FST — Interim / Quarterly Report 2018

Nov 28, 2018

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Results for Third Quarter of FY2018

台塑勝高科技股份有限公司

FORMOSA SUMCO TECHNOLOGY CORPORATION

(Code:3532)

November 29, 2018

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Notes Re ardin the Forecasts g g

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本資料僅提供給股東及投資者參考用使用，並不構成本公司
在任何國家或地區之證券要約或招攬目的。
本資料是依照特定的假設及目前可獲得之資訊 (包含我們的
主觀判斷)去評估、預測及對未來之資訊之推估而成，而實際
的財務表現及營運結果可能會因為未來國內外的經濟情況、
半導體市場的趨勢變化及匯率變動等風險而有顯著不同。

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Contents

Financial Overview (財務概況)

Silicon Wafer Market Environment (矽晶圓市場環境)

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Financial Overview (財務概況)

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1-1 Anal is of Chan in Business Results ys ges

(NT$ millions) 3Q-2018(9 months) versus 3Q-2017(9 months)

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|||||
|---|---|---|---|
|14,000|
|12,000|
|3Q-2017(9 months) Actual|
|10,000|
|3Q-2018(9 months) Actual|
|8,000|
|6,000|
|4,000|
|2,000|
|0|
|Net Revenue|Operating Income|Income Before|Net Income|
|Income Tax|
|(In NT$ thousands)|
|3Q-2018 Consolidated Business Results|3Q-2018 Actual|3Q-2017 Actual|
|(9 months)|(9 months)|(9 months)|[ Change ]|
|Net Revenue|12,139,916|9,390,712|29.3%|
|Operating Income|4,623,575|1,879,417|146.0%|
|Income Before Income Tax|4,843,332|1,794,161|170.0%|
|Net Income|4,225,074|1,531,174|175.9%|

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1-1 Anal is of Chan in Business Results ys ges

(NT$ millions) 3Q-2018 versus 2Q-2018

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4,900 1.Declining profit margin resulted from net foreign 4,200 exchange gains (losses). 2.Change rate of Income Before Income Tax will be 8.3% 3,500 if exclude foreign exchange gains (losses) effect. 2,800 2,100 1,400 700 0 Net Revenue Operating Income Income Before Net Income Income Tax (In NT$ thousands) 3Q-2018 Consolidated Business Results 3Q-2018 Actual 2Q-2018 Actual Change Net Revenue 4,262,134 4,059,023 5.0% Operating Income 1,726,585 1,588,266 8.7% Income Before Income Tax 1,753,685 1,808,245 -3.0% - Net Income 1,520,856 1,576,208 3.5%

1.Declining profit margin resulted from net foreign exchange gains (losses). 2.Change rate of Income Before Income Tax will be 8.3% if exclude foreign exchange gains (losses) effect.

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1-2 Summar of Consolidated Business Results y

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Revenue Profitability

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(9 months)
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(9 months)
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Profit Margin

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(9 months)
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1-3 EPS(NT$)

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EPS-Quarterly

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★ 1 ★ 2

• 1.EPS calculated based on weighted average number of ordinary shares( 438,610 k).

• 2.EPS calculated based on new ordinary shares data( 387,848 k) after capital reduction

on July 13, 2018.

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1-4 EPS & Dividend Payout

EPS versus Dividend Payout

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3Q-2018
(9 months) (9 months)
★ 1 ★ 2
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• 1.EPS calculated based on weighted average number of ordinary shares( 662,174 k).

2.EPS calculated based on new ordinary shares data( 387,848 k) after capital reduction on July 13, 2018.

