Slide 1: Second Quarter 2022 Earnings Release
ASE Technology Holding Second Quarter 2022 Earnings Release ASE Technology Holding Co., Ltd. July 28, 2022 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: 1H22 Recap
1H22 Recap • 2Q22 and 1H22 performance ahead of expectation • 2Q22 ASE HoldCo revenues grew 27% year-over-year (all in USD terms); 1H22 revenues grew 28% year over year (all on the pro forma basis) • 2Q22 ASE ATM revenues grew 25% year-over-year; 1H22 revenues grew 25% year-over-year with 1H22 advan
Slide 4: 2022 Update
2022 Update • Our 2022 full year outlook is on track. • The overall market is undergoing an inventory correction with some sectors that are more aggressive than the others; however, some sectors remained constrained. With our diversified customer portfolio and manufacturing flexibility, we are seein
Slide 5: Structural improvement of efficiency and margin
Structural improvement of efficiency and margin • For the past two years, we have made great strides in ASE-SPIL synergy in RD, operation streamlining, capacity planning, business consolidation, customer portfolio calibration, and procurement. • Advancements in automation have improved ASE’s manufac
Slide 6: Business Outlook
Business Outlook • For next year, it's too early to comment on the macro environment and potential end market demand shifts; however, the general perception is seasonality will resume in Q1 2023. • We believe backend capacity is in a healthy position. Incremental backend capacity added is relatively
Slide 7: Consolidated Statements of Income
Consolidated Statements of Income Quarterly Comparison (unaudited) Pro Forma Basis* (NT$ Million) Q2 / 2022 % Q1 / 2022 % Q2/ 2021 % QoQ YoY Q2 / 2021 % YoY Net Revenues: ATM 93,355 58.2% 82,355 57.0% 77,160 60.8% 13% 21% 70,919 58.8% 32% EMS 66,213 41.3% 61,163 42.4% 49,147 38.7% 8% 35% 49,147 40.7
Slide 8: Consolidated Operations
Consolidated Operations (unaudited) NT$ Million 180,000 40% 812 160,000 871 140,000 758 873 30% 81,541 66,213 120,000 619 602 61,116 61,163 100,000 49,147 21.4% 47,684 19.4% 20.3% 19.7% 20% 18.3% 18.9% 80,000 60,000 12.1% 12.8% 11.3% 11.2% 93,355 40,000 9.1% 10.3% 82,019 83,805 82,355 10% 65,557 70,
Slide 9: ATM Statements of Income
ATM Statements of Income Quarterly Comparison (unaudited) Pro Forma Basis* (NT$ Million) Q2 / 2022 % Q1 / 2022 % Q2 / 2021 % QoQ YoY Q2 / 2021 % YoY Net Revenues: Packaging 79,894 84.1% 69,921 83.2% 65,936 83.5% 14% 21% 60,716 83.5% 32% Testing 13,760 14.5% 12,583 15.0% 11,677 14.8% 9% 18% 10,656 14
Slide 10: ATM Operations
ATM Operations (unaudited) NT$ Million 100,000 94,998 50% 83,321 85,180 84,025 80,000 72,747 27,768 40% 68,139 24,301 23,101 23,181 18,876 60,000 16,989 30% 27.8% 28.5% 27.5% 29.2% 25.9% 40,000 24.9% 20% 20,000 10% 0 0% Q1/21* Q2/21* Q3/21* Q4/21* Q1/22 Q2/22 Revenue Gross Profit Gross Margin *: We
Slide 11: ATM Revenue by Application
