台灣國際航電 (GRMN) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Garmin Ltd. Fourth Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

早安，歡迎參加 Garmin Ltd. 2023 年第四季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。

I would now like to turn the call over to Teri Seck, Director of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係總監 Teri Seck。請繼續。

Good morning. We would like to welcome you to Garmin Ltd. Fourth Quarter 2023 Earnings Call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcripts will also be available on our website.

早安.歡迎您參加 Garmin Ltd. 2023 年第四季財報電話會議。請注意，收益新聞稿和相關投影片可在網路上的 Garmin 投資者關係網站 www.garmin.com/stock 上取得。我們的網站上也將提供網路廣播和相關文字記錄的存檔。

This earnings call includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our future financial position, revenue segment growth rate, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introduction, future demand for our products and plans and objectives are forward-looking statements.

本次財報電話會議包括有關 Garmin Ltd. 及其業務的預測和其他前瞻性聲明。任何有關我們未來財務狀況、收入部門成長率、收益、毛利率、營業利潤、未來股息或股票回購、市場份額、產品介紹、我們產品的未來需求以及計劃和目標的陳述均為前瞻性陳述。

The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.

本次財報電話會議中討論的前瞻性事件和情況可能不會發生，並且由於影響 Garmin 的風險因素，實際結果可能會出現重大差異。有關這些風險因素的資訊包含在我們向美國證券交易委員會提交的 10-K 表中。

Presenting on behalf of Garmin Ltd. this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

今天早上代表 Garmin Ltd. 出席會議的是總裁兼執行長 Cliff Pemble；財務長兼財務長 Doug Boessen。

At this time, I would like to turn the call over to Cliff Pemble.

此時，我想將電話轉給 Cliff Pemble。

Thank you, Teri, and good morning, everyone. As announced earlier today, Garmin delivered outstanding results in the fourth quarter with strong growth in consolidated revenue and profit.

謝謝你，泰瑞，大家早安。正如今天早些時候宣布的那樣，Garmin 在第四季度取得了出色的業績，綜合收入和利潤強勁增長。

Consolidated revenue increased 13% to nearly $1.5 billion, representing a new fourth quarter record with three business segments delivering double-digit growth. Gross and operating margins expanded year-over-year to 58% and 23%, respectively, resulting in operating income of $340 million, up 27% for the year. This resulted in pro forma EPS of $1.72, up 27% over the prior year.

合併收入成長 13%，達到近 15 億美元，創下第四季新紀錄，三個業務部門實現兩位數成長。毛利率和營業利潤率年增至 58% 和 23%，營業收入達 3.4 億美元，較去年同期成長 27%。預計每股收益為 1.72 美元，比上年增長 27%。

We entered 2023 cautiously optimistic, but as the year continued, we experienced better-than-expected momentum in multiple segments, which resulted in a record-breaking year. Consolidated revenue increased 8% to $5.2 billion, which is a new annual record. Operating income increased 6% to nearly $1.1 billion, and operating margin came in at 21%.

我們對 2023 年持謹慎樂觀的態度，但隨著這一年的繼續，我們在多個領域都經歷了好於預期的勢頭，從而創造了破紀錄的一年。綜合營收成長 8%，達到 52 億美元，創下年度新紀錄。營業收入成長 6%，達到近 11 億美元，營業利益率為 21%。

During the year, component lead times and availability continued to normalize, while shipping bottlenecks eased. These factors, combined with healthy demand for our products, reduced inventory levels and boosted free cash flow to nearly $1.2 billion. We believe current inventory levels are appropriate and expect inventory will grow from this point forward at a rate that is roughly in line with sales.

年內，組件交貨時間和可用性繼續正常化，同時運輸瓶頸得到緩解。這些因素加上對我們產品的健康需求，降低了庫存水平，並將自由現金流增加至近 12 億美元。我們認為目前的庫存水準是合適的，並預期庫存將從現在開始以與銷售大致一致的速度成長。

Looking forward, we have a robust lineup of recently introduced products, and additional product launches are planned throughout the year. We anticipate 2024 consolidated revenue will increase approximately 10% to $5.75 billion.

展望未來，我們擁有近期推出的強大產品陣容，並計劃全年推出更多產品。我們預計 2024 年合併收入將成長約 10%，達到 57.5 億美元。

Our results and outlook for the year give us the confidence to propose an annual dividend of $3 per share, an $0.08 increase over the prior dividend amount, which will be considered by shareholders at the upcoming annual meeting. In addition, our Board of Directors recently approved a $300 million share repurchase program over the next 3 years.

我們今年的業績和展望使我們有信心提議每股 3 美元的年度股息，比之前的股息金額增加 0.08 美元，股東將在即將舉行的年度會議上審議這一股息。此外，我們的董事會最近批准了未來 3 年內價值 3 億美元的股票回購計畫。

Before moving on to the performance and outlook for each business segment, I want to mention the recognition we received recently from Forbes who ranked Garmin #2 on their list of Best Large Employers in America. We're honored to be recognized for creating a best-in-class workplace. Garmin associates are passionate about what we do, and we share a deep commitment to serving customers and each other.

在討論每個業務部門的表現和前景之前，我想提一下我們最近從《富比士》獲得的認可，《富比士》將 Garmin 在美國最佳大型雇主排行榜上排名第二。我們很榮幸因創建一流的工作場所而獲得認可。 Garmin 員工對我們的工作充滿熱情，我們共同致力於為客戶和彼此提供服務。

Moving next to segment highlights. Fitness revenue increased 21% for the year, with growth across all product categories, led by strong demand for our new running watches. Full year growth and operating margins were 33% and 17%, respectively, and operating income more than doubled to $232 million.

接下來是細分亮點。由於對我們的新跑步手錶的強勁需求，所有產品類別均實現成長，全年健身收入成長了 21%。全年成長率和營業利潤率分別為 33% 和 17%，營業收入增加了一倍多，達到 2.32 億美元。

At the recent Consumer Electronics Show, the Venu 3 was recognized with three awards, including best of innovation for outstanding engineering. With its rich wellness and fitness features, bright display and long battery life, the Venu 3 is indeed a best-in-class product.

