pioneering global micro led technologymops.twse.com.tw/nas/str/352720180315m002.pdf ·...
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Pioneering Global Micro LED Technology
Executive Summary We are the World No.1 LED signage display driver IC supplier with expertise in
providing IC products and services not only for LED display, but also for LED backlighting and LED lighting.
Innovation in technology and business model is part of our DNA.
We believe Micro LED will dominate the next generation of display technology. Positioning ourselves as the pioneer in Micro LED, we are collaborating with the Taiwan government and industrial partners to accelerate the development and adaptation of Micro LED.
To enhance earnings growth, we intend to transform into a leading Micro LED solution provider for multiple product segments. Target product segments include Micro LED display micro-assemblies and integrated driver IC solutions for wearables, mobile devices and TV applications.
Given the dual trends of migration to fine pitch displays and increasing penetration of Micro LED, we are committed to surpassing 30% annual top line growth over the next three years.
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Company Overview01
Micro LED – The next disruptive display technology & MBI strengths
02
Growth Strategy and Goal03
Financial Summary04
Agenda
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Company Overview
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MBI – The LED Driver IC Expert
As a mixed-signal IC design house, we specialize in power management and opto-electronic ICs for the LED display market with No.1 market share in fine-pitch display driver IC market.
Founded in June, 1999. No. of employees: +180 Listed on TWSE in October, 2007.(Ticker : 3527) Market cap:US$80mn Major products: LED Display Driver IC
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2,155 2,147 2,033
2,491 2,716
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0
500
1,000
1,500
2,000
2,500
3,000
2013 2014 2015 2016 2017
Sales (NT$mn) y-y% (RHS)
Technology Innovation
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MBI’s 13% R&D intensity is the highest among peers
Highest R&D intensity
and200+patents*
LED DisplayCommercial Display
Traffic Sign /VMS
Micro LED Display
LED ArchitectureLED Mesh
LED Strip
LED Cluster
LED LightingLED Wall Washer
Flat Panel Lighting
Spot Light
Automotive LightingInterior Car Lights
Indicator Lights
Head/Tail Lights
*167 approved, 35 pending
MBI has a Global Footprint
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Signage displays equipped with MBI driver IC are installed around the world, supported by MBI’s sales and service network.
Displays with Macroblock driver IC.
Micro LED The Next Disruptive Display Technology & MBI Strengths
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Micro LED Footprint is 99% Smaller than Traditional LED
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LED
Micro LED
Micro LED is the Next Disruptive Display Technology
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Film or Glass
RGB Micro LED
Electrode
Substrate
Micro LED display has simple architecture and overwhelming advantages:
Polarizer
Encapsulation
ElectrodeEIL / ETL
Organic Light-emitting Layer
HTL / HILElectrode
Substrate
OLED Liquid Crystal
Polarizer
Glass Substrate
Glass Substrate
Color Filter
Backlight Module
Polarizer
TFT LCD
Micro LED OLED LCD
Type Self-emissive Self-emissive
Backlight / LED
Contrast Ratio ∞ ∞ 5000 : 1
Life Span Long Medium Medium
Response Time ns μs ms
Image sticking No Yes -
Lowest Working
Temperature-100~120℃ -30~85℃ -40~100℃
Viewingangle
Wide(close to 180°) Medium Narrow
Micro LED
Longest life spanQuickest response
Highest brightnessLowest power consumption
No image stickingHighest pixel per inch
*Source: LEDinside, Morgan Stanley Research
MBI Core Strengths Match Current Trends in Micro LED Development
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1. MBI is leveraging its core competencies to move into Micro LED MBI display driver IC, module, system solutions, channel and services
2. Indoor display trending towards Mini/Micro LED-equivalent pitch Requires the development of precision die control and integrated ICs
3. MBI innovation culture positions us to capture addressable market
Core Competency
Driver IC
Micro LED
DisplayModule
DisplaySystem
SalesChannel
ClientService
4%10%
13%
20%
30%
30%
1%4%
7% 15%20%
30%
1% 2% 5% 10% 15%
% o
f fin
e pi
tch
mar
ket s
ize
P2.5 P1.9 P1.6 P1.2 P0.9 <P0.9 *Fine pitch display migration
*Mini/Micro LED-equivalent pitch
Growth Strategy and Goal
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Core Business Will Continue to Grow with Industry Move to Fine Pitch Display
Fine pitch display driver ICFine pitch display market to grow from US$789mn to US$1,350mn, +14% 2016-20 CAGR*.
