Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H2 2016 Earnings Presentation
22 slides from Winbond Electronics's earnings presentation, Feb 7, 2017
Slide 1: Winbond Electronics Corporation
Winbond Electronics Corporation
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: 2H16 Statement of Comprehensive Income - Consolidated
2H16 Statement of Comprehensive Income - Consolidated 2H’16 1H’16 2016 2015 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Amount % Net Sales 21,508 100 20,584 100 42,092 100 38,350 100 3,742 10 Gross Profit 6,015 28 6,003 29 12,018 29 11,822 31 196 2 Operating Income 1,820 8 1,893 9 3,7
Slide 5: 2H16 Balance Sheet - Consolidated
2H16 Balance Sheet - Consolidated Dec. 31 ’16 Jun. 30 ’16 Dec. 31 ’15 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Current Assets 27,260 40 26,409 42 24,713 39 2,547 10 Net Fixed Assets 34,373 51 30,608 49 31,915 51 2,458 8 Total Assets 67,989 100 63,053 100 62,598 100 5,391 9 L/T Debt
Slide 6: 2H16 Statement of Cash Flows - Consolidated
2H16 Statement of Cash Flows - Consolidated 2H’16 1H’16 2016 2015 YoY Change Unit: NT$ M Amount Amount Amount Amount Amount Operating Cash Flow 5,769 4,222 9,991 7,659 2,332 Investing Cash Flow (3,045) (1,702) (4,747) (4,431) (316) Financing Cash Flow (2,313) (1,593) (3,906) (3,861) (45) Cash & Equi
Slide 7: 2H16 Statement of Comprehensive Income - Memory
2H16 Statement of Comprehensive Income - Memory 2H’16 1H’16 2016 2015 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Amount % Net Sales 17,130 100 16,404 100 33,534 100 30,844 100 2,690 9 Gross Profit 4,122 24 4,138 25 8,260 25 8,462 28 (202) (2) Operating Income 1,463 9 1,507 9 2,970 9
Slide 8: 2H16 Balance Sheet - Memory
2H16 Balance Sheet - Memory Dec. 31 ’16 Jun. 30 ’16 Dec. 31 ’15 YoY Change Unit: NT$ M Amount % Amount % Amount % Amount % Current Assets 21,270 33 20,630 35 19,345 33 1,925 10 Net Fixed Assets 33,608 52 29,910 50 31,195 53 2,413 8 Total Assets 64,399 100 59,534 100 59,496 100 4,903 8 L/T Debt 6,638
Slide 9: 2H16 Statement of Cash Flows - Memory
2H16 Statement of Cash Flows-Memory 2H’16 1H’16 2016 2015 YoY Change Unit: NT$ M Amount Amount Amount Amount Amount Operating Cash Flow 5,680 3,658 9,338 7,418 1,920 Investing Cash Flow (2,832) (1,517) (4,349) (4,159) (190) Financing Cash Flow (2,163) (1,586) (3,749) (3,770) 21 Cash & Equivalents 4,
Slide 10: Revenue and GM Trend - Consolidated
Revenue and GM Trend- Consolidated Revenue (NT$B) Gross Margin 24 32% 35% 30% 30% 29% 27% 28% 30% 20 22% 25% 16 20% 20% 12 22 19 21 15% 18 19 8 19 17 10% 17 4 5% 0 0% 1H'13 2H'13 1H'14 2H'14 1H'15 2H'15 1H'16 2H'16 Revenue Gross Profit GM% 10
Slide 11: Revenue and GM Trend - Memory
Revenue and GM Trend- Memory Revenue (NT$B) Gross Margin 18 16 35% 29% 14 30% 26% 26% 25% 12 23% 24% 25% 10 16% 17 20% 14% 16 8 16 16 15 15 15% 6 13 13 10% 4 2 5% 0 0% 1H'13 2H'13 1H'14 2H'14 1H'15 2H'15 1H'16 2H'16 Revenue Gross Profit GM% 11
