nanya technology 3q 2010 investor conference
TRANSCRIPT
October 12, 2015 © 2015 Nanya Technology Corp.
Nanya Technology
3Q’ 2015 Investor Conference
Presentation to Investors and Analysts 12 October 2015
Dr. Pei-Ing Lee , President & Spokesman
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01. Q3’15 Revenue & Results
02. Operations
03. Market Outlook
04. Business Outlook
Agenda
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01
Q3’15 REVENUE & RESULTS
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11,692 11,916
13,09112,409
12,028
11,15610,337
52% 51%
57%
69%
52.3%
38.1%
45.60%
Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Net operating revenues(Million NT$) Net Margin(%)
Financial Highlights
2014-2015 Quarterly Results
*
* Unaudited number * Unaudited number
2015 Monthly Revenues
3,984 3,9654,079
3,9143,798
3,444 3,528 3,596
3,213
Jan Feb Mar Apr May Jun Jul Aug Sep
Net operating revenues(Million NT$)
* *
*
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Revenue declined 7.3% quarterly due to seasonality weaker
demand and lower prices.
Q3’15 bit shipments slightly increased 0.9% QoQ.
ASP decreased 11.2% QoQ.
QoQ
Q3 ’15 vs. Q2’15
YoY
Q3’15 vs. Q3’14
Revenue -7.3% -21%
Shipment 0.9% 8.2 %
ASP -11.2% -31.5%
Exchange Rate 3.4% 6.5%
Quarterly Revenue Results
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Q3'15 Q2'15 QoQ
Q3'14 YoY
Amount in Million NT$, except for EPS Unaudited Audited Audited
Net Sales 10,337 100% 11,156 100% -7.3% 13,091 100% -21.0%
Gross Margin (Loss) Gross Margin(%) 3,858 37.3% 4,688 42% -17.7% 6,262 47.8% -38.4%
Operating Income (Loss) Operating Margin(%) 2,952 28.6% 3,908 35% -24.5% 5,452 41.6% -45.9%
EBITDA* EBITDA Margin (%) 4,428 42.8% 5,360 48% -17.4% 6,816 52% -35%
Non-operating Income (Exp.) 1,771** 17.1% 847 7.6% 2,883 22%
Income Tax Benefit (Expense) -2 -0.0% -490*** -4.4% -874 -6.7%
Net Income (Loss) Net Margin (%) 4,715 45.6% 4,254 38.1% 10.8% 7,463 57% -36.8%
Earnings Per Share 1.94**** 1.75 3.11
Book Value Per Share 21.57 19.62 13.39
Shares Outstanding(million shares) 2,429 2,428 2,398
Note: * EBITDA = Operating income + Depreciation & Amortization Expenses
** Non-Operating income included NT$ 1,394M from “estimated” Inotera’s profits in Q3’15
*** Q2’15 recognized tax expenses of NT$ 485M from 10% surtax on undistributed earnings.
**** EPS is based on weighted average outstanding shares of 2,423million.
Q3’15 Financial Results Summary
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(Million NT$) (Million NT$)
R&D Expenses SG&A Expenses
Note: Q2’14 SG&A recognized NT$ 217M from settling and clearing
Sumpro employees’ seniority of service.
Operating Expenses
Q1, 275 Q1, 429
Q2, 334
Q2, 354
Q3, 358
Q3, 484
Q4, 411
2014 2015
NT$1,378
Q1, 429 Q1, 477
Q2, 643 Q2, 425
Q3, 453
Q3, 421
Q4, 462
2014 2015
NT$1,987
Note: Q3’15 R&D expense increased to NT$ 484M mainly for variety
products development.
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Q3'15 Q2'15 Q3'14
(Unit: Million NT$) Unaudited &
Consolidated
Audited &
Consolidated
Audited &
Consolidated
Beginning Balance 7,189 7,429 7,422
Cash from Operating
Activities 4,358 4,418 6,461
Capital expenditures -1,322 -782 -3,933
Long-term & Short-term
loans -1,853 -3,993 -7,764
Investments and others -4,901* 118 1,981
Ending Balance 3,470 7,189 4,167
Free Cash Flow (1) 3,035 3,636 2,528
(1) Free Cash Flow = Cash from operating activities – Capital expenditures
Q3’15 Cash Flows
* Mainly due to cash dividend payout to shareholders
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-31%
-102%
-85%
-30%
-4%
13%17.8%
39.9% 43.8%47.8%
48.6%47.2%
42%37.3%
-110%
70%
-20,000
-
20,000
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%, LCM excluded)
Financial Highlights R
eve
nu
e, N
et In
co
me
(M
illio
n N
T$
) G
ross M
arg
in (%
)
*LCM: Lower of cost or market.