在最近的消費電子展上，Venu 3 榮獲三項大獎，其中包括傑出工程最佳創新獎。憑藉其豐富的健康和健身功能、明亮的顯示器和超長的電池壽命，Venu 3 確實是一款一流的產品。

Looking ahead, we have a strong lineup of recently introduced running, cycling and wellness products and expect to launch additional products during the year to support growth. With this in mind, we expect fitness revenue will increase approximately 7% for the year.

展望未來，我們擁有近期推出的跑步、騎乘和健康產品的強大陣容，並預計在年內推出更多產品以支持成長。考慮到這一點，我們預計今年健身收入將成長約 7%。

Moving to outdoor. Revenue decreased 4% for the year, as solid performance in the second half of the year could not fully offset the weaker first half. Full year gross and operating margins were 63% and 30%, respectively, resulting in operating income of $515 million.

搬到室外。由於下半年的穩健表現未能完全抵銷上半年的疲軟表現，全年營收下降 4%。全年毛利率和營業利益率分別為 63% 和 30%，營業收入為 5.15 億美元。

During the fourth quarter, we expanded our lineup of underwater diving products with the introduction of the Descent G1 Solar-Ocean Edition, our first-ever product made with recycled ocean-bound plastics. We also launched the new Descent Mk3 dive watch and the Descent T2 transceiver with enhanced SubWave communication technology that enables diver-to-diver messaging and tank pressure monitoring on the wrist.

第四季度，我們推出了 Descent G1 Solar-Ocean Edition，擴大了我們的水下潛水產品陣容，這是我們第一款採用回收海洋塑膠製成的產品。我們還推出了新型 Descent Mk3 潛水錶和 Descent T2 收發器，它們採用增強型 SubWave 通訊技術，可實現潛水員之間的消息傳遞和手腕上的罐壓監測。

For over 2 decades, our eTrex series of handhelds have been an essential product for outdoor adventures. We recently launched the eTrex Solar, our first handheld GPS with solar charging technology. This new handheld can operate indefinitely using only the power harvested from the sun, which is a game changer for hikers, explorers and off-the-grid adventurers. Looking ahead, we expect that our strong outdoor product road map will result in revenue growth of 7% for the year.

二十多年來，我們的 eTrex 系列手持設備一直是戶外探險的必備產品。我們最近推出了 eTrex Solar，這是我們首款採用太陽能充電技術的手持 GPS。這款新型手持設備可以僅使用從太陽收集的能量無限期地運行，這對於徒步旅行者、探險家和離網冒險家來說是一個遊戲規則改變者。展望未來，我們預計我們強大的戶外產品路線圖將使今年的收入成長 7%。

Looking next at aviation. Revenue increased 7% for the year to $846 million, a new record driven by growth in OEM product categories. Full year gross and operating margins were 74% and 27%, respectively, resulting in operating income of $226 million, up 6% over the prior year.

接下來看航空業。受 OEM 產品類別成長推動，全年營收成長 7% 至 8.46 億美元，創下新紀錄。全年毛利率和營業利潤率分別為 74% 和 27%，營業收入為 2.26 億美元，比上年增長 6%。

During the quarter, our G3000 Integrated Flight Deck was selected by Embraer backed Eve Air Mobility for its electric vertical takeoff and landing aircraft. Eve Air Mobility joins a growing list of advanced air mobility companies who have selected our state-of-the-art cockpit systems.

本季度，巴西航空工業公司支援的 Eve Air Mobility 選擇我們的 G3000 整合式飛行甲板用於其電動垂直起降飛機。 Eve Air Mobility 加入了越來越多選擇我們先進駕駛艙系統的先進空中交通公司行列。

More recently, Garmin was ranked #1 in for the 20th consecutive year in Professional Pilot's 2024 avionics manufacturers products support survey. This accomplishment is the direct result of the strong commitment and hard work of our aviation team and the investments we have made in this business.

最近，Garmin 在 Professional Pilot 的 2024 年航空電子設備製造商產品支援調查中連續 20 年排名第一。這項成就是我們航空團隊的堅定承諾和辛勤工作以及我們在該業務上所做投資的直接結果。

In recent years, the aviation segment has experienced growth in OEM equipment categories driven by an increased interest in private air travel. We expect this trend to continue in 2024, as aircraft makers work through historically high back orders. On the other hand, we expect softer aftermarket sales in the coming year. With these things in mind, we expect aviation revenue to be approximately flat to the prior year.

近年來，由於人們對私人航空旅行的興趣日益濃厚，航空領域的 OEM 設備類別出現了增長。我們預計這一趨勢將在 2024 年持續下去，因為飛機製造商正在處理歷史最高的延期交貨訂單。另一方面，我們預計來年售後市場銷售將會疲軟。考慮到這些因素，我們預計航空收入將與前一年大致持平。

Turning next to the marine segment. Revenue increased 1% to $917 million, a new record, and included approximately $42 million of revenue from the recently acquired JL Audio business. Excluding JL Audio, revenue from marine decreased approximately 3% for the year.

接下來轉向海洋部分。營收成長 1%，達到 9.17 億美元，創下新紀錄，其中包括最近收購的 JL Audio 業務的約 4,200 萬美元收入。不包括 JL Audio 在內，今年來自船舶的收入下降了約 3%。

The marine market has slowed in 2023, with many players reporting double-digit revenue declines, but we outperformed by capturing market share from our competitors. Full year gross and operating margins were 54% and 20%, respectively, resulting in operating income of $179 million.

2023 年，船舶市場放緩，許多參與者報告收入出現兩位數下降，但我們透過從競爭對手手中奪取市場份額而表現出色。全年毛利率和營業利益率分別為 54% 和 20%，營業收入為 1.79 億美元。

During the fourth quarter, we launched the ECHOMAP Ultra 2 chartplotter series designed with premium sonar, mapping and wireless networking capability. We also launched the GSD 28 sonar with rapid return technology for higher-resolution imaging in deepwater. These innovations demonstrate why our marine segment is performing so well in an otherwise soft market.

