Nanya Technology Corporation · TWSE:2408

Nanya Technology — Q1 2018 Earnings Presentation

21 slides from Nanya Technology's earnings presentation, Apr 17, 2018

  1. Slide 1: Nanya Technology Q1'2018 Investor Conference

    Nanya Technology Q1’ 2018 Investor Conference Presentation to Investors and Analysts, 17 Apr. 2018 Dr. Pei-Ing Lee , President & Spokesman NTC Proprietary April 17, 2018 © 2018 Nanya Technology Corp. Level: Property

  2. Slide 2: Safe Harbor

    Safe Harbor The information herein and the presentation made during the conference contain forward-looking statements and are provided for information purposes only. Neither Nanya Technology Corp. nor any other person assumes responsibility for the accuracy and completeness of the forward-looking st

  3. Slide 3: Agenda

    Agenda 01. Q1’18 Key Takeaways 02. Q1’18 Revenue & Results 03. CAPEX & Bit Shipment 04. Market Outlook 05. Business Outlook April 17, 2018 © 2018 Nanya Technology Corp. 3

  4. Slide 4: Q1'18 Key Takeaways

    01 Q1’18 KEY TAKEAWAYS April 17, 2018 © 2018 Nanya Technology Corp. 4

  5. Slide 5: Q1'18 Key Takeaways

    Q1’18 Key Takeaways  Q1’18 Revenue of NT$ 18,797 million(M), (+12.1% QoQ)  ASP increased 6.1%, Bit shipment increased 8.4%  Gross Margin 51.8%; Operating Margin 44.3%  Foreign exchange loss of NT$ 1,178M  As of Mar. 7, 2018, 100% of ECB were converted  Q1’18 Net Income of NT$ 7,227M, Net Margi

  6. Slide 6: Q1'18 Revenue & Results

    02 Q1’18 REVENUE & RESULTS April 17, 2018 © 2018 Nanya Technology Corp. 6

  7. Slide 7: Quarterly Financial Highlights

    Quarterly Financial Highlights 30,000 60% 51.8% 50% 48% 49% 47% 44% 44% 44% 44.3% 42% 42% 42% 40% 40% 40% Gross Margin, Operating Margin (%) Revenue, Net Income (Million NT$) 37% 39% 18,797 36% 34% 34% 33% 33% 31% 31% 32% 32% 30% 15,000 15,000 28% 28% 30%30% 25% 21% 18% 18% 17% 7,227 0 0% Q1'14 Q2'1

  8. Slide 8: Quarterly Revenue Results

    Quarterly Revenue Results QoQ YoY Q1 ’18 vs. Q4’17 Q1’18 vs. Q1’17 Revenue +12.1% +53.7% Shipment +8.4% +34.6% ASP +6.1% +21.4% Exchange Rate -2.6% -5.9%  Q1’18 Revenue increased by 12.1% QoQ  Q1’18 Bit shipment increased by 8.4% QoQ  Q1’18 ASP increased by 6.1% QoQ April 17, 2018 © 2018 Nanya Te

  9. Slide 9: Q1'18 Financial Results Summary

    Q1’18 Financial Results Summary Q1'18 Q4'17 Q1'17 Amount in Million NT$, QoQ YoY except for EPS & BVPS Unaudited Audited Audited Net Sales 18,797 100% 16,769 100% 12.1% 12,231 100% 53.7% Gross Margin (Loss) Gross Margin(%) 9,741 51.8% 8,342 49.7% 16.8% 4,901 40.1% 98.8% Operating Income (Loss) 8,319

  10. Slide 10: Q1'18 vs. Q4'17 Results Comparison

    Q1’18 vs. Q4’17 Results Comparison Q1'18 Q4'17 QoQ (PPT* Delta) Difference Amount in Million NT$ Unaudited Audited  ASP increased 6.1% QoQ Net Sales 18,797 16,769 +12.1%  Bit shipment increased 8.4% QoQ  Q1’18 Gross Income increased NT$ Gross Income (Loss) 9,741 51.8% 8,342 49.7% +2.1% 1,399M, ma

