Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q2 2023 Earnings Presentation

18 slides from Wt Microelectronics's earnings presentation, Aug 4, 2023

  1. Slide 1: 2023 Second Quarter Investor Conference

    2023 Second Quarter Investor Conference August 4, 2023

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement  WT’s forward-looking statements, which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WT’s current expectations.  Actual results may differ materially

  3. Slide 3: Agenda

    Agenda 1. Overview 2. ESG Performance 3. Financial Update 4. Business Outlook 5. Questions and Answers 3

  4. Slide 4: 1. Overview

    1. Overview A leading Asian semiconductor distributor (72% of global market) NT$571B 10K+ 80+ • Founded in 1993 • Y2022 NR 28% Headquartered in TWN Customers Product Lines YoY • Listed in 2000 (ticker: 3036 TT) • Top 5% Governance ranking for three consecutive years (TWSE) • Taiwan High Salary 100 I

  5. Slide 5: 2. ESG Performance

    2. ESG Performance  Environment  Green Logistics – Introduced advanced electronic system to reduce Green Design – Promoting low energy loss and shipment trips by 64.91% in Y22 highly efficient semiconductor components  Green Procurement – 5% increase to NT$15.66 million in Y22  Carbon Reduction

  6. Slide 6: 2Q23 Statement of Comprehensive Income

    3. Financial Update 2Q23 Statement of Comprehensive Income Unit: NT$M 2Q23 1Q23 2Q22 Key accounts QoQ YoY Amount Amount Amount Net Operating revenues 117,460 120,103 -2% 130,121 -10% Gross profit 4,206 4,143 2% 5,017 -16% Gross margin 3.58% 3.45% 3.86% Operating expenses (2,165) (2,160) 0% (1,798) 2

  7. Slide 7: 1H23 Statement of Comprehensive Income

    3. Financial Update 1H23 Statement of Comprehensive Income Unit: NT$M 1H23 2H22 1H22 Key accounts HoH YoY Amount Amount Amount Net Operating revenues 237,563 313,133 -24% 258,064 -8% Gross profit 8,349 9,948 -16% 9,884 -16% Gross margin 3.51% 3.18% 3.83% Operating expenses (4,325) (4,400) -2% (3,649

  8. Slide 8: Balance Sheet

    3. Financial Update Balance Sheet Unit: NT$M 2Q23 1Q23 2Q22 Key accounts Amount % Amount % Amount % Cash and cash equivalents 6,127 3 5,817 3 6,136 3 Accounts receivable 67,872 35 68,423 36 84,388 43 Inventory 93,837 49 90,830 48 85,001 44 Other current assets 4,145 2 2,597 2 2,628 1 Non-current ass

  9. Slide 9: Revenue, margins, OPEX and EPS trends

    3. Financial Update Unit: NT$M Revenue vs GPM OP vs OPM Revenue GPM OP OPM 180,000 4.5% 3,500 3.0% 3.87% 3.80% 3.86% 2.45% 160,000 3.65% 3.58% 4.0% 3,000 2.28% 2.36% 2.47% 3.45% 2.5% 140,000 3.19% 3.17% 3.5% 2,500 1.88% 1.74% 120,000 1.67% 1.65% 2.0% 3.0% 100,000 2,000 2.5% 1.5% 80,000 155,669 157,4

  10. Slide 10: Operating Cash Cycle

    3. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 80 72 70 67 59 60 60 60 51 52 50 50 40 71 74 30 58 58 60 54 57 57 55 54 57 57 53 50 53 52 51 53 51 53 51 53 48 49 20 10 0 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 10

  11. Slide 11: ROWC vs. NWC/Sales

    3. Financial Update ROWC vs. NWC/Sales NWC/Sales ROWC 0.25 0.20 17.1% 16.3% 16.2% 0.15 13.7% 11.0% 10.8% 10.4% 0.10 8.6% 0.05 0.00 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 11

  12. Slide 12: ROE vs. Equity

    3. Financial Update ROE vs. Equity Unit: NT$M Equity attributable to owners of the parent ROE 60,000 20% 19.0% 18% 58,000 16.3% 15.9% 15.7% 14.9% 16% 56,000 14% 54,000 12% 59,108 52,000 10% 8.4% 56,508 57,960 8% 50,000 55,875 6.7% 54,500 54,105 5.1% 53,768 6% 48,000 4% 49,685 46,000 2% 44,000 0% 3Q2

  13. Slide 13: 4. Business Outlook: 3Q23 forecast

    4. Business Outlook We currently expect 3Q23 :  At a forecast exchange rate of 31.1 NT Dollars to 1 US Dollar Unit: NT$M 3Q23 2Q23 Item Forecast Amount Revenue 140,000 ~ 150,000 117,460 Gross Profit 4,480 ~ 5,100 4,206 Gross Margin 3.20% ~ 3.40% 3.58% Operating Expenses 2,172 ~ 2,322 2,165 Operatin

  14. Slide 14: 4. Business Outlook: WT Revenue Trend and World Semi Forecast

    4. Business Outlook WT continues gaining market share by targeting faster growth and higher margin sectors and successful M&As and integration WT Revenue Trend US$ Billion 2022: 20% YoY 25 19.17 20 15.99 15 11.95 10.84 9.07 10 6.22 4.47 5 0 2016 2017 2018 2019 2020 2021 2022 2023F 2024F 2025F 2026F

  15. Slide 15: Global Semiconductor Market Forecast by Electronic Equipment Category

    4. Business Outlook Global Semiconductor Market Forecast by Electronic Equipment Category (US$ Billion) Semiconductor Market 752 2022-27F semiconductor segment 121 revenue CAGR 600 68 108 Automotive: +12.3% 74 55 46 109 73 Industrial: +7.9% 67 73 Communication: +3.3% 133 152 140 135 Datacenter a

  16. Slide 16: 2Q23 Revenue Breakdown by Application

    4. Business Outlook 2Q23 Revenue Breakdown by Application QoQ – 1Q23 (Left) vs. 2Q23 (Right) 40 -15% 100% 35 Revenue (NT$B) 7.0% 7.8% 9.1% 30 25 +15% -23% 11.7% 13.2% 20 0% +12% 13.5% 15 +15% +20% 80% 10 52% Star 5 20.5% 13.6% 0 16.1% Application 60% 16.7% 14.8% 13.1% 8.2% 10.1% 40% 9.0% 22% Quality

  17. Slide 17: Q&A

    Q&A WT Microelectronics Website : www.wtmec.com The BEST Distribution Partner

  18. Slide 18: Thank You!

    Thank You! WT Microelectronics Website : www.wtmec.com The BEST Distribution Partner

WT Microelectronics — Q2 2023 Earnings Presentation on 6ix