Q4 '05 Quarterly Presentation (Uploading) · 2008-01-22 · Launch of new BenQ-Siemens brand with a...
Transcript of Q4 '05 Quarterly Presentation (Uploading) · 2008-01-22 · Launch of new BenQ-Siemens brand with a...
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Q4 2005 Investor BriefingBenQ: BBringing EEnjoyment ‘N QQuality to LLife
BenQ Corporation
14 March 2006
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Meeting Overview
Q4 Financial Highlights
Business Update
BenQ Mobile Integration Briefing
New Product Launches
Q1 Guidance
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding, among other things, our financial conditions, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties, and assumptions about us.
We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.
Safe Harbor Notice
Q4 Financial Highlights
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Significant progress in Q4 with reductions in operating expenses.Overall gross margin impacted by
•Sub-optimal product portfolio—revamped.•Push-out of low-end handsets.•Time to market challenges—being addressed.
Significant progress in Q4 with reductions in operating expenses.Overall gross margin impacted by
•Sub-optimal product portfolio—revamped.•Push-out of low-end handsets.•Time to market challenges—being addressed.
Q4 2005 Income Statement – QoQ Analysis
Core business, Unaudited, Prepared by BenQ Corp. on a consolidated basis.
QoQ
Change%
Net Sales 34.09 100.0% 66.30 100.0% 94%
Cost of Goods Sold (30.97) (90.8%) (60.92) (91.9%) 97%
Gross Profit 3.12 9.2% 5.38 8.1% 73%
Operating Expenses (3.42) (10.0%) (14.45) (21.8%) 322%
Operating Income (0.30) (0.9%) (9.06) (13.7%) 2891%
Net Non-op Items 0.39 1.1% 3.34 5.0% 756%
Income before Tax 0.09 0.3% (5.72) -8.6% -6680%
Income Tax (0.07) (0.2%) (0.30) (0.5%) 329%
Net Income 0.02 0.0% (6.02) -9.1% -40265%
Fully Diluted EPS (NT$) 0.01 (2.45)
Q3 2005 Q4 2005Amount : NT $ Billion E xcept E PS Data
11.4%
(10.4%)
1.7%
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Overall profitability impacted in ’05 by integration at BenQ Mobile.Computing Products seeing improving market standing over six quarters: BenQ No. 1 in 20-inch-or-above segment for LCD monitors.Projector No. 2 brand globally in Q4.
Overall profitability impacted in ’05 by integration at BenQ Mobile.Computing Products seeing improving market standing over six quarters: BenQ No. 1 in 20-inch-or-above segment for LCD monitors.Projector No. 2 brand globally in Q4.
Q4 2005 Income Statement – YoY Analysis
Core business, Unaudited, Prepared by BenQ Corp. on a consolidated basis.
QoQ
Change%
Net Sales 164.95 100.0% 162.33 100.0% -2%
Cost of Goods Sold (146.06) (88.5%) (147.39) (90.8%) 1%
Gross Profit 18.89 11.5% 14.94 9.2% -21%
Operating Expenses (15.64) (9.5%) (24.91) (15.3%) 59%
Operating Income 3.25 2% (9.97) (6.1%) -407%
Net Non-op Items 4.80 2.9% 4.92 3.0% 3%
Income before Tax 8.01 4.9% (5.04) -3.1% -163%
Income Tax (0.40) (0.2%) (0.18) (0.1%) -55%
Net Income 7.61 4.6% (5.23) -3.2% -169%
Fully Diluted EPS (NT$) 3.28 (2.12)
12-Months 2004 12-Months 2005Amount : NT $ Billion E xcept E PS Data
10.5%
(4.8%)
1.7%
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Q3 2005 Balance Sheet Highlights
Core business, Unaudited, Prepared by BenQ Corp. on a consolidated basis.
