Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H1 2018 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Jul 27, 2018
Slide 1: 2018H1 Investor Conference
2018H1 Investor Conference July 27, 2018
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 2018Q2 2018Q1 QoQ 2018H1 2017H1 YoY Net Sales 13,485 12,156 11% 25,641 21,836 17% Gross Profit 5,251 4,579 15% 9,830 6,703 47% Gross Margin 39% 38% n.a. 39% 31% n.a. Operating Income 2,458 2,028 21% 4,486 2,323 93% Operating Margin 18% 17%
Slide 5: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 12.0 39% 40% 38% 38% 37% 10.0 32% 35% 8.0 29% 6.0 28% 30% 28% 12.5 13.2 13.5 4.0 12.2 11.4 10.7 10.8 25% 10.4 2.0 0.0 20% 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 Revenue Gross Profit 5
Slide 6: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Jun. 30 '18 Dec. 31 '17 Jun. 30 '17 YOY Cash 9,345 14,172 5,903 58% Inventory(Net) 9,339 8,140 7,924 18% Property, Plant and Equipment 48,392 43,829 39,846 21% Total Assets 92,781 88,116 73,609 26% L/T Debt 6,774 8,729 7,984 -15% Total Liabilities 27,424 26,4
Slide 7: Statement of Cash Flows - Consolidated
Statement of Cash Flows - Consolidated Unit: NT$ M 2018Q2 2018Q1 QoQ 2018H1 2017H1 YoY Operating Cash Flow 3,410 3,800 -10% 7,210 4,378 65% Depreciation & Amortization 1,837 1,756 5% 3,593 2,842 26% Investing Cash Flow (4,015) (6,150) -35% (10,165) (8,882) 14% CAPEX (3,858) (6,281) -39% (10,139) (8,
Slide 8: Statement of Comprehensive Income - Memory
Statement of Comprehensive Income - Memory Unit: NT$ M 2018Q2 2018Q1 QoQ 2018H1 2017H1 YoY Net Sales 10,681 9,857 8% 20,538 17,191 19% Gross Profit 4,097 3,625 13% 7,722 4,715 64% Gross Margin 38% 37% n.a. 38% 27% n.a. Operating Income 2,174 1,871 16% 4,045 1,908 112% Operating Margin 20% 19% n.a. 2
Slide 9: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 12.0 38% 40% 36% 37% 10.0 35% 35% 8.0 29% 30% 25% 6.0 24% 24% 10.8 10.7 25% 4.0 10.1 9.9 8.6 8.9 2.0 8.5 8.2 20% 15% 0.0 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 Revenue Gross Profit GM% 9
Slide 10: Balance Sheet - Memory
Balance Sheet - Memory Unit: NT$ M Jun. 30 '18 Dec. 31 '17 Jun. 30 '17 YOY Cash 6,746 11,658 3,476 94% Inventory(Net) 7,659 6,497 6,386 20% Property, Plant and Equipment 131,595 123,750 117,921 12% Total Assets 88,653 84,410 69,947 27% L/T Debt 6,774 8,729 7,984 -15% Total Liabilities 24,646 24,198
Slide 11: Statement of Cash Flows - Memory
Statement of Cash Flows-Memory Unit: NT$ M 2018Q2 2018Q1 QoQ 2018H1 2017H1 YoY Operating Cash Flow 2,903 4,087 -29% 6,990 4,516 55% Depreciation & Amortization 1,771 1,689 5% 3,460 2,711 28% Investing Cash Flow (3,778) (6,209) -39% (9,987) (8,719) 15% CAPEX (3,817) (6,218) -39% (10,035) (8,719) 15%
Slide 12: Financial Highlights (Memory)
Financial Highlights (Memory) 2018H1 2017H2 2017H1 Unit: NT$ M Net Sales 20,538 100% 20,912 100% 17,191 100% Gross Profit 7,722 38% 7,443 36% 4,715 27% Operating Expenses 3,677 18% 3,640 17% 2,807 16% Operating Income 4,045 20% 3,803 18% 1,908 11% Net Income (Loss) 3,728 18% 3,874 19% 1,677 10% 12
Slide 13: Y2018 Memory CAPEX
Y2018 Memory CAPEX (NT$ B) 19.2 20 18 15.2 16 13 14 12 10 8 6 4.8 3.9 4 3 2.1 2 0 2012 2013 2014 2015 2016 2017 2018 (E) CAPEX(Cash Basis) as of 07/27/2018 13
Slide 14: Winbond Business Recap & Outlook
Winbond Business Recap & Outlook
Slide 15: 2018H1 Winbond Business Recap
2018H1 Winbond Business Recap DRAM maintained stable business with increasing demand in multiple applications, but limited capacity NOR Flash had seasonality and slight inventory adjustment in some segments in Q1, and rebound in Q2 Worldwide #1 NOR Flash supplier SLC NAND showed strong busin
Slide 16: Revenue Breakdown by Product
Revenue Breakdown by Product Revenue (NT$B) 12 11% 11% 10 12% 12% 14% 13% 8 15% 15% 37% 42% 39% 40% 6 42% 50% 47% 43% 7% 6% 8% 8% 4 5% 4% 4% 5% 43% 45% 39% 2 40% 40% 32% 34% 37% 0 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 NOR NAND Specialty Mobile 16
Slide 17: Revenue Breakdown by Application
Revenue Breakdown by Application 2018H1 2017H1 Car & Car & Industrial Industrial 16% 19% Communication Communication 31% 31% Consumer Consumer 28% 26% Computer Note: Revenue Computer 24% excluded foundry 25% and others Car & Industrial Consumer Computer Communication (NT$ M) YoY +0% (NT$ M) YoY +28%
Slide 18: DRAM Memory Business
DRAM Memory Business 38nm DRAM revenue continues to increase Gross margin improved with better mix in products and customers Specialty revenue and bit growth both increased due to strong demand and migration Mobile revenue declined due to customer’s model changes 5% 8% 15% (QoQ) '18Q2 vs '18
Slide 19: Flash Memory Business
Flash Memory Business Demand-Supply is getting balanced from Q2 Strong demand in SLC NAND Flash 14% 17% 17% (QoQ) '18Q2 vs '18Q1 ’18Q1 vs '17Q4 54% 55% 54% Revenue +8.1% -19.9% 32% 29% Bit growth +4.2% -2.7% 28% 2017Q4 2018Q1 2018Q2 90nm 58nm 46nm 19
Slide 20: 2018H2 Winbond Business Outlook - DRAM
2018H2 Winbond Business Outlook - DRAM Stable market conditions in Specialty DRAM, with increasing demand from multiple applications and slight capacity increase DRAM technology migration is on track: 38nm production is ramping up 25nm will be released to production in Q4 Next technology n
Slide 21: 2018H2 Winbond Business Outlook - Flash
2018H2 Winbond Business Outlook - Flash Foresee balanced demand-supply in NOR Flash in 2H Maintain stable business with diversified portfolio in applications and territories A few unique products are getting market attentions: Automotive grade SLC NAND Flash Serial NAND Flash 1.2V SPI Fl
Slide 22: Winbond Operation Focus
Winbond Operation Focus Capex in 2017 and 2018 drives capacity increase (to 54K WPM in early 2019) and technology migration to support business growth in 2019 and 2020 Continue intensive R&D to drive technology migrations in both DRAM and NOR/NAND Flash, and product innovations Planning of new