21 slides from Solomon Systech (international)'s earnings presentation, Mar 15, 2017
Slide 1: SSIL 2016 Annual Results Announcement
SSIL 2016 Annual Results Announcement 15 Mar 2017 P. 1
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation or is unlawful without compliance with any registration, filing or
Slide 3: Highlights, Financial Review, Business Review, Outlook
Highlights Financial Review Business Review Outlook SSIL 2016 Annual Results Announcement 15 Mar 2017 P. 3
Slide 4: Highlights
Highlights Sales amounted to US$68.4 million Gross profit was US$23.5 million Gross margin was 34.4% Net loss was US$6.9 million Loss per share was 0.28 US cent (2.17 HK cents) Book-to-bill ratio for the year was 1.0 The Board resolved not to propose any final dividend for the year end
Slide 5: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2016 Annual Results Announcement 15 Mar 2017 P. 5
Slide 6: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 2016 2015 Remarks Sales 68.4 70.9 ↓ 3.5% Gross profit 23.5 23.2 ↓ Gross margin 34.4% 32.7% 1.7pts Net loss 6.9 6.4 (HK cents) Loss per share 2.17 2.02 Dividends per share Nil Nil Book-to-bill ratio 1.0 1.1 SSIL 2016 Annual Results Announcement 15 Mar
Slide 7: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$68.4m • Unit shipments: up 0.8% YOY (‘15: US$70.9m) • Blended ASP: down 4.4% YOY Gross US$23.5m • Gross margin: 34.4% (’15: 32.7%) Profit (’15: US$23.2m) Total US$36.0m • Product R&D costs: Operating (’15: US$31.4m) - US$21.1m (’15: US$19.5m)
Slide 8: Financial Review - Balance Sheet
Financial Review - Balance Sheet As at 31 Dec (US$ million) 2016 2015 YoY Total assets 115.6 123.4 Total borrowings 0.2 0.3 Shareholders’ funds 101.0 108.5 -7% Net cash 24.6 26.1 -6% (HK cents) Shareholders’ funds per share 32 34 Net cash per share 8 8 SSIL 2016 Annual Results Announcement 15 Mar 20
Slide 9: Financial Review - Net Cash Analysis 2016 vs 2015
Financial Review – Net Cash Analysis 2016 vs 2015 Net Cash @31 Dec: Change • US$24.6m (’16) vs US$26.1m (’15) -US$1.5m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +3.3m • Net cash Used in -13.2m Dividend Received Operating Activities • Disposal of Treasury +26.5m • Capital Expenditur
Slide 10: Business Review
Highlights Financial Review Business Review Outlook SSIL 2016 Annual Results Announcement 15 Mar 2017 P. 10
Slide 11: Business Review – Sales & Shipments
Business Review – Sales & Shipments 2016 Total Sales: ~US$68.4 million 2016 Total Shipment: ~187.3 million units Product Sales & Shipment (2012-2016) Sales (US$ Million) 2016 Total Sales (By Quarter) 200.0 80 18,500 180.0 70 18,000 160.0 60 140.0 17,500 50 120.0 17,000 100.0 40 80.0 30 16,500 60
Slide 12: Business Review – New Structure
Business Review – New Structure SSIL 2016 Annual Results Announcement 15 Mar 2017 P. 12
Slide 13: Business Review – Main Display
Business Review – Main Display Main Total Sales • Decreased 4.4% year-on-year to US$31.6 million Display Purchased market-leading maXTouch® technologies, semiconductor products and patent licenses Set up UK Business & Technology Center at end of 2016 focusing on Mobile Touch maXTouch® Technolo
Slide 14: Business Review – Main Display
Business Review – Main Display Main Touch & Display Driver IC (TDDI) Display • Launched World’s 1st TDDI for FHD IGZO panels with Nanjing CEC Panda • TDDI for FWVGA LTPS Panels: strong growth >10 million units World’s 1st TDDI for • TDDI for FHD LTPS Panels: pilot shipment in 2H FHD IGZO Panels TD
Slide 15: Business Review – Advanced Display
Business Review – Advanced Display Advanced Total Sales: Display • Decreased 2.9% year-on-year to US$36.8 million Wearable PMOLED Display Driver IC Health & • Scored design wins with global wearable health & Fitness fitness devices brands Device • Cumulative IC shipments (2008-2016) of one singl
Slide 16: Outlook
Highlights Financial Review Business Review Outlook SSIL 2016 Annual Results Announcement 15 Mar 2017 P. 16
Slide 17: Our Strategy
Our Strategy Ready to Capture Growth Opportunities Main Display Business Unit Advanced Display Business Unit • Capitalize on growing TDDI & AMOLED • Capitalize on growing smart devices markets and IoT markets • Leverage maXTouch® Technologies & • Acquire new customers and boost Assets for market pen
Slide 18: Main Display – Outlook
Main Display – Outlook In-Cell TDDI • Secure more design wins for TDDI for FHD panels • New TDDIs for FHD LTPS & IGZO panels to start mass Mobile Display IC production Touch Controller IC • Develop POLED touch controller IC • Drive growth leveraging maXTouch®’s customer base TFT LCD DDI New
Slide 19: Advanced Display – Outlook
Advanced Display – Outlook New Products PMOLED Develop new products to capture the growth Display momentum of wearables market Driver IC Explore other fast-growing applications to drive business growth Rapport Building to Drive Growth Enhance relationship with LCD module Bistable manufactu
Slide 20: Summary
Summary Total sales decreased slightly: ASP erosion of certain products 2016 Summary under intense price competition Increased organizational efficiency via operational realignment Enhanced NPI quality & speed Strengthened product and IP portfolios Reinforced technological capability df
Slide 21: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com