Upload
hangoc
View
231
Download
0
Embed Size (px)
Citation preview
TCL Multimedia Technology Holdings Limited Stock Code: 01070
2012 Interim Results Presentation
2012 Interim Results
Page 2/36
The information contained herein should not be utilized for any legal purposes in regards to
any investor's investment decision or results. In particular, this document does not constitute
any recommendation or invitation for subscribing for or sale and purchase of any securities of
TCL Multimedia Technology Holdings Limited (the "Company"). The Company hereby expressly
disclaims any liability for any loss or damage resulting from or in connection with any reliance
by any investor on the information contained herein.
A number of forward-looking statements may be made during this presentation. Forward-
looking statements are any statements that are not historical facts. These forward-looking
statements are based on the current expectations of the Company and there can be no
assurance that such expectations will prove to be correct. Because forward-looking statements
involve risks and uncertainties, the Company’s actual results could differ materially from these
statements.
Disclaimer
2012 Interim Results
Page 3/36
Agenda
Results Overview
Financial Highlights
Business Review
Outlook
The financial results used in the presentation are unaudited results for the six months ended 30 June
Results Overview
2012 Interim Results
Page 5/36
131
434
1H 2011 1H 2012
343
681
1H 2011 1H 2012
2,060 2,774
1H 2011 1H 2012
13,156 16,380
1H 2011 1H 2012
24.5% 34.7%
98.5% 231.3%
Results Overview • Turnover and gross profit margin improved and satisfactory results achieved
(HK$ million) (HK$ million)
(HK$ million) (HK$ million)
Turnover Gross Profit*
Operating Profit** Profit attributable to owners of
the parent**
*Gross profit margin improved to 16.9% from 15.7% in the same period of last year
** Including the one-off gain of HK$144 million arising from the acquisition of entire equity interest in TCL Optoelectronics Technology (Huizhou) Co., Ltd. and its 60% owned-subsidiary, Huizhou TCL Coretronic Co., Ltd. The acquisition was completed on 18 January 2012.
2012 Interim Results
Page 6/36
4,033 6,477
1H 2011 1H 2012
2,527 3,338
1H 2011 1H 2012
1,506
3,139
1H 2011 1H 2012
32.1% 108.4% 60.6%
Overall PRC Market Overseas Markets*
• Product mix has continuously been optimized. Sales volume of smart & internet TVs and 3D TVs accounted for 38.3% and 16.9% of LCD TV sales volume in the PRC Market, respectively. Sales volume of LED backlight LCD TVs accounted for 66.5% and 67.7% of overall LCD TV sales volume and LCD TV sales volume in the PRC Market, respectively
• The acquisition of the entire equity interest in TCL Optoelectronics Technology (Huizhou) Co., Ltd. and its 60% owned-subsidiary, Huizhou TCL Coretronic Co., Ltd. was completed on 18 January 2012
*Emerging Markets: 103.9 % y-o-y
Results Overview (continued)
1H 2012 LCD TV sales volume
(‘000 sets) (‘000 sets) (‘000 sets)
Financial Highlights
2012 Interim Results
Page 8/36
(HK$ million)
1H
2012
1H
2011
Change
Turnover 16,380 13,156 +24.5%
Gross profit 2,774 2,060 +34.7%
Operating profit 681* 343 +98.5%
Profit attributable to owners of the parent
434* 131 +231.3%
Basic earnings per share (HK cents)
33.55 12.07 +178.0%
Interim dividend per share (HK cents)
10.00 -- N/A
Consolidated Results
* Including the one-off gain of HK$144 million arising from the acquisition of entire equity interest in TCL Optoelectronics Technology (Huizhou) Co., Ltd. and its 60% owned-subsidiary, Huizhou TCL Coretronic Co., Ltd. The acquisition was completed on 18 January 2012.
