First Quarter 2018 Results

Transcription

1 Inside your life! First Quarter 2018 Results April 24, 2018 Mobile Automotive Display Semiconductor IoT LED

2 Contents Ⅰ. Q Results Ⅱ. Results & Outlook by Business - Financial Summary Disclaimer The information contained in this document may include certain statements, estimates and projections. Any such statements, estimates and projections reflect various assumptions by LG Innotek Co., Ltd.( The Company ) concerning anticipated trends, which assumptions may or may not occur. No representations are made as to the accuracy of such statements, estimates or projections and actual performance may be materially different from that set forth in such statements, estimates or projections. The Company makes no warranty or assurance regarding achievability of projections nor the data, information and assumptions relied upon herein. Opinions and estimates constitute the Company s judgment as of the date of this material and are subject to change without notice. The Company expressly disclaims any and all liability for any representations, expressed or implied, contained in, or omissions from, this material. This document is for information purposes only.

3 Q Results Posted revenue of \1,720.5bn and operating income of \16.8bn Financial Results Revenue & Earnings Q4 17 QoQ Q1 18 YoY Q1 17 Revenue 2, % 1, % 1,644.7 Operating income % % 66.8 Revenue 4.9% Operating Margin 1.0% 4.1% (%) 4.9% -3.9%p 1.0% -3.1%p 4.1% Income before tax Net income Turned to loss Turned to loss Turned to loss Turned to loss EBITDA * (%) 8.8% -0.8%p 8.0% -0.7%p 8.7% 2, , ,644.7 CAPEX Q4 17 Q1 18 Q1 17 * EBITDA = Operating income + Depreciation + Amortization 1

4 Q Financial Position Net debt rose due to continuous investments into main products Financial Position Q4 17 QoQ Q1 18 YoY Q1 17 Financial 사업부문별 Ratios 매출비중 Liability-to-equity Net gearing Net debts(tn won) Total assets 5, % 5, % 4,032.4 Current assets 2, % 1, % 1,832.6 Cash & equiv.* % % % 143% 40% 42% 201% 166% 58% 64% Non-current assets 3, % 3, % 2,199.8 Total liabilities 3, % 3, % 2,247.0 Current liabilities 2, % 1, % 1,168.0 Non-current liabilities 1, % 1, % 1, (Total debts) 1, % 1, % 1, Q1'18 Q1 18 Total equity 1, % 1, % 1,785.4 Q1 18 net interest expense of \9.0bn * Cash & equivalents = Cash + Deposits (including foreign deposits) 2

5 Optics Solution Results & Outlook Q1 18 Highlights - Sales declined on seasonally weak demand - Produced high-end cameras for LG Electronics and Chinese customers Q2 18 Outlook - Demand to remain slow prior to a new product cycle - To supply high-end cameras for the latest flagship smartphones of LG Electronics and Chinese customers Sales Trend Key Strategies Strengthening global leading position - Development/ramp-up of new products for main customers - Production site reorganization for improved cost efficiency Diversifying into China & Developing next-gen. solutions - Expansion of China sales through market-leading solutions - Development of next-generation, in-house technologies Sales Breakdown Q1 18 Sales QoQ 51%, YoY 10% By Camera Pixel-size 12Mp & Above 8Mp & Lower 11% 23% 15% 9% 13% , , , % 77% 85% 91% 87% Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 1Q'18 Q1 18 Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 3

6 Automotive Components Results & Outlook Q1 18 Highlights - Continued to expand orders from overseas customers; Secured \880bn new orders in the first quarter - Automotive camera and LED sales continued to grow; Sales of new products also grew, inc. wireless charging Q2 18 Outlook - Earnings to increase reflecting the conversion of secured projects into sales and recovery of demand Sales Trend Key Strategies Continuous improvement of business structure - Improvement of cost structure by expanding platform/modular-design products - Development of high value hybrid modules and parts for EV/autonomous applications Enhancing competitiveness of new businesses - Expansion of automotive camera & LED products - Strengthening partnerships & Securing core technologies New Products & Order Status Q1 18 Sales QoQ 1%, YoY 4% EV/Autonomous Products New Orders Accumulated Backlog Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q Q1'18 The Electronics business was separated from the Automotive division since 2018, and accordingly the division has been renamed to Automotive Components, from Automotive & Electronics 4 Order Status * Electric Vehicle Communication Controller Q1 18 (tn won)

7 Substrates & Materials Results & Outlook Q1 18 Highlights - Mobile demand declined on weak seasonality - Package/display products posted stable earnings Q2 18 Outlook - Mobile demand to gradually improve - Display products to maintain solid earnings Key Strategies Continuing to focus on profit improvement - Development of new products for mobile customers - Improvement of productivity and resource efficiency Fostering future growth businesses - Preparation for the next generation photomask production - Development of new business opportunities Sales Trend Main Products Q1 18 Sales QoQ 19%, YoY 1% % 24% Substrates Materials % 21% % High-end Substrates 73% 76% 79% 77% 75% New Products Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 Substrates : HDI, Tape Substrate, Package Substrate / Materials : Photomask, Touch Window 5

8 LED Results & Outlook Q1 18 Highlights - Earnings improved on a sequential/annual basis through a business reorganization and improved cost structure Q2 18 Outlook - UV and automotive LED sales to continue to expand - To continue business reorganization efforts Key Strategies Expand high value, differentiated products - Expansion of high power UV LED sales and product lines - Enhancing competitiveness of auto. and lighting LED products Continuous focus on improving profitability - Winning new strategic customers in high value applications - Continuing cost innovation activities for profit enhancement Sales Trend High Power LED Products Q1 18 Sales QoQ 9%, YoY 25% Lighting BLU UV % % 49% % 44% 47% 52% 51% 51% 56% Automotive Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 * Daytime Running Lamp 6

9 Financial Summary Income Statement Cash Flow Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q4 17 Q1 18 Cash at the beginning of Period Revenue 1, , , , , , , , , , ,720.5 Operating income Operating margin 0.0% -3.0% 1.5% 5.7% 1.8% 4.1% 2.4% 3.1% 4.9% 3.9% 1.0% Income before tax Net income Cash flow from operating activities Net income/loss 86.4 (9.7) Depreciation Change in working capital (97.1) Others (77.4) Cash flow from investing activities (320.3) (444.5) Balance Sheet Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total Assets 3, , , , , , , , ,183.7 Current Assets 1, , , , , , , , ,894.6 Cash & Equivalents Non-current Assets 2, , , , , , , , ,289.1 Total Liabilities 2, , , , , , , , ,237.2 Increase in tangible assets (305.9) (426.0) Increase in intangible assets (18.0) (19.6) Cash flow from financing activities Increase / Decrease in debt FX effect from cash denominated in foreign currency (3.7) (0.3) Net changes in cash 23.3 (35.7) Cash at the end of period Current Liabilities 1, , , , , , , , ,741.3 Non-current Liabilities , , , , ,495.9 Shareholder s Equity 1, , , , , , , , ,946.5 Total Debt 1, , , , , , , , ,588.1 Liabilities-to-Equity 120.0% 123.5% 155.9% 143.1% 125.9% 133.8% 175.5% 201.3% 166.3% Net Gearing Ratio 41.2% 42.5% 48.5% 41.6% 42.2% 43.8% 56.5% 58.1% 64.4%

10 Sales by Division Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Optics Solution , , , , , ,014.1 Substrates & Materials , , LED Automotive Components Others & Inter-company Transactions Total Revenue 1, , , , , , , , , , ,720.5 * Others : Includes the Electronics business and ESL, which were previously included in the Automotive division