Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H1 2022 Earnings Presentation
24 slides from Winbond Electronics's earnings presentation, Aug 5, 2022
Slide 1: 1H22 Investor Conference
1H22 Investor Conference Aug. 5th, 2022
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: Agenda
Agenda 01 Financial Results Jessica Huang - CFO 02 Business Recap & Outlook James Chen - President 03 Q&A James Chen & Jessica Huang 3
Slide 4: Financial Results
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Slide 5: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2Q22 1Q22 QoQ 1H22 1H21 YoY Net Sales 26,647 26,514 133 53,161 46,560 6,601 Gross Profit 12,888 12,877 11 25,765 18,664 7,101 Gross Margin 48% 49% -1 ppts 49% 40% +9 ppts Operating Income 5,799 6,305 (506) 12,104 6,918 5,186 Net Non-Operat
Slide 6: Revenue and GM Trend – Consolidated
Revenue and GM Trend – Consolidated (NT$ B) 27.0 26.5 26.6 25.2 26.0 20.3 21.3 49% 48% 45% 45% 42% 16.0 38% 12.8 29% 30% 27% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2Q22 Gross Profit Revenue 6
Slide 7: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Jun. 30, '22 % Dec. 31, '21 % Jun. 30, '21 % Cash 26,419 15% 30,914 20% 17,751 13% Inventory(Net) 18,816 10% 15,941 10% 14,454 10% Property, Plant, Equipment and ROU 91,601 51% 65,882 43% 65,558 47% Total Assets 179,088 100% 152,740 100% 139,208 100% L/T Liab
Slide 8: Statement of Cash Flow - Consolidated
Statement of Cash Flow - Consolidated Unit: NT$ M 2Q22 1Q22 QoQ 1H22 1H21 YoY Operating Cash Flow 3,660 8,138 (4,478) 11,797 9,738 2,059 Depreciation & Amortization 2,617 2,642 (25) 5,259 5,469 (210) Investing Cash Flow (15,956) (9,332) (6,624) (25,288) (2,817) (22,471) CAPEX (15,835) (9,125) (6,710
Slide 9: Memory Business Performance (1)
Memory Business Performance (1) Unit: NT$ M 2Q22 1Q22 QoQ 1H22 1H21 YoY Net Sales 15,299 15,563 (264) 30,862 26,029 4,833 Cost of Goods Sold 7,320 7,621 (301) 14,941 15,578 (637) Gross Profit 7,979 7,942 37 15,921 10,451 5,470 Gross Margin 52% 51% +1 ppts 52% 40% +12 ppts Operating Expense 3,464 3,0
Slide 10: Memory Business Performance (2)
Memory Business Performance (2) (NT$ B) 16.7 15.5 15.6 15.3 14.7 51% 52% 47% 47% 11.3 43% 9.7 10.5 10.5 36% 25% 25% 22% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2Q22 Gross Profit Revenue 10
Slide 11: Logic Business Performance (1)
Logic Business Performance (1) Unit: NT$ M 2Q22 1Q22 QoQ 1H22 1H21 YoY Net Sales 11,181 10,722 459 21,903 20,687 1,216 Gross Profit 4,689 4,702 (13) 9,391 8,262 1,129 Gross Margin 42% 44% -2 ppts 43% 40% +3 ppts Operating Income 1,300 1,442 (142) 2,742 1,296 1,446 Net Non-Operating Income (Loss) 424
Slide 12: Logic Business Performance (2)
Logic Business Performance (2) Unit: NT$ M Jun. 30, '22 % Dec. 31, '21 % Jun. 30, '21 % Cash 11,350 31% 9,699 28% 6,270 20% Inventory(Net) 7,407 20% 6,859 20% 6,280 20% Property, Plant, Equipment and ROU 7,411 20% 8,452 25% 9,116 29% Total Assets 36,315 100% 34,408 100% 31,107 100% L/T Liability 1,5
Slide 13: Memory CAPEX
Memory CAPEX 43.9 (NT$ B) 16.7 13.2 7.9 9.3 2018 2019 2020 2021 2022(E) Paid Estimated Cash Basis, as of Aug. 5th , 2022 13
Slide 14: Business Recap & Outlook
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Slide 15: Memory Business Revenue Breakdown by Product
Memory Business Revenue Breakdown by Product (NT$ B) 18 16 14 45% 46% 45% 46% 12 46% 10 44% 43% 43% 8 44% 6 55% 54% 55% 54% 54% 4 56% 57% 57% 56% 2 0 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2Q22 Flash DRAM 15
Slide 16: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application 1Q22 2Q22 Car & Industrial Communication Car & Industrial Communication 24% 26% 30% 32% Consumer 19% Computer Consumer Computer 25% 21% 23% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication QoQ +6% QoQ +8% QoQ -6%
Slide 17: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application 1H21 1H22 Car & Industrial Communication Car & Industrial Communication 25% 31% 19% 35% Consumer Consumer 26% Computer Computer 20% 24% 20% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication YoY +58% YoY -7% YoY +43
Slide 18: DRAM Business
DRAM Business ❑ 1H22 revenue increased by 19% YoY ❑ 1H22 bit shipment was flattish vs 1H21 ❑ 25nm revenue contributed over 65% of total DRAM revenue in 1H22 45% 51% 54% 66% 70% 31% 19% 14% 10% 11% 31% 6% 4% 42% 33% 29% 22% 21% 8% 8% 8% 6% 6% 5% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2Q22 65nm 46nm 38nm 25nm
Slide 19: Flash Business
Flash Business ❑ 1H22 revenue increased by 18% YoY ❑ Revenue contribution from high-density NOR kept increasing ❑ Leading position in NOR Flash and market share grew continually 19% 17% 15% 18% 18% 18% 63% 67% 66% 65% 63% 63% 19% 19% 18% 18% 17% 17% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 90nm 58nm 46nm 19
Slide 20: Market and Business Outlook (1)
Market and Business Outlook (1) ❑ Specialty DRAM ❖ Supply slightly decreased in 1H22 ❖ Overall demand declined temporarily, but demand in segments like Wi-Fi 6/7, IoT, and industrial remains solid ❑ Code Storage Flash ❖ Stable supply in 1H22 ❖ Weak demand in consumer sectors and low-density products
Slide 21: Market and Business Outlook (2)
Market and Business Outlook (2) ❑ Overall Market ❖ Overbooking last year needs some time for inventory adjustment ❖ Outlook is expected to be cautious due to inflation and global economic uncertainties ❑ Winbond Business ❖ KH fab: 10K wpm mass production will start slightly later than expectation du
Slide 22: New Product Introduction
New Product Introduction 1.2V SPI NOR Flash in 64Mb LPDDR4/4X 100BGA ❖ The First Ultra-Low-Voltage SPI Flash M/P ❖ Latest JEDEC standard in industry ❖ Ideal for IoT devices; available in density ❖ Ideal for the latest generation of IoT of 1Gb and 2Gb, up to 4267Mbps devices 22
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Slide 24: Thank you
Thank you 24