2012 Interim Results
Page 9/36
LCD TV Average Selling Prices
Average Selling Prices & Profit Margins
1H 2012
1H 2011
Change
Gross profit margin
16.9% 15.7% +1.2%
Expense ratio* 14.0% 14.0% unchanged
Operating profit margin
4.2% 2.6% +1.6%
*Expense ratio = (Selling and distribution costs + administrative expenses) / turnover
Profit Margins
2,404
2,802
2,134
2,565
Overall PRC
1H 2011 1H 2012
(HK$)
2012 Interim Results
Page 10/36
(HK$ million) 30 June
2012
31 December
2011
Change
Non-current assets 2,408 1,797 +34.0%
Current assets 17,443 22,335 (21.9%)
- Inventories
- Cash and bank balances
3,762
3,242
4,298
4,452
(12.5%)
(27.2%)
Current liabilities 14,687 19,749 (25.6%)
Net current assets 2,756 2,586 +6.6%
Non-current liabilities 627 730 (14.1%)
Net assets 4,537 3,653 +24.2%
Balance Sheet Highlights
2012 Interim Results
Page 11/36
30 June
2012
31 December
2011
Change
Inventory turnover (days)* 46 49 3 day
A/R turnover (days)* 36 35 1 days
A/P turnover (days)* 66 65 1 days
Current ratio (times) 1.2 1.1 +0.1
Gearing ratio** 0# 0 Unchanged
*The above turnover days are calculated based on average balance of the year
** Gearing ratio = Net Borrowing/Equity attributable to owners of the parent. Net Borrowing = total interest-bearing borrowings – cash and bank balances – pledged deposits
#As at 30 June 2012, as the Group’s total pledged deposits and cash and bank balances of HK$4.69 billion were higher than total interest-bearing borrowings of HK$3.89 billion, the Group’s gearing ratio was zero.
Key Financial Indicators
2012 Interim Results
Page 12/36
(HK$ million) 1H
2012
1H
2011
Change
TV Business
PRC Market Turnover 8,641 7,484 +15.5%
Gross Profit 2,015 1,588 +26.9%
Operating Results 473 307 +54.1%
TV Business
Overseas Markets Turnover 5,784 3,401 +70.1%
Gross Profit 618 306 +102.0%
Operating Results 108 (63) N/A
AV Business Turnover 1,434 1,927 (25.6%)
Gross Profit 143 152 (5.9%)
Operating Results 44 65 (32.3%)
Segment Results
Business Review
2012 Interim Results
Page 14/36
Continuously Optimizing Results and Key Financial Indicators • Remain committed to “speed and efficiency” in its operational and marketing
strategies with remarkable results
Strong sales volume growth of LCD TVs in the PRC
and Emerging Markets
Optimized product mix
and improved product
competitiveness
Profitability significantly
improved
Reduced inventory and
accounts receivable balance
Continuous and solid financial
position
• The PRC Market: 3.34 million sets, 32.1%
• Overseas Markets:
3.14 million sets,
108.4%
• Emerging Markets: 1.82 million sets,
103.9%
• Sales proportion of high-end products continued to increase
1H 2012: 3D:
PRC Market 16.9%
Smart & internet: PRC Market 38.3%
LED backlight: overall 66.5%; PRC Market 67.7%
(Compared to 1H 2011) (Compared to 1H 2011)
• Gross profit margin 1.2% points
• Expense ratio unchanged
• Operating profit margin 1.6% points
• Profit attributable to owners of the parent : HK$ 434 million, 231.3%
• Inventory HK$ 536 million
• Inventory turnover days 3 day
• Account receivables HK$ 645 million
(Compared against year end of 2011)
(Compared against year end of 2011)
• Cash and bank balance: HK$ 3.242 billion, HK$ 1.210 billion
• Current ratio: 1.2 (2011: 1.1)
• Gearing ratio: zero
2012 Interim Results
Page 15/36
