Slide 1: 2H20 Investor Conference
2H20 Investor Conference Feb. 19th, 2021
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 Jessica Huang - CFO 02 Business Recap & Outlook Pei-Ming Chen - President 03 Q&A Pei-Ming Chen & Jessica Huang 3
Slide 4: Financial Results
* fag Financial Results
Slide 5: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 4Q20 3Q20 QoQ 2020 2019 YoY Net Sales 20,348 16,034 4,314 60,683 48,771 11,912 Gross Profit 6,192 4,323 1,869 17,040 12,914 4,126 Gross Margin 30% 27% 28% 26% Operating Income 607 113 494 1,627 1,255 372 Net Non-Operating Income (Loss) (10
Slide 6: Revenue and GM Trend - Consolidated
Revenue and GM Trend - Consolidated (NT$ B) 20.3 16.0 13.4 12.5 12.8 10.9 32% 12.0 11.5 29% 30% 26% 27% 24% 27% 22% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Gross Profit Revenue 6
Slide 7: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Dec. 31, '20 % Jun. 30, '20 % Dec. 31, '19 % Cash 11,744 9% 12,559 12% 11,468 11% Inventory(Net) 14,141 11% 10,583 10% 10,332 10% Property, Plant and Equipment 61,453 49% 55,340 54% 56,977 54% Total Assets 126,043 100% 103,541 100% 104,805 100% L/T Liability
Slide 8: Statement of Cash Flow - Consolidated
Statement of Cash Flow - Consolidated Unit: NT$ M 4Q20 3Q20 QoQ 2020 2019 YoY Operating Cash Flow 4,536 2,268 2,268 11,118 10,576 542 Depreciation & Amortization 2,528 2,359 169 9,463 8,778 685 Investing Cash Flow (1,349) (9,967) 8,618 (14,844) (14,636) (208) CAPEX (2,024) (3,224) 1,200 (8,356) (13,
Slide 9: Statement of Comprehensive Income - Memory
Statement of Comprehensive Income - Memory Unit: NT$ M 4Q20 3Q20 QoQ 2020 2019 YoY Net Sales 10,408 10,354 54 39,650 37,885 1,765 Gross Profit 2,514 2,142 372 8,807 8,239 568 Gross Margin 24% 21% 22% 22% Operating Income 576 132 444 1,091 379 712 Net Non-Operating Income (Loss) (133) 208 (341) 259 9
Slide 10: Revenue and GM Trend - Memory
Revenue and GM Trend - Memory (NT$ B) 10.3 10.4 10.4 9.3 9.5 9.3 9.6 8.7 29% 24% 24% 21% 22% 16% 19% 21% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Gross Profit Revenue 10
Slide 11: Balance Sheet - Memory
Balance Sheet - Memory Unit: NT$ M Dec. 31, '20 % Jun. 30, '20 % Dec. 31, '19 % Cash 4,818 5% 4,824 5% 5,425 6% Inventory(Net) 7,920 8% 8,705 9% 8,750 9% Property, Plant and Equipment 54,399 54% 54,083 57% 55,691 57% Total Assets 100,053 100% 94,564 100% 98,249 100% L/T Liability 17,826 18% 18,362 1
Slide 12: Statement of Cash Flow - Memory
Statement of Cash Flow - Memory Unit: NT$ M 4Q20 3Q20 QoQ 2020 2019 YoY Operating Cash Flow 4,187 1,645 2,542 9,971 10,131 (160) Depreciation & Amortization 2,172 2,150 22 8,645 8,359 286 Investing Cash Flow (2,799) (2,723) (76) (8,654) (15,619) 6,965 CAPEX (1,860) (3,033) 1,173 (7,885) (13,159) 5,2
Slide 13: Y2020 Memory CAPEX
Y2020 Memory CAPEX (NT$ B) 15.2 16.7 13.2 12.7 7.9 2017 2018 2019 2020 2021 (E) Cash Basis, as of Jan. 31th, 2021 13
Slide 14: Business Recap & Outlook
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Slide 15: 4Q20 Revenue Breakdown by Product
4Q20 Revenue Breakdown by Product (NT$ B) 12 11% 9% 9% 10 10% 13% 10% 10% 14% 34% 8 36% 34% 35% 35% 34% 37% 39% 8% 6 8% 9% 10% 9% 9% 7% 4 7% 45% 46% 46% 47% 47% 49% 40% 43% 2 0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 NOR NAND Specialty Mobile 15
Slide 16: Revenue Breakdown by Application
Revenue Breakdown by Application 2019 2020 Car & Industrial Car & Industrial 20% Communication 19% Communication 30% 33% Consumer Consumer 28% Computer 27% Computer 22% 21% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication YoY - 3% YoY - 2% YoY - 1% YoY + 16% NT$
Slide 17: 2020 DRAM Business
2020 DRAM Business Revenue decreased by mid-single digits % YoY Bit shipment increased by high-teens % YoY 25nm DRAM revenue steadily increased 4% 25% 6% 8% 17% 20% 11% 24% 27% 28% 23% 22% 64% 62% 58% 55% 54% 51% 7% 8% 7% 6% 6% 7% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 65nm 46nm 38nm 25nm 17
Slide 18: 2020 Flash Business
2020 Flash Business Both revenue and shipment hit record highs ASP remained flat YoY Winbond remained No.1 NOR Flash supplier worldwide 17% 15% 16% 16% 16% 16% 59% 61% 65% 62% 64% 64% 25% 22% 20% 20% 22% 20% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 90nm 58nm 46nm 18
Slide 19: 2020 Key Achievement
2020 Key Achievement Expanded Fab capacity from 54K to 57K wafers per month The production yield of 25nm DRAM has reached a mature level Launched the W77Q (32 Mbit) TrustME® Secure Serial Flash memory Low Power DRAM and HyperRAM have been successfully adopted in various AI edge computing app
Slide 20: Market and Business Outlook (1)
Market and Business Outlook (1) Specialty DRAM Limited Supply: Major suppliers continued to convert DRAM capacity to CIS Growing Demand: WiFi6, AIoT, ADAS, Wearable, and Game console Code Storage Flash Tight Supply: The situation may continue through 2H’21 for both NOR and SLC NAND Growi
Slide 21: Market and Business Outlook (2)
Market and Business Outlook (2) Overall Market Along with the economic recovery, 5G/ AI/ IoT demand is expected to rise Memory industry is entering into a new up-cycle Global politics and COVID-19 are expected to add uncertainties for the memory market Winbond Business Supply increase: C
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Slide 23: Thank you
Thank you 23