在第四季度，我們推出了 ECHOMAP Ultra 2 海圖儀系列，具有高級聲納、測繪和無線網路功能。我們還推出了具有快速返回技術的 GSD 28 聲納，可在深水中進行更高解析度的成像。這些創新證明了為什麼我們的船舶部門在疲軟的市場中表現如此出色。

Looking forward, we expect marine revenue will increase approximately 10% for the year, with growth driven by JL Audio which is expected to be about 15% of total marine sales.

展望未來，我們預計今年船舶收入將成長約 10%，成長由 JL Audio 推動，預計將佔船舶總銷售額的 15% 左右。

Moving finally to the auto OEM segment. Revenue indeed 49% to $423 million, a new record, with growth primarily driven by increased shipments of domain controllers to BMW. Full year 2023 gross margin was 23%, and our losses narrowed progressively throughout the year, ending at just under $10 million for the fourth quarter.

最後轉向汽車 OEM 領域。營收確​​實成長了 49%，達到 4.23 億美元，創下新紀錄，成長主要是由寶馬域控制器出貨量的增加所推動的。 2023 年全年毛利率為 23%，全年虧損逐步收窄，第四季虧損額略低於 1,000 萬美元。

Many are wondering what lies beyond the BMW programs that are currently fueling our growth. I'm pleased to report that during 2023, we were awarded a new multiyear contract with another premium automaker to supply domain controllers on a global basis starting in 2027. This is projected to be the single largest award in the history of our auto OEM business, expanding our market share and customer base for domain controllers.

許多人想知道除了目前推動我們成長的寶馬計劃之外還有什麼。我很高興地報告，2023 年期間，我們與另一家優質汽車製造商簽訂了一份新的多年期合同，從2027 年開始在全球範圍內供應域控制器。這預計將是我們汽車OEM 業務歷史上最大的單一合同，擴大我們的網域控制器市場份額和客戶群。

We're also winning new business in other categories. We recently announced our motorcycle entertainment solution was selected by Yamaha Motors for certain motorcycles and smart scooters. This award adds to the already strong business we have with Yamaha across both 2-wheel and marine vehicles.

我們還在其他類別中贏得了新業務。我們最近宣布我們的摩托車娛樂解決方案被雅馬哈汽車公司選擇用於某些摩托車和智慧踏板車。該獎項進一步增強了我們與雅馬哈在兩輪和船用車輛方面本已強勁的業務。

I'm proud of the progress our auto OEM team has made in 2023. Looking ahead, we expect revenue to increase approximately 50% as deliveries of domain controllers continue to ramp up, and we expect to reach profitability on a quarterly basis in the back half of the year.

我為我們的汽車 OEM 團隊在 2023 年的進步感到自豪。展望未來，隨著網域控制器交付量的持續增加，我們預計收入將增長約 50%，並且我們預計將在後面實現季度盈利半年。

That concludes my remarks. Next, Doug will walk you through additional details on our financial results. Doug?

我的發言到此結束。接下來，道格將向您介紹有關我們財務業績的更多詳細資訊。道格？

Thanks, Cliff. Good morning, everyone. I'd like to begin by reviewing our fourth quarter and full year financial results, provide comments on the balance sheet, cash flow statement, taxes and 2024 guidance.

謝謝，克里夫。大家，早安。我想先回顧我們第四季度和全年的財務業績，對資產負債表、現金流量表、稅收和 2024 年指導提供評論。

We posted revenue of $1.483 billion for the fourth quarter, representing a 13% increase year-over-year. Gross margin was 58.3%, increased 130 basis points for the prior year quarter, primarily due to lower freight costs.

我們第四季的營收為 14.83 億美元，年增 13%。毛利率為 58.3%，比去年同期成長 130 個基點，主要是因為貨運成本下降。

Operating expense as a percentage of sales was 35.3%, 120 basis point decrease. Operating income was $340 million, 27% year-over-year increase. Operating margin was 23%, 250 basis point increase from the prior year.

營運費用佔銷售額的百分比為 35.3%，下降 120 個基點。營業收入為3.4億美元，年增27%。營業利益率為 23%，較上年增加 250 個基點。

Our GAAP EPS was $2.82. Pro forma EPS was $1.72, a 27% increase from the prior year pro forma EPS.

我們的 GAAP 每股收益為 2.82 美元。預計每股收益為 1.72 美元，比上年預計每股收益增長 27%。

Looking at the full year results. We posted revenue of $5.228 billion, representing an 8% increase year-over-year. Gross margin was 57.5%, a 20 basis point decrease from the prior year.

縱觀全年業績。我們公佈的營收為 52.28 億美元，年增 8%。毛利率為57.5%，較前一年下降20個基點。

Operating expense as a percentage of sales was 36.6%, comparable to the prior year. Operating income was $1.92 billion, 6% increase. Operating margin was 20.9%, a 20 basis point decrease from the prior year.

營運費用佔銷售額的百分比為 36.6%，與前一年持平。營業收入為 19.2 億美元，成長 6%。營業利益率為 20.9%，較上年下降 20 個基點。

Our GAAP EPS was $6.71. Pro forma EPS was of $5.59, a 9% increase from the prior year pro forma EPS.

我們的 GAAP 每股收益為 6.71 美元。預計每股收益為 5.59 美元，比上年預計每股收益增長 9%。

Next we look at our fourth quarter revenue by segment and geography. During the fourth quarter, we achieved record consolidated revenue and double-digit growth in 3 of our 5 segments.

接下來，我們按細分市場和地理查看第四季度的收入。第四季度，我們在 5 個細分市場中的 3 個領域實現了創紀錄的綜合收入和兩位數成長。

By geography, Americas, EMEA regions achieved double-digit growth of 13% and 19%, respectively, while the APAC region achieved growth of 4%. For the full year 2023, we achieved 8% consolidated growth, with record revenue in 3 of our 5 segments. By geography, we achieved 8% growth in Americas, 9% growth in EMEA and 5% growth in APAC.

