Slide 1: WIN Semiconductors Company Presentation May 2016
WIN Semiconductors Wireless • Information • Networking Company Presentation May 2016 WIN Property www.winfoundry.com p.0
Slide 2: Safe Harbor Notice
Safe Harbor Notice • This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. • Except as
Slide 3: Quarterly Results & Guidance
Quarterly Results & Guidance WIN Property www.winfoundry.com p.2
Slide 4: Revenue & Margin Trend
Revenue & Margin Trend • 1Q16 revenue was up 3% QoQ, mainly driven by the better-than-expected demand from the smartphone market. The 17% YoY revenue growth reflected the increasing overall demand for the RF industry. • 1Q16 GM improved 0.4pp sequentially to a record high of 41.7%, primarily benefit
Slide 5: Earnings Trend
Earnings Trend • 1Q16 net profit reached a record high of NT$839mn, which increased 18% QoQ and 36% YoY. The solid growth was attributable to revenue growth and GM improvement. • 1Q16 EPS came in at NT$1.41, compared to NT$1.19 in 4Q15. NT$M Earnings & growth trend NT$ EPS 1,200 350% 1.60 300% 1.40
Slide 6: FCF & Gearing Trend
FCF & Gearing Trend • Free cash flow was negative in 1Q16, mainly due to the capex for continued capacity expansion. However, interest-bearing debts were maintained at below NT$3bn and gearings declined to a historical low since listing, reinforcing our solid balance sheet position. NT$M Free cashfl
Slide 7: Product Mix
Product Mix 1Q15 Wi-Fi 25-30% 1Q16 Cellular 50-55% Infra. 15-20% Wi-Fi 35-40% Cellular 45-50% 4Q15 Wi-Fi Cellular 40-45% 40-45% Infra. 15-20% Infra. Source: company. 10-15% WIN Property www.winfoundry.com p.6
Slide 8: 2Q16 Guidance
2Q16 Guidance • We expect 2Q16 revenue to grow by high single digit QoQ. • We expect 2Q16 depreciation expenses to be higher than 1Q16, which will impact 2Q16 gross margin by 1-2 pp. WIN Property www.winfoundry.com p.7
Slide 9: Financial Summary
Financial Summary WIN Property www.winfoundry.com p.8
Slide 10: Consolidated Statements of Comprehensive Income - Quarterly
Consolidated Statements of Comprehensive Income - Quarterly Unit: NTD Million 1Q'15 4Q'15 1Q'16 QoQ YoY Net revenue 2,807 3,197 3,292 +3% +17% Gross profit 1,063 1,319 1,374 +4% +29% Gross margin (%) 37.9% 41.3% 41.7% Operating expenses (288) (312) (367) +18% +27% Operating expenses rate (%) -10% -1
Slide 11: Non-operating Items
Non-operating Items Unit: NTD Million 1Q'15 1Q'16 Foreign exchange gains (losses) (22) (44) Gains (losses) on disposals of property, plant and equipment - (0) Gains (losses) on disposals of investments 1 1 Gains on financial assets (liabilities) at fair value through profit or loss, net 2 8 Share of
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets 2015/3/31 2015/12/31 2016/3/31 (Unit: NTD Million) Major Item $ % $ % $ % Cash and cash equivalents 2,897 13% 1,870 8% 1,718 7% Current financial assets at fair value through profit or 903 4% 1,015 4% 774 3% Current available-for-sale financial assets 698 3% 630 3% 839 3%
Slide 13: Market Outlook
Market Outlook WIN Property www.winfoundry.com p.12
Slide 14: Semiconductor Revenue Growth
Semiconductor Revenue Growth Y2015 Revenue Growth Rate WIN Semi +16% * (+21% in NT$) GaAs RF Market +9% Worldwide -2% Semiconductors -5% 0% 5% 10% 15% 20% 1,000,000 340,331 333,718 Revenue (US$M) 100,000 7,431 8,123 WIN Semi 10,000 1,000 328 379 GaAs RF Market 100 10 Worldwide 1 Semiconductors Y2014
Slide 15: Summary of Growth Momentum (2016)
Summary of Growth Momentum (2016) 4G Smartphones IoT Gateway 5G Network Short Term: Term • Fast growth of 4G adoption Long Term: Term (>65% of cellular terminals) • Pre-5G launch (e.g. • Rapid increase of 5/6-mode through broadband smartphones Mid--Term: Mid satellite, dense cells, …) • 802.11ac dua
Slide 16: Q&A
Q&A For more information regarding WIN www.winfoudry.com For all inquiries, suggestions, and comments ir@winfoundry.com WIN Property www.winfoundry.com p.15