Toward to a world-class IT firm
HANSUNG ELCOMTEC CO., LTD.
Investment Guide Book
2003 February
CONTENTS
Company Profile
Sales Plan and Business Performance
Business Turnaround
EL Business
CCM Business
BLU Business
Appendix
1
Company Profile
1. Introduction
Company name
Hansung Elcomtec Co., Ltd. (Registered on KOSDAQ)
Established
June, 1983
Founder
HAN, Wan Soo (CEO)
Capital stock
4.6 Billion Korean Won (KRW)
Total assets
67.5 Billion KRW
Turnover
59.4 Billion KRW
Company website
www.hselcomtec.com
2. Shareholders
Name
HAN, Wan Soo
HAN, Sam Soo
Public
Total
No. of shares
3,451,359
534,112
5,254,529
9,240,000
2
Percentage( % )
Remarks
37.35
5.78
56.87
100.00
CEO
Co-founder, President
of Chinese subsidiaries
Company Profile
3. Organization
HANSUNG ELCOMTEC CO., LTD.
Tianjin Hansung Elcomtec Co., Ltd.
Dooco Electronics Co., Ltd.
Ownership: Hansung Elcomtec 95%
Products: High Voltage Capacitors for Microwave
Ownership: Hansung Elcomtec 65%
Products: Vibration motors for mobile phones
Display Business Unit
Semiconductor Business Unit
Branch office (Tokyo, Japan)
Branch office (Bangkok, Thailand)
CCM (Compact Camera Module) Division
CMOS camera for mobile phones
EL (Electroluminescence) Division
EL Backlights, EL Keypads
Module Division
Mobile phones, LCD Module assembly
BLU (Back Light Unit) Division
LED Backlights for color and monochrome displays
3
Sales Plan and Business Performance
1. 2003 Sales plan
(Unit: Million KRW)
DEPT
1Q
2Q
3Q
DEL
7,951
6,783
5,406
3,860
24,000
19%
KEL
266
3,618
7,201
10,415
21,500
17%
BLU
2,240
6,923
14,938
17,599
41,700
33%
MODULE
1,428
1,382
1,344
1,036
5,190
4%
TOTAL
11,885
18,706
28,889
32,910
92,390
73%
SEMICCM
CONDUC
TOTAL
-TOR
T O T A L
749
6,459
10,282
16,410
33,900
27%
749
6,459
10,282
16,410
33,900
27%
12,634
25,165
39,171
49,320
126,290
100%
2002
12,663
14,931
14,739
17,161
59,494
GROTH
- 0.2%
68.54%
165.76%
187.40%
112.27%
D
I
S
P
L
A
Y
GROTH
RATE
ITEM
4Q
T OTAL
OTHERS
<Note > DEL : Display EL
KEL : Keypad EL
BLU : LED Back Light
CCM : Compact Camera Module
4
Sales Plan and Business Performance
2. 2002 Business performance
(Unit : Million KRW)
ITEM
1Q
2Q
3Q
L
6,827
7,939
9,174
10,118
34,058
57.2%
B L U
0
0
0
96
96
0. 2%
C C M
0
0
0
55
55
0. 1%
MODULE
0
43
161
805
1,009
1 .7%
H V C
3,645
4,026
2,974
2,835
13,480
22.7%
OTHERS
2,191
2,923
2,430
3,252
10,796
18. 1%
TOTAL
12,663
14,931
14,739
17,161
59,494
100.0%
GROTH RATE
VS 2001
7,334
8,901
10,093
11,680
38,008
72.7%
67.7%
46.0%
46.9%
56.5%
E
5
4Q
T O TAL
Sales Plan and Business Performance
3. 2001 Business performance
(Unit: Million KRW)
ITEM
1Q
2Q
3Q
4Q
L
1,335
2,465
4,413
6,266
14,479
38.1%
B L U
0
0
0
0
0
0%
C C M
0
0
0
0
0
0%
MODULE
99
0
127
0
226
0.6%
H V C
4,347
4,447
3,847
3,055
15,696
41.3%
OTHERS
,553
1,989
1,706
2,359
7,607
20.0%
TOTAL
7,334
8,901
10,093
11,680
38,008
100.0%
E
T OTAL
23,553
GROTH RATE
VS 2000
61.4%
6
Business Turnaround
World class IT firm
- Manufacturing specialized IT parts
- High value added products (Profitability)
- Healthy financial status
BLU, CCM, KEL
- Good demands for color and camera
phones lead good demands for BLU
and CCM
- KEL is a preferred thanks to its
superiority
EL
- Good market share in domestic market ( 60%)
- Market demands increased due to wider applications
- 1st growth stage
HVC
- Excellent market share in the world (43%)
- Established a factory in China for strategic competitiveness
7
World class IT firm
(’05 ~ )
2nd growth
(’03 ~ ’04)
1st growth
(’01 ~ ’02)
Foundation
(’83 ~ ’00)
EL Business
1.Business performance
(Unit : Million KRW)
Performance
Plan
Items
Remarks
DEL
Turnout
2000
2001
2002
2003
2004
2005
1,516
14,479
34,080
24,000
14,000
