Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — CLSA Investors' Forum 2004
16 slides from Solomon Systech (International)'s conference presentation, September 2004
Slide 1: CLSA Investors' Forum 2004
CLSA Investors’ Forum 2004 Presented by Solomon Systech (International) Limited (stock code: 2878 HK)
Slide 2: Our business: display ICs
Our business: display ICs Transceiver Display Multimedia Baseband Human interface device Display IC Mobile Handset Functions Page 2
Slide 3: Vision: dominate the display IC market
Vision: dominate the display IC market Page 3
Slide 4: Directions: 1 core plus 3 dimensions
Directions: 1 core plus 3 dimensions 1. Display Technologies – Major display technologies coverage – Broad production line for each technology 2. System integration – Mixed-mode SoC Core competence – Mobile multimedia display IC – Video processing 3. Market applications – IP creation – Mobile – Larg
Slide 5: 1. Mobile display technologies
1. Mobile display technologies Mobile display unit shipments ! High growth mobile display market ! Dual display popularity ! Migration to color display and higher resolution ! Value growth > unit growth ! A mix of display technology emerging Page 5
Slide 6: What do we do?
What do we do? ! Focused on high growth areas – CSTN, TFT and OLED ! The only company to provide all display solutions ! Leading position in mobile display IC market Page 6
Slide 7: 2. Mobile multimedia
2. Mobile multimedia ! Features rich mobile handset – High speed communication – More data against voice transmission – Device convergence – Mobile multimedia ! More features resulting in higher value multimedia system integrated IC Page 7
Slide 8: What do we do?
What do we do? ! Competence in system integration of mixed- mode SoC, mobile multimedia and video processing ! Leverage mobile display IC success ! Ready to launch new products such as image and multimedia processors ! Continuing to add functional value to existing products Page 8
Slide 9: 3. Display market applications: large display
3. Display market applications: large display ! High growth market ! Increasing IC content and value ! Large total accessible market LCD TV market LCD monitor market Notebook PC market Page 9
Slide 10: What do we do?
What do we do? ! Large display – Working with world-class large panel manufacturers – Leverage mobile display resources and customers – As a stepping stone to digital broadcasting opportunity Page 10
Slide 11: 3. Display market applications: new display
3. Display market applications: new display ! New emerging display creates high volume innovative applications Head mount Electronic Signboard Timepiece device viewfinder Page 11
Slide 12: What do we do?
What do we do? ! New display – Strategic alliance with global leading technology company – First-mover advantage to capture emerging opportunity – Evolutionary products creating new markets Page 12
Slide 13: Our business model
Our business model Co-development Own brand display ICs Brand Owners / Display Module Makers Sales & Design & Outsource Quality Marketing Development Manufacturing Control Mask Wafer Packaging Making Manufacturing and Testing Page 13
Slide 14: Core strengths
Core strengths ! Key management from Motorola ! Strong customer relationships with Motorola, Sony Ericsson, LG etc. ! Expertise in system knowledge, display technologies and IC design ! In-depth experience in manufacturing process, a key element of enhancing yield and quality Page 14
Slide 15: What sets us apart?
What sets us apart? ! Being a leader in the high growing business – Market share of roughly 20% ! Flexible to capture high volume business rapidly – Revenue CAGR 70% in the past 2 years ! Proven track record – Net profit CAGR 190% in the past 2 years – Cash on hand US$124m as of June 2004 Page 15
Slide 16: Our ranking in the industry
Our ranking in the industry ! The largest IC design company in Hong Kong and China Global top 30 fabless IC companies HK and China fabless IC companies (2003 revenue US$m) (2003 revenue US$m) 3,000 120 2,510 2,500 100 Expected 2003 2004 2,000 ranking 80 ranking 1,500 60 1,000 40 500 20 160 0 0 #2 #3
Solomon Systech (International) — CLSA Investors' Forum 2004 on 6ix