Change %
Cash & Equivalent 8.14 8.4% 11.11 7.3% 36%
Accounts Receivable 21.18 22.0% 42.01 27.8% 98%
Inventories 21.20 22.0% 29.96 19.8% 41%
L-T Investments 26.38 27.4% 30.60 20.2% 16%
Total Assets 96.37 100.0% 151.35 100.0% 57%
Liabilities 49.00 50.8% 90.23 59.6% 84%
( Debt ) 12.86 13.3% 16.69 11.0% 17%
Equities 47.36 49.1% 44.43 29.4% -6%
Q3 2005 Q4 2005
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Key Financial Ratios
Core business, Unaudited, Prepared by BenQ Corp. on a consolidated basis.
Q2 2005 Q3 2005 Q4 2005
A/ R T urnover 48 days 5 5 days 5 3 days
Inventory T urnover 47 days 5 0 days 38 days
A/ P T urnover 76 days 8 2 days 8 1 days
ROA* 2.2% 0.1% -3.9%
ROE * 4.2% 0.2% -13.6%
T otal Debt / T ota l Assets 12.4% 13.3% 10.7%* Annualized
Cash conversion cycle improving with the additions of Siemens Mobile Devices assets.
Cash conversion cycle improving with the additions of Siemens Mobile Devices assets.
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Business Update
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Sales Breakdown by Business
0
10
20
30
40
50
60
70
1Q,04 2Q,04 3Q,04 4Q,04 1Q,05 2Q,05 3Q,05 4Q,05
Computing Products Digital Media Mobile BusinessUnit: NTD Billion
42.21 42.06 40.33 40.27
32.3329.67
34.09
66.30
17% 22% 15% 15%
11%9%
7%
42%
14% 13% 13% 16%13% 11%
10%
8%
69% 65% 72% 69% 76% 80%83% 50%
• Computing Products/Digital Media grew strongly in Q4.• Projectors recording solid QoQ growth.• Computing Products/Digital Media grew strongly in Q4.• Projectors recording solid QoQ growth.
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Dissolution of investee company
Copax Photonics Corp.
DVD recorder business phased
out.
MP3 business re-directed to
focus on PRC plus emerging
market opportunities.
Restructuring of management
team at BenQ America.
BenQ Further Streamlines…
Increased focus on core business.
Re-directing resources to higher-return businesses.
Better focus on market-specific opportunities; aligned to deliver greater synergies with BenQ Mobile.
Revamped managerial resources to address channel weaknesses.
Operating Events Impact
BenQ MobileIntegration Briefing
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Offloading complexity: Consolidation of product and platform development at self-
sufficient R&D sites
Realizing synergies: One global product house going forward (R&D, SCM,
Procurement) with no duplication in functions, increasing speed while driving down
cost
Structuring market-driven organization: Category managers in charge of each identified
key customer segment
Ensuring Time-to-Market of products
Production / R&D / Design
Synergies
Launch of new BenQ-Siemens brand with a 3-event strategy targeting diverse key
audiences:
• Brand launch in Berlin & Beijing: Top tier news, business and industry media
• 3GSM Barcelona: Technology and trade press
• CeBIT Hanover: Consumer and general media
12 new BenQ-Siemens handsets in Q1 2006, including first HSDPA phone (3.5 G)
Mid- and high-end phones are listed on tier-one operators' roadmaps (e.g. EF81, S68,
EF91, etc.)
