Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — Q1 2017 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Apr 28, 2017
Slide 1: 1Q'17 Investor Conference
1Q’ 17 Investor Conference Apr 28, 2017
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: 1Q17 Statement of Comprehensive Income - Consolidated
1Q17 Statement of Comprehensive Income - Consolidated 1Q’17 4Q’16 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 10,425 100 10,775 100 (350) (3) Gross Profit 2,989 29 3,041 28 (52) (2) Operating Income 925 9 937 9 (12) (1) Pretax Income 883 8 988 9 (105) (11) Net Income 723 7 871 8 (148
Slide 5: 1Q17 Balance Sheet - Consolidated
1Q17 Balance Sheet - Consolidated Mar. 31 ’17 Dec. 31 ’16 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 26,345 38 27,260 40 (915) (3) Net Fixed Assets 35,622 52 34,373 51 1,249 4 Total Assets 68,861 100 67,989 100 872 1 L/T Debt 6,642 10 6,638 10 4 0 Total Equity 47,267 69 45,221
Slide 6: 1Q17 Statement of Cash Flows - Consolidated
1Q17 Statement of Cash Flows - Consolidated 1Q’17 4Q’16 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,045 3,103 (1,058) Investing Cash Flow (3,499) (2,075) (1,424) Financing Cash Flow (15) (1,762) 1,747 Cash & Equivalents 6,124 7,684 (1,560) Depreciation and Amortization 1,391 1,
Slide 7: 1Q17 Statement of Comprehensive Income - Memory
1Q17 Statement of Comprehensive Income - Memory 1Q’17 4Q’16 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 8,248 100 8,585 100 (337) (4) Gross Profit 2,099 25 2,094 24 5 0 Operating Income 781 9 761 9 20 3 Pretax Income 814 10 936 11 (122) (13) Net Income 687 8 819 10 (132) (16) EPS (NT
Slide 8: 1Q17 Balance Sheet - Memory
1Q17 Balance Sheet - Memory Mar. 31 ’17 Dec. 31 ’16 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 20,472 31 21,270 33 (798) (4) Net Fixed Assets 34,832 53 33,608 52 1,224 4 Total Assets 65,333 100 64,399 100 934 1 L/T Debt 6,642 10 6,638 10 4 0 Total Equity 45,932 70 43,921 68 2,0
Slide 9: 1Q17 Statement of Cash Flows - Memory
1Q17 Statement of Cash Flows-Memory 1Q’17 4Q’16 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,259 2,792 (533) Investing Cash Flow (3,399) (1,895) (1,504) Financing Cash Flow 0 (1,766) 1,766 Cash & Equivalents 3,734 4,874 (1,140) Depreciation and Amortization 1,326 1,322 4 CAPEX (
Slide 10: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 12.0 35% 32% 31% 10.0 30% 28% 28% 28% 29% 30% 28% 8.0 6.0 25% 4.0 10.5 10.7 10.8 10.4 20% 9.8 10.1 2.0 9.5 9.3 0.0 15% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Revenue Gross Profit GM% 10
Slide 11: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 10.0 29% 30% 28% 8.0 27% 25% 24% 24% 6.0 24% 24% 25% 4.0 8.6 8.5 8.2 8.2 8.2 20% 7.5 8.0 2.0 7.3 0.0 15% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Revenue Gross Profit GM% 11
Slide 12: Y2017 CAPEX - Memory
Y2017 CAPEX- Memory Purpose % (NT$ B) 17.4 New capacity & 18.0 process migration 53% 16.0 13.0 Fab C facility 25% 14.0 12.0 New technology 17% 10.0 Others 5% 8.0 Total 100% 4.8 6.0 3.9 3.0 2.1 4.0 2.0 0.0 2012 2013 2014 2015 2016 2017 (E) CAPEX(Cash Basis) as of 04/28/2017
Slide 13: Winbond Business Update & Outlook
Winbond Business Update & Outlook
Slide 14: 1Q17 Memory Business Recap
1Q17 Memory Business Recap QoQ YoY Revenue -4% +1% Gross Profit +0% -4% Revenue slightly decreased due to unfavorable exchange rate and capacity limitation Exchange rate impacted gross margin Business performance was stabilized by price increase, better product mix and cost down. 14
Slide 15: 1Q17 Revenue Breakdown by Application
1Q17 Revenue Breakdown by Application Car & Industrial 18% Communication 32% Consumer 26% Computer 24% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ - 10% QoQ - 9% QoQ - 6% QoQ + 7% YoY + 19% YoY - 1% YoY - 0% YoY - 6% NT$M 1,465 NT$M NT$M 1,968 1,960
Slide 16: 1Q17 Revenue Breakdown by Product
1Q17 Revenue Breakdown by Product Revenue (NT$B) 8.6 9.0 8.5 8.0 8.2 8.2 8.2 8.0 7.5 7.3 7.0 36% 36% 37% 38% QoQ YoY 37% 41% 36% 6.0 36% Flash +4% +14% 5.0 Specialty -11% -14% 4.0 51% 50% 50% 47% 44% Mobile -1% +22% 3.0 52% 54% 51% 2.0 1.0 14% 14% 15% 15% 12% 10% 12% 13% 0.0 2Q15 3Q15 4Q15 1Q16 2Q16
Slide 17: 1Q17 Specialty DRAM Business
1Q17 Specialty DRAM Business QoQ YoY Revenue -11% -14% Revenue decreased due to reduced capacity (re- located to Flash) Reduced demand in TV and STB due to model change in customers Improved gross margin with better product mix
Slide 18: 1Q17 Mobile DRAM Business
1Q17 Mobile DRAM Business QoQ YoY Revenue -1% +22% Significant YoY revenue growth driven by business in Handheld and Display Relative flat revenue QoQ due to seasonality
Slide 19: 1Q17 Flash Memory Business
1Q17 Flash Memory Business QoQ YoY Revenue +4% +14% Demand increased in multiple applications, especially in display and handheld devices Content per box in various devices continued increasing
Slide 20: Memory Market Outlook
Memory Market Outlook DRAM Content increase and upcoming hot season drive strong demand in high density DRAM, consuming significant portion of DRAM capacity. Supply-demand situation in medium and low density DRAM is relatively stable with slight price increase NOR Flash Limited supply from
Slide 21: Winbond Business Outlook
Winbond Business Outlook Optimizing customer/product mix in value-add applications for “stable business and profit growth” Continue to increase wafer capacity and upgrade technologies in the coming years to support business growth Focus on DRAM and code-Storage Flash products with special prod
Slide 22: Questions & Answers
Questions & Answers Company website • Winbond: www.winbond.com