Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q1 2023 Earnings Presentation

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

  1. Slide 1: 2023 First Quarter Investor Conference

    2023 First Quarter Investor Conference May 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. Financial Update 3. Business Outlook 4. 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: 1Q23 Statement of Comprehensive Income

    2. Financial Update 1Q23 Statement of Comprehensive Income Unit: NT$M 1Q23 4Q22 1Q22 Key accounts QoQ YoY Amount Amount Amount Net Operating revenues 120,103 157,464 -24% 127,943 -6% Gross profit 4,143 4,989 -17% 4,867 -15% Gross margin 3.45% 3.17% 3.80% Operating expenses (2,160) (2,361) -9% (1,852

  6. Slide 6: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 1Q23 4Q22 1Q22 Key accounts Amount % Amount % Amount % Cash and cash equivalents 5,817 3 5,383 3 5,165 3 Accounts receivable 68,423 36 84,568 42 77,042 42 Inventory 90,830 48 90,547 45 71,837 39 Other current assets 2,597 2 3,152 2 2,980 2 Non-current ass

  7. Slide 7: Revenue, Operating Profit, OPEX and EPS Trends

    2. Financial Update Unit: NT$M Revenue vs GPM OP vs OPM Revenue GPM OP OPM 180,000 4.12% 4.5% 3,500 2.63% 3.0% 3.87% 3.86% 2.45% 160,000 3.65% 3.80% 4.0% 3,000 2.36% 2.47% 3.45% 2.28% 2.5% 140,000 3.19% 3.17% 3.5% 2,500 1.88% 120,000 1.67% 1.65% 2.0% 3.0% 100,000 2,000 2.5% 1.5% 80,000 155,669 157,4

  8. Slide 8: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 80 72 70 59 60 60 60 53 52 51 50 50 40 71 30 58 58 54 54 57 57 55 54 57 57 53 50 53 52 51 53 51 53 51 48 49 48 49 20 10 0 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 8

  9. Slide 9: ROWC vs. NWC/Sales

    2. Financial Update ROWC vs. NWC/Sales NWC/Sales ROWC 0.25 0.20 17.1% 17.1% 16.3% 16.2% 0.15 13.7% 11.0% 10.8% 0.10 8.6% 0.05 0.00 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 9

  10. Slide 10: ROE vs. Equity

    2. Financial Update ROE vs. Equity Unit: NT$M Equity attributable to owners of the parent ROE 70,000 19.0% 20% 16.9% 18% 60,000 16.3% 15.9% 15.7% 16% 14.9% 50,000 14% 12% 40,000 10% 8.4% 30,000 59,108 57,960 55,875 8% 53,768 54,500 54,105 47,246 49,685 5.1% 20,000 6% 4% 10,000 2% - 0% 2Q21 3Q21 4Q21

  11. Slide 11: Cash Dividend vs. Cash Dividend Yield

    2. Financial Update Cash Dividend vs. Cash Dividend Yield Unit: NT$ Cash dividend per share Cash dividend yield 7 8% 7.0% 6.7% 6.5% 7% 6 6.5% 6.0% 6.4% 5.9% 6.0% 5.5% 5.5% 5.01 6% 5 5.2% 5.2% 5.0% 4.30 5% 4 3.20 4% 3.00 2.90 3 2.70 2.80 2.50 2.40 2.50 2.35 3% 2.10 2.09 2 2% 1 1% 0 0% 2011 2012 2013

  12. Slide 12: 3. Business Outlook: 2Q23 Guidance

    3. Business Outlook We currently expect 2Q23 :  At a forecast exchange rate of 30.6 NT Dollars to 1 US Dollar Unit: NT$M 2Q23 1Q23 Item Forecast Amount Revenue 102,000 ~ 110,000 120,103 Gross Profit 3,876 ~ 4,400 4,143 Gross Margin 3.80% ~ 4.00% 3.45% Operating Expenses 2,037 ~ 2,205 2,160 Operatin

  13. Slide 13: WT Market Share in APAC Semiconductor Distribution Market

    3. Business Outlook WT Market Share in APAC Semiconductor Distribution Market 15% 12.0% 12% 10.7% 10.5% 9.2% 8.6% 9% 6.6% 6.0% 6% 3% 0% 2016 2017 2018 2019 2020 2021 2022 13 Source：Gartner, 2023/03

  14. Slide 14: WT Revenue Trend and World Semi Revenue Forecast

    3. 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

    3. Business Outlook Global Semiconductor Market Forecast by Electronic Equipment Category (US$ Billion) Semiconductor Market 733 2022-26F semiconductor segment 110 revenue CAGR (vs. 3 months ago) 600 68 101 Automotive: +12.9% (+14.0%) 74 53 46 107 73 Industrial: +8.3% (+8.1%) 67 73 Communication:

  16. Slide 16: 1Q23 Revenue Breakdown by Application

    3. Business Outlook 1Q23 Revenue Breakdown by Application QoQ – 4Q22 (Left) vs. 1Q23 (Right) -36% 60 100% Revenue (NT$B) 6.1% 7.3% 7.8% 50 40 11.6% 10.8% 30 -29% +2% 13.2% -7% -24% -25% 80% 20 -19% 51% Star 10 17.1% 14.7% 13.6% 0 Application 60% 12.5% 12.2% 16.7% 8.3% 9.0% 8.3% 40% 10.6% 19% 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 — Q1 2023 Earnings Presentation on 6ix