Winbond Electronics Corp. · TWSE:2344

Winbond Electronics — Q4 2017 Earnings Presentation

23 slides from Winbond Electronics's earnings presentation, Feb 2, 2018

  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: Statement of Comprehensive Income - Consolidated

    Statement of Comprehensive Income - Consolidated 4Q17 3Q17 2017 2016 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Amount % Net Sales 13,206 100 12,550 100 47,592 100 42,092 100 5,500 13 Gross Profit 4,993 38 4,628 37 16,324 34 12,018 29 4,306 36 Operating Income 2,234 17 2,099 17 6,656

  5. Slide 5: Balance Sheet - Consolidated

    Balance Sheet - Consolidated Dec. 31 ’17 Jun. 30 ’17 Dec. 31 ’16 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Current Assets 37,240 42 26,872 37 27,260 40 9,980 37 Net Fixed Assets 43,829 50 39,846 54 34,373 51 9,456 28 Total Assets 88,116 100 73,609 100 67,989 100 20,127 30 L/T Debt 8

  6. Slide 6: Statement of Cash Flows - Consolidated

    Statement of Cash Flows - Consolidated 4Q17 3Q17 2017 2016 YoY Change Unit: NT$ M Amount Amount Amount Amount Amount Operating Cash Flow 4,709 3,056 12,143 9,991 2,152 Investing Cash Flow (3,076) (3,072) (15,030) (4,747) (10,283) Financing Cash Flow 7,286 (637) 9,446 (3,096) 12,542 Cash & Equivalent

  7. Slide 7: Statement of Comprehensive Income - Memory

    Statement of Comprehensive Income - Memory 4Q17 3Q17 2017 2016 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Amount % Net Sales 10,835 100 10,077 100 38,103 100 33,534 100 4,569 14 Gross Profit 3,948 36 3,495 35 12,158 32 8,260 25 3,898 47 Operating Income 2,002 18 1,801 18 5,711 15 2,9

  8. Slide 8: Balance Sheet - Memory

    Balance Sheet - Memory Dec. 31 ’17 Jun. 30 ’17 Dec. 31 ’16 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Current Assets 31,047 37 21,047 30 21,270 33 9,777 46 Net Fixed Assets 42,969 51 39,000 56 33,608 52 9,361 28 Total Assets 84,410 100 69,947 100 64,399 100 20,011 31 L/T Debt 8,729 1

  9. Slide 9: Statement of Cash Flows - Memory

    Statement of Cash Flows-Memory 4Q17 3Q17 2017 2016 YoY Change Unit: NT$ M Amount Amount Amount Amount Amount Operating Cash Flow 4,227 3,136 11,879 9,338 2,541 Investing Cash Flow (2,909) (2,971) (14,598) (4,349) (10,249) Financing Cash Flow 7,290 (592) 9,503 (3,749) 13,252 Cash & Equivalents 11,658

  10. Slide 10: Revenue and GM Trend - Consolidated

    Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 12.0 40% 37% 38% 10.0 35% 8.0 32% 30% 6.0 28% 28% 28% 29% 30% 13.2 4.0 12.5 11.4 10.7 10.8 25% 10.5 10.4 2.0 10.1 0.0 20% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Revenue Gross Profit 10

  11. Slide 11: Revenue and GM Trend - Memory

    Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 12.0 40% 35% 36% 10.0 35% 8.0 29% 27% 30% 6.0 24% 25% 24% 24% 10.8 25% 4.0 10.1 8.6 8.9 8.2 8.5 8.2 20% 2.0 8.2 15% 0.0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Revenue Gross Profit GM% 11

  12. Slide 12: Y2017 Memory CAPEX

    Y2017 Memory CAPEX (NT$ B) 20 18.5 15.2 13.0 15 10 4.8 3.9 5 3.0 2.1 0 2012 2013 2014 2015 2016 2017 2018 (E) CAPEX(Cash Basis) as of 02/02/2018 12

  13. Slide 13: Winbond Business Update & Outlook

    Winbond Business Update & Outlook

  14. Slide 14: Revenue Breakdown by Product

    Revenue Breakdown by Product Revenue (NT$B) Two Equal-Size Business Drivers 3Q17 QoQ YoY Flash +23% +56% 10.0 Specialty +6% -6% 8.0 49% 52% Mobile -1% +1% 36% 37% 38% 45% 36% 41% 6.0 4Q17 QoQ YoY 4.0 +15% +73% 50% 50% 47% 36% Flash 51% 44% 42% 39% Specialty -1% -2% 2.0 Mobile +6% -2% 13% 14% 13% 15%

  15. Slide 15: Specialty DRAM Business

    Specialty DRAM Business Revenue QoQ YoY 4Q17 -1% -2% 3Q17 6% -6%  Revenue was constrained by limited capacity  Better product mix resulted in higher gross margin YoY 15

  16. Slide 16: Mobile DRAM Business

    Mobile DRAM Business Revenue QoQ YoY 4Q17 6% -2% 3Q17 -1% 1%  Demand for low density Mobile DRAM increased  Expanding business in handheld applications 16

  17. Slide 17: Flash Memory Business

    Flash Memory Business Revenue QoQ YoY 4Q17 15% 73% 3Q17 23% 56%  Strong demand along with favorable ASP and capacity increase  Increasing demand in NOR Flash and SLC NAND Flash by various applications and content per box 17

  18. Slide 18: Y2017 vs Y2016

    Y2017 vs Y2016 NT$B Y2017 Y2016 YoY Specialty 15.3 16.6 (8%) Mobile 4.9 4.6 5% Flash 17.9 12.3 46% Total Revenue 38.1 33.5 14% Total Net Income 5.6 2.9 92%  Specialty DRAM revenue slightly declined due to limited capacity  Stable business in Mobile DRAM  Strong business growth in Flash with favor

  19. Slide 19: Revenue Breakdown by Application

    Revenue Breakdown by Application Balanced 4C application portfolio 2016 2017 Car & Industrial Car & Industrial 18% 19% Communication Communication 32% 29% Consumer 25% Consumer Computer 29% Computer 25% 23% Note: Revenue excluded foundry and others 19

  20. Slide 20: 2017 Winbond Business Recap

    2017 Winbond Business Recap  Revenue and EPS reached 17-year high, despite NTD appreciation.  Continued CAPEX investment to increase Fab capacity & technology migration  Completed SPO fund-raising of NTD 8.8 billion in December 20

  21. Slide 21: Demand & Supply in Specialty DRAM

    Demand & Supply in Specialty DRAM Trend in Demand & Supply Note 1H18 Content per  PON : from 512Mb to 2Gb, for higher speed and density Box  HDD: from 256~512Mb to 1Gb~2Gb for higher density Demand  Smart Speaker New  AI ASIC Applications  Mining Machine  Industry 4.0 (IoT, automation etc.) 

  22. Slide 22: Demand & Supply in Code Storage Flash

    Demand & Supply in Code Storage Flash Trend Demand & Supply Note in 1H18  Surveillance : from 1Gb SLC NAND to 2Gb  XPON : from 128Mb SPI NOR to 256Mb Content per Box  PC BIOS : from 64/128Mb to 128/256Mb, even 256Mb Demand  Smart Speaker  Face Recognition New  Ear Phone Applications  AMOLED 

  23. Slide 23: 2018 Winbond Business Outlook

    2018 Winbond Business Outlook  Markets in Specialty DRAM, NOR Flash and SLC NAND remain healthy  Total capacity will increase from 46K to 52K WPM (26K DRAM + 26K Flash)  Continue to enhance profitability by improving product mix  Shipment in 3x nm DRAM increases 27

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