Winbond Electronics Corp. · TWSE:2344

Winbond Electronics — Q1 2015 Earnings Presentation

22 slides from Winbond Electronics's earnings presentation, Apr 30, 2015

  1. Slide 1: Winbond Electronics Corporation

    Winbond Electronics Corporation

  2. 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

  3. Slide 3: Financial Results

    Financial Results

  4. Slide 4: 1Q15 Statement of Comprehensive Income - Consolidated

    1Q15 Statement of Comprehensive Income - Consolidated 1Q’15 4Q’14 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 9,724 100 9,565 100 159 2 Gross Profit 3,132 32 2,959 31 173 6 Operating Income 1,267 13 1,130 12 137 12 Pretax Income 1,281 13 1,290 13 (9) (1) Net Income 1,037 11 1,067 11

  5. Slide 5: 1Q15 Balance Sheet - Consolidated

    1Q15 Balance Sheet - Consolidated Mar. 31 ’15 Dec. 31 ’14 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 23,721 37 22,977 35 744 3 Net Fixed Assets 33,104 51 33,987 52 (883) (3) Total Assets 64,397 100 64,892 100 (495) (1) L/T Debt 9,814 15 9,814 15 - - Total Equity 39,977 62 39,30

  6. Slide 6: 1Q15 Statement of Cash Flows - Consolidated

    1Q15 Statement of Cash Flows - Consolidated 1Q’15 4Q’14 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 1,898 2,599 (701) Investing Cash Flow (778) (5,227) 4,449 Financing Cash Flow (397) 3,188 (3,585) Cash & Equivalents 7,676 6,976 700 Depreciation and Amortization 1,412 1,316 96 CA

  7. Slide 7: 1Q15 Statement of Comprehensive Income - Memory

    1Q15 Statement of Comprehensive Income - Memory 1Q’15 4Q’14 QoQ Change Unit: NT$ M Amount % Amount % Amount % Net Sales 8,038 100 7,955 100 83 1 Gross Profit 2,338 29 2,236 28 102 5 Operating Income 1,134 14 1,064 13 71 7 Pretax Income 1,211 15 1,245 16 (34) (3) Net Income 1,000 12 1,055 13 (55) (5)

  8. Slide 8: 1Q15 Balance Sheet - Memory

    1Q15 Balance Sheet - Memory Mar. 31 ’15 Dec. 31 ’14 QoQ Change Unit: NT$ M Amount % Amount % Amount % Current Assets 18,739 30 18,129 29 610 3 Net Fixed Assets 32,442 53 33,304 54 (862) (3) Total Assets 61,471 100 62,062 100 (591) (1) L/T Debt 9,814 16 9,814 16 - - Total Equity 38,831 63 38,183 62 6

  9. Slide 9: 1Q15 Statement of Cash Flows - Memory

    1Q15 Statement of Cash Flows-Memory 1Q’15 4Q’14 QoQ Change Unit: NT$ M Amount Amount Amount Operating Cash Flow 1,834 2,337 (503) Investing Cash Flow (704) (5,210) 4,506 Financing Cash Flow (390) 3,179 (3,569) Cash & Equivalents 4,886 4,146 740 Depreciation and Amortization 1,351 1,255 96 CAPEX 798

  10. Slide 10: Revenue and GM Trend - Consolidated

    Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 10.0 32% 35% 31% 28% 28% 30% 8.0 26% 23% 22% 21% 25% 6.0 20% 15% 4.0 9.9 9.7 9.6 9.7 10% 2.0 8.8 8.8 8.3 8.3 5% 0.0 0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Revenue Gross Profit GM% 10

  11. Slide 11: Revenue and GM Trend - Memory

    Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 10.0 35% 8.0 28% 29% 30% 24% 25% 25% 6.0 21% 18% 16% 16% 20% 4.0 15% 8.1 7.8 8.0 8.0 10% 2.0 7.1 6.9 6.5 6.7 5% 0.0 0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Revenue Gross Profit GM% 11

