Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

YAGEO Call Transcript 2025

Feb 13, 2025

52008_rns_2025-02-13_8e46c1b0-1508-4e3b-a223-299daeda5428.pdf

Call Transcript

Open in viewer

Opens in your device viewer

==> picture [221 x 66] intentionally omitted <==

4Q2024 Earning Conference

YAGEO Corporation

2025/02/27

1

Copyright[©] 2024 YAGEO Group All Rights Reserved

Disclaimer

==> picture [198 x 67] intentionally omitted <==

This presentation has been prepared by YAGEO Corporation (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase securities in a proposed offering should be made solely on the basis of the information contained in the offering circular published in relation to such proposed offering, if any.

The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

2

Copyright[©] 2024 YAGEO Group All Rights Reserved

Agenda

==> picture [198 x 67] intentionally omitted <==

⚫ 4Q2024 and Full Year Financial Results

⚫ 4Q2024 Revenue Breakdown

⚫ 1Q2025 Guidance and Business Outlook

⚫ Q&A

3

Copyright[©] 2024 YAGEO Group All Rights Reserved

4Q2024 Financial Overview

==> picture [198 x 67] intentionally omitted <==

Amount in NT$ Million

==> picture [382 x 244] intentionally omitted <==

----- Start of picture text -----

Net Sales Gross Margin
30,006 33.2%
[QoQ: -5.5% | YoY: +9.7%] [QoQ: -2.0ppts | YoY: -1.3ppts]
Operating Margin EBITDA Margin
17.7% 25.0%
[QoQ: -3.2ppts | YoY: -0.8ppts]-3.2ppts | YoY: -0.8ppts]| YoY: -0.8ppts]-0.8ppts]] [QoQ: -3.3ppts | YoY: -1.4ppts]-3.3ppts | YoY: -1.4ppts]| YoY: -1.4ppts]-1.4ppts]]
----- End of picture text -----

==> picture [383 x 243] intentionally omitted <==

----- Start of picture text -----

Operating Margin EBITDA Margin
17.7% 25.0%
[QoQ: -3.2ppts | YoY: -0.8ppts]-3.2ppts | YoY: -0.8ppts]| YoY: -0.8ppts]-0.8ppts]] [QoQ: -3.3ppts | YoY: -1.4ppts]-3.3ppts | YoY: -1.4ppts]| YoY: -1.4ppts]-1.4ppts]]
Net Income EPS
3,688 7.10
[QoQ: -35.1% | YoY: -22.4%] [QoQ: -35.5% | YoY: -34.7%]
----- End of picture text -----

==> picture [33 x 372] intentionally omitted <==

  • Q4 results were in line with our expectation and guidance

  • Net Sales was lower QoQ due to seasonality but better than historical pattern

  • Gross Margin was lower mainly from seasonal lower sales and product mix

  • Q4 EPS included a one-time tax impact of 2.36 NTD per share (Q4 EPS 9.46 per share excluding one-time impact)

4

Copyright[©] 2024 YAGEO Group All Rights Reserved

FY 2024 Financial Overview

==> picture [198 x 67] intentionally omitted <==

Amount in NT$ Million

==> picture [383 x 374] intentionally omitted <==

----- Start of picture text -----

Net Sales Gross Margin
121,667 34.4%
[YoY: +13.1%] [YoY: +0.9ppts]
Operating Margin EBITDA Margin
19.2% 26.8%
[YoY: +0.2ppts] [YoY: +0.1ppts]
Net Income EPS
19,487 38.13
[YoY: +11.2%] [YoY: +9.7%]
----- End of picture text -----

==> picture [33 x 372] intentionally omitted <==

  • Double digit FY growth fueled by Telemecanique acquisition, AI (Infra and Edge), and EV in China

  • Gross Margin +0.9ppts from a combination of volume growth and favorable product mix

• FY EPS included a one-time tax impact of 2.36 NTD per share (FY EPS 40.49 per share excluding one-time impact)

5

Copyright[©] 2024 YAGEO Group All Rights Reserved

4Q2024 Sales Breakdown

By Product

==> picture [319 x 207] intentionally omitted <==

By Segment

==> picture [332 x 210] intentionally omitted <==

==> picture [33 x 471] intentionally omitted <==

==> picture [198 x 67] intentionally omitted <==

  • Higher AI content demand driving growth on Tantalum and Resistor

  • Magnetics business is flat as EMEA recovery has yet to gain momentum

  • AI (Infra and Edge) driving strong growth on both Computing & ESs and Consumer segments