Sales Development /
Branding
BenQ Mobile – Five months since closing…
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Synergies on material cost-down to accelerate with ramp-up of new handsets – with
some room for improvement
Savings in functional expenses well on track
•Reduced operating expenses by > 25% QoQ
•Target: additional 100 Mio € functional cost reduction in 2006
Target is to break even by the end of 2006 providing the basis for a sustainable
business recovery in 2007
500 Mio €in Savings
Reversing Volume Loss
Significant improvements both in terms of units and ASP are in sight
Pipeline of new products is being rolled out / customer acceptance strong
New products provide broader revenue base and generate substantial sales margins
BenQ Mobile – Five months since closing…
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile Business Regaining Strength
From: To:
Plain-vanilla portfolio
• Market leading• Compelling on lifestyle benefits• Potent multimedia functions
ASP over last five quarters
S88 S68
EF91S81 EF51
EF81
Q1'05 Q2'05 Q3'05 Q4'05 Q1'06
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Strategy / Value
Proposition
New positioning
• Successful three-step brand introduction
• Fusion of engineering competence with lifestyle and design
Repositioning as an Industry leader
• Leadership in innovation
– Radio Technology HSDPA, Services over the Air
– Display Technology OLED
– Material Technology
• Leadership in design and user experience
– 1/3 of devices with awards
– Slim line in all form factors
– Dedicated interfaces and “Simplexity”
• Leadership in multimedia and applications
– 10/12 with camera up to 3.2 Mpix
– 11/12 with Multimedia
– Onboard navigation
– Cameras incl. autofocus
– DRM “Playsforsure” and Google
– 3D sound
Restored customer confidence
BenQ Mobile – Five months since closing…
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Launching BenQ-Siemens with a 3-event strategy targeting diverse key audiences
March
Berlin & Beijing
Brand launch
January February
3GSM Barcelona
First detailed hands-on exposure of BenQ-Siemens to larger B2B and press audience
CeBIT 2006 Hanover
Consumer launch of "Exploration" Brand
Place
Target
• Top tier news, business and industry media
• Tailored analyst briefings
• Focus on technology and trade press
• Building on momentum from brand launch
• Consumer and general media
Target group
BenQ-Siemens
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
CeBIT Impressions
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Leading the news agenda at CeBIT 2006
• Final part of the trilogy supporting the brand roll out• Focus on creating strong visual images for broadcast media and
photographers and capturing pre-event coverage opportunities
Results from March 8th to 13th….• 750 media attendees at booth incl. 35 tv teams and incl. 350
international media• 1000 press kits were distributed at booth and press center• 633 clippings achieved so far (just five countries are covered!)
– 132 print, 437 online, 64 TV• 41 media received interviews with executives • Story featured on at least 5 news wires incl. dpa, Reuters, ddp, ap
and afp
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Critical Milestones—Paths to Competitiveness
No. 2 Top line
improvementFurther
improve cost and synergies
Technology leadership in Technology (e.g. HDSDPA, OLED), Design and User Experience (Awards, dedicated music keys, material); Multimedia
Adjustments to handset portfolio on track; already launched twelve new handsets on time in Q1.
New handsets drive up ASP sequentially.
Material savings to accelerate beginning in Q2/Q3 with ramped-up production of new models—redoubling BenQ resources to achieve cost-cutting goals.
Re-invest in Market share
Reevaluate growth perspectives by product and Region (North America, India, Africa
Increasingly leverage complementary (BenQ-Siemens) presence
No. 3 Expanding
Market Share
Stopping volume erosion in Q3 and Q4.
Secure transition/carve out of business
Reorganize/Integrate operations
Reduce cost to achieve 500’ cost savings
Achieve credibility with consumers: Outstanding Operator listings status
No. 1Achieving
Operational and Market
Stability
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New Product Launches
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BG
Super slim slide phone with semi-automatic slider mechanismRich multi-media applicationsLarge and high-quality TFT displayExtendable memory
BenQ mobile CL71Enjoy Digital Life
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BG
Brilliant Active Matrix OLED with 170o viewing angle and 10,000:1 contrast ratio for display of multimedia content, 2.0”, 176 x 220 pixels 2.0 megapixel camera with 16x smooth digital zoom, autofocus and LED flashFull multimedia support: video recording/playback, music player, microSD™ card slotDirect printing of pictures with PictBridge
BenQ-Siemens S88For the Love of Color
Astral WhiteCosmic Black
The world’s first Active Matrix OLED screen—on a mobile handset.
