Ase Technology Holding Co., Ltd. · TWSE:3711
Ase Technology — Q3 2020 Earnings Presentation
17 slides from Ase Technology's earnings presentation, Oct 30, 2020
Slide 1: ASE Technology Holding Third Quarter 2020 Earnings Release
ASE Technology Holding Third Quarter 2020 Earnings Release ASE Technology Holding Co., Ltd. October 30, 2020 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: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Quarterly Comparison (unaudited) (NT$ Million) Q3 / 2020 % Q2 / 2020 % Q3 / 2019 % QoQ YoY Net Revenues: ATM 69,497 56.4% 67,314 62.6% 66,440 56.5% 3% 5% EMS 53,126 43.1% 39,703 36.9% 50,584 43.0% 34% 5% Others 572 0.5% 532 0.5% 533 0.5% 8% 7% Total Ne
Slide 4: ATM Statements of Comprehensive Income
ATM Statements of Comprehensive Income Quarterly Comparison (unaudited) (NT$ Million) Q3 / 2020 % Q2 / 2020 % Q3 / 2019 % QoQ YoY Net Revenues: Packaging 58,417 81.3% 55,732 80.2% 55,163 81.2% 5% 6% Testing 12,351 17.2% 12,693 18.3% 11,495 16.9% -3% 7% Direct Material 1,020 1.4% 1,051 1.5% 1,211 1.8
Slide 5: ATM Operations
ATM Operations (unaudited) NT$ Million 80,000 30% 69,516 71,820 67,901 69,287 66,209 59,594 14,540 60,000 54,371 14,708 15,697 15,082 13,334 11,100 22.7% 20% 8,438 21.7% 21.7% 20.1% 20.2% 18.6% 40,000 15.5% 10% 20,000 0 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Revenue Gross Profit Gross Margin 5
Slide 6: ATM Revenue by Application
ATM Revenue by Application (unaudited) 100% 34% 35% 33% 30% 31% 32% 33% 80% 60% 13% 14% 16% 15% 14% 14% 14% 40% 53% 51% 53% 54% 54% 54% 53% 20% 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Communication Computer Automotive, Consumer & Others 6
Slide 7: ATM Revenue by Type
ATM Revenue by Type (unaudited) 100% 2% 2% 2% 2% 2% 2% 1% 16% 17% 17% 17% 17% 18% 17% 80% 8% 8% Material 8% 9% 7% 7% 7% Testing 60% 40% 39% 37% 36% 36% 35% 37% Discrete and Other Wirebonding 40% Bump/FC/WLP /SiP 20% 38% 38% 38% 37% 34% 34% 35% 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 7
Slide 8: EMS Operations
EMS Operations Quarterly Comparison & Revenue By Application (unaudited) (NT$ Million) Q3 / 2020 % Q2 / 2020 % Q3 / 2019 % QoQ YoY EMS Net Revenues 53,137 100.0% 39,709 100.0% 50,599 100.0% 34% 5% Gross Profit 5,147 9.7% 3,730 9.4% 4,494 8.9% 38% 15% Operating Income (Loss) 2,326 4.4% 1,242 3.1% 2,0
Slide 9: Key Balance Sheet Items & Indices
Key Balance Sheet Items & Indices (unaudited) (NT$ Million) Sept. 30, 2020 Jun. 30, 2020 Cash and cash equivalent 55,814 58,223 Financial assets - current 5,993 5,483 Financial assets - non current & investments - equity method 14,279 12,950 Property, plant & equipment 230,938 238,757 Total assets 5
Slide 10: Equipment Capital Expenditure vs. EBITDA
Equipment Capital Expenditure vs. EBITDA (unaudited) US$ Million 788 800 738 751 681 635 582 600 537 495 444 436 457 410 415 400 239 200 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Capex EBITDA 10
Slide 11: Third Quarter 2020 Year-to-Date Business Recap
Third Quarter 2020 Year-to-Date Business Recap • Year to date Holding Company revenues grew 15% YoY in USD terms • Year to date ATM revenues grew 19% YoY in USD terms with GM improvement of 1.9 percentage points YoY or 4.2 percentage points excluding impacts from currency & EAR actions • Year to dat
Slide 12: Business Environment
Business Environment • Assembly capacities are tight, wirebond capacity extremely tight till at least Q2 2021 • Beneficial ASP environment in 2021 • Sectors look good: - 5G including WiFi 6 driving upgrade cycles across communication sector - Automotive sector shows strong recovery - Computing and c
Slide 13: Export Administration Regulations Impact
Export Administration Regulations Impact • EAR-affected ATM revenues were 20% in Q1 and Q2, down to 13% in Q3 and 0% in Q4 • Greater than 75% of the lost revenue/capacity has been back-filled by other customers • Remaining 25% to be back-filled by end Q1, 2021 • Year-over-year growth for 2021 expect
Slide 14: Profitability, Cash Flow, CAPEX
Profitability, Cash Flow, CAPEX • 2020 Holding Company operating expense ratio target on track • 2020 Holding Company operating margin target ahead • Moderating CAPEX in 2021 • Improved Cash Flow Outlook • Deleverage Balance Sheet • Increase Cash Dividend 14
Slide 15: Fourth Quarter 2020 Outlook
Fourth Quarter 2020 Outlook* Based on our current business outlook and exchange rate assumptions, management projects overall performance for the fourth quarter of 2020 to be as follows: • In NTD terms, ATM 4th quarter 2020 business should be similar with First half 2020 levels; • ATM 4th quarter 20
Slide 16: Thank You
Thank You w w w. a s e g l o b a l . c o m 16
Slide 17: Consolidated Statements of Comprehensive Income
Appendix 1 Consolidated Statements of Comprehensive Income (unaudited) (NT$ Thousands) Q1/2019 Q2/2019 Q3/2019 Q4/2019 FY/2019 Q1/2020 Q2/2020 Q3/2020 Revenues 88,861,446 90,740,910 117,557,307 116,022,521 413,182,184 97,357,155 107,548,773 123,195,399 COGS 77,476,565 76,771,842 98,449,014 96,173,97
ASE Technology Holding — Q3 2020 Earnings Presentation on 6ix