Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H1 2023 Earnings Presentation
26 slides from Winbond Electronics's earnings presentation, Aug 4, 2023
Slide 1: 1H23 Investor Conference
1H23 Investor Conference Aug. 4th, 2023
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: Agenda
Agenda 01 Financial Results Chih-Chung Chou - CFO 02 Business Recap & Outlook James Chen - President 03 Q & A James Chen & Chih-Chung Chou
Slide 4: Financial Results
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Slide 5: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2Q23 1Q23 QoQ 1H23 1H22 YoY Net Sales 18,811 17,516 1,295 36,327 53,161 (16,834) Gross Profit 5,894 4,859 1,035 10,753 25,765 (15,012) Gross Margin 31% 28% +3 ppts 30% 49% -19 ppts Operating Income (310) (1,101) 791 (1,411) 12,104 (13,515)
Slide 6: Revenue and GM Trend – Consolidated
Revenue and GM Trend – Consolidated (NT$ B) 27.0 26.6 25.2 26.0 26.5 22.1 49% 48% 45% 45% 46% 19.2 18.8 42% 17.5 37% 31% 28% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q23 Gross Profit Revenue 6
Slide 7: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Jun. 30, '23 % Dec. 31, '22 % Jun. 30, '22 % Cash 17,640 10% 20,403 11% 26,419 15% Inventory(Net) 22,383 12% 21,448 12% 18,816 10% Property, Plant, Equipment and ROU 94,456 52% 97,829 53% 91,601 51% Total Assets 180,863 100% 184,165 100% 179,088 100% L/T Liab
Slide 8: Statement of Cash Flow – Consolidated
Statement of Cash Flow – Consolidated Unit: NT$ M 2Q23 1Q23 QoQ 1H23 1H22 YoY Operating Cash Flow (396) 489 (885) 93 11,799 (11,706) Depreciation & Amortization 2,972 2,908 64 5,880 5,259 621 Investing Cash Flow (2,130) (2,561) 431 (4,691) (25,288) 20,597 CAPEX (2,145) (2,465) 320 (4,610) (24,960) 2
Slide 9: Memory Business Performance (1)
Memory Business Performance (1) Unit: NT$ M 2Q23 1Q23 QoQ 1H23 1H22 YoY Net Sales 9,455 8,148 1,307 17,603 30,862 (13,259) Cost of Goods Sold 7,611 7,370 242 14,981 14,940 41 Gross Profit 1,844 778 1,065 2,622 15,922 (13,300) Gross Margin 20% 10% +10 ppts 15% 52% -37 ppts Operating Expense 2,745 2,4
Slide 10: Memory Business Performance (2)
Memory Business Performance (2) (NT$ B) 16.7 14.7 15.5 15.6 15.3 51% 52% 47% 47% 48% 43% 11.5 33% 9.4 9.5 8.1 20% 10% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q23 Gross Profit Revenue 10
Slide 11: Logic Business Performance (1)
Logic Business Performance (1) Unit: NT$ M 2Q23 1Q23 QoQ 1H23 1H22 YoY Net Sales 8,953 8,956 (3) 17,909 21,903 (3,994) Gross Profit 3,622 3,611 11 7,233 9,391 (2,158) Gross Margin 40% 40% +0 ppts 40% 43% -3 ppts Operating Income 458 368 90 826 2,742 (1,916) Net Non-Operating Income (Loss) 122 365 (2
Slide 12: Logic Business Performance (2)
Logic Business Performance (2) Unit: NT$ M Jun. 30, '23 % Dec. 31, '22 % Jun. 30, '22 % Cash 9,035 25% 10,398 28% 11,350 31% Inventory(Net) 8,431 24% 8,459 23% 7,407 20% Property, Plant, Equipment and ROU 7,620 21% 8,186 22% 7,411 20% Total Assets 35,709 100% 36,852 100% 36,315 100% L/T Liability 1,
Slide 13: Memory CAPEX
Memory CAPEX (NT$ B) 40.8 13.2 13.0 7.9 9.3 2019 2020 2021 2022 2023(E) Paid Estimated Cash Basis, as of Aug. 4th , 2023 13
Slide 14: Business Recap & Outlook
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Slide 15: Memory Business Revenue Breakdown by Product