Slide 12: Y2016 Memory CAPEX
Y2016 Memory CAPEX (NT$ B) 20.0 16.6 13.0 15.0 10.0 4.8 3.0 3.9 5.0 2.1 0.0 2012 2013 2014 2015 2016 2017 (E) CAPEX(Cash Basis) as of 02/07/2017
Slide 13: Winbond Business Update & Outlook
Winbond Business Update & Outlook
Slide 14: Y2016 vs Y2015
Y2016 vs Y2015 NT$B Y2016 Y2015 YoY Specialty 16.6 16.2 3% Mobile 4.6 3.6 30% Flash 12.3 11.1 11% Total Revenue 33.5 30.8 9% Total Net Income 2.9 3.3 (12%) Stable business growth due to improved product/customer mix Increasing R&D expense balanced out some net income Price erosion impacted the
Slide 15: Revenue Breakdown by Application
Revenue Breakdown by Application Growing business in Car and Industrial 2015 2016 Car & Industrial Car & Industrial 11% 18% Communication Communication Consumer 33% 32% 28% Consumer Computer 25% Computer 28% 25% Note: Revenue excluded foundry and others 15
Slide 16: Net Income Trend
Net Income Trend Stable profits Units: NT$ 100 millions 16
Slide 17: Drivers for Stable Growth
Drivers for Stable Growth Serve leading companies in each market segment Stable Profits Adapt to the market trends Differentiating Core Competences Diversified Multiple Highly High Product technology Efficient Quality Portfolio platforms Fab
Slide 18: Product Portfolio For Diversified Applications
Product Portfolio For Diversified Applications Automotive Industrial Mobile/NTWK IoT Consumer Computing • ADAS • Human • Smart • Wearable • Television • PC • Cluster Machine phone Device • Set-Top • PC • Infotainment Interface • Wearable • Smart Box Peripheral (HMI) • xDSL & Home • Cloud • Smart Met
Slide 19: 2H16 Revenue Breakdown by Application
2H16 Revenue Breakdown by Application Car & Industrial Communication 19% 31% Consumer 24% Computer 26% Note: Revenue excluded foundry and others Car & Industrial Consumer Computer Communication HoH + 29% HoH + 2% HoH + 7% HoH - 7% YoY + 33% YoY + 10% YoY - 0% YoY + 7% NT$M NT$M NT$M NT$M 3,500 4,500
Slide 20: 2H16 Revenue Breakdown by Product
2H16 Revenue Breakdown by Product Revenue (NT$B) 18.0 16.0 14.0 35% 36% 38% HoH YoY 35% 37% 12.0 36% Flash +9% +13% 42% 40% 10.0 Specialty -1% +1% 8.0 54% 51% 48% Mobile +11% +47% 6.0 52% 52% 53% 45% 50% 4.0 2.0 14% 13% 11% 12% 11% 12% 11% 13% 0.0 1H'13 2H'13 1H'14 2H'14 1H'15 2H'15 1H'16 2H'16 20
Slide 21: 2H16 Revenue Breakdown by Geometry
2H16 Revenue Breakdown by Geometry Specialty DRAM Mobile DRAM Flash Memory Mobile DRAM 100% 100% 100% 11% 13% 80% 80% 80% 67% 72% 53% 60% 60% 60% 52% 90% 92% 40% 40% 40% 20% 20% 31% 28% 20% 36% 35% 10% 8% 2% 0% 0% 0% 2016H1 2016H2 2016H1 2016H2 2016H1 2016H2 65nm 46nm 90nm 65nm 46nm 90nm 58nm 46nm
Slide 22: 2017 Winbond Business Outlook
2017 Winbond Business Outlook Limited revenue growth because of Fab capacity constraint New Fab capacity will contribute to revenue growth in Q4 2017 Profit margin will improve with better product/customer mix Focus on automotive, industry, IoT, Mobile and KGD Self-developed 3x nm DRAM tec