Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H2 2019 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Feb 7, 2020
Slide 1: 2H19 Investor Conference
2H19 Investor Conference February 7, 2020
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: Financial Results
Financial Results
Slide 4: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2019Q4 2019Q3 QoQ 2019 2018 YoY Net Sales 12,453 13,420 (967) 48,771 51,190 (2,419) Gross Profit 2,755 3,555 (800) 12,914 19,151 (6,237) Gross Margin 22% 27% 27% 37% Operating Income (137) 496 (633) 1,255 7,927 (6,672) Operating Margin -1%
Slide 5: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 14.0 13.7 13.5 13.4 13.2 12.2 12.5 12.0 11.9 12.0 10.9 10.0 38% 39% 38% 40% 38% 34% 8.0 32% 30% 6.0 26% 27% 4.0 22% 20% 2.0 0.0 10% 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 Revenue Gross Profit 2
Slide 6: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Dec. 31 '19 % Jun. 30 '19 % Dec. 31 '18 % Cash 11,468 11% 14,074 13% 12,560 13% Inventory (Net) 10,332 10% 11,068 11% 10,908 11% Property, Plant and Equipment 56,977 54% 55,730 54% 52,484 55% Total Assets 104,805 100% 103,280 100% 96,042 100% L/T Liability 19
Slide 7: Statement of Cash Flows - Consolidated
Statement of Cash Flows - Consolidated Unit: NT$ M 2019Q4 2019Q3 QoQ 2019 2018 YoY Operating Cash Flow 3,896 1,834 2,062 10,576 13,533 (2,957) Depreciation & Amortization 2,271 2,219 52 8,778 7,583 1,195 Investing Cash Flow (2,623) (5,223) 2,600 (14,636) (17,062) 2,426 CAPEX (2,524) (4,395) 1,871 (1
Slide 8: Statement of Comprehensive Income - Memory
Statement of Comprehensive Income - Memory Unit: NT$ M 2019Q4 2019Q3 QoQ 2019 2018 YoY Net Sales 9,528 10,341 (813) 37,885 40,734 (2,849) Gross Profit 1,484 2,226 (742) 8,239 14,781 (6,542) Gross Margin 16% 22% 22% 36% Operating Income (415) 197 (612) 379 6,944 (6,565) Operating Margin -4% 2% 1% 17%
Slide 9: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 12.0 10.8 10.7 10.9 10.0 9.9 10.3 9.3 9.3 9.5 50% 8.0 8.7 36% 37% 38% 37% 40% 32% 6.0 29% 30% 21% 22% 4.0 16% 20% 2.0 10% 0.0 0% 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 Revenue Gross Profit 6
Slide 10: Balance Sheet - Memory
Balance Sheet - Memory Unit: NT$ M Dec. 31 '19 % Jun. 30 '19 % Dec. 31 '18 % Cash 5,425 6% 11,205 11% 9,385 10% Inventory (Net) 8,750 9% 9,554 10% 9,331 10% Property, Plant and Equipment 55,691 57% 54,779 55% 51,578 56% Total Assets 98,249 100% 98,814 100% 92,173 100% L/T Liability 19,162 19% 16,955
Slide 11: Statement of Cash Flows - Memory
Statement of Cash Flows-Memory Unit: NT$ M 2019Q4 2019Q3 QoQ 2019 2018 YoY Operating Cash Flow 3,188 1,952 1,236 10,131 12,839 (2,708) Depreciation & Amortization 2,159 2,112 46 8,359 7,310 1,049 Investing Cash Flow (4,459) (4,547) 88 (15,619) (17,170) 1,551 CAPEX (2,404) (4,330) 1,926 (13,159) (16,
Slide 12: Y2019 Memory CAPEX
Y2019 Memory CAPEX (NT$ B) 25 20 16.7 15.2 14.3 13.2 15 10 4.8 3.9 5 0 2015 2016 2017 2018 2019 2020 (E) CAPEX (Cash Basis) as of 1/31/2020 9
Slide 13: Winbond Business Recap & Outlook
Winbond Business Recap & Outlook
Slide 14: 4Q19 Revenue Breakdown by Product
4Q19 Revenue Breakdown by Product Revenue (NT$B) 12 12% 10% 10% 10 11% 12% 11% 10% 13% 14% 8 36% 42% 43% 36% 40% 41% 37% 35% 6 39% 7% 8% 9% 8% 7% 7% 8% 7% 4 7% 45% 40% 40% 45% 46% 40% 41% 40% 43% 2 0 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 NOR NAND Specialty Mobile 10
Slide 15: Revenue by Application: Car & Industrial, Consumer, Computer, Communication
2018 2019 Car & Industrial Car & Industrial Communication Communication 16% 20% 29% 30% Consumer Consumer 29% Computer Computer 28% 26% 22% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication YoY + 19% YoY - 8% YoY - 19% YoY - 2% NT$M NT$M NT$M NT$M 10,000 14,0
Slide 16: 2019 DRAM Memory Business
2019 DRAM Memory Business Revenue decreased by 14% YoY; shipment quantity roughly kept the same; ASP dropped low teens%. 25nm DRAM revenue increased gradually 1% 2% 4% 6% 23% 22% 25% 24% 68% 69% 64% 62% 8% 7% 7% 8% 2019Q1 2019Q2 2019Q3 2019Q4 65nm 46nm 38nm 25nm 13
Slide 17: 2019 Flash Memory Business
2019 Flash Memory Business Revenue roughly kept the same YoY Record high shipment quantity Price of SLC NAND slowly recovered since Q4’19 16% 16% 15% 15% 57% 59% 62% 55% 30% 28% 25% 22% 2019Q1 2019Q2 2019Q3 2019Q4 90nm 58nm 46nm 14
Slide 18: Winbond Flash Memory Shipment Quantity
Winbond Flash Memory Shipment Quantity 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 18
Slide 19: 2019 Key Achievement
2019 Key Achievement Record high shipment quantity in Flash memory Increasing business in SLC NAND Flash and increasing opportunities in high speed/high quality applications Introduced 2Gb LP DDR4 product Offered low pin-count/low power HyperRAM for AIoT applications Launched 2Gb+2Gb NAND+
Slide 20: Market and Business Outlook (1)
Market and Business Outlook (1) DRAM Demand-supply balance or slight supply shortage is expected in 2H’20. Market is expected to pick-up in 2020 with 5G ecosystem build-up. Applications of IP Cam, PON, Smart speaker, 4K/8K TV, ADAS, IoT, AI etc. will drive more demand. Code Storage Flash
Slide 21: Market and Business Outlook (2)
Market and Business Outlook (2) Overall Market Recent coronavirus outbreak escalation puts uncertainties for the global economy. Disciplined Capex with inventory adjustment coming to an end will contribute a balanced supply/ demand in 2020. Winbond Business Expand customer base through cro
Slide 22: Thank You
2H19 Investor Conference Thank You February 7, 2020