Slide 1: 1Q 2004 Earnings Release & Investor Conference
1Q 2004 Earnings Release & Investor Conference 九十三年第一季法人說明會 April 20, 2004 April 2004 -0-
Slide 2: Agenda
Agenda Welcome & Introduction 14:30 – 14:40 1Q ‘04 Financial Results 14:40 – 15:00 2004 Financial Projections 15:00 – 15:20 Q&A 15:20 – 16:00 April 2004 -1-
Slide 3: Disclaimer
Disclaimer Except for historical information contained herein, the statements set forth in this press release are forward- looking statements that are subject to significant risks and uncertainties that could cause actual results to differ materially, including, among others, risks associated with c
Slide 4: 1Q '04 Financial Results
1Q ‘04 Financial Results April 2004 -3-
Slide 5: 1Q '04 Financial highlights
1Q ‘04 Financial highlights Growth – Revenue: +38% YoY; +5% QoQ – Unit Shipment: +4% YoY; -2% QoQ Profitability – EBITDA margin of 35%, +30 percentage points (pts) YoY; +4 pts QoQ – 1Q’04 Basic EPS = NT$0.381 Liquidity – NT$2,303 million operating cash flow in 1Q’04 – NT$29,443 million in cash
Slide 6: Major developments in 1Q '04
Major developments in 1Q ‘04 Gen 3 First Taiwan company to design-in 0.5t, SXGA+ thin glass NB PC product with customer. Gen 5 Gen 5 17” pilot run in January and start to ship out 17” product to customer in March. Complete Gen 5 equipment and process tuning for AS-IPS in January; produce 28” A
Slide 7: 1Q '04 Income Statement (QoQ)
1Q ‘04 Income Statement (QoQ) (in NT$ millions, except percentages, per share and shipment data) (unaudited) QoQ 1Q ‘04 4Q ‘03 Change Net sales 9,673 100% 9,242 100% 5% Gross profit / (loss) 2,593 27% 2,253 24% 15% Operating income / (loss) 1,758 18% 1,303 14% 35% Income / (loss) before income tax 1
Slide 8: 1Q '04 Income Statement (YoY)
1Q ‘04 Income Statement (YoY) (in NT$ millions, except percentages, per share and shipment data) (unaudited) YoY 1Q ‘04 1Q ‘03 Change Net sales 9,673 100% 7,023 100% 38% Gross profit / (loss) 2,593 27% (198) (3%) nm Operating income / (loss) 1,758 18% (1,189) (17%) nm Income / (loss) before income t
Slide 9: 1Q '04 Balance Sheet Highlights (QoQ)
1Q ‘04 Balance Sheet Highlights (QoQ) (in NT$ millions, except percentages data) (unaudited) 1Q ‘04 4Q ‘03 QoQ Change Cash and short term investments 29,443 30% 25,303 29% 4,140 16% Short term debt1 5,693 6% 7,714 9% (2,021) (26%) Long term debt1 21,333 22% 23,128 27% (1,795) (8%) Total Stockholders
Slide 10: 1Q '04 Balance Sheet Highlights (YoY)
1Q ‘04 Balance Sheet Highlights (YoY) (in NT$ millions, except percentages data) (unaudited) 1Q ‘04 1Q ‘03 YoY Change Cash and short term investments 29,443 30% 15,989 27% 13,454 84% Short term debt1 5,693 6% 10,674 18% (4,981) (47%) Long term debt1 21,333 22% 11,041 19% 10,292 93% Total Stockholder
Slide 11: 1Q '04 Cash Flow Highlights (QoQ)
1Q ‘04 Cash Flow Highlights (QoQ) (in NT$ millions) (unaudited) 1Q ‘04 4Q ‘03 QoQ Change Net income 1,702 1,395 307 Depreciation and amortization 1,579 1,586 (7) Net cash provided by operating activities 2,303 3,040 (737) Capex (6,267) (6,030) (237) Net cash used in investing activities (8,444) (7,1
Slide 12: 1Q '04 Cash Flow Highlights (YoY)
1Q ‘04 Cash Flow Highlights (YoY) (in NT$ millions) (unaudited) 1Q ‘04 1Q ‘03 YoY Change Net income 1,702 (998) 2,700 Depreciation and amortization 1,579 1,535 44 Net cash provided by operating activities 2,303 351 1,952 Capex (6,267) (2,023) (4,244) Net cash used in investing activities (8,444) (2,
Slide 13: Sales Breakdown by Application
Sales Breakdown by Application 100% 3% 3% 2% 3% 4% 5% 0% 0% 0% 0% 1% 1% 90% 80% 70% 56% 65% 63% 60% 74% 65% 76% 50% 40% 30% 20% 41% 32% 34% 30% 10% 24% 18% 0% 4Q '02 1Q '03 2Q '03 3Q '03 4Q '03 1Q '04 NB MTR TV Others April 2004 -12-
Slide 14: Panel Shipment & Panel ASP Trend
