Ase Technology Holding Co., Ltd. · TWSE:3711
Ase Technology — Q4 2020 Earnings Presentation
19 slides from Ase Technology's earnings presentation, Feb 4, 2021
Slide 1: ASE Technology Holding Fourth Quarter 2020 Earnings Release
ASE Technology Holding Fourth Quarter 2020 Earnings Release ASE Technology Holding Co., Ltd. February 4, 2021 1
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
Slide 3: Consolidated Statements of Comprehensive Income - Quarterly
Consolidated Statements of Comprehensive Income Quarterly Comparison (unaudited) (NT$ Million) Q4 / 2020 % Q3 / 2020 % Q4 / 2019 % QoQ YoY Net Revenues: ATM 69,135 46.4% 69,497 56.4% 66,769 57.5% -1% 4% EMS 79,141 53.2% 53,126 43.1% 48,734 42.0% 49% 62% Others 601 0.4% 572 0.5% 520 0.5% 5% 16% Total
Slide 4: Consolidated Statements of Comprehensive Income - Yearly
Consolidated Statements of Comprehensive Income Yearly Comparison (unaudited) (NT$ Million) FY / 2020 % FY / 2019 % YoY Net Revenues: ATM 270,095 56.6% 245,612 59.4% 10% EMS 204,691 42.9% 165,789 40.1% 23% Others 2,192 0.5% 1,781 0.5% 23% Total Net Revenues 476,978 100.0% 413,182 100.0% 15% Gross Pr
Slide 5: ATM Statements of Comprehensive Income - Quarterly
ATM Statements of Comprehensive Income Quarterly Comparison (unaudited) (NT$ Million) Q4 / 2020 % Q3 / 2020 % Q4 / 2019 % QoQ YoY Net Revenues: Packaging 60,825 83.6% 58,417 81.3% 56,093 81.0% 4% 8% Testing 10,667 14.7% 12,351 17.2% 11,932 17.2% -14% -11% Direct Material 1,229 1.7% 1,020 1.4% 1,228
Slide 6: ATM Statements of Comprehensive Income - Yearly
ATM Statements of Comprehensive Income Yearly Comparison (unaudited) (NT$ Million) FY / 2020 % FY / 2019 % YoY Net Revenues: Packaging 228,574 81.5% 204,073 81.3% 12% Testing 47,277 16.9% 42,664 17.0% 11% Direct Material 4,314 1.5% 4,283 1.7% 1% Others 132 0.1% 134 0.0% -1% Total Net Revenues 280,29
Slide 7: ATM Operations
ATM Operations (unaudited) NT$ Million 80,000 72,752 30% 69,516 71,820 67,901 69,287 66,209 59,595 14,540 16,478 60,000 54,371 14,708 15,697 15,082 13,334 11,101 22.7% 22.6% 20% 8,438 21.7% 21.7% 20.1% 20.2% 18.6% 40,000 15.5% 10% 20,000 0 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Revenue G
Slide 8: ATM Revenue by Application
ATM Revenue by Application (unaudited) 100% 34% 35% 33% 30% 31% 32% 33% 34% 80% 60% 13% 14% 16% 15% 14% 14% 14% 14% 40% 53% 51% 53% 54% 54% 54% 53% 52% 20% 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Communication Computing Automotive, Consumer & Others 8
Slide 9: ATM Revenue by Type
ATM Revenue by Type (unaudited) 100% 2% 2% 2% 2% 2% 2% 1% 2% 16% 17% 17% 17% 17% 18% 17% 15% 80% 8% 8% 9% Material 8% 9% 7% 7% 7% Testing 60% 40% 39% 37% 36% 36% 35% 37% 39% Discrete and Other Wirebonding 40% Bump/FC/WLP /SiP 20% 38% 38% 38% 37% 34% 34% 35% 35% 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20
Slide 10: EMS Operations
EMS Operations Quarterly/Yearly Comparison & Revenue By Application (unaudited) (NT$ Million) Q4 / 2020 % Q3 / 2020 % Q4 / 2019 % QoQ YoY EMS Net Revenues 79,149 100.0% 53,137 100.0% 48,762 100.0% 49% 62% Gross Profit 6,996 8.8% 5,147 9.7% 4,319 8.9% 36% 62% Operating Income (Loss) 3,463 4.4% 2,326
Slide 11: EMS Operations Revenue By Application
EMS Operations Quarterly Comparison & Revenue By Application (unaudited) 100% 1% 1% 1% 1% 1% 1% 5% 6% 4% 4% 6% 3% 4% 3% 9% 10% 10% 9% 8% 14% 15% 11% 80% 32% 28% 24% 41% 33% 40% 39% 60% 38% 12% 14% 11% 4% 40% 9% 14% 6% 13% 20% 40% 43% 46% 40% 45% 36% 36% 29% 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/
Slide 12: Key Balance Sheet Items & Indices
Key Balance Sheet Items & Indices (unaudited) (NT$ Million) Dec. 31, 2020 Sept. 30, 2020 Cash and cash equivalent 51,538 55,814 Financial assets - current 4,894 5,993 Financial assets - non current & investments - equity method 17,401 14,279 Property, plant & equipment 233,207 230,938 Total assets 5
Slide 13: Equipment Capital Expenditure vs. EBITDA
Equipment Capital Expenditure vs. EBITDA (unaudited) US$ Million 1,000 908 788 800 738 751 681 635 582 600 537 495 444 436 457 410 415 379 400 239 200 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Capex EBITDA 13
Slide 14: Business Recap
Business Recap • EAR-affected ATM business has been recovered by 4Q20 (vs. previous expectation of 1Q21) • Capacity remains tight, wirebond shortage expected throughout 2021 • Machinery delivery lead time 6 to 9 months • Capex • ASEH 2020 machinery capex of US$1.7B (vs. previous estimate of $1.8B, d
Slide 15: 2021 Business Outlook
2021 Business Outlook • Sequential quarterly revenue growth from 1Q21 in Group level and target to further improve Group operating margin by 1.5 to 2 percentage points from 2020 into 2021 • 2021 Semi Logic market growth at 5-10% • Strong ATM 1Q21 run rate similar to 4Q20 • ATM 2021 full year growth
Slide 16: Financial Highlights
Financial Highlights • 2020 Holding Company operating expense ratio target ahead • 2020 reported OPEX ratio 9.0%, ahead of original target of 9.4% • Expect to maintain similar OPEX ratio in year 2021 • 2020 Holding Company operating margin target ahead • 2020 reported operating margin 7.3%, netting
Slide 17: First Quarter 2021 Outlook
First Quarter 2021 Outlook* Based on our current business outlook and exchange rate assumptions, management projects overall performance for the first quarter of 2021 to be as follows: • In USD terms, ATM 1st quarter 2021 business should be similar with 4th quarter 2020 levels; • ATM 1st quarter 202
Slide 18: Thank You
Thank You w w w. a s e g l o b a l . c o m 18
Slide 19: Consolidated Statements of Comprehensive Income
Appendix 1 Consolidated Statements of Comprehensive Income (unaudited) (NT$ Thousand) Q1/2020 Q2/2020 Q3/2020 Q4/2020 FY/2020 Revenues 97,357,155 107,548,773 123,195,399 148,877,383 476,978,710 COGS 81,201,507 88,739,372 103,475,591 125,577,972 398,994,442 PPA under COGS 1,049,113 887,560 886,817 88
ASE Technology Holding — Q4 2020 Earnings Presentation on 6ix