YAGEO Corporation. Sep, 2011

Transcription

1 YAGEO Corporation Sep,

2 Disclaimer This announcement is not, and is not intended to be, an offer of securities for sale in the United States. Securities may not be offered or sold in the United States a b s e n t r e g i s t r a t i o n o r a n e x e m p t i o n f r o m r e g i s t r a t i o n u n d e r the U.S. Securities Act of Any public offering of securities to be made in the United States must be made by means of a prospectus containing detailed information about the issuer of the securities and its management as well as financial statements. There is not, and is currently not intended to be, any public offering of securities by Yageo Corporation in the United States

3 Agenda Company Overview Dominant Presence in China Financial Summary 3 3 3

4 Passive Components Consumption in End Products NB 1,300 units Smart Phones 720 units LED TV 750 units Game Consoles 1,750 units STB 850 units Automotive 3,500 units Volume growth in in passives outstrips underlying end-product demand 4 4 4

5 Transform to an Innovative Service Provider A general mass producer of passive component Yageo s Mission: Be a leading global passive component supplier providing innovative services around the globe 5 5 5

6 The Roadmap to Global Leadership Leading resistor producer Dominant supplier in Taiwan Deploying globalization strategy through M&A and capacity expansion Transition to leading global supplier of passive component solution services Investment in Chilisin (Taiwan) Dongguan & Suzhou resistor Plants (China) 1st and 2nd Suzhou MLCC Plants (China) Investment by KKR as strategic partner Investment in Teapo (Taiwan) 3rd Kaohsiung MLCC plant (Taiwan) Acquisition of Chipcera (Taiwan) Listed on TSE Acquisition of Vitrohm (Europe) MLCC Back-end Facilities in Dongguan & Suzhou (China) Acquisition of Compostar (Taiwan) 1 st Kaohsiung resistor plant (Taiwan) 2nd Kaohsiung resistor plant (Taiwan) Acquisition of Phycomp & Ferroxcube (EU) Company established Hsin Tien resistor plant (Taiwan) Investment in ASJ (Singapore) Acquisition of Steller (U.S.A.)

7 KKR-Strategic Partner of Yageo Yageo s ECB has brought in KKR as a Strategic Partner Yageo has issued an ECB of US$230mln, unsecured zero coupon, zero yield, no put option, with a maturity of 7 years (2014) and an original conversion price of NT$16.15/ share KKR has subscribed to 99% of the issue and would hold more than 20% equity stake if fully converted (current conversion price: NTD ) Why KKR? Leverage KKR s global resources, networking and M&A expertise, strong position in IT industry Facilitate Yageo s global consolidation and expansion in forming strategic alliances 7 7 7

8 A Global Passive Component Leader World s leading provider of total passive component solutions with production, sales, RD, and logistic facilities in Asia, Europe and the America. Offers One-stop-shopping experience with the following. No. 1 in Chip resistors No. 3 in MLCC No. 5 in Ferrites Inductor/Ecap High Frequency Markets brands including: Yageo, Phycomp, Ferroxcube, Vitrohm, Chilisin, and Teapo. Y2010: US$863 Million, YoY: 42.8%. Founded in 1977, publicly listed on TSE since 10/93, GDR listed on LUX since 9/94, acquired Philip s Passive in 2000, invited KKR to become the strategic partner in

9 Leadership Position in Principal Products by Capacity Chip Resistors - Ranked No. 1 Panasonic SEMCO 6% 5% ROHM 5% Ralec 5% Walsin 6% KOA 7% Others 8% UniOhm 13% Magnetics - Ranked No. 5 YAGEO Da-I 15% 30% TDG 11% MLCCs - Ranked No. 3 DMEGG 13% Murata 26% SEMCO 17% Others 14% TDK 8% Yageo 8% YAGEO 10% Taiyo Yuden 9% Walsin 8% Kyocera 8% TDK 15% Source: Paumanok / Yageo Marketing Group Others 43% ACME 10% 9 9 9

