Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — Q4 2015 Earnings Presentation
28 slides from Winbond Electronics's earnings presentation, Jan 29, 2016
Slide 1: Winbond Electronics Corporation
Winbond Electronics Corporation
Slide 2: Safe Harbor Notice
Safe Harbor Notice • We have made forward-looking statements in this presentation. Our forward-looking statements contain information regarding, among other things, our financial condition, future expansion plans and business strategies. We have based these forward- looking statements on our current
Slide 3: Financial Results
Financial Results
Slide 4: 4Q15 Statement of Comprehensive Income - Consolidated
4Q15 Statement of Comprehensive Income - Consolidated 4Q’15 3Q’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 9,840 100 9,534 100 306 3 Gross Profit 3,051 31 2,685 28 366 14 Operating Income 1,030 10 820 9 210 26 Pretax Income 1,014 10 898 10 116 13 Net Income 842 9 731 8 111 15 EPS
Slide 5: 4Q15 Balance Sheet - Consolidated
4Q15 Balance Sheet - Consolidated Dec. 31 ’15 Sep. 30 ’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 24,713 39 24,737 39 (24) 0 Net Fixed Assets 31,915 51 32,485 51 (570) (2) Total Assets 62,598 100 63,637 100 (1,039) (2) L/T Debt 8,755 14 10,017 16 (1,262) (13) Total Equity 40
Slide 6: 4Q15 Statement of Cash Flows - Consolidated
4Q15 Statement of Cash Flows - Consolidated 4Q’15 3Q’15 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,318 1,746 572 Investing Cash Flow (854) (1,022) 168 Financing Cash Flow (2,025) (781) (1,244) Cash & Equivalents 6,397 6,969 (572) Depreciation and Amortization 1,467 1,480 (13)
Slide 7: 2015 Statement of Comprehensive Income - Consolidated
2015 Statement of Comprehensive Income - Consolidated 2015 2014 YoY Change Unit: NT$ M Amount % Amount % Amount % Net Sales 38,350 100 37,990 100 360 1 Gross Profit 11,822 31 10,790 28 1,032 10 Operating Income 4,109 11 3,658 9 451 12 Pretax Income 4,248 11 3,941 10 307 8 Net Income 3,473 9 3,211 8
Slide 8: 4Q15 Statement of Comprehensive Income - Memory
4Q15 Statement of Comprehensive Income - Memory 4Q’15 3Q’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 7,977 100 7,525 100 452 6 Gross Profit 2,247 28 1,792 24 455 25 Operating Income 923 12 635 8 288 45 Pretax Income 963 12 796 11 167 21 Net Income 817 10 673 9 144 21 EPS (NT$) 0.2
Slide 9: 4Q15 Balance Sheet - Memory
4Q15 Balance Sheet - Memory Dec. 31 ’15 Sep. 30 ’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 19,345 33 19,308 32 37 0 Net Fixed Assets 31,195 52 31,793 53 (598) (2) Total Assets 59,496 100 60,472 100 (976) (2) L/T Debt 8,755 15 10,017 17 (1,262) (13) Total Equity 38,902 65 38
Slide 10: 4Q15 Statement of Cash Flows - Memory
4Q15 Statement of Cash Flows-Memory 4Q’15 3Q’15 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,069 2,046 23 Investing Cash Flow (727) (986) 259 Financing Cash Flow (2,021) (701) (1,320) Cash & Equivalents 3,635 4,314 (679) Depreciation and Amortization 1,406 1,418 (12) CAPEX 911 9
Slide 11: 2015 Statement of Comprehensive Income - Memory
2015 Statement of Comprehensive Income - Memory 2015 2014 YoY Change Unit: NT$ M Amount % Amount % Amount % Net Sales 30,844 100 30,930 100 (86) 0 Gross Profit 8,462 27 7,614 25 848 11 Operating Income 3,507 11 3,225 11 282 9 Pretax Income 3,910 13 3,672 12 238 6 Net Income 3,291 11 3,076 10 215 7 E
Slide 12: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 10.0 32% 32% 35% 31% 31% 28% 28% 28% 30% 8.0 26% 25% 6.0 20% 15% 4.0 9.7 9.9 9.6 9.7 9.5 9.8 9.3 10% 2.0 8.8 5% 0.0 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Revenue Gross Profit GM% 12
Slide 13: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 10.0 35% 8.0 28% 29% 29% 28% 30% 24% 25% 24% 25% 6.0 21% 20% 4.0 15% 7.8 8.1 8.0 8.0 7.3 8.0 10% 2.0 7.5 7.1 5% 0.0 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Revenue Gross Profit GM% 13
Slide 14: Y2015 Memory CAPEX