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Sales Breakdown by Application
* Revenue portion
% o
f To
tal R
eve
nu
e
Applications
Commodity
Server
Low Power
Consumer &
Specialty
Non PC
reach 76.5%
65%
Consumer & Specialty, 64.1%
13%Low Power,
12.4%
22%
Commodity, 23.5%
0%
50%
100%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Consumer & Specialty Low Power Server Commodity
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Financial Summary
Gross margin 37.3%, Operating margin 28.6%, net margin 45.6%
Recognized NT$ 1,394 million(M) from Inotera’s profits in Q3
Net income NT$ 4,715M, EPS NT$ 1.94, BVPS NT$ 21.57
30nm Design Shrink exceed 40% output in 3Q15
Cost per bit improved mid-single digits in QoQ
*BVPS: Book Value Per Share
Q3’15 Highlights
Q1~Q3’15 Highlights
Accumulated Net income of NT$15,260M, net margin 45.5%
Accumulated EPS NT$ 6.3
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02
OPERATIONS
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61.6%
12.1%
26.3%
0%
50%
100%
2012 2013 2014 2015(E)
Consumer & Specialty Low Power Server PC
Consumer
& Specialty
>65%
Low
Power
>15% Non
PC :
49.7%
* Revenue portion by Application
Non-PC:
>80%
2015 Revenue Breakdown Guidance
Applications
Commodity
Low Power
Consumer &
Specialty
Server
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Capital
Expenditure
(Capex)
NT$1,322M Capex of Q3’15.
Estimated NT$5,119M for 2015 Capex.
(20nm facility expenditure starts from Q1’16.)
Bit Shipment Q3’15 bit shipment increase 0.9% QoQ.
Estimated bit shipment up single digits in Q4’15.
2015 bit shipment remains guidance to increase mid-teens yoy.
NT$ Billion
Capex & Bit Shipment
53%
28%
Flat -8.6%
Up mid-teens
2011 2012 2013 2014 2015
Bit Shipment (YoY)
11
2
5.61 5.8 5.1
2011 2012 2013 2014 2015
Capex
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03
MARKET OUTLOOK
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PC DRAM price decline continue in early Q4,
however inventory is gradually reducing
Seasonal demand gradually picking up in market
other than PC
Potential positive demand outlook from iPhone 6s and
major brand smartphone
Expect Skylake gradually increasing PC DRAM
demand by year end, and 2016
Upcoming holiday season for consumer electronics,
TV, STB
DRAM Market Outlook
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04
BUSINESS OUTLOOK
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Business Outlook
Q4 bit shipment up single digits.
30nm Design Shrink exceed 50% output Q4’15.
Cost improvement targets mid single digits Q4’15.
Resume equity funding plan.
20nm conversion plan on schedule.
nanya.com 19 October 12, 2015 © 2015 Nanya Technology Corp.
Thanks & Questions
“The slides 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 accuracy and
completeness of the forward-looking statements or undertakes duty to update the statements. Investor(s) is urged to review
carefully the information provided herein and shall make investment decision after conducting their own investigation.”
20 October 12, 2015 © 2015 Nanya Technology Corp.
Q3'15 Q2'15 QoQ
Q3'14 YoY
Audited Amount: Million NT$ Unaudited Audited
Net Sales 10,337 100.0% 11,156 100.0% -7.3% 13,091 100.0% -21.0%
Cost of Goods Sold 6,480 62.7% 6,468 58.0% 6,828 52.2%
Gross Margin 3,858 37.3% 4,688 42.0% -17.7% 6,262 47.8% -38.4%
SG&A Expenses 422 4.1% 425 3.8% 453 3.5%
R&D Expenses 484 4.7% 354 3.2% 358 2.7%
Operating Income 2,952 28.6% 3,908 35.0% -24.5% 5,452 41.6% -45.9%
Non-operating Income (Exp.) 1,771 17.1% 847 7.6% 2,883 22.0%
Income before Tax 4,722 45.7% 4,755 42.6% -0.7% 8,335 63.7% -43.3%
Income Tax Benefit (Expense) -2 -0.0% -490 -4.4% -874 -6.7%
Profit from Continuing Operation 4,720 45.7% 4,265 38.2% 7,461 57.0%
Income (Loss) from Discontinued
Operation 0 0.0% 0 0.0% 4 0.0%
Net income attributable to
noncontrolling interests 5 0.0% 10 0.1% 3 0.0%
Net Income attributable to NTC 4,715 45.6% 4,254 38.1% 10.8% 7,463 57.0% -36.8%
EPS(NT$) 1.94 1.75 3.11
Book Value Per Share 21.57 19.62 13.39
3Q’15 Consolidated Income Statement