10 Serving Leading Global Customers PC / Systems OEMs Communication OEMs Consumer Electronics Tier-One EMS Providers Distributors Automotives 10 10

11 Intensive Global Sales & Service Offices ~ 27 cities in 18 countries Benelux Poland Hungary Russia Beijing Tianjing Korea U.K. San Jose Dallas Mexico Germany Portugal Spain Japan Qingdao Suzhou Wuhan/ Chengdu/ Chongqing Taiwan France Italy Singapore Hong Kong Dongguan 11 11

12 Global Logistics Network ~ Providing JIT, VMI, STL, B2B Services Suzhou Poland* Hungary Dongguan Taiwan Portugal Spain* Singapore * Ferroxcube Ferrites logistics sites 12 12

13 Yageo R&D and FAE Network Japan San Jose Europe Asia (Suzhou, China) All products Dongguan Advanced Technologies Japan Korea Taiwan Asia Pacific ex-japan (Kaohsiung, Taiwan ) All products R&D Centers FAE Support Centers 13 13

14 Agenda Company Overview Dominant Presence in China Financial Summary 14 14

15 Leading Market Shares in China R-Chip No. 1 (by Quantity) MLCC No. 3 (by Quantity) 46% 42% 35% 35% 36% 38% 39% 40% 15% 17% 18% 18% 19% 20% 22% 23% ** Estimated by Yageo Marketing Group ** 15 15

16 Competitive Capacity Expansions in China Capacity Expansion in China R Chip Capacity Expansion in China - MLCC Billion PCS/Month % CAGR % CAGR

17 Superior Customers with a Strong China Footprint Global Customers Taiwan Customers China Customers Japan Customers 17 17

18 Greater China Coverage 4 distribution centers in Taiwan, Suzhou, Dongguan, Honk Kong 52 distributors, 90 branch offices, covering 24 cities 18 18

19 Agenda Company Overview Dominant Presence in China Financial Summary 19 19

20 2010 Income Statement YoY Comparison Yageo Group Consolidate (audited) Amount in NTD MM 1H11 1H10 Y-Y Amount % Amount % Change % Net Sales 13, , (0.9) Cost of Sales (10,353.3) (77.5) (9,665.6) (71.7) 7.1 Gross Profit 3, , (21.2) Operating Expenses (1,333.9) (10.0) (1,355.8) (10.1) (1.6) Operating Income 1, , (32.0) Non-operating Items (125.8) (0.9) NA Income Before Tax 1, , (27.1) Income Tax (564.4) (4.2) (212.3) (1.6) Minority Interest (6.5) (12.3) (47.0) Net Income 1, , (46.5) EPS EBITDA 3, , (20.3) 20 20

21 Q Income Statement Yageo Group Consolidate (audited) Amount in NTD MM Q2/11 Q1/11 Q-Q Q2/10 Y-Y Amount % Amount % Change % Amount % Change % Net Sales 6, , , (4.9) Cost of Sales (5,303.4) (5,049.8) (5,045.5) (70.0) 5.1 Gross Profit 1, , , (28.3) Operating Expenses (687.1) (646.8) (710.2) (9.9) (3.3) Operating Income , (40.5) Non-operating Items (44.9) -0.7 (262.2) (179.3) (2.5) NA Income Before Tax , (26.4) Income Tax (452.1) -6.6 (112.3) (159.0) (2.2) Minority Interest (2.6) 0.0 (3.9) (34.4) (7.8) (66.6) Net Income (25.0) 1, (56.3) EPS EBITDA 1, , (27.8) 21 21

22 Non-operating Items Yageo Group Consolidate (audited) Amount in NTD MM Q211 Q111 Q410 Q310 Q210 Q110 Foreign Exchange Gain(Loss) (13.4) (33.0) 17.1 ECB Reset valuation ECB Interest expense (49.8) (50.4) (52.1) (54.2) (53.8) (53.4) Interest Income(Expense) Investment Income(Loss) Asset Impairment Loss Restructuring Cost (12.4) Others 0.7 (35.0) (76.8) (74.6) (163.5) (44.9) (18.9) (35.7) (179.3)

