Winbond Electronics Corp. · TWSE:2344

Winbond Electronics — Q2 2015 Earnings Presentation

23 slides from Winbond Electronics's earnings presentation, July 2015

  1. Slide 1: Winbond Electronics Corporation

    Winbond Electronics Corporation

  2. 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

  3. Slide 3: Financial Results

    Financial Results

  4. Slide 4: 2Q15 Statement of Comprehensive Income - Consolidated

    2Q15 Statement of Comprehensive Income - Consolidated 2Q’15 1Q’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 9,252 100 9,724 100 (472) (5) Gross Profit 2,954 32 3,132 32 (178) (6) Operating Income 993 11 1,267 13 (274) (22) Pretax Income 1,055 11 1,281 13 (226) (18) Net Income 863 9

  5. Slide 5: 2Q15 Balance Sheet - Consolidated

    2Q15 Balance Sheet - Consolidated Jun. 30 ’15 Mar. 31 ’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 23,997 38 23,721 37 276 1 Net Fixed Assets 32,869 52 33,104 51 (235) (1) Total Assets 63,625 100 64,397 100 (772) (1) L/T Debt 10,012 16 9,814 15 198 2 Total Equity 39,637 62 39

  6. Slide 6: 2Q15 Statement of Cash Flows - Consolidated

    2Q15 Statement of Cash Flows - Consolidated 2Q’15 1Q’15 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 1,696 1,898 (202) Investing Cash Flow (1,776) (778) (998) Financing Cash Flow (658) (397) (261) Cash & Equivalents 6,915 7,676 (761) Depreciation and Amortization 1,497 1,412 85 CA

  7. Slide 7: 2Q15 Statement of Comprehensive Income - Memory

    2Q15 Statement of Comprehensive Income - Memory 2Q’15 1Q’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 7,304 100 8,038 100 (734) (9) Gross Profit 2,085 29 2,338 29 (253) (11) Operating Income 815 11 1,134 14 (319) (28) Pretax Income 940 13 1,211 15 (271) (22) Net Income 801 11 1,000

  8. Slide 8: 2Q15 Balance Sheet - Memory

    2Q15 Balance Sheet - Memory Jun. 30 ’15 Mar. 31 ’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 18,752 31 18,739 30 13 0 Net Fixed Assets 32,197 53 32,442 53 (245) (1) Total Assets 60,426 100 61,471 100 (1,045) (2) L/T Debt 10,012 17 9,814 16 198 2 Total Equity 38,525 64 38,831

  9. Slide 9: 2Q15 Statement of Cash Flows - Memory

    2Q15 Statement of Cash Flows-Memory 2Q’15 1Q’15 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 1,469 1,834 (365) Investing Cash Flow (1,742) (704) (1,038) Financing Cash Flow (658) (390) (268) Cash & Equivalents 3,955 4,886 (931) Depreciation and Amortization 1,436 1,351 85 CAPEX 1,

  10. Slide 10: Revenue and GM Trend - Consolidated

    Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 10.0 32% 35% 31% 32% 26% 28% 28% 30% 8.0 21% 25% 22% 6.0 20% 15% 4.0 9.7 9.9 9.6 9.7 9.3 10% 2.0 8.8 8.3 8.3 5% 0.0 0% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Revenue Gross Profit GM% 10

  11. Slide 11: Revenue and GM Trend - Memory

    Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 10.0 35% 8.0 29% 29% 28% 30% 24% 25% 21% 25% 6.0 20% 16% 16% 4.0 15% 7.8 8.1 8.0 8.0 10% 2.0 6.7 7.1 7.3 6.5 5% 0.0 0% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Revenue Gross Profit GM% 11

  12. Slide 12: Y2015 Memory CAPEX

    Y2015 Memory CAPEX (NT$ B) 13.0 14.0 12.0 10.0 7.4 8.0 6.0 4.8 6.0 3.0 4.0 2.1 2.0 0.0 2010 2011 2012 2013 2014 2015 (E) CAPEX(Cash Basis) as of 07/31/2015

  13. Slide 13: Winbond Business Update & Outlook

    Winbond Business Update & Outlook

  14. Slide 14: 2Q15 Memory Business Recap

    2Q15 Memory Business Recap QoQ YoY Revenue (9%) (6%) Gross Profit (11%) 12%  Revenue and Gross Profit declined due to weak market demand  Impact on Winbond business was less severe due to our focus on specialty memory markets and diversified product portfolio. 14

