Ase Technology Holding Co., Ltd. · TWSE:3711

Ase Technology — Q4 2023 Earnings Presentation

21 slides from Ase Technology's earnings presentation, Feb 1, 2024

  1. Slide 1: Fourth Quarter 2023 Earnings Release

    Fourth Quarter 2023 Earnings Release ASE Technology Holding 1 February, 2024

  2. Slide 2: Safe Harbor Notice

    Safe Harbor Notice This presentation contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may

  3. Slide 3: Consolidated Statements of Income - Quarterly Comparison

    Consolidated Statements of Income Quarterly Comparison (Unaudited) (NT$ million) Q4 / 2023 % Q3 / 2023 % Q4 / 2022 % QoQ YoY Net Revenues: ATM 80,761 50.3% 82,590 53.6% 92,742 52.3% -2% -13% EMS 79,155 49.3% 70,948 46.0% 83,931 47.3% 12% -6% Others 665 0.4% 629 0.4% 744 0.4% 6% -11% Total Net Revenu

  4. Slide 4: Consolidated Statements of Income - Yearly Comparison

    Consolidated Statements of Income Yearly Comparison (unaudited) (NT$ million) FY / 2023 % FY / 2022 % YoY Net Revenues: ATM 311,131 53.5% 365,589 54.5% -15% EMS 268,218 46.1% 301,967 45.0% -11% Others 2,565 0.4% 3,317 0.5% -23% Total Net Revenues 581,914 100.0% 670,873 100.0% -13% Gross Profit 91,75

  5. Slide 5: Consolidated Operations

    Consolidated Operations (Unaudited) NT$ million 200,000 30% 829 744 871 665 150,000 629 873 21.4%90,660 19.7% 66,213 20.1%83,931 635 20% 61,163 19.2% 636 79,155 70,948 60,384 16.2% 16.0% 100,000 57,731 16.0% 14.8% 12.8% 12.6% 11.2% 11.1% 10% 6.9% 7.4% 7.4% 50,000 93,355 97,137 92,742 5.9% 82,355 72,

  6. Slide 6: ATM Statements of Income - Quarterly Comparison

    ATM Statements of Income Quarterly Comparison (Unaudited) (NT$ million) Q4 / 2023 % Q3 / 2023 % Q4 / 2022 % QoQ YoY Net Revenues: Packaging 67,378 82.1% 69,731 83.3% 78,119 82.8% -3% -14% Testing 13,363 16.3% 12,819 15.3% 14,676 15.6% 4% -9% Direct Material 1,205 1.5% 1,098 1.3% 1,486 1.6% 10% -19%

  7. Slide 7: ATM Statements of Income - Yearly Comparison

    ATM Statements of Income Yearly Comparison (unaudited) (NT$ million) FY / 2023 % FY / 2022 % YoY Net Revenues: Packaging 260,486 82.7% 310,024 83.3% -16% Testing 49,881 15.8% 55,960 15.0% -11% Direct Material 4,574 1.4% 6,018 1.6% -24% Others 174 0.1% 174 0.1% 0% Total Net Revenues 315,115 100.0% 37

  8. Slide 8: ATM Operations

    ATM Operations (Unaudited) NT$ million 98,831 100,000 94,998 94,322 50% 84,025 83,684 82,004 28,832 76,108 80,000 27,768 26,193 73,319 40% 23,101 18,590 19,218 14,749 16,161 60,000 30% 29.2% 29.2% 27.8% 27.5% 40,000 22.2% 23.4% 20% 20.1% 21.2% 20,000 10% 0 0% Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/2

  9. Slide 9: ATM Revenues by Application

    ATM Revenues by Application (Unaudited) 100% 32% 32% 31% 31% 33% 33% 29% 30% 80% 60% 16% 16% 16% 16% 19% 17% 17% 18% 40% 52% 52% 53% 53% 50% 49% 52% 53% 20% 0% Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Communication Computing Automotive, Consumer & Others 9

  10. Slide 10: ATM Revenues by Type

    ATM Revenues by Type (Unaudited) 100% 2% 1% 2% 2% 1% 2% 1% 2% 15% 15% 15% 15% 16% 16% 15% 16% 6% Material 80% 6% 7% 7% 8% 7% 8% 8% Testing 60% 34% 35% 34% 33% 32% 30% 34% 34% Others 40% Wirebonding Bump/FC/WL 20% 43% 43% 42% 43% 41% 41% 44% 44% P/SiP 0% Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/2

