Globalwafers Co., Ltd. · TPEX:6488

Globalwafers — Q3 2020 Earnings Presentation

38 slides from Globalwafers's earnings presentation, November 2020

Slide 2: Disclaimer
Disclaimer This presentation has been prepared by GlobalWafers Co., Ltd. (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement
Slide 3: Executive Comments
Executive Comments  Q320  Semiconductor market has remained largely resistant to global macroeconomic headwinds.  Sequential improvement in revenue and shipment QoQ.  Utilization  8” – good  SOI – improving  12” – hit an all-time record high on both EPI and Polished Wafers, demands for 12” ad
Slide 4: Outlook
 Outlook  Continue QoQ revenue growth in Q4.  Substantial market uncertainty remains for the rest of the year: FX volatility, pandemic concerns, geopolitical issues.  Automotive industry is recovering from 2H20.  2021 semiconductor market will grow again!  SiC & GaN  Despite the short-term im
Slide 5: Industry shifts and geopolitical responses
 Industry shifts and geopolitical responses  Semiconductor companies are reconfiguring their supply chains to improve resiliency, local production and supply chain are prioritized. → With extensive global footprint, GlobalWafers is well-positioned to supply GLOBALLY and LOCALLY.  Strategy - • Str
Slide 7: Latest World Economic Outlook
Latest World Economic Outlook  IMF estimates that the global economy will contract by 4.4% this year, a slight increase over it’s June prediction (-4.9%), and growth in 2021 is projected to rebound to 5.2%,  Though many economies have started to recover at a faster pace than anticipated after reop
Slide 8: Global Silicon Wafer Area Shipments
Global Silicon Wafer Area Shipments  Global silicon wafer shipments are set to increase 2.4% YoY in 2020, with growth continuing in 2021 and shipments reaching a record high in 2022 according to research report. Global Silicon* Wafer Area Shipments (Millions of square inches) 20,000 Wafer Area Ship
Slide 9: COVID-19 Drives Rise in Global Fab Equipment Spending
COVID-19 Drives Rise in Global Fab Equipment Spending  Soaring pandemic-inspired demand for chips, rising demand for semiconductors for datacenter infrastructures and server storage along with the buildup of safety stock as U.S.-China trade tensions intensify will drive an 8% increase in global fab
Slide 10: 5G Subscriptions Worldwide Forecast
5G Subscriptions Worldwide Forecast  5G subscriptions are forecast to increase worldwide from 2019 to 2025. The number of 5G mobile subscriptions worldwide is forecast to exceed 2.7 billion at 197% CAGR by 2025, with North East Asia, North America, and Western Europe having the most 5G subscription
Slide 11: Public Cloud Computing Services Market Forecast
Public Cloud Computing Services Market Forecast  The worldwide public cloud services market is forecast to grow 6.3% in 2020 to total $257.9 bn and by 2022 market revenue is forecast to exceed 364 bn, representing 16.4% CAGR from 2018 to 2022. Cloud spending in many regions is expected to grow rapi
Slide 12: Automotive IC with Strongest CAGR Through 2024
Automotive IC with Strongest CAGR Through 2024  As shown in the research report, the automotive IC market share has displayed a steady increase and is forecast to register the strongest 2019-2024 CAGR of any of the end-use segments at 9.7%. IC Market Share by System Type (2003~2024) Industrial/Othe
Slide 13: Roadmap for SiC Power Devices
Roadmap for SiC Power Devices  The benefits of SiC devices built on fundamental material benefits of high breakdown field and thermal conductivity drive the wide deployments in numerous applications and its market revenue is expected to grow quickly in the near future. Roadmap for SiC Power Devices
Slide 14: Prospering SiC Driven by Automotive Applications
Prospering SiC Driven by Automotive Applications  In the prospering SiC power market, the automotive segment is undoubtedly the foremost driver, and as such will hold more than 50% of total device market share in 2025. Power SiC Device Market Revenue Source: Yole, June, 2020 © GlobalWafers Co., Ltd
Slide 15: SiC - Revolutionizing the Electric Vehicles
SiC - Revolutionizing the Electric Vehicles SiC Advantages in Electric Vehicles Smaller SiC’s great conductivity minimizes transmission Battery loss and reduces battery size. Si SiC Reduce SiC eliminates complex and heavy cooling systems Weight on vehicles, making the total car weight lighter. Si Si
Slide 16: SiC Positioning within an EV/HEV
SiC Positioning within an EV/HEV  Automakers launched 143 new electric vehicles—105 BEVs and 38 plug-in hybrid electric vehicles (PHEVs)—in 2019, and plan to introduce around 450 additional models by 2022.  The number of automakers applying SiC-based components has dramatically increased. SiC’s pr
Slide 17: SiC Adoption in Automotive Companies
SiC Adoption in Automotive Companies  SiC sets new standards for switching speed, heat loss, and size, and these characteristics translate into fewer components for use in high-voltage electronics, as well as reduced complexity and cost. Automakers are gearing up to adopt SiC technology in their dr
Slide 18: Power GaN Device Market Forecast
Power GaN Device Market Forecast  Driven by consumer fast-charger applications, power GaN device market growth will be in the range of 167% Y/Y in 2019, with a market value of more than US$700 million in 2025. However, due to the COVID-19 outbreak, smartphone production is estimated to drop 20% in
Slide 20: Financial Highlights