Source: DisplaySearch
Ranking Brand
2012 1Q
LCD TV Market Share
2011
LCD TV Market Share
1 Samsung 20.1% 18.8%
2 LGE 13.5% 12.1%
3 Sony 8.5% 9.9%
4 Toshiba 6.2% 7.2%
5 TCL 5.6% 4.9%
6 Sharp 5.1% 6.6%
7 Panasonic 5.0% 6.2%
8 Hisense 4.9% 4.5%
9 Philips 3.5% 3.5%
10 Skyworth 3.4% 3.5%
Ranking Brand
2012 1Q
TV Market Share
2011
TV Market Share
1 TCL 18.1% 15.6%
2 Hisense 17.4% 16.8%
3 Skyworth 13.7% 14.4%
4 Changhong 10.9% 13.8%
5 Konka 10.9% 11.0%
6 Haier 6.2% 5.4%
7 Sharp 4.2% 4.4%
8 Samsung 4.0% 3.5%
9 Sony 3.8% 4.3%
10 Panasonic 2.8% 3.2%
Ranking Brand
2012 1Q
LCD TV Market Share
2011
LCD TV Market Share
1 Hisense 18.5% 18.2 %
2 TCL 17.5% 14.9%
3 Skyworth 14.6% 15.8%
4 Konka 10.7% 10.7%
5 Changhong 9.7% 11.4%
6 Haier 6.6% 5.9%
7 Sharp 4.4% 4.8%
8 Sony 4.1% 4.8%
9 Samsung 3.3% 3.3%
10 Panasonic 2.1% 2.1%
TV Market Shares and Rankings 1Q 2012 TV global market share (TCL ranked No.4) 1Q 2012 LCD TV global market share (TCL ranked No.5)
1Q 2012 LCD TV PRC market share (TCL ranked No.2) 1Q 2012 TV PRC market share (TCL ranked No.1)
Samsung 20.9%
LGE 16.3%
Sony 7.2%
TCL 6.3%
Panasonic 5.7%
Toshiba 5.6%
Sharp 4.4%
Hisense 4.1%
Philips 3%
2012 Interim Results
Page 16/36
Total TV Sales Volume (‘000 sets) 1H 2012 1H 2011 Change
Total 7,748 6,276 +23.5%
PRC 3,482 3,128 +11.3%
Overseas 4,266 3,148 +35.5%
LCD TV Sales Volume (‘000 sets) 1H 2012 1H 2011 Change
Total 6,477 4,033 +60.6%
Of which: LED backlight LCD TVs Smart & Internet TVs 3D TVs
4,307 1,302
592
1,379 389
40
+212.3% +234.7%
+1,380.0%
PRC 3,338 2,527 +32.1%
Overseas 3,139 1,506 +108.4%
CRT TV Sales Volume (‘000 sets) 1H 2012 1H 2011 Change
Total 1,271 2,243 (43.3%)
PRC 144 601 (76.0%)
Overseas 1,127 1,642 (31.4%)
TV Sales Volume
2012 Interim Results
Page 17/36
Product mix has continuously been optimized
• In 1H, 7 series with 14 new products were launched, of which 5 series with 10 new products were 3D TVs
• In 1H, sales volume of 3D TVs and smart & internet TVs as a proportion of LCD TV sales volume reached 16.9% and 38.3%
• In 1H, sales volume of LED backlight LCD TVs as a percentage of total LCD TV sales volume increased to 67.7%
• Gross profit margin increased by 2.1% points from 21.2% to 23.3%
Enhanced speed and efficiency
• Inventory turnover days decreased by 9 days y-o-y
• Operating profit margin increased to 5.5% from 4.1% in the same period of last year
Improved sales channels and establishment of points of sales
• The number of points of sales in third- to sixth-tier markets and rural markets in 1H 2012 increased to approximately 27,000, planning to increase to 30,000 by the end of 2012
Operating profit amounted to HK$473 million, up 54.1 % y-o-y
LCD TV sales volume reached 3.34 million sets, up 32.1 % y-o-y
TV – PRC Market
2012 Interim Results
Page 18/36
Product mix has continuously been optimized
• Proportion of LCD TV sales volume to overall TV sales volume: 73.6%
• Continued to optimize its product mix, the proportion of the LED backlight LCD TV sales volume to LCD TV sales volume continually increased to 65.2%
Sales volume of LCD TVs in Emerging Markets surged 103.9 % y-o-y
• Vigorously explored new sales channels and customers
• Continued to improve the brand image of its key stores in key cities
• Satisfactory sales performance in Africa and Thailand, etc.