Panel Shipment & Panel ASP Trend 2,000 231 240 220 1,800 193 1,600 188 171 180 1,400 160 1,255 1,253 1,231 1,203 Shipments (K) 1,158 1,200 ASP (US$) 1,000 949 120 800 600 60 400 200 - 0 4Q '02 1Q '03 2Q '03 3Q '03 4Q '03 1Q '04 shipments (K) ASP (US$) Note: All units < 12” are converted to 15” equiv
Slide 15: 2004 Financial Projections
2004 Financial Projections April 2004 -14-
Slide 16: 2004 Financial Projections
2004 Financial Projections (in NT$ millions, except percentages, per share and shipment data ) FY2004 - Forecast FY2003 Net sales 60,252 100% 32,952 100% Cost of goods sold 45,971 76% 28,404 86% Gross profit 14,281 24% 4,550 14% Operating expenses 4,610 8% 3,596 11% Operating income 9,671 16% 954 3%
Slide 17: Rapidly Improving Revenue and Profitability
Rapidly Improving Revenue and Profitability Net sales Net income 9,202 60,252 NT$m NT$m 32,952 30,317 886 852 2002 2003 2004F 2002 2003 2004F April 2004 -16-
Slide 18: 2004 Glass-in Plan by Fab
2004 Glass-in Plan by Fab 12/2003 6/2004(F) 12/2004(F) Substrate Size Monthly Monthly Monthly Production (mm) Glass-in Glass-in Glass-in Technology Fab 1 (Gen 3) 550 x 650 55,000 55,000 55,000 TN Fab 2 (Gen 3) 550 x 650 55,000 55,000 55,000 TN / S-IPS Fab 3 (Gen 5) 1200 x 1300 n.a. 20,000 70,000 TN
Slide 19: Gen 5 Funding History and Capital Commitment
Gen 5 Funding History and Capital Commitment Financing plans Gen 5 capex guidance (NT$bn) Financed by: NT$bn Oct 2002 Rights offering 7.5 Mar 2003 and Oct 2003 ECB offering 12.6 NT$bn Jul 2003 and Jan 2004 GDR offering 16.6 36.3 Syndicate loan 19.7 Internal cash 1.8 15.9 1.7 Total 5G capex 58.2 2002
Slide 20: 2Q '04 guidance
2Q ‘04 guidance Unit shipment is expected to increase mid-teen percentage rate – Continued Gen 5 ramp HannStar’s blended average selling price to improve mid single digit QoQ – Continued strong demand on monitor panels – Increasing proportion of larger size monitor panels (Gen 5) Total capex i
Slide 21: Q&A
1OPPINe. ero “ Ssz te) \\Eiene WN Switching’ Q&A In April 2004 -20- BeRening’ Hann eel
Slide 22: Market outlook - Demand
Market outlook - Demand Monitors LCD-TV 138.7 30.8 2002-07 CAGR: 34% 2002-07 CAGR: 87% 118.7 22.9 97.6 Units (m) Units (m) 69.9 13.6 49.4 32.2 8.4 4.2 1.4 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 NB 1. For OA : Monitor growth momentum continues 2002-07 CAGR: 13% to be strong with
Slide 23: First-to-market with superior TV technologies
First-to-market with superior TV technologies Dynamic Contrast AS-IPS 1st Compensation AS-IPS fab globally 1st Only AS-IPS licensee company in Taiwan Superior viewing angle Only Hitachi and Samsung Superior response time implementing DCC Superior gray to gray response time AS-IPS MVA B
Slide 24: Taiwan TFT LCD player patents
Taiwan TFT LCD player patents Invention patents approved in Taiwan Types of patents TFT-LCD Array Cell Module System related total Others HannStar 51 18 60 9 138 23 A 78 21 59 36 194 138 B 25 7 24 26 82 21 C 16 10 9 2 37 70 D 1 1 4 1 7 5 HannStar has a significant TFT-LCD Utility patents approved in
Slide 25: HannStar product lineup
HannStar product lineup Application Display Size Technology TV 17”W, 23", 28" AS-IPS Monitor 15", 17", 19" TN Notebook PC 15" TN Video & car 5", 7” TN IA & e-Book 9.6", 12.1" TN April 2004 -24-
Slide 26: Television product portfolio offers superior value to customers
Television product portfolio offers superior value to customers HannStar has the LARGEST size products at each price point No. of HannStar TV product segment Advantage cuts (1200 x 1300) (1100 x 1300) (1100 x 1250) 15 cut 17W“ 15” 15” 2” Monitor-TV 15”-19” 12 cut 19” 17” 17” 2” Second TV 20”-23” 8 c
Slide 27: hannstar.com / ir@hannstar.com
http://www.hannstar.com ir@hannstar.com April 2004 -26-