Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H1 2019 Earnings Presentation
21 slides from Winbond Electronics's earnings presentation, Jul 26, 2019
Slide 1: 1H19 Investor Conference
1H19 Investor Conference July 26, 2019
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
Slide 3: Financial Results
Financial Results
Slide 4: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2019Q2 2019Q1 QoQ 1H19 1H18 YoY Net Sales 12,011 10,887 1,124 22,898 25,641 (2,743) Gross Profit 3,155 3,449 (294) 6,604 9,830 (3,226) Gross Margin 26% 32% 29% 39% Operating Income 245 652 (407) 897 4,486 (3,589) Net Non-Operating Income (
Slide 5: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 14.0 13.7 13.2 13.5 12.5 12.2 12.0 12.0 11.9 11.4 10.9 10.0 38% 38% 39% 38% 40% 37% 34% 8.0 32% 32% 30% 6.0 26% 4.0 20% 2.0 0.0 10% 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 Revenue Gross Profit 2
Slide 6: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Jun. 30 '19 % Dec. 31 '18 % Jun. 30 '18 % Cash 14,074 13% 12,560 13% 9,345 10% Inventory(Net) 11,068 11% 10,908 11% 9,339 10% Property, Plant and Equipment 55,730 54% 52,484 55% 48,392 52% Total Assets 103,280 100% 96,042 100% 92,781 100% L/T Liability 16,955
Slide 7: Statement of Cash Flows - Consolidated
Statement of Cash Flows - Consolidated Unit: NT$ M 2019Q2 2019Q1 QoQ 1H19 1H18 YoY Operating Cash Flow 2,805 2,041 764 4,846 7,206 (2,360) Depreciation & Amortization 2,203 2,085 118 4,288 3,593 695 Investing Cash Flow (3,239) (3,551) 312 (6,790) (10,161) 3,371 CAPEX (3,166) (3,346) 180 (6,512) (10,
Slide 8: Statement of Comprehensive Income - Memory
Statement of Comprehensive Income - Memory Unit: NT$ M 2019Q2 2019Q1 QoQ 1H19 1H18 YoY Net Sales 9,331 8,684 647 18,015 20,538 (2,523) Gross Profit 1,979 2,550 (571) 4,529 7,722 (3,193) Gross Margin 21% 29% 25% 38% Operating Income 32 566 (534) 598 4,045 (3,447) Net Non-Operating Income (Loss) 485 (
Slide 9: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 12.0 10.8 10.7 10.9 10.0 10.1 9.9 9.3 9.3 8.9 38% 40% 8.0 36% 37% 37% 8.7 35% 35% 32% 6.0 29% 29% 30% 25% 4.0 21% 20% 2.0 15% 0.0 10% 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 Revenue Gross Profit 6
Slide 10: Balance Sheet - Memory
Balance Sheet - Memory Unit: NT$ M Jun. 30 '19 % Dec. 31 '18 % Jun. 30 '18 % Cash 11,205 11% 9,385 10% 6,746 8% Inventory(Net) 9,554 10% 9,331 10% 7,659 9% Property, Plant and Equipment 54,779 55% 51,578 56% 47,516 54% Total Assets 98,814 100% 92,173 100% 88,653 100% L/T Liability 16,955 17% 14,099
Slide 11: Statement of Cash Flows - Memory
Statement of Cash Flows-Memory Unit: NT$ M 2019Q2 2019Q1 QoQ 1H19 1H18 YoY Operating Cash Flow 2,503 2,488 15 4,991 6,990 (1,999) Depreciation & Amortization 2,103 1,985 118 4,088 3,460 628 Investing Cash Flow (3,155) (3,458) 303 (6,613) (9,987) 3,374 CAPEX (3,126) (3,299) 173 (6,425) (10,035) 3,610
Slide 12: Y2019 Memory CAPEX
Y2019 Memory CAPEX (NT$ B) 1H19 paid NT$6.45 Billion CAPEX (Cash Basis) as of 06/30/2019 9
Slide 13: Winbond Business Recap & Outlook
Winbond Business Recap & Outlook
Slide 14: 2Q19 Revenue Breakdown by Product
2Q19 Revenue Breakdown by Product Revenue (NT$B) 12 12% 10% 10% 10 12% 12% 11% 13% 13% 14% 8 36% 42% 43% 39% 40% 41% 37% 6 42% 39% 7% 6% 8% 7% 7% 8% 7% 4 5% 7% 43% 45% 40% 40% 2 40% 40% 41% 40% 43% 0 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 NOR NAND Specialty Mobile 10
Slide 15: Revenue by Application: 1H18 vs 1H19
1H18 1H19 Car & Industrial Car & Industrial 16% Communication Communication 20% 31% 29% Consumer 28% Consumer Computer 30% Computer 25% 21% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication YoY + 13% YoY - 4% YoY - 25% YoY - 14% NT$M NT$M NT$M NT$M 4,000 6,00
Slide 16: DRAM Memory Business
DRAM Memory Business Secured the market share at major customers led 2Q19 shipment rebound from the 1Q19 trough. Margin has been stable as compared with the market. Slow market stalled the 25nm product verification schedule in customer side. <1% 1% 2% 24% 23% 22% 68% 68% 69% 7% 8% 7% 2018Q4 20
Slide 17: Flash Memory Business
Flash Memory Business Revenue increased 16.8% QoQ in Q2 which was mainly contributed by high monthly shipment. Continued to maintain as No.1 SPI NOR supplier Significant growth in NAND shipment. 15% 15% 15% 58% 55% 55% 27% 30% 30% 2018Q4 2019Q1 2019Q2 90nm 58nm 46nm 13
Slide 18: Achievement in 1H19
Achievement in 1H19 Securing an NT$42 Billion 7-year Syndication Loan for Kaohsiung Fab. The first TW memory company to receive ISO 26262 certificate, the highest standard of road vehicles functional safety. Successful launching 2Gb+2Gb NAND+LPDDR4x multi-chip package for consumer to adopt 5G
Slide 19: Market and Business Outlook
Market and Business Outlook Overall market Uncertainties remained due to continuous trade tensions. CAPEX reductions and inventory adjustments is ongoing. The worst situation is over, but supply vs. demand balance takes time. Winbond Business Expand customer base to strengthen market share
Slide 20: Market and Business Outlook
Market and Business Outlook DRAM Monitor the market dynamics and expect better demand in 2H19. Retain and gain more market share in mid-to-low density market. With the increased design-in and product portfolio, 25nm shipment is expected to increase in 2H19. Chances to get more design-in op
Slide 21: Thank You
1H19 Investor Conference Thank You July 26, 2019