King Yuan Electronics Co., Ltd. · TWSE:2449
King Yuan Electronics — Q1 2019 Earnings Presentation
18 slides from King Yuan Electronics's earnings presentation, May 2019
Slide 1: Benchmark of The Testing Industry
Benchmark of The Testing Industry King Yuan Electronic Corp., Ltd. 京元電子股份有限公司 [TWSE: 2449] May, 2019 Wafer Test Service Assembly Service Burn-In Service IC Test Service Backend Support Turnkey Operation
Slide 2: Safe Harbor Notice
Safe Harbor Notice Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results o
Slide 3: KYEC group snapshot
KYEC group snapshot Overview Manufacturing footprint in Taiwan & China Established In: May 1987 Headquarters Headquarters: Hsinchu, Taiwan Chu-Nan fab. TWSE Listed: 2449.TW Tung-Luo fab. Market Cap.(1): NT$32,097.1 million Cash and Cash Equivalents(1): NT$4,494.3 million KLT & ZKT Suzhou, China Empl
Slide 4: KYEC is the benchmark of semi testing industry
KYEC is the benchmark of semi testing industry KYEC is uniquely positioned, locally and globally, as a pure-play testing house and aiming to take advantages of the ever-growing outsourced semi testing business. 4,000+ sets of installed test system, including both commercial and in-house 1 developed
Slide 5: Diversified product mix for stable, long-term growth
Diversified product mix for stable, long-term growth In general, test services contributed ~ 80% of company’s total revenue. The decline of revenue from test services in 2019 is due to the DLT merger. Devices tested by KYEC have been widely used in various applications, including consumer, communica
Slide 6: KYEC services global top tier customers
KYEC services global top tier customers 60% of global top 50 semi companies use KYEC’s test services Top 10 customers contributed 49.3% of revenue in Q1’19 (US$ Millions) 2018 Company 2017 2018 change 2018 Company 2017 2018 change 1 Samsung Electronics 61,158 73,649 20.42% 26 Xilinx 2,476 2,904 17.2
Slide 7: KYEC retains flexible and cost effective test solutions
KYEC retains flexible and cost effective test solutions Current semi testing service provider is demanding on flexibility, cost effective and various platform/capacity for servicing the small-volume business trend. KYEC is standing to take advantage of this market trend for its flexible in test plat
Slide 8: In-house test systems widely use in mass production
In-house test systems widely use in mass production In general, in-house test system provide a custom-tailored solution flexible in test configuration and programming for device used in various applications. In addition, KYEC designs and manufactures test tooling and probe card in-house. Application
Slide 9: KYEC has long history on in-house tester manufacturing
KYEC has long history on in-house tester manufacturing KYEC has long history in test system and tooling development and manufacturing independently since 1998. KYEC retains 400+ of professional experts in its R&D team working on technology development for advanced semiconductor testing and relevant
Slide 10: KYEC developed ovens for burn-in test services
KYEC developed ovens for burn-in test services In-house burn-in ovens provide flexibility, custom tailored test services. Our burn-in oven is able to offer testing under wide range of power/watts for products after one single test setup. Our high-power burn-in oven employs the air-cooling technologi
Slide 11: KYEC expects to grow revenue from in-house test system
KYEC expects to grow revenue from in-house test system In general, 20 - 25% of KYEC’s revenue was generated by 1,200+ sets(1) of in-house test systems and 270+ sets(1) of burn-in ovens installed on its shop floor. The decline of revenue from in-house tester in Q4’18 and Q1’19 is due to the DLT merge
Slide 12: KYEC provides turnkey WLCSP services as well
KYEC provides turnkey WLCSP services as well KYEC’s WLCSP process flow Wafer incoming inspection In addition to wafer testing, KYEC provides wafer grinding, die sawing/laser grooving, AOI and packing services for Wafer Level Chip Scale Wafer Test Package (WLCSP) as well. WLCSP is primarily for appli
Slide 13: KYEC group management team with deep industry experience
KYEC group management team with deep industry experience C.K. LEE - Chairman & CEO Over 30 Years of semiconductor industry experience Chairman of KLT (Suzhou) and ZKT (Suzhou) Former Manager of Manufacturing, United Microelectronics Corporation Bachelor of Department of Shipping &Transportation Mana
Slide 14: Financial highlights
Financial highlights 14
Slide 15: Financial Snapshot
Financial Snapshot (NT$ Millions) Q4’18 Q1’19 Net Revenue $5,673.8 $5,260.1 Gross Margin (%) 22.0% 21.3% Expenses SG&A $498.1 $444.9 R&D $245.2 $219.7 EBITDA $2,375.5 $2,152.7 EPS – diluted (NT$) $0.34 $0.31 EPS – basic (NT$) $0.35 $0.31 8,000 60% 7,000 50% 6,000 40% 5,000 4,000 30% 3,000 20% 2,000
Slide 16: Healthy business trends and capacity investment
Healthy business trends and capacity investment Revenue EBITDA (NT$ Millions ) (NT$ Millions) 25,000 20,081.7 20,815.4 12,000 19,686.9 9,274.6 9,810.8 9,446.1 20,000 17,128.5 10,000 7,829.0 8,000 15,000 6,000 10,000 5,260.1 4,580.8 4,000 5,000 2,060.1 2,152.7 2,000 0 0 2015 2016 2017 2018 Q1 '18 Q1
Slide 17: Optimal financial leverage enhances shareholder interest
Optimal financial leverage enhances shareholder interest Cash Flow from Operations CapEx (NT$ Millions) ( NT$ Millions) 10,000 9,075.5 10,000 9,211.5 8,284.5 8,350.5 8,427.8 8,680.8 8,000 8,000 7,136.7 6,000 6,000 5,249.8 4,000 4,000 2,063.7 1,955.0 2,166.4 1,517.1 2,000 2,000 0 0 2015 2016 2017 201
Slide 18: Company website
Company website http://www.kyec.com.tw 18
King Yuan Electronics — Q1 2019 Earnings Presentation on 6ix