2017 Q4 Earnings Results

Transcription

1 2017 Q4 Earnings Results January 23, 2018

2 This presentation contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the United States Securities and Exchange Commission and the Korean Financial Supervisory Service, in our annual report to shareholders, in our proxy statements, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to: our highly competitive environment; the cyclical nature of our industry; our ability to introduce new products on a timely basis; our dependence on growth in the demand for our products; our ability to successfully execute our expansion strategy; our dependence on key personnel; and general economic and political conditions, including those related to the TFT-LCD industry; possible disruptions in business activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates. Additional information as to these and other factors that may cause actual results to differ materially from our forward-looking statements can be found in our filings with the United States Securities and Exchange Commission. All financial information contained in this document is based on consolidated K-IFRS. This presentation also includes information regarding our historical financial performance through 31 st of December, 2017, and our expectations regarding future performance which is available on our investor relations website at under the file name Q Earnings Results Presentation. 2

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4 Revenues Profits (Unit : KRW B) (Unit : KRW B, %) Q4 17 Q3 17 Q4 16 QoQ YoY 2% (QoQ) 10% (YoY) 9,000 8,000 7,000 Operating Income 45 1% 586 8% % -92% -95% 7,126 6,973 7,936 6,000 5,000 4,000 3,000 2,000 EBITDA* Income Before Tax % 44 1,420 20% 599 1,623 20% 1,065-35% -93% -43% -96% 1,000 Net Income % -95% Q4 17 Q3 17 Q4 16 * EBITDA = Operating Income + Depreciation + Amortization Source : Unaudited, Company financials K-IFRS (Consolidated) 4

5 Shipment and ASP (Unit : M m², ASP/m²) Capacity (Unit : M m²) $642 $608 $574 $600 $589 $600 Gen 2~5 Gen 6 Gen 7 Gen $ $300 $ Q4 '16 Q1 '17 Q2 '17 Q3'17 Q4'17 $0 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Net Display area shipment in M m 2 ASP per m 2 (USD) 5 Quarterly producible capacity by area Source: Company financials

6 100% 31% 26% 22% 27% 28% Mobile etc. 50% 17% 14% 16% 15% 15% 17% 17% 18% 16% 14% Notebook & Tablet Monitor 38% 43% 46% 40% 40% TV 0 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Source: Company financials (KRW) 6

7 Financial Positions (Unit : KRW B) Financial Ratios (Unit : %) Q4 17 Q3 17 Q4 16 Q4 16 Q3 17 Q4 17 Assets 29,160 28,792 24,884 Current Assets 10,474 11,334 10,484 Cash* 3,360 3,302 2,722 Liabilities to Equity Ratio 85% 90% 95% Inventory 2,350 2,664 2,288 Non-Current Assets 18,686 17,458 14,400 Liabilities 14,178 13,624 11,422 Current Liabilities 8,979 8,079 7,058 Current Ratio 149% 140% 117% Non-Current Liab. 5,199 5,544 4,364 Shareholders Equity 14,982 15,168 13,462 Debts 5,603 5,384 4,779 Net Debts 2,242 2,082 2,056 Net Debt to Equity Ratio 15% 14% 15% * Cash includes short term financial instruments. Source : Unaudited, Company financials K-IFRS (Consolidated) 7

8 Net Cash Flow (Unit : KRW B) Cash Flow Statement (Unit : KRW B) Q4 17 Cash at the beginning of quarter 3,302 Cash flow from operating activities 1,549 Financing Activities 374 Net Income 44 Depreciation & Amortization 885 Change in WC & Others 620 1,865 Investing Activities Change in Working Capital & Others 620 Cash flow from investing activities (1,865) Cash flow before financing activities 374 Depreciation 885 Financing activities 374 Net Income Cash In Cash Out Net Others 0 Net change in Cash 58 Cash at the end of quarter 3,360 Source : Unaudited, Company financials K-IFRS (Consolidated) 8

