Globalwafers Co., Ltd. · TPEX:6488
Globalwafers — Q1 2021 Earnings Presentation
28 slides from Globalwafers's earnings presentation, May 4, 2021
Slide 1: GlobalWafers Q121 Results Presentation
GlobalWafers (6488 TT) Q121 Results Presentation May, 2021 © GlobalWafers Co., Ltd. All rights reserved
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 ➢ Q121 ⚫ Revenue - sequential growth regardless of headwind. ⚫ GM & EPS - relatively low because of ✓ Extreme winter storm in US ✓ Earthquakes in Japan ✓ Rising shipping costs because of Suez Canal obstruction ✓ Urgent coordination for container shortage ✓ Increased prices of many
Slide 4: Planned Financing Measures and Industry & Outlook
➢ Planned Financing Measures ⚫ Up to NTD 22 billion unsecured domestic corporate bond offerings as mid-to-long-term financing mainly for repayment of debt ⚫ Up to USD 1 billion unsecured overseas Euro convertible bond offering for the procurement of raw materials in foreign currencies ⚫ Up to 50 mil
Slide 5: GlobalWafers' Historically High Dividend Payout Ratio
GlobalWafers’ Historically High Dividend Payout Ratio ➢ GlobalWafers has consistently maintained a significantly higher dividend payout ratio than its peers, the average of Taiwan semiconductor peers as well as the overall average of Taipei Exchange-listed companies. ➢ By strategically adjusting dow
Slide 6: About Siltronic Transaction
About Siltronic Transaction © GlobalWafers Co., Ltd. All rights reserved 5
Slide 7: Development of Takeover Offer for Siltronic
Development of Takeover Offer for Siltronic ➢ GlobalWafers achieved a final acceptance rate of 70.27% ➢ Settlement of the Takeover Offer is expected in the second half of 2021, following receipt of required regulatory approvals Past events Future events Ad-hoc announcement Reduction of acceptance Re
Slide 8: Planned Financing Measures
Planned Financing Measures © GlobalWafers Co., Ltd. All rights reserved 7
Slide 9: Planned Financing Measures
Planned Financing Measures ➢ Intended to contribute to an overall strengthening of GlobalWafers’ financing structure and improved capital allocation ⚫ Announced measures: – Up to NTD 22 billion unsecured domestic corporate bond offerings as mid-to-long-term financing mainly for repayment of debt – U
Slide 10: Industry Overview
Industry Overview © GlobalWafers Co., Ltd. All rights reserved 9
Slide 11: Global GDP Growth Forecast
Global GDP Growth Forecast ➢ IMF estimates a smaller 2020 global GDP contraction of -3.3% and has increased it’s forecast to 6% Global GDP growth in 2021. ➢ IMF states “The ascent out of this calamity is likely to be long, uneven, and highly uncertain”. World Economic Outlook (April 2021) World USA
Slide 12: Semiconductor Unit Shipment
Semiconductor Unit Shipment ➢ Total semiconductor unit shipments are forecast to rise 13% in 2021, to 1,135 bn, setting a new all-time annual record and marks the third time that surpassed one trillion units in a calendar year. Tracking Semiconductor Unit Growth (bn of units) 1,200 1,135 1,046 1,002
Slide 13: Semiconductor Unit Shipment by Application (2021F)
Semiconductor Unit Shipment by Application (2021F) ➢ Total semiconductor shipments are expected to remain weighted toward O-S-D (optoelectronics, sensor/actuator, and discrete) devices in 2021, accounting for 67%. ➢ The strongest unit growth in 2021 are components that target network and cloud compu
Slide 14: Semiconductor Wafer Shipment Forecast by Diameter
Semiconductor Wafer Shipment Forecast by Diameter ➢ Shipments of all diameters are expected to increase throughout 2023. Semiconductor Wafer Shipment Forecast by Diameter (Unit: MSI) 12,000 300mm 10,000 8,000 6,000 4,000 200mm 2,000 150mm 0 2019 2020 2021F 2022F 2023F Source: SEMI ORG report + GWC e
Slide 15: IC Market Growth
