Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — FY2007 Earnings Presentation
17 slides from Solomon Systech (International)'s earnings presentation, Mar 27, 2008
Slide 1: Solomon Systech (International) Limited 2007 Annual Results Announcement
Solomon Systech (International) Limited 2007 Annual Results Announcement 27 March 2008 Hong Kong
Slide 2: Table of contents
Table of contents ! Summary ! Financial Review ! Business Review ! Outlook SSIL 2007 Annual Results Announcement 27Mar2008 P. 2
Slide 3: Summary
Summary SSIL 2007 Annual Results Announcement 27Mar2008 P. 3
Slide 4: Results summary
Results summary ! Unit shipment 173mu ! Sales US$165 million ! Net profit US$10 million ! Basic EPS 3.3 HK cents ! Final dividend per share 2 HK cents ! Total dividend per share for the year 3 HK cents ! Book to Bill ratio 0.64 ! Global market share in mobile phone display ICs around 11% SSIL 2007 A
Slide 5: Financial Review
Financial Review SSIL 2007 Annual Results Announcement 27Mar2008 P. 5
Slide 6: Profit and loss
Profit and loss Twelve months ended 31 Dec YoY (US$ million) 2007 2006 Change Sales 165.0 254.1 -35% Gross profit 39.5 59.3 -33% Gross margin 23.9% 23.3% Net profit 10.2 22.4 -54% Net margin 6.2% 8.8% (HK cents) Earnings per share* 3.3 7.1 Dividends per share 3.0 6.0 Book to Bill ratio 0.64 1.0 * Ba
Slide 7: Balance sheet
Balance sheet As at 31 As at 31 YoY (US$ million) Dec 2007 Dec 2006 Change Total assets 202.4 221.1 -8% Total borrowings Nil Nil N/A Shareholders’ funds 172.1 179.9 -4% Net cash 137.8 121.5 +13% (HK cents) Shareholders’ funds per share 55 57 -4% Net cash per share 44 38 +16% SSIL 2007 Annual Results
Slide 8: Financial remarks
Financial remarks Key Factors Sales 35% Unit shipment 25% YoY Blended ASP 14% YoY Net profit 54% Gross profit 33% YoY -- Gross profit margin 23.9% (2006: 23.3%) Operating expense 7% YoY -- Raised R&D 13% while lowered SG&A 19.9% YoY Interest income 27% YoY -- US$8m, partially offset operating income
Slide 9: Business Review
Business Review SSIL 2007 Annual Results Announcement 27Mar2008 P. 9
Slide 10: Blended average selling price
Blended average selling price ! 2007 blended ASP = US$0.95, down 14% YoY ! Sequential decline rate moderating HoH YoY 2.5 Blended Unit ASP (US$) 1.96 50% 2 Blended ASP Change 1.54 1.5 1.5 1.11 0.95 1 0% 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 0.5 0 2003 2004 2005 2006 2007 -50% SSIL 2007 Annual Resu
Slide 11: Unit shipment by product line
Unit shipment by product line ! Mono & Color STN: Declined as more mobile phones switched to m-TFT ! m-TFT: Up 58% YoY as design-wins ramped ! OLED: Up 32% YoY with sustained leadership as the industry stablized ! New Display Applications: Up 63% as design-wins beyond mobile phone ! L-TFT: Kept desi
Slide 12: Examples of 2007 design-wins
Examples of 2007 design-wins New Customers, New Products, New Applications Mobile Display (STN, TFT) OLED Mobile MP4 GPS Mobile Bluetooth Automotive mirror with Phone Phone Earpiece GPS / Radio Locator New Display Display System Wristwatch Electronic Shelf Microdisplay Label Eyewear Study Machine MP
Slide 13: Outlook
Outlook SSIL 2007 Annual Results Announcement 27Mar2008 P. 13
Slide 14: 1H 2008 Outlook
1H 2008 Outlook ! Sales year-on-year ! Challenging Book to Bill ratio ! Gross profit margin ! Pressure from market ASP erosion ! Operating expenses ! Under control; Invest in R&D ! Supplement with interest income ! New businesses or customers ! Continue development; take time to ramp SSIL 2007 Annua
Slide 15: Future Growth Enablers
Future Growth Enablers Customer, Product and Application Diversification ! Display Panel Mobile Display ! m-TFT ! Audio / Video equipments, Mobile TV GPS GPS, mobile TV ! OLED ! Wireless peripherals, MP4, industrial Bluetooth MP4 Earpiece New Display ! E-paper ! Electronic shelf label, IC card, stor
Slide 16: Future Growth Enablers (Cont'd)
Future Growth Enablers (Cont’d) Customer, Product and Application Diversification ! Display System ! Total system solutions – including multimedia system IC, software, hardware, end product reference design ! Focus applications ! Digital photo frame, portable media player, mobile digital TV, persona
Slide 17: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com SSIL 2007 Annual Results Announcement 27Mar2008 P. 17
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