Strategic OEM business showed results after the optimization of its customer base, leading to continuous growth in LCD TV sales volume
Driven by the UEFA EURO in European Market, along with the improvement of the product mix, sales volume of LCD TVs grew 59.1% y-o-y
Sales volume of LCD TVs reached 3.14 million sets, up 108.4 % y-o-y
Recorded operating profit of HK$108 million
TV – Overseas Markets
2012 Interim Results
Page 19/36
As a Percentage of Total LCD TV Sales Volume
Proportion of 3D TV, Smart & Internet TV Sales Volume Increased Stably in PRC Market
5.3%6.6%
10.7%
7.0% 7.3%
3.3%
12.3%
12.4%
14.9%
19.6%20.8%
22.7%20.8%
27.3%
30.1%
33.1%
19.6%
28.0%
24.5%
14.6%
33.0%
45.9%
43.0%44.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
7/1/2012 Aug Sep Oct Nov Dec 1/1/2012 Feb Mar Apr May Jun
3D TV sales volumeSmart & internet TV sales volumeProportion of 3D TV to the overall LCD TV sales volumeProportion of Smart & internet TV to the overall LCD TV sales volume
(sets)
2012 Interim Results
Page 20/36
2012
2011
Continuous Enhancement of Product Competitiveness
TV Development
Adopt “cloud”
computing and
storage technology
Integration of Smart and
3D Technology
2012 Interim Results
Page 21/36
Developed sales channel to raise sales volume and enhanced brand influence
• TCL has 29 sales branches as well as 178 operation departments in the PRC Market
• First-tier and second-tier cities accounted for 30% of PRC Market sales volume, while
third-tier to sixth-tier markets and rural markets accounted for 70% of PRC Market
sales volume
Target
24,000 26,000 27,000
30,000
11-Jun 11-Dec 12-Jun 12-Dec
National Professional
Home Appliance Chain 18% Department
Store Channel & Supermarket
Chain 10%
Traditional Channels
50%
Others 1%
Regional Home Applicance Chain
15%
Emerging Channels (Such
as specialty stores and e-commerce)
6%
Number of Points of Sales in third- to sixth-tier markets and rural markets in PRC
Distribution of Sales Channels in PRC Market
2012 Interim Results
Page 22/36
TCL cooperated with Sweden IKEA to develop a new concept of comprehensive household solution which includes TV set, audio equipment and furniture – enhance impact of TCL brand in the global market
2012 Interim Results
Page 23/36
Strengthened marketing efforts to build up a global and youthful brand image
Movie marketing through new “Batman” movie
2012 Interim Results
Page 24/36
Strengthened marketing promotion to enhance product competitiveness
Participate in the Consumer Electronic Show 2012 in Las Vegas, US
Sponsor for a well-known TV show “Generation Show” of Shenzhen Cable TV in the PRC
2012 Interim Results
Page 25/36
Huaxing Photoelectrics (CSOT) 8.5 Generation LCD Panel Production Line Source 1.42 million sets of whole panels in
the first half Ensure supply of raw materials and effective
cost control
LED Backlight Modules Production Line TCL Optoelectronic + TCL Coretronic + Huizhou
Bri-King Optronics Whole process of quality control
TCL has become the only TV
manufacturer and distributor with a fully
integrated supply chain and sales
capabilities in the PRC
Effect of Integration of Upstream and Downstream Industry Chain Has Started to Show Up
• Stable supply of raw materials and cost control
• The effect from
the vertical integration has started to show up
Own the PRC's most advanced LCD module production line
Create new revenue streams by improving production capabilities through strategic cooperation with Shenzhen Huaxing Photoelectrics Technology Company Limited
TCL Optoelectronics Technology (LCD Module Business)
2012 Interim Results
Page 26/36
Improved efficiency and
established its overseas supply
chains to reduce cost, further
enhancing the competitiveness
of the products
Under the influence of the volatile global economy and the continuously shrinking of DVD player market, the total sales volume of AV products recorded a decline. However, sales volume of both blue ray products and electro-acoustic products recorded an increase year-on-year
AV Business
Continued to carry out
diversification of product and
customer base, boost
investment in R&D,
proactively develop blue ray
products and enhance the
competiveness of electro-
acoustic products
Sales volume of AV products reached 6.79 million sets, down 28.5 % y-o-y
Outlook
2012 Interim Results
Page 28/36
Industry Analysis – Global TV Market Capacity
million sets
Source: DisplaySearch
*According to DisplaySearch’s 1Q 2012 report, estimated shipment of global LCD TVs in 2012 was revised down to 216 million sets from 220 million sets, representing a decrease of 1.8%