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1-5 Quarterl Trend-EBITDA y

(NT$millions)

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Note ： EBITDA=Operating Income + Depreciation + Amortization

EBITDA Margin=EBITDA/Net Revenue

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1-6 Summary of Consolidated Business Results

				(In NT$ thousands)	(In NT$ thousands)
	2014	2015	2016	2017	3Q18 (9 months)
Net Revenue	11,147,014	10,487,897	10,794,340	12,713,025	12,139,916
Gross Profit	1,550,616	1,875,002	1,364,550	3,394,509	5,202,218
Gross Margin	13.91%	17.88%	12.64%	26.70%	42.85%
Operating Income	1,227,049	1,489,440	961,122	2,749,810	4,623,575
Operating Margin	11.01%	14.20%	8.90%	21.63%	38.09%
Non-Operating Income and Expenses	58,441	45,652	(55,795)	(134,618)	219,757
Income Before Income Tax	1,285,490	1,535,092	905,327	2,615,192	4,843,332
Net Income	1,086,935	1,278,051	730,390	2,242,774	4,225,074
Net Profit Margin	9.75%	12.19%	6.77%	17.64%	34.80%
EPS(NT Dollar)	1.40	1.65	0.94	2.89	6.38
ROE	5.66%	6.43%	3.64%	10.76%	20.08%
Depreciation	2,025,554	2,039,012	2,092,538	2,079,783	1,552,136
EBITDA	3,331,756	3,599,965	3,095,790	4,840,619	6,178,028

Note: EBITDA=Operating Income + Depreciation + Amortization

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1-7 Consolidated Balance Sheet

	(In NT$ thousands)
	2014 2015 2016 2017 3Q18
	Cash and cash equivalents 2,245,067 2,787,512 4,400,895 7,609,7225,340,009 Trade receivable 1,635,271 1,422,400 1,602,346 2,128,7762,960,304 Inventories 1,743,834 2,286,752 2,065,542 2,344,7852,558,547 Property, plant and equipment 15,481,904 14,797,376 13,225,806 11,812,99711,229,320 Other assets 864,554 863,992 431,105 338,687880,728 Total assets 21,970,630 22,158,032 21,725,694 24,234,967 22,968,908
	Short-term borrowings - - - - - Trade payables 691,397 633,804 623,138 542,620512,537 Long-term borrowings 345,458 - - - - Other payables 506,550 865,142 608,040 1,320,721966,100 Other liabilities 790,925 529,677 493,275 699,618 1,079,539 Total liabilities 2,334,330 2,028,623 1,724,453 2,562,959 2,558,176
	Share capital 7,756,966 7,756,966 7,756,966 7,756,9663,878,483 Capital surplus 5,739,080 5,739,080 5,739,080 5,739,0825,739,085 Retained earnings 6,140,069 6,608,606 6,479,624 8,164,521 10,776,145 Other equity 185 24,757 25,571 11,43917,019 Total equity 19,636,300 20,129,409 20,001,241 21,672,008 20,410,732
	1

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1-8 Consolidated Cash Flow

			(In NT$ thousands)	(In NT$ thousands)
	2014	2015	2016 2017	3Q18
				(9 months)
Income before income tax	1,285,490	1,535,092	905,327 2,615,192	4,843,332
Total adjustments to reconcile profit (loss)	2,085,270	2,094,662	2,096,663 2,130,012	1,515,495
Changes in operating assets and liabilities	433,266	(282,800)	162,974(630,826)	(1,103,486)
Other cash inflow and outflow	(86,098)	(147,593)	(181,423) (107,374)	(294,656)
Net cash generated from operating activities	3,717,928	3,199,361	2,983,541 4,007,004	4,960,685
Net cash used in investing activities	(364,508)	(1,218,305)	(572,789) (330,628)	(1,726,948)
Net cash used in financing activities	(1,179,204)	(1,460,768)	(845,284) (511,709)	(5,485,561)
Effects of exchange rate	(1,166)	22,157	47,915 44,160	(17,889)
Net increase(decrease) in cash and cash equivalents	2,173,050	542,445	1,613,383 3,208,827	(2,269,713)

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Silicon Wafer Market Environment (矽晶圓市場環境)

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2-1 Market Environment

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2-2 200mm Wafer Trend Forecast

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(Source: SUMCO estimation)

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2-3 300mm Wafer Trend Forecast

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(Source: SUMCO estimation)

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2-4 Customer 300mm Wafer Inventory Level

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2-5 300mm Wafer Global Capacity and Demand

(K wafers/Month)

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(Source: SUMCO estimation)

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Thank you Have a nice day

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