Winbond Electronics Corp. · TWSE:2344

Winbond Electronics — Q4 2018 Earnings Presentation

23 slides from Winbond Electronics's earnings presentation, Jan 31, 2019

  1. Slide 1: 2018 Q4 Investor Conference

    2018 Q4 Investor Conference Jan 31, 2019

  2. 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

  3. Slide 3: Financial Results

    Financial Results

  4. Slide 4: Statement of Comprehensive Income - Consolidated

    Statement of Comprehensive Income - Consolidated Unit: NT$ M 2018Q4 2018Q3 QoQ 2018 2017 YoY Net Sales 11,868 13,681 (1,812) 51,190 47,592 3,598 Gross Profit 4,072 5,250 (1,178) 19,151 16,324 2,827 Gross Margin 34% 38% 37% 34% Operating Income 1,229 2,212 (984) 7,927 6,656 1,271 Operating Margin 10%

  5. Slide 5: Revenue and GM Trend - Consolidated

    Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 14.0 13.5 13.7 13.2 12.0 12.5 12.2 39% 11.9 40% 11.4 37% 38% 38% 38% 10.8 10.4 10.0 8.0 32% 34% 35% 6.0 29% 28% 30% 4.0 25% 2.0 0.0 20% 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 Revenue Gross Profit GM% 2

  6. Slide 6: Balance Sheet - Consolidated

    Balance Sheet - Consolidated Unit: NT$ M Dec. 31 '18 % Sep. 30 '18 % Dec. 31 '17 % Cash 12,560 13% 16,571 17% 14,172 16% Inventory (Net) 10,908 11% 9,906 10% 8,140 9% Property, Plant and Equipment 52,484 55% 49,131 50% 43,829 50% Total Assets 96,042 100% 98,760 100% 88,116 100% Long Term Liability 1

  7. Slide 7: Statement of Cash Flows - Consolidated

    Statement of Cash Flows - Consolidated Unit: NT$ M 2018Q4 2018Q3 . QoQ 2018 2017 YoY Operating Cash Flow 3,145 3,178 (33) 13,533 12,143 1,390 Depreciation & Amortization 2,016 1,974 42 7,583 6,084 1,499 Investing Cash Flow (5,215) (1,682) (3,533) (17,062) (15,030) (2,032) CAPEX (5,135) (1,656) (3,47

  8. Slide 8: 2018 Financial Highlight - Consolidated

    2018 Financial Highlight- Consolidated Unit: NT$ M 2018 2017 YoY Net Sales 51,190 47,592 +8% Gross Margin 37% 34% + 3 ppts. Operating Margin 15% 14% + 1 ppts. Net Income 7,728 5,823 +33% EBITDA 15,510 12,740 +22% EPS (NT$) 1.87 1.54 +21% Operating Cash Flow 13,533 12,143 +12% CAPEX 16,930 15,412 +10

  9. Slide 9: Statement of Comprehensive Income - Memory

    Statement of Comprehensive Income - Memory Unit: NT$ M 2018Q4 2018Q3 QoQ 2018 2017 YoY Net Sales 9,293 10,903 (1,610) 40,734 38,103 2,631 Gross Profit 2,982 4,077 (1,095) 14,781 12,158 2,623 Gross Margin 32% 37% 36% 32% Operating Income 967 1,932 (965) 6,944 5,711 1,233 Operating Margin 10% 18% 17%

  10. Slide 10: 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 10.1 9.9 40% 38% 37% 9.3 8.9 37% 8.6 36% 8.0 8.2 35% 35% 6.0 32% 29% 30% 4.0 24% 25% 25% 2.0 0.0 20% 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 Revenue Gross Profit 7

  11. Slide 11: Balance Sheet - Memory

    Balance Sheet - Memory Unit: NT$ M Dec. 31 '18 % Sep. 30 '18 % Dec. 31 '17 % Cash 9,385 10% 13,898 15% 11,658 14% Inventory (Net) 9,331 10% 8,327 9% 6,497 8% Property, Plant and Equipment 51,578 56% 48,220 51% 42,969 51% Total Assets 92,173 100% 95,000 100% 84,410 100% Long Term Liability 14,099 15%