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015
38.3 26.0 16.5 8.0 2.9 0.6
151.5
112.3
66.6
30.9
8.0 0.0
40.0
93.0
149.2
203.5 242.5 262.1
18.4 17.2 12.7 9.2
5.7 2.6 0.0 0.0 0.0
0.3 2.3 5.0
OLED
PDP
LCD(LED)
LCD(CCFL)
CRT
248.3 248.5 245.1 261.3 270.3
251.8
Global Shipment by Product
The popularity of 3D TV and smart & internet TV has been growing, LED backlight LCD TVs have become mainstream products
2012 Interim Results
Page 29/36
Industry Analysis – Product Development Trend
Three layers of products in 2012
High-end product Mid-level
product
LED backlight & 3D
3D&Smart
Low cost direct LED backlight:last effort to replace
CCFL
LED: Dominant in the first- and second-tier markets in
the PRC
3D: SG Vs PR to co-exist in the long term
Functions :3D, Smart; Degree of duplication:80% Smart platform: Android to be more popular, Linux to exit Industrial design: ultra slim, edgeless
Lower cost direct LED
to replace CCFL
OLED
*Source: China Market Monitor
2012 Interim Results
Page 30/36
15.20 million sets
2012 sales volume target of LCD TVs with an
expected y-o-y increase of 40%
Product Mix Optimization
Global Industry Chain Integration
Global Sales & Marketing System Establishment
Outlook – TV Business
*Announced to raise global LCD TV sales target for 2012 to 15.20 million sets from 13.80 million sets in June 2012
Enhance core competitiveness and improve profitability by strengthening the innovation capability in its product technology
Remain committed to “speed and efficiency” in operations and marketing strategies
2012 Interim Results
Page 31/36
Outlook – TV Business in the PRC Market
Remain committed to “speed and efficiency” in operations and marketing strategies
Enlarge market share and strengthen profitability
Continue to strengthen sales channels
• Further penetrate into third-to-sixth-tier cities and rural markets; with the aim to increase the number of points of sales in the third-to-sixth-tier cities and rural markets from 26,000 at the end of 2011 to 30,000 in 2012
Continue to improve operational efficiency
• Continue to reduce expense ratio
• Speed up turnover days of inventory and account receivables
PRC Market
Consolidating the Leading Position
Optimize its product mix and enhance brand influence
• Vigorously promote 3D TVs and smart “cloud” TVs
• Leverage the position as the exclusive partner of the PRC CCTV 3D channel to enhance brand influence
2012 Interim Results
Page 32/36
Cloud·Zhuo V7300
Cloud·Shang E5300
Cloud·Bo V8200S
Cloud·Ya F3390
Cloud·Feng V7500
Cloud·Yue E5390
Outlook – “Full cloud strategies”
“Full cloud
strategies”
Innovation of
full-scale
cloud technology
Orientation of
full-scale cloud
market
Integration of
full-scale cloud
resources
Synergy of
full-scale
cloud industry
Tie up with the six series of 3D smart “cloud” TVs and focus on the four major areas – products, price, place and promotion – to carry out “full cloud strategies” and to build up core competitive advantages in the cloud age
2012 Interim Results
Page 33/36
Innovative Business Model • TCL brand development
• Strengthen strategic partnership with e-commerce sales channel customers
• Further explore national sales channels
Build healthy business with further improvement
• Improve operational efficiency
• Endeavor to adjust product mix and improve inventory management
• Increase the proportion of TCL-branded products
Increase volume and generate profits
• Optimize the OEM clients mix
• Synergize resource of supply chain and production chain and optimize cost
1. Continue to implement a prudent operational strategy 2. Focus to develop the Emerging Markets and other profitable markets and
rapidly increase TCL brand’s market share in key regions 3. Continue to increase the proportion of sales volume of high-end products
Outlook – TV Business in the Overseas Markets
Ensure profit-making for the overall Overseas Markets in
2012
Dedicated to boosting sales in areas such as Central America and Africa
• Promoting TCL brand
• Optimize sales channels and product mix
2012 Interim Results
Page 34/36
Outlook – AV Business
•Diversify product mix
• Step up investment in the R&D of software and electro-acoustic technology, etc.
• Strengthen strategic partnership with major customers and endeavor to expand its customer base
AV Business
•Optimize global supply chain
• Improve the product competitiveness and cost advantages
2012 Interim Results
Page 35/36
Keys to Success: Speed and Efficiency
Sales Volume Growth
Sustainable Profit Growth
Transformation
Fast Value Efficiency Speed +
Thank You