Y2015 Memory CAPEX (NT$ B) 13.0 14.0 12.0 10.0 7.6 8.0 6.0 6.0 3.9 3.0 4.0 2.1 2.0 0.0 2011 2012 2013 2014 2015 2016 (E) CAPEX(Cash Basis) as of 12/31/2016
Slide 15: Winbond Business Update & Outlook
Winbond Business Update & Outlook
Slide 16: 4Q15 Memory Business Recap
4Q15 Memory Business Recap QoQ YoY Revenue +6% +0% Gross Profit +9% +2% Revenue increased QoQ due to demand in NTWK and handheld devices Gross margin returned to normal 16
Slide 17: 4Q15 Revenue Breakdown by Application
4Q15 Revenue Breakdown by Application Car & Industrial 12% Communication Consumer 32% 28% Computer 28% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ + 3% QoQ + 4% QoQ + 2% QoQ + 14% YoY + 38% YoY + 1% YoY - 9% YoY - 5% NT$M NT$M NT$M NT$M 936 2,382 2,
Slide 18: 4Q15 Revenue Breakdown by Product
4Q15 Revenue Breakdown by Product Revenue (NT$B) 9.0 8.1 8.0 8.0 8.0 7.8 8.0 7.3 7.5 7.1 7.0 35% 35% QoQ YoY 36% 35% 37% 36% 6.0 36% 36% Flash +9% +5% 5.0 Specialty +1% -3% 4.0 54% 53% 52% Mobile +25% +0% 3.0 52% 51% 52% 54% 51% 2.0 1.0 12% 13% 11% 12% 13% 12% 10% 12% 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q
Slide 19: 4Q15 Revenue Breakdown by Geometry
4Q15 Revenue Breakdown by Geometry Specialty DRAM Mobile DRAM Flash Memory Mobile DRAM 100% 100% 100% 8% 8% 80% 80% 80% 54% 65% 53% 58% 60% 84% 87% 60% 60% 40% 40% 40% 40% 20% 20% 35% 20% 39% 34% 16% 13% 6% 0% 0% 0% 2015Q3 2015Q4 2015Q3 2015Q4 2015Q3 2015Q4 65nm 46nm 90nm 65nm 46nm 90nm 58nm 46nm 19
Slide 20: 4Q15 Specialty DRAM Business
4Q15 Specialty DRAM Business QoQ YoY Revenue +1% -3% Revenue remained stable despite slight price erosion Shipment and revenue from automotive and industrial applications continued growing
Slide 21: 4Q15 Mobile DRAM Business
4Q15 Mobile DRAM Business QoQ YoY Revenue +25% +0% Revenue increased significantly in handheld and TV applications New customers started to contribute revenue
Slide 22: 4Q15 Flash Memory Business
4Q15 Flash Memory Business QoQ YoY Revenue +9% +5% Price erosion slowed down Revenue increased due to surging demand in M2M Demand in PC segment was stronger than expected
Slide 23: Y2015 vs Y2014
Y2015 vs Y2014 NT$B Y2015 Y2014 YoY Specialty 16.2 16.3 (1)% Mobile 3.6 3.6 (2)% Flash 11.1 11.0 1% Total Revenue 30.8 30.9 0% Total Net Income 3.3 3.1 7% Specialty DRAM Increasing business in automotive segment stimulated revenue and profit Gross margin improved with more shipment in 46nm pro
Slide 24: YoY Revenue Breakdown by Geometry
YoY Revenue Breakdown by Geometry Specialty DRAM Mobile DRAM Flash Memory Mobile DRAM 100% 100% 100% 1% 7% 80% 80% 80% 59% 54% 57% 61% 56% 60% 81% 60% 60% 40% 40% 40% 45% 20% 37% 20% 41% 20% 42% 37% 18% 2% 1% 1% 0% 0% 0% 2014 2015 2014 2015 2014 2015 90nm 65nm 46nm 90nm 65nm 46nm 90nm 58nm 46nm Note
Slide 25: Revenue Breakdown by Application
Revenue Breakdown by Application Growing business in Car and Industrial 2014 2015 Car & Industrial Car & Industrial 7% 11% Consumer Communication Communication 28% 34% Consumer 33% 28% Computer Computer 31% 28% Note: Revenue excluded foundry and others 25
Slide 26: Market and Business Outlook (I)
Market and Business Outlook (I) Overall market Economy outlook remained uncertain, unfavorable to demand for consumer electronics Growth from smartphone slows down, but density per box will continue increasing IOT adaption is foreseeable but takes time DRAM market Limited capacity expans
Slide 27: Market and Business Outlook (II)
Market and Business Outlook (II) Winbond business Well-positioned in Auto/Industrial markets bring in stable and high- margin business Intensive cooperation with Chipsets makers on SiP business Focusing on tier-1 customers enhances Winbond brand name Self-developed technology as the core c
Slide 28: Business Performance Compared to Memory Peers
Business Performance Compared to Memory Peers 50% 40% 30% 20% 10% 0% -10% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 WB (RD vs REV ratio) 14% 12% 12% 13% 14% 13% 11% 13% 13% 15% 13% 14% Memory Peer 1 GM% -4% 4% 18% 12% 18% 6% 17% 8% 13% 12% 14% 8% Memory Peer 2 GM% 19% 1