Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q2 2021 Earnings Presentation

22 slides from Wt Microelectronics's earnings presentation, Aug 6, 2021

  1. Slide 1: 2021 Second Quarter Investor Conference

    2021 Second Quarter Investor Conference August 6, 2021

  2. Slide 2: Agenda

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

  3. Slide 3: 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

  4. Slide 4: Overview

    1. Overview  A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT), providing supply chain management such as capital flow, information flow, inventory, and technical support  Sophisticated frameworks in Asia (total 45 offices in China, Taiwan, Korea, and

  5. Slide 5: Overview: ESG Highlights

    1. Overview ESG Highlights  Environmental Sustainability  Greenhouse Gas (GHG) Emissions data certificated by thirty independent party during 2018-2020  Commit the goal for reducing 1% GHG emissions per year  Introduced Extended Warehouse Management (EWM) in 2014 and reduced 3,153 thousand paper

  6. Slide 6: World Semi Revenue Forecast

    1. Overview World Semi Revenue Forecast: Strong Growth Continues to Break 600B Milestone in 2022 Billions of Dollars and Revenue Growth CAGR (2021-25): 7.4% 700 6.6% 650 CAGR (2016-20): 6.8% 9.9% -3.5% 3.3% $667 600 22.4% $627 $626 $605 550 $571 500 12.9% 10.4% 450 21.9% $476 -11.3% $466 400 $422 $4

  7. Slide 7: Worldwide Non-Memory Semi Revenue Forecast

    1. Overview Worldwide Non-Memory Semi Revenue Forecast: Strong Growth Continues to Break 400B Milestone in 2021 Billions of Dollars and Revenue Growth CAGR (2021-25): 6.7% 3.5% 4.5% $472 450 3.2% 4.5% $456 18.5% $437 CAGR (2016-20): 6.0% $423 400 $405 350 9.3% 7.5% -0.2% $342 300 10.0% $313 $313 3.5

  8. Slide 8: Asia (ex-Japan) Semi Distribution Market Continues Outgrowing

    1. Overview Asia (ex-Japan) Semi Distribution Market Continues Outgrowing Global Semi & Semi Distribution Market Asia/Pacific Distribution Market Revenue and Share of Global Semi Distribution Market 120 CAGR (2016-20): 9.6% 72.9% 110 68.9% $112 69.7% 100 $105 67.5% $101 90 $94 80 64.7% 70 $75 60 50

  9. Slide 9: Net Revenue 2000-2020

    1. Overview NR (Net Revenue) CAGR(2016-20): 25% NT$B 400 353 350 335 300 273 250 200 189 144 150 108 114 100 80 88 64 71 39 41 47 50 30 34 14 21 5 9 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9

  10. Slide 10: WT Continues Expanding Market Share

    1. Overview WT Continues Expanding Market Share in Target Competitive Market WT’s Market Share of Top 10 Distributors, Asia/Pacific 20% 20.7% 19.8% 15% 17.0% 13.6% 10% 11.3% 5% 0% 2016 2017 2018 2019 2020 WT’s Market Share of Top 4 Distributors, Asia/Pacific 30% 25% 28.6% 27.1% 24.1% 20% 19.1% 15% 1

  11. Slide 11: Statement of Comprehensive Income (2Q21)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 2Q21 1Q21 2Q20 Key accounts QoQ YoY Amount % Amount % Amount % Net Operating revenues 102,096 100.00% 97,646 100.00% 5% 74,724 100.00% 37% Gross profit 4,203 4.12% 3,465 3.55% 21% 2,503 3.35% 68% Operating expenses (1,517) -1.49% (1,45

  12. Slide 12: Statement of Comprehensive Income (1H21)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 1H21 2H20 1H20 Key accounts HoH YoY Amount % Amount % Amount % Net Operating revenues 199,742 100.00% 200,952 100.00% -1% 152,200 100.00% 31% Gross profit 7,668 3.84% 5,791 2.88% 32% 4,983 3.27% 54% Operating expenses (2,967) -1.48% (2

