Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H2 2023 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Feb 6, 2024
Slide 1: 2H23 Investor Conference
2H23 Investor Conference Feb. 6th, 2024
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: Agenda
Agenda 01 Financial Results Chih-Chung Chou - CFO 02 Business Recap & Outlook James Chen - President 03 Q & A James Chen & Chih-Chung Chou
Slide 4: Financial Results
na) a ~ oe tp. it inancial Results F
Slide 5: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2H23 1H23 HoH 2023 2022 YoY Net Sales 38,679 36,327 2,352 75,006 94,530 (19,524) Gross Profit 11,642 10,753 889 22,396 43,051 (20,655) Gross Margin 30% 30% +0 ppts 30% 46% -16 ppts Operating Income (219) (1,411) 1,192 (1,630) 16,535 (18,16
Slide 6: Revenue and GM Trend – Consolidated
Revenue and GM Trend – Consolidated (NT$ B) 26.0 26.5 26.6 22.1 49% 48% 46% 19.2 18.8 19.5 19.2 45% 17.5 37% 31% 32% 28% 28% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Gross Profit Revenue 6
Slide 7: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Dec. 31, '23 % Jun. 30, '23 % Dec. 31, '22 % Cash 16,963 9% 17,640 10% 20,403 11% Inventory(Net) 23,870 13% 22,383 12% 21,448 11% Property, Plant, Equipment and ROU 105,747 55% 94,456 52% 97,829 53% Total Assets 190,788 100% 180,863 100% 184,165 100% L/T Liab
Slide 8: Statement of Cash Flow – Consolidated
Statement of Cash Flow – Consolidated Unit: NT$ M 2H23 1H23 HoH 2023 2022 YoY Operating Cash Flow 3,508 93 3,415 3,601 15,754 (12,153) Depreciation & Amortization 5,976 5,880 96 11,856 9,549 2,307 Investing Cash Flow (8,341) (4,691) (3,650) (13,032) (44,482) 31,450 CAPEX (9,177) (4,610) (4,567) (13,
Slide 9: Memory Business Performance (1)
Memory Business Performance (1) Unit: NT$ M 2H23 1H23 HoH 2023 2022 YoY Net Sales 20,481 17,603 2,878 38,085 51,772 (13,687) Cost of Goods Sold 16,725 14,981 1,744 31,706 27,226 4,480 Gross Profit 3,756 2,622 1,134 6,378 24,547 (18,169) Gross Margin 18% 15% +3 ppts 17% 47% -30 ppts Operating Expense
Slide 10: Memory Business Performance (2)
Memory Business Performance (2) (NT$ B) 15.5 15.6 15.3 51% 52% 11.5 47% 48% 10.1 10.3 9.4 9.5 33% 8.1 20% 21% 16% 10% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Gross Profit Revenue 10
Slide 11: Logic Business Performance (1)
Logic Business Performance (1) Unit: NT$ M 2H23 1H23 HoH 2023 2022 YoY Net Sales 17,439 17,909 (470) 35,348 41,872 (6,524) Gross Profit 7,110 7,233 (123) 14,343 17,494 (3,151) Gross Margin 41% 40% +1 ppts 41% 42% -1 ppts Operating Income 864 826 38 1,690 4,478 (2,788) Net Non-Operating Income (Loss)
Slide 12: Logic Business Performance (2)
Logic Business Performance (2) Unit: NT$ M Dec. 31, '23 % Jun. 30, '23 % Dec. 31, '22 % Cash 6,325 20% 9,035 25% 10,398 28% Inventory(Net) 7,756 24% 8,431 24% 8,459 23% Property, Plant, Equipment and ROU 7,856 25% 7,620 21% 8,186 22% Total Assets 31,740 100% 35,709 100% 36,852 100% L/T Liability 857
Slide 13: Memory CAPEX
Memory CAPEX (NT$ B) 40.8 17.4 9.3 12.7 7.9 2020 2021 2022 2023 2024(E) Paid Estimated Cash Basis, as of Feb. 6th , 2024 13
Slide 14: Business Recap & Outlook
ply eT Mee +? > amin: 4p fi 1 Waals r 2 hl Business Recap & Outlook
Slide 15: Memory Business Revenue Breakdown by Product
Memory Business Revenue Breakdown by Product (NT$ B) 16 14 46% 45% 47% 12 10 40% 33% 35% 41% 8 35% 37% 6 54% 55% 53% 4 60% 65% 67% 65% 63% 59% 2 0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 4Q23 Flash DRAM 15
Slide 16: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application 2022 2023 Car & Industrial Communication Car & Industrial Communication 27% 29% 26% 25% Consumer Consumer Computer Computer 20% 25% 24% 24% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication YoY -27% YoY -9% YoY -25
Slide 17: Flash Business
Flash Business ❑ Revenue decreased by 20% YoY, but 32nm node revenue continued to rise ❑ Bit shipment of NOR Flash business maintained flat YoY ❑ Bit shipment of SLC NAND business increased by low-forties YoY 17% 18% 1.1% 2.7% 4.5% 19% 1.3% 6.2% 15% 12% 21% 3.2% 14% 66% 18% 65% 65% 67% 65% 63% 61% 6
Slide 18: DRAM Business
DRAM Business ❑ Revenue decreased by 36% YoY ❑ Bit shipment increased by low-twenties% YoY, driven by 4G D3 sales growth ❑ Revenue contribution from ≦25nm kept increasing 66% 70% 15% 4% 7% 63% 6% 56% 51% 56% 54% 6% 4% 52% 6% 11% 10% 22% 21% 10% 10% 9% 24% 26% 25% 29% 23% 19% 6% 5% 7% 7% 7% 6% 4% 3%
Slide 19: Market and Business Outlook (1)
Market and Business Outlook (1) ❑ Code Storage Flash ❖ Mild demand growth: 1) ~5% end demand growth; 2) increase of content per box ❖ SLC NAND supply-demand balance expected by 2H24 and potential tightness in 2025 ❖ NOR Flash supply shows no significant change ❑ Specialty DRAM ❖ Premium market saw p
Slide 20: Market and Business Outlook (2)
Market and Business Outlook (2) ❑ Overall Market ❖ Economy and individual behavior are returning to normal ❖ US-China competition and China-plus-one strategy are shaping a new investment environment ❖ Memory industry is entering into a new up-cycle ❑ Winbond Business ❖ 45nm NOR Flash and 20nm DRAM b
Slide 21: ma s/f vf, hp pty ate
ys! ma s/f vf, hp 5 pty ate pe Te Ny a ~
Slide 22: Thank you
Thank you 22