 0 2001 2002 2003 2004 2005 Note: TFT denotes large display driver ICs. Miscellaneous includes graphics controller, display ICs for PDA and other applications SSIL 2005 Annua

  13. Slide 13: Blended average selling price (ASP)

    www.solomon-systech.com Blended average selling price (ASP) 2.0 1.5 US$ 1.0 0.5 0.0 2001 2002 2003 2004 2005 SSIL 2005 Annual Results 13 Mar 2006 P. 13

  14. Slide 14: 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% 2001 2002 2003 2004 2005 Assumptions: (1) The percentage of mobile phone with dual display versus the total mobile phone shipment – 15% (2001), 20% (2002), 23% (200

  15. Slide 15: What we delivered in 2005

    www.solomon-systech.com What we delivered in 2005 New Products, New Applications & New Customers • m-TFT display ICs for 3G phone Mobile display • OLED display ICs for MP3, MP4 • TFT driver ICs Large display for LCD TV, monitor and notebook • Flexible and New display microdisplay ICs for portable ap

  16. Slide 16: Awards in 2005

    www.solomon-systech.com Awards in 2005 Corporate Level: Dec Caring Company Award Sep 2005 Grand Winner – Best of Hong Kong, 19th Annual International ARC Awards Mar Employer Of The Year Award Financial Performance: Dec Red Herring Global Small Cap 100 Dec Outstanding Financial Performance by a Publi

  17. Slide 17: Outlook

    www.solomon-systech.com Outlook SSIL 2005 Annual Results 13 Mar 2006 P. 17

  18. Slide 18: General views on 2006

    www.solomon-systech.com General views on 2006 Market • Healthy mobile phones growth • Strong demand for LCD TVs and consumer electronics • Seasonality factor and slow MP3 market in Q1 Products • Continued growth in mobile display ICs • High volume L-TFT driver ICs • Production of new display ICs Cus

  19. Slide 19: Expected units growth for 2006

    www.solomon-systech.com Expected units growth for 2006 MONO CSTN m-TFT OLED L-TFT MISCELLANEOUS 0 - 50% 50 - 100% >100% Growth SSIL 2005 Annual Results 13 Mar 2006 P. 19

  20. Slide 20: Thank You

    www.solomon-systech.com Thank You Solomon Systech (International) Limited Stock code: 2878 SSIL 2005 Annual Results 13 Mar 2006 P. 20

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