Lite-On Technology Corp. · TWSE:2301
Lite-On Technology — Q4 2003 Earnings Presentation
25 slides from Lite-On Technology's earnings presentation, Feb 12, 2004
Slide 1: Lite-On Technology Corp. 4Q 2003 Analyst Meeting
Lite-On Technology Corp. 4Q 2003 Analyst Meeting February 12, 2004 1
Slide 2: Safe Harbor Notice
Safe Harbor Notice Lite-On Technology’s statement of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in any forward-looking statement. 2
Slide 3: Agenda
Agenda l Greeting IR Ting Jian l Company Positioning CEO David Lin l Review of Financial Results CFO Andrew Lin l OptoElectronic Industry Outlook SBG President KC Terng l Wrap up CEO David Lin l Q&A All 3
Slide 4: An OptoElectronic Component Powerhouse
An OptoElectronic Component Powerhouse Lite-On Technology 2003 Sales Breakdown OptoElectronic Components Power Supply Image 76% 16% 15% LED 6% Other 24% Digital Display 39% 4
Slide 5: The Leader of OptoElectronic Components Company
The Leader of OptoElectronic Components Company LED Digital Display SMD LED Lamps LED Display LED Lamps LCD Monitor CRT Monitor Projector Lite-On OptoElectronics Infrared Products Technology LCD TV Power Supply Image Power Supply for •Desktop •Notebook Scanner •Server Printer •Networking •Broadband
Slide 6: An Integrated OptoElectronic Manufacturer
An Integrated OptoElectronic Manufacturer l Power Supply l SMD LED Lamps l IrDA Lite-On l Optocoupler Component Technology l LED Display l Digital Camera module l Scanner module Module l MFP module l Carriage l ADF l LCD TV l LCD Monitor l CRT Monitor System l Projector l MFP l Printer l Scanner l D
Slide 7: Review of Financial Results
Review of Financial Results 7
Slide 8: 2003 Results Highlight
2003 Results Highlight (Lite-On Tech Pro Forma ) 2002 2003 YoY (in NT$ million) Amount % Amount % % Net Sales 95,703 100.0 107,895 100.0 12.7 COGS 82,130 85.8 95,675 88.7 16.5 Gross Profit 13,573 14.2 12,220 11.3 (10.0) Operating Expense 8,321 8.7 8,864 8.2 6.5 Operating Profit 5,252 5.5 3,356 3.1 (
Slide 9: 4Q 2003 Results Highlight – YoY Comparison
4Q 2003 Results Highlight – YoY Comparison (Lite-On Tech Pro Forma ) (in NT$ million) 4Q 2002 4Q 2003 YoY Amount % Amount % % Net Sales 28,040 100.0 37,278 100.0 32.9 COGS 24,348 86.8 33,332 89.4 36.9 Gross Profit 3,692 13.2 3,946 10.6 6.9 Operating Expense 2,363 8.4 2,834 7.6 19.9 Operating Profit
Slide 10: 4Q 2003 Results Highlight – QoQ Comparison
4Q 2003 Results Highlight – QoQ Comparison (Lite-On Tech Pro Forma ) (in NT$ million) 3Q 2003 4Q 2003 QoQ Amount % Amount % % Net Sales 26,377 100.0 37,278 100.0 41.3 COGS 23,519 89.2 33,332 89.4 41.7 Gross Profit 2,858 10.8 3,946 10.6 38.1 Operating Expense 2,153 8.2 2,834 7.6 31.6 Operating Profit
Slide 11: Investment Income / (Loss)
Investment Income / (Loss) (Amount: NT $ Million) 3Q 2003 4Q 2003 Lite-On IT 694 1,010 Silitech Technology 72 66 Lite-On Semiconductor 31 31 Lite-On Enclosure 33 (24) Other 87 (27) Total 917 1,057 Note: Lite-On Tech. holds 64.55% of Lite-On IT, 59.49% of Silitech, 96.49% of Lite-On Enclosure, and 20
Slide 12: Sales Breakdown by Business Group
Sales Breakdown by Business Group 1Q 2003 2Q 2003 Total NT$22,064M Total NT$22,176M Full Year 2003 17% 17% Total NT$107,895M 12% 14% 62% 9% 62% 7% 15% 3Q 2003 4Q 2003 14% Total NT$26,377M Total NT$37,278M 7% 64% 14% 13% 13% 15% 6% 6% 65% 68% P&C Communication NBD Image 12
