Walsin Technology Corporation · TWSE:2492
Walsin Technology — Investor Conference August 2006
25 slides from Walsin Technology's conference presentation, Aug 15, 2006
Slide 1: Walsin Technology Corp. (2492.TW)
Walsin Technology Corp. (2492.TW) ( 2492) Aug 15, 2006 Walsin Technology Corporation 1 http://www.passivecomponent.com
Slide 2: Agenda
Agenda( ) Presentation Michael Chang : Q&A : Peter Chu President T.L.Tsai EVP of R&D & Mf’g & CTO M.L. Chao VP of Marketing Walsin Technology Corporation 2 http://www.passivecomponent.com
Slide 3: Presentation Contents
Presentation Contents( ) Walsin Tech Fact Sheets ( ) 1. Growth and Trend ( ) 2. Multi-Facet Profiles ( ) 3. Comparisons with Peer Global Players ( ) 4. Contributing Factors ( ) Financial Updates ( ) 1. Sales and Profitability ( ) 2. Balance Sheet and Cash Flow ( ) 3. Summary( ) Outlook 2H 2006 (2006
Slide 4: Growth and Trend
Growth and Trend( ) 12,000,000 160% 140% 10,000,000 135% 120% 8,000,000 100% sales sales 6,000,000 75% 80% grow th rate GPM 60% 4,000,000 44% 40% 2,000,000 28% 24.5%20% 17.5% 16.4% 18.2% 17.7% 7.8% - 0% 0% 2001 2002 2003 2004 2005 2006H1 Walsin Technology Corporation 4 http://www.passivecomponent.co
Slide 5: Profile – Walsin Group and PSA
Profile – Walsin Group and PSA( PSA) 1987 2002 1998 1966 1992 1989 2001 1995 2003 1997 2005 Walsin G PSA 2004 Revenue USD 6.2 b USD 1.0 b 1998 2005 Employees > 50,000 >15,500 2005 PDC 2006 Provides Comprehensive Passive Component Solutions Walsin Technology Corporation 5 http://www.passivecomponent.
Slide 6: Profile – Walsin Tech and Passive Components
Profile – Walsin Tech and Passive Components ( ) MLCC Chip- Chip-R RF Devices Module Varistor AC/CC WTC Offerings MLCC Chip-R RF devices Module Protective Disc. Cap Powder Film Cap. Walsin Tech. Corp. √ √ √ √ Varistor AC/CC √ - Kamaya - √ - - Specialty - - - POE international Sales channel - - Eden
Slide 7: Revenue Profile – by Products
Revenue Profile – by Products( ) 100% 5.0% 4.9% 4.4% 4.6% 6.7% 4.4% 4.9% 3.8% 4.8% 4.1% 4.4% 3.9% 3.5% 3.6% 2.8% 8.1% 7.3% 7.4% 6.4% 5.2% 90% 0.0% 6.0% 5.9% 5.4% 0.0% 0.0% 0.0% 7.0% 7.0% 10.5% 10.7% 7.3% 9.2% 10.7% 80% 11.9% 11.4% 10.9% 10.9% 11.1% 27.0% 70% 60% 50% 40% 77.7% 77.1% 77.7% 78.3% 73.4%
Slide 8: Revenue Profile – by Market Segments
Revenue Profile – by Market Segments( ) 2004 Sales 2005 Sales Others Private Label 3% 8% Telecom 21% PC 32% Distribution Automotive 24% 3% PC CE 63% Industry 10% EMS Electronics 3% CE 5% Telecom Automotive 15% 1H 2006 Sales 13% 0% Private Label 8% 1. Further Diversifications on Market PC Segments. 3
Slide 9: Revenue Profile – by Geographic Areas
Revenue Profile – by Geographic Areas( ) 2005 Sales 1H 2006 Sales North Europe Taiwan Europe 3% North America 4% Taiwan 20% America 2% 3% 18% Other Asia 23% Other Asia China 33% China 52% 43% 1. North America and Europe for Global AVL, Delivery Is to ODM/EMS Global Plant Sites. 2. Major Growth Area
Slide 10: Our Global Key Accounts – by Application Segments
Our Global Key Accounts – by Application Segments( ) EMS Games Box, Set top box, MP3, DSC, LCD Walsin Technology Corporation 10 http://www.passivecomponent.com
Slide 11: Our Global Key Accounts – by Application Segments
Our Global Key Accounts – by Application Segments( ) Home AV PC & Networking Telecom Walsin Technology Corporation 11 http://www.passivecomponent.com
Slide 12: Our Global Key Accounts – by Application Segments
Our Global Key Accounts – by Application Segments( ) Power Supply RAM Modules Wireless Lan/ Bluetooth Walsin Technology Corporation 12 http://www.passivecomponent.com
Slide 13: Walsin Tech and Global Industry Positioning
Walsin Tech and Global Industry Positioning( ) FY2005 Murata TDK Taiyo Yageo WTC Vishay AVX Semco EPCOS GP Margin% 24.3% 23.0% 15.5% 9.8% OP margin (%) Net margin (%) ROE (%) ROA(NPBT/Assets)% EBITDA(%) Murata TDK Taiyo Yageo WTC Vishay AVX Semco EPCOS FY2006/6/30 (1Q) (1Q) (1Q) (2Q) (2Q) (2Q) (1Q)