The world’s first Active Matrix OLED screen—on a mobile handset.
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BG
Recognizable music-oriented design and user interface3D surround sound and 6 equalizersVoice & FM radio recordingEnjoy music with a wireless Bluetooth® Stereo Handset
BenQ-Siemens EF51 Absolutely Music
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BGBenQ-Siemens EF91 Thrilling Speed and Top Performance
High-speed data transfer and downloads via HSDPAExcellent high-resolution camera (3.2 megapixel, autofocus camera, 14x digital zoom) & high-brightness LED flashBrilliant display (262,144 colors, LTPS TFT, 240 x 320 pixels, 2.0 inches)Intelligent power saving via light sensor
The world’s first HSDPA handset.
The world’s first HSDPA handset.
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
BenQ mobile E61Your Fascinating Music Phone
Mobile BG
Exquisite and fashion ID design Musical fun with dedicated MP3 top access key Extendable memory card (Mini SD)VGA camera, 2x/4x linear digital zoomLoud speaker playing
E61: first ever handset equipped with a top-access key pad.
E61: first ever handset equipped with a top-access key pad.
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BGBenQ-Siemens S81Slim Look – Full UMTS
UMTS with high-speed data rate (384 Kbps) realized in a slim designVideo telephony via VGA cameraVideo streaming and downloading with H.264/AAC+ formatMP3 player – microSD™ card slot (min 30 MB built-in memory)Integrated 1.3 megapixel camera with LED flashFull PIM function and easy PC synchronization
The world’s slimmest 3G UMTS candybar phone.
The world’s slimmest 3G UMTS candybar phone.
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BGBenQ-Siemens EF81UMTS Performance In Lean Design
UMTS in a 15.9 mm slim magnesium clamshell 2.0 megapixel camera for video telephony, still photography and video recordingTwo large displays (2.2 inch QVGA and 1.3 inch QQVGA)Premium materialsWide range of Headset Bluetooth® solutions
Slimmest 3G clamshell phone in the world, featuring mineral glass and steel magnesium casing.
Slimmest 3G clamshell phone in the world, featuring mineral glass and steel magnesium casing.
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BGBenQ-Siemens S68Professional Convenience
Premium slim design with an extraordinary finishFocus on core business functionsConvenient usage with voice message and dictaphone key, Fast Dialing™ keyOptimal visibility of display content under all lighting conditionsDesign focused on best ergonomics and usability
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BG
Full multimedia support: video recording, playback and streamingLatest audio codecs: MP3-eAAC+ and enhanced music sorting Best-in-class loudspeaker for superior sound1.3 megapixel camera with 5x digital zoomVideo ringtones and sound recorder 128 MB RS-MultiMediaCard & Headset Stereo bundled for up to 10 h of music listening
BenQ-Siemens C81Multimedia Companion
One of many award-winning BenQ Mobile handsets.
One of many award-winning BenQ Mobile handsets.
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BG
Full business functionality: Windows Mobile™ 5.0, SKYPE, ActiveSync, e-mail push, document browsing and editing incl. PowerPointMobile navigator with integrated GPS receiver & onboard navigation solution (optional) Seamless connectivity: WLAN 802.11 b/g, Bluetooth®, USB, SDIO slot Easy date input: QWERTY keyboard, large touchscreen displayFull multimedia features: 1.3 megapixel camera, media player for video & music, …
BenQ-Siemens P51 The Smart Navigator
GPS and SKYPE enabled.GPS and SKYPE enabled.