Slide 13: Sales Breakdown by Product Group
Sales Breakdown by Product Group 1Q 2003 2Q 2003 Total NT$22,064M Total NT$22,176M Full Year 2003 25% 36% 24% 34% Total NT$107,895M 6% 7% 17% 16% 17% 18% 24% 39% 3Q 2003 4Q 2003 6% Total NT$26,377M Total NT$37,278M 15% 16% 25% 22% 39% 4% 48% Digital Display Power Supply 6% Image LED 13% 14% Other 16
Slide 14: Quarterly Operating Expense Trend
Quarterly Operating Expense Trend SG&A 10% 9% 8.86 8.65 8.16 8% 7.60 7% 6% 1Q 03 2Q 03 3Q 03 4Q 03 14
Slide 15: Quarterly Operating Profit Trend
Quarterly Operating Profit Trend NT$M 1,200 1,112 58% 1,000 = oQ Q 762 777 800 705 600 400 200 0 1Q 03 2Q 03 3Q 03 4Q 03 15
Slide 16: 2003 Financial Highlights
2003 Financial Highlights Growth Profitability Revenue = NT$108B Net Income = NT$7.3B YoY Growth = 13% Gross Margin = 11.3% LED YoY = 15% Net Margin = 6.8% SPS YoY = 25% ROA = 8.5% (Annual) Digital Display YoY = 54% Lite-On ROE = 16.9% (Annual) Technology Liquidity Cash On Hand = NT$15.9B Debt to Eq
Slide 17: 1Q 2004 Outlook
1Q 2004 Outlook l 1Q 2004 sales should decline 10%~15% QoQ, but over 40% increase YoY l OptoElectronic Components continue to account for 85% of sales u LED u Cross-license with Osram and should start shipping white SMD LED by the end of March u Increase blue SMD LED shipments to 20KK per month u Po
Slide 18: The Empire Strikes Back - 2004 Sales Outlook
The Empire Strikes Back - 2004 Sales Outlook NT$M 140,000 140,000 R=24% 120,000 CAG 107,895 95,704 100,000 73,797 80,000 60,000 40,000 20,000 0 2001 2002 2003 2004(E) Note: Revenue from Silitech, Lite-On IT and Lite-ON Enclosure are not included. 18
Slide 19: OptoElectronic Components
OptoElectronic Components 19
Slide 20: LED
LED l Largest manufacturer in Taiwan: 2003 sales = NT$6B l High growth with high margin: 30% sales growth and 30% gross margin l Low cost position: Cross-licensing white LED with Osram l Total solution provider: visible and invisible l State-of-the-art manufacturing process: 30 years experience 20
Slide 21: Power Supply
Power Supply l Global Leadership : NB adapter market share = 39% (4Q 2003) l Full-line of product offerings: Products ranging from PC to PC peripherals l Develop high voltage products: Ready to cut into high-end server l Penetrate into consumer electronics field : Leverage PC related capabilities an
Slide 22: Digital Display
Digital Display l Top player in Taiwan: Ranked Top3 in unit shipments l Complete line of product offerings: Projector, CRT monitor, LCD monitor and LCD TV l Larger screen LCD monitor focus: 17”&19” account for 60+% l LCD TV potential: Another growth driver for 2H04 and beyond l Best ODM choice: No b
Slide 23: Conclusion
Conclusion = HL =ONE
Slide 24: Conclusion
Conclusion l Emphasize on optoelectronic components l Focus on core business: but will continue to benefit from subsidiaries l Long-term track record: stable earnings / steady growth / back on track l Explosive growth: New products / New customers / New geographies l Bottom-Line improvements: materi
Slide 25: Enlightening the Digital World with Quality and Human Touch!
Enlightening the Digital World with Quality and Human Touch! 25