按地理劃分，美洲、歐洲、中東和非洲地區分別實現了13%和19%的兩位數成長，而亞太地區則實現了4%的成長。 2023 年全年，我們實現了 8% 的綜合成長，5 個細分市場中的 3 個細分市場收入創紀錄。按地區劃分，我們在美洲實現了 8% 的成長，在歐洲、中東和非洲實現了 9% 的成長，在亞太地區實現了 5% 的成長。

Looking next, operating expenses. Fourth quarter operating expenses increased by $46 million or 10%. Research and development increased approximately $22 million year-over-year, primarily due to engineering personnel costs.

接下來是營運費用。第四季營運費用增加 4,600 萬美元，成長 10%。研究與開發年增約 2,200 萬美元，主要是由於工程人員成本。

SG&A increased approximately $21 million compared to the prior year quarter primarily due to increase in personnel-related expenses, in addition to the JL Audio business. Advertising expense increased approximately $4 million primarily due to higher co-op advertising.

SG&A 與去年同期相比增加了約 2,100 萬美元，主要是由於 JL Audio 業務之外的人員相關費用增加。廣告費用增加了約 400 萬美元，主要是由於合作廣告的增加。

A few highlights on the balance sheet, cash flow statement, dividends and share repurchase. We ended the quarter with cash and market securities of approximately $3.1 billion. Accounts receivable increased sequentially and year-over-year to $815 million due to seasonally strong sales in the fourth quarter.

資產負債表、現金流量表、股利和股票回購的一些亮點。本季末，我們擁有約 31 億美元的現金和市場證券。由於第四季季節性強勁的銷售，應收帳款環比和同比增長至 8.15 億美元。

Inventory balance decreased year-over-year to $1.3 billion to execute our strategy, to optimize inventory, reductions in our consumer inventory, more than offsetting the increase associated with our auto OEM business and the addition of JL Audio inventory.

庫存餘額年減至 13 億美元，以執行我們的策略、優化庫存、減少消費者庫存，遠遠抵消了與我們的汽車 OEM 業務和 JL Audio 庫存增加相關的成長。

During the fourth quarter 2023, we generated free cash flow of $470 million, $108 million increase from the prior year quarter, primarily due to lower use of cash purchases of inventory. For the full year 2023, we generated free cash flow of $1.183 billion, $639 million increase from the prior year, which was primarily due to a lower use of cash purchase of inventory, which we do not expect to repeat in 2024.

2023 年第四季度，我們產生了 4.7 億美元的自由現金流，比去年同期增加了 1.08 億美元，這主要是由於現金採購庫存的使用減少。 2023 年全年，我們產生了 11.83 億美元的自由現金流，比前一年增加了 6.39 億美元，這主要是由於現金購買庫存的使用減少，我們預計 2024 年不會再出現這種情況。

For 2023, our capital expenditures were $194 million, a $51 million decrease compared to the prior year. In 2024, we expect free cash flow to be approximately $750 million and approximately $375 million of capital expenditures. In 2024, we expect to continue to make investments in platforms for growth, clean facilities and IT-related projects.

2023 年，我們的資本支出為 1.94 億美元，比前一年減少 5,100 萬美元。到 2024 年，我們預計自由現金流約為 7.5 億美元，資本支出約為 3.75 億美元。 2024年，我們預計將繼續對成長平台、清潔設施和IT相關項目進行投資。

In 2023, we paid dividends of approximately $559 million. Also we announced our plan to seek shareholder approval for an increase in our annual dividend beginning with the June 2024 payment. Proposal is a cash dividend of $3 or $0.75 per share per quarter, which is a 3% increase from our current quarterly dividend of $0.73 per share.

2023 年，我們支付了約 5.59 億美元的股息。我們也宣布計劃尋求股東批准，從 2024 年 6 月開始支付年度股利。提案是每季現金股利 3 美元，即每股 0.75 美元，比我們目前每股 0.73 美元的季度股息增加 3%。

In 2023, we used $99 million of cash to purchase company shares, completing the previous $300 million share repurchase program. Our Board of Directors recently approved a $300 million share repurchase program, which is authorized through December 2026.

2023年，我們用9,900萬美元現金購買公司股票，完成了先前3億美元的股票回購計畫。我們的董事會最近批准了一項 3 億美元的股票回購計劃，授權期限截至 2026 年 12 月。

Our full year 2023 pro forma effective tax rate was 8.5% compared to 7.9% in the prior year. Fiscal 2024 pro forma effective tax rate is expected to be 15.5%, a 700 basis point increase over the prior year. Expected year-over-year increase in the 2024 pro forma tax rate is primarily due to increases in the combined Switzerland tax rates, impact of implementation of global minimum tax requirements.

我們 2023 年全年預計有效稅率為 8.5%，而前一年為 7.9%。 2024財年預計有效稅率預估為15.5%，較上年增加700個基點。預計 2024 年預計稅率將同比增加，主要是由於瑞士綜合稅率的增加以及實施全球最低稅率要求的影響。

Turning next to our full year guidance. We estimate revenue of approximately $5.75 billion, an increase of approximately 10% for the prior year. We expect gross margin to be approximately 56.5%, 100 basis point year-over-year decrease, which is primarily due to segment mix as auto OEM becomes a large percentage of our business.

接下來是我們的全年指導。我們預計營收約 57.5 億美元，比上年成長約 10%。我們預計毛利率約為 56.5%，年減 100 個基點，這主要是由於汽車 OEM 業務占我們業務的很大比例而導致的細分市場組合所致。

We expect an operating margin of approximately 20%, and the full year pro forma effective tax rate is expected to be approximately 15.5%. This results in expected pro forma earnings per share of approximately $5.40.

我們預計營業利潤率約為 20%，預計全年有效稅率約為 15.5%。這導致預計每股收益約為 5.40 美元。

This concludes our formal remarks. Julianne, can you please open the line for Q&A?

我們的正式發言到此結束。 Julianne，您可以開立問答線嗎？

(Operator Instructions) Our first question will come from Joseph Cardoso from JPMorgan.

