may, 2019 q1 2019 earnings report · may, 2019 q1 2019 earnings report strictly confidential...
TRANSCRIPT
May, 2019
Q1 2019 Earnings Report
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Disclaimer
This presentation has been prepared by GlobalWafers Co., Ltd. (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase securities in a proposed offering should be made solely on the basis of the information contained in the offering circular published in relation to such proposed offering, if any.
The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
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1. 2019Q1 – Flat revenue (QoQ), Positive development in various record-breaking
aspects (GM, EBITDA, OP income, Net income & EPS, Cash, Prepayment …)
2. Utilization & LTA (Q2)
High utilization for 200mm/300mm
No LTA breaches
Cooperate with customers via flexible shipment adjustment and product
portfolio swap
3. Industry Outlook
Q2 – Market is stabilizing and calibrating
Less price erosion compared to previous quarters
Anticipate more recovery from 2H19 via various end applications
China-US Trade tensions: unexpected uncertainties arose. Closely monitoring
the changes now
4. End Market
IoT, Automotive, Big Data, Power management - future driving force
5G and AI will bring out new applications and stimulate demand*1
Smartphone – high content growth and technological breakthrough
Executive Comments
3
Note: 1.The White House’s “American AI Initiative” & “National Spectrum Strategy” announcements to focus on AI & 5G in February 2019
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1. Revenue
2nd high in GWC history with 12% YoY growth
2. Gross Margin, Net Profit, EBITDA and EPS
Record-breaking
3. Loan
Reduce 85% of bank loan in 2 years
4. Cash
Net Cash Position - Possess NTD 38,987 mn (USD 1,264 mn)*1
Free Cash Flow*2 - Generate NTD 5,058 mn (USD 164 mn)*1 from operation,
representing 32% of revenue
5. Prepayment
NTD 22,729 mn (USD 737mn )*1
4
2019Q1 Financial Highlights
4
Note: 1. FX Rate: NTD:USD = 30.82 2. Free cash flow : Cash flow from operating activities – Capex
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Financial Highlight : 2019Q1 vs. 2018Q1
5
1.EBITDA= Net Profit + Tax + Interests + Depreciation + Amortization. 2.ROE = Net Profit / Average Shareholders Equity 3.ROA = (Net Profit + Interest*(1- Effective Tax Rate))/Average Asset
(NT$mn) 2019Q1 2018Q1 YoY
Revenue 15,591 13,910 12%
EBITDA*1 6,364 4,902 30%
EBITDA % 41% 35% 6%
EBIT 5,240 3,717 41%
Operating Profit 5,200 3,923 33%
Operating Profit % 34% 28% 5%
Net Profit 3,857 2,779 39%
Net Profit % 25% 20% 5%
EPS NT$8.88 NT$6.36 NT$2.52
ROE*2 (annualized) 34% 31% 3%
ROA*3(annualized) 17% 15% 2%
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Financial Highlight : 2019Q1 vs. 2018Q4
6
1.EBITDA= Net Profit + Tax + Interests + Depreciation + Amortization. 2.ROE = Net Profit / Average Shareholders Equity 3.ROA = (Net Profit + Interest*(1- Effective Tax Rate))/Average Asset
(NT$mn) 2019Q1 2018Q4 QoQ
Revenue 15,591 15,624 0%
EBITDA*1 6,364 6,034 5%
EBITDA % 41% 39% 2%
EBIT 5,240 4,809 9%
Operating Profit 5,200 4,801 8%
Operating Profit % 34% 31% 3%
Net Profit 3,857 3,721 4%
Net Profit % 25% 24% 1%
EPS NT$8.88 NT$8.51 NT$0.37
ROE*2 (annualized) 34% 35% -1%
ROA*3(annualized) 17% 17% 0%
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3,647 3,903 4,266
6,611
10,581 11,205
11,978 12,448
13,910 14,368
15,162 15,624 15,591
23.0%
26.9%
24.4%
18.2%
20.0%
24.6% 26.3%
30.4%
36.2%
37.0%
39.0% 38.5% 41.0%
Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119
Revenue GM % (NT$mn)
7
Revenue – Keep Strong Stance
7
GWC reaches its second record high in Q119 revenue, maintaining strong stance as 2018
Record-breaking GM% underlines GWC’s profitability and cost-sensitive management
