Transcript 슬라이드 1

Third Quarter 2012
Review and Update
December 11, 2012
Safe Harbor Statement
The market and industry information contained in this presentation has not been independently verified.
No representation or warranty, whether express or implied, is made as to, and no reliance should be
placed on, the fairness, accuracy, completeness or correctness of such information or opinions
contained herein. Neither Hanwha SolarOne Co., Ltd, or the Company, nor any of its affiliates, advisers
or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising from any use of this presentation or its contents or otherwise arising in connection
with this presentation.
This presentation contains statements that reflect the Company’s beliefs and expectations about the
future. These forward-looking statements are based on a number of assumptions about the Company’s
operations, and are subject to risks, uncertainties and other important factors, many of which are
beyond the Company’s control, and, accordingly, actual results may differ materially from the results
discussed in these forward-looking statements.
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would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
No securities may be offered or sold in the United States absent registration or an applicable exemption
from registration requirements. Any public offering of securities to be made in the United States will be
made by means of a prospectus that may be obtained from the Company and that will contain detailed
information about the Company.
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Financial Highlights of 3Q 2012
Categories
Third Quarter 2012
Shipments (MW)
239.5 (+3.8%) q/q
Revenue (US$ mil)
153.7 (-9.9%) q/q
Gross Margin (%)
-5.8%
NON-GAAP Earnings per Basic ADS 1
($0.57)
GAAP Earnings per Basic ADS
($0.61)
Note:
1
All non-GAAP numbers exclude the accounting impact from the adoption of ASC 815-40, which relates to the accounting treatment for the convertible
bonds. Non-GAAP financial results for prior quarters have been adjusted for comparability with the current quarter.
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Financial Trends
Revenues
Module Shipment
MW
200
200.9 189.1
230.7 239.5
160.7
150
100
50
0
3Q11
4Q11
1Q12
300
US$ m
250
2Q12
3Q12
200
3Q11
2Q12
3Q12
(5.8)
(20.1)
(30.0)
3Q11 4Q11 1Q12 2Q12 3Q12
(0.51) (0.46) (0.57)
(0.55)
%
%
(20.0)
1Q12
0.00
(0.75)
(9.4)
4Q11
Non-GAAP Net Income / Basic ADS2
0.0
(10.0)
127.7
168.7 153.7
0
6.3
2.8
155.4
100
Gross Margin1
10.0
225.4
(1.50)
(1.62)
(2.25)
3Q11
4Q11
1Q12 2Q12 3Q12
Note:
1 3Q11 and 4Q11 exclude non-cash provisions
2 All non-GAAP numbers exclude the accounting impact from the adoption of ASC 815-40, which relates to the accounting treatment for the convertible
bonds. Non-GAAP financial results for prior quarters have been adjusted for comparability with the current quarter.
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Module Revenue by Shipping Destination
Geographic distribution
Korea, 6%
3Q 2012
China,
11%
USA, 13%
Italy, 6% Belgium,
5%
Holland,
5%
Germany,
39%
Others,
15%
•
•
•
Korea/
China/
Japan 7%
USA
7%
Australia
3%
Spain
Italy
4%
4%
2Q 2012
Others
13%
Germany
57%
UK 5%
Germany is the largest (39%) but fell significantly due to July 1 incentive reductions
Asia Pacific region continued to grow and accounted for 22% of total shipments
US growth regained momentum to 13% of total shipments
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Cost Structure
Production Cost Using Internal Wafers
Blended COGS Per Watt1
1.35
1.5
1.16
0.92
1
0.72
0.71
0.5
US$/W
US$/W
1.5
1
4Q11
1Q12
2Q12
0
3Q12
Interest Expense Per Watt2
1.03
0.78
0.71
0.67
1Q12
2Q12
3Q12
0.5
0
3Q11
1.13
3Q11
4Q11
Operating Expenses as % of Revenue3
0.1
40.9
45
0.05
0.04
0.05
0.03
15
0
3Q11
4Q11
30
0.05
%
US$/W
0.07
1Q12
2Q12
3Q12
18.1
12
14
20.2
0
3Q11
4Q11
1Q12
2Q12
3Q12
Notes:
1 Excluding module processing business and non-cash provisions totaling $0.45 in 4Q11
2 On Non-GAAP basis which excludes the impact related to the convertible bond fair value adjustment
3 4Q11 operating expenses includes $8.5 million provision for advanced payment associated with long-term supply contract ; 2Q11 operating expenses
includes $5 million for management severance.