Financial Highlights  Q320  Sequential improvement in revenue and shipment (NT$mn) Q320 Q220 Q120 Q320 vs. Q220 Q220 vs. Q120 Revenue 14,006 13,701 13,515 2.2% 1.4%  Good Profits despite of COVID-19  EBITDA %: 40.0% (YoY : 1.9%)  Net Profit %: 24.2% (YoY : 0.9%)  EPS: NTD 7.78 (YoY : NTD 0.14)
Slide 21: Financial Highlight : Q320 vs. Q220
Financial Highlight : Q320 vs. Q220 (NT$mn) Q320 Q220 QoQ Revenue 14,006 13,701 2.2% EBITDA*1 5,602 5,609 -0.1% EBITDA % 40.0% 40.9% -0.9% EBIT 4,062 4,344 -6.5% Operating Profit 4,078 4,229 -3.6% Operating Profit % 29.1% 30.9% -1.8% Net Profit 3,388 3,397 -0.3% Net Profit % 24.2% 24.8% -0.6% EPS 7.
Slide 22: Financial Highlight : Q320 vs. Q319
Financial Highlight : Q320 vs. Q319 (NT$mn) Q320 Q319 YoY Revenue 14,006 14,303 -2.1% EBITDA*1 5,602 5,453 2.7% EBITDA % 40.0% 38.1% 1.9% EBIT 4,062 4,207 -3.4% Operating Profit 4,078 4,171 -2.2% Operating Profit % 29.1% 29.2% -0.1% Net Profit 3,388 3,328 1.8% Net Profit % 24.2% 23.3% 0.9% EPS NT$7.
Slide 23: Financial Highlight : 3Q20 vs. 3Q19 (accumulated)
Financial Highlight : 3Q20 vs. 3Q19 (accumulated) (NT$mn) 3Q20 3Q19 YoY Revenue 41,222 44,588 -7.6% EBITDA*1 16,226 17,689 -8.3% EBITDA % 39.4% 39.7% -0.3% EBIT 12,251 14,130 -13.3% Operating Profit 12,112 14,044 -13.8% Operating Profit % 29.4% 31.5% -2.1% Net Profit 9,666 10,727 -9.9% Net Profit %
Slide 24: Revenue & Gross Margin
Revenue & Gross Margin Revenue & Gross Margin (NT$mn) Revenue GM % 15,624 15,591 14,694 15,162 41.0% 14,303 13,506 13,70114,006 14,368 39.0% 40.1% 13,910 38.5% 13,515 37.8% 38.2% 38.6% 37.2% 37.0% 36.5% 12,448 36.2% 11,978 11,205 30.4% 10,581 26.9% 26.3% 24.4% 24.6% 23.0% 20.0% 6,611 18.2% 4,266 3,6
Slide 25: EBITDA & EPS
EBITDA & EPS EBITDA EPS (NT$mn) (NT$) EBITDA EBITDA to Revenue 31.18 31.35 22,712 22,648 38.5% 39.0% 39.4% 22.21 16,226 26.0% 25.7% 26.4% 26.4% 12,221 12.68 16.4% 6.14 6.60 5.80 4,053 4,087 4,046 3,025 2.54 2013 2014 2015 2016 2017 2018 2019 3Q20* 2013 2014 2015 2016 2017 2018 2019 3Q20* Note: 3Q20
Slide 26: Financial Leverage
Financial Leverage  Sufficient cash makes GlobalWafers capable of sustainable development.  Increasing bank loan for dividend payment reflects GWC’s commitment to share the constant growth with shareholders. Cash Structure and Bank Loan (NT$mn) Bank Loan Restricted Cash Other Cash Prepayment 50,00
Slide 27: Income Statement
Income Statement Income Statement (NT$mn) 2013 2014 2015 2016 2017 2018 2019 3Q20* Revenue 15,570 15,922 15,310 18,427 46,213 59,064 58,094 41,222 Growth (%) - 2.3% -3.8% 20.4% 150.8% 27.8% -1.6% - Gross Profit 3,663 3,728 4,073 4,130 11,808 22,299 22,847 15,436 Gross Profit Margin (%) 23.5% 23.4% 2
Slide 28: Balance Sheet
Balance Sheet Balance Sheet (NT$mn) 2013 2014 2015 2016 2017 2018 2019 3Q20 Assets Cash and cash equivalents 1,536 2,685 3,662 5,628 18,794 35,214 32,822 26,930 Account receivable 3,165 3,694 4,538 7,642 7,869 9,226 8,140 8,313 Inventories 3,291 2,829 3,262 7,307 7,347 7,040 6,849 7,369 Property, pl
Slide 29: ESG Highlights
ESG Highlights • Responsible Growth is our principle in business practices. • GlobalWafers aims at being at the forefront of global responsibility in the aspects of environment, health & safety and corporate governance. © GlobalWafers Co., Ltd. All rights reserved 29
Slide 30: Sustainable Environment - Electricity
Sustainable Environment - Electricity  By introducing energy saving measures, GlobalWafers lowers power consumption successfully without impeding it from enlarging production ability, we have achieved 1% power saving compared to last year as of now.  Optimizing electricity consumption group wide h
Slide 31: Improvement on Electricity Consumption
Improvement on Electricity Consumption  Though ingot growing and wafering consume a great deal of energy, GlobalWafers dedicates in enhancing energy efficiency and achieves same revenue with less energy. Electricity Needed to Generate NTD100mn Revenue Unit: MWh 3,000 2,500 2,421 2,000 1,927 1,835 1
Slide 32: Committed to Green Energy
Committed to Green Energy  To fulfill the commitment to sustainable development, GWC cooperates with its parent company, SAS, on solar installation of 3,474 kW* which could reduce 1,842 tons of CO2 emission every year. Solar System Project Ground–mounted PV Systems Phase Ⅱ- 1,474kW1 Ground–mounted
Slide 33: Sustainable Environment – Waste
Sustainable Environment – Waste  GlobalWafers adopts circular economy solutions to reduce costs and environmental impact.  Almost 80% of the waste could be reused and regenerated as ingredients by other industries.  Our relentless efforts make us outshining in the industry and are awarded the Hig
Slide 34: Charity and Environment Protection
Charity and Environment Protection  GlobalWafers devotes our love to the ones that in need via donations. We also extend our care to environment through corporate volunteers by a series of activities like beach cleaning. 2020 Aug. Nanliao Beach Cleaning 2020 Sep. Donation to Rural Tribe 2020 Oct. A
Slide 35: Ethical Business Practice
Ethical Business Practice Achieve compliance with Codes of Formulate guidelines to local legal requirements Legal be observed by all and international Compliance Ethical Conduct directors, managers and standards staff members. Set up grievance system Grievance Risk Establish risk assessment to preve
Slide 36: Diversity and Inclusion
Diversity and Inclusion  GlobalWafers is committed to supporting gender equality, advancing women in the workplace globally.  Women in our global workforce is 24% overall, 14% on our board. Percentage of Women in Our Global Workforce Percentage of Women on Our Board (%) Female Male Taiwan, 14% 17%

