Wistron Corporation
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Wistron Corporation 2009 Annual Report translation Published Date: April 30, 2010 WorldReginfo - 48707a4a-2c47-47be-82af-f97d39736ff0 1. Name, Title and Contact Information for Company’s Spokesperson Spokesperson : Henry Lin Title : Chief Financial Officer Tel : 886-2-6616-9999 E-mail : [email protected] Acting Spokesperson : Stone Shih Title : Controller Tel : 886-2-6616-9999 E-mail : [email protected] 2. Address and Telephone Number of Company’s Registered Office and Headquarters Office Address Tel Wistron Corp. No.7, Hsin-An Rd., Hsinchu Science Park, 886-3-577-0707 (Registered office) Hsinchu, Taiwan, R.O.C. Wistron Corp. 21F, 88, Sec.1 ,Hsin Tai Wu Rd., Hsichih, 886-2-6616-9999 (Headquarters) Taipei Hsien 221, Taiwan, R.O.C. 3. The Address and Contact information for Wistron Shareholders Services Office Address : 7F, No.122, Tung Hua N. Road, Taipei, Taiwan, R.O.C. Tel : 886-2-6600-7998 E-mail : [email protected] 4. The Address and Contact information of Auditing CPA in 2009 Name : Chia-Hsin, Chang and Shu-Yu, Lin at KPMG Address : 68F, TAIPEI 101 TOWER, No.7, Sec.5, Xinyi Road, Taipei, 110, Taiwan, R.O.C. Tel : 886-2-8101-6666 Website : www.kpmg.com.tw 5. For more information about Wistron: www.wistron.com 6. For more information about Wistron GDRs: http://www.bourse.lu http://www.LondonStockExchange.com This English version Annual Report is a summary translation of the Chinese version Wistron Annual Report. This document is created for the sole purpose of the convenience of its readers and is not an official document to represent the financial position of the company per Taiwan laws. Wistron Corporation does not guarantee the accuracy of this translated document. Readers wishing to view the official audited version of Wistron's financial reports can obtain a copy of the Wistron Annual Report (Chinese version) on the Wistron Corporation website (www.wistron.com). WorldReginfo - 48707a4a-2c47-47be-82af-f97d39736ff0 Wistron Corporation 2009 Annual Report translation INDEX 1. Letter to Shareholders .......................................................................................................4 2. Company Introduction 2.1 Quick facts ..................................................................................................................... 8 2.2 Business summary......................................................................................................... 8 2.3 Formation history ........................................................................................................... 9 2.4 Public listing ................................................................................................................... 9 2.5 Milestones .................................................................................................................... 10 2.6 Organization Structure ................................................................................................. 15 2.7 Products ....................................................................................................................... 18 2.8 Services ....................................................................................................................... 18 2.9 Board of Directors, Supervisors and Key Managers background information.............. 20 2.10 Information related to the compensations for directors, president and vice presidents ........................................................................................................... 26 2.11 Labor Relations .......................................................................................................... 27 3. Operational Highlights 3.1 Key Accounts in the Past Two Years ............................................................................ 30 3.2 Production Value in the Most Recent Two Years.......................................................... 31 3.3 The Sales Value in the Most Recent Two Years........................................................... 31 3.4 Taiwan Employee Data during the Past Two Years ...................................................... 31 3.5 Environmental Protection Measures ............................................................................ 32 4. Company Shares and Fund Raising 4.1 Capital and Shares....................................................................................................... 36 4.2 GDR Issuance .............................................................................................................. 40 4.3 Employee Stock Options .............................................................................................. 41 4.4 Implementation of the Company’s Fund Raising and Utilization Plan .......................... 41 5. Financial Standing 5.1 Most Recent 5-Year Concise Financial Information ..................................................... 44 5.2 Most Recent 5-Year Financial Analysis ........................................................................ 46 5.3 Audit Committee’s Report............................................................................................. 48 6. Financial analysis 6.1 2009 vs. 2008 financial analysis................................................................................... 50 6.2 2009 vs. 2008 operating result analysis ....................................................................... 51 6.3 Cash flow analysis........................................................................................................ 52 6.4 Significant capitalized expenditure analysis ................................................................. 53 WorldReginfo - 48707a4a-2c47-47be-82af-f97d39736ff0 Wistron Corporation 2009 Annual Report translation 6.5 Long-term investment objective, main reason for gain or loss, improvement plan and coming year investment plan......................................................................... 54 6.6 Risk Management ........................................................................................................ 54 7. Enforcement of Corporate Governance......................................................................... 60 8. Financial Statements Consolidated With Subsidiaries Audited by CPA of 2009 ...... F-1 8.1 Independent auditors’ report of the consolidated financial statements of Wistron Corporation for the years ended December 31, 2009 ................................... F-2 8.2 Audited consolidated financial statements of Wistron Corporation as of and for the years ended December 31, 2009 .................................................................... F-4 WorldReginfo - 48707a4a-2c47-47be-82af-f97d39736ff0 1. Letter to Shareholders WorldReginfo - 48707a4a-2c47-47be-82af-f97d39736ff0 Wistron Corporation 2009 Annual Report translation 4 1 Dear Shareholders, Letter to Shareholders It is my privilege to announce that Wistron had another great year for 2009. Although challenged by global financial crises and economy recession, Wistron continued to deliver outstanding financial performance. Both revenue and profits have been record-setting and exceeded targeted goals. On behalf of all employees of Wistron, I cordially appreciate all our shareholders. Your long term support inspires us to excel. Financial and Operation Results In 2009, Wistron’s revenue reached NT$523.1 billion and operating profit was NT$6.72 billion. The profit before tax reached NT$11.14 billion and net profit was NT$9.13 billion. For the consolidated income statement, Wistron’s consolidated revenue reached NT$546.7 billion and consolidated operating profit was NT$10.75 billion. The consolidated profit before tax was NT$11.5 billion and consolidated net profit was NT$9.13 billion. Meanwhile, the basic earning per share reached NT$5.23. To overcome severe competition in our industry and the economic recession resulting from the global financial crises, Wistron focused on cash flow management, account receivable collection, and inventory controls in early 2009. When the economy started to show the beginnings of recovery in the middle of last year, we endeavored to improve operational efficiency and cost controls to boost overall productivity. Thanks to the success of those strategies, our consolidated gross margin remained above 5% in spite of the challenging environments. We will continue our efforts in monitoring expenditures while implementing new technology invented through our own R&D to reduce any adverse impact from financial crises. With regards of our customer and business, we continued to grow our market share among existing clients while exploiting new opportunities from new customers. Although the demands for enterprise applications were substantially curtailed due to recession, we still managed to maintain steady growth by shipping more consumer electronic related products to our major clients. These achievements are attributed to our superior performance in new product developments (e.g., 3D and related technology) which resulted in more orders last year. Business and Operation Focus As the economy continues to show evidence of recovery, we will increase our investments to expand our business lines, strengthen our risk managements and internal controls, and improve operations in order to produce better quality products to generate more sustained growth and profits. For 2010, our objectives are value-added innovation, value-added services, and management optimization. Value-added innovation is to create innovative business models in order to assist our clients