  11. Slide 11: Operating Expenses

    Operating Expenses R&D Expenses SG&A Expenses (Million NT$) * Unaudited number (Million NT$) * Unaudited number 1,238 Q4 577 Q3 1,026 610 ＊ Q2 495 ＊ 882 876 Q1 521 546 527 2017 2018 2017 2018 Note: R&D expenses decreased by NT$ 362M in Q1’18 mainly because certain 20nm R&D expenses deferred to later

  12. Slide 12: ECB Conversion Completed

    ECB Conversion Completed Issuance New Shares from % of total Conversion Price Amount Conversion Dilution Effect Issuance / Share (NT$) (US$) (shares) 500,000,000 100.00% 50.94 311,052,084 10.17%  Nanya issued its ECB of US$500 million(M) on Jan. 24, 2017  Accumulated valuation loss of NT$ 7,739M t

  13. Slide 13: Q1'18 Cash Flows

    Q1’18 Cash Flows Q1'18 Q4'17 Q1'17 Unaudited & Audited & Audited & Unit: Million NT$ Consolidated Consolidated Consolidated Beginning Balance 33,769 24,540 9,102 Cash from Operating Activities 7,815 8,857 5,498 Capital expenditures -1,941 -2,865 -6,147 Long-term & Short-term loans 5 -17,690* 9,984 I

  14. Slide 14: CAPEX & Bit Shipment

    03 CAPEX & BIT SHIPMENT April 17, 2018 © 2018 Nanya Technology Corp. 14

  15. Slide 15: CAPEX & Bit Shipment

    CAPEX & Bit Shipment BIT SHIPMENT (YOY) NT$ Billion ~48% 20% 16% -8.6% Flat 2014 2015 2016 2017 2018(E) CAPEX Bit Shipment (YoY)  Q1’18 CAPEX NT$ 1.94Billion (B) Capital  Estimated 2018 CAPEX of NT$ 11.5B Expenditure  20nm equipment payment deferred (CAPEX)  10nm Class technology development  A

  16. Slide 16: Market Outlook

    04 MARKET OUTLOOK April 17, 2018 © 2018 Nanya Technology Corp. 16

  17. Slide 17: DRAM Market – Q2'18

    DRAM Market – Q2’18 Supply  DRAM supply to remain tight in 1H’18; DRAM wafer starts increase likely in 2H’18.  Expect DRAM demand grow steady in Q2 and Q3 2018, demand growth 21~23% yoy.  Mobile Market: new flagship smartphones with enhanced Artificial Intelligence(AI) and dual- cam features afte

  18. Slide 18: Business Outlook

    05 BUSINESS OUTLOOK April 17, 2018 © 2018 Nanya Technology Corp. 18

  19. Slide 19: Nanya Business Outlook

    Nanya Business Outlook  Q2’18 DRAM Demand-Supply remain stable  Cash dividend of NT$ 10.88 billion (NT$ 3.5 ~ 3.62 per common share) will be proposed to the AGM on May 24, 2018  Nanya Technology Operation Focuses:  Expect ~48% YoY bit output in 2018, Q2’18 bit shipment guided for high teens % 

  20. Slide 20: Thanks & Questions

    Thanks & Questions April 17, 2018 © 2018 Nanya Technology Corp. 20

  21. Slide 21: Q1'18 Consolidated Income Statement

    Q1’18 Consolidated Income Statement Q1'18 Q4'17 Q1'17 QoQ YoY Amount: Million NT$ Unaudited Audited Audited Net Sales 18,797 100.0% 16,769 100.0% 12.1% 12,231 100.0% 53.7% Cost of Goods Sold 9,057 48.2% 8,427 50.3% 7,330 59.9% Gross Margin 9,741 51.8% 8,342 49.7% 16.8% 4,901 40.1% 98.8% SG&A Expense

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