  12. Slide 12: Y2015 Memory CAPEX

    Y2015 Memory CAPEX (NT$ B) 13.0 14.0 12.0 10.0 7.4 8.0 6.0 4.8 6.0 3.0 4.0 2.1 2.0 0.0 2010 2011 2012 2013 2014 2015 (E) CAPEX(Cash Basis) as of 04/30/2015

  13. Slide 13: Winbond Business Update & Outlook

    Winbond Business Update & Outlook

  14. Slide 14: 1Q15 Memory Business Recap

    1Q15 Memory Business Recap QoQ YoY Revenue 1% 14% Gross Profit 5% 55%  Flat revenue due to seasonality  Growing business from Automotive and Industrial sectors  Improved gross profit resulted from product mix  46nm DRAM and 58nm Flash products accounted for 65% of total wafer shipments (vs. 63%

  15. Slide 15: 1Q15 Revenue Breakdown by Application

    1Q15 Revenue Breakdown by Application Car & Industrial 10% Communication Consumer 33% 29% Computer 28% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ + 19% QoQ + 4% QoQ - 7% QoQ - 1% YoY + 111% YoY + 34% YoY + 0% YoY - 3% NT$M NT$M NT$M NT$M 2,263 2,50

  16. Slide 16: 1Q15 Revenue Breakdown by Product

    1Q15 Revenue Breakdown by Product Revenue (NT$B) 9.0 8.1 8.0 8.0 7.8 8.0 6.9 6.7 7.1 7.0 6.5 35% 35% 35% QoQ YoY 36% 6.0 36% Flash 0% 10% 42% 38% 41% 5.0 Specialty (1%) 13% 4.0 54% 53% 52% Mobile 12% 25% 3.0 52% 51% 46% 51% 48% 2.0 1.0 13% 11% 11% 12% 13% 11% 12% 13% 0.0 2Q13 3Q13 4Q13 1Q14 2Q14 3Q1

  17. Slide 17: 1Q15 Revenue Breakdown by Geometry

    1Q15 Revenue Breakdown by Geometry Specialty DRAM Mobile DRAM Flash Memory Mobile DRAM 100% 100% 100% 2% 4% 80% 80% 50% 43% 80% 61% 58% 70% 75% 60% 60% 60% 40% 40% 40% 50% 57% 20% 20% 37% 38% 20% 29% 24% 1% 1% 0% 0% 0% 2014Q4 2015Q1 2014Q4 2015Q1 2014Q4 2015Q1 90nm 65nm 46nm 90nm 58nm 46nm Note: Spe

  18. Slide 18: 1Q15 Specialty DRAM Business

    1Q15 Specialty DRAM Business QoQ YoY Revenue (1%) 13%  Revenue slightly dropped due to slow demand in PC application.  Increased demand from NTWK and Automotive segments.  46nm products accounted for 75% of Specialty DRAM revenue (vs. 70% in 4Q14)

  19. Slide 19: 1Q15 Mobile DRAM Business

    1Q15 Mobile DRAM Business QoQ YoY Revenue 12% 25%  Revenue growth and improved gross margin due to favorable customer mix and product mix

  20. Slide 20: 1Q15 Flash Memory Business

    1Q15 Flash Memory Business QoQ YoY Revenue 0% 10%  Both revenue and gross margin maintained stable as price erosion slowed down  1Gb code storage Flash accounted for 4% of total Flash revenue (vs. 2% in 4Q14)

  21. Slide 21: Market and Business Outlook (I)

    Market and Business Outlook (I)  Market Consensus  Several applications appear weaker than market forecast in 2015 YoY 2013 2014 2015(F) Smartphone +38% +13% +13% PC+Tablet +14% +2% -2% TV -1% +3% +3% Source: IDC&WEC estimation  DRAM market  GB/box increases in new iPhones and Android phones  B

  22. Slide 22: Market and Business Outlook (II)

    Market and Business Outlook (II)  Winbond business  Growing business in Gb range DRAM and Flash, and MCP  Continuing business growth in KGD and Automotive/industrial  Fab capacity will achieve 44K WPM in 2H15 to support the demand  Both DRAM and Flash will migrate to 3x nm technology in 2016/2H

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