Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q3 2019 Earnings Presentation

17 slides from Wt Microelectronics's earnings presentation, Nov 11, 2019

  1. Slide 1: 2019 Third Quarter Investor Conference

    2019 Third Quarter Investor Conference Presented by Cheryl Yang November 11, 2019

  2. 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

  3. Slide 3: Agenda

    Agenda 1. Overview 2. Financial Update 3. Business Outlook 4. Questions and Answers 3

  4. 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  2018 revenues of NT$273bn, up 44% YoY  48 offices in

  5. Slide 5: 1. Overview: Offices Across Asia

    1. Overview Harbin China Offices (33) Korea Offices (2) Shenyang Dalian Beijing Offices Across Asia Seoul Tianjin Qingdao Taiwan Offices (4) Yantai Zhengzhou Taipei, Headquarters Jinan Xian Hsinchu Ningbo Taichung Shanghai Wuxi Tainan Suzhou Nanjing South Asia Offices (9) Hangzhou Wenzhou New Delhi,

  6. Slide 6: 1. Overview: Net Revenue

    1. Overview NR (Net Revenue) CAGR(2016~2018)=34% NT$B 300 273 250 200 189 144 150 108 114 100 88 80 64 71 41 47 50 34 39 30 21 9 10 14 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6

  7. Slide 7: Statement of Comprehensive Income

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 3Q19 3Q19 2Q19 3Q18 Key accounts QoQ YoY Amount % Guidance Amount % Amount % Net Operating revenues 96,191 100.00% 87B~93B 74,748 100.00% 29% 84,771 100.00% 13% Gross profit 2,977 3.09% 3.1%~3.3% 2,688 3.60% 11% 3,096 3.65% -4% Operati

  8. Slide 8: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 3Q19 2Q19 3Q18 Key accounts Amount % Amount % Amount % Cash and cash equivalents 6,421 6 5,018 5 2,818 3 Accounts receivable 45,438 44 37,211 40 46,421 47 Inventory 42,768 42 44,285 47 42,894 43 Other current assets 2,959 3 2,317 2 2,706 2 Non-current ass

  9. Slide 9: NR by Geography (Ship-to Destination)

    2. Financial Update NR by Geography (Ship-to Destination) 90 QoQ +30% 0.5% 0.7% 0.5% 0.3% 0.3% 0.4% 0.4% 0.3% 100% 1.8% 2.6% 3.4% 1.9% 1.9% 2.5% 2.3% 3.0% 80 2Q19 5.7% 3.0% 3.5% 4.5% 3.6% 3.2% 5.9% 70 (Left) Revenue (NT$B) 6.1% 5.5% 4.2% 5.4% 5.8% 4.8% vs. 6.0% 8.1% 7.9% 60 3Q19 80% 50 (Right) 40 30

  10. Slide 10: NR by Customer Base

    2. Financial Update NR by Customer Base 100% 70 QoQ +41% 1.7% 2.8% 3.3% 1.9% 1.7% 2.1% 2.0% 2.0% 3.4% 3.9% 4.2% 3.8% 2Q19 6.4% 6.3% 4.7% 60 6.6% (Left) vs. Revenue (NT$B) 50 22.4% 3Q19 80% 26.5% 26.7% 30.4% 32.3% 40 (Right) 34.1% 34.7% QoQ +6% 36.6% 30 20 60% 10 QoQ +16% QoQ +29% 0 Taiwan China Kore

  11. Slide 11: NR by Application

    2. Financial Update NR by Application 60 2Q19 100% 3.4% 3.9% 4.3% 2.5% 2.4% 2.5% 3.4% 3.1% QoQ +58% 5.3% 5.4% 5.3% 4.9% 50 (Left) 5.6% Revenue (NT$B) 6.4% 7.3% 7.5% vs. 9.2% 7.3% 8.4% 8.2% 40 3Q19 11.4% 10.5% 13.5% 14.0% 30 (Right) 80% 13.7% QoQ +3% 15.9% 15.2% 14.1% 20 QoQ +17% 17.2% 15.5% QoQ +0%

  12. Slide 12: ROE vs. EPS

    2. Financial Update ROE vs. EPS 19.2% EPS 2.00 20% ROE% 15.3% 1.50 14.2% 15% 12.4% 11.6% 11.0% 10.8% 1.00 10% 6.8% 0.50 5% 1.44 1.05 1.12 1.79 1.06 0.67 1.06 1.38 0.00 0% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 12

  13. Slide 13: ROWC vs. NWC/Sales

    2. Financial Update ROWC vs. NWC/Sales 0.30 25% NWC/Sales 0.25 20% ROWC 0.20 16.1% 15% 13.5% 0.15 10.6% 11.4% 9.3% 9.8% 10.6% 10% 0.10 8.2% 5% 0.05 0.17 0.23 0.24 0.12 0.13 0.18 0.17 0.12 0.00 0% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 13

  14. Slide 14: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 90 83 80 65 62 60 60 49 46 46 30 0 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 14

  15. Slide 15: 3. Business Outlook

    3. Business Outlook We currently expect 4Q19 :  Revenue : between NT$94 billion ~ NT$100 billion, at a forecast exchange rate of 30.5 NT Dollars to 1 US Dollar  Revenue guidance between 2% QoQ decrease to 4% QoQ increase and 10% ~ 17% YoY growth  Gross profit margin : between 2.9% ~ 3.1%  Operat

  16. Slide 16: Questions and Answers

    nswers

  17. Slide 17: Thank You !

    Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 17

WT Microelectronics — Q3 2019 Earnings Presentation on 6ix