TPV Technology Limited

Transcription

1 TPV Technology Limited 2018 FIRST QUARTER RESULTS 16 th MAY 2018 Philips 65 OLED 4K TV

2 Financial Summary

3 Overview 1Q18 US$2.24 bln 8.9% US$12.1 mln (US$8.0 mln) (US0.34 cent) 1Q17 US$2.12 bln +5.4% 8.0% +0.9 ppt US$25.4 mln -52.4% US$9.9 mln US0.42 cent Revenue GP margin Operating profit (Loss)/Profit attributable to shareholders (LPS)/EPS Revenue went up slightly on the back of stronger TV shipments GP margin improved mainly attributable to lower panel prices and a favorable currency environment OPEX increased 10% Y/Y due to higher logistics and marketing expenses resulting in a breakeven before tax profit 1Q mln sets 10.4 mln sets US$248 US$115 1Q mln sets +8.0% 10.3 mln sets +1.3% US$ % US$ % TV shipment Monitor shipment TV ASP Monitor ASP TV demand in China showed sign of recovery with 3% growth Y/Y. Yet, market competition remained fierce Global shipment for TV during the quarter was 47.7 mln sets, +2% Y/Y, while monitor shipments at 29.3 mln, the same as 1Q2017 Monitor ASP continued to climb as specialty monitors were contributing >10% of the segment revenue 3

4 Results Overview Philips TV 5863

5 TV (US$ mln) 1Q18 1Q17 Y/Y Revenue % GP % GPM (%) ppt OPEX (121) (97) +24.7% Adj operating loss (30) (27) +9.1% Shipment (mln units) % Revenue, GP and Adj OP ASP and GP per unit Revenue increased 6% Y/Y attributing to higher shipment and favorable currency development Increase in GP was offset by higher OPEX for logistics and marketing expenses to stimulate shipment Shipment to Europe and South America surged 40% and 76% Y/Y respectively, helped by their strengthening economies. However, the growth was offset by the drop of our shipment to China market Shipment of 50-inch accounted for approximately 23% of total (1Q2017: 19%) Revenue Contribution by Market Volume Contribution by Business 5

6 Monitor (US$ mln) 1Q18 1Q17 Y/Y Revenue 1,195 1, % GP % GPM (%) ppt OPEX (64) (49) +31.8% Adj operating profit % Shipment (mln units) % Revenue, GP and Adj OP ASP and GP per unit Revenue went up 5% Y/Y attributing to higher ASP at US$115 (1Q2017: US$111) GP margin improved thanks to higher shipment of large-size models and specialty monitors. 24-inch shipment grew 23% Y/Y and accounted for 41% of total for the quarter Similar to TVs, shipment to Europe and South America recorded impressive growth of 18% and 50% respectively Revenue Contribution by Market Volume Contribution by Business 6

7 Key Financial Metrics Condensed Income Statement (USD mln) 1Q18 1Q17 Y/Y Revenue 2,239 2,123 +5% GP % FX loss (16) 6 na OPEX (183) (167) +10% Operating profit % Profit before tax 0 16 na (Loss)/profit attributable to shareholders (8) 10 na Income Statement Ratios 1Q18 1Q17 Y/Y GP margin 8.9% 8.0% +0.9ppt Operating Cash Flow Highlights (USD mln) 1Q18 1Q17 Operating profit Depreciation and amortization Changes in working capital (21) (249) - inventories (36) (141) - Trade receivables Trade payables (112) (255) Net cash (used in)/generated from operations (23) (254) Interest paid (9) (8) Income tax paid (10) - Net cash (used in)/generated from operating activities (42) (262) OP margin 0.5% 1.2% -0.7ppt OPEX/revenue 8.2% 7.8% +0.4ppt NP margin (0.4%) 0.5% na Higher GP was offset by the increase in OPEX to stimulate sales Reduced operating cash outflow attributable to tight inventory control 7

8 Key Balance Sheet Items and Key Ratios Balance Sheet (USD mln) Mar 2018 Mar 2017 Variance Intangible assets % Inventories 1,355 1,534-12% Trade receivables 1,866 1,707-9% Cash and bank balances % LT debts % Total debts 902 1,052-14% Key Ratios 1Q18 1Q17 Inventory turnover 60 days 68 days AR turnover 78 days 76 days AP turnover 88 days 95 days Cash conversion cycle 50 days 49 days Current ratio 120% 118% Gearing ratio* 16.5% 18.3% Total liabilities 3,910 4,052-4% Inventory balance was kept at US$1.35 bln, a slightly higher level than normal seasonality, in anticipation of higher shipment in 2Q18 driven by the World Cup The Group utilized more long term banking facilities to strengthen its capital structure and reduce finance cost *Gearing ratio is calculated as total borrowings including payable under discounting arrangement/total assets 8

9 Competitive Landscape

10 Global Shipment Forecast and Market Position TV (unit mln) (F) 2019(F) 2020(F) 2021(F) Manufacturer Market Share Worldwide Growth % -1.1% -2.9% +3.5% +2.5% +4.0% +0.0% Monitor (unit mln) (F) 2019(F) 2020(F) 2021(F) Manufacturer Market Share Worldwide Growth % -1.3% -1.2% -0.2% +0.1% +0.1% -0.1% Source: ihs, Witsview and TPV marketing and suppliers, May 2018 Note: 2017 year end market share in blanket 10

11 Supplementary Information

12 Condensed Balance Sheet (USD mln) Mar 2018 Dec 2017 Difference Fixed assets 1,441 1,462-1% - Intangible asset % Current assets 4,015 4,103-2% - Inventories 1,355 1,318 +3% - Trade receivables 1,866 1,984-6% - Cash and bank balance % Total assets 5,456 5,564-2% Non-current liabilities % - Borrowings and loans % - Other payables and accruals % Current liabilities 3,251 3,343-3% - Trade payables 1,914 2,024-5% - Other payables and accruals % - Borrowings and loans % Total liabilities 3,910 4,001-2% Total equity 1,545 1,563-1% Total liabilities and equity 5,456 5,564-2% 12

13 Income Statement (USD mln) 1Q18 1Q17 Y/Y Revenue 2,239 2,123 +5% GP % Other income % Other losses net (16) 4 na OPEX (183) (167) +10% OPEX (USD mln) 1Q18 1Q17 Y/Y Sales and distribution % Administration % R&D % Total % Operating profit % Finance cost net (8) (10) -21% Share of JV and associates (4) 1 na Profit before tax (0) 16 na Revenue by Geographic Region Income tax (9) (6) +65% Profit for the period (9) 11 na Attributable to: Owner of the Company (8) 10 na Non-controlling (1) (1) na 13