Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q2 2019 Earnings Presentation

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

  1. Slide 1: 2019 Second Quarter Investor Conference

    2019 Second Quarter Investor Conference Presented by Cheryl Yang Aug 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. Questions and Answers 3

  4. Slide 4: Overview: Strong secular growth with economies of scale

    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: 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: Overview: Net Revenue 2000-2018

    1. Overview NR (Net Revenue) CAGR(2016~2018)=34% NT$B 300 273 250 200 189 144 150 108 114 100 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 (2Q19)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 2Q19 2Q19 1Q19 2Q18 Key accounts QoQ YoY Amount % Guidance Amount % Amount % Net Operating revenues 74,748 100.00% 71B~75B 67,474 100.00% 11% 53,248 100.00% 40% Gross profit 2,688 3.60% 3.45%~3.65% 2,322 3.44% 16% 2,560 4.81% 5% Operat

  8. Slide 8: Statement of Comprehensive Income (1H19)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 1H19 2H18 1H18 Key accounts HoH YoY Amount % Amount % Amount % Net Operating revenues 142,222 100.00% 170,533 100.00% -17% 102,883 100.00% 38% Gross profit 5,009 3.52% 5,797 3.40% -14% 4,848 4.71% 3% Operating expenses (2,663) -1.86% (

  9. Slide 9: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 2Q19 1Q19 2Q18 Key accounts Amount % Amount % Amount % Cash and cash equivalents 5,018 5 2,360 3 2,283 3 Accounts receivable 37,211 40 34,692 38 35,865 43 Inventory 44,285 47 47,034 51 38,500 46 Other current assets 2,317 2 2,108 2 2,321 2 Non-current ass

  10. Slide 10: NR by Geography (Ship-to Destination)

    2. Financial Update NR by Geography (Ship-to Destination) 70 QoQ +12% 0.6% 0.5% 0.7% 0.5% 0.3% 0.3% 0.4% 0.4% 100% 2.0% 1.8% 2.6% 1.9% 1.9% 2.5% 2.3% 1Q19 3.4% 3.0% 3.5% 3.6% 60 5.7% 5.9% 4.5% (Left) Revenue (NT$B) 8.5% 6.1% 5.5% 4.2% 5.4% 5.8% 50 vs. 6.0% 7.1% 8.1% 7.9% 2Q19 40 (Right) 80% 30 20 Qo

  11. Slide 11: NR by Customer Base

    2. Financial Update NR by Customer Base 100% 1.7% 1.7% 50 QoQ +8% 2.0% 2.8% 3.3% 1.9% 2.1% 2.0% 1Q19 6.4% 3.4% 3.9% 4.7% 4.2% 8.8% 6.3% 6.6% (Left) 40 vs. Revenue (NT$B) 22.4% 2Q19 80% 26.5% 30 QoQ +18% (Right) 30.4% 32.3% 34.1% 34.7% 36.6% 20 38.5% 60% 10 QoQ -1% QoQ +6% 0 Taiwan China Korea ASEAN

  12. Slide 12: NR by Application

    2. Financial Update NR by Application 40 1Q19 100% 4.2% 3.4% 3.9% 2.5% 2.4% 2.5% 3.4% 4.3% QoQ +3% (Left) 5.3% 5.4% 5.3% 5.6% Revenue (NT$B) 6.6% 6.4% 7.3% 7.5% 30 vs. 9.2% 7.3% 8.4% 10.5% 2Q19 11.4% QoQ +9% 13.8% 13.5% 14.0% 20 (Right) 80% 13.7% 15.9% 15.2% QoQ +13% 17.2% 15.5% 10 QoQ +38% QoQ +17%

  13. Slide 13: ROE vs. EPS

    2. Financial Update ROE vs. EPS 2.00 18.8% 19.2% 20% EPS 15.3% ROE% 1.50 15% 12.4% 11.6% 10.8% 11.0% 1.00 10% 6.8% 0.50 5% 1.61 1.44 1.05 1.12 1.79 1.06 0.67 1.06 0.00 0% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 13

  14. Slide 14: ROWC vs. NWC/Sales

    2. Financial Update ROWC vs. NWC/Sales 0.30 25% NWC/Sales 0.25 20% ROWC 16.1% 0.20 15% 12.0% 0.15 10.6% 11.4% 10.6% 9.3% 9.8% 10% 0.10 8.2% 5% 0.05 0.18 0.17 0.23 0.24 0.12 0.13 0.18 0.17 0.00 0% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 14

  15. Slide 15: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 90 83 80 65 62 61 60 60 49 46 30 0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 15

  16. Slide 16: Business Outlook

    3. Business Outlook We currently expect 3Q19 :  Revenue : between NT$87 billion ~ NT$93 billion, at a forecast exchange rate of 31.3 NT Dollars to 1 US Dollar  Revenue guidance between 16% ~ 24% QoQ growth and 3% ~ 10% YoY increase  Gross profit margin : between 3.1% ~ 3.3%  Operating profit mar

  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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