5,000
KEL
0
0
0
20,000
40,000
80,000
Other
0
0
0
1,500
6,000
15,000
Total
1,516
14,479
34,080
45,500
60,000
100,000
<Current status>
Samsung Electronics
- Sample tests completed with positive results
- Expected to start business from May ‘03
Sharp
- Sample tests completed with positive results
- Expected to start business from June ‘03
LG Electronics
- Sample tests completed with positive results
- Expected to start business from April ‘03
Telson
- Sample tests completed with positive results
- Expected to start business from June ‘03
8
EL Business
2. Competitive advantage
Competitors
- DEL: Han Ul (Relatively small firm)
- KEL: No significant competitors
Technology
- Noise problem solved (Patent)
- Long life and high brightness (Patent)
Competitive advantage
Capacity
- DEL: 5,200Kpcs/month
- KEL: 500Kpcs/month (Dec. ‘02)
3,000Kpcs/month (Oct. ‘03)
Market share
- DEL: 60% in domestic market
- KEL: 80% in domestic market (Plan)
Positive market results
9
EL Business
3. Superiority of EL Keypads
Characteristics
EL Keypads
LED Keypads
Uniformity
Color
Heat
Power consumption
Not good
Only single color applicable (Yellow, Blue)
Yes
50 ~ 150mA (10mA/LED, 13 LED: 130mA)
Unit price
Work-efficiency
Good
Various color applicable
No
Low (7~15mA; Similar to the power
consumption of LED 1pc)
App. 30% lower than Blue LED keypads
Good
Noise
Reliability
Solved (Patent in registration)
Good
Comparison
10
Expensive than EL Keypads
Required SMD technology, Works for defects
are complicated
Solved
Good
BLU Business
1. BLU Business performance
(Unit: Million KRW, Kpcs)
300,000
250,000
200,000
150,000
100,000
50,000
2002
Sales
Amount
Quantity
Unit price
2003
2004
2002
2003
96
204
470
41,700
8,500
4,900
11
2005
2004
2005
Remarks
136,800
29,750
4,600
261,800
59,500
4,400
Mono BLU for ‘02
Unit: KRW
BLU Business
2. Competitive advantage
Domestic market (Major business only)
Overseas market
1. Samsung SDI
- Started business from Feb. ‘03 (3 models)
- New projects in progress (13 models)
2. Dots Tech
- Started business from Nov. ‘02
3. DTC: Start business from Mar. ‘03
Vigorous business developments are being
are being discussed with well known firms such
as Seiko Epson, Philips, Sharp, Matsushita,
Wintek etc.
Competitive advantage
World class LGP (Light Guide Panel) technology: Competitive pricing, Competitive Leadtime
Excellent production facilities (State-of-the-art equipment, Clean rooms )
Cavity design capability: Competitive leadtime for customers
Good knowledge about the market thanks to the experience of EL business: Similar market thus
good business relationship with big buyers (Samsung Electronics, Samsung SDI, Pantech & Curitel)
Superior quality (Single PPM)
12
CCM Business
1. Current status and future plan
( Unit: Million KRW, Kpcs )
Sales
Amount
Quantity
2002
2003
2004
2005
55
50
(PLCC Package)
33,900
32,000
(10,500)
80,000
84,000
(9,500)
150,000
16,700
(9,000)
Remarks
<Current status>
•
•
•
•
Official contracts made with: Asetelecom, Inostream
Official contacts in progress: Korean located big mobile phone manufacturers (L, P, T, S)
Business developments are vigorously progressed with the other manufacturers in Korea and Taiwan
Mass production and delivery from 2Q ‘03 is expected
<Competitive advantage>
Cost advantage: Mass production
Vertical integration: Design ( CCM ), testing (Sensor evaluation) to Assembly (Packaging)
Stable Wafer supply: Strategic partnership with a Wafer supplier
Synergy effect: Hansung Elcomtec provides customers key parts for mobile phones (EL products,
BLU, Vibration motors and CCM)
13
CCM Business
2. CMOS vs CCD
CMOS is getting popular thanks to
Function & etc.
