Slide 1: 1H20 Investor Conference
1H20 Investor Conference July 30, 2020
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: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2020Q2 2020Q1 QoQ 1H20 1H19 YoY Net Sales 12,753 11,549 1,204 24,302 22,898 1,404 Gross Profit 3,738 2,787 951 6,525 6,604 (79) Gross Margin 29% 24% 27% 29% Operating Income 876 32 844 908 897 11 Operating Margin 7% 0% 4% 4% Net Non-Operat
Slide 5: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 14.0 13.5 13.7 13.4 12.8 12.0 12.5 11.9 12.0 11.5 39% 10.9 40% 38% 10.0 34% 32% 8.0 29% 27% 30% 6.0 26% 24% 22% 4.0 20% 2.0 0.0 10% 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 Revenue Gross Profit 2
Slide 6: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Jun. 30 '20 % Dec. 31 '19 % Jun. 30 '19 % Cash 12,559 12% 11,468 11% 14,074 13% Inventory(Net) 10,583 10% 10,332 10% 11,068 11% Property, Plant and Equipment 55,340 54% 56,977 54% 55,730 54% Total Assets 103,541 100% 104,805 100% 103,280 100% L/T Liability 20
Slide 7: Statement of Cash Flows - Consolidated
Statement of Cash Flows - Consolidated Unit: NT$ M 2020Q2 2020Q1 QoQ 1H20 1H19 YoY Operating Cash Flow 2,598 1,715 883 4,313 4,846 (533) Depreciation & Amortization 2,280 2,296 (16) 4,576 4,288 288 Investing Cash Flow (2,028) (1,500) (528) (3,528) (6,790) 3,262 CAPEX (1,587) (1,521) (66) (3,108) (6,
Slide 8: Statement of Comprehensive Income - Memory
Statement of Comprehensive Income - Memory Unit: NT$ M 2020Q2 2020Q1 QoQ 1H20 1H19 YoY Net Sales 9,588 9,300 288 18,888 18,015 873 Gross Profit 2,342 1,810 532 4,152 4,529 (377) Gross Margin 24% 19% 22% 25% Operating Income 449 (66) 515 383 598 (215) Operating Margin 5% -1% 2% 3% Net Non-Operating I
Slide 9: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 12.0 10.7 10.9 10.0 38% 10.3 40% 37% 9.5 9.6 9.3 9.3 9.3 8.7 35% 8.0 32% 29% 30% 6.0 24% 25% 21% 22% 4.0 19% 20% 16% 2.0 15% 10% 0.0 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 Revenue Gross Profit 6
Slide 10: Balance Sheet - Memory
Balance Sheet - Memory Unit: NT$ M Jun. 30 '19 % Dec. 31 '19 % Jun. 30 '19 % Cash 4,824 5% 5,425 6% 11,205 11% Inventory(Net) 8,705 9% 8,750 9% 9,554 10% Property, Plant and Equipment 54,083 57% 55,691 57% 54,779 55% Total Assets 94,564 100% 98,249 100% 98,814 100% L/T Liability 18,362 19% 19,162 19
Slide 11: Statement of Cash Flows - Memory
Statement of Cash Flows-Memory Unit: NT$ M 2020Q2 2020Q1 QoQ 1H20 1H19 YoY Operating Cash Flow 2,104 2,035 69 4,139 4,991 (852) Depreciation & Amortization 2,147 2,177 (30) 4,324 4,088 236 Investing Cash Flow (1,809) (1,323) (486) (3,132) (6,613) 3,481 CAPEX (1,554) (1,438) (116) (2,992) (6,425) 3,4
Slide 12: Y2020 Memory CAPEX
Y2020 Memory CAPEX (NT$ B) 25 20 16.7 15.2 13.2 15 10.0 10 4.8 5 0 2016 2017 2018 2019 2020 (E) CAPEX (Cash Basis) as of 06/30/2020 9
Slide 13: Winbond Business Recap & Outlook
Winbond Business Recap & Outlook
Slide 14: 2Q20 Revenue Breakdown by Product
2Q20 Revenue Breakdown by Product Revenue (NT$B) 12 10% 10% 10 11% 11% 10% 10% 13% 10% 14% 8 42% 43% 36% 35% 35% 34% 41% 37% 6 39% 8% 9% 9% 8% 7% 9% 7% 7% 4 7% 40% 40% 43% 45% 46% 46% 47% 2 41% 40% 0 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 NOR NAND Specialty Mobile 10
Slide 15: 20Q1 vs 20Q2 Revenue by Application
20Q1 20Q2 Car & Industrial Car & Industrial 21% Communication Communication 19% 34% 34% Consumer Consumer 26% Computer 23% Computer 19% 24% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ - 10% NT$M QoQ - 8% QoQ + 32% QoQ + 3% NT$M NT$M NT$M 2,000 2,500
Slide 16: 19H1 vs 20H1 Revenue by Application
19H1 20H1 Car & Industrial Car & Industrial Communication 20% 20% Communication 29% 34% Consumer Consumer Computer 30% 24% Computer 21% 22% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication YoY + 7% NT$M YoY - 17% YoY + 5% YoY + 20% NT$M NT$M NT$M 4,000 6,000
Slide 17: DRAM Memory Business
DRAM Memory Business 1H20 revenue decreased by low teens% YoY; bit shipment increased by high teens% YoY 25nm DRAM revenue will grow rapidly 1% 4% 2% 6% 8% 11% 23% 22% 25% 24% 27% 28% 68% 69% 64% 62% 58% 55% 8% 7% 7% 8% 7% 6% 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 65nm 46nm 38nm 25nm 13
Slide 18: Flash Memory Business
Flash Memory Business 1H20 revenue was up more than +20% YoY Record high quantity shipment in Q2 We are WW No.1 NOR Flash supplier for 2019 SLC NAND price increased mid to high single digits % QoQ in 1H20 16% 16% 16% 16% 15% 15% 59% 62% 64% 64% 55% 57% 30% 28% 25% 22% 20% 20% 19Q1 19Q2 19Q3
Slide 19: Market Recap and Outlook
Market Recap and Outlook Recap Global pandemic: significant impact on the supply chain Demand/ Territory hit hardest: automotive and China market Paradigm shift (such as WFH): industrial and networking products to grow 1H20: strong in Server, NB (including Chromebook) and Networking Outl
Slide 20: Winbond Business and Outlook
Winbond Business and Outlook Business Demand and share in major customers remained solid Actions to COVID-19 and China-US conflict: Business diversification (customer, application and product) Innovative solutions: TrustME Secure Flash and QspiNAND Flash Technology 25 nm-shrink DRAM deve
Slide 21: Thank You
1H20 Investor Conference Thank You July 30, 2020