TXC Corporation Investor Conference · 2009. 5. 13. · Our Target Customers • Global Giants •...
Transcript of TXC Corporation Investor Conference · 2009. 5. 13. · Our Target Customers • Global Giants •...
TXC Corporation Investor Conference
May 13, 2009
2
Agenda
• Financial Results
• Sales & Marketing
• Technology and Product
• Highlights
• Q & A
3
Financial Results
4
Revenue TrendRevenue Trend
Unit: NT$ in Million
1,394
1,803
2,153
1,7921,614
0
500
1,000
1,500
2,000
2,500
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09
YoY-13.6%
QoQ-22.7%
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Monthly Quantity TrendMonthly Quantity Trend
Unit: Pcs in Million
185197
212
189177 181
131
9889
112
165178
8%
27%
-10%
-25%-27%
47%
-
50
100
150
200
250
08'05 08'06 08'07 08'08 08'09 08'10 08'11 08'12 09'01 09'02 09'03 09'04
-40%
-20%
0%
20%
40%
60%
QTY MoM
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Monthly Revenue TrendMonthly Revenue Trend
Unit: NT$ in Million
594 592659
712782 773
560
470
379
592626
423
6%11%
-19%-16%
-28%
40%
-
100
200
300
400
500
600
700
800
900
08'05 08'06 08'07 08'08 08'09 08'10 08'11 08'12 09'01 09'02 09'03 09'04
-40%
-20%
0%
20%
40%
60%
AMT MoM
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Gross Profit TrendGross Profit Trend
Unit: NT$ in Million
273
420482
54559319.6%
30.2%27.6%26.9%26.0%
0
100
200
300
400
500
600
700
1Q'08 2Q'08 3Q'08 4Q'08 1Q'090.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
YoY-34.9%
QoQ-49.8%
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Operating Expense TrendOperating Expense TrendUnit: NT$ in Million
233247
225208178
12.8%12.9%
11.5%
12.9%12.6%
0
50
100
150
200
250
300
1Q'08 2Q'08 3Q'08 4Q'08 1Q'0910.5%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
YoY-14.2%
QoQ-23.7%
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206 212
276257
69
0
50
100
150
200
250
300
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09
Net Income TrendNet Income TrendUnit: NT$ in Million
YoY-66.5%
QoQ-73.1%
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Balance Sheets & Key IndexBalance Sheets & Key Index
Item 1Q'08 4Q'08 1Q'09Cash & Financial assets-current 1,008 992 1,370 Notes & Accounts receivable 1,981 2,262 1,733Inventory 968 902 824 Fixed assets 3,478 4,439 4,392 Total assets 7,757 8,801 8,529
Notes & account payables 1,320 1,107 993 Current liabilities 2,384 2,027 1,748 Long-term liabilities 199 1,141 1,011 Total liabilities 2,592 3,176 2,767 Stockholders' equity 5,165 5,625 5,761
Debt ratio 33.4 36.1 32.4 Current Ratio 173.5 210.7 230.9 Quick Ratio 125.3 160.6 177.5 Net value per share 21.4 20.7 21.2
Unit: NT$ in Million
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Unit: NT$ in Million
Dividend DistributionDividend Distribution
* PSE includes Employee Profit sharing expensing and rewards for Board of Directors and Supervisors.** Yield according to the closing share price on the Shareholders meeting date.*** Available allocation includes beginning undistributed profit, net income and PSE for 2008.****$2.0 cash dividend and o.5 stock dividend per share in 2008.
84 98 137
1,399
1,218
894 716 672618
57.83%
78.57%
66.79%
2.88% 3.73% 6.68%
-
200
400
600
800
1,000
1,200
1,400
1,600
2006 2007 20080%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Available Allocation Dividend PSE Payout Ratio (%) Yield
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Taiwan Top 1000 Ranking Taiwan Top 1000 Ranking
199
341
391423
508559
352
304
224
164 117
351
228181
164
0
100
200
300
400
500
600
2004Y 2005Y 2006Y 2007Y 2008Y
Revenue Growth ratio Net income ratio
* Data source from CW magazine
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Sales & Marketing
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Global Giants
IC DesignHouses EMS/CMs
TXC
Our Target Customers• Global Giants
• EMS/CMs
• IC Design Houses
Our Target Customers• Global Giants
• EMS/CMs
• IC Design Houses
Business ModelBusiness Model
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Sales by IndustrySales by Industry
MOBILE18%
Others10%
NETWORKING26%
PC16%
GLOBAL19%
AUTOMOTIVE0.3% CONSUMER
ELECTRONICS11%
GLOBAL18%
MOBILE20%
NETWORKING30%
PC14%
Others77%
AUTOMOTIVE1.0%
CONSUMERELECTRONICS
10%
2008 2009 forecast
2009 Q1
GLOBAL19%
MOBILE18%
NETWORKING29%
PC15%
CONSUMERELECTRONICS
11%
AUTOMOTIVE0.2%
Others8%
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Sales by ApplicationSales by Application
Automotive0.3%
Wimax/WiFi11%Webcam
1%
Others10%
Networking8%
NB12%
MP37%
Mobile14%
LCD M/TV1%
DSC3% Game Console
4%HDD6%
PND/GPS1%
STB4%
Storage/Server
4%
Pen Driver5%
PC/MB3%
BT6%
2009 forecast2008Automotive
1%Wimax/WiFi
13%Webcam
1%
Others8%
Networking8%
NB12%
MP35%
Mobile15%
LCD M/LCDTV
0.5%
DSC3% Game
Console5%HDD5%
PND/GPS2%
STB4%
Storage/Server
6%
Pen Driver4%
PC/MB1%
BT7%
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Automotive• SAN / Server / Storage • GPS
• TPMS
Sales by Sales by ContributionContribution
• New customers will ramp up in 2009 and focus on networking and mobile application.
