Winbond Electronics Corp. · TWSE:2344

Winbond Electronics — Q2 2017 Earnings Presentation

27 slides from Winbond Electronics's earnings presentation, July 2017

  1. Slide 1: Winbond Electronics Corporation

    Winbond Electronics Corporation

  2. Slide 2: Safe Harbor Notice

    Safe Harbor Notice • This presentation contains forward-looking statements concerning, among other things, our financial condition, future expansion plans and business strategies. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These f

  3. Slide 3: Financial Results

    Financial Results

  4. Slide 4: 2Q17 Statement of Comprehensive Income - Consolidated

    2Q17 Statement of Comprehensive Income - Consolidated 2Q’17 1Q’17 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 11,411 100 10,425 100 986 9 Gross Profit 3,714 32 2,989 29 725 24 Operating Income 1,398 12 925 9 473 51 Pretax Income 1,449 13 883 8 566 64 Net Income 1,087 10 723 7 364 50

  5. Slide 5: 2Q17 Balance Sheet - Consolidated

    2Q17 Balance Sheet - Consolidated Jun. 30 ’17 Mar. 31 ’17 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 26,872 37 26,345 38 527 2 Net Fixed Assets 39,846 54 35,622 52 4,224 12 Total Assets 73,609 100 68,861 100 4,748 7 L/T Debt 7,984 11 6,642 10 1,342 20 Total Equity 46,210 63 47,

  6. Slide 6: 2Q17 Statement of Cash Flows - Consolidated

    2Q17 Statement of Cash Flows - Consolidated 2Q’17 1Q’17 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,333 2,045 288 Investing Cash Flow (5,383) (3,499) (1,884) Financing Cash Flow 2,812 (15) 2,827 Cash & Equivalents 5,903 6,124 (221) Depreciation and Amortization 1,451 1,391 60 C

  7. Slide 7: 2Q17 Statement of Comprehensive Income - Memory

    2Q17 Statement of Comprehensive Income - Memory 2Q’17 1Q’17 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 8,943 100 8,248 100 695 8 Gross Profit 2,616 29 2,099 25 517 25 Operating Income 1,127 13 781 9 346 44 Pretax Income 1,298 15 814 10 484 59 Net Income 990 11 687 8 303 44 EPS (NT$)

  8. Slide 8: 2Q17 Balance Sheet - Memory

    2Q17 Balance Sheet - Memory Jun. 30 ’17 Mar. 31 ’17 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 21,047 30 20,472 31 575 3 Net Fixed Assets 39,000 56 34,832 53 4,168 12 Total Assets 69,947 100 65,333 100 4,614 7 L/T Debt 7,984 11 6,642 10 1,342 20 Total Equity 44,944 64 45,932 70

  9. Slide 9: 2Q17 Statement of Cash Flows - Memory

    2Q17 Statement of Cash Flows-Memory 2Q’17 1Q’17 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 2,257 2,259 (2) Investing Cash Flow (5,320) (3,399) (1,921) Financing Cash Flow 2,805 0 2,805 Cash & Equivalents 3,476 3,734 (258) Depreciation and Amortization 1,385 1,326 59 CAPEX (5,320

  10. Slide 10: Revenue and GM Trend - Consolidated

    Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 12.0 35% 10.0 31% 32% 30% 8.0 29% 30% 28% 28% 28% 28% 6.0 4.0 11.4 25% 10.5 10.7 10.8 10.4 2.0 9.8 10.1 9.5 0.0 20% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Revenue Gross Profit GM% 10

  11. Slide 11: Revenue and GM Trend - Memory

    Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 10.0 29% 30% 8.0 28% 27% 25% 6.0 24% 24% 24% 24% 25% 4.0 8.6 8.9 8.2 8.5 8.2 8.0 8.2 20% 2.0 7.5 0.0 15% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Revenue Gross Profit GM% 11

  12. Slide 12: Y2017 CAPEX - Memory

    Y2017 CAPEX- Memory Purpose % (NT$ B) 17.0 New capacity & 18.0 process migration 57% 16.0 13.0 14.0 Fab C facility 20% 12.0 New technology 15% 10.0 Others 8% 8.0 4.8 3.9 Total 100% 6.0 3.0 2.1 4.0 2.0 0.0 2012 2013 2014 2015 2016 2017 (E) CAPEX(Cash Basis) as of 07/28/2017 12

  13. Slide 13: Winbond Business Update & Outlook

    Winbond Business Update & Outlook

  14. Slide 14: 2Q17 Memory Business Recap

    2Q17 Memory Business Recap QoQ YoY Revenue +8% +9% Gross Profit +25% +35%  Increasing demand in NTWK and industrial application contributed to revenue growth  Gross margin improved significantly both QoQ and YoY due to better product mix and price increase 14