CMOS Image Sensor
CCD Image Sensor
its technical convenience and
improved technology while CCD
provides better resolution currently.
Camera components
Power consumption
CMOS is preferred by mobile
.
Response
PCB+Chip+Lens
Low
Better than CCD
PCB+multiple chip+Lens
High
Moderate
phone applications due to
technical superiority.
Speed
Fast
Moderate
Module size
Small
Moderate
Moderate
Good
Low
High
CCD is produced by few companies Resolution/Fine
in the world such as Sony, Sharp,
Price
Matsushita etc . rate for CCD is
14
Appendix
1. Investment plan
( Unit: Billion KRW)
I T E M
E L
INVESTMENT
CAPEX
KEL EXTENSION
( 500K
3,000K / M )
OTHERS
REMAR KS
2,000
200
WITHIN 2003
800
WITHIN 2003
Color BLU
PRODUCTION LINE EXTENTION
( 1,000 K
3,000 K / M )
C C M
FIRST LINE EXTENTION
( 500K
1,000K / M )
SECOND LINE EXTENTION
( 1,000K
2,000K / M )
2,000
WITHIN APR , ’03
4,000
WITHIN OCT , ‘03
CCM INVESTMENT PROGRAM
/ 1.3M
1,000
WITHIN 2003
R & D
T O T A L
10,000
15
Appendix
2. Balance sheet
(Unit: Million KRW)
ITEM
2000
2001
2002 (E)
2003 (E)
CURRENT ASSETS
18,446
21,571
25,982
35,000
FIXED ASSETS
15,592
29,875
41,603
45,700
TOTAL ASSETS
34,038
51,446
67,585
80,700
CURRENT LIABILITY
12,379
21,513
18,289
15,000
FIXED LIABILITY
1,584
2,473
10,103
8,067
TOTAL LIABILITY
13,963
23,986
28,392
23,067
3,000
4,620
4,620
4,620
10,920
15,863
18,443
18,443
6,155
6,977
16,130
34,570
SHARE HOLDERS’ EQUITY
20,075
27,460
39,393
57,633
TOTAL CAP. & LIAB.
34,038
51,446
67,585
80,700
DEBT RATIO
69.55%
87.35%
72.44%
40.02%
149.01%
100.27%
142.06%
233.33%
CAPITAL
CAPITAL SURPLUS
PROFIT SURPLUS
LIQUIDITY RATIO
16
Appendix
3. Income statement
(Unit: Million KRW)
ITEM
2000
2001
2002(E)
2003 (E)
SALES
23,553
38,008
59,494
126,290
COST OF SALES
19,116
30,538
43,118
87,150
GROSS PROFIT
4,437
7,470
16,376
39,140
SG & A
3,024
4,010
7,810
12,700
OPERATING PROFIT
1,413
3,460
8,566
26,440
NON - Op. PROFIT
2,511
2,644
2,886
3,350
972
1,056
2,487
2,790
2,952
5,048
8,965
27,000
INCOME TAX
681
1,053
1,793
7,560
NET INCOME
2,271
3,995
7,172
19,440
NET PROFIT MARGIN
9.6%
10.5%
12.05%
15,39%
FINANCIAL CHARGE
1.5%
1.2%
0.95%
0.9%
NON – Op. EXPENSE
ORDINARY
17
Appendix
4. Management
HAN, Wan Soo
(CEO)
KO, Ho Seok
(President, Display)
BEng (Engineering) at Seonggyunkwan University
Worked at Samsung as a strategic planning manager (‘72-’83)
Established Hansung Elcomtec Co., Ltd. (‘83)
Established Hansung Enertec Co., Ltd. (‘90)
Established Tianjin Hansung Elcomtec Co., Ltd. (‘94)
Established Hansung Heavy Electric Co., Ltd. (‘98)
BA (Law) at Jeonnam National University
Worked at Hansung Elcomtec (‘85-)
LEE, Dae Hoon
(President,
Semiconductor)
BEng (Engineering) at Seoul National University
MEng (Engineering) at Seoul National University
PhD (Engineering) at University of Texas at Austin
Worked at Hynix as a Senior director (‘87-’02)
HAN, Sam Soo
(President, Tianjin
Hansung Elcomtec,
Dooco Electronics)
BA (Business administration) at Wonkwang University
Co-founder of Hansung Elcomtec Co., Ltd.
Worked at Hansung Elcomtec (‘83-)
18