Wt Microelectronics Co., Ltd. · TWSE:3036
Wt Microelectronics — Q4 2017 Earnings Presentation
21 slides from Wt Microelectronics's earnings presentation, Feb 8, 2018
Slide 1: 2017 Fourth Quarter Investor Conference
2017 Fourth Quarter Investor Conference Presented by Cheryl Yang February 8, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement WT’s forward-looking statements, which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WT’s current expectations. Actual results may differ materially from
Slide 3: Agenda
Agenda 1. Overview 2. Financial Update 3. Business Outlook 4. Questions and Answers 3
Slide 4: 1. Overview
1. Overview Strong secular growth with economies of scale A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT) Strategic focus on Asia region and Automotive & Internet of Things (IoT) applications 2017 revenues of NT$189bn, up 31% YoY 45 offices in Asia (30
Slide 5: Offices Across Asia
1. Overview China Offices (30) Korea Office (1) Harbin Shenyang Dalian Offices Across Asia Seoul Beijing Qingdao Taiwan Offices (4) Zhengzhou Taipei, Headquarters Jinan Xian Hsinchu, R&D Ningbo Shanghai Taichung Wuxi Tainan Suzhou Kunshan South Asia Offices (10) Nanjing Hangzhou Wenzhou New Delhi, N
Slide 6: Net Revenue 2000-2017
1. Overview NR (Net Revenue) YoY=31% NT$B YoY=27% 200 189 180 CAGR(2011~2015)=12% 160 144 CAGR(2006~2010)=16% 140 120 114 108 100 88 80 80 71 64 60 47 39 41 40 30 34 21 20 10 14 5 9 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6
Slide 7: Statement of Comprehensive Income 4Q17
2. Financial Update Statement of Comprehensive Income Unit: NT$M 4Q17 3Q17 4Q16 Key accounts QoQ YoY Amount % Amount % Amount % Net Operating revenues 59,844 100.00% 50,833 100.00% 17.73% 45,452 100.00% 31.66% Gross profit 2,456 4.10% 2,245 4.42% -0.32ppt 1,913 4.21% -0.11ppt Operating expenses (1,3
Slide 8: Statement of Comprehensive Income 2017
2. Financial Update Statement of Comprehensive Income Unit: NT$M Y2017 Y2016 Key accounts YoY Amount % Amount % Net Operating revenues 189,419 100.00% 144,147 100.00% 31.41% Gross profit 8,421 4.45% 6,925 4.80% -0.35ppt Operating expenses (4,503) -2.38% (4,464) -3.10% -0.72ppt Operating income 3,918
Slide 9: Balance Sheet
2. Financial Update Balance Sheet Unit: NT$M 4Q17 3Q17 4Q16 Key accounts Amount % Amount % Amount % Cash and cash equivalents 2,670 4 2,178 3 2,081 4 Accounts receivable 32,527 43 29,980 44 29,302 48 Inventory 33,114 44 30,140 44 22,133 36 Other current assets 2,355 3 1,962 3 3,645 5 Non-current ass
Slide 10: NR by Geography (Ship-to Destination)
2. Financial Update NR by Geography (Ship-to Destination) 0.4% 0.5% 0.7% 0.4% 0.6% 0.5% 0.6% 0.5% 60 100% QoQ +24% 2.1% 2.1% 1.7% 1.5% 2.3% 2.2% 2.0% 1.8% 3Q17 5.7% 7.0% 5.7% 50 (Left) 7.1% Revenue (NT$B) 10.5% 8.1% 8.1% 8.5% 6.4% 6.0% vs. 9.5% 8.9% 40 7.2% 9.2% 8.5% 7.1% 4Q17 80% (Right) 30 20 QoQ
Slide 11: NR by Geography (Ship-to Destination) Annual
