Winbond Electronics Corp. · TWSE:2344
Winbond Electronics — H2 2022 Earnings Presentation
23 slides from Winbond Electronics's earnings presentation, Feb 17, 2023
Slide 1: 2H22 Investor Conference
2H22 Investor Conference Feb. 17th, 2023
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 Chih-Chung Chou - CFO 02 Business Recap & Outlook James Chen - President 03 Q&A James Chen & Chih-Chung Chou 3
Slide 4: Financial Results
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Slide 5: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated Unit: NT$ M 2H22 1H22 HoH 2022 2021 YoY Net Sales 41,369 53,161 (11,792) 94,530 99,570 (5,040) Gross Profit 17,286 25,765 (8,479) 43,051 42,481 570 Gross Margin 42% 49% -7 ppts 46% 42% +4 ppts Operating Income 4,431 12,104 (7,673) 16,535 18,428 (1,893
Slide 6: Revenue and GM Trend – Consolidated
Revenue and GM Trend – Consolidated (NT$ B) 27.0 26.0 26.5 26.6 25.2 21.3 22.1 20.3 49% 48% 45% 45% 46% 19.2 42% 38% 37% 30% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 4Q22 Gross Profit Revenue 6
Slide 7: Balance Sheet - Consolidated
Balance Sheet - Consolidated Unit: NT$ M Dec. 31, '22 % Jun. 30, '22 % Dec. 31, '21 % Cash 20,403 11% 26,419 15% 30,914 20% Inventory(Net) 21,448 12% 18,816 10% 15,941 10% Property, Plant, Equipment and ROU 97,829 53% 91,601 51% 65,882 43% Total Assets 184,165 100% 179,088 100% 152,740 100% L/T Liab
Slide 8: Statement of Cash Flow – Consolidated
Statement of Cash Flow – Consolidated Unit: NT$ M 2H22 1H22 HoH 2022 2021 YoY Operating Cash Flow 3,899 11,797 (7,898) 15,696 28,393 (12,697) Depreciation & Amortization 4,290 5,259 (969) 9,549 11,656 (2,107) Investing Cash Flow (19,194) (25,288) 6,094 (44,482) (8,600) (35,882) CAPEX (17,205) (24,96
Slide 9: Memory Business Performance (1)
Memory Business Performance (1) Unit: NT$ M 2H22 1H22 HoH 2022 2021 YoY Net Sales 20,910 30,862 (9,951) 51,772 58,281 (6,509) Cost of Goods Sold 12,285 14,941 (2,657) 27,226 32,680 (5,454) Gross Profit 8,626 15,921 (7,296) 24,547 25,601 (1,054) Gross Margin 41% 52% -11 ppts 47% 44% +3 ppts Operating
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% 48% 10.5 11.3 43% 11.5 36% 9.4 33% 25% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 4Q22 Gross Profit Revenue 10
Slide 11: Logic Business Performance (1)
Logic Business Performance (1) Unit: NT$ M 2H22 1H22 HoH 2022 2021 YoY Net Sales 19,969 21,903 (1,934) 41,872 41,456 416 Gross Profit 8,103 9,391 (1,288) 17,494 16,856 638 Gross Margin 41% 43% -2 ppts 42% 41% +1 ppts Operating Income 1,736 2,742 (1,006) 4,478 3,327 1,151 Net Non-Operating Income (Lo
Slide 12: Logic Business Performance (2)
Logic Business Performance (2) Unit: NT$ M Dec. 31, '22 % Jun. 30, '22 % Dec. 31, '21 % Cash 10,398 28% 11,350 31% 9,699 28% Inventory(Net) 8,459 23% 7,407 20% 6,859 20% Property, Plant, Equipment and ROU 8,186 22% 7,411 20% 8,452 25% Total Assets 36,852 100% 36,315 100% 34,408 100% L/T Liability 1,
Slide 13: Memory CAPEX
Memory CAPEX (NT$ B) 40.8 12.1 13.2 7.9 9.3 2019 2020 2021 2022 2023(E) Paid Estimated Cash Basis, as of Feb. 17th, 2023 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% 40% 43% 8 35% 6 55% 54% 55% 54% 54% 4 57% 56% 60% 65% 2 0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Flash DRAM 15
Slide 16: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application 2021 2022 Car & Industrial Communication Car & Industrial Communication 22% 32% 27% 29% Consumer 24% Computer Consumer Computer 22% 20% 24% Note: Rev excluded foundry and others Car & Industrial Consumer Computer Communication YoY +10% YoY -24% YoY +0
Slide 17: DRAM Business
DRAM Business ❑ Revenue decreased by 17% YoY in 2022 ❑ Bit shipment decreased by high-teens% YoY in 2022 ❑ 25nm revenue contributed over 65% of total DRAM revenue in 2022 45% 51% 54% 66% 70% 31% 19% 14% 10% 63% 11% 6% 56% 33% 31% 4% 43% 29% 6% 11% 22% 21% 24% 8% 26% 7% 8% 6% 6% 5% 7% 7% 1Q21 2Q21 3Q
Slide 18: Flash Business
Flash Business ❑ Revenue decreased by 6% YoY in 2022 ❑ Bit shipment decreased by mid-single digit% YoY in 2022 ❑ Revenue contribution from high-density NOR kept increasing 19% 15% 17% 18% 18% 20% 18% 23% 63% 67% 66% 63% 65% 63% 65% 63% 19% 19% 18% 18% 17% 17% 15% 14% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q
Slide 19: Market and Business Outlook (1)
Market and Business Outlook (1) ❑ Specialty DRAM ❖ Increased inventory level led to capacity adjustment and Capex control across the industry ❖ Weak demand resulted in weaker purchasing. However, demand in segments like automotive and industrial remains relatively stable ❑ Code Storage Flash ❖ Suppl
Slide 20: Market and Business Outlook (2)
Market and Business Outlook (2) ❑ Overall Market ❖ Oversupply and price erosion may be improved in 2H23 ❖ US-China competition and China re-opening bring both risks and opportunities ❖ Market requires more time to rebound as global economy growth poised to slow ❑ Winbond Business ❖ KH fab starts con
Slide 21: KH Fab Quality Certification & Customer Audit
KH Fab Quality Certification & Customer Audit Environment, Health and Safety Quality Management System Management System IECQ ISO14001 ISO45001 CNS45001 IATF 16949 ISO 9001 Environment Management Occupational Health Taiwan Occupational Safety QC080000 System and Safety Management and Health Manageme
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Slide 23: Thank you
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