Customized IC solutions for cost or performance driven clients.
Next generation generic driver ICInnovation of driver IC technology: triple channel count
Better performance and ease design.
IoT display/lighting systemSensor, big data, error detection and failure prediction for display and lighting.
Integration of IoT function for interactive smart display
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*Source: ABI Research
IoT Embedded System
Sensor
Gathering data
Communication
Upload data
Cloud
Storage
Big data
Analysis
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Lighting
Smart Display
MBI Mission and Vision
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MBI 2.0
MissionIlluminating life through lighting innovation.
VisionA leading LED player using digital & data strategies to empower our partners in expanding their addressable market.
Financial Summary
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Key Financial Performance
17Source: Capital IQ, Bloomberg and company data
32% 34% 33% 33%28%
6%9%
6%9%
5%0%
5%
10%
15%
20%
25%
30%
35%
40%
2013 2014 2015 2016 2017
GPM OPM
4.9 5.5
3.5
6.1
4.1
9%
12%
6%
11%
7%
0%
2%
4%
6%
8%
10%
12%
14%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2013 2014 2015 2016 2017
EPS (NT$) ROE(RHS)
2,155 2,147 2,033
2,491 2,716
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0
500
1,000
1,500
2,000
2,500
3,000
2013 2014 2015 2016 2017
Sales (NT$mn) y-y% (RHS)
82%
81%
100%
58%
61%
5% 7% 8% 5% 4%
$0
$2
$4
$6
0%
20%
40%
60%
80%
100%
120%
2013 2014 2015 2016 2017
Payout ratio %Yield %Cash dividend per share (RHS)
2013-2017 Income Statement
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NT$ million 2013 2014 2015 2016 2017
Sales Revenue 2,155 2,147 2,033 2,491 2,716
Gross Profit 691 733 660 818 763
Operating Profit 132 183 112 231 131
Income before tax 165 223 118 206 152
Net Income 159 181 114 198 140
EPS (NT$) 4.9 5.5 3.5 6.1 4.1
Y-Y (%)
2014 2015 2016 2017
-0.4 -5.3 22.5 9.0
6.2 -10.0 23.8 -6.7
37.9 -38.5 105.5 -43.3
35.3 -47.0 74.8 -26.4
13.7 -36.6 72.7 -29.3
13.9 -36.5 72.7 -29.3
Gross Margin 32% 34% 33% 33% 28%
Operating Margin 6% 9% 6% 9% 5%
Net Margin 7% 9% 6% 8% 5%
ROE 9% 12% 6% 11% 7%
Source: Bloomberg and company data
2013-2017 Balance Sheet
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NT$ million 2013 2014 2015 2016 2017
TOTAL ASSETS 2,063 2,180 1,928 2,296 2,582
Cash 1,017 901 819 650 848
NR & AR 354 449 350 587 737
Inventory 289 354 267 603 518
Fixed Asset 186 177 182 166 172
TOTAL LIABILITIES 559 616 417 668 917
Bank Loans 15 15 35 2 42
AP 286 340 170 408 335
TOTAL EQUITY 1,504 1,564 1,510 1,628 1,665A/R turnover days 50 68 72 69 89Inventory turnover days 77 83 83 95 105
A/P turnover days 65 81 68 63 69
Cash conversion cycle 62 70 87 101 125
Y-Y (%)
2014 2015 2016 2017
5.7 -11.6 19.1 12.5
-11.4 -9.1 -20.7 30.4
26.8 -22.0 67.5 25.6
22.4 -24.7 126.0 -14.1
-4.9 2.5 -8.5 3.8
10.2 -32.2 59.9 37.3
0.0 133.3 -94.3 1988.9
18.7 -50.0 140.7 -18.1
4.0 -3.5 7.8 2.3
Source: Bloomberg and company data
THANK YOU
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