TCL 通訊科技控股有限公司 (02618.HK) 2009 Annual Results Presentation

Transcription

1 TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED TCL 通訊科技控股有限公司 (02618.HK) 2009 Annual Results Presentation

2 Agenda Business Review & Outlook Financial Highlights Q&A Appendix: Corporate Information 2

3 Business Review Business Recovery after the financial crisis Total sales volume of 16.1 million units in 2009, an increase of 18% over 2008 and significantly exceeding the sales target of 10 million units for the year. Sales performance in both of overseas and China markets resumed to the levels seen before the financial tsunami. Successful new product launch in mid to high-end segment While solidified the existing low-end handsets business, successfully explored the mid to high-end product segments. QWERTY keypad OT-800 and touch screen OT-708 received favorable response from the market and in great demand. Successful CB buyback and the rights issue Greatly strengthened the financial position with sufficient cash flow. 3

4 Business Review (Cont d) Europe, Middle East and Africa ( EMEA ) Shipments to Europe, the Middle East and Africa ( EMEA ) totaled 6.4 million units in 2009, a 19% increase over The overwhelming market response to the OT-708 ( One Touch MINI ) series predominately drove business growth in these areas. Latin America ( LATAM ) Sales volume in Latin America ( LATAM ) for 2009 reached 6.4 million units, an increase of 7% over the OT-800 ( Jade ) and OT-708 ( One Touch MINI ) handsets were the best-selling products in the region and appealed to customers. They were particularly successful in Mexico. The PRC During the period under review, the Group achieved a satisfactory sales performance in China. A total of 2.8 million units of handsets and accessories were sold last year, an increase of 61% over Positively enhanced efforts in R&D of 3G, and a series of projects already run for TD- SCDMA products. 4

5 Sales Volume and Revenue (Handset and accessories) Sales Volume for Handset and Accessories in 2009 and Units Y2009 Y2008 Change Total 16,123 13, % Overseas 13,351 11, % The PRC 2,772 1, % Sales Revenue for Handset and Accessories in 2009 and 2008 HK $ Million Y2009 Y2008 Change Total 4,361 4,538-4% Overseas 3,880 4,017-3% The PRC % 5

6 Sales Volume in Y Units 2,650 2,400 2,150 1,900 1,650 Sales volume grew remarkably in the fourth quarter, increasing by 100% to 6.8 million units from the same period of Sales volume of December 2009 hit single-month record high to 2.6 million units. 1,400 1, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ALCATEL TCL 6

7 Product Research & Development In 2009, The Group launched a series of low to mid-end handsets to address the different needs of the low to mid-end market. The enriched product mix gave a boost to the Group s overall sales volume. The Group introduced a total of 17 models of Alcatel handsets and 2 models of TCL handsets in Through cooperation with famous brands of fashions & accessories, it enriched handset design and made its product mix more diversified and competitive. OT-708 ( One Touch MINI ) and OT-800 ( Jade ) series. These two models were very popular among customers and in great demand, and they have received an enthusiastic response from the market and were warmly accepted by a number of major telecommunications operators. Positively enhanced efforts in R&D of 3G, and a number of 3G data cards were well received by customers; a series of projects already run for TD-SCDMA products. 7

8 Y2010 New Product 8

9 Y2010 New Product (Cont d) 9

10 Y2010 New Product (Cont d) 10

11 Y2010 New Product (Cont d) 11

12 Y2010 New Product (Cont d) 12

13 Future Outlook The Group will further strengthen and extend cooperation with major telecommunications operators. While consolidating the low-end handset and accessory business, we will steadily explore mid to high-end markets. The Group envisage stepping up efforts to receive more orders for the ODM business, which is forecast to experience robust growth in 2010 and hence drive overall sales volume and operating efficiency for the Group. The Group will enhance efforts in R&D of 3G handsets and accessories, with the intention of launching Android-based and touch screen handsets. Meanwhile, we will continue to diversify our product line by stepping up efforts in developing products like data cards and multifunctional phones, etc. In 2010, we will continue to raise our operating efficiency and to invigorate cost control and risk management, laying a solid foundation for sustainable business growth. 13

14 Agenda Business Review & Outlook Financial Highlights Q&A Appendix: Corporate Information 14

15 Income Statement Highlights Income Statement Highlights (HK$ Million) Y2009 Y2008 Change Sales Volume ( 000 Units) 16,123 13, % Revenue 4,361 4,538-4% Average Selling Price (US$) % Gross profit % Gross profit (%) 22% 18% +4% Profit/(loss) before effect of convertible bonds ,900% Effects of convertible bonds (65) 28 N/A Profit/(loss) after effect of convertible bonds % EBITDA before effect of convertible bonds % EPS (HK$ Cents) (as restated) % Proposed final dividends per ordinary share (HK$ Cents) * N/A * The proposed final dividend for the year is subject to the approval of the Company's shareholders at the forthcoming AGM. 15

16 Financial Position Highlights Financial Position Highlights (HK$ Million) Change Non-current assets % Current assets 6,278 4, % -Inventory % -Cash and cash equivalents 1, % -Restricted deposits received from rights issue excess application 1,604 - N/A -Trade receivable 1, % -Pledged deposit 1,187 1,670-29% -Other current assets % Current liabilities (5,310) (3,349) +59% -Interest bearing bank borrowings (1,461) (1,867) -22% -Trade and notes payable (1,074) (591) +82% -Other payable arising from rights issue excess application (1,604) - N/A -Other current liabilities (1,171) (891) +31% Net current assets % Non-current liabilities (361) (151) +139% -Convertible bonds - (142) N/A -Other non-current liabilities (361) (9) +3,900% Net assets 1,095 1,065 +3% 16

