Ase Technology Holding Co., Ltd. · TWSE:3711
Ase Technology — Q2 2018 Earnings Presentation
18 slides from Ase Technology's earnings presentation, Jul 27, 2018
Slide 1: ASE Technology Holding Second Quarter 2018 Earnings Release
1 ASE Technology Holding Co., Ltd. Jul. 27, 2018 ASE Technology Holding Second Quarter 2018 Earnings Release
Slide 2: Safe Harbor Notice
Safe Harbor Notice 2 This presentation contains "forward - looking statements" within the meaning of Section 27 A of the United States Securities Act of 1933 , as amended, and Section 21 E of the United States Securities Exchange Act of 1934 , as amended . Although these forward - looking statements
Slide 3: Purchase Price Allocation (PPA)
Purchase Price Allocation (PPA) Fair Market Value of Ide n tifiable Assets Goodwill NT$39B PP&E, Identifiable Intangible Assets NT$51B (incl. $4B Land ) Original Book Value of SPIL NT$78B • PPA: allocate purchase price into various assets and liabilities acquired from the transaction. Total Purchase
Slide 4: Revaluation Gain
Revaluation Gain 4 Revaluation Gain NT$7.6B Adjusted cost NT$45.5B • Prior to the transaction, ASE owned 33 . 29 % of SPIL and was valued by equity - method investment at an average adjusted cost of NT $ 43 . 9 per share, or total adjusted cost of NT $ 45 . 5 B . • On Apr 30, 2018, such shares were
Slide 5: Consolidated Statements of Comprehensive Income Quarterly Comparison
Consolidated Statements of Comprehensive Income 5 Quarterly Comparison (unaudited) FX (NTD/USD) 29.57 29.33 30.18 Q2 / 2018 % Q1 / 2018 % Q2 / 2017 % QoQ YoY (NT$ Million) Net Revenues: Packaging 44,318 52 . 4 % 29,368 45 . 2 % 30,494 46 . 2 % 51% 45% Testing 8,467 10 . 0 % 5,679 8 . 7 % 6,350 9 . 6
Slide 6: ATM Statements of Comprehensive Income Quarterly Comparison
ATM Statements of Comprehensive Income 6 Quarterly Comparison (unaudited) FX (NTD/USD) 29.57 29.33 30.18 Q2 / 2018 % Q1 / 2018 % Q2 / 2017 % QoQ YoY (NT$ Million) Net Revenues: Packaging 44,973 82 . 5 % 30,313 81 . 8 % 31,718 81 . 2 % 48% 42% Testing 8,467 15 . 5 % 5,679 15 . 3 % 6,350 16 . 3 % 49%
Slide 7: EMS Statements of Comprehensive Income Quarterly Comparison
EMS Statements of Comprehensive Income 7 Quarterly Comparison (unaudited) FX (NTD/USD) (NT$ Million) 29.57 29.33 30.18 Q2 / 2018 % Q1 / 2018 % Q2 / 2017 % QoQ YoY EMS Net Revenues 30,476 100 . 0 % 28,691 100 . 0 % 28,248 100 . 0 % 6% 8% Gross Profit 2,868 9 . 4 % 2,700 9 . 4 % 3,121 11 . 0 % 6% - 8
Slide 8: Consolidated Statements of Comprehensive Income, Pro-forma Consolidated
Consolidated Statements of Comprehensive Income Quarterly Comparison, Pro - forma Consolidated 2 (unaudited) FX (NTD/USD) 29.57 29.33 30.18 Q2 / 2018 % Q1 / 2018 % Q2 / 2017 % QoQ YoY (NT$ Million) Net Revenues: ATM 61,042 66 . 5 % 54,969 65 . 5 % 58,197 67 . 3 % 11% 5% EMS 30,472 33 . 2 % 28,686 34
Slide 9: ATM Statements of Comprehensive Income, Pro-forma Consolidated
