Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q4 2018 Earnings Presentation

23 slides from Wt Microelectronics's earnings presentation, Feb 19, 2019

  1. Slide 1: 2018 Fourth Quarter Investor Conference

    2018 Fourth Quarter Investor Conference Presented by Cheryl Yang February 19, 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. Recap of Recent Major Events 5. Questions and Answers 3

  4. Slide 4: Overview: Strong secular growth with economies of scale

    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: Overview: Offices across Asia

    1. Overview China Offices (33) Harbin 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 Kunshan South Asia Offices (9) Nanjing Hangzhou New Delhi,

  6. Slide 6: Overview: Net revenue history

    1. Overview NR (Net Revenue) YoY=44% NT$B 300 273 YoY=31% 250 YoY=27% 200 189 CAGR(2011~2015)=12% CAGR(2006~2010)=16% 144 150 108 114 100 88 80 71 64 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: 2018 result highlights

    2. Financial Update 2018 result highlights  Strong revenue growth of 44% YoY  Solid operating profit growth of 34% YoY  Stable net profit growth of 10% YoY  Return on net working capital improved 2.3ppt YoY to 11.9%  Operating cash cycle reduced 14 days YoY to 58 days 7

  8. Slide 8: Statement of Comprehensive Income (4Q18)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 4Q18 4Q18 3Q18 4Q17 Key accounts QoQ YoY Amount % Guidance Amount % Amount % Net Operating revenues 85,762 100.00% 85B~91B 84,771 100.00% 1% 59,844 100.00% 43% Gross profit 2,705 3.15% 3.2%~3.4% 3,096 3.65% -13% 2,456 4.10% 10% Operati

  9. Slide 9: Statement of Comprehensive Income (2018)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M Y2018 Y2017 Key accounts YoY Amount % Amount % Net Operating revenues 273,416 100.00% 189,419 100.00% 44% Gross profit 10,649 3.89% 8,421 4.45% 26% Operating expenses (5,391) -1.97% (4,503) -2.38% 20% Operating income 5,258 1.92% 3,918

  10. Slide 10: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 4Q18 3Q18 4Q17 Key accounts Amount % Amount % Amount % Cash and cash equivalents 3,250 4 2,818 3 2,288 3 Accounts receivable 35,294 38 46,421 47 32,326 43 Inventory 46,875 51 42,894 43 33,114 44 Other current assets 2,509 2 2,706 2 2,625 4 Non-current ass

  11. Slide 11: NR by Geography (Ship-to Destination) quarterly

    2. Financial Update NR by Geography (Ship-to Destination) 0.6% 0.5% 0.6% 0.5% 0.7% 0.5% 0.3% 90 QoQ +2% 0.3% 100% 2.3% 2.2% 2.0% 1.8% 2.6% 1.9% 1.9% 80 3Q18 3.4% 3.0% 5.7% 3.5% 5.9% 70 (Left) Revenue (NT$B) 8.1% 8.1% 8.5% 6.1% 5.5% 4.2% 6.0% vs. 8.1% 7.9% 60 9.2% 8.5% 7.1% 4Q18 80% 50 (Right) 40 30

  12. Slide 12: NR by Geography (Ship-to Destination) annual

    2. Financial Update NR by Geography (Ship-to Destination) 0.2% 0.5% 0.5% 0.5% 0.4% 100% 2.3% 2.0% 1.8% 2.0% 2.3% 5.6% 5.1% 7.8% 7.4% 4.3% 7.4% 7.7% 6.0% 7.7% 7.5% 80% Others 60% ASEAN 84.5% 84.7% 82.2% 82.5% 87.0% Korea 40% Taiwan 20% China 0% 2014 2015 2016 2017 2018 250 YoY +52% 200 2017 (Left) Re

  13. Slide 13: NR by Customer Base quarterly

    2. Financial Update NR by Customer Base 100% 1.7% 1.7% 70 2.0% 2.2% 2.0% 2.8% 3.3% 1.9% QoQ +7% 3Q18 6.4% 3.4% 3.9% 9.3% 8.6% 8.8% 6.3% 6.6% 60 (Left) vs. Revenue (NT$B) 50 22.4% 4Q18 80% 26.5% 40 (Right) 34.1% 34.7% QoQ -14% 33.1% 36.5% 36.6% 30 38.5% 20 60% QoQ +16% 10 QoQ -9% 0 Taiwan China Korea