23 Selected Items from Balance Sheet Yageo Group Consolidate (audited) Amount in NTD MM Q2/11 Q1/11 Q4/10 Q3/10 Q2/10 Q1/10 Amount Amount Amount Amount Amount Amount Cash and Cash Equivalents 9,637 7,362 8,699 8,309 7,137 9,066 Account Receivable 7,242 6,849 6,244 7,573 7,377 6,315 Inventory 5,799 5,313 5,340 4,763 4,062 3,560 Other Current Assets , Long-Term Investment 6,351 6,283 6,729 6,379 6,178 6,604 Fixed Assets 17,308 17,266 17,079 17,502 17,031 16,620 Other Assets 5,495 5,823 5,594 5,924 5,671 6,032 Total Assets 52,470 49,691 50,345 51,496 48,450 48,978 Short term Loans 5,122 2,539 1,961 3,681 1,244 2,607 Current Liabilities 7,510 7,204 7,911 8,907 7,916 6,226 Long-Term Loans 500 1,000 2,200-2,000 2,900 Bonds Payable 5,937 6,014 5,912 6,298 6,499 6,353 Other Liabilities Total Liabilities 19,419 17,113 18,348 19,264 18,038 18,469 Total Shareholders Equity 33,050 32,579 31,996 32,232 30,412 30,

24 Cash Flow Yageo Group Consolidate (audited) Amount in NTD MM Q211 Q111 Q410 Q310 Q210 Q110 Amount Amount Amount Amount Amount Amount Net Cash Provided by (Used in) Operating Activities ,559 1,591 1,642 1,649 Net Cash Provided by (Used in) Investing Activities (753) (959) (784) (957) (920) (868) Net Cash Provided by (Used in) Financing Activities 2,118 (960) (2,253) (1,398) FX Difference (872) 115 (399) (352) Net Increase (Decrease) in Cash and Cash Equivalents 2,275 (1,337) 390 1,172 (1,929) (969) Cash and Cash Equivalents, Beginning of Period 7,362 8,699 8,309 7,137 9,066 10,035 Cash and Cash Equivalents, End of Period 9,637 7,362 8,699 8,309 7,137 9,

25 Working Capital Management Yageo Group Consolidate (audited) Amount in NTD MM Q211 Q111 Q410 Q310 Q210 Q110 Accounts Receivable 7,242 6,849 6,244 7,573 7,377 6,315 DSO Inventory 5,799 5,313 5,340 4,763 4,062 3,560 Inventory Conversion Period Accounts Payable 5,011 4,911 5,343 6,358 5,608 4,743 Payable Deferral Period Net Working Capatial 8,029 7,250 6,241 5,978 5,832 5,132 Cash Conversion Cycle

26 Corporate Governance Awards on Corporate Governance QFII Holdings 2007 CG Certificate by Taiwan Corporate Governance Association One of the six companies certificated by CGA 50% 40% 43.1% 37.5% 36.2% 39.0% 36.3%37.9%38.8% 38.8% 45.3% 46.4%44.6% 41.7% 45.0% 2005/06 CN Intelligence Research Yageo rated A in corporate governance 2003/2004 Euromoney Survey 2003, one of the five companies recognized in Taiwan 2004, one of the four technology companies recognized in Taiwan 30% 20% 10% 0% Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'

27 Agenda Company Overview Dominant Presence in China Financial Summary Market / Business Outlook 27 27

28 Sales Breakdown Sales by Products 2010 Sales by Regions HF 1% Ot hers 13% Ferrit es 10% R-Chip MLCC 42% Eur ope 24% As ia/ Res t 8% US 2% G reat China 66% 34% NT$ billion NT$ billion 28 28

29 Major End Market Segments Sales by Segments 2010 Sales by Channels Automotiv e 2% Industry 18% Telec om 28% Direct Sales 40% DIS 46% Consumers 20% Computer 32% EMS 14% NT$ billion NT$ billion 29 29

30 Thank you