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BGBenQ-Siemens CF61 Multifaceted Snapshot Phone
Exchangeable front covers to suit your style3D surround sound allows you to enjoy music with friendsHigh-quality 1.3 megapixel camera with "9 consecutive shots" & "living picture" optionsMicroSD™ slot
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Mobile BGBenQ-Siemens EL71Unexpected Finishing
Real metal finish – brushed aluminum and magnesium Slim and compact slider – 16.5 mm thinVery bright QVGA display for optimal readability both indoors and outdoors, 262,144 colors
Opal BlackQuartz Anthracite
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Computing Products BG
Color consistent between monitors, devices, real environment simulation. By “luminance Compensation” function of the wired controller, we can let the brightness of this LCD monitor is the same as before.The Independent Six-Color Adjustment (Red, Green, Blue, Cyan, Yellow, Magenta) User Friendly
BenQ FP91R
Integrated multimedia speakers Lightning-fast 6ms response timeHigh 300 cd/m2 brightness, a 700:1 contrast ratio D-Sub/DVI dual input for maximum compatibility
BenQ FP92E
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Computing Products BG
Joybook S61
Intel® Core™ Duo Processor T2300 (1.66GHz, 2MB L2 Cache, 667MHz FSB)
Genuine Windows® XP operation system
12.1" UltraVivid widescreen NB with Digital TV (DVB-T)
Ultra light weight 1.5kg equipped with optical drive (without battery)
Full-sized ergonomic curved keyboard design
Joybook S73
Intel® Core™ Duo Processor T2300(1.66GHz, 2MB L2 Cache, 667MHz FSB)
Genuine Windows® XP operation system
14.1" UltraVivid widescreen NB with Digital TV (DVB-T)
Multiple choice of output interface: DVI-D/VGA/S-Video
ATI® MR X1600 with 256MB VRAM
BenQ Confidential (2006/3/14) 2006, BenQ Corporation
Digital Media BG-New Projector Line-up
W100 Home Entertainment SeriesNative 16:92500:1 High Contrast25 db Whisper Quite DesignEquipped with 7 segment color wheel for vivid
color
CP120 Commuter SeriesThe World Smallest Wireless Projector
Compact Size (< A5); Light Weight (2.9lbs)Built-in Wireless Connectivity (802.11 a/b/g)
1500 ANSI Lumens2000:1 high contrast
Carl Zeiss Len Design Real Time Auto Keystone
CP120
MP770
PE7700
W100
W10000
SP820
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
1920 X 1080 High-resolution DisplaySenseye technologyCompelling audio experience promised by D2Audio ® SoundSuiteConntetor Auto Detection
BenQ PH4281/PL4271
BenQ VL3231
1920 X 1080 High-resolution DisplaySenseye technologyHumanity feature design, such as Ambient Light Sensor,
HDMI, Swivel +15。~ -15。
Digital Media BG
Q1 Guidance
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BenQ Confidential (2006/3/14) 2006, BenQ Corporation
2006 Q1 Guidance
Computing Products
• LCD monitor: strength continues into Q1; positioned to gain share.
• Optical Disk Drive, Joybook down slightly on seasonality.
Digital Media
• LCD TV, projector down slightly in Q1.
Mobile Business
• Volume expected to come in below Q4 level on seasonality and
product transition; ASP expected to improve.
Overall Q1 revenue below that of Q4.