  14. Slide 14: NR by Customer Base annual

    2. Financial Update NR by Customer Base 100% 2.2% 2.2% 1.9% 1.9% 2.3% 6.6% 6.1% 8.3% 8.1% 4.7% 80% 28.7% 38.5% 35.6% 43.6% 45.9% 60% ASEAN Customer Korea Customer 40% China Customer 64.4% Taiwan Customer 51.2% 54.4% 47.5% 45.8% 20% 0% 2014 2015 2016 2017 2018 200 YoY +71% 180 160 2017 (Left) 140 vs.

  15. Slide 15: NR by Application quarterly

    2. Financial Update NR by Application 50 QoQ 14% 100% 2.5% 2.4% 3Q18 3.7% 4.0% 4.2% 3.4% 3.9% 4.3% 5.3% 5.4% (Left) 40 Revenue (NT$B) 7.2% 7.8% 6.6% 6.4% 7.3% 7.5% vs. 9.2% 7.3% 30 4Q18 11.4% 13.4% 14.9% 13.8% 13.5% 14.0% (Right) 80% QoQ -8% 13.7% 20 QoQ -13% 15.9% 17.2% QoQ -20% 10 QoQ +3% 17.7% 16

  16. Slide 16: NR by Application annual

    2. Financial Update NR by Application 100% 3.1% 3.8% 3.2% 3.8% 3.1% 7.3% 7.4% 6.9% 6.1% Others 13.7% 10.3% 15.3% 13.4% 13.2% 80% 16.5% Automotive 21.3% 18.3% 17.6% 21.3% 60% Industry & Instrument 20.7% 20.4% 20.6% 40% 27.2% 25.3% Consumer Computing 20% 37.9% 43.2% 37.4% 28.4% 27.0% Communication 0%

  17. Slide 17: ROE vs. EPS

    2. Financial Update ROE vs. EPS 2.00 18.8% EPS ROE% 19.2% 20% 15.3% 1.50 13.4% 15% 12.0% 12.4% 11.6% 11.0% 1.00 10% 0.50 5% 1.06 1.15 1.61 1.44 1.05 1.12 1.79 1.06 0.00 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 6 EPS ROE% 20% 13.6% 13.3% 5 14.1% 12.9% 15% 4 10.1% 3 10% 2 5% 1 5.18 4.49 3.61 5.26 5.

  18. Slide 18: 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% 11.6% 11.7% 12.0% 10.6% 11.7% 0.15 9.3% 9.8% 10% 0.10 0.05 5% 0.18 0.19 0.18 0.17 0.23 0.24 0.12 0.13 0.00 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 0.30 25% 0.25 NWC/Sales 20% ROWC 0.20 14.8% 11.9% 15% 0.15 9.6%

  19. Slide 19: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 90 80 83 73 68 61 60 60 49 45 30 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 90 AR INV AP Operating cash cycle 77 72 72 60 58 52 30 0 2014 2015 2016 2017 2018 19

  20. Slide 20: Business Outlook

    3. Business Outlook We currently expect 1Q19 :  Revenue : between NT$65 billion ~ NT$70 billion, at a forecast exchange rate of 30.8 NT Dollars to 1 US Dollar  Revenue guidance between 18% ~ 24% QoQ decrease and 31% ~ 41% YoY increase  Gross profit margin : between 3.3% ~ 3.5%  Operating profit

  21. Slide 21: Recap of Recent Major Events

    4. Recap of Recent Major Events  WT was ranked as Top 10 Global Branded Distributor Awards in 2018 by ESM、EET and EDN (Aspencore).  WT published first Corporate Social Responsibility (CSR) Report for the year of 2017. (http://www.wtmec.com/WT/?page_id=12183) 21

  22. Slide 22: Questions and Answers

    nswers

  23. Slide 23: Thank You!

    Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 23

WT Microelectronics — Q4 2018 Earnings Presentation on 6ix