3q 2016 results investor conference · 12/27/2016 · the forward-looking statements in this press...
TRANSCRIPT
Dec 2016 -1-
3Q 2016 Results Investor Conference
105年第三季法人說明會
December , 2016
Dec 2016 -2-
DisclaimerDisclaimer
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 cyclicality and market conditions in the TFT-LCD industry, world wide demand for, market supply of and average selling price for TFT-LCD, changes in technology, our ability to reduce unit manufacturing costs of our principal products, changes in availability and prices of raw materials and component parts, loss of a key customer or the postponement or cancellation of orders from a key customer, changes in end-users’ spending patterns, our customers’ adjustments in their inventory, natural disasters and other unexpected events which may disrupt production, our ability to maintain high production yields, our ability to manage our growth, our ability to retain our Chairman and key management personnel, intense competition, our ability to manufacture our products within the acceptable range of quality, our ability to introduce, develop, license or acquire advance technologies and design products utilizing those technologies, our ability to obtain, preserve and defend our intellectual property rights and fluctuations in foreign exchange rates.
The forward-looking statements in this press release reflect the current belief of HannStar Display Corporation as of the date of this press release, although we make no guarantees as to our future results or the events set forth herein, except as required by law, HannStar Display Corporation undertakes no obligation to update these forecasts and forward-looking statements for events or circumstances that occur subsequent to such date or otherwise.
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AgendaAgenda
� 3Q 2016 Results
� Operating Highlights
� Business Outlook
� Questions & Answers
Dec 2016 -4-
3Q ’16 Income Statement3Q ’16 Income Statement
Source: Company financials based on Taiwan IFRS, unaudited.
1. 3Q16 basic EPS is based on 3,233.93million shares. 2Q16 basic EPS is based on 3,233.93million shares.
3Q15 basic EPS is based on 3,273.18 million shares. (Weighted average outstanding shares)
QoQ YoY
Change % Change %
Net sales 6,961 4,023 3,992 73% 74%
Gross profit (loss) 2,831 48 (271) 5,774% -
Operating income (loss) 2,300 (405) (886) - -
EBITDA 3,140 427 (83) 635% -
Net income (loss) 2,352 (703) (707) - -
Net income (loss) per share1
0.73 (0.22) (0.22) - -
Gross margin (loss) 41% 1% (7%) 40 pts 48 pts
Operating margin (loss) 33% (10%) (22%) 43 pts 55 pts
EBITDA margin (loss) 45% 11% (2%) 34 pts 47 pts
Net margin (loss) 34% (17%) (18%) 51 pts 52 pts
2Q ‘16 3Q ‘15NT$ mn 3Q ‘16
Dec 2016 -5-
3Q ’16 Balance Sheet3Q ’16 Balance Sheet
NT$ mn 3Q ‘16 2Q ‘16 3Q ‘15
QoQ
Change %
YoY
Change %
Cash and Financial assets at fair
value through profit or loss 1
4,082 3,477 4,093 17% (0%)
Inventory 1,240 1,446 2,183 (14%) (43%)
Short term debt 1,658 1,759 2,117 (6%) (22%)
Long term debt 0 700 0 -
Total Stockholders’ equity 33,281 30,925 33,923 8% (2%)
Total Assets 39,963 37,999 41,184 5% (3%)
Inventory Turnover days2
30 35 47
Debt to equity ratio 5% 8% 6%
Net debt to equity ratio3
(7%) (3%) (6%)
Source: Company financials based on Taiwan IFRS, unaudited.
1. Excluding time deposit with maturity longer than 3 months (NT$2,971m in 3Q16 , NT$1,728m in 2Q16 , and NT$1,289m in 3Q15 )
2. Average period of the designated period divided by annualized and multiplied by 365 days
3. Interest bearing debt less cash and short term investments, then divided by total equity.
Dec 2016 -6-
3Q ’16 Cash Flow3Q ’16 Cash Flow
NT$ mn 3Q ‘16 2Q ‘16 3Q ‘15
QoQ
Change
YoY
Change
Net income (loss) 2,353 (705) (771) 3,058 3,124
Depreciation and amortization 840 832 803 8 37
Changes in operating assets & liabilities (1,071) (1,079) 2,111 8 (3,182)
Cash flow from operating activities 2,009 (752) 2,203 2,761 (194)
Capex (515) (252) (358) (263) (156)
Proceeds from disposal of assets 11 5 84 6 (74)
Acquisition of debt investments without
active market(1,800) - 1,800
Acquisition of investments accounted for
using equity method(49) (49) (49)
Cash flow from investing activities (530) (252) (1,982) (278) 1,451
Decrease in short-term debt 182 607 (59) (425) 241
Increase in long-term debt 700 - (700) -
Repayment of long-term debt (980) (1,400) (280) 420 (700)
Cash flow from financing activities (818) (111) (351) (707) (467)
Effect of changes in exchange rates 55 36 (4) 19 59
Net change in cash 715 (1,079) (134) 1,794 849
Source: Company financials based on Taiwan IFRS, unaudited
Dec 2016 -7-
Shipment & ASP TrendShipment & ASP Trend
Notes:
G5.3 small & medium size are converted to 19” equivalent units.
3,7403,7234,587
3,377 3,6434,268
32 3436 34 2748
2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
Shipments (K) ASP (US$)
Dec 2016 -8-
Sales Breakdown by SizeSales Breakdown by Size
19% 18% 21% 16% 9%
52%47%46%57% 61%
74%
17%23%
22%40% 30%34%
14%
2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
≦6" 6.2"~10.1" ≧11"
Dec 2016 -9-
Demand vs. needed capacity
� Y2017 mobile phone area demand are 13,239 K m2 , YoY is about 8%.(Y2016 12,290 K m2)
� Due to the increasing sizes of display, the needed capacity increases a lot. Particularly, the display sizes of
feature phones increases rapidly.
Dec 2016 -10-
2016 Revenue Review
Segments
2016 Revenue NTD 20.6 Billion (till 2016, Nov.)
Revenue
Share18% 53% 5% 14% 9%
Achievement
Record
★ Successful co-work experience in Mainland China market
★ Leading in Worldwide Feature Phone market. (182.8M with 28.5% market share)
★ Leading in Entry level Smartphone TN display. (119.4M with 32.1% market share)
★ 40 M On-Cell touch shipment in 2016 (9.5M in 2015)
Dec 2016 -11-
Core Technology
Natural Slim• G5.3 0.25t Glass direct input• Slim, Lighter and easier for Curved application
a-Si TFT technology• most mature & High yield TFT back-plane• 400dpi coverage
IPS-Pro• High Contract IPS ready for Auto in 2017
On-Cell Touch• Cost effective touch solution
Dec 2016 -12-
Automotive Market Trend
Dec 2016 -13-
HannStar Position in Automotive Display
