Slide 1: ASE Technology Holding 2018 Fourth Quarter Earnings Release
ASE Technology Holding 2018 Fourth Quarter Earnings Release Tien Wu Chief Operating Officer Jan. 30, 2019 1
Slide 2: Safe Harbor Notice
Safe Harbor Notice This presentation contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may
Slide 3: Content
Content • 2018 Recap • Competitive landscape • 2019 Outlook 3
Slide 4: 2018 Recap
2018 Recap 4
Slide 5: 2018 Recap
2018 Recap • ASE Technology Holding established on Apr. 30, 2018. • 2019 Nov 24: expiration of China Ministry of Commerce conditions • Achieved record high revenues • 2018 ATM record high revenue US$8.2B (on a pro forma basis) • 2018 EMS record high revenue US$5.0B • SiP business grew 14% YoY to US$
Slide 6: Competitive Landscape
Competitive Landscape 6
Slide 7: Top 15 OSAT: EBITDA minus CAPEX
Top 15 OSAT: EBITDA minus CAPEX • ASE Technology Holding ATM EBITDA-CAPEX outperformed top 15 OSATs 1 (US$B) EBITDA minus CAPEX (Past 3 Year) 4 3 2 1 0 -1 2 1: Past three year based on the latest company financial information available 2: ASEH ATM: prior to 2017, consolidated ASE ATM + SPIL result b
Slide 8: Top 15 OSAT: EBITDA - CAPEX Trend
Top 15 OSAT: EBITDA - CAPEX Trend Cash Flow Gains After Disruptive Investment First Wave Second Wave Third Wave Cu Wire SiP Heterogeneous Integration (US$M) 2,500 87% 98% 100% 56% 52% 65% 66% 48% 50% 48% 48% 2,000 50% 14% 6% 1,500 953 839 1,177 0% 1,000 152 743 593 709 902 45 1,199 500 1,046 401 1,0
Slide 9: ASE Revenue Growth Trend vs. Industry
ASE Revenue Growth Trend vs. Industry Disruptive Technology Investment Drive Business Expansion First Wave Second Wave Third Wave Cu Wire SiP Heterogeneous Integration YoY (%)1 60% 52.9% 30% 9.1% 10.0% 9.2% 6.2% -2.3% 1.1% 2.2% 2.5% -7.6% 0% -13.5% -3.9% -30% 2007 2008 2009 2010 2011 2012 2013 2014
Slide 10: Growing OSAT TAM
Growing OSAT TAM Diminishing Boundaries with Adjacent Markets • Slowdown of Moore’s Law with increasing importance of heterogeneous integration and system design • Future design focusing on maximum flexibility, power consumption, and cost efficiency at the system level • ASE and USI synergy best pos
Slide 11: 2019 Outlook
2019 Outlook 11
Slide 12: 2019 Outlook
2019 Outlook • 2019 Group machinery capex should be stable YoY • ATM: increasing mix of new technology development across fan- out, SiP, expansion of new manufacturing sites, factory automation • EMS: higher capex on global footprint expansion (Mexico, Taiwan, China), and SiP development • 2019 Grou
Slide 13: Thank You
Thank You © ASE Group. Alll rights reserved
Slide 14: ASE Technology Holding Fourth Quarter 2018 Earnings Release
ASE Technology Holding Fourth Quarter 2018 Earnings Release ASE Technology Holding Co., Ltd. Jan. 30, 2019 1
Slide 15: Safe Harbor Notice
Safe Harbor Notice This presentation contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may
Slide 16: Consolidated Statements of Comprehensive Income: Quarterly
