Slide 1: WIN Semiconductors 4Q2022 Investor Conference
WIN Semiconductors 4Q2022 Investor Conference February 2023 WIN Semiconductors Confidential
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 Semiconductors Confidential 3
Slide 4: Revenue & Margin Trend
Revenue & Margin Trend 4Q22 revenue was NT$3.5b, down 10% QoQ and 51% YoY. In 4Q22, our gross margin increased by 6.1 pp sequentially to 22.1% and operating margin increased by 5.6 pp to 0.5%. NT$M Quarterly revenue trend Quarterly margin trend 8,000 10% 50% 7,000 0% 40% 6,000 -10% 30% 5,000 -20
Slide 5: Earnings Trend
Earnings Trend In 4Q22, our net profit was impacted by non-operating losses including foreign exchange and the disposal of a plant by our subsidiary to adjust its operating scale, resulting a net loss of NT$177m, down 172% QoQ and 110% YoY. EPS came in at NT$-0.22, compared to NT$0.83 in 3Q22. Ear
Slide 6: Product Mix
Product Mix 4Q21 Others* 16% Wi-Fi 4Q22 5-10% Cellular Others* 50-55% 26% Infra. Cellular 20-25% 25-30% 3Q22 Wi-Fi 5-10% Others* 26% Cellular 30-35% Infra. 35-40% Wi-Fi 5-10% * Others: Revenue not attributable to main product segments and additional Infra. revenue being consolidated in accordance wi
Slide 7: 1Q23 Guidance
1Q23 Guidance We expect 1Q23 revenue to decline high-twenties QoQ. We expect 1Q23 gross margin to be around the level of low-teens. WIN Semiconductors Confidential 7
Slide 8: Financial Summary
FINANCIAL SUMMARY WIN Semiconductors Confidential 8
Slide 9: Consolidated Statements of Comprehensive Income - Quarterly
Consolidated Statements of Comprehensive Income - Quarterly WIN Semiconductors Confidential 9
Slide 10: Consolidated Statements of Comprehensive Income - YTD
Consolidated Statements of Comprehensive Income - YTD 2022Y Unit: NTD Million 2021Y YoY (unaudited) Net revenue 26,182 18,330 -30% Gross profit 9,770 4,720 -52% Gross margin (%) 37.3% 25.8% Operating expenses (3,347) (3,238) -3% Operating expenses rate (%) -13% -18% Operating income 6,423 1,482 -77%
Slide 11: Non-operating Items
Non-operating Items WIN Semiconductors Confidential 11
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets 2022/12/31 2021/12/31 2022/9/30 (Unit: NTD Million) Major Item (unaudited) $ % $ % $ % Cash and cash equivalents 16,332 22% 10,880 15% 10,380 15% Current financial assets at fair value through profit or loss 62 0.1% 600 1% 121 0.2% Notes and accounts receivable, net 2,718
Slide 13: Market Outlook
MARKET OUTLOOK WIN Semiconductors Confidential 13
Slide 14: 5G Smartphone – Adoption Rate Growing
5G Smartphone – Adoption Rate Growing 5G smartphone shipment will surpass 4G in 2023. Higher PA content in 5G phones compared to 4G. 5G MIMO requirement in UHB will drive the growth. 800 55% 700 47% 600 41% 500 M units 400 300 20% 200 100 1% 2019 2020 2021 2022e 2023e 5G penetration rate 5G sm
Slide 15: Infrastructure – GaN, LNA & Driver Amplifiers
Infrastructure – GaN, LNA & Driver Amplifiers 5G infrastructure deployment continues to address insatiable demand on data traffic. WIN’s GaN and GaAs technology solutions have been increasingly adopted for base station applications using GaN, pHEMT, HBT, and IPD. WIN Semiconductors Confidential
Slide 16: Wi-Fi 6/6E Will Proliferate in 2023 Onward
Wi-Fi 6/6E Will Proliferate in 2023 Onward Market growth through 2023-2027, reaching to 5.7 billion units in 2027. WIN anticipates to increase share for mobile Wi-Fi in 2023. Source: TSR, 2022 Wireless Connectivity Market Analysis WIN Semiconductors Confidential 16
Slide 17: Deploy Wi-Fi 7 Design-in in 2023
Deploy Wi-Fi 7 Design-in in 2023 Opportunity for GaAs content increase in both cellular and router due to increased frequency band and challenging linearity requirement. GaAs shows significant advantages on linearity (1K to 4K QAM) & operating frequency for complex modulation signal. More MIMO
Slide 18: Satellite – Versatile Service is Booming
Satellite – Versatile Service is Booming New technologies engagement is going on with multiple satellite customers. abandon FCC approved at Dec. 1, 2022 WIN Semiconductors Confidential 18
Slide 19: Automotive
Automotive WIN is a leading company for VCSEL & 3D sensing technologies. Increased safety adoption of 3D sensing for both inside and outside vehicle use, such as DMS/OMS and LiDAR for ADAS. V2X, wireless network demand growth for automotive market. ADAS system Cellular/Satellite Network DMS/OM
Slide 20: Advanced Technology Development for Future Markets
ADVANCED TECHNOLOGY DEVELOPMENT FOR FUTURE MARKETS WIN Semiconductors Confidential 20
Slide 21: 3D Sensing
3D Sensing SWIR VR AR Bio-metric WIN Semiconductors Confidential 21
Slide 22: Optical Communications
Optical Communications Data traffic growth drives the photonics components from discrete to integrated PIC solution. Data Center WIN Semiconductors Confidential 22
Slide 23: VCSEL Markets
VCSEL Markets Mobile, Consumer, Optical Communication are the drivers. WIN Semiconductors Confidential 23
Slide 24: Filter – A Strategic Portfolio
Filter – A Strategic Portfolio A newly added process into WIN’s broad technology portfolio. WIN devotes to empower mobile customers’ competitiveness with filter development as a strategic technology. WIN Semiconductors Confidential 24
Slide 25: Q&A
Q&A For more information regarding WIN www.winfoundry.com For all inquiries, suggestions, and comments ir@winfoundry.com WIN Semiconductors Confidential 25