Win Semiconductors Corp. · TPEX:3105
Win Semiconductors — Q2 2020 Earnings Presentation
29 slides from Win Semiconductors's earnings presentation, August 2020
Slide 1: WIN Semiconductors Company Presentation
WIN Semiconductors Company Presentation Aug. 2020 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: Outline
Outline The WIN Strategy Market Outlook 2Q Operating Result & 3Q Guidance Q&A WIN Semiconductors Confidential 3
Slide 4: The WIN-WIN Strategy
The WIN-WIN Strategy Invest in technologies to Invest in capacity to maintain capture demand competitive growth edge and sustain leadership Technology Leadership Scale Cost & Customer & Efficiency Application Leverage on Grow and acquire technology and Diversification new customers in manufacture ex
Slide 5: Worldwide Market Share
Worldwide Market Share Invest in technologies to maintain competitive edge and sustain leadership! GaAs Foundry Vendor Market Share GaAs Device Vendor Market Share (Recent 5-years) (Year 2019) 100% Others Mitsubishi Electric Raytheon 1.90% 1.10% 11.30% 90% Skyworks M/A-COM 29.60% 80% 2.50% Analog De
Slide 6: III-V End Markets
III-V End Markets 4G/5G Smart Mobile Devices Fiber-optical WIN’s Product Mix Trend Broadband Network 100% Optical comm. & Others Infra. 50% WiFi Wi-Fi Router, IoT Gateway Cellular 0% Past Now Broadband Satellite Optical Communication, 3D Sensing 4G/5G Basestation WIN Semiconductors Confidential 6
Slide 7: Growth Momentum
Growth Momentum 5G + Wi-Fi 6 Infrastructure Optical Devices WIN Semiconductors Confidential 7
Slide 8: WIN IC Inside
4/5G Infrastructure – WIN Inside! Satellite communications Basestation ADAS In-flight Wi-Fi Symbols Aerospace Tx Rx GEO MEO LEO WIN WIN Semiconductors Confidential IC Inside 8
Slide 9: Internet in the Sky…
Internet in the Sky… WIN Semiconductors Confidential 9
Slide 10: Market Outlook
MARKET OUTLOOK WIN Semiconductors Confidential 10
Slide 11: Ultra-High Speed Required in Wireless Communication
Performance Ultra-High is required in wireless communication. Speed It is the advantage of compound semiconductors. 2004-2010 2010-2020 2020-2030 3G-4G 4G-5G 5G 10Gbps 100M-1Gbps 2Mbps 2020 2010 1999 2008 10Gbps a/b g 6.8Gbps 54Mbps 600Mbps 54/11Mbps WIN Semiconductors Confidential 11
Slide 12: Opportunities for Compound Semiconductors
Opportunities for Compound Semiconductors Y2019-20 Y2021-25 Implement Phase Demand Rapid Growth Mobile Device Infrastructure/CPE • GaAs HBT • GaN HEMT Sub-6GHz • GaAs pHEMT • Integrated compound • GaN HEMT mmWave semi technologies • GaAs pHEMT • 5G sub-6GHz (<6GHz) spectrum bands for ubiquitous netw
Slide 13: 5G Sub-6GHz Freq. Spectrum
5G Sub-6GHz Freq. Spectrum Exist Spectrum n41 n78 n77 n79 unlicensed For LTE/5G 1GHz 2 3 4 5 6GHz New Spectrum for 5G (1) New frequency bands for 5G (2) MIMO: n41, n77, n78, and n79 (3) Additional 5G PA (Refarm existing 4G Frequency band ) WIN Semiconductors Confidential 13
Slide 14: Opportunities
Opportunities Wi-Fi 6 has been arriving and Wi-Fi 7 is developing Wi-Fi will be upgraded from 802.11ac to 802.11ax (Wi-Fi 6), from flagship to mid-range phones • Faster throughput • Higher network efficiency Smart • Better in dense environments phone Enterprise Application Portable 802.11be (Wi-
Slide 15: Infrastructure
Infrastructure RF Device Inside Macro & Small Cell Sector • The high performance of compound semiconductors is the better choice for PA and LNA on 5G base-station. • More than 100M transceivers in 2020. 4 PA + 4 LNA Satellite Communication Era is Coming • More than 6,500 small satellites (<500kg
Slide 16: Optical for 3D Sensing
