It's about AAC Technologies Holdings, Inc, the global leading supplier of integrated micro-component solutions for communication and IT consumer electronics, providing clients with innovative solution technologies ranging from acoustics to haptics vibrators, radio frequency (RF) and optics.
2. STORY FLOW
ACC Technologies Holdings
Background of industry
Challenges in the market
Introduction of AAC
Technologies
Financial Challenges
1 2
3 4
Potential areas to enter5 Outlook for the Future6
9. Listed on HK
stock; qualified by
Sony-Ericson
2005
单击此处添加标题
RF solution:
Antenna, NFC,
WP
2013
Shipment for
Samsung
2011
Qualified by
HTC& Google
2008
2010
Automated
production for
speaker and
earpiece
2002
Mass production
of multi-
functional device
1998
1993
Transducers
for
Motorola
Company
founded
11. 01
02
Decreasing sales income in major business
Declining market growth in mature markets
Newly electronic products introduced were highly depended on
replacement purchase.
Challenges of AAC Company
Sales Income in
Billion Dollars
6.4
6
2013
2014
12. 12
6.3% More
debt
ROA
44%
ROE
25%
7.4%
A C C T e c h n o l o g i e s
Gross Profit
growth of 6.3%
Average 3
previous years:
33%
TOP LINE
Average 3
previous years:
65% and 32%
resp.
Profitability
A/R and inventories
increasing.
More debt
CASH
2014: 7.4%
2015 and 2016:
6.8%
6.3%
Respectively
CHINA’S grow th
Financial Situation/Challenges - 2014
13. 单击编辑标题
How to face the challenges?
Smartphone
Tablets
Wearbles
Acoustics
Antenna/RF
Optics
Sensor
Accessories
etc.
Product Line
Diversification
Focus on
Smartphone
Tablet
15. • In 2010,More portable
devices(smartphones
and tablets)
The increasing demand for
rechargeable batteries in
Asia(China, India, Indonesia)
Lithium-ion Batteries
• Strong economic growth,
increasing per capita income and
continued industrialization efforts
• Substituting MP3 players,
cameras and laptops
China being largest and
fastest growing market
Decreasing demand of
rechargeable batteries and less
revenue throughout the following
years.
16. Lithium-ion Batteries
Consumer
60.3%
Industrial
14.5%
Automotive
18.3%
Grid and Renewable Energy
Storage
6.9%
Consumer
23.9%
Industrial
8.5%
Automotive30.0%
Grid and
Renewable
Energy Storage
37.6%
Total LithiumPercent Revenue breakdown by application, global 2013 & 2020 forecast-ion battery
market Source: Frost & Sullivan
Investing in
lithium-ion
batteries
Searching for higher
growth potential
alternatives
DECISION
17. • second biggest MEMS
microphone supplier 13%
• supplier for the third type
microphones
• solution provider
• Goertek 7% $ 61,9 million
• BSE 5% $ 37,2 million
MEMS Technology: Microphones
AAC
Direct
competitors
Forecast a continuing growth $785M in 2013 to $1.65B by 2019
Main
client
• Apple & Sumsung
18. A promising
market in
semiconducto
r industry
• RF MEMS tech
academic research
→mass application areas
• Demand
higher signal quality for
thinner mobile phones
• Market
2014 -2018, CAGR 16.7%
expected
2018, $500 million expected
01
03
02
MEMS Technology: Radio frequency(RF)
19. Optics-Lens
Acquired Kaleido
Aquired ISQR in Japan
Collaboration with
sensor supply, eg
Omnivision
Strategic move:
• Camera lens cost=30% of the total cost of
the smart phone camera
• In 2014, the total market of lens industry is
about 3,300 Million and have been
predicted to be 7,500 million USD in 2020
Current player: Heptagon; Seiko
21. Outlook for the
Future
Patents Technology Barriers to
entry
Intensively filing
patents
Explore technologies
areas
Building High Barriers
to Entry
Non-acoustic 20% 2014 Non-acoustic 38% 2015 Non-acoustic >38% 2016…
OUTLOOK
22. Financials after Acquisition
TOP LINE RF contribution CASH
32.5%
Avg (3 years prior 2014):33%
7.8% lower
Healthier A/R
SUCCESSFUL!
38%
of total revenue