GlobalWafers — Q3 2020 Earnings Presentation on 6ix

Globalwafers — Q3 2020 Earnings Presentation

Slide 1: GlobalWafers (6488 TT) Q320 Results Presentation

Slide 2: Disclaimer

Slide 3: Executive Comments

Slide 4: Outlook

Slide 5: Industry shifts and geopolitical responses

Slide 6: Industry Overview

Slide 7: Latest World Economic Outlook

Slide 8: Global Silicon Wafer Area Shipments

Slide 9: COVID-19 Drives Rise in Global Fab Equipment Spending

Slide 10: 5G Subscriptions Worldwide Forecast

Slide 11: Public Cloud Computing Services Market Forecast

Slide 12: Automotive IC with Strongest CAGR Through 2024

Slide 13: Roadmap for SiC Power Devices

Slide 14: Prospering SiC Driven by Automotive Applications

Slide 15: SiC - Revolutionizing the Electric Vehicles

Slide 16: SiC Positioning within an EV/HEV

Slide 17: SiC Adoption in Automotive Companies

Slide 18: Power GaN Device Market Forecast

Slide 19: Q320 Performance Update

Slide 20: Financial Highlights

Slide 21: Financial Highlight : Q320 vs. Q220

Slide 22: Financial Highlight : Q320 vs. Q319

Slide 23: Financial Highlight : 3Q20 vs. 3Q19 (accumulated)

Slide 24: Revenue & Gross Margin

Slide 25: EBITDA & EPS

Slide 26: Financial Leverage

Slide 27: Income Statement

Slide 28: Balance Sheet

Slide 29: ESG Highlights

Slide 30: Sustainable Environment - Electricity

Slide 31: Improvement on Electricity Consumption

Slide 32: Committed to Green Energy

Slide 33: Sustainable Environment – Waste

Slide 34: Charity and Environment Protection

Slide 35: Ethical Business Practice

Slide 36: Diversity and Inclusion

Slide 37: Q&A

Slide 38: Thank You