  • Industrial continues to face headwinds in Americas and EMEA

  • Modest growth in Automotive with China offsetting Americas and EMEA

6

Copyright[©] 2024 YAGEO Group All Rights Reserved

4Q2024 Sales Breakdown

By Region

==> picture [314 x 207] intentionally omitted <==

By Channel

==> picture [322 x 207] intentionally omitted <==

==> picture [33 x 471] intentionally omitted <==

==> picture [198 x 67] intentionally omitted <==

  • AI demand mostly from customers in Asia and US

  • EV is an additional growth engine for China

  • Weak macroeconomic environment in Europe

  • De-stocking continues at Distributors with trade inventory now at 6 months (improved 18% YoY)

  • Direct sales mix lower due to automotive segment customers

7

Copyright[©] 2024 YAGEO Group All Rights Reserved

==> picture [198 x 67] intentionally omitted <==

4Q2024 Financial Flexibility Highlight

==> picture [33 x 471] intentionally omitted <==

  • Free Cash Flow (NTD Ms) Stable and sustained cash generation from:

    1. Strong and profitable business growth

    2. Continued reduction of inventory levels

  • Continued focus on reducing leverage to provide financial flexibility and capture future growth opportunities

Net Financial Debt / LTM EBITDA

8

Copyright[©] 2024 YAGEO Group All Rights Reserved

==> picture [198 x 67] intentionally omitted <==

Snapshot of Shibaura Electronics' Strategic Rationale

==> picture [62 x 454] intentionally omitted <==

Basic Information:

Tokyo Stock Exchange (TSE) Ticker: 6957.T FY23*: Revenue JPY32B (~224M USD); GM 28.0%; OPM 15.8%

Revenue Mix: NTC Thermistor 100% (Home Appliance 44%; Auto 38%) Revenue by Region : Japan 60%; Rest of Asia 34%; Europe 4%; America 2% TOB Price: JPY4,300 (Premium: 36.94% vs February 4th closing price)

Strategic Rationale:

  • 1) Enhance portfolio and capture opportunities in key segments with better total solution to customers

  • 2) Accelerate Shibaura’s growth via YAGEO’s global distribution and customer network

  • 3) Complement YAGEO’s existing sensor platform

  • 4) Provide resources for R&D and production expansion especially in Japan

Timeline:

2025/02/05: Announcement of TOB

2025/05/07: Expected Commencement of TOB 3Q2025: Expected closing of the TOB

* Based on Shibaura’s FY23 annual report

9

Copyright[©] 2024 YAGEO Group All Rights Reserved

1Q2025 Guidance and Business Outlook

Net Sales Flat vs Q4

Gross Mar in g Increase 1.5 to 3 Percentage Point QoQ

O eratin Mar in p g g Increase 1.5 to 3 Percentage Point QoQ

==> picture [44 x 194] intentionally omitted <==

  • Solid booking and backlog to support Q1 Net Sales Guidance

  • Organic YoY sales growth

  • AI and China EV momentum remains strong

  • GM expansion driven by segment mix with shipments to AI customers

==> picture [198 x 67] intentionally omitted <==

10

Copyright[©] 2024 YAGEO Group All Rights Reserved

==> picture [161 x 54] intentionally omitted <==

APPENDIX

11

Copyright[©] 2024 YAGEO Group All Rights Reserved

4Q2024 Income Statement

==> picture [161 x 54] intentionally omitted <==

YAGEO Consolidation (reviewed)

YAGEO Consolidation (reviewed)
Net Sales
Cost of Sales
Gross Margin
Operating Expenses
Operating Profit
Non-operating Items
Income Before Tax
Income Tax
Net Income
Noncontrolling Interests
Net Income (attributable to the parent)
EPS (NT$ Dollar)
EBITDA		 Amount
%
30,006
100.0
(20,053)
(66.8)
9,953
33.2
(4,650)
(15.5)
5,304
17.7
883
2.9
6,187
20.6
(2,499)
(8.3)
3,688
12.3
(42)
(0.1)
3,646
12.2
7.10
7,515
25.0
4Q24		 Amount
%
31,738
100.0
(20,560)
(64.8)
11,178
35.2
(4,542)
(14.3)
6,636
20.9
556
1.8
7,192
22.7
(1,508)
(4.8)
5,683
17.9
(34)
(0.1)
5,649
17.8
11.01
8,995
28.3
3Q24		 Q-Q
Change %
(5.5)
(2.5)
(2.0 ppts)
(1.2ppts)
(3.2 ppts)
1.2ppts
(2.0 ppts)
(3.6ppts)
(5.6 ppts)
(0.0ppts)
(5.6ppts)
(35.5)
(3.3ppts)		 Amount in NT$ Million
Y-Y
Amount
%
Change %
27,361
100.0
9.7
(17,930)
(65.5)
11.8
9,431
34.5
(1.3 ppts)
(4,365)
(16.0)
0.5ppts
5,055
18.5
(0.8 ppts)
1,157
4.2
(1.3ppts)
6,212
22.7
(2.1 ppts)
(1,461)
(5.3)
(3.0ppts)
4,751
17.4
(5.1 ppts)
(18)
(0.1)
(0.1ppts)
4,734
17.3
(5.2ppts)
9.43
(24.7)
7,225
26.4
(1.4ppts)
4Q23

  • Q-Q/Y-Y Change of Net Sales, Cost of Sales , and EPS is in %, the rest of Changes is in percentage point.