Consolidated Statements of Comprehensive Income Quarterly Comparison (unaudited) Legal Entity Basis1 FX (NTD/USD) 30.79 30.61 30.08 (NT$ Million) Q4 / 2018 % Q3 / 2018 % Q4 / 2017 % QoQ YoY Net Revenues: Packaging 51,149 44.9% 53,473 49.7% 33,045 39.4% -4% 55% Testing 10,919 9.6% 10,838 10.1% 6,553
Slide 17: Consolidated Statements of Comprehensive Income: Full Year
Consolidated Statements of Comprehensive Income Full Year YoY Comparison (unaudited) Legal Entity Basis1 FX (NTD/USD) 30.07 30.42 (NT$ Million) Full Year 2018 % Full Year 2017 % YoY Net Revenues: Packaging 178,308 48.1% 126,225 43.5% 41% Testing 35,903 9.7% 26,157 9.0% 37% EMS 151,890 40.9% 133,948
Slide 18: ATM Statements of Comprehensive Income: Quarterly
ATM Statements of Comprehensive Income Quarterly Comparison (unaudited) Legal Entity Basis1 FX (NTD/USD) 30.79 30.61 30.08 (NT$ Million) Q4 / 2018 % Q3 / 2018 % Q4 / 2017 % QoQ YoY Net Revenues: Packaging 52,068 81.2% 54,321 81.9% 34,226 81.9% -4% 52% Testing 10,920 17.0% 10,839 16.3% 6,556 15.7% 1%
Slide 19: ATM Statements of Comprehensive Income: Full Year
ATM Statements of Comprehensive Income Full Year YoY Comparison (unaudited) Legal Entity Basis1 FX (NTD/USD) 30.07 30.42 (NT$ Million) Full Year 2018 % Full Year 2017 % YoY Net Revenues: Packaging 181,675 81.8% 130,902 81.3% 39% Testing 35,905 16.2% 26,160 16.2% 37% Direct Material 4,336 1.9% 3,932
Slide 20: Consolidated Statements, Quarterly Pro-forma
Consolidated Statements of Comprehensive Income Quarterly Comparison, Pro-forma Consolidated2 (unaudited) Pro Forma Basis2 FX (NTD/USD) 30.79 30.61 30.08 (NT$ Million) Q4 / 2018 % Q3 / 2018 % Q4 / 2017 % QoQ YoY Net Revenues: ATM 63,025 55.3% 65,360 60.7% 62,143 58.8% -4% 1% EMS 50,736 44.5% 41,996
Slide 21: Consolidated Statements, Full Year Pro-forma
Consolidated Statements of Comprehensive Income Full Year YoY Comparison, Pro-forma Consolidated2 (unaudited) Pro Forma Basis2 FX (NTD/USD) 30.07 30.42 (NT$ Million) Full Year 2018 % Full Year 2017 % YoY Net Revenues: ATM 244,396 61.5% 239,627 64.1% 2% EMS 151,890 38.2% 133,948 35.8% 13% Others 975
Slide 22: ATM Statements, Quarterly Pro-forma
ATM Statements of Comprehensive Income Quarterly Comparison, Pro-forma Consolidated2 (unaudited) Pro Forma Basis2 FX (NTD/USD) 30.79 30.61 30.08 (NT$ Million) Q4 / 2018 % Q3 / 2018 % Q4 / 2017 % QoQ YoY ATM Net Revenues 64,120 100.0% 66,324 100.0% 63,417 100.0% -3% 1% Gross Profit 13,962 21.8% 14,26
Slide 23: ATM Statements, Full Year Pro-forma
ATM Statements of Comprehensive Income Full Year YoY Comparison, Pro-forma Consolidated2 (unaudited) Pro Forma Basis2 FX (NTD/USD) 30.07 30.42 (NT$ Million) Full Year 2018 % Full Year 2017 % YoY ATM Net Revenues 248,219 100.0% 244,635 100.0% 1% Gross Profit 49,591 20.0% 51,204 20.9% -3% Operating In
Slide 24: ATM Operations
ATM Operations Pro-forma Consolidated2 (unaudited) Pro Forma Basis2 NT$ Million 70,000 66,324 30% 63,809 63,417 64,120 61,790 57,936 59,473 60,000 55,985 14,268 14,096 14,143 11,870 13,962 11,385 11,580 50,000 9,491 22.1% 22.3% 21.5% 21.8% 20% 40,000 19.7% 19.5% 19.2% 17.0% 30,000 10% 20,000 10,000