Optical for 3D Sensing World Facing AR Structure-Light demand keep very strong ToF for 3D sensing applications will keep growth • Production was started since 2H2019 • Multiple customers use ToF for both front and world facing applications Gesture Recognition Autonomous WIN Semiconductors Confid
Slide 17: Optical Communication
Optical Communication Optical Devices • Data center interconnect, or metro/long-haul coherent transmission • Proximity/Light sensor More and more customers engagement and will enter production stage soon WIN Semiconductors Confidential 17
Slide 18: 2Q Operating Result & 3Q Guidance
2Q OPERATING RESULT & 3Q GUIDANCE WIN Semiconductors Confidential 18
Slide 19: Revenue & Margin Trend
Revenue & Margin Trend 2Q20 revenue was NT$6,048m, down 0.4% QoQ but up 36% YoY. In 2Q20, as the capacity utilization rate remain high and the product mix was better than last quarter, gross margin increased by 1.8pp sequentially to 44.8%, and operating margin increased by 1.7pp sequentially to
Slide 20: Earnings Trend
Earnings Trend In 2Q20, net profit was NT$1,651m, up 5% QoQ and 113% YoY. EPS came in at NT$3.94, compares to NT$3.76 in 1Q20. Earnings & growth trend NT$ EPS NT$M 2,500 1000% 5.00 4.50 800% 2,000 4.00 600% 3.50 1,500 3.00 400% 2.50 1,000 200% 2.00 500 1.50 0% 1.00 0 -200% 0.50 3Q19 4Q19 1Q20 2Q20
Slide 21: FCF & Gearing Trend
FCF & Gearing Trend In 2Q20, given continued increase in capex, we generated net outflow of free cash flow in the quarter. In 2Q20, interest-bearing debts and gearing ratio both increased sequentially, but our financial structure remained healthy. NT$M Free cashflow NT$M Interest-bearing debts &
Slide 22: Product Mix
Product Mix 2Q19 Others* 10% Wi-Fi 15-20% 2Q20 Others* Cellular 13% 40-45% Infra. 25-30% Wi-Fi 15-20% 1Q20 Cellular Others* 45-50% 15% Wi-Fi 15-20% Infra. 20-25% Cellular 40-45% Infra. * Others: Revenue not attributable to main product segments and additional 20-25% revenue being consolidated in acc
Slide 23: 3Q20 Guidance
3Q20 Guidance We expect 3Q20 revenue to grow by mid-single digit QoQ. We expect 3Q20 gross margin to be around the level of low-forties. WIN Semiconductors Confidential 23
Slide 24: Appendix - Financial Summary
APPENDIX - FINANCIAL SUMMARY WIN Semiconductors Confidential 24
Slide 25: Consolidated Statements of Comprehensive Income - Quarterly
Consolidated Statements of Comprehensive Income - Quarterly 2Q'20 Unit: NTD Million 2Q'19 1Q'20 QoQ YoY (unaudited) Net revenue 4,451 6,071 6,048 -0.4% +36% Gross profit 1,513 2,611 2,707 +4% +79% Gross margin (%) 34.0% 43.0% 44.8% Operating expenses (595) (673) (674) +0.1% +13% Operating expenses r
Slide 26: Consolidated Statements of Comprehensive Income - YTD
Consolidated Statements of Comprehensive Income - YTD 2020H1 Unit: NTD Million 2019H1 YoY (unaudited) Net revenue 8,070 12,119 +50% Gross profit 2,416 5,318 +120% Gross margin (%) 29.9% 43.9% Operating expenses (1,198) (1,347) +12% Operating expenses rate (%) -15% -11% Operating income 1,218 3,971 +
Slide 27: Non-operating Items
Non-operating Items 2Q'20 2020H1 Unit: NTD Million 2Q'19 2019H1 (unaudited) (unaudited) Foreign exchange gains (losses) 42 (65) 44 (2) Gains (losses) on disposals of property, plant and equipment - 0.3 (1) (1) Gains (losses) on disposals of investments 105 - 80 - Gains on financial assets (liabiliti
Slide 28: Consolidated Balance Sheets
Consolidated Balance Sheets 2020/6/30 2019/6/30 2020/3/31 (Unit: NTD Million) Major Item (unaudited) $ % $ % $ % Cash and cash equivalents 4,206 11% 4,812 11% 6,159 13% Current financial assets at fair value through profit or loss 103 0.3% 587 1% 1,033 2% Notes and accounts receivable, net 1,855 5%
Slide 29: Q&A
Q&A For more information regarding WIN www.winfoudry.com For all inquiries, suggestions, and comments ir@winfoundry.com WIN Semiconductors Confidential 29