Winbond Electronics Corp. · TWSE:2344

Winbond Electronics — H1 2024 Earnings Presentation

24 slides from Winbond Electronics's earnings presentation, Aug 2, 2024

  1. Slide 1: 1H24 Investor Conference

    1H24 Investor Conference Aug. 2nd, 2024

  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: Agenda

    Agenda 01 Financial Results Chih-Chung Chou - CFO 02 Business Recap & Outlook James Chen - President 03 Q & A James Chen & Chih-Chung Chou

  4. Slide 4: Financial Results

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  5. Slide 5: Statement of Comprehensive Income - Consolidated

    Statement of Comprehensive Income - Consolidated (In NT$ millions unless otherwise noted) 24Q2 24Q1 QoQ 23Q2 YoY Net Sales 21,484 20,121 +6.8% 18,811 +14.2% Gross Profit 7,112 5,562 +27.9% 5,894 +20.7% Gross Margin 33.1% 27.6% +5 ppts 31.3% +2 ppts Operating Expenses 5,949 5,748 +3.5% 5,961 -0.2% Op

  6. Slide 6: Revenue by Products - Consolidated

    Revenue by Products - Consolidated 48% 46% 2Q24 vs. 1Q24 (QoQ) NT$M 37% 1,446 26,647 33% 31% 32% 28% 28% 28% 22,145 219 21,484 42% 19,174 20,121 2% 19,224 19,506 2% 18,811 -246 17,516 3% 47% 38% CMS Flash Logic IC 42% 50% 47% 45% 43% 51% 31% 2Q24 vs. 2Q23 (YoY) 35% 32% 30% 2,225 34% 32% 32% 33% 29%

  7. Slide 7: Revenue and Gross Margin by Products

    Revenue and Gross Margin by Products Memory Logic IC NT$M NT$M 52% 48% 42% 41% 40% 40% 40% 42% 40% 42% 33% 30% 15,297 34% 20% 21% 16% 15% 10% 12,948 11,533 11,107 11,283 53% 10,336 10,132 10,349 9,391 9,455 9,541 58% 8,838 8,859 8,871 8,318 8,417 8,171 8,151 54% 61% 59% 65% 64% 66% 63% 47% 46% 42% 3

  8. Slide 8: Memory Business Quarterly Highlights

    Memory Business Quarterly Highlights (In NT$ millions unless otherwise noted) 2Q24 1Q24 QoQ 2Q23 YoY Net Sales 12,948 11,283 +14.8% 9,455 +36.9% Gross Profit 3,924 1,637 +139.7% 1,844 +112.8% Gross Margin 30.3% 14.5% +16 ppts 19.5% +11 ppts Operating Expenses 2,590 2,334 +11.0% 2,671 -3.0% Operating

  9. Slide 9: Balance Sheet - Consolidated

    Balance Sheet - Consolidated (In NT$ millions unless otherwise noted) 06.30.2024 03.31.2024 06.30.2023 Cash & Cash Equivalents 13,409 7% 13,710 7% 17,640 10% Accounts Receivable 11,160 6% 11,387 6% 10,485 6% Inventories 22,434 12% 22,392 12% 22,383 12% Long-term Investments 25,235 14% 25,961 14% 27,

  10. Slide 10: Statement of Cash Flow - Consolidated

    Statement of Cash Flow - Consolidated (In NT$ millions unless otherwise noted) 2Q24 1Q24 2Q23 Cash Flow from Operating Activities 4,757 1,723 (396) Depreciation & Amortization 3,196 3,052 2,971 Cash Flow from Investing Activities (2,040) (8,266) (2,130) CAPEX (2,347) (8,578) (2,146) Cash Flow from F

  11. Slide 11: Operating Expenses - Consolidated

    Operating Expenses - Consolidated NT$M 32% 34% 33% 30% 31% 31% 29% 28% 27% 7,089 6,613 1,007 6,243 6,204 5,961 5,978 5,884 5,949 965 5,748 898 853 884 839 802 791 782 SG&A 938 2,004 1,581 864 917 971 912 1,040 1,561 2,219 2,170 2,215 2,242 2,202 2,176 2,129 2,353 2,233 R&D 1,724 1,852 1,551 1,971 2,

  12. Slide 12: Logic Business Performance - Nuvoton Income Statement

    Logic Business Performance - Nuvoton Income Statement (In NT$ millions unless otherwise noted) 2Q24 1Q24 QoQ 2Q23 YoY Net Sales 8,228 8,468 -2.8% 8,953 -8.1% Gross Profit 2,821 3,534 -20.2% 3,622 -22.1% Gross Margin 34.3% 41.7% -7 ppts 40.5% -6 ppts Operating Expenses 3,013 3,078 -2.1% 3,163 -4.8% O