  15. Slide 15: 2Q17 Revenue Breakdown by Application

    2Q17 Revenue Breakdown by Application Car & Industrial 19% Communication 30% Consumer 26% Computer 24% Car & Industrial Consumer Computer Communication QoQ + 14% QoQ + 10% QoQ + 9% QoQ + 3% YoY + 31% YoY + 18% YoY + 5% YoY - 6% NT$M NT$M NT$M NT$M 2,000 2,500 2,500 3,000 1,500 2,000 2,000 2,500 1,00

  16. Slide 16: 2Q17 Revenue Breakdown by Product

    2Q17 Revenue Breakdown by Product Revenue (NT$B) 8.9 9.0 8.5 8.6 8.0 8.2 8.2 8.2 8.0 7.5 7.0 36% 36% 37% 38% 45% QoQ YoY 37% 41% 36% 6.0 Flash +17% +36% 5.0 Specialty +5% -10% 4.0 51% 50% 50% 47% 44% 42% Mobile -5% +3% 3.0 54% 51% 2.0 1.0 14% 14% 15% 15% 13% 10% 12% 13% 0.0 3Q15 4Q15 1Q16 2Q16 3Q16

  17. Slide 17: 2Q17 Specialty DRAM Business

    2Q17 Specialty DRAM Business QoQ YoY Revenue +5% -10%  Revenue growth was constrained by limited capacity  Revenue declined YoY due to reduced capacity in DRAM  Gross margin slightly increased 17

  18. Slide 18: 2Q17 Mobile DRAM Business

    2Q17 Mobile DRAM Business QoQ YoY Revenue -5% +3%  Demand slightly dropped QoQ due to model change in customer side  Demand for low density Mobile DRAM increased  Expanding business in Display application 18

  19. Slide 19: 2Q17 Flash Memory Business

    2Q17 Flash Memory Business QoQ YoY Revenue +17% +36%  Strong demand along with better product mix and price increase  Growing demand for NOR Flash in diversified applications  Increase in content per box drives the demand of mid-to-high density NOR Flash 19

  20. Slide 20: Memory Market Outlook

    Memory Market Outlook  DRAM  Demand-Supply balance remains healthy  Increasing content per box in smart phones and servers  Slow technology migration & limited capacity expansion  Low-to-mid density DRAM market remain lukewarm along with mild increase in ASP.  NOR Flash  Supply shortage will

  21. Slide 21: Winbond Business Outlook

    Winbond Business Outlook  All wafer capacity is fully utilized due to strong demand from diversified applications and customers.  Wafer capacity will be expanded from 44K to 48K WPM in Q4’17 (26K DRAM + 22K Flash).  DRAM revenue in 2H’17 will be constrained by limited capacity, while 3x nm produc

  22. Slide 22: Winbond DRAM Bit Growth (2012~2018)

    Winbond DRAM Bit Growth (2012~2018) 1Gb-Equ. Bit Growth (Mill. Pcs) YoY (%)

  23. Slide 23: Winbond NOR Flash Bit Growth (2012~2018)

    Winbond NOR Flash Bit Growth (2012~2018) 1Gb-Equ. Bit Growth (Mill. Pcs) YoY (%)

  24. Slide 24: Expanding Product Portfolio in Code Storage Flash

    Expanding Product Portfolio in Code Storage Flash Code Storage Flash SiP NOR Flash + SLC NAND Flash SpiStack for flexible code/data storage NOR 1.2V SPI NOR Ultra low Vcc for low power Flash consumption Serial NAND Reduced pin count in SLC NAND NAND AG2 SLC Passed AEC-Q100 certification NAND

  25. Slide 25: Winbond Business Growth in SLC NAND

    Winbond Business Growth in SLC NAND Serial NAND ONFI NAND

  26. Slide 26: Worldwide Serial Flash Market Share

    Worldwide Serial Flash Market Share Winbond is Top 2 (34% Share) Peer A Winbond Peer B Peer C 40% 35% 33% 33% 33% 35% 33% 34% 30% 29% 30% 32% 32% 34% 29% 25% 20% 15% 14% 13% 14% 13% 12% 12% 12% 10% 10% 7% 8% 5% 5% 6% 0% 2012 2013 2014 2015 2016 Q1-17 Source from iHS 2017/July

  27. Slide 27: Worldwide NOR Flash Market Share

    Worldwide NOR Flash Market Share Winbond is Top 3 (20% Share) Peer A Peer B Winbond Peer C 30% 25% 25% 26% 26% 24% 23% 24% 22% 22% 21% 22% 20% 21% 20% 19% 18% 20% 18% 17% 15% 15% 17% 13% 16% 10% 12% 10% 5% 0% 2012 2013 2014 2015 2016 Q1-17 Source from iHS 2017/July

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