BenQ Corporation N on-c ons ol id ated Bal anc e S h eets ( P arent Com pany O nl y )
D ec em b er 3 1, 2 0 0 4 and 2 0 0 5 (expressed in thousands of New Taiwan dollars)
2 0 0 5 . 1 2 . 3 1 2 0 0 4 . 1 2 . 3 1
A s s e ts N T $ N T $ C u r r e n t a s s e ts :
C a s h a n d c a s h e q u i v a l e n t s $161,789 - 599,457 1 S h o r t -t e r m i n v e s t m e n t s 104,572 - 5,431,034 7 N o t e s a n d a c c o u n t s r e c e i v a b l e , n e t 6,498,786 8 5,463,363 7 R e c e i v a b l e s f r o m r e l a t e d p a r t i e s 26,122,736 29 20,254,426 26
O t h e r f i n a n c i a l a s s e t s �c u r r e n t 7,203,237 8 91,054 - I n v e n t o r i e s , n e t 5,581,355 6 3,859,895 5 P r e p a i d e x p e n s e s a n d o t h e r c u r r e n t a s s e t s 1,988,102 2 306,704 1 D e f e r r e d i n c o m e t a x a s s e t s -c u r r e n t 463,010 1 551,148 1
T o ta l c u r r e n t a s s e ts 48,123,587 54 36,557,081 48 L o n g -te r m e q u i ty i n v e s tm e n ts :
E q u i t y m e t h o d 31,670,537 35 30,393,198 40 C o s t o r l o w e r -o f -c o s t -o r -m a r k e t m e t h o d 1,435,406 2 1,594,978 2 33,105,943 37 31,988,176 42
P r o p e r ty , p l a n t a n d e q u i p m e n t:
L a n d 2,135,410 2 2,135,472 3 B u i l d i n g s 3,552,743 4 3,552,100 5 M a c h i n e r y a n d e q u i p m e n t 2,436,393 3 2,452,524 3 F u r n i t u r e a n d f i x t u r e s 146,528 - 139,819 - M i s c e l l a n e o u s e q u i p m e n t 69,441 - 69,770 - P r e p a y m e n t s f o r p l a n t a n d e q u i p m e n t 283,095 - 212,610 - 8,623,610 9 8,562,295 11 L e s s : a c c u m u l a t e d d e p r e c i a t i o n (2,830,831) (3) (2,492,858) (3)
N e t p r o p e r ty , p l a n t a n d e q u i p m e n t 5,792,779 6 6,069,437 8
O th e r a s s e ts ���� A s s e t s f o r l e a s e 997,171 1 1,013,907 1 R e f u n d a b l e d e p o s i t s 8,584 - 53,083 - D e f e r r e d a s s e t s 1,042,532 1 130,810 - D e f e r r e d i n c o m e t a x a s s e t s -n o n c u r r e n t 973,344 1 788,418 1
T o ta l o th e r a s s e ts 3,021,631 3 1,986,218 2 T o ta l a s s e ts
$9 0 , 0 4 3 , 9 4 0 1 0 0 7 6 , 6 0 0 , 9 1 2 1 0 0
2 0 0 5 . 1 2 . 3 1 2 0 0 4 . 1 2 . 3 1
L i a b i l i ti e s a n d S to c k h o l d e r s ’ E q u i ty N T $ N T $ C u r r e n t l i a b i l i ti e s :
S h o r t -t e r m b o r r o w i n g s $2,635,137 3 - -
N o t e s a n d a c c o u n t s p a y a b l e 4,706,044 5 5,875,657 8
P a y a b l e s t o r e l a t e d p a r t i e s 21,183,189 18 13,339,328 17
B o n d s p a y a b l e 1,138,662 6 1,400 -
A c c r u e d e x p e n s e s a n d o t h e r c u r r e n t l i a b i l i t i e s
3,418,044 4 3,576,749 5
I n c o m e t a x p a y a b l e - - 251,707 -
D e f e r r e d i n t e r -c o m p a n y p r o f i t 332,702 1 5,377 -
T o ta l c u r r e n t l i a b i l i ti e s 33,413,778 37 23,050,218 30
B o n d s p a y a b l e 7,050,000 8 4,287,855 6
O th e r l i a b i l i ti e s 5,148,897 6 184,976 -
T o ta l l i a b i l i ti e s 45,612,675 51 27,523,049 36
S to c k h o l d e r s ’ e q u i ty :
C o m m o n s to c k :
C o m m o n s t o c k 26,186,722 29 23,150,141 30
C o n v e r t i b l e b o n d s a p p l i e d f o r c o n v e r s i o n 13,063 - - -
26,199,785 29 23,150,141 30
