2012 2H - Advantech

2012 1H Financial Results
2012/08/29
By Eric Chen
AVP of Finance & IT
eric.chen@advantech.com.tw
1
Y2012 YTM Financial Highlights
consolidate
2011
2012
1H
*1H
Net Sales
13,448
Gross Profit %
NT$ M
2012
QoQ%
YoY%
1Q
*2Q
13,511
6,267
7,244
15.6%
0.5%
38.8%
40.0%
39.8%
40.0%
0.2%
1.2%
Operating Expense
3,062
3,423
1,674
1,749
4.5%
11.8%
Operating Profit %
16.0%
14.6%
13.1%
15.9%
2.8%
-1.4%
177
104
78
26
-66.7%
-41.2%
1,881
1,728
750
978
30.4%
-8.1%
3.40
3.10
1.35
1.75
29.6%
-8.8%
Non-Operating Income
Net Profit AT
EPS - (NT$)
*un-audited
Y2012 YTM By Product - 1/2
Consolidate Sales: US$451M, -2%
Service Automation
US 40.3M
9%, -4.6%
Embedded System
51%
US 61.9M
14%, -3.6%
Automation Group
US 70.8M
16%, -10.4%
Global Services
US 58.5M
13%, -3.9%
% of Sales, YoY Growth
US 231.5M
-6.0%
Y2012 YTM By Product - 2/2
Consolidate Sales: US$451M, -3%
NC-DMS
49%
US 56.6M
12%, -15.0%
AC-DMS
US 219.8M
+1.6%
US 62.5M
14%, +1.7%
Embedded Core
US 100.7M
22%, +14.0%
% of Sales, YoY Growth
Y2012 YTM By Region/Sales Forces
Consolidate Sales: US$451M, -2%
USD$ M
2011 1H
2012 1H
GR%
%
North America
112
129
+15%
29%
Europe/ADLoG
78
70
-11%
15%
Greater China
128
122
-5%
27%
Asia/Intercon.
60
68
+13%
15%
DMS/E2E
60
42
-29%
10%
Affiliates
25
463
21
451
-16%
-2%
5%
100%
Total
Affiliates
DMS/E2E
6%, -16%
10%, -29%
North America
29%, +15%
Asia/Intercon.
14%, +13%
% of Sales, YoY Growth
Greater
China
27%, -5%
Europe/ADLoG
15%, -11%
Y2012 YTM Working Captial
consolidate
2010
2011
Year-End
Year-End
Cash Position
2,228
3,396
4,596
5,718
Account Receivable
DSO(Days)
3,338
4,116
4,164
4,863
47
58
59
65
Inventory
DOH(Days)
3,531
3,892
3,850
3,998
83
90
92
89
Account Payable
Days
1,759
1,998
2,353
2,873
41
46
56
64
NT$ M
*un-audited
6
2012
1Q End
*2Q End
Industrial Insights
*1 Following the IPC has become a global leader in the field, start from 2010,
Advantech is also the leading player in Embedded Computing Technology
(ECT). The leading trend in the first half of 2012 is more clearly.
2.
Smarter city & IoT industry continues to heat up, major international
companies such as IBM, GE, NEC also optimistic about prospects for
development in areas such as digital healthcare, energy saving and
smarter transportation. We believe the growth of related industries for an
“Intelligent Planet” can be expected in the next decade.
3.
Although the network communications business group (NC-DMS)
revenue declined due to its telecommunications customers poor
business performance, but Advantech has excellent manufacturing and
designing capacity. In the long run, for the design and manufacture of
telecommunications operations outsourcing services, we still has a
considerable advantage.
* Broker Research
Major Events & 2H Outlook
1. Sales dropped in greater China and European region due to weak
requirements. But in North America, South Korea and emerging
markets shows strong demand.
2. The revenues of Q3 is expected to close with Q2, Q4 will be stronger
than Q3 , 2H GP will be close to the level of first half average.
3. The first phase of Linkou collaborative R&D campus has been
contracting and under construction, expected to be finished in the end
of 2014. it will fulfill Advantech next decade biz expansion in Taiwan.
4. Established three overseas subsidiaries - India, Indonesia
and Mexico.
5. Ranked 11th as “2012 corporate citizen – large enterprise award” of
CommonWealth Magazine