20 slides from Solomon Systech (international)'s earnings presentation, Aug 22, 2017
Slide 1: 2017 Interim Results Announcement
18 August 2014 Hong Kong SSIL 2017 Interim Results Announcement 22 Aug 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: Agenda: Highlights, Financial Review, Business Review, Outlook
Highlights Financial Review Business Review Outlook SSIL 2017 Interim Results Announcement 22 Aug 2017 P. 3
Slide 4: Highlights
Highlights Sales amounted to US$38.6 million Gross profit was US$14.7 million Gross margin was 38.1% Net loss was US$5.6 million Loss per share was 0.23 US cent (1.74 HK cents) Book-to-bill ratio for the period was 1.1 Performance rebounded (sales, gross profit margin & E/(L)BITDA) T
Slide 5: Performance Charts
Performance Charts SALES ( U S $ MI L L I O N ) GROSS PROFIT MARGIN ( % ) 39 40 38 38.1 38.6 37 38 35.9 36 35 36 E/(L) BITUDA ( U S $ M I L L I O N ) 34 34 33.4 33 3 32.9 32 2 32 1.3 31 31.7 1 30 0 30 2015 2016 2017 29 2015 2016 2017 -1 2015 2016 2017 -2 -3 -3.3 -4 -5 -6 -6.4 -7 SSIL 2017 Interim Re
Slide 6: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2017 Interim Results Announcement 22 Aug 2017 P. 6
Slide 7: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 1H 2017 1H 2016 Remarks ↓ Sales 38.6 32.9 18% Gross profit 14.7 10.4 ↑41% ↓ Gross margin 38.1% 31.7% 6.4pts Net loss 5.6 6.4 (HK cents) Loss per share 1.74 2.00 Dividends per share Nil Nil Book-to-bill ratio 1.1 1.0 SSIL 2017 Interim Results Announcem
Slide 8: Financial Review – Key Factors on P&L
Financial Review – Key Factors on P&L Key Factors Sales US$38.6m • Sales: up 18% YOY (1H16: US$32.9m) • Unit shipments: up 7% YOY • Blended ASP: up 10% YOY Gross US$14.7m • Gross margin: 38.1% (1H16: 31.7%) Profit (1H16: US$10.4m) • Enhanced overall ASP (addition of higher margin new products) Total
Slide 9: Financial Review - Balance Sheet
Financial Review - Balance Sheet As at 30 Jun As at 31 Dec (US$ million) 2017 2016 YoY Total assets 116.5 115.6 Total borrowings 0.3 0.2 Shareholders’ funds 95.8 101.0 -5% Net cash 24.5 24.7 -1% (HK cents) Shareholders’ funds per share 30 32 Net cash per share 8 8 SSIL 2017 Interim Results Announcem
Slide 10: Financial Review – Net Cash Analysis 2017 vs 2016
Financial Review – Net Cash Analysis 2017 vs 2016 Net Cash: Change • US$24.5m (30 Jun 17) vs US$24.7m (31 Dec 16) -US$0.2m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +0.6m • Net cash Used in -1.1m Dividend Received Operating Activities • Change in FVTPL +5.4m • Acquisition of -3.9m
Slide 11: Business Review
Highlights Financial Review Business Review Outlook SSIL 2017 Interim Results Announcement 22 Aug 2017 P. 11
Slide 12: Business Review – Sales & Shipments
Business Review – Sales & Shipments 1H 2017 Total Sales: ~US$38.6 million 1H 2017 Total Shipments: ~90.7 million units Product Sales & Shipment 45 100 40 90 80 35 70 30 60 25 50 20 40 15 30 10 20 5 10 0 0 1H2013 1H2014 1H2015 1H2016 1H2017 Sales (US$ Million) Shipment (Million Units) SSIL 2017 I
Slide 13: Sales on a Growth Momentum
Sales On a Growth Momentum FY2016 FY2017 Q1 Q2 Q3 Q4 Q1 Q2 Sales on an upward trend 20 Sales by Quarter (US$ m) 19 18 17 16 15 Change to Grow Strong Groundwork for Growth • Management change • Increased organizational efficiency • Customer-oriented re-alignment of • Enhanced new product development
Slide 14: Business Review – Main Display
Business Review – Main Display Total Sales: Increased 31% year-on-year to US$20m Main Display maXTouch® Touch Controller IC • Design-wins and design-in projects with key international brands Touch & Display Driver Integration (TDDI) IC • TDDI for FWVGA LTPS panels: continued revenue contributi
Slide 15: Business Review – Advanced Display
Business Review – Advanced Display Advanced Total Sales: • Increased 6% year-on-year to US$18.6 million Display PMOLED Display Driver IC • Continued to score design wins with global wearable health & fitness devices brands • Gained design-wins and design-in projects with smart home appliances, h
Slide 16: Outlook
Highlights Financial Review Business Review Outlook SSIL 2017 Interim Results Announcement 22 Aug 2017 P. 16
Slide 17: Main Display – Outlook
Main Display – Outlook Touch Controller IC Mobile Display IC • Drive growth leveraging maXTouch® solutions for AMOLED, In-Cell and On-Cell panels • Develop new product for flexible AMOLED displays TDDI IC • Target to secure design wins for FHD panels • Gain design-in projects for new IC for beze
Slide 18: Advanced Display – Outlook
Advanced Display – Outlook Growth Momentum To Continue PMOLED • Leverage growing wearables market Display Driver IC New ICs & Applications Develop new ICs: In-Cell TDDI, and for color displays of higher resolution Further extend application portfolio New ICs Bistable • Complete evaluation
Slide 19: Summary
Summary Total sales, unit shipments & gross profit increased Net loss: 1H 2017 Summary • Technology investment (R&D expenses & amortization of the cost of purchasing maXTouch® technologies) • Additional provision made for slow moving inventories New products developed & in the pipeline Reinf
Slide 20: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com