C a p i ta l s u r p l u s : A d d i t i o n a l p a i d -i n c a p i t a l i n e x c e s s o f t h e c o m m o n s t o c k ’ s p a r v a l u e
8,295,561 9 5,152,848 7
C o n v e r t i b l e b o n d s c o n v e r t e d i n e x c e s s o f t h e c o m m o n s t o c k ’ s p a r v a l u e
7,168,462 8 7,106,864 9
C a p i t a l s u r p l u s f r o m t r e a s u r y s t o c k t r a n s a c t i o n s
12,432 - 6,812 -
C a p i t a l s u r p l u s f r o m l o n g -t e r m e q u i t y i n v e s t m e n t s
3,097,893 4 2,421,756 3
18,574,348 21 14,688,280 19
Legal reserves 4,016,353 4 3,254,424 4
R e t a i n e d e a r n i n g s (3,038,409) (3) 8,144,108 11
S p e c i a l r e s e r v e s 81,754 - - -
T r a n s l a t i o n a d j u s t m e n t 434,760 - (81,754) -
T r e a s u r y s t o c k (1,837,326) (2) (77,336) -
T o ta l s to c k h o l d e r s ’ e q u i ty 44,431,265 49 49,077,863 64 T o ta l l i a b i l i ti e s a n d s to c k h o l d e r s ’ e q u i ty
$9 0 , 0 4 3 , 9 4 0 1 0 0 7 6 , 6 0 0 , 9 1 2 1 0 0
BenQ Corporation
N on-cons ol id ated S tatem ents of I ncom e ( P arent Com pany O nl y ) Y ears end ed Decem b er 3 1, 2 0 0 4 and 2 0 0 5
(expressed in thousands of New Taiwan dollars, expec t earning s per share)
2005 2004
N T $ N T $
Net sales 124 , 4 0 6, 69 7 10 0 14 7, 770 , 156 10 0
Cost of goods sold (117, 80 0 , 512) (9 5) (136, 0 71, 9 72) (9 2)
6, 60 6, 185 5 11, 69 8, 184 8
Change in unrealized inter-company profits (327, 325) - 162, 182 -
Gross profit 6, 278, 860 5 11, 860 , 366 8
Operating expenses:
Selling (2, 9 70 , 757) (2) (3, 4 33, 615) (2)
Administrative (9 50 , 728) (1) (9 57, 4 31) (1)
Research and development (3, 273, 284 ) (3) (3, 726, 225) (3)
(7, 19 4 , 769 ) (6) (8, 117, 271) (6)
Operating income (loss) (9 15, 9 0 9 ) (1) 3, 74 3, 0 9 5 2
Non-operating income:
Interest income 33, 317 - 6, 9 72 -
Investment income - - 3, 563, 54 8 3
Dividend income 9 8, 24 3 - 169 , 0 32 -
Gain on disposal of property, plant and equipment 7, 551 - 3, 250 -
Gain on disposal of investments, net 1, 787, 359 2 382, 275 -
Foreign exchange gain, net - - 278, 0 86 -
Others 272, 19 8 - 20 0 , 0 53 -
2, 19 8, 668 2 4 , 60 3, 216 3
Non-operating expenses:
Interest expense (4 88, 9 0 1) - (24 5, 0 4 6) -
Investment loss (5, 515, 181) (5) - -
Foreign exchange loss, net (381, 650 ) - - -
Permanent decline in the long-term equity investment’s value
(14 9 , 30 7) - (350 , 0 0 0 ) -
Loss on disposal of property, plant and equipment (2, 9 4 3) - (19 , 269 ) -
Impairment loss (18, 59 8) - - -
Others (32, 30 6) - (3, 4 70 ) -
(6, 588, 886) (5) (617, 785) -
Net income before income tax expense (5, 30 6, 127) (4 ) 7, 728, 526 5
Income tax benefit (expense) 80 , 556 - (10 9 , 238) -
Net income $( 5, 225, 57 1 ) ( 4) 7 , 6 1 9 , 28 8 5
Earnings per share:
Basic earnings per share ( 2. 1 2) 3 . 1 0
Diluted earnings per share - 3 . 08
BenQ Corporation
Non-consolidated Statements of Cash Flows (Parent Company Only) Years ended December 31, 2004 and 2005
(expressed in thousands of New Taiwan dollars)
2005
2004
NT$ NT$ Cash flows from operating activities:
Net income $(5,225,571) 7,619,288 Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
