2020 4
th
Quarter Results
Feb. 22, 2021
2012 ~2020 Top 50 of Excellence in CSR Award FROM Taiwan's CommonWealth Magazine 2015 ~2020 Top 5%in the Corporate Governance Evaluation from TWSE
2017 ~2020 Earned TCSA "Corporate Sustainability Report Awards-Gold Award" 2018 ~2020 Earned TCSA"Transparency and Integrity Award-First Prize” 2019 ~2020 Earned TCSA"Corporate Sustainability Award”
Except for historical information contained herein, the matters set forth in this presentation are forward-looking statements that are subject to significant risks and uncertainties and actual results may differ materially from those contained in any forward-looking statements.
The forward-looking statements in this release reflect the current belief of Coretronic as of the date of this release and Coretronic undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.
Agenda
2020 4th Quarter Financial Results (Franck Ho)
Visual Solutions Business Report (SY Chen)
Energy Saving Business Report (Sarah Lin)
Statement of Comprehensive Income
(Consolidated)-
QoQ
Amount: NT$ Million Except Per Share Data
QoQ YoY
Net Sales 11,494 100% 11,941 100% (3.7%) 13,084 100% (12.2%)
Cost of Goods Sold (9,483) (82.5%) (9,836) (82.4%) 3.6% (10,697) (81.8%) 11.4%
Gross Profit 2,011 17.5% 2,105 17.6% (4.4%) 2,388 18.2% (15.8%)
Operating Expenses (1,804) (15.7%) (1,751) (14.7%) (3.0%) (1,982) (15.1%) 9.0%
Operating Income 208 1.8% 354 3.0% (41.4%) 405 3.1% (48.8%)
Non-operating Income, Net 282 2.5% 359 3.0% (21.4%) 96 0.7% 193.0%
Income Before Tax 490 4.3% 713 6.0% (31.3%) 502 3.8% (2.4%)
Net Income 376 3.3% 553 4.6% (32.0%) 358 2.7% 5.1%
Shareholders of the Parent Company 418 3.6% 585 4.9% (28.6%) 391 3.0% 6.9%
Minority Interests (42) (0.3%) (32) (0.3%) (30.8%) (33) -0.3% (27.5%)
Basic EPS (NT$)(a) 0.96 1.35 0.90
EBITDA 772 6.7% 987 8.3% (21.8%) 833 6.4% (7.4%)
Prepared by Coretronic on a consolidated basis
(a) Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (434m shares in 4Q'20, 3Q'20 and 4Q'19)
3Q'20
Statement of Comprehensive Income
(Consolidated)- Y
oY
Amount: NT$ Million Except Per Share Data
YoY
Net Sales 42,438 100% 48,711 100% (12.9%)
Cost of Goods Sold (35,032) (82.5%) (39,905) (81.9%) 12.2%
Gross Profit 7,407 17.5% 8,806 18.1% (15.9%)
Operating Expenses (6,715) (15.8%) (7,605) (15.6%) 11.7%
Operating Income 692 1.6% 1,201 2.5% (42.4%)
Non-operating Income, Net 1,145 2.7% 501 1.0% 128.6%
Income Before Tax 1,837 4.3% 1,702 3.5% 7.9%
Net Income 1,395 3.3% 1,158 2.4% 20.4%
Shareholders of the Parent Company 1,560 3.7% 1,153 2.4% 35.3%
Minority Interests (165) (0.4%) 5 0.0% (3,256%)
Basic EPS (NT$)(a) 3.59 2.65
EBITDA 2,977 7.0% 3,031 6.2% (1.8%)
Prepared by Coretronic on a consolidated basis
(a) Basic EPS was calculated based on the total weighted average outstanding shares (434m shares in 2020 and 2019)
2019 2020
Balance Sheet Highlight
(Consolidated)Amount: NT$ Million
4Q'20 3Q'20 QoQ 4Q'19
Cash and Cash Equivalents 18,301 17,022 7.5% 20,162
Notes & Accounts Receivable, Net
(including related) 11,685 12,545 (6.9%) 11,729
Inventory 4,886 5,901 (17.2%) 6,063
Short Term Debt (a) 5,254 6,213 (15.4%) 8,521
Long Term Debt 553 548 0.8% 183
Equity 24,939 23,822 4.7% 23,553
Total Assets 47,275 47,547 (0.6%) 49,323
Inventory Turnover (Days)(b) 52 52 57
Debt to Assets 47% 50% 52%
Return on Equity(C) 7% 11% 7%
Net Worth Per Share (NT$)(d) 52.7 50.1 49.2
Prepared by Coretronic on a consolidated basis
(a) Short term debt = short term bank loan + current portion of long term loan
(b) Calculated by dividing the average inventory into the annualized cost of goods sold during such period, then multiplying by 365 days (c) Calculated by dividing the average shareholders' equity of parent company into the annualized net income during such period (d) Based on the outstanding shares of the balance sheet date: 4Q'20(434m shares), 3Q'20(434m shares), 4Q'19(434m shares)
Consolidated Sales Breakdown
(By Revenue) 48% 14% 23% 8% 7% Energy Saving Visual Solutions Optoma Young Optics Others3Q’20 Consolidated Sales : NT$12 Billion 4Q’20 Consolidated Sales : NT$11 Billion