  15. Slide 15: 2Q15 Revenue Breakdown by Application

    2Q15 Revenue Breakdown by Application Car & Industrial 11% Communication Consumer 34% 27% Computer 28% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ - 2% QoQ - 14% QoQ - 11% QoQ - 8% YoY + 46% YoY - 11% YoY - 17% YoY - 7% NT$M NT$M NT$M 2,390 NT$M 791

  16. Slide 16: 2Q15 Revenue Breakdown by Product

    2Q15 Revenue Breakdown by Product Revenue (NT$B) 9.0 8.1 8.0 8.0 7.8 8.0 7.3 7.1 7.0 6.7 6.5 35% 35% 35% QoQ YoY 36% 6.0 36% 36% Flash -7% -7% 38% 41% 5.0 Specialty -9% -5% 4.0 54% 53% 52% Mobile -16% -12% 3.0 52% 51% 52% 51% 48% 2.0 1.0 11% 11% 12% 13% 11% 12% 13% 12% 0.0 3Q13 4Q13 1Q14 2Q14 3Q14 4

  17. Slide 17: 2Q15 Revenue Breakdown by Geometry

    2Q15 Revenue Breakdown by Geometry Specialty DRAM Mobile DRAM Flash Memory Mobile DRAM 100% 100% 100% 4% 6% 80% 43% 80% 56% 80% 58% 57% 75% 79% 60% 60% 60% 40% 40% 40% 57% 44% 20% 20% 38% 37% 20% 24% 21% 1% 0% 0% 0% 2015Q1 2015Q2 2015Q1 2015Q2 2015Q1 2015Q2 90nm 65nm 46nm 65nm 46nm 90nm 58nm 46nm No

  18. Slide 18: 2Q15 Specialty DRAM Business

    2Q15 Specialty DRAM Business QoQ YoY Revenue (9%) (5%)  Revenue dropped due to slow demand in HDD and STB  Stable demand from Networking segment  46nm products accounted for 79% Specialty DRAM revenue (vs. 75% in 1Q15)

  19. Slide 19: 2Q15 Mobile DRAM Business

    2Q15 Mobile DRAM Business QoQ YoY Revenue (16%) (12%)  Revenue decreased resulting from customer’s inventory adjustment

  20. Slide 20: 2Q15 Flash Memory Business

    2Q15 Flash Memory Business QoQ YoY Revenue (7%) (7%)  Revenue declined mainly due to weaker demand in feature phone market  1Gb Code Storage Flash accounted for 6% Flash revenue (vs. 4% in 1Q15)

  21. Slide 21: Global GDP Forecast (2015-2016)

    Global GDP Forecast (2015-2016) GDP Forecast GDP Forecast (IMF) (Most Likely) Region 2015F 2015F 2015F 2014 2016F 2015F 2016F (Jan) (Apr) (Jul) USA 2.4% 3.6% 2.9% 2.5% 3.0% 2.0% 1.8% Euro Area 0.8% 1.2% 1.4% 1.5% 1.7% 1.4% 1.2% China 7.4% 6.8% 6.5% 6.8% 6.3% 6.8% 6.0% Japan 0.2% 0.6% 0.6% 0.8% 1.2%

  22. Slide 22: Applications Demand Forecast

    Applications Demand Forecast 2015 2015 Application 2013 2014 (Apr) (Jul) Smartphone 38% 13% 13% 11% PC -10% -2% -7% -8% Tablet 75% 7% 0% -10% TV -1% 3% 3% 0% STB 8% 7% 1% 1% HDD -4% 1% -7% -8% Wearable 412% 256% IoT long term story Source: Winbond (Jul-2015)

  23. Slide 23: Market and Business Outlook

    Market and Business Outlook  Overall market  Weak demand and inventory digestion impact seasonality in Q3  Expect relatively stable Q4  DRAM  Slight oversupply in 2H15 due to weak market demand  Code Storage Flash market  NOR Flash remains stable with growing opportunities in IoT and automoti

Winbond Electronics — Q2 2015 Earnings Presentation on 6ix