ATM Revenue by Application (unaudited) 100% 33% 33% 32% 31% 32% 32% 80% 60% 14% 15% 15% 16% 16% 16% 40% 53% 52% 53% 53% 52% 52% 20% 0% Q1/21* Q2/21* Q3/21* Q4/21* Q1/22 Q2/22 Communication Computing Automotive, Consumer & Others *: We are providing you with the unaudited pro forma financial informat
Slide 12: ATM Revenue by Type
ATM Revenue by Type (unaudited) 100% 2% 2% 2% 2% 2% 1% 15% 15% 15% 15% 15% 15% 80% 8% 7% 7% 7% 6% 6% Material Testing 60% 36% 34% 35% 38% 40% 37% Others Wirebonding 40% Bump/FC/WLP /SiP 20% 39% 40% 43% 43% 37% 36% 0% Q1/21* Q2/21* Q3/21* Q4/21* Q1/22 Q2/22 *: We are providing you with the unaudited
Slide 13: EMS Operations
EMS Operations Quarterly Comparison & Revenue by Application (unaudited) (NT$ Million) Q2 / 2022 % Q1 / 2022 % Q2/ 2021 % QoQ YoY EMS Net Revenues 66,218 100.0% 61,166 100.0% 49,154 100.0% 8% 35% Gross Profit 6,650 10.0% 5,380 8.8% 4,476 9.1% 24% 49% Operating Income (Loss) 2,667 4.0% 2,200 3.6% 1,2
Slide 14: Key Balance Sheet Items & Indices
Key Balance Sheet Items & Indices (unaudited) (NT$ Million) Jun 30, 2022 Mar 31, 2022 Cash and cash equivalent $72,846 $84,426 Financial assets - current 6,136 4,698 Financial assets - non current & investments - equity method 22,356 23,202 Property, plant & equipment 254,784 247,541 Total assets 71
Slide 15: Equipment Capital Expenditure vs. EBITDA
Equipment Capital Expenditure vs. EBITDA (unaudited) US$ Million 1,400 1,174 1,203 1,200 1,108 1,100 1,000 916 830 800 567 600 515 432 425 437 443 400 200 0 Q1/21* Q2/21* Q3/21* Q4/21* Q1/22 Q2/22 Capex EBITDA *: We are providing you with the unaudited pro forma financial information to assist you i
Slide 16: Third Quarter 2022 Outlook
Third Quarter 2022 Outlook* Based on our current business outlook and exchange rate assumptions, management projects overall performance for the third quarter of 2022 to be as follows: • In US dollar terms, our ATM 3rd quarter 2022 business levels should be slightly above 2nd quarter 2022 levels; •
Slide 17: Thank You
Thank You w w w. a s e g l o b a l . c o m 17
Slide 18: Consolidated Statements of Comprehensive Income
Appendix 1 Consolidated Statements of Comprehensive Income Pro Forma Historical Data* (unaudited) (NT$ Million) Q1/2021 % Q2/2021 % Q3/2021 % Q4/2021 % FY/2021 % Net Revenues: ATM 65,557 57.6% 70,919 58.8% 82,019 57.0% 83,805 50.4% 302,300 55.5% EMS 47,684 41.9% 49,147 40.7% 61,116 42.5% 81,541 49.1
Slide 19: ATM Statements of Comprehensive Income
Appendix 2 ATM Statements of Comprehensive Income Pro Forma Historical Data* (unaudited) (NT$ Million) Q1/2021 % Q2/2021 % Q3/2021 % Q4/2021 % FY/2021 % Net Revenues: Packaging 56,844 83.4% 60,716 83.5% 69,512 83.4% 70,942 83.3% 258,014 83.4% Testing 10,204 15.0% 10,656 14.6% 12,354 14.8% 12,700 14.
Slide 20: Consolidated Statements of Comprehensive Income
Appendix 3 Consolidated Statements of Comprehensive Income (unaudited) (NT$ Thousand) Q1/2021 Q2/2021 Q3/2021 Q4/2021 FY/2021 Q1/2022 Q2/2022 Revenues 119,469,784 126,926,346 150,664,816 172,936,186 569,997,132 144,390,827 160,439,019 COGS 97,583,415 102,122,197 119,880,851 140,041,892 459,628,355 1