IC Market Growth ➢ Research institute raises its 2021 IC market forecast from 12% to 19% growth. Rising market expectations are being witnessed across most IC product lines from Analog to Logic to DRAM. IC Market Growth Rate Scenarios (Q221~Q421) (Unit: $bn) Improving Quarterly Growth 2021 vs. 2020
Slide 16: Semiconductor Sales Growth
Semiconductor Sales Growth ➢ VLSI reports that unlike the past two years, all semi device type markets are trending toward >10% revenue growth. Semiconductor Sales Growth Growth Forecast (2021F) 21% 21% 15% 12% 10% DRAM Logic NAND Analog & Auto IC Power Source: VLSI Research, March 2021 © GlobalWafe
Slide 17: Semi Fab Capacity by Region
Semi Fab Capacity by Region ➢ According to SEMI, China’s fab wafer capacity growth increased 14% in 2019 and 21% in 2020 and is expected to grow at least 17% this year. Of all regions, Taiwan has the second strongest growth rate over the same period at 3% to 4%. Installed Wafer Capacity by Region So
Slide 18: Automotive: Fastest Growing Memory and Storage Market
Automotive: Fastest Growing Memory and Storage Market ➢ According to market intelligence, automotive segment will outpace other memory segments. ➢ Most of automotive memory content today is infotainment, but autonomous driving will force most growth in memory demand. DRAM Content Example* (GB) NAND
Slide 19: The 5G Ecosystem is Broadening
The 5G Ecosystem is Broadening ➢ 5G adoption is growing in momentum, and the pace of 5G introductions is accelerating with many network developments and support in devices. Key Figures in 5G Rollout 20% 69% 3.5bn 54% In the first 6 Today, 69% of 5G subscriptions In 2026, 5G will months of Service ar
Slide 20: Performance Update
Performance Update © GlobalWafers Co., Ltd. All rights reserved 19
Slide 21: Financial Highlights 1Q21
Financial Highlights ➢ 1Q21 ⚫ Revenue – NTD 14,806 mn, sequential growth regardless of headwind. ⚫ GM (35.1%) & EPS(NTD 6.18) - relatively low because of ✓ Extreme winter storm in US ✓ Earthquakes in Japan ✓ Rising shipping costs because of Suez Canal obstruction ✓ Urgent coordination for container
Slide 22: Financial Highlight: Q121 vs. Q120
Financial Highlight : Q121 vs. Q120 (NT$mn) Q121 Q120 YoY Revenue 14,806 13,515 9.6% EBITDA*1 5,051 5,015 0.7% EBITDA % 34.1% 37.1% -3.0% EBIT 3,544 3,845 -7.8% Operating Profit 3,952 3,805 3.9% Operating Profit % 26.7% 28.2% -1.5% Net Profit 2,690 2,880 -6.6% Net Profit % 18.2% 21.3% -3.1% EPS NT$6
Slide 23: Revenue & Gross Margin
Revenue & Gross Margin Revenue & Gross Margin (NT$mn) Revenue GM % 15,624 15,591 14,694 15,162 41.0% 14,30313,506 14,806 14,368 39.0% 40.1% 13,515 13,701 14,006 14,137 13,910 38.5% 37.8% 38.2% 38.6%37.2% 37.0% 36.5% 36.3% 12,44836.2% 35.1% 11,978 11,205 30.4% 10,581 26.9% 26.3% 24.4% 24.6% 23.0% 20.
Slide 24: EBITDA & EPS
EBITDA & EPS EBITDA EPS (NT$mn) (NT$) EBITDA EBITDA to Revenue 31.18 31.35 30.11 22,712 22,648 21,967 39.7% 38.5% 39.0% 34.1% 26.0% 25.7% 26.4% 26.4% 12,221 12.68 16.4% 5,051 6.14 6.60 6.18 5.80 4,053 4,087 4,046 3,025 2.54 2013 2014 2015 2016 2017 2018 2019 2020 Q121 2013 2014 2015 2016 2017 2018 2
Slide 25: Income Statement
Income Statement Income Statement (NT$mn) 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 Revenue 15,570 15,922 15,310 18,427 46,213 59,064 58,094 55,359 14,806 Growth (%) - 2.3% -3.8% 20.4% 150.8% 27.8% -1.6% -4.7% - Gross Profit 3,663 3,728 4,073 4,130 11,808 22,299 22,847 20,568 5,193 Gross Profit M
Slide 26: Balance Sheet
Balance Sheet Balance Sheet (NT$mn) 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 Assets Cash and cash equivalents 1,536 2,685 3,662 5,628 18,794 35,214 32,822 22,439 12,700 Account receivable 3,165 3,694 4,538 7,642 7,869 9,226 8,140 8,037 9,094 Inventories 3,291 2,829 3,262 7,307 7,347 7,040 6,849
Slide 27: Q&A
Q&A © GlobalWafers Co., Ltd. All rights reserved 26
Slide 28: Thank You
Thank You © GlobalWafers Co., Ltd. All rights reserved 27