  • The financial data is based on T-IFRS

12

Copyright[©] 2024 YAGEO Group All Rights Reserved

Full Year 2024 Income Statement

==> picture [161 x 54] intentionally omitted <==

AGEO Consolidation (reviewed)
Net Sales
Cost of Sales
Gross Margin
Operating Expenses
Operating Profit
Non-operating Items
Income Before Tax
Income Tax
Net Income
Noncontrolling Interests
Net Income (attributable to the parent)
EPS (NT$ Dollar)
EBITDA		 Amount
%
121,667
100.0
(79,864)
(65.6)
41,803
34.4
(18,418)
(15.1)
23,386
19.2
3,478
2.9
26,863
22.1
(7,377)
(6.1)
19,487
16.0
(130)
(0.1)
19,356
15.9
38.13
32,609
26.8
2024 FY		 Amount in NT$ Million
Y-Y
Amount
%
Change %
107,609
100.0
13.1
(71,583)
(66.5)
11.6
36,026
33.5
0.9 ppts
(15,596)
(14.5)
(0.6ppts)
20,430
19.0
0.2 ppts
3,927
3.6
(0.8ppts)
24,357
22.6
(0.6 ppts)
(6,838)
(6.4)
0.3ppts
17,519
16.3
(0.3 ppts)
(92)
(0.1)
(0.0ppts)
17,427
16.2
(0.3ppts)
34.74
9.7
28,759
26.7
0.1ppts
2023 FY

YAGEO Consolidation (reviewed)

  • Q-Q/Y-Y Change of Net Sales, Cost of Sales , and EPS is in %, the rest of Changes is in percentage point. - The financial data is based on T-IFRS

13

Copyright[©] 2024 YAGEO Group All Rights Reserved

4Q2024 Selected Balance Sheet Summary

==> picture [198 x 67] intentionally omitted <==

YAGEO Consolidation (reviewed)

Amount in NT$ Million

Cash and cash equivalents
Receivables
Inventory
Total Assets
Payables
Net financial debts
Total Liabilities
Total Equity
Total Liabilities & Equity
Net Financial Debt / Equity
Net Financial Debt / EBITDA
ROE (Quarterly)
ROE (Annualized)		 As of Dec 31
As of Sep 30
2024
2024		 Q-Q
As of Dec 31
Y-Y
Change %
2023
Change %
8.0
75,927
34.1
(3.8)
20,383
7.8
3.8
27,509
1.1
2.3
331,770
10.5
(3.1)
15,110
(0.7)
(42.7)
33,280
(60.9)
0.3
194,811
4.8
4.9
137,359
18.3
2.3
332,170
10.4
(6.7 ppts)
24.2%
(16.2 ppts)
(30.4 ppts)
115.7%
(75.8 ppts)
(1.5 ppts)
3.4%
(1.1 ppts)
(1.5 ppts)
13.5%
(0.6 ppts)
101,822
94,244
21,969
22,832
27,823
26,798
366,676
358,391
15,003
15,484
13,019
22,721
204,123
203,432
162,553
154,959
366,676
358,391
8.0%
14.7%
39.9%
70.3%
2.3%
3.8%
12.9%
14.4%
  • The financial data is based on T-IFRS

14

Copyright[©] 2024 YAGEO Group All Rights Reserved

==> picture [550 x 183] intentionally omitted <==

謝謝你! Thank you!

==> picture [23 x 22] intentionally omitted <==

==> picture [25 x 26] intentionally omitted <==

==> picture [37 x 32] intentionally omitted <==

WWW.YAGEO.COM

15

Copyright[©] 2024 YAGEO Group All Rights Reserved

More from YAGEO

Director's Dealing 2026
Jun 1
Director's Dealing 2026
Jun 1
Notice of Dividend Amount 2026
May 30
Notice of Dividend Amount 2026
May 27
Declaration of Voting Results & Voting Rights Announcements 2026
May 27
Investor Presentation 2026
May 27
Regulatory Filings 2026
May 27
Investor Presentation 2026
May 27
Investor Presentation 2026
May 27
Investor Presentation 2026
May 27
View all filings →