Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q1 2019 Earnings Presentation

18 slides from Wt Microelectronics's earnings presentation, May 8, 2019

  1. Slide 1: 2019 First Quarter Investor Conference

    2019 First Quarter Investor Conference Presented by Cheryl Yang May 8, 2019

  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. Financial Update 3. Business Outlook 4. Recap of Recent Major Events 5. Questions and Answers 3

  4. Slide 4: 1. Overview

    1. Overview Strong secular growth with economies of scale  A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT)  Strategic focus on Asia region and Automotive & Internet of Things (IoT) applications  2018 revenues of NT$273bn, up 44% YoY  48 offices in

  5. Slide 5: 1. Overview: Offices across Asia

    1. Overview China Offices (33) Harbin Korea Offices (2) Shenyang Dalian Beijing Offices Across Asia Seoul Tianjin Qingdao Taiwan Offices (4) Yantai Zhengzhou Taipei, Headquarters Jinan Xian Hsinchu Ningbo Taichung Shanghai Wuxi Tainan Suzhou Kunshan South Asia Offices (9) Nanjing Hangzhou New Delhi,

  6. Slide 6: 1. Overview: Net Revenue

    1. Overview NR (Net Revenue) YoY=44% NT$B 300 273 YoY=31% 250 YoY=27% 200 189 CAGR(2011~2015)=12% CAGR(2006~2010)=16% 144 150 108 114 100 88 80 71 64 41 47 50 34 39 30 21 9 10 14 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6

  7. Slide 7: Statement of Comprehensive Income

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 1Q19 1Q19 4Q18 1Q18 Key accounts QoQ YoY Amount % Guidance Amount % Amount % Net Operating revenues 67,474 100.00% 65B~70B 85,762 100.00% -21% 49,635 100.00% 36% Gross profit 2,322 3.44% 3.3%~3.5% 2,701 3.15% -14% 2,288 4.61% 1% Operat

  8. Slide 8: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 1Q19 4Q18 1Q18 Key accounts Amount % Amount % Amount % Cash and cash equivalents 2,360 3 3,335 4 2,542 3 Accounts receivable 34,692 38 36,127 39 31,765 41 Inventory 47,034 51 46,875 50 35,426 46 Other current assets 2,108 2 2,547 2 2,929 4 Non-current ass

  9. Slide 9: NR by Geography (Ship-to Destination)

    2. Financial Update NR by Geography (Ship-to Destination) 0.5% 0.6% 0.5% 0.7% 0.5% 0.3% 0.3% 0.4% 90 QoQ -24% 100% 2.2% 2.0% 1.8% 2.6% 1.9% 1.9% 2.5% 80 4Q18 3.4% 3.0% 5.7% 3.5% 4.5% 5.9% 70 (Left) Revenue (NT$B) 8.1% 8.5% 6.1% 5.5% 4.2% 6.0% 5.4% vs. 8.1% 7.9% 60 8.5% 7.1% 1Q19 80% 50 (Right) 40 30

  10. Slide 10: NR by Customer Base

    2. Financial Update NR by Customer Base 100% 1.7% 1.7% 70 QoQ -31% 2.2% 2.0% 2.8% 3.3% 1.9% 2.1% 4Q18 6.4% 3.4% 3.9% 4.7% 8.6% 8.8% 6.3% 6.6% 60 (Left) vs. Revenue (NT$B) 50 22.4% 1Q19 80% 26.5% 30.4% 40 (Right) 34.1% 34.7% QoQ +7% 36.5% 36.6% 30 38.5% 20 60% QoQ -5% 10 QoQ -3% 0 Taiwan China Korea

  11. Slide 11: NR by Application

    2. Financial Update NR by Application 50 QoQ -33% 100% 2.5% 2.4% 2.5% 4Q18 4.0% 4.2% 3.4% 3.9% 4.3% 5.3% 5.4% 5.3% (Left) 40 Revenue (NT$B) 7.8% 6.6% 6.4% 7.3% 7.5% vs. 9.2% 7.3% 8.4% 30 1Q19 11.4% 14.9% 13.8% 13.5% 14.0% (Right) 80% QoQ 0% 13.7% 15.2% 20 QoQ -13% 15.9% 17.2% QoQ -9% 10 QoQ -23% 16.

  12. Slide 12: ROE vs. EPS

    2. Financial Update ROE vs. EPS 2.00 18.8% EPS ROE% 19.2% 20% 15.3% 1.50 13.4% 15% 12.4% 11.6% 11.0% 1.00 10% 6.8% 0.50 5% 1.15 1.61 1.44 1.05 1.12 1.79 1.06 0.67 0.00 0% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 12

  13. Slide 13: ROWC vs. NWC/Sales

    2. Financial Update ROWC vs. NWC/Sales 0.30 25% NWC/Sales 0.25 20% ROWC 0.20 16.1% 15% 11.7% 12.0% 0.15 10.6% 11.4% 9.3% 9.8% 8.2% 10% 0.10 5% 0.05 0.19 0.18 0.17 0.23 0.24 0.12 0.13 0.18 0.00 0% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 13

  14. Slide 14: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 90 83 80 68 65 61 60 60 49 46 30 0 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 14

  15. Slide 15: 3. Business Outlook

    3. Business Outlook We currently expect 2Q19 :  Revenue : between NT$71 billion ~ NT$75 billion, at a forecast exchange rate of 30.9 NT Dollars to 1 US Dollar  Revenue guidance between 5% ~ 11% QoQ growth and 33% ~ 41% YoY increase  Gross profit margin : between 3.45% ~ 3.65%  Operating profit m

  16. Slide 16: 4. Recap of Recent Major Events

    4. Recap of Recent Major Events  WT was ranked as Best Partner from NXP Semiconductors in 2018.  WT was ranked as Outstanding Supplier Business Management from ST Microelectronics in 2018.  WT board of directors approved the convening of the 2019 annual shareholders’ meeting on June 21, 2019. 16

  17. Slide 17: Questions and Answers

    nswers

  18. Slide 18: Thank You !

    Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 18

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