Second Quarter 2018 Results

Transcription

1 Inside your life! Second Quarter 2018 Results July 25, 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 \1,517.9bn and operating income \13.4bn Financial Results Revenue & Profit Q1 18 QoQ Q2 18 YoY Q2 17 Revenue Operating Margin Revenue 1, % 1, % 1,339.6 Operating income % % % 0.9% 2.4% (%) 1.0% -0.1%p 0.9% -1.5%p 2.4% Income before tax Net income -9.7 Turned positive Turned positive % % , , ,339.6 EBITDA * (%) 8.0% +0.7%p 8.7% +0.5%p 8.2% CAPEX Q1 18 Q2 18 Q2 17 * EBITDA = Operating income + Depreciation + Amortization 1

4 Q Financial Position Net debt rose due to investments into main products Financial Position Q1 18 QoQ Q2 18 YoY Q2 17 Financial 사업부문별 Ratios 매출비중 Liability-to-equity Net gearing Net debts(tn won) Total assets 5, % 5, % 4,245.7 Current assets 1, % 1, % 1,867.9 Cash & equiv.* % % % 143% 40% 42% 201% 58% 179% 82% Non-current assets 3, % 3, % 2,377.8 Total liabilities 3, % 3, % 2,430.1 Current liabilities 1, % 1, % 1,242.4 Non-current liabilities 1, % 1, % 1, (Total debts) 1, % 1, % 1, Q1'18 1H18 Total equity 1, % 1, % 1,815.6 Q2 18 net interest expenses \11.5bn * Cash & equivalents = Cash + Deposits (including foreign deposits) 2

5 Optic Solutions Results & Outlook Q2 18 Highlights - Demand remained slow, but sales grew on a y-on-y basis - Supplied high-end cameras for the latest flagship smartphones of LG Electronics and Chinese customers Q3 18 Outlook - Sales to grow backed by a major new product cycle - Continue to supply new products for LG Electronics and Chinese customers Sales Trend Key Strategies Maintain global leading position in main products - Ramp-up/development of new/next gen. products - Reorganization of production sites for improved cost efficiency Diversify into China / Enhance competitiveness - Expand in China by offering market-leading solutions - Reduce costs through higher productivity and better yields Sales Breakdown Q2 18 Sales : QoQ 20%, YoY 28% By Camera Pixel-size 12Mp & Above 8Mp & Lower 23% 15% 9% 13% 8% , , , % 85% 91% 87% 92% Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 1Q'18 Q1 18 2Q'18 Q2 18 Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 Q2'18 Q2 18 3

6 Substrates & Materials Results & Outlook Q2 18 Highlights - Display/package products posted stable growth - Quarterly profit increased on customer diversification and improvements in operating efficiency Q3 18 Outlook - Mobile substrates sales to grow on stronger demand - Display/package products to maintain strong earnings Key Strategies Enhance the competitiveness of the substrates business - Ramp-up of new mobile substrates for key customers - Continuously improve productivity and cost competitiveness - Develop next gen. 5G packages and related-technologies Secure future growth businesses - Preparation for 10.5-gen. photomask production - Continuous R&D on new display-related materials Sales Trend Main Products Q2 18 Sales : QoQ 12%, YoY 9% Substrates Materials % 21% % % % High-end Substrates 76% 79% 77% 75% 75% Display Products Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 Q2'18 Q2 18 Substrates : HDI, Tape Substrate, Package Substrate / Materials : Photomask, Touch Window 4

7 Automotive Components Results & Outlook Q2 18 Highlights - Sales of ADAS cameras and EV powers continued to grow - Secured \1.3tn new orders and \10.9tn backlog in 1H18 Q3 18 Outlook - ADAS cameras and EV powers to maintain steady growth - New orders to recover and increase in 3Q Key Strategies Improvement of business structure - Improve cost structure by expanding platform/modular products - Develop high-value hybrid modules and EV/autonomous parts - Increase orders from overseas customers Enhance competitiveness of new businesses - Continue to expand the automotive camera & LED businesses - Strengthen partnerships with customers and LG affiliates Sales Trend New Products / Order Status Q2 18 Sales : QoQ 10%, YoY 23% EV/Autonomous Products * Battery Management System Order Status New Orders Accumulated Backlog Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 Q2'18 Q Q1' H (tn won) 5

8 LED Results & Outlook Q2 18 Highlights - Sales declined on ongoing restructuring - Expanded high-value UV/auto. LED sales Q3 18 Outlook - Sales to increase on improved seasonal demand - UV/auto. LED sales to continue to increase Key Strategies Expand high-value differentiated products - Expand UV LED sales and diversify into new applications - Expand the auto. LED business and secure new orders Focus on improving operational efficiency - Improve productivity and continue cost innovation Sales Trend High-value LEDs Q2 18 Sales : QoQ 6%, YoY 34% Lighting/Auto./UV BLU UV Applications 44% 45% % 39% % 56% 55% 57% 61% 57% Automotive Q2'17 Q2 17 Q3'17 Q3 17 Q4'17 Q4 17 Q1'18 Q1 18 Q2'18 Q2 18 * Daytime Running Lamp 6

9 Financial Summary Income Statement Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Revenue 1, , , , , , , , , , , ,517.9 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% 0.9% Income before tax Net income Cash Flow Q1 18 Q2 18 Cash at the beginning of Period Cash flow from operating activities (32.6) Net income/loss (9.7) 15.9 Depreciation Change in working capital (51.1) Others (77.4) (118.9) Cash flow from investing activities (444.5) (310.0) Balance Sheet Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Increase in tangible assets (426.0) (325.9) Increase in intangible assets (19.6) (18.6) Cash flow from financing activities Increase / Decrease in debt Total Assets 3, , , , , , , , , ,487.2 Current Assets 1, , , , , , , , , ,988.2 Cash & Equivalents Non-current Assets 2, , , , , , , , , ,499.0 FX effect from cash denominated in foreign currency (0.3) 2.4 Net changes in cash (35.7) (8.0) Cash at the end of period Total Liabilities 2, , , , , , , , , ,520.1 Current Liabilities 1, , , , , , , , , ,734.3 Non-current Liabilities , , , , , ,785.8 Shareholder s Equity 1, , , , , , , , , ,967.1 Total Debt 1, , , , , , , , , ,940.7 Liabilities-to-Equity 120.0% 123.5% 155.9% 143.1% 125.9% 133.8% 175.5% 201.3% 166.3% 178.9% Net Gearing Ratio 41.2% 42.5% 48.5% 41.6% 42.2% 43.8% 56.5% 58.1% 64.4% 82.1%

10 Sales Trends by Division Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Optic Solutions , , , , , , Substrates & Materials , , Automotive Components LED Others* & Inter-company Transactions Total Revenue 1, , , , , , , , , , , ,517.9 * Others : Includes the Electronics business and ESL, which were previously included in the Automotive division