Slide 14: Contributing Factors
Contributing Factors( ) 1. Evolve and Grow with Taiwan Electronics Key Players( ) 2. RD Commitment Responding to Industry Trends and Customer Needs( ) 3. Scale Economy in China Plants ( ) 4. M&As( ) 5. Become Global( ) • Management Teams( ) • Plant Sites( ) • R&D Resources( ) • Sales Networking( ) •
Slide 15: Walsin Tech Global Platform
Walsin Tech Global Platform( ) In 17 countries, 37 stocking + Hubs to support global OEM and EMS Disty Netherlands Munich, Germany Disty Germany Europe America Disty Italy WTC Japan Disty UK Disty Israel Dallas, Texas Disty Korea Disty Belgium Nagano, Japan Fremont, CA Disty France APAC Disty Shangh
Slide 16: Walsin Tech Financial Fact Sheets
Walsin Tech Financial Fact Sheets Walsin Technology Corporation 16 http://www.passivecomponent.com
Slide 17: Fact Sheet – Profitability Comparison
Fact Sheet – Financial Updates Profitability Comparison( ) (NTD Millions) H1/05 H1/06 (1) Change % Sales 4,619 6,824 47.7% Margin % 15.6% 24.5% 57.1% Opex % 12.7% 12.5% -1.6% NPAT% 2.7% 9.6% 255.6% Note: 1. Pre-audited consl. Walsin Technology Corporation 17 http://www.passivecomponent.com
Slide 18: Fact Sheet – Profitability Comparison (pre-audit)
Fact Sheet – Financial Updates Profitability Comparison(pre-audit) ( ) (NTD Millions) H1/05 Y2005 H1/06 Profitability 2004 TTL % Sales (WTC+P % Sales (WTC+PO % (WTC+POE+PDC % OE) E+PDC) +Kamaya)1 Net Sales 7,956 100% 4,619 100% 10,651 100% 6,824 100% GPM 1,448 18.2% 719 15.6% 1,883 17.7% 1,675 24.5%
Slide 19: Fact Sheet – Assets Comparison
Fact Sheet – Financial Updates Assets Comparison( ) (NTD Millions) Y2004 Y2005 H1/06 B/S - Assets % (WTC+POE % (WTC+POE+PD % (WTC) +PDC) C+Kamaya)1 Cash + M/S 2,568 15% 2,917 14% 2,669 12% Net A/R 2,718 15% 4,101 20% 4,556 20% Inventory 2,582 15% 2,953 14% 3,318 14% Current Assets 8,364 47% 10,467 5
Slide 20: Fact Sheet – Liabilities & Net Worth Comparison
Fact Sheet – Financial Updates Liab. & NW Comparison (pre-audited consl.) ( ) (NTD Millions) Y2005 H1/06 B/S - Liab & NW Y2004 (WTC+POE (WTC+POE+PD (WTC) % +PDC) % C+Kamaya)1 % Interest-Bearing ST Debt 2,712 15% 1,982 10% 1,974 9% CPLTD 0 0% 1,328 6% 490 2% Current Liab 5,736 32% 6,224 30% 7,027 31%
Slide 21: Fact Sheet – YoY Cash Flows Comparison
Fact Sheet – Financial Updates YoY Cash Flows Comparison( ) (Unit: NTD Millions) Y2004 Y2005 H1/06 (WTC+POE+ Cash Flow (WTC) (WTC+POE+PDC) PDC+Kamaya)1 NPAT 417 734 658 +Minority interest gain(loss) (9) (612) (7) + Depreciation & Amor 1,119 1,569 890 +/- Changes in Assets and Liabilities (92) (784)
Slide 22: Fact Sheet – Financial Updates Summary
Fact Sheet – Financial Updates Summary( ) FY04 FY05 H1/06 (in NTD million) WTC WTC+POE+PDC WTC+PDC+Kam aya (1) Net Sales 7,956 10,651 6,824 Avg Gr. rate 21.8% 33.9% 47.7% GPM% 18.2% 17.7% 24.5% EBIT% 5.6% 5.7% 10.7% NPAT% 5.2% 6.9% 9.6% E.P.S.(NTD) 1.11 1.67 1.12 B.P.S(NTD) 25.09 25.04 26.28 ROE% 4.
Slide 23: Outlook 2H 2006
Outlook 2H 2006 ( ) Industry D-S at Equilibrium, or D>S with Narrow Gap 1. ASP trends up due to strong demand and better product mix 2. High V (size <10pf), High Cap MLCC(size >0805), Special R chips continue to be in great demand with some shortage in 2H. 3. Revenue Growth and Margin Drivers : A. P
Slide 24: Outlook 2006 2H Q3
Outlook 2006 2H Q3 ( ) Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06* Visibility (BB ratio) 0.9 1.3 1.5 1.6 1.62 1.6 1.8-2 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06* Utilization Rate % 77% 87% 95% 95% 95% 94% 95-97% Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06* ASP Trend (%) -2.4% -2.2% 1.3% 4.7% 1.4% 0% 1
Slide 25: Thank you!
Thank you! HEADQUARTER 566-1, Kao-Shi Road, Yang-Mei, Tao-Yuan, Taiwan, R.O.C. Tel : +886-3-475-8711 Fax: +886-3-475-7129, 475-7130 Email: info@passivecomponent.com Walsin Technology Corporation 25 http://www.passivecomponent.com