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13 Unit: KRW Bn Accounts Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 Q Revenue 8,342 26,456 7,022 6,708 7,158 7,496 28,384 5,989 5,855 6,724 7,936 26,504 7,062 6,629 6,973 7,126 27,790 COGS 7,010 22,667 5,661 5,568 6,111 6,730 24,070 5,363 5,245 5,784 6,362 22,754 5,343 5,115 5,717 6,249 22,424 Gross Profit 1,332 3,789 1,361 1,140 1, , ,574 3,750 1,719 1,514 1, ,366 Operating Income 626 1, , ,311 1, ,462 EBITDA 1,532 4,850 1,595 1,347 1, , ,024 1,624 4,333 1,743 1,583 1, ,676 Income before tax 488 1, , ,065 1, ,333 Net Income , ,937 EPS (Unit: KRW) 1,087 2,564 1,330 1, , ,305 2,603 1,899 2,059 1, ,414 Margins (%) Gross Margin Operating Margin EBITDA Margin Source: Unaudited, Company financials K-IFRS (Consolidated) Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding. 13

14 Unit: KRW Bn Accounts Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Assets 22,689 22,967 22,473 22,455 23,796 22,577 22,178 22,567 23,570 24,884 24,805 26,501 28,792 29,160 A/R 3,169 3,444 3,225 3,437 4,348 4,098 3,188 3,489 4,107 4,958 4,431 4,466 4,848 4,325 Cash* 2,364 2,416 2,738 2,677 2,594 2,524 2,407 2,452 2,481 2,722 2,303 2,602 3,302 3,360 Inventory 2,625 2,754 2,646 2,579 2,876 2,352 2,532 2,453 2,492 2,288 2,283 2,343 2,664 2,350 Liabilities 11,297 11,184 10,280 9,821 10,775 9,872 9,677 10,220 11,269 11,422 11,096 11,912 13,624 14,178 A/P 3,207 3,392 2,911 2,651 3,393 2,765 2,538 2,412 3,070 2,877 2,437 2,444 2,963 2,875 Short-term debts 1, ,281 1,085 1,300 1, ,452 1, ,219 1,453 Long-term debts 3,337 3,279 2,715 3,030 3,081 2,808 3,381 3,420 3,680 4,111 3,917 4,188 4,165 4,150 Shareholders Equity 11,392 11,783 12,193 12,634 13,021 12,705 12,501 12,347 12,301 13,462 13,709 14,589 15,168 14,982 BPS (Unit: KRW) 31,838 32,932 34,075 35,309 36,392 35,507 34,936 34,505 34,380 37,624 38,313 40,774 42,391 41,869 Net debt to equity ratio (%) Source: Unaudited, Company financials * Cash includes short term financial instruments. K-IFRS (Consolidated) Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding. 14

15 Unit: KRW Bn Accounts Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 Q Net Income , ,937 Depreciation & Amortization 906 3, , , ,214 Others Working Capital* Cash flow from Operating Activities Cash flow from Investing Activities** Net Cash flow before Financing Activities 1,137 2, , ,019 1,460 3,688 1,162 1,990 1,958 1,549 6, , ,486-1, ,029-1,009-3,798-1,638-1,793-1,587-1,865-6, Financing Activities ,043 Dividends Change in noncontrolling interest *** Net Change in cash Source: Unaudited, Company financials K-IFRS (Consolidated) * Working Capital consists of net change in AR, Inventory, AP and F/X effect ** Cash flow from Investing Activities exclude increase (decrease) of short term financial instruments. *** Equity investments from other companies Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding. 15

16 Unit: KRW Bn Account Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 Q Operating Income 626 1, , ,311 1, , Depreciation 821 3, , , , Amortization EBITDA (1+2+3) 1,532 4,850 1,595 1,347 1, , ,024 1,624 4,332 1,743 1,583 1, ,676 Source: Unaudited, Company financials K-IFRS (Consolidated) We add depreciation and amortization expense to operating income to calculate EBITDA. It is a key financial measure used by our senior management to internally evaluate the performance of our business and for other required or discretionary purposes. We believe that the presentation of EBITDA will enhance an investor s understanding of our operating performance as we believe it is commonly reported and widely used by analysts and investors in our industry. It also provides useful information for comparison on a more comparable basis of our operating performance and those of our competitors, who follow different accounting policies. EBITDA is not a measure defined by GAAP. Our calculation of EBITDA may not be consistent with other similarly titled measures reported by other companies. Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding. 16