  13. Slide 13: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 2Q21 1Q21 2Q20 Key accounts Amount % Amount % Amount % Cash and cash equivalents 5,062 4 5,297 4 5,050 4 Accounts receivable 61,920 44 58,936 44 43,322 38 Inventory 53,985 38 49,477 37 46,753 41 Other current assets 2,134 1 1,960 - 2,147 1 Non-current ass

  14. Slide 14: NR by Geography (Ship-to Destination)

    2. Financial Update NR by Geography (Ship-to Destination) 0.3% 0.6% 0.7% 1.0% 1.3% 1.5% 1.5% 1.5% 90 QoQ +2% 100% 3.0% 80 1Q21 3.3% 3.2% 6.6% 6.3% 6.2% 5.4% 2.9% 8.2% 70 (Left) Revenue (NT$B) 2.2% 9.9% 4.8% 5.6% 3.6% 2.8% 2.0% 4.6% 2.9% 60 vs. 8.0% 6.4% 2.7% 8.4% 6.9% 50 2Q21 7.6% (Right) 80% 40 30

  15. Slide 15: NR by Customer Base

    2. Financial Update NR by Customer Base 70 100.0% 2.0% 2.3% 3.0% 3.0% QoQ -3% 1Q21 4.7% 4.2% 4.5% 6.0% 3.8% 3.3% 2.4% 2.3% 60 (Left) 4.1% 3.1% 2.9% 3.4% vs. Revenue (NT$B) 50 2Q21 22.9% 80.0% 26.7% 26.7% 26.6% 40 QoQ +13% (Right) 27.8% 31.7% 31.8% 34.4% 30 20 60.0% 10 QoQ +23% QoQ +39% 0 Taiwan Chin

  16. Slide 16: NR by Application

    2. Financial Update NR by Application 40 1Q21 100.0% 3.1% 2.6% 3.1% 3.2% 3.0% 2.7% 2.5% 3.1% QoQ -11% 5.0% 5.1% (Left) 4.9% 5.3% 5.7% 5.3% 6.4% 6.4% Revenue (NT$B) 30 vs. 8.2% 7.4% 8.5% 7.9% 6.7% 6.5% 8.3% QoQ +7% 2Q21 9.9% 80.0% 10.4% 20 QoQ +13% (Right) 12.1% 13.0% QoQ +12% 14.1% 14.1% 13.6% 12.8%

  17. Slide 17: ROE vs. EPS

    2. Financial Update ROE vs. EPS EPS 3.00 20% ROE% 16.9% 2.50 14.2% 15% 13.0% 2.00 12.0% 12.3% 11.7% 10.7% 10.8% 1.50 10% 1.00 5% 0.50 1.38 1.21 1.04 1.07 1.46 1.57 1.92 2.54 0.00 0% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 17

  18. Slide 18: ROWC vs. NWC/Sales

    2. Financial Update ROWC vs. NWC/Sales NWC/Sales 0.25 20% ROWC 17.1% 0.20 14.0% 15% 13.5% 12.5% 12.1% 12.2% 0.15 10.1% 10% 0.10 8.1% 5% 0.05 0.12 0.12 0.18 0.16 0.13 0.12 0.15 0.15 0.00 0% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 18

  19. Slide 19: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle 90 AR INV AP Operating cash cycle 64 60 60 50 53 46 46 42 40 30 0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 19

  20. Slide 20: Business Outlook

    3. Business Outlook We currently expect 3Q21 :  Revenue : between NT$116 billion ~ NT$122 billion, at a forecast exchange rate of 27.9 NT Dollars to 1 US Dollar  Revenue guidance between 13.6% ~ 19.5% QoQ growth and 26.3% ~ 32.8% YoY growth  Gross profit margin : between 3.65% ~ 3.85%  Operating

  21. Slide 21: Questions and Answers

    nswers

  22. Slide 22: Thank You!

    Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 22

WT Microelectronics — Q2 2021 Earnings Presentation on 6ix