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6.14 6.60 5.80
2.54
12.68
31.18
8.88
2013 2014 2015 2016 2017 2018 Q119
All-time high EBITDA accounts for 41% of revenue
EPS amounts to NTD 8.88, best ever in GWC history EBITDA EPS
(NT$mn) (NT$)
4,053 4,087 4,046 3,025
12,221
22,712
6,364
26.0% 25.7% 26.4%
16.4%
26.4%
38.5%
40.8%
2013 2014 2015 2016 2017 2018 Q119
EBITDA EBITDA to Revenue
8
EBITDA & EPS
8
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Cash Structure and Bank Loan
9
7,647
14,170
22,522 22,729
11,147
12,658
12,692 16,258 27,349
13,439 14,401
8,412 5,472 4,321 5,628 6,620
18,794
26,828
35,214
38,987
2017.B 20171H 2017.E 20181H 2018.E Q119
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000 Bank Loan Other Cash Prepayment
(NT$mn)
Financial Leverage Net cash position achieves 6 times compared to 2017, growing 11% in 3 months (Q119 vs. Q418)
Significant capacity is booked by price-protected LTA with cash prepayment
Reduce bank loan by 85% in 2 years
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Dividend Payout since 2012 versus EPS
Lucrative EPS in conjunction with high dividend payout policy brings out profitable earnings for
shareholders
6.14 6.60 5.80
2.54
12.68
31.18
5.50 5.70 5.00
2.50
10.00
25.00
2013 2014 2015 2016 2017 2018
EPS Dividend
Dividend Payout Ratio
89.6% 86.4% 86.2% 98.4% 78.9% 80.2%*
(NT$)
Dividend Payout
10
* 2018 dividend payout is subject to AGM approval on June 25, 2019
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Income Statement
11
Note: Upon completion of GWC’s acquisition of SunEdison Semiconductor (“SEMI”) in 2016, FY2016 financials has included earnings from SEMI from the period of 02 Dec 2016 – 31 Dec 2016.
Income Statement
(NT$mn) 2013 2014 2015 2016 2017 2018 2019Q1
Revenue 15,570 15,922 15,310 18,427 46,213 59,064 15,591
Growth (%) - 2.3% -3.8% 20.4% 150.8% 27.8% -
Gross Profit 3,663 3,728 4,073 4,130 11,808 22,299 6,393
Gross Profit Margin (%) 23.5% 23.4% 26.6% 22.4% 25.6% 37.8% 41.0%
EBITDA 4,053 4,087 4,046 3,025 12,221 22,712 6,364
EBITDA Margin (%) 26.0% 25.7% 26.4% 16.4% 26.4% 38.5% 40.8%
Operating Profit 2,194 2,336 2,685 1,378 7,414 17,578 5,200
Operating Profit Margin (%) 14.1% 14.7% 17.5% 7.5% 16.0% 29.8% 33.4%
Profit before Tax 2,204 2,679 2,808 1,344 6,875 18,253 5,407
Profit before Tax Margin (%) 14.2% 16.8% 18.3% 7.3% 14.9% 30.9% 34.7%
Net Profit 1,948 2,095 2,044 939 5,278 13,634 3,857
Net Profit Margin (%) 12.5% 13.2% 13.4% 5.1% 11.4% 23.1% 24.7%
EPS (NT$) 6.14 6.60 5.80 2.54 12.68 31.18 8.88
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Balance Sheet
12
Note: 1.Upon completion of GWC’s acquisition of SunEdison Semiconductor (“SEMI”) in 2016, FY2016 financials has included earnings from SEMI from the period of 02 Dec 2016 – 31 Dec 2016. 2.Account receivables include account receivables from related parties. 3.Account payables include account payables from related parties.
Balance Sheet
(NT$mn) 2013 2014 2015 2016 2017 2018 2019Q1
Assets
Cash and cash equivalents 1,536 2,685 3,662 5,628 18,794 35,214 38,987
Account receivable 3,165 3,694 4,538 7,642 7,869 9,226 9,664
Inventories 3,291 2,829 3,262 7,307 7,347 7,040 7,131
Property, plant and equipment 9,796 8,972 9,361 31,036 28,202 30,887 30,717
Other assets 3,286 3,204 2,994 8,948 8,020 7,455 8,396
Total assets 21,074 21,385 23,816 60,560 70,232 89,822 94,895
Liabilities
Short-term loan 1,302 2,069 696 12,982 10,738 5,042 4,321
Account payable 1,816 1,789 1,383 5,126 4,269 4,870 5,108
Long term loan - - - 14,367 3,663 430 -
Other liabilities 4,821 4,325 5,012 12,267 17,508 36,324 38,505
Total liabilities 7,939 8,184 7,091 44,742 36,178 46,666 47,934
Shareholder equity 13,135 13,201 16,725 15,819 34,054 43,156 46,961
Q&A
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Thank You
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