3 rd Quarter 2017 Results

Transcription

1 Inside your life! 3 rd Quarter 2017 Results October 25, 2017 Mobile Automotive Display Semiconductor IoT LED

2 Contents Ⅰ. Q Earnings Summary Ⅱ. Earnings Highlight & Outlook Ⅲ. Results & Outlook by Business Disclaimer The information contained in this document may include certain statements, estimates and projections. Any such statements, estimates and projections reflect various assumptions by LG Innotek Co., Ltd.( The Company ) concerning anticipated trends, which assumptions may or may not occur. No representations are made as to the accuracy of such statements, estimates or projections and actual performance may be materially different from that set forth in such statements, estimates or projections. The Company makes no warranty or assurance regarding achievability of projections nor the data, information and assumptions relied upon herein. Opinions and estimates constitute the Company s judgment as of the date of this material and are subject to change without notice. The Company expressly disclaims any and all liability for any representations, expressed or implied, contained in, or omissions from, this material. This document is for information purposes only.

3 Q Earnings Summary Posted sales 1,787.2bn won and operating income 55.9bn won Financial Results Sales & Profit Q2 17 QoQ Q3 17 YoY Q3 16 Sales Operating Margin Sales 1, % 1, % 1,384.5 Operating income % % % 3.1% 1.5% (%) 2.4% +0.7%p 3.1% +1.6%p 1.5% Income before tax Net income % % 34.8 Turned to profit Turned to profit , , ,384.5 EBITDA * (%) 8.2% -0.4%p 7.8% +0.6%p 7.2% CAPEX Q2'17 Q2 17 Q3 17 Q3'17 Q3'16 Q3 16 * EBITDA = Operating income + Depreciation + Amortization 1

4 Q Financial Position Debt ratios escalated due to increases in account payable and other current liabilities from the growth in sales volumes Financial Position Q2 17 QoQ Q3 17 YoY Q3 16 Key 사업부문별 Financial 매출 Ratios 비중 Liability-to-equity Net gearing Net debts(tn) Total assets 4, % 5, % 4,153.8 Current assets 1, % 2, % 2,014.7 Cash & equiv.* % % % 63% 122% 143% 40% 42% 175% 57% Non-current assets 2, % 2, % 2,139.1 Total liabilities 2, % 3, % 2,530.5 Current liabilities 1, % 1, % 1, Non-current liabilities 1, % 1, % (Total debts) 1, % 1, % 1,176.9 Total equity 1, % 1, % 1, Q3'17 Q3 17 Q3 17 interest expenses : 7.1bn won (0.2bn YoY) * Cash & equivalents = Cash + Deposits (including foreign deposits) 2

5 Earnings Highlight & Outlook Q3 17 Earnings Highlight Outlook 3

6 Optics Solution Results & Outlook Q3 17 Highlights - Posted strong sales growth backed by the main customer s new products launch - Supplied new cameras for LGE and Chinese customers Q4 17 Outlook - Focus on meeting the main customer s increasing demand - Expect a sharp increase in dual camera demand from the main Chinese customer; Continue to supply LGE s flagship smartphone cameras, inc. for the V30 Sales Trend Key Growth Strategies Reinforce leading position in key customers - Continue developing new products for key customers - Improve profitability through the operation of Vietnam plant Expand presence in China / Develop next-gen. solutions - Expand sales in China by offering market-leading solutions - Develop next-generation in-house technologies for camera module components Main Products & Sales Breakdown Q3 17 Sales QoQ 63%, YoY 55% Main Models Supplied 1, , Q3'16 Q3 16 Q4'16 Q4 16 Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Sales Breakdown by Pixel 12Mp & Above 8Mp & Lower 23% 9% 11% 23% 15% 77% 91% 89% 77% 85% Q3'16 Q3 16 Q4'16 Q4 16 Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 4

