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Nanya Technology Corporation — Interim / Quarterly Report 2018
Aug 13, 2018
52061_rns_2018-08-13_40c97f2e-9dea-4fd8-9b41-1c3d50034779.pdf
Interim / Quarterly Report
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Nanya Technology Q2’ 2018 Financial Summary
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NTC Proprietary
Level: Property
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Safe Harbor
The information herein and the presentation made during the conference contain forward-looking statements and are provided for information purposes only. Neither Nanya Technology Corp. nor any other person assumes responsibility for the and of the statements or undertakes accuracy completeness forward-looking duty to update the statements. You are urged to review the information provided herein carefully, and please don’t distribute, reproduce or disclose the information in whole or in part without prior written permission of NANYA Technology Corp.
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| Q2’18 Financial Results Summary | Q2’18 Financial Results Summary | Q2’18 Financial Results Summary | Q2’18 Financial Results Summary | Q2'17 YoY Audited 12,626 100% 94.8% 5,544 43.9% 144.2% 4,167 33.0% 176.2% 6,098 48.3% 137.7% 3,835 30.4% -1,505 -11.9% 6,490 51.4% 74.3% 2.36 35.45 2,748 |
Q2'17 YoY Audited 12,626 100% 94.8% 5,544 43.9% 144.2% 4,167 33.0% 176.2% 6,098 48.3% 137.7% 3,835 30.4% -1,505 -11.9% 6,490 51.4% 74.3% 2.36 35.45 2,748 |
|---|---|---|---|---|---|
| Amount in Million NT$, except for EPS & BVPS |
Q2'18 | Q1'18 | QoQ | Q2'17 | YoY |
| Audited | Audited | Audited | |||
| Net Sales | 24,592 100% |
18,797 100% |
30.8% | 12,626 100% |
94.8% |
| Gross Profit (Loss)Gross Margin(%) | 13,537 55.0% |
9,741 51.8% |
39.0% | 5,544 43.9% |
144.2% |
| Operating Income (Loss) Operating Margin(%) |
11,510 46.8% |
8,319 44.3% |
38.4% | 4,167 33.0% |
176.2% |
| EBITDA* EBITDA Margin (%) | 14,495 58.9% |
11,237 59.8% |
29.0% | 6,098 48.3% |
137.7% |
| Non-operating Income (Expense) | 1,990 8.1% |
-1,092 -5.8% |
3,835 30.4% |
||
| Income Tax Benefit (Expense) | -2,190 -8.9% |
-1 0.0% |
-1,505 -11.9% |
||
| Net Income (Loss)Net Margin (%) | 11,310 46.0% |
7,227 38.4% |
56.5% | 6,490 51.4% |
74.3% |
| Earnings Per Share (NT$) | 3.68** | 2.39 | 2.36 | ||
| Book Value Per Share (NT$) | 47.37*** | 48.13 | 35.45 | ||
| Shares Outstanding(million shares) | 3,101 | 3,060 | 2,748 |
Note: * EBITDA = Operating income + Depreciation & Amortization Expenses
** EPS is based on weighted average outstanding shares of 3,075M
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*** BVPS is calculated based on 3,101M outstanding shares after deduction of NT$ 3.5 cash dividend payable
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Q2’18 Revenue of NT$ 24,592 million(M), (+30.8% QoQ)
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Gross Margin 55.0%; Operating Margin 46.8%
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Q2’18 Net Income of NT$ 11,310M, Net Margin 46.0%, EPS NT$ 3.68, BVPS NT$ 47.37 (Cash dividend of NT$ 3.5/share, deducted)
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1H’18 Revenue of NT$ 43,390M (+74.6% vs. 1H’17), Net Income of NT$ 18,537M, EPS NT$ 6.07
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Quarterly Financial Highlights
55.0%
52%
50%
49% 24,592
48%
47%
46.8%
44% 44% 44% 44%
42% 42% 42%
40% 40% 40%
39%
37%
18,797
36%
34% 34%
33%
33% 31% 31% 32% 32%
30%
15,000 28% 28% 30%
25%
21% 11,304
18% 18%
17%
7,227
0 0%
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18
Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%) Operating Margin(%)
Revenue, Net Income (Million NT$)
Gross Margin, Operating Margin (%)
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Quarterly Financial Highlights
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Cash Flows
Q2'18 Q1'18 Audited & Audited & Consolidated Consolidated Unit: Million NT$ Beginning Balance 50,197 33,769 Cash from Operating 11,778 7,943 Activities Capital expenditures -2,780 -1,941 Investments and 2,342 10,425 others Ending Balance 61,537 50,197 Free Cash Flow[(1)] 8,998 6,003*
1H'18 Cash Flow
Capital Expenditures 12,767 -4,720 Investments 19,721 and others 61,537 Cash from Operating Activities 33,769
2018/1/1 2018/6/30 Beginning Ending Balance Balance
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(1) Free Cash Flow = Cash from operating activities – Capital expenditures
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ESOP execution NT$1.4 billion, FX positive impact NT$ 698 million
1H’18 Free Cash Flow NT$15,001 Million
** Net proceeds received NT$10.6 billion in Q1’18 (Micron shares disposal in Q4’17)
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CAPEX & Bit Shipment
~48%
NT$ Billion
29.4
23.9
22.3
20%
16%
Flat
Q2 -8.6%
Q1
2016 2017 2018(E) 2014 2015 2016 2017 2018(E)
CAPEX Bit Shipment (YoY)
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CAPEX & Bit Shipment
- Q2’18 CAPEX NT$ 2.78Billion (B)
Capital
Expenditure
(CAPEX)
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Estimated 2018 CAPEX of NT$ 23.9B
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20nm equipment payment deferred
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10nm Class technology development
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New CAPEX NT$ 15.94B estimated to be expended in 2018 out of total NT$19.71B
Bit Shipment
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Mid-single digits% increase expected in Q3’18
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Target 2018 to reach 48% bit shipment growth, 2019 bit growth target to reach mid teens %
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DRAM Market outlook – Q3’18
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Supply Q3’18 moderate supply growth expected
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2H’18 the demand in each segments remains favorable
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Mobile Market : the new flagship smartphones with emerging applications, high resolution, 3D sensing, artificial intelligence (AI), and augmented reality will continue to stimulate Mobile DRAM demand. High-end gaming phones start to equip 8GB Mobile DRAM
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Server Market: Hyper scale data centers continue to out grow market average demand.
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Demand Telecom operators prepare for 5G services. Estimated 258GB DRAM as average content per server
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Consumer Market
：Major drivers of consumer applications: TV, set-top box, SSD, Networking products (PON), smart speakers. IPTV's 4K penetration rate exceeds 50%, SSD built-in DRAM demand continues to grow, PON DRAM content forecasts to grow by about 40% yoy
Global
- Global Tariffs war, IP infringement and Antitrust accusation, have not impacted memory business in Watch the near term. However, caution needed for potential out-of-control situation
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Nanya Business Outlook
- 2H’18 DRAM Demand-Supply remain stable
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- Nanya Tech acquired 84,022 thousand shares of Formosa Advanced Technology,
approximately 19% of FATC issued shares
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CAPEX budget NT$19.71 billion mainly for mid-teens % bit growth in 2019
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Nanya Technology Operation Focuses:
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Plan to deliver LPDDR4/4X products in Q4’18
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Monthly output to increase to 73,000 WPM in year 2019, from current 65,000 WPM, with the output of 20nm increasing to 47,000 WPM from current 35,000 WPM
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10nm class technology development underway
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Thanks & Questions
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