Depreciation 490,069 546,988 Amortization 185,156 66,409 Change in provision for bad debt and sales allowance 239,277 (20,184) Change in provision for inventory obsolescence (65,263) (78,094) Investment loss (income) on long-term equity investments, net 5,490,018 (3,563,548) Cash dividends received from investees accounted for by equity method 1,167,779 1,015,008 Gain on sale of short-term investments (1,779,304) (384,753) Loss(Gain) on sale of long-term investments (8,055) 2,478 Impairment loss on long-term investment 149,307 350,000 Loss (gain) on disposal of property, plant and equipment (4,608) 16,019 Fixed assets transferred to expenses Unrealized foreign exchange gain on overseas convertible bonds
- 5,026
158 (22,578)
Reversal for redemption of overseas convertible bonds (6,733) (10,509) Impairment loss 18,598 - Amortization of bond issuance cost 1,767 1,067 Differences in accounts in the accompanying balance sheets:
Notes and accounts receivable (1,274,700) 2,841,037 Receivables from related parties (5,927,352) (775,212) Inventories (1,656,197) 1,682,705 Other financial assets-current (89,969) (21,434) Prepaid expenses and other current assets (601,027) (3,418) Notes and accounts payable (1,169,613) (1,087,798) Payables to related parties 3,392,714 (2,787,584) Deferred inter-company profit 327,325 (162,182) Accrued expenses and other current liabilities (272,527) (1,047,679) Income tax payables (251,707) 190,343 Deferred income tax assets (96,788) (334,333) Other liabilities (19,105) (19,105)
Net cash provided by operating activities (6,981,483) 4,013,089
Cash flows from investing activities: Additions to long-term investments (1,323,151) (316,131) Decrease in short-term investments 7,105,766 (1,565,760) Additions to property, plant and equipment (221,289) (343,109) Proceeds from disposal of long-term investments Proceeds from disposal of property, plant and equipment
22,433 28,136
5,243 52,829
Increase in refundable deposits and deferred assets (1,003,886) (64,178) Receipt from investees’ capital reduction Net cash received from merger Cash paid for acquisition of Siemens’ mobile division
64,751 -
(3,966,600)
506,586 215,020
- Net cash provided by investing activities 706,160 (1,509,500)
Cash flows from financing activities: Increase in short-term borrowings 2,635,137 - Redemption of convertible bonds (1,400) (200,300) Acquisition of treasury stock (1,759,157) (651,354) Issuance of bonds Issuance of common stock
4,000,000 4,642,713
2,050,000 -
Directors’ and supervisors’ remuneration (54,205) (67,501) Payment of cash dividends (3,473,263) (4,123,924) Payment of employee bonuses (152,170) (50,626)
Net cash provided by (used in) financing activities 5,837,655 (3,043,705)
Net increase (decrease) in cash and cash equivalents (437,668) (540,116)
Cash and cash equivalents at beginning of period 599,457 1,139,573
Cash and cash equivalents at end of period $161,789 599,457
Additional disclosure of cash flow information: Cash paid during the period for:
Interest, excluding capitalized interest $404,752 161,760 Income taxes $272,511 253,228
Supplemental disclosure of non-cash investing and financial activities: Increase (decrease) in capital surplus from long-term equity investments $756,257 1,013,553 Increase (decrease) in translation adjustment $516,514 (558,615) Convertible bonds converted to common stock and capital surplus $97,487 426,408