17 Key Sales Figures Revenue by Geographic Segments in Y2009 & Y2008 Sales Volume by Geographic Segments in Y2009 & Y2008 The PRC 11% The PRC 11% The PRC 17% The PRC 13% Overseas 89% Overseas 89% Overseas 83% Overseas 87% Y2009 Y2008 Y2009 Y

18 Sales Volume Recovery Despite the negative effect from global financial tsunami in the 1H 2009, company s recovery started in Jun 2009 and immediately turn into significant growth mode. FY 2009 sales volume significantly increased by 18% over 2008, to 16.1million units. Sales Volume ( 000 units) 7,000 6,825 6,000 5,000 4,000 3,000 2,000 3,374 3,342 3,547 3,432 2,276 2,782 4,240 1, Q Q Q Q Q Q Q Q

19 Uptrend in GP% GP % 25% 22% 20% GP 18% 18% 17% GP 22% 15% 14% 10% Y2006 Y2007 Y2008 Y2009 GP% 19

20 Turnaround in Profitability Gross Profit (HK$ million) Profit before tax and effect of CB (HK$ million) HK$ Million HK$ Million Q1 09Q2 09Q3 09Q (20) (40) (60) Q1 09Q2 09Q3 09Q4 (42) 20

21 Key Financial Ratios Successfully completed the early buyback of all outstanding CB in mid 2009, eliminated the dilution effect and improved the financial position. Successfully improved the company s cash position by raising HK$358 million in January 2010 through rights issue Current Ratio Account Receivable Turnover Days Inventory Turnover Days* Cash and cash equivalents (HK$ million) 1, Convertible Bonds (HK$ million) * Finished goods only 21

22 Agenda Business Review & Outlook Financial Highlights Q&A Appendix: Corporate Information 22

23 Q & A For further enquiries: Mr. Andrew Yip Tel: (86) Ms. Cherry Pang Tel: (86) ir.tclcomm@tcl.com 23

24 Agenda Business Review & Outlook Financial Highlights Q&A Appendix: Corporate Information 24

25 Company Overview Principal Business Background Research & Development, manufacturing and global sales of mobile phones and accessories of two key brands: TCL (in China) ALCATEL (in Europe, Middle East, Africa, Americas, Asia-Pacific and China) A member of TCL Corporation Listed on the Hong Kong Stock Exchange in Sep (02618 HK) Huizhou Investment Holding Ltd Philips TCL Employee Committee Mr. LI Dongsheng Other & Public Mr. LI Dongsheng Mr. GUO Aiping Chairman & ED CEO & ED TCL Corporation Public Shareholders 2.53% 0.14% 46.63% 50.70% TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED ( HK) *The above information was updated to 28 February

26 Strong Brands Power TCL Brand established since 1981 as a leading electronics brand in PRC No.1 of 2002 Deloitte Technology Fast 500 Asia Pacific Winners Total estimated brand value of RMB40.1bn and ranked the 3rd Most Valuable Brand in China according to China Most Valuable Brand survey in 2007 Established in France since 1898 World widely accepted by its fame and great reputation Typical brand in Europe s telecommunication industry 26

27 Global Presence Production Facilities, R&D Centers, Sales Offices Headquartered in Shenzhen, China Global research facilities located in Shenzhen, Shanghai and Huizhou Global factory located in Huizhou Global presence across over 80 countries and regions 65 repair centers, over 50 offices, over 4,000 employees around the world Paris: - Sales Center Shanghai: - R&D Center Mexico City: - Sales Center Huizhou: - Global factory - R&D Center Shenzhen: - Headquarter - R&D Center 27

28 Product Mix Market segments GP Margin 28 High Mid Existing Low High end Mid end Low end

29 29

30 Strong R&D Capability More than 700 highly skilled and experienced research engineers distributed in Shanghai, Shenzhen and Huizhou The ownership of GSM core technological patents obtained through acquisition of ALCATEL mobile phone business One of the few companies who own 2G, 2.5G, 2.75G core patents in the world, excellent tradition of research and development Able to provide solutions to GSM, GPRS, EDGE, CDMA, WCDMA, TD-SCDMA independently Start to work on 3G, projects already run for TD-SCDMA products Focus on innovation as well as the high quality of our products 30

31 High efficient Production Facilities Production capacity of approximately 30 million units annually World-class SMT production lines and supporting facilities Experience of efficient global logistics Manufacture center in Huizhou, China Strict tests by key telecommunication operators in the world ISO9001 and ISO14001 qualified Testing & manufacturing capability for platform TI, MTK, ADI & QUALCOMM SMT production line Testing centre 31

32 Alliances with Major Operators EMEA USA China LATAM APAC 32

33 Experienced Senior Management Team Chairman Mr. Li Dongsheng CEO George Guo EXCOM PLM BPS Sales HQ Operation GSM Jiyang Wang GAM Eric Vallet PSM Michael Chen EMEA Yves Morel Finance Thomas Liu CDMA Bing Li Planning Annie Tang Global Product Marketing Violetta Jovanovic Americas Nicolas Zibell IS/IT Wanquan Huang BDL Vittorio Di Mauro ODM Haizhen Niu GS James Zhang APAC Albert Wong QMS & GCS Laurent Labbe CMD Ronald Hu KAS George Guo SWL Harry Au China Wanquan Huang GMC Xiaobin Lv TD-SCDMA Kailong Wang NO.2 Creative Center Davy Xu NO.3 Creative Center E-Commerce Feng Xiao Legal Stephen Chiang ACE Richard Yan CEO Office Wubin Sun HR Vanessa Wang *The above information was updated to 28 February

34 Thank you 34