ATM Statements of Comprehensive Income Quarterly Comparison, Pro - forma Consolidated 2 (unaudited) FX (NTD/USD) 29 . 5 7 29 . 3 3 30 . 1 8 ( N T$ Mi l lio n ) Q 2 / 2018 % Q1 / 2018 % Q2 / 2017 % QoQ YoY ATM Net Revenues 61,790 100 . 0 % 55,985 100 . 0 % 59,473 100 . 0 % 10% 4% Gross Profit 11,870
Slide 10: ATM Operations Pro-forma Consolidated
ATM Operations Pro - forma Consolidated 2 (unaudited) 2 : Pro forma financial information containing ASE and SPIL is prepared on a retrospective adjustment basis starting from January 1, 2017. The retrospective adjustments include (1) depreciation, amortization and rental expense from property, plan
Slide 11: ATM Revenue by Application
ATM Revenue by Application (unaudited) 11% 32% 34% 11% 34% 11% 33% 12% 33% 14% 31% 16% 55% 55% 55% 53% 53% 6 0 % 8 0 % 1 0 0% 4 0 % 57% 2 0 % 0% Q 1 /17 Q 2 /17 Q 3 /17 Q 4 /17 Q 1 /18 Q 2 /18 Communication Computer Automotive, Consumer & Others 11 Pro Forma Basis 2 2 : Pro forma financial informati
Slide 12: ATM Revenue by Type
31% 30% 31% 32% 30% 31% 2% 2% 2% 2% 2% 2% 15% 15% 16% 16% 15% 15% 7% 7% 7% 7% 7% 7% 45% 46% 44% 43% 46% 45% 2 0 % 4 0 % 6 0 % 1 0 0% 8 0 % Material Testing Discrete and Other Wirebonding Bump/FC/WLP/SiP 12 ATM Revenue by Type (unaudited) Pro Forma Basis 2 0% Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 2 : P
Slide 13: EMS Operations
3 , 1 1 4 3 , 1 2 1 3,409 4,002 2 , 7 0 0 2 , 8 6 8 2 9 , 3 63 2 8 , 2 48 3 3 , 1 00 43,289 28,691 3 0 , 4 76 10.6% 11.1% 10.3% 9.2% 9.4% 0% 9.4% 1 0 % 2 0 % 3 0 % 0 1 0 ,0 0 0 2 0 , 0 0 0 3 0 , 0 0 0 4 0 , 0 0 0 5 0 , 0 0 0 Q 1 /17 Q 2 /17 Q 3 /17 Q 4 /17 Q 1 /18 Q 2 /18 NT$ Million EMS Operations
Slide 14: EMS Revenue Breakdown
EMS Operations EMS Revenue Breakdown (unaudited) 49% 48% 45% 42% 42% 38% 15% 17% 14% 14% 17% 19% 22% 20% 26% 32% 24% 25% 7% 8% 8% 6% 9% 11% 6% 5% 7% 6% 1% 1% 6% 6% 1% 1% 1% 1% 0% 2 0 % 4 0 % 6 0 % 8 0 % 1 0 0% Q 1 /17 Q 2 /17 Q 3 /17 Q 4 /17 Q 1 /18 Q 2 /18 Others Automotive Industrial Consumer Comp
Slide 15: Key Balance Sheet Items & Indices
Key Balance Sheet Items & Indices (unaudited) 15 (NT$ Million) Jun. 30, 2018 Mar. 31, 2018 Cash and cash equivalent 68,028 43,146 Financial assets - current 16,966 10,551 Financial assets - non current & investments - equity method 13,202 50,854 Property, plant & equipment 218,447 134,637 Total asse
Slide 16: Equipment Capital Expenditure vs. EBITDA
Equipment Capital Expenditure vs. EBITDA (unaudited) 231 317 234 208 254 356 542 858 715 737 558 647 0 3 0 0 6 0 0 9 0 0 Q 1 /17 Q 2 /17 Q 3 /17 Q 4 /17 Q 1 /18 Q 2 /18 US$ Million Capex EBITDA 16 Pro Forma Basis 2 2 : Pro forma financial information containing ASE and SPIL is prepared on a retrospe
Slide 17: Third Quarter 2018 Outlook
Third Quarter 2018 Outlook 17 Based on our current business outlook and exchange rate assumptions, management projects overall performance for the third quarter of 2018 to be as follows: • On a pro - forma basis and in USD term, ATM 3 Q 18 capacity should increase 3 - 4 % quarter over quarter while
Slide 18: Thank You
Thank You w w w. a s e g l o b a l . c o m 18
ASE Technology Holding — Q2 2018 Earnings Presentation on 6ix