• China market for Netbook, CDMA and TPMS will grow up.
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Worldwide RankWorldwide RankWorldwide Revenue of the Top Crystal and Oscillator Suppliers (Millions of Dollars)
* Data Courtesy of CS & A
(06-07) (07-08) 2007 2008
Change%
Change%
MarketShare
MarketShare
1 1 1 Epson Toyocom 645 656 675 1.7% 2.9% 18.4% 19.9% 19.9%2 2 2 NDK 626 649 571 3.7% -12.0% 18.2% 16.9% 36.8%4 4 3 KDS 290 293 327 1.0% 11.6% 8.2% 9.7% 46.4%3 3 4 Kyocera Kinseki 372 380 304 2.2% -20.0% 10.7% 9.0% 55.4%6 6 5 TXC 161 192 222 19.3% 15.6% 5.4% 6.6% 62.0%
5 5 6 Vectron (Corning) 211 206 200 -2.4% -2.9% 5.8% 5.9% 67.9%- - 7 Hosonic - - 119 - - - 3.5% 71.4%9 7 8 Rakon (C-MAC) 59 109 96 84.7% -11.9% 3.1% 2.8% 74.2%7 8 9 TEW 88 88 75 0.0% -14.8% 2.5% 2.2% 76.4%8 9 10 Micro Crystal 60 62 56 3.3% -9.7% 1.7% 1.7% 78.1%11 11 11 Pericom ( eCERA) 49 57 53 16.3% -7.0% 1.6% 1.6% 79.6%10 10 12 River 59 60 51 1.7% -15.0% 1.7% 1.5% 81.1%13 13 13 Conner-Winfield 47 46 44 -2.1% -4.3% 1.3% 1.3% 82.4%12 12 14 Fox 48 51 40 6.3% -21.6% 1.4% 1.2% 83.6%- 15 15 CTS - 35 34 - -2.9% 1.0% 1.0% 84.6%
Total Revenue 3,286 3,564 3,388 8.5% -4.9% 100.0% 100.0%
2006Revenue
2007Revenue
Cumulative%
2008Revenue
2006Rank
2007Rank Company Name
2008Rank
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Domestic Market
Global Market
China Market
• Get Taiwan EMS design-in
• increase market share
• Create Global EMS customers
• Get Tier 1 customer design-in
• Add Americas & EMEA sales channel
• Maintain Taiwan EMS relationship and
get worldwide OEM/ODM order
• Create local customers
• Add market share
Marketing StrategyMarketing Strategy• China Market
– Local mobile handset customers with big volume shipment
• GSM • CDMA will be the next
– Local Networking Giants with AOM products
– Automotive• Global / Domestic Market
– Maintain existing basis to explore more business opportunities
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Technology & Product
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201120102009
Technology StrategyTechnology Strategy
SMD Crystal 1612 1210
SMD HF CXO (PECL/LVDS) 5032
SMD VCXO (CMOS) 5032
SMD HF VCXO (PECL/LVDS) 5032
SMD CXO 2016
Automotive Crystal 2016
SMD Tuning Fork 2012
High frequency low noise• Saw-based HF Oscillators
• VCSO
SMD TCXO 2016
Miniaturization
Higher
Performance
Ultra stable• TCXO Stratum 3
• OCXO
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TXC Foundation Market
IT NetworkingConsumer Electrical
Mobile
AOM
• WiMax
•SIP Module
• CMMB
Automotive• SAN / Server / Storage • GPS
• TPMS• Non-safety
• Telecom (BS) / Datacom
Product StrategyProduct Strategy
• Basic rule– Move to high-margin products
• High margin products?– AOM (Advanced Oscillators and Modules )– Automotive– Smaller size
High FrequencyLow Jitter
High ReliabilityZero Defect
Smaller SizeHigh Stability
Smaller size
Automotive
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Highlights
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TXC Strategy in
09AOM products got more orders by
customers
Revenue will ramp up Quarter-over-Quarter
China Market will be the major sales growth power
Business HighlightBusiness Highlight
Wi-Fi and NB products shipment ramp up along with the Netbook success
TCXO for GPS took a first firm stand on market
Revenue will ramp up Quarter-over-QuarterGross margin rate will gradually grow up
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Q & AQ & A
Thanks!