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Balance Sheet
Days Inventory Outstanding
80
53
60
150
63
Days
Days
60
59
69
Days Sales Outstanding
40
20
100
126
80
82
83
77
50
0
0
3Q11 4Q11 1Q12 2Q12 3Q12
3Q11 4Q11 1Q12 2Q12 3Q12
•Total Cash of US $256 million
•Net debt to equity of 89.3%
Notes:
1 Excludes restricted cash.
2 All non-GAAP numbers exclude the accounting impact from the adoption of ASC 815-40, which relates to the accounting treatment for the convertible
bonds. Non-GAAP financial results for prior quarters have been adjusted for comparability with the current quarter.
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Recent Milestones
•
New president and chief technology officer appointed
•
QoQ shipment growth
•
Continued Non-Poly processing cost reduction
•
Shipments to China and US gaining momentum
•
Synergies with Hanwha Q.CELLS begin
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Signs of Industry Rationalization
•
•
•
•
A number of company failures reduce manufacturing capacity
Chinese banks tightening credit standards squeezing out marginal
players
Signs that leading competitors will take a more rational approach to
pricing and sacrifice volume for profitability
Momentum developing in important new growth markets, particularly
China and Japan
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Q.CELLS Acquisition Provides Synergies
•
Enhanced scale with combined capacity of 2.3GW
•
Strong brand, high quality products and excellent technology
•
Potential to price at a premium
•
Improved leverage with suppliers
•
Expertise in downstream activities and an important source of cells
in the face of duties in the US and maybe Europe
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Three Paths to Growth
Volume Based Growth
•
Targeting the utility industry for higher sales volume
Economies of scale leading to better bargaining power & cost
competitiveness
Value Based Growth
•
Traditional PV products are quickly becoming low-cost commodities.
We will achieve growth by selling higher value products to residential
and commercial markets with a strong brand.
Downstream Growth
•
Create value downstream by bundling balance of system
components, reach customers through a variety of channels and
expand our project development, EPC and O&M business.
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R&D for high quality/high performance
Development Item
New Product
launching
Description
• New product (E-Star plus) will be launched in 2013
- Light weight, high endurance, maximized efficiency
- Cost competitiveness via increased power output per module
• Anti PID product will be launched in 2013
Anti PID
- Completed TUV certificate
- Develop optimized BOM for Anti PID module for long-term reliability
Extreme
Environment
• Anti-salt module : Sales of modules suitable for sea shore started
- Supplied to Japan. Total of 80MW will be supplied to Marubeni project
• Desert module : Under development for Middle East market
• High efficiency wafer (Better wafer) development
Higher Efficiency
• Increase module output by wafer sorting improvement
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New Market Potential
China Market
Japan Market
South Africa Market
USA Market
•
•
•
•
•
•
•
•
Market could reach 8GW in 2013
HSOL sets conservative shipment target
of 150MW in 2013
Estimated market size of over 3GW in 2013
HSOL estimates shipments at 100MW+ in 2013
Signed 155MW deal for 1H 2013 delivery
The company’s and South Africa’s largest
solar deal to date
Estimated market size of 4GW in 2013
2013 HSOL estimated shipments can more
than triple to 250MW or higher.
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Market Guidance
Shipments
825~850MW
FY
2012
Non-poly Processing Cost by yr.-end
Capital Expenditure
<$0.50W
$100 million
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Thank You