55% 14% 16% 8% 7% Energy Saving Visual Solutions Optoma Young Optics Others
Consolidated Sales Breakdown
(By Revenue) 52% 15% 18% 8% 7% Energy Saving Visual Solutions Optoma Young Optics Others2020 Consolidated Sales : NT$42 Billion
49% 19% 17% 9% 6% Energy Saving Visual Solutions Optoma Young Optics Others
S.Y. Chen
Feb. 22, 2021
4Q’20 Visual Solutions Business Review
4Q20 total sales of NT$3,053M with 3% QoQ increase and
27% YoY decline
Y2020 rank No.1 in worldwide 4K UHD market share,
majority of contribution from laser TV and home cinema
An off-year due to pandemic - impacts resulting in YoY
sales decline of 25%
Pro-AV sales results deeply impacted by continued lockdowns
Events severely hit with event cancellations and postponed globally Private and public spending were postponed
Visual Solutions Sales Breakdown
Sales (NT$ Million) 4,172 2,102 2,811 2,954 3,053 0% 20% 40% 60% 80% 100% 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 44% 49% 55% 47% 47% 28% 22% 25% 34% 38% 15% 11% 12% 13% 10% 12% 16% 6% 6% 4% 1.4% 1.8% 1.2% 0.4% 0.9%Business Outlook for 1Q’21 and Beyond
Business conditions to be defined by the pandemic.
However, growth trends in SSI, 4K, home and Pro-AV
segments provides opportunities
Stay-at-home economy
Technology trend from lamp shifting to SSI
Despite the lamp based market shrinkage, Coretronic
expects lamp continue sales in stable
Focus on integration of H/W, S/W and AI to capture
growth when recovery sets in
Immersive and
stunning visual
experience
Diverse and
specific field
applications
Visual Solutions
AiO LED Theme/Event Dome/Cave Gaming TV/Cinema Simulation Differentiated Display Value-added SW Cloud & AIVisual Products
Visual Products
Visual Products
Visual Products
Market Update
Lamp based market continues to decline due to
competition from flat panel
Consumer market expected to recover from COVID-19
impact, supported by 1080p and 4K UHD
Demand will continue to recover. However, recovery of
high brightness projector will be delayed due to
COVID-19
Risk of instability in freight service and component
Energy Saving Business Report
Sarah Lin
4Q20 Energy Saving Business Review
Sales revenue NT$5,516 million in 4Q20, decrease 15% QoQ and
drop 11% YoY, QoQ drop mainly affected by tight supply of LCD components and shortage of containers for TV shipment.
Shipment was 12.66 million units, up 2% QoQ and 18% YoY.
4Q20 Shipment Summary:
- TV drop 23% QoQ vs. forecast 10 to 20% decrease
- Monitor with 9% QoQ increase, better than expectations - NB up 7% QoQ vs. forecast similar as 3Q20
2020 revenue NT$21.01 billion with 8% YoY decrease while
shipment 45.72 millions units with 10% YoY increase mainly from the growth of TV/PID and NB driven by WFH and distance education.
Prepared by Coretronic on a combined basis (Taiwan & China)
Energy Saving Sales Breakdown
(By Revenue)Sales
(NT$ Million)$6,220 $4,300 $5,683 $6,511 $5,516
4Q20 Revenue Summary:
- TV decrease 49% QoQ. - Monitor with 9% QoQ up. - NB increase 8% QoQ.
1Q21 Business Outlook
Continuous constraints from components shortage and
tight containers supply, expect Q1 SCM is similar to Q4.
With DL shortage improved and overtime in CNY, expect
similar shipment as Q4.
Vietnam factory started first TV shipment in Jan, and
gradually with higher volume from Feb.
OLED subcontract manufacturing starts from June, focus
on NB application.
China two Wujiang factories with new expansion for
TV/NB, expect to fulfill high demand for 2021.
Expect 2021 with 10-20% growth on shipment, mainly
Market Update
Low end and smaller size NB for education keep high
demand from market.
TV/NB are the two focus points from all LCD suppliers,
more Chinese suppliers join NB SCM, expect the pricing could be with strong competition.
Although with many mini LED development, but still in a
very low volume market, not seeing big volume from price point (more LED, more optical films, less production
efficiency)
With Korean suppliers continues producing TV panel, it’s
still in over-supply but price might not have impact due to components shortage.