Memory Business Revenue Breakdown by Product (NT$ B) 18 16 14 45% 46% 45% 46% 12 46% 10 40% 8 35% 33% 37% 6 55% 54% 55% 54% 54% 4 60% 65% 67% 63% 2 0 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q23 Flash DRAM 15
Slide 16: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application 1Q23 2Q23 Car & Industrial Communication Communication Car & Industrial 28% 26% 23% 27% Consumer Computer Consumer Computer 21% 25% 25% 25% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication QoQ +10% QoQ +43% QoQ +1
Slide 17: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application 1H22 1H23 Car & Industrial Communication Car & Industrial Communication 25% 27% 25% 31% Consumer Consumer Computer Computer 20% 23% 25% 24% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication YoY -37% YoY -32% YoY -3
Slide 18: Flash Business
Flash Business ❑ 1H23 revenue decreased by 32% YoY ❑ 1H23 NOR business bit shipment decreased by high-teens% YoY ❑ 1H23 density ≥64Mb NOR revenue contributed 65% of total NOR revenue ❑ 1H23 record high quantity shipment in SLC NAND business 17% 18% 20% 23% 17% 66% 21% 65% 65% 67% 63% 63% 17% 17% 15%
Slide 19: DRAM Business
DRAM Business ❑ 1H23 revenue decreased by 56% YoY ❑ 1H23 bit shipment decreased by mid-twenties% YoY ❑ 25Snm production starts contribute to DRAM revenue in 2023 66% 70% 63% 6% 56% 58% 55% 4% 6% 11% 10% 22% 21% 24% 10% 26% 25% 29% 6% 5% 7% 7% 7% 6% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 65nm 46nm 38nm 25nm 1
Slide 20: Market and Business Outlook (1)
Market and Business Outlook (1) ❑ Code Storage Flash ❖ Demand across multiple apps is recovering, except smartphone and data center ❖ Increasing demand in high density Flash ❖ No increase in supply from major suppliers ❑ Specialty DRAM ❖ Still in the mode of inventory digestion, but supply has been
Slide 21: Market and Business Outlook (2)
Market and Business Outlook (2) ❑ Overall Market ❖ Economic risks remain as high inflation in USA and slow economy recovery in China ❖ Short visibility on end market demand ❖ Demand outlook in memory remains healthy and promising, driven by multiple fast growing applications, such as AI, autonomous
Slide 22: AI Model Parameters vs DRAM size
AI Model Parameters vs DRAM size Billion GB (DRAM Density) 10000 HBM DRAM Die TSV GPT-4 HBM DRAM Die 1000 Generative AI (GenAI) HBM DRAM Die Microbump GPT-3.5(ChatGPT) 250 HBM DRAM Die Logic Die GPT-3 AMD MI30CX HBM3 HBM AI Model parameters HBM Layout (192GB) 100 A100 HBM3 >1800TOPS (80GB/90GB) Micr
Slide 23: HBM and CUBE
HBM and CUBE Item HBM1 HBM2 HBM2E HBM3 CUBEx Stack height 4HI 8HI 8HI/12HI 8HI/12HI/16HI 1 - 4HI I/O Transfer rates 1 Gbps 2.4 Gbps 3.6 Gbps 6.4 Gbps 500M-2 Gbps Overall package 128 GB/s 256 GB/s 460 GB/s 819 GB/s Up to 1024 GB/s bandwidth Package capacity 4GB 8GB 16GB/24GB 16GB/24GB/32GB 0.5 - 4GB
Slide 24: CUBE: Customized Ultra Bandwidth Element
CUBE: Customized Ultra Bandwidth Element SoC Die Front Side Micro bumps IPD CUBE Die TSV C4 bumps Package Substrate Solder ball (Example of CUBE application, schematic diagrams are not drawn to the scale.) ❑ CUBE benefit: ◆ SoC on top die, better power dispassion Note: ◆ SoC w/o TSV, better system c
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Slide 26: Thank you
Thank you 26