7 Automotive & Electronics Results & Outlook Q3 17 Highlights - Automotive : Earnings improved backed by a recovery in domestic demand and supplying new products to overseas - Electronics : Increase in sales in the wireless power and TV components businesses Q4 17 Outlook - Automotive : Earnings to improve driven by improving demand from domestic customers, coupled with increasing overseas sales contribution - Electronics : Expect strong growth in wireless power sales Sales Trend Key Growth Strategies Secure global leading position in main products - Continue to drive customer & product diversification Enhance competitiveness of new auto. businesses - Expand the auto. camera and & LED product portfolio - Introduce new products for EV/autonomous vehicles Expand new electronics businesses - Wireless charging, IP network camera, thermo. module, etc. New Products & Order Status Q3 17 Sales QoQ 16%, YoY 13% % % 26% 75% 76% 74% Auto. Electronics % % 72% 68% New Products New Orders Backlog Status Q3'16 Q3 16 Q4'16 Q4 16 Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q Q3'17 Order Q3 17 (tn won) 9.1 5

8 Substrate & Material Results & Outlook Q3 17 Highlights - PKG and 2Metal COF posted higher sales, with improved margin in the HDI business - Display-related products maintained stable profits Q4 17 Outlook - HDI and 2Metal COF demand to grow sharply, on the back of new product launches by major customers - Demand for display products to decline on slow seasonality Key Growth Strategies Continued focus on profit-oriented operation - Expand high-end HDI businesses and develop new products - Restructure low-margin mobile businesses - Maintain market leadership in display products Develop future growth engines - Customer/product diversification of the 2Metal COF business - Preparation for the next generation Photomask production Sales Trend Main Products Q3 17 Sales QoQ 4%, YoY 0% % 26% Substrate Material % 24% 21% High-end Substrates 75% 74% 73% 76% 79% Growth Engines Q3'16 Q3 16 Q4'16 Q4 16 Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 Substrate : HDI, Tape Substrate, Package Substrate / Material : Photomask, Touch Window 6

9 LED Results & Outlook Q3 17 Highlights - Sales declined due to the ongoing restructuring activities - Maintained a similar margin from the previous quarter Q4 17 Outlook - Overall sales to decline due to slow seasonality - Continue to expand high power LED sales, along with focus on improving operational efficiency Key Growth Strategies Advancement of business structure - Continue to expand high power LED sales - Enhance the competitiveness in the auto. headlight LED business and win new orders Continued focus on operational efficiency - Improve resource efficiency at major production sites - Maintain market share in major customers and accelerate winning new customers Sales Trend High Power LED Line-up Q3 17 Sales QoQ 3%, YoY 1% Lighting BLU Auto. UV Lighting % 54% 53% 48% 49% 47% 46% 47% 52% 51% Q3'16 Q3 16 Q4'16 Q4 16 Q1'17 Q1 17 Q2'17 Q2 17 Q3'17 Q3 17 7

10 Financial Summary Income statement Cash Flow Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q2 17 Q3 17 Cash at the beginning of Period Sales 1, , , , , , , , , , , , ,787.2 Cash flow from operating activities Operating income Operating margin Income before tax % 3.4% 3.9% 2.8% 3.6% 0.0% -3.0% 1.5% 5.7% 1.8% 4.1% 2.4% 3.1% Net income/loss Depreciation Change in working capital Net income Others Cash flow from investing activities Balance Sheet Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Total Assets 4, , , , , , , , , , ,128.2 Current Assets 1, , , , , , , , , , ,356.5 Cash & Equivalents Non-current Assets 2, , , , , , , , , , ,771.7 Total Liabilities 2, , , , , , , , , , ,266.5 Increase in tangible assets Increase in intangible assets Cash flow from financing activities Increase / Decrease in debt FX effect from cash denominated in foreign currency Net changes in cash Cash at the end of period Current Liabilities 1, , , , , , , , , , ,972.7 Non-current Liabilities 1, , , , ,293.8 Shareholder s Equity 1, , , , , , , , , , ,861.7 Total Debt 1, , , , , , , , , , ,397.5 Liabilities-to-Equity 144.3% 130.6% 138.7% 121.8% 120.0% 123.5% 155.9% 143.1% 125.9% 133.8% 175.5% Net Gearing Ratio 54.5% 48.4% 48.4% 39.9% 41.2% 42.5% 48.5% 41.6% 42.2% 43.8% 56.5%