Slide 25: ATM Revenue by Application
ATM Revenue by Application (unaudited) Pro Forma Basis2 100% 32% 34% 34% 33% 33% 31% 32% 31% 80% 60% 11% 11% 11% 12% 14% 16% 14% 13% 40% 57% 55% 55% 55% 53% 53% 54% 56% 20% 0% Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Communication Computer Automotive, Consumer & Others 2: Pro forma financial
Slide 26: ATM Revenue by Type
ATM Revenue by Type (unaudited) Pro Forma Basis2 100% 2% 2% 2% 2% 2% 2% 2% 2% 15% 15% 16% 16% 15% 15% 16% 17% 80% 7% 7% 7% 7% 7% 7% Material 8% 9% Testing 60% Discrete and 45% 46% 44% 43% 46% 45% 43% 39% Other Wirebonding 40% Bump/FC/WLP /SiP 20% 31% 30% 31% 32% 30% 31% 31% 33% 0% Q1/17 Q2/17 Q3/17
Slide 27: EMS Statements of Comprehensive Income: Quarterly
EMS Statements of Comprehensive Income Quarterly Comparison (unaudited) FX (NTD/USD) 30.79 30.61 30.08 (NT$ Million) Q4 / 2018 % Q3 / 2018 % Q4 / 2017 % QoQ YoY EMS Net Revenues 50,745 100.0% 42,009 100.0% 43,289 100.0% 21% 17% Gross Profit 4,610 9.1% 4,163 9.9% 4,002 9.2% 11% 15% Operating Income (
Slide 28: EMS Statements of Comprehensive Income: Full Year
EMS Statements of Comprehensive Income Full Year YoY Comparison (unaudited) FX (NTD/USD) 30.07 30.42 (NT$ Million) Full Year 2018 % Full Year 2017 % YoY EMS Net Revenues 151,921 100.0% 134,000 100.0% 13% Gross Profit 14,341 9.4% 13,646 10.2% 5% Operating Income (Loss) 5,667 3.7% 5,658 4.2% 0% EBITDA
Slide 29: EMS Operations: Revenue By Application
EMS Operations EMS Revenue By Application (unaudited) 100% 1% 1% 1% 1% 1% 1% 1% 4% 6% 6% 6% 5% 7% 6% 5% 7% 8% 8% 6% 10% 10% 9% 11% 80% 22% 20% Others 26% 32% 24% 25% 36% Automotive 44% 60% 15% 17% Industrial 14% 17% 14% 19% Consumer 40% 14% 10% Computer & Storage Communication 49% 48% 45% 20% 42% 42
Slide 30: Key Balance Sheet Items & Indices
Key Balance Sheet Items & Indices (unaudited) (NT$ Million) Dec. 31, 2018 Sept. 30, 2018 Cash and cash equivalent 51,518 55,335 Financial assets - current 13,802 8,278 Financial assets - non current & investments - equity method 12,555 13,698 Property, plant & equipment 214,593 216,200 Total assets
Slide 31: Equipment Capital Expenditure vs. EBITDA
Equipment Capital Expenditure vs. EBITDA (unaudited) Pro Forma Basis2 US$ Million 900 858 715 737 705 685 647 600 542 558 383 314 327 280 290 300 230 248 192 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Capex EBITDA 2: Pro forma financial information containing ASE and SPIL is prepared on a ret
Slide 32: First Quarter 2019 Outlook
First Quarter 2019 Outlook Based on our current business outlook and exchange rate assumptions, management projects overall performance for the first quarter of 2019 to be as follows: • On a pro-forma basis and in NTD terms, ATM 1Q19 business should be at or slightly below 1Q18 levels; • ATM busines
Slide 33: Thank You
Thank You w w w. a s e g l o b a l . c o m 20