  11. Slide 11: EMS Operations

    EMS Operations Quarterly/Yearly Comparison (unaudited) (NT$ million) Q4 / 2023 % Q3 / 2023 % Q4 / 2022 % QoQ YoY EMS Net Revenues 79,182 100.0% 70,970 100.0% 83,933 100.0% 12% -6% Gross Profit 6,686 8.4% 6,470 9.1% 7,803 9.3% 3% -14% Operating Income (Loss) 2,799 3.5% 2,767 3.9% 3,959 4.7% 1% -29% (

  12. Slide 12: EMS Operations - Quarterly Revenues by Application

    EMS Operations Quarterly Revenues by Application (unaudited) 100% 2% 1% 1% 1% 2% 2% 2% 2% 6% 8% 6% 6% 9% 8% 7% 8% 13% 11% 12% 12% 11% 15% 17% 15% 80% 29% 28% 36% 34% 28% 60% 29% 33% 37% 10% 11% 40% 13% 9% 9% 8% 8% 8% 20% 40% 35% 37% 38% 35% 40% 34% 34% 0% Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4

  13. Slide 13: Key Balance Sheet Items & Indices

    Key Balance Sheet Items & Indices (Unaudited) (NT$ million) Dec. 31, 2023 Sept. 30, 2023 Cash and cash equivalent $67,284 $62,812 Financial assets - current 4,683 9,055 Financial assets - non current & investments - equity method 29,698 28,402 Property, plant & equipment 264,812 267,316 Total assets

  14. Slide 14: Equipment Capital Expenditures vs. EBITDA

    Equipment Capital Expenditures vs. EBITDA (Unaudited) US$ million 1,400 1,283 1,203 1,200 1,141 1,100 1,000 895 885 843 781 800 600 515 443 400 400 339 231 209 239 234 200 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Capex EBITDA 14

  15. Slide 15: Semiconductor Landscape

    Semiconductor Landscape  Opportunities: Likely to reach $1T in the next decade driven by AI, Robotics, EV, ADAS, Energy, XR, IoT  Responsibilities: Net Zero, ESG, circular economy/recycling  Challenges: Geopolitical tensions, Regionalization, Market bifurcation, Added-cost, Reduced-scale  To do’

  16. Slide 16: ASE's Competitive Advantages

    ASE’s Competitive Advantages  Technology  HPC/AI: Taiwan ecosystem and technology leadership  SiP: Heterogeneous integration, embedded devices  Optical: Silicon Photonics, CPO  Automation: Software/Data/Design Ecosystems  Scale efficiencies  Strong financial performance and cash flow  Flexib

  17. Slide 17: 2024 Outlook (1/2)

    2024 Outlook (1/2)  Revenues recovery with faster pace of advanced packaging and testing  Coming out of inventory adjustment in 1H24. Expect growth to accelerate in 2H24 with full year ATM revenues to grow at a similar rate with the logic semiconductor market  Expect a higher revenue mix of Advan

  18. Slide 18: 2024 Outlook (2/2)

    2024 Outlook (2/2)  Well-positioned to participate in the AI boom  On track to double leading-edge advanced packaging revenues from existing customers with at least an additional 250 million USD revenues in 2024; we expect momentum to continue  A comprehensive technology toolbox (3D, 2.5D, Fanout

  19. Slide 19: First Quarter 2024 Outlook

    First Quarter 2024 Outlook Based on our current business outlook and exchange rate assumptions, management projects overall performance for the first quarter of 2024 to be as follows:  In NT dollar terms, our ATM 1st quarter 2024 revenues and gross margin should be similar to the 1st quarter 2023;

  20. Slide 20: Thank you

    Thank you

  21. Slide 21: Consolidated Statements of Comprehensive Income

    Appendix 1 Consolidated Statements of Comprehensive Income (Unaudited) (NT$ thousand) Q1/2022 Q2/2022 Q3/2022 Q4/2022 FY/2022 Q1/2023 Q2/2023 Q3/2023 Q4/2023 FY/2023 Revenues 144,390,827 160,439,019 188,625,557 177,417,239 670,872,642 130,891,073 136,275,353 154,166,844 160,581,201 581,914,471 COGS

ASE Technology Holding — Q4 2023 Earnings Presentation on 6ix