（操作員指令）我們的第一個問題將來自摩根大通的約瑟夫·卡多佐。

First question here is on the auto OEM business. I guess, it's a two-parter. First, can you just expand? Obviously, auto OEM revenue expanded $150 million in '23. You're targeting to expand another $200 million in '24. As you think about your target for $800 million by '25, how are you thinking about your ability to overachieve on it given the current trajectory that you're on?

第一個問題是關於汽車OEM業務。我猜，這是兩個人的關係。首先，你能擴展一下嗎？顯然，2023 年汽車 OEM 收入增加了 1.5 億美元。您的目標是在 2024 年再擴大 2 億美元。當您考慮到 25 年實現 8 億美元的目標時，考慮到目前的發展軌跡，您如何看待自己超額實現這一目標的能力？

And then in a similar vein, with another year of ramping this business under your belt, how are you thinking about that margin profile as we approach this level of $800 million of revenue now? Particularly, is there any implications we should think of from the new customer win that you'll eventually on board? And then I have a follow-up.

同樣，在您又一年的努力下，當我們的收入接近 8 億美元的水平時，您如何看待利潤狀況？特別是，我們應該從您最終加入的新客戶中考慮到什麼影響嗎？然後我有一個後續行動。

Thanks. So on the first part of the question in terms of our ability to overachieve, what we've mentioned as a peak of about $800 million in 2025, I would say that we don't project that far out in terms of ability to under or overachieve. We're going by input from the manufacturers who provide us with their longer-term forecast, but those can go up and down as production dates near. So I think, in general, those are just reference points for people to consider.

謝謝。因此，關於我們超額完成能力的問題的第一部分，我們提到 2025 年將達到約 8 億美元的峰值，我想說的是，我們並沒有在低於或低於目標的能力方面預測那麼遠。超額完成。我們將參考向我們提供長期預測的製造商的意見，但隨著生產日期的臨近，這些預測可能會上下波動。所以我認為，總的來說，這些只是人們考慮的參考點。

In terms of the margin profile, we've been telling people that the margin in auto OEM is expected to go down as it has been doing. We do expect to be in that 20 -- mid-20% kind of range for the segment. That's our target, but it's based on a mix of very high volume, lower margin products as well as some lower volume, higher-margin products that are only speculative.

就利潤率而言，我們一直告訴人們，汽車原始設備製造商的利潤率預計將像以前一樣下降。我們確實預計該細分市場將處於 20% 至 20% 的範圍內。這是我們的目標，但它是基於大量、低利潤產品以及一些低產量、高利潤產品的組合，這些產品只是投機性的。

I got it. I guess, just a follow up there, and I'll use this as my second question. Just in terms of the new win that you're onboarding though, can you just talk about how you're thinking about the elevated cost that you need to ramp that new customer? Or are you not assuming that you'll need to onboard increased expenses there?

我得到了它。我想，只是跟進一下，我將用它作為我的第二個問題。就您即將獲得的新勝利而言，您能否談談您如何考慮增加新客戶所需的成本上升？或者您認為您需要在那裡承擔增加的費用？

I guess, that's kind of what I was getting at in terms of the margin profile on the auto OEM business. As you kind of think about bringing in that new customer, how are you thinking about the implications or headwinds to margins as you start to ramp with that new customer?

我想，這就是我對汽車 OEM 業務的利潤狀況的理解。當您考慮引入新客戶時，當您開始增加新客戶時，您如何考慮對利潤率的影響或不利因素？

So the most significant new win that we mentioned with the global automaker is a program that does not require a significant amount of R&D investment. So as a result, it will be lower intensity in terms of the investment that we will make in that to bring that customer on board.

因此，我們與全球汽車製造商提到的最重要的新勝利是一個不需要大量研發投資的計畫。因此，我們為吸引客戶而進行的投資強度將會降低。

Our next question comes from George Wang from Barclays.

我們的下一個問題來自巴克萊銀行的喬治王。

Congrats on the quarter. Just two quick ones. Firstly, just in terms of the capital return, nice to see additional $300 million for share authorization. Just curious, kind of any additional color you can share in terms of the cadence. Do you guys plan to front-load some of the buyback near term or kind of more evenly spread? So just kind of try to gather any possible additional color, so beyond this kind of over 3 years.

恭喜本季。就兩個快的。首先，就資本回報而言，很高興看到額外3億美元的股份授權。只是好奇，您可以在節奏方面分享任何其他顏色。你們計劃在近期提前進行一些回購還是更均勻地進行回購？所以嘗試收集任何可能的額外顏色，這樣就超過了 3 年。

Yes. Thanks, George. Yes, we just completed our previous $300 million authorization, and the Board authorized an additional $300 million over the next 3 years. So that cadence of acquisitions will be just based upon the market conditions, business conditions at that point in time.

是的。謝謝，喬治。是的，我們剛完成了先前 3 億美元的授權，董事會在未來 3 年內額外授權了 3 億美元。因此，收購的節奏將根據當時的市場狀況和業務狀況而定。

Okay. Great. Just a kind of follow-up in terms of the business. It's nice to see revenue kind of approaching 10% growth year-over-year, obviously partially aided by the auto OEM business. So my question is really kind of as you sort of project for FY '24 by segment versus 3 months back, any major sort of incremental data point you kind of want to share from any of the segments, whether it's the fitness or the outdoor? Just curious if anything has changed to the theory over the last 3 months.

好的。偉大的。只是業務方面的一種跟進。很高興看到營收年增接近 10%，這顯然在一定程度上得益於汽車 OEM 業務。所以我的問題是，當你按細分市場對 24 財年進行專案時，與 3 個月前相比，你想從任何細分市場分享任何主要的增量數據點，無論是健身還是戶外？只是好奇過去三個月理論是否改變了。

Yes. George, I think we did demonstrate some good momentum in Q4 and really in the back half of all of 2023 in both outdoor and fitness. So as a result, we've become incrementally more positive on those two, especially considering our current product lineup and the road map of products that we have out in front of us.

是的。喬治，我認為我們確實在第四季度以及 2023 年下半年在戶外和健身方面表現出了一些良好的勢頭。因此，我們對這兩者變得越來越積極，特別是考慮到我們目前的產品陣容和我們面前的產品路線圖。

Our next question comes from David MacGregor from Longbow Research.