2. Financial Update NR by Geography (Ship-to Destination) 0.5% 0.2% 0.5% 0.5% 0.6% 100% 3.2% 2.3% 2.0% 1.8% 2.0% 6.4% 5.6% 5.1% 7.8% 7.5% 7.4% 7.7% 7.7% 7.5% 8.4% 80% Others 60% ASEAN 84.5% 84.7% 82.2% 82.5% Korea 40% 81.5% Taiwan 20% China 0% 2013 2014 2015 2016 2017 180 YoY +32% 160 140 2016 120 (
Slide 12: NR by Customer Base
2. Financial Update NR by Customer Base 100% 1.7% 1.6% 1.7% 40 QoQ +34% 2.4% 2.3% 2.0% 2.2% 2.0% 3Q17 6.1% 7.3% 7.8% 9.3% 8.6% 8.8% 6.4% 35 (Left) 11.2% 30 vs. Revenue (NT$B) QoQ +4% 4Q17 25 80% (Right) 30.4% 34.1% 20 33.1% 36.5% 35.7% 38.5% 15 47.9% 46.3% 10 QoQ -14% 60% QoQ 0% 5 0 Taiwan China Kor
Slide 13: NR by Customer Base Annual
2. Financial Update NR by Customer Base 100% 2.9% 2.2% 2.2% 1.9% 1.9% 7.3% 6.6% 6.1% 8.3% 8.1% 80% 40.7% 38.5% 35.6% 43.6% 45.9% 60% ASEAN Customer Korea Customer 40% China Customer Taiwan Customer 49.2% 51.2% 54.4% 47.5% 45.8% 20% 0% 2013 2014 2015 2016 2017 120 YoY +40% 100 2016 YoY +21% (Left) 80
Slide 14: NR by Application
2. Financial Update NR by Application 30 3Q17 100% 3.7% 3.4% 2.9% 3.0% 3.7% 4.0% 4.2% 3.4% QoQ +31% 25 (Left) 6.9% 6.2% Revenue (NT$B) 8.3% 9.0% 7.2% 7.8% 6.6% 6.4% vs. 20 4Q17 12.8% 10.9% 11.4% QoQ +9% 13.4% 14.9% 13.8% 15 QoQ +23% (Right) 80% 15.9% 15.5% QoQ -3% 10 15.5% QoQ +14% 17.1% 17.2% 17.7%
Slide 15: NR by Application Annual
2. Financial Update NR by Application 100% 3.1% 3.8% 3.2% 3.8% 7.1% 6.2% 7.3% 7.4% 6.9% 12.4% Others 13.7% 15.3% 13.4% 13.2% 80% Automotive 22.0% 18.3% 17.6% 21.3% 21.3% 60% Industry & Instrument 20.4% 20.6% 30.4% 27.2% Consumer 40% 25.3% Computing 20% 37.4% 37.9% 28.0% 28.4% 27.0% Communication 0%
Slide 16: ROE vs. EPS
2. Financial Update ROE vs. EPS EPS 6.00 18.82% 20% ROE% 15.27% 5.00 16.03% 14.05% 13.42% 15% 4.00 11.36% 12.51% 12.01% 11.74% 12.31% 12.15% 3.00 10% 10.67% 9.55% 2.00 4.69% 5% 1.00 0.00 0% 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 ITEM 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 17: ROWC vs. NWC/Sales
2. Financial Update ROWC vs. NWC/Sales 0.30 NWC/Sales 25% ROWC 0.25 20% 0.20 14.83% 13.16% 15% 11.92% 0.15 11.66% 11.66% 12.04% 10.94% 10.91% 10.56% 9.32% 10% 0.10 9.04% 8.72% 8.13% 5% 0.05 4.54% 0.00 0% 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 ITEM 2013 2014 1Q15 2Q15 3
Slide 18: Operating Cash Cycle
2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 100 92 93 82 85 80 73 69 67 65 68 60 61 60 54 60 52 40 20 0 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Turnover days 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 AR 46 43 53 66
Slide 19: 3. Business Outlook
3. Business Outlook We currently expect 1Q 18 : Revenue : between NT$48 billion ~ NT$51 billion, at a forecast exchange rate of 29.3 NT Dollars to 1 US Dollar Gross profit margin : between 4.4% ~ 4.6% Operating profit margin : between 2.0% ~ 2.2% 19
Slide 20: Questions and Answers
nswers
Slide 21: Thank You!
Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 21