Win Semiconductors Corp. · TPEX:3105
Win Semiconductors — Investor Presentation (May 2019)
27 slides from Win Semiconductors's investor presentation, May 2019
Slide 1: WIN Semiconductors Company Presentation
WIN Semiconductors Company Presentation May 2019 WIN Semiconductors Confidential
Slide 2: Safe Harbor Notice
Safe Harbor Notice This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Except as requ
Slide 3: Outline
Outline Market Outlook Technologies The WIN Strategy Financial Review & Guidance Q&A WIN Semiconductors Confidential 3
Slide 4: Market Outlook
MARKET OUTLOOK WIN Semiconductors Confidential 4
Slide 5: 2018 Operating Results
2018 Operating Results 2018 Revenue Hit Another Record High Operating Results Optical Device Revenue Growth >40% Non-handset Multi-market Revenue Growth >25% Multiple Initial Wins on 5G Project – Both Handset and Infrastructure WIN Semiconductors Confidential 5
Slide 6: Business Growth Drivers
Business Growth Drivers 5G Wireless Sub-6GHz mmWave Optical Devices 3D Sensing Optical Communication WIN Semiconductors Confidential 6
Slide 7: Growth Drivers – 5G
Growth Drivers – 5G 4G PA B1 5G PA n1 4G PA B2 4G PA B1 B3 5G PA n2 4G PA B2 Additional 5G PA’s for the same n3 frequency band (Cannot reuse 4G PA) B3 WIN Semiconductors Confidential 7
Slide 8: Growth Drivers – 5G
Growth Drivers – 5G Additional frequency bands for 5G (not exist in 4G era) WIN Semiconductors Confidential 8
Slide 9: Growth Drivers – 5G
Growth Drivers – 5G 5G PA n77 mmWave 5G PA n77 5G PA n77 5G PA n79 5G PA n79 Sub-6GHz 5G PA n79 Source: Strategy Analytics 2X2 Uplink MIMO: 5G infrastructure: n41, n77, n78, and n79 GaN HEMT & GaAs pHEMT!!! WIN Semiconductors Confidential 9
Slide 10: Growth Drivers – Optical Devices
Growth Drivers – Optical Devices 3D Sensing – Face and gesture recognition, AR/VR, LiDAR – 3D sensing market CAGR > 30% (2018 – 2023) Optical Communication – 5G mobile fronthaul and backhaul access – Data center Greater than 20 top tier customer engagements WIN Semiconductors Confidential 10
Slide 11: Growth Drivers – WiFi & Satellite
Growth Drivers – WiFi & Satellite WiFi will be upgraded from 802.11ac to 802.11ax (WiFi 6) – Faster throughput – Higher network efficiency – Better in dense environments More spectrum for WiFi: 6~7GHz – Double the available frequency bandwidth – Extreme high throughput Broadband internet through sat
Slide 12: Growth Drivers – Summary
Growth Drivers – Summary Sub-6GHz Face ID phones AR/VR Infrastructure 3D LiDAR 5G mmWave Sensing Broadband Telecom Internet Satellite Datacom LEO&MEO Optical (Data center) Aerospace Comm. 5G fiberoptic fronthaul/ backhaul WIN Semiconductors Confidential 12
Slide 13: Technologies
TECHNOLOGIES WIN Semiconductors Confidential 13
Slide 14: Broad Portfolio of Advanced Technologies
Broad Portfolio of Advanced Technologies The most comprehensive technology portfolio in industry enables customers to develop optimized products for a wide range of applications 0.5 μm pHEMT BiHEMT (H2W) Leading Tech. Satellite Leading & Integration Tech. Communication Phase Array Radar Cellular Wi-
Slide 15: 4/5G Infrastructure – WIN Inside!