我們的下一個問題來自 Longbow Research 的 David MacGregor。

Great quarter. Congratulations. I wanted to just start off by asking you for your impressions on kind of the fourth quarter holiday sales season, what you were seeing from the consumer, what patterns you were noticing, how people were responding to different price points. I mean, any color you can provide on the state of the consumer and what you took away from kind of the fourth quarter?

很棒的季度。恭喜。我想先詢問您對第四季度假日銷售季的印象，您從消費者那裡看到了什麼，您注意到了什麼模式，人們對不同價格點的反應如何。我的意思是，您可以提供有關消費者狀況的任何資訊以及您從第四季度中獲得的資訊嗎？

I would say generally that the response from the consumer side was better than we expected and actually seem quite strong. Our sell-through appeared to be very, very good and, of course, drove incremental production that we did in the third and fourth quarter to supply/demand.

我想說的是，消費者方面的反應比我們預期的要好，而且實際上看起來相當強烈。我們的銷售量似乎非常非常好，當然，推動了我們在第三和第四季的供需增量生產。

And any kind of competitive dimension here we could color in for us?

我們可以為我們呈現任何類型的競爭維度嗎？

Well, I -- probably not a lot to say other than the remarks we made, particularly in marine, where we're taking some market share. It is probably also true that we're taking market share in wearables as well. But our product lines and our position in the market is much different because of the unique nature of all the products that we have in that market.

好吧，除了我們發表的言論之外，我可能沒什麼好說的，特別是在海洋領域，我們正在佔據一些市場份額。我們也可能正在搶佔穿戴裝置的市場份額。但由於我們在該市場上擁有的所有產品的獨特性，我們的產品線和我們在市場中的地位有很大不同。

Yes. And you're not seeing any mix down or any dynamic like that.

是的。你沒有看到任何混音或任何類似的動態。

Actually, I would say that the response to our higher-end products in the recent quarter or 2, the back half of 2023, has been very good.

實際上，我想說，我們的高端產品在最近第一季或 2023 年下半年的第二季的反應非常好。

Okay. As a follow-up, I just wanted to ask on the automotive business. You noted that you expect the business to turn profitable in the second half. How are you thinking about an end of year exit run rate on segment margins?

好的。作為後續，我只是想問一下汽車業務。您指出，您預計該業務將在下半年轉虧為盈。您如何看待年終退出運行率對細分市場利潤的影響？

Well, we've guided people to think about gross margin in the range of mid- to upper teens and operating margins in the mid-single digits.

嗯，我們引導人們考慮中位數到高位數的毛利率和中個位數的營業利潤率。

That's for the full year, right?

這是全年的吧？

No. That's really on a run rate basis. I think for the full year, we mentioned in the remarks that we expect to exit the back half profitable on a quarterly basis. We don't expect 2024 to be profitable as a full year, but then we'll work into 2025 on that basis.

不。這實際上是基於運行率。我認為對於全年來說，我們在發言中提到，我們預計下半年將按季度實現盈利。我們預計 2024 年全年不會實現盈利，但我們將在此基礎上進入 2025 年。

Our next question comes from Jordan Lyonnais from Bank of America.

我們的下一個問題來自美國銀行的喬丹·里昂。

Would you guys be able to give more color on what drove the lower revenue in aviation aftermarket?

你們能更詳細地解釋一下導致航空售後市場收入下降的原因嗎？

Yes. I think aviation aftermarket, Jordan, is an interesting market. Because it's a very narrow distribution channel through specialty installers, it doesn't have the same kind of retail dynamic. And we did come off of 2022 and into 2023 with significant supply chain challenges, which drove behaviors on the part of those dealers and installers to have more inventory on their shelves.

是的。我認為約旦航空售後市場是一個有趣的市場。因為它是透過專業安裝人員進行的非常狹窄的分銷管道，所以它不具有相同的零售活力。從 2022 年到 2023 年，我們確實面臨著巨大的供應鏈挑戰，這促使經銷商和安裝商的行為增加了貨架上的庫存。

During 2023, we saw them essentially burning that off as they had installs come in, and they were working on aircraft. And we expect some of that to continue also in 2024.

2023 年期間，我們看到他們基本上把這些都燒掉了，因為他們已經安裝了設備，而且他們正在飛機上工作。我們預計這種情況在 2024 年也將持續下去。

Our next question comes from Erik Woodring from Morgan Stanley.

我們的下一個問題來自摩根士丹利的艾瑞克‧伍德林。

Awesome. Maybe my first question for you, Cliff, is a bit of like a philosophical question, which is if we look back historically at kind of the Garmin story, it was always about kind of premiumization. Obviously, amazing gross margins that generally have trended higher over time. Your strongest growing segment is now also going to be your largest -- sorry, your lowest gross margin segment.

驚人的。也許我要問你的第一個問題，克里夫，有點像一個哲學問題，如果我們回顧歷史，回顧一下 Garmin 的故事，它總是與高端化有關。顯然，令人驚嘆的毛利率通常隨著時間的推移呈上升趨勢。你成長最快的部分現在也將是你最大的——抱歉，是你毛利率最低的部分。

So how should we think about the -- what the model really is now? Is it more about maximizing operating profit dollars as opposed to margins? Can you just help us think through how that change is taking place now that you have this really kind of exploding auto OEM opportunity? And then I have a follow-up.

那我們該如何思考現在的模型到底是什麼呢？是否更多的是為了最大化營業利潤而不是利潤率？既然您擁有這種真正爆炸性的汽車原始設備製造商機會，您能否幫助我們思考這種變化是如何發生的？然後我有一個後續行動。

Yes. I would say, Erik, that there's probably no one mold to put Garmin in when it comes to the breadth and depth of our businesses. We still and always will serve those premium niche markets in our traditional markets. And we see new opportunities like auto OEM as a way to leverage the strength we have in vertical integration, our smart factories, our supply chain capability and our ability to serve customers, which has been very attractive.

