Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — Q3 2015 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Oct 27, 2015
Slide 1: Winbond Electronics Corporation
Winbond Electronics Corporation
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: 3Q15 Statement of Comprehensive Income - Consolidated
3Q15 Statement of Comprehensive Income - Consolidated 3Q’15 2Q’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 9,534 100 9,252 100 282 3 Gross Profit 2,685 28 2,954 32 (269) (9) Operating Income 820 9 993 11 (173) (17) Pretax Income 898 10 1,055 11 (157) (15) Net Income 731 8 863 9 (1
Slide 5: 3Q15 Balance Sheet - Consolidated
3Q15 Balance Sheet - Consolidated Sep. 30 ’15 Jun. 30 ’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 24,737 39 23,997 38 740 3 Net Fixed Assets 32,485 51 32,869 52 (384) (1) Total Assets 63,637 100 63,625 100 12 0 L/T Debt 10,017 16 10,012 16 5 0 Total Equity 39,474 62 39,637 6
Slide 6: 3Q15 Statement of Cash Flows - Consolidated
3Q15 Statement of Cash Flows - Consolidated 3Q’15 2Q’15 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 1,746 1,696 50 Investing Cash Flow (1,022) (1,776) 754 Financing Cash Flow (781) (658) (123) Cash & Equivalents 6,969 6,915 54 Depreciation and Amortization 1,480 1,497 (17) CAPEX
Slide 7: 3Q15 Statement of Comprehensive Income - Memory
3Q15 Statement of Comprehensive Income - Memory 3Q’15 2Q’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 7,525 100 7,304 100 221 3 Gross Profit 1,792 24 2,085 29 (293) (14) Operating Income 635 8 815 11 (180) (22) Pretax Income 796 11 940 13 (144) (15) Net Income 673 9 801 11 (128) (1
Slide 8: 3Q15 Balance Sheet - Memory
3Q15 Balance Sheet - Memory Sep. 30 ’15 Jun. 30 ’15 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 19,308 32 18,752 31 556 3 Net Fixed Assets 31,793 53 32,197 53 (404) (1) Total Assets 60,472 100 60,426 100 46 0 L/T Debt 10,017 17 10,012 17 5 0 Total Equity 38,286 63 38,525 64 (239
Slide 9: 3Q15 Statement of Cash Flows - Memory
3Q15 Statement of Cash Flows-Memory 3Q’15 2Q’15 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,046 1,469 577 Investing Cash Flow (986) (1,742) 756 Financing Cash Flow (701) (658) (43) Cash & Equivalents 4,314 3,955 359 Depreciation and Amortization 1,418 1,436 (18) CAPEX 985 1,214
Slide 10: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 10.0 32% 32% 35% 31% 28% 28% 30% 26% 28% 8.0 21% 25% 6.0 20% 15% 4.0 9.7 9.9 9.6 9.7 9.5 9.3 10% 2.0 8.8 8.3 5% 0.0 0% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Revenue Gross Profit GM% 10
Slide 11: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 10.0 35% 8.0 28% 29% 29% 30% 24% 25% 24% 25% 6.0 21% 20% 16% 4.0 15% 8.1 8.0 8.0 7.8 10% 2.0 7.1 7.3 7.5 6.7 5% 0.0 0% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Revenue Gross Profit GM% 11
Slide 12: Y2015 Memory CAPEX
Y2015 Memory CAPEX (NT$ B) 13.0 14.0 12.0 10.0 7.4 8.0 6.0 3.0 4.4 6.0 4.0 2.1 2.0 0.0 2010 2011 2012 2013 2014 2015 (E) CAPEX(Cash Basis) as of 10/27/2015
Slide 13: Winbond Business Update & Outlook
Winbond Business Update & Outlook
Slide 14: 3Q15 Memory Business Recap
3Q15 Memory Business Recap QoQ YoY Revenue +3% -7% Gross Profit -14% -10% Revenue slightly increased due to demand in HDD and TV Gross margin suffered a loss from scrap of defective products 14
Slide 15: 3Q15 Revenue Breakdown by Application
3Q15 Revenue Breakdown by Application Car & Industrial 12% Communication 30% Consumer 29% Computer 29% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ + 15% QoQ + 8% QoQ + 7% QoQ - 8% YoY + 42% YoY - 12% YoY - 11% YoY - 12% NT$M NT$M NT$M NT$M 2,402 2,3
Slide 16: 3Q15 Revenue Breakdown by Product
3Q15 Revenue Breakdown by Product Revenue (NT$B) 9.0 8.1 8.0 8.0 7.8 8.0 7.3 7.5 7.1 7.0 6.7 35% 35% 35% QoQ YoY 36% 36% 6.0 36% 36% Flash +4% -4% 38% 5.0 Specialty +8% -7% 4.0 54% 53% 52% Mobile -15% -16% 3.0 52% 51% 52% 54% 51% 2.0 1.0 11% 12% 13% 11% 12% 13% 12% 10% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1
Slide 17: 3Q15 Revenue Breakdown by Geometry
3Q15 Revenue Breakdown by Geometry Specialty DRAM Mobile DRAM Flash Memory Mobile DRAM 100% 100% 100% 6% 8% 80% 80% 80% 56% 54% 57% 53% 60% 79% 84% 60% 60% 40% 40% 40% 44% 40% 20% 20% 20% 37% 39% 21% 16% 6% 0% 0% 0% 2015Q2 2015Q3 2015Q2 2015Q3 2015Q2 2015Q3 65nm 46nm 90nm 65nm 46nm 90nm 58nm 46nm No
Slide 18: 3Q15 Specialty DRAM Business
3Q15 Specialty DRAM Business QoQ YoY Revenue +8% -7% Revenue increased due to growth in automotive electronics 46nm products accounted for 84% Specialty DRAM revenue (vs. 79% in 2Q15)
Slide 19: 3Q15 Mobile DRAM Business
3Q15 Mobile DRAM Business QoQ YoY Revenue -15% -16% Suffered decreasing demand from existing mobile device customers Demand from new tier-1 customer is delayed to Q4 due to longer-than-expected system qualification
Slide 20: 3Q15 Flash Memory Business
3Q15 Flash Memory Business QoQ YoY Revenue +4% -4% Revenue increased due to surging demand in networking 1Gb Code Storage Flash accounted for 8% Flash revenue (vs. 6% in 2Q15)
Slide 21: Applications Demand Forecast
Applications Demand Forecast Application 2013 2014 2015 2016 Smartphone 38% 13% 10% 8% PC -10% -2% -8% -7% Tablet 75% 7% -10% 10% TV -1% 3% 0% 0% STB 8% 7% -5% -5% HDD -4% 1% -14% -13% Wearable 188% 66% Source: Winbond (Oct-2015)
Slide 22: Market and Business Outlook
Market and Business Outlook Overall market The uncertainty of global economy and lack of new killer products influence consumption of electronic products Winbond business Relatively stable due to diversifications in products, markets and customers, and focus on tier-1 customers in each segme