4/5G Infrastructure – WIN Inside! Ultra high frequency semiconductor RF power device market, in value – breakdown by technology technology provider! (Only considering RF power semiconductors above 3W, excluding such applications as mobile PAs) Wireless infrastructure Satellite communications Fiberop
Slide 16: The WIN Strategy
The WIN Strategy Invest in capacity to Invest in capture demand technologies to growth and maintain improve margins competitive through product edge and sustain remix Scale & Technology leadership Remix Leadership Cost & Customer Efficiency Diversification Leverage on Grow and acquire technology and
Slide 17: Financial Review & Guidance
FINANCIAL REVIEW & GUIDANCE WIN Semiconductors Confidential 17
Slide 18: Revenue & Margin Trend
Revenue & Margin Trend 1Q19 revenue finished at NT$3,619m, down 14% QoQ and 19% YoY. In 1Q19, due to lower utilization rate and product mix changes, our gross margin declined by 7.6 pp sequentially to 25.0%, and operating margin declined by 10.4pp sequentially to 8.3%. NT$M Quarterly revenue trend Q
Slide 19: Earnings Trend
Earnings Trend 1Q19 net income was NT$151m, down 79% on both a QoQ and YoY basis, with EPS of NT$0.41. NT$M Earnings & growth trend NT$ EPS 1,800 350% 3.50 1,600 300% 3.00 1,400 250% 200% 2.50 1,200 150% 1,000 100% 2.00 800 50% 600 1.50 0% 400 -50% 1.00 200 -100% 0 -150% 0.50 2Q17 3Q17 4Q17 1Q18 2Q1
Slide 20: FCF & Gearing Trend
FCF & Gearing Trend Capex in 1Q19 was at the same level of previous quarter. Though our free cash was decrease sequentially due to decreased operating profit, we still generated positive free cash in 1Q19. 1Q19 interest-bearing debts and gearing ratio were lower than those of previous two quarters;
Slide 21: Product Mix
Product Mix 1Q18 Others* 19% 1Q19 Others* Cellular 17% Wi-Fi 30-35% 30-35% Wi-Fi Infra. 20-25% 10-15% Cellular 25-30% 4Q18 Others* 25% Cellular 20-25% Infra. Wi-Fi 25-30% 25-30% * Others: Revenue not attributable to main product segments and additional revenue being consolidated in accordance with I
Slide 22: 2Q19 Guidance
2Q19 Guidance We expect 2Q19 revenue to increase by mid-teens QoQ. We expect 2Q19 gross margin to be around the level of low thirties. WIN Semiconductors Confidential 22
Slide 23: Appendix - Financial Summary
APPENDIX - FINANCIAL SUMMARY WIN Semiconductors Confidential 23
Slide 24: Consolidated Statements of Comprehensive Income - Quarterly
Consolidated Statements of Comprehensive Income - Quarterly 1Q'19 Unit: NTD Million 1Q'18 4Q'18 QoQ YoY (unaudited) Net revenue 4,464 4,214 3,619 -14% -19% Gross profit 1,521 1,374 903 -34% -41% Gross margin (%) 34.1% 32.6% 25.0% Operating expenses (480) (585) (603) +3% +26% Operating expenses rate
Slide 25: Non-operating Items
Non-operating Items 1Q'19 Unit: NTD Million 1Q'18 (unaudited) Foreign exchange gains (losses) (73) 2 Gains (losses) on disposals of property, plant and equipment 0.01 (1) Gains (losses) on disposals of investments 0.3 (26) Gains on financial assets (liabilities) at fair value through profit or loss,
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets 2019/3/31 2018/3/31 2018/12/31 (Unit: NTD Million) Major Item (unaudited) $ % $ % $ % Cash and cash equivalents 5,852 17% 5,462 15% 4,765 13% Current financial assets at fair value through profit or loss 710 2% 103 0.3% 137 0.4% Notes and accounts receivable, net 1,348 4%
Slide 27: Q&A
Q&A For more information regarding WIN www.winfoudry.com For all inquiries, suggestions, and comments ir@winfoundry.com WIN Semiconductors Confidential 27
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