是的。 Erik，我想說，就我們業務的廣度和深度而言，可能沒有任何一種模式可以將 Garmin 放入其中。我們仍然並將始終為傳統市場中的優質利基市場提供服務。我們看到像汽車原始設備製造商這樣的新機遇，作為利用我們在垂直整合、智慧工廠、供應鏈能力和服務客戶能力方面的優勢的一種方式，這非常有吸引力。

So at the end of the day, it's profit dollars that we can put in the bank. And going about doing that, we simply try to play to all the strengths that we have.

所以歸根究底，我們可以把利潤存入銀行。為了做到這一點，我們只是嘗試發揮我們所擁有的所有優勢。

Okay, okay. That's really helpful. And then maybe the second question is over the last few years, we've seen a bit of a deviation or gap, somewhat unusually between the outdoor and fitness businesses, somewhat kind of reflective of kind of key product launches. For 2024, obviously, you've kind of guided those businesses back to tracking in line with one another.

好吧好吧。這真的很有幫助。然後也許第二個問題是在過去幾年中，我們看到了一些偏差或差距，在戶外和健身業務之間有些不尋常，在某種程度上反映了關鍵產品的發布。顯然，到 2024 年，您已經引導這些企業恢復了彼此一致的軌道。

So just maybe my question is when we think about maybe the product launch cadence and the importance of those product launches, should we think about this being a bit more evenly split across both of those product lines as opposed to maybe focusing on one or the other? Is that the right way of thinking kind of your emphasis on product launches for the entirety of 2024 just in these two segments specifically?

因此，也許我的問題是，當我們考慮產品發布節奏和這些產品發布的重要性時，我們是否應該考慮在這兩個產品線之間更均勻地分配，而不是專注於其中一個或另一個？您在 2024 年全年專注於這兩個細分市場的產品發布，這是正確的思維方式嗎？

Well, I would say that, ideally, we would want to have a very even cadence between those two segments when it comes to product launches. It doesn't always work out that way just because of the nature of product development and the complexity of the various product lines that we take on.

嗯，我想說，理想情況下，在產品發布方面，我們希望這兩個細分市場之間的節奏非常均勻。由於產品開發的性質以及我們所承擔的各種產品線的複雜性，事情並不總是如此。

I would expect in 2024 that outdoor will be more active than fitness. But then, again, in 2023, fitness was more active than outdoor.

我預計到 2024 年，戶外運動將比健身更活躍。但話又說回來，到了 2023 年，健身比戶外活動更活躍。

Our next question comes from Noah Zatzkin from KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Noah Zatzkin。

Maybe just one on kind of marine for me. Just wondering if you could kind of expand upon how you're thinking about end market dynamics this year and just any color on your OEM business versus aftermarket and how you're thinking about that dynamic playing out as we look into 2024.

也許對我來說只是一種海軍陸戰隊。只是想知道您是否可以擴展一下您對今年終端市場動態的看法，以及您的 OEM 業務與售後市場的任何顏色，以及在我們展望 2024 年時您如何考慮這種動態的發揮。

I would say, Noah, that the market, as we mentioned in the remarks, is softer. I think, in general, I would say that we estimate the market declined about 10% in 2023. When you look at all the various players, we outperformed with market share gains. So we're thrilled with that, and we expect in 2024 that we'll continue to perform ahead of the market.

諾亞，我想說，正如我們在評論中提到的那樣，市場更加疲軟。我認為，總的來說，我們估計 2023 年市場將下降約 10%。當你觀察所有不同的參與者時，我們的表現優於市場份額的成長。我們對此感到非常興奮，預計 2024 年我們的表現將繼續領先市場。

In terms of the dynamic between OEM and aftermarket in marine, the aftermarket is really the bigger slice of the pie, if you will. So we're influenced more by those dynamics. We do expect 2024 will be offset in terms of any softness, will be offset by new revenue from JL Audio, which we expect to be about 15% of the segment revenue for the year.

就船舶原始設備製造商和售後市場之間的動態而言，如果你願意的話，售後市場確實是更大的一塊蛋糕。所以我們更受到這些動態的影響。我們確實預計 2024 年的任何疲軟都將被 JL Audio 的新收入所抵消，我們預計該收入將佔當年該部門收入的 15% 左右。

And then maybe just one in terms of -- I know you're guiding to the pro forma tax rate of 15.5%. But any update on kind of when the tax rate officially changes?

然後也許只是一個方面——我知道您正在指導 15.5% 的預計稅率。但稅率何時正式改變有任何更新嗎？

Yes. So yes, we are guiding to a 15.5% for the full year. So it's really related to the increase in the combined Switzerland tax rates and the impact computation of a global minimum taxes. So in December of '23, here, recently, (inaudible) Schaffhausen actually passed some legislation, which effectively combined -- or increased the combined Switzerland tax rate to 15%. So that basically affect beginning of the year, 2024.

是的。所以，是的，我們的全年目標是 15.5%。因此，這確實與瑞士綜合稅率的增加以及全球最低稅率的影響計算有關。因此，在 2023 年 12 月，最近，（聽不清楚）沙夫豪森實際上通過了一些立法，這些立法實際上將瑞士的綜合稅率提高到了 15%。所以這基本上會影響 2024 年年初。

Our next question comes from Ben Bollin from Cleveland Research.

我們的下一個問題來自克利夫蘭研究中心的本·博林。

Cliff, I'm curious how you think about the contribution of new activations versus refresh across both outdoor and fitness. And then I had a follow-up.

Cliff，我很好奇你如何看待新激活與刷新在戶外和健身方面的貢獻。然後我進行了跟進。

Yes. So new customers to Garmin are still the majority of our registrations that we have on our platforms.

是的。因此，Garmin 的新客戶仍然是我們平台上註冊的大多數客戶。

Is there any differences that you've noticed between outdoor and fitness? Does one seem to be more of a refresh versus the other or it's pretty linear across segments?

您注意到戶外活動和健身有什麼區別嗎？與另一種相比，其中一種似乎更令人耳目一新，還是跨細分市場相當線性？

No. I mean, it does vary by segment. And more specifically, it varies by product line. Some of our product lines do tend to be driven by existing customers, while others tend to be driven actually by new customers.