  13. Slide 13: Logic Business Performance - Nuvoton Balance Sheets

    Logic Business Performance - Nuvoton Balance Sheets (In NT$ millions unless otherwise noted) 06.30.2024 03.31.2024 06.30.2023 Cash & Cash Equivalents 7,144 23% 6,433 20% 9,035 25% Accounts Receivable 4,015 13% 4,698 15% 4,567 13% Inventories 6,160 20% 7,060 22% 8,431 24% Long-term Investments 3,252

  14. Slide 14: Corporate Value

    Corporate Value EPS EBITDA NT Dollar 3.41 NT$M 3.23 30% 28% 21% 18% 17% 14% 0.32 0.33 0.30 30,084 (0.29) 26,084 2019 2020 2021 2022 2023 1H24 BVPS NT Dollar 23.66 10,033 11,090 10,226 22.08 21.92 20.71 7,225 16.44 15.33 2019 2020 2021 2022 2023 1H24 2019 2020 2021 2022 2023 1H24 EBITDA EBITDA to Rev

  15. Slide 15: Memory CAPEX

    Memory CAPEX (NT$ B) 40.8 16.0 12.7 7.9 9.3 10.0 2020 2021 2022 2023 2024(E) Paid Estimated Cash Basis, as of Aug. 2nd, 2024 • 1H24 CAPEX was NT$10.0B • 2024 CAPEX is estimated approx. NT$16.0B, in which WFE CAPEX accounts for ~80% 15

  16. Slide 16: Business Recap & Outlook

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  17. Slide 17: Memory Revenue Results

    Memory Revenue Results QoQ YoY 2Q24 vs. 1Q24 2Q24 vs. 2Q23 CMS CMS Revenue +4% +70% Bit Shipment Decreased low-twenties% Increased more than doubled Blended ASP Increased mid-twenties%* Decreased high-twenties% Flash Flash Revenue +24% +20% Bit Shipment Increased high-teens% Increased mid-fifties% B

  18. Slide 18: Memory Business Revenue Breakdown by Application

    Memory Business Revenue Breakdown by Application Car & Industrial Communication QoQ +17% QoQ -3% Car & Communi NT$M YoY +27% NT$M YoY +48% Industrial cation 4,000 4,000 25% 29% 1Q24 3,000 3,000 2,000 2,000 Consumer Computer 28% 18% 1,000 1,000 0 0 1Q24 2Q24 1Q24 2Q24 Consumer Computer QoQ +18% QoQ +

  19. Slide 19: Flash Business

    Flash Business ❑ Stably ww No.1 NOR Flash supplier; kept innovating to lead ❑ 1H24 NOR business bit growth increased by low-twenties% YoY ❑ Revenue from SLC NAND 32nm node kept rising 18% 8% 1% 19% 3% 4% 12% 1% 13% 6% 8% 21% 15% 3% 14% 13% 18% 65% 65% 65% 64% 63% 67% 61% 63% 63% 17% 15% 15% 16% 15%

  20. Slide 20: CMS Business

    CMS Business ❑ 1H24 revenue increased by 71% YoY; contribution from ≦25nm exceeded 70% ❑ 20nm node begun contributing; share expected to be significant in 2H24 by DDR4 and LPDDR4 sales ❑ CUBE developed as planned 2% 3% 70% 26% 20% 15% 7% ≦25nm 63% 4% 6% 49% 56% 56% 54% 47% 4% 52% 51% 6% 9% 21% 11% 1

  21. Slide 21: Market and Business Outlook (1)

    Market and Business Outlook (1) ❑ Code Storage Flash • Supply-demand close to balance for NOR; expected to continue throughout 2024 • Supply and demand are anticipated to tighten in 2025, given channel inventory for SLC NAND will take time to clear the buildup in 1H24; • Growing demand: NB/server, T

  22. Slide 22: Market and Business Outlook (2)

    Market and Business Outlook (2) ❑ Overall Market • World economy recovering but slowly, with uncertainties • AI and Edge AI opportunities will continue to drive the memory upcycle ❑ Winbond Business • 2Q24 revenue returned to mid-2022 levels • 1.2V/ 1.8V/ 3V NOR Flash new products kept evolving with

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  24. Slide 24: Thank you

    Thank you mam Winbond

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