  12. Slide 12: Statement of Cash Flows - Memory

    Statement of Cash Flows-Memory Unit: NT$ M 2018Q4 2018Q3 QoQ 2018 2017 YoY Operating Cash Flow 2,589 3,260 (671) 12,839 11,879 960 Depreciation & Amortization 1,947 1,904 43 7,310 5,821 1,489 Investing Cash Flow (5,140) (2,042) (3,098) (17,170) (14,598) (2,572) CAPEX (5,070) (1,609) (3,461) (16,714)

  13. Slide 13: Y18 & Y19 Memory CAPEX

    Y18 & Y19 Memory CAPEX CAPEX (Cash Basis) as of 12/31/2018 (NT$ B) 25 21.5 20 16.7 15.2 13.0 15 10 4.8 3.9 5 2.1 0 2013 2014 2015 2016 2017 2018 2019 (E) Non-Audit Financials 10

  14. Slide 14: Winbond Business Recap & Outlook

    Winbond Business Recap & Outlook

  15. Slide 15: 4Q18 Revenue Breakdown by Product

    4Q18 Revenue Breakdown by Product Revenue (NT$B) 12 12% 10% 10% 10 12% 12% 11% 13% 8 15% 15% 36% 42% 43% 39% 40% 41% 6 42% 47% 44% 7% 6% 8% 7% 8% 7% 4 5% 4% 4% 43% 45% 40% 40% 2 40% 40% 41% 34% 37% 0 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 NOR NAND Specialty Mobile 11

  16. Slide 16: 4Q18 Revenue Breakdown by Application

    4Q18 Revenue Breakdown by Application Car & Industrial Communication 18% 26% Consumer Computer 30% 26% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication QoQ - 8% QoQ - 14% QoQ - 12% QoQ - 14% NT$M NT$M NT$M NT$M 2,000 3,500 3,000 3,000 3,000 2,500 2,500 1,500

  17. Slide 17: 2018 Revenue Breakdown by Application

    2018 Revenue Breakdown by Application Car & Industrial 16% Communication 29% Consumer 29% Computer 26% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication YoY - 6% YoY 7% YoY 18% YoY 6% NT$M NT$M NT$M NT$M 8,000 12,000 12,000 12,000 10,000 10,000 10,000 6,000 8

  18. Slide 18: DRAM Memory Business

    DRAM Memory Business  Revenue decreased by 17% QoQ ; shipment declined low teens % ; ASP dropped low single digit %.  Started small volume ramp up of 25nm 2G DDR3 in 4Q18. 7% 15% 24% < 1% 24% 85% 77% 68% 68% 8% 8% 8% 7% 2018Q1 2018Q2 2018Q3 2018Q4 65nm 46nm 38nm 25nm 14

  19. Slide 19: Flash Memory Business

    Flash Memory Business  Revenue decreased by 12% QoQ ; shipment down high single digit % ; ASP down low single digit %.  Price competition in NAND was more intense than in NOR. 17% 15% 17% 15% 55% 54% 58% 55% 28% 29% 27% 30% 2018Q1 2018Q2 2018Q3 2018Q4 90nm 58nm 46nm 15

  20. Slide 20: 2018 Key Achievement

    2018 Key Achievement  Successful raising of NT$10 Billion Secured Ordinary Corporate Bonds  Groundbreaking for new Kaohsiung Fab  1.2V Serial NOR Flash won「2018 World Electronics Achievement Awards- Memory of the Year」  Started volume ramp up of 25nm 16

  21. Slide 21: Market Status and Outlook

    Market Status and Outlook 2017 ~ 2018/1H 2018/2H 2019 Market: Market: Market:  Thriving demand from all  US/China trade war initiated  Demand downside in applications smart phones and Bitcoin  EMS supply chain  Order overbooking & pull-in relocation  Demand from end by channels consumers in ge

  22. Slide 22: Winbond Business Outlook

    Winbond Business Outlook  Business  Demand and share in major customers is solid  Product  2Gb/4Gb DDR3 and 2Gb LP DDR4  256Mb and 512 Mb Serial NOR Flash for PC BIOS, server and automotive  Automotive and Serial SLC NAND: increasing design-in  Security Flash and 1.2V SPI Flash for future opp

  23. Slide 23: Thank You

    2018 Q4 Investor Conference Thank You Jan 31, 2019

Winbond Electronics — Q4 2018 Earnings Presentation on 6ix