不，我的意思是，它確實因細分市場而異。更具體地說，它因產品線而異。我們的一些產品線確實往往是由現有客戶驅動的，而另一些產品線實際上往往是由新客戶驅動的。

Okay. The last one for me is curious what you're seeing in China and India. Just bigger picture, what's your strategic initiative there? What are you trying to do? What type of performance have you seen? And that's it for me.

好的。我的最後一個問題是好奇你在中國和印度看到了什麼。從更大的角度來看，您的策略舉措是什麼？你想做什麼？你看過什麼類型的表演？對我來說就是這樣。

I think in China, the economic situation has been more challenging. I think our performance has been okay. Some countries in Asia do better than others. But in general, I would say it's doing fine given the situation there.

我認為在中國，經濟情勢更具挑戰性。我認為我們的表現還可以。亞洲一些國家比其他國家做得更好。但總的來說，考慮到那裡的情況，我想說它做得很好。

We do have a mix of retail partners and our own retail shops in various parts of Asia, including China. So we tend to go a little more direct to customer in some of those countries.

我們在亞洲各地（包括中國）確實擁有多種零售合作夥伴和我們自己的零售店。因此，我們傾向於更直接地接觸其中一些國家的客戶。

In India, we've kind of reset our approach there, and we've got a new distribution partner that's working the market, and we expect to see improvements there. But in general, India is kind of a small market for us right now.

在印度，我們已經重新調整了我們的方法，我們有了一個新的分銷合作夥伴來開拓市場，我們希望看到那裡的改進。但總的來說，印度現在對我們來說是一個小市場。

Our last question will come from Ivan Feinseth from Tigress Financial Partners.

我們的最後一個問題將來自 Tigress Financial Partners 的 Ivan Feinseth。

Congratulations on the great quarter and year. I have a couple of questions. You mentioned gaining market share in smart wearables. There was recently another notable large smart wearable company that had an issue with their pulse ox readings and eventually dropped right now from their product offering. Do you feel that -- or did you see that as a major driver of consumer choice to the Garmin watches?

恭喜這個偉大的季度和一年。我有一些問題。您提到獲得智慧型穿戴裝置的市場份額。最近，另一家著名的大型智慧穿戴公司的脈搏血氧讀數出現問題，最終從他們的產品中刪除。您是否有這樣的感覺——或者您認為這是消費者選擇 Garmin 手錶的主要驅動力？

Yes. I don't know that, that was a specific major driver, Ivan. But certainly, we do offer that feature, and we have a feature that's very different from any other player that's out there.

是的。我不知道，那是一個特定的主要司機，伊凡。但當然，我們確實提供了該功能，並且我們的功能與其他任何播放器都非常不同。

But in general, I would say that our products are doing well because they're strong on a broad basis across all kinds of features, and the ability to monitor both health and wellness functions as well as strong activity performance as well.

但總的來說，我想說我們的產品表現良好，因為它們在各種功能方面都很強大，並且能夠監控健康和保健功能以及強大的活動表現。

And then you started to roll out significant upgrades to your Connect app. And what are still your thoughts on maybe tiering that as far as a premium subscription level?

然後您開始對 Connect 應用程式進行重大升級。您對於將其分級為高級訂閱等級還有什麼想法？

Well, we continue to look at options for how do we monetize our app base. That's not something that we're eager to plow into because we recognize that a lot of people use our platforms and trust Garmin, especially with the security and the privacy of their data.

好吧，我們將繼續研究如何透過我們的應用程式基礎貨幣化的選項。這並不是我們急於涉足的領域，因為我們認識到很多人使用我們的平台並信任 Garmin，尤其是在資料的安全性和隱私方面。

But there are premium features that we will look at that could possibly result in premium tiers for some of our apps, much like we've done, for example, in golfing.

但我們會考慮一些高級功能，這些功能可能會為我們的某些應用程式帶來高級級別，就像我們在高爾夫等領域所做的那樣。

Then two questions on the automotive OEM side. You mentioned that the new customer you're onboarding will not require much R&D. Is that because you're going to get a lot of mileage going forward from the R&D that you've invested so far and that each incremental customer will be more and more profitable?

然後是汽車OEM方面的兩個問題。您提到您要引進的新客戶不需要太多研發。這是因為您將從迄今為止投資的研發中獲得很大的進展，並且每個增量客戶都會獲得越來越多的利潤嗎？

There's certainly some leveraging of the technologies that we've developed in order to be able to support this kind of customer. But this is actually a build-to-print opportunity. So the design work has been done, and so we're leveraging our factory and our process engineering to bring it into our Garmin factories.

當然，我們會利用一些我們開發的技術來支援這類客戶。但這其實是一個按圖印刷的機會。設計工作已經完成，我們正在利用我們的工廠和製程工程將其引入 Garmin 工廠。

And then my last question, you mentioned the strong product momentum going into '24. Can you give us some idea of what areas and new products we could expect to see?

然後我的最後一個問題，您提到了進入 24 年的強勁產品勢頭。您能否告訴我們一些我們預計會看到哪些領域和新產品？

Well, we don't mention any of our upcoming releases that aren't already public. But just yesterday, actually, we did announce the Forerunner 165, which I'm super excited about. It's a really strong entry-level watch with a bright OLED display. And I think I have a lot of personal expectations that it will be a popular product.

好吧，我們不會提及任何尚未公開的即將發布的版本。但事實上，就在昨天，我們確實發布了 Forerunner 165，我對此感到非常興奮。這是一款非常強大的入門級手錶，配有明亮的 OLED 顯示器。我想我對它會成為一款受歡迎的產品抱有許多個人期望。

We have no further questions. I would like to turn the call back over to Teri Seck for closing remarks.

我們沒有其他問題了。我想將電話轉回給泰瑞·塞克（Teri Seck），讓其致閉幕詞。

Thank you all for joining us this morning. Doug and I are available for callbacks, and we hope you have a great day. Bye.

感謝大家今天早上加入我們。道格和我可以回電，希望您度過愉快的一天。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。