Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — Q3 2018 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Oct 29, 2018
Slide 1: 2018 Q3 Investor Conference
2018 Q3 Investor Conference Oct 29, 2018
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: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2018Q3 2018Q2 QoQ 2017Q3 YoY Net Sales 13,681 13,485 1% 12,550 9% Gross Profit 5,250 5,251 0% 4,628 13% Gross Margin 38% 39% n.a. 37% n.a. Operating Income 2,212 2,458 -10% 2,099 5% Operating Margin 16% 18% n.a. 17% n.a. Net Non-Operating
Slide 5: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 14.0 13.7 45% 13.2 13.5 12.5 12.2 12.0 11.4 10.7 10.8 39% 38% 40% 10.0 10.4 37% 38% 38% 8.0 32% 35% 6.0 28% 29% 30% 28% 4.0 25% 2.0 0.0 20% 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 Revenue Gross Profit 5
Slide 6: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Sep. 30 '18 % Jun. 30 '18 % Sep. 30 '17 % Cash 16,571 17% 9,345 10% 5,278 7% Inventory(Net) 9,906 10% 9,339 10% 7,950 10% Property, Plant and Equipment 49,131 50% 48,392 52% 42,180 55% Total Assets 98,760 100% 92,782 100% 77,106 100% L/T Liabilities 16,694 17
Slide 7: Statement of Cash Flows - Consolidated
Statement of Cash Flows - Consolidated Unit: NT$ M 2018Q3 2018Q2 QoQ 2017Q3 YoY Operating Cash Flow 3,178 3,410 -7% 3,056 4% Depreciation & Amortization 1,974 1,837 7% 1,547 28% Investing Cash Flow (1,682) (4,015) -58% (3,072) -45% CAPEX (1,656) (3,858) -57% (3,579) -54% Financing Cash Flow 5,728 (1
Slide 8: Statement of Comprehensive Income - Memory
Statement of Comprehensive Income - Memory Unit: NT$ M 2018Q3 2018Q2 QoQ 2017Q3 YoY Net Sales 10,903 10,681 2% 10,077 8% Gross Profit 4,077 4,097 0% 3,495 17% Gross Margin 37% 38% n.a. 35% n.a. Operating Income 1,932 2,174 -11% 1,801 7% Operating Margin 18% 20% n.a. 18% n.a. Net Non-Operating Income
Slide 9: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 12.0 10.9 10.0 10.8 10.7 10.1 9.9 37% 38% 40% 37% 8.9 36% 8.0 8.6 35% 8.2 35% 29% 6.0 30% 25% 4.0 24% 25% 2.0 20% 0.0 15% 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 Revenue Gross Profit GM% 9
Slide 10: Balance Sheet - Memory
Balance Sheet - Memory Unit: NT$ M Sep. 30 '18 % Jun. 30 '18 % Sep. 30 '17 % Cash 13,898 15% 6,746 8% 3,049 4% Inventory(Net) 8,327 9% 7,659 9% 6,410 9% Property, Plant and Equipment 48,220 51% 47,516 54% 41,330 56% Total Assets 95,000 100% 88,653 100% 73,487 100% L/T Liabilities 16,694 18% 6,774 8%
Slide 11: Statement of Cash Flows - Memory
Statement of Cash Flows-Memory Unit: NT$ M 2018Q3 2018Q2 QoQ 2017Q3 YoY Operating Cash Flow 3,260 2,903 12% 3,136 4% Depreciation & Amortization 1,904 1,771 8% 1,480 29% Investing Cash Flow (2,042) (3,778) -46% (2,971) -31% CAPEX (1,609) (3,817) -58% (3,538) -55% Financing Cash Flow 5,934 (1,361) n.
Slide 12: Y2018 Memory CAPEX
Y2018 Memory CAPEX (NT$ B) CAPEX (Cash Basis) as of 09/30/2018 25 17.8 20 15.2 13 15 10 4.8 3.9 5 2.1 0 2013 2014 2015 2016 2017 2018 (E) Note: Deferred project payment resulted in reduced CAPEX from NT$ 19.2 to 17.8 billion in 2018 13
Slide 13: Winbond Business Recap & Outlook
Winbond Business Recap & Outlook
Slide 14: 2018 Q3 Winbond Business Recap
2018 Q3 Winbond Business Recap Revenue reached record high. Wafer ASP kept flat QoQ. Stable DRAM business in 3Q18. NOR Flash had price pressure from China spot market while other segments/territories remained healthy. SLC NAND was under price competition. BoD approved NT$19.5 billion CAPEX
Slide 15: 3Q18 Revenue Breakdown by Product
3Q18 Revenue Breakdown by Product Revenue (NT$B) 12 11% 10% 10% 10 12% 13% 14% 13% 8 15% 15% 36% 42% 43% 40% 40% 6 42% 50% 47% 43% 7% 6% 8% 7% 8% 4 5% 4% 4% 4% 43% 45% 39% 40% 2 40% 40% 33% 34% 37% 0 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 NOR NAND Specialty Mobile 15
Slide 16: 3Q18 Revenue Breakdown by Application
3Q18 Revenue Breakdown by Application Car & Industrial Communication 17% 27% Consumer 30% Computer 26% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ +7% QoQ +7% QoQ + 6% QoQ - 7% NT$M 2,000 NT$M NT$M NT$M 3,500 3,500 3,000 1,500 3,000 3,000 2,500 2,50
Slide 17: DRAM Memory Business
DRAM Memory Business 38nm DDR3 DRAM revenue continued to rise in Q3 Revenue and Bit growth both increased due to stable demand and migration. 7% 15% 24% 85% 77% 68% 8% 8% 8% 2018Q1 2018Q2 2018Q3 65nm 46nm 38nm 17
Slide 18: Flash Memory Business
Flash Memory Business Flat performance QoQ - Weak China market offset the seasonal growth 17% 15% 17% 55% 54% 58% 28% 29% 27% 2018Q1 2018Q2 2018Q3 90nm 58nm 46nm 18
Slide 19: Market and Business Outlook
Market and Business Outlook Overall market Uncertainty on global economy. Overall demands exist, not pessimistic, closely monitoring. Winbond Business Strengths on R&D, delivery, and channels promised longevity to customers, which favor Winbond maintaining solid customers relationship and st
Slide 20: Market and Business Outlook
Market and Business Outlook DRAM Industrial cycle driven by emerging multiple applications will stimulate demand and maintain relatively stable pricing pattern than the past. 25nm 2G DDR3 into mass production in 4Q18. Code Storage Flash Diversifying sales territories and product mix to grow
Slide 21: Future Development & Opportunities
Future Development & Opportunities High Speed and High Quality Serial NAND in Automotive Transforming High-Density Code Storage with Serial Flash Memory Ultra-Low-Power DRAM: A “Green” Memory in IoT Devices 1.2V Ultra-Low-Voltage Flash and High Speed Flash Optimizing the Edge Node Performanc
Slide 22: Thank You
2018 Q3 Investor Conference Thank You Oct 29, 2018