FST — Interim / Quarterly Report 2018

May 22, 2018

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Results for First Quarter of FY2018

台塑勝高科技股份有限公司

FORMOSA SUMCO TECHNOLOGY CORPORATION

(Code:3532)

May 23, 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

Company Overview (公司概況)

Financial Overview (財務概況)

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

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Company Overview (公司概況)

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1-1 Mana ement Philoso h g p y

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Chairman / Jason Lin 董事長 / 林健男

 Diligence & Frugality

(勤勞樸實)

• Search For Root Causes

(追根究柢)

 Fast Service & Reputation First

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(服務迅速及信譽第一)

• High Quality

(高品質)  Reasonable Management (合理化管理)

President / Takashi Fukushima 總經理 / 福島隆

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1-2 Company Profile

• Established : Nov.21, 1995 ( 民國 84 年 11 月 21 日 )

• Capital : NT$ 7,756 million ( 新台幣 77.56 億元

 Shareholders : SUMCO TECHXIV Corporation 46.95% Formosa Plastics Corporation 29.06% ( 台塑公司 ) Asia-Pacific Investment Corporation 8.94% ( 亞太投資公司 )

Others 15.05%

• Product : 200mm&300mm Silicon Wafer (8 吋及 12 吋矽晶圓 )

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1-3 Location

Taipei Office (台北辦公室) Hwa Ya Technology Park Hsinchu (Taoyuan) Office (華亞科學園區) (新竹辦公室) Hsinchu Science Park (竹科) Mai-Liao Central Taiwan Factory Science Park (麥寮工廠) (中科) Southern Taiwan Science Park (南科)

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1-4 Applications & Customers

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Financial Overview (財務概況)

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2-1 Anal is of Chan in Business Results ys ges

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(NT$ millions) 1Q-2018 versus 4Q-2017 4,200 3,500 2,800 2,100 1,400 700 0 Net Revenue Operating Income Income Before Net Income Income Tax (In NT$ thousands) 1Q-2018 Consolidated Business Results 1Q-2018 Actual 4Q-2017 Actual Change Net Revenue 3,818,759 3,322,313 14.9% Operating Income 1,308,724 870,393 50.4% Income Before Income Tax 1,281,402 821,031 56.1% Net Income 1,128,010 711,600 58.5%

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2-1 Anal is of Chan in Business Results ys ges

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(NT$ millions) 1Q-2018 versus 1Q-2017 4,000 3,000 2,000 1,000 0 Net Revenue Operating Income Income Before Net Income Income Tax

1Q-2018 Consolidated Business Results	1Q-2018 Actual	1Q-2017 Actual	Change
Net Revenue Operating Income Income Before Income Tax Net Income	3,818,759 1,308,724 1,281,402 1,128,010	2,984,109 448,679 341,167 294,761	28.0% 191.7% 275.6% 282.7%

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2-2 Summar of Consolidated Business Results y

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Revenue

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Profitability

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Profit Margin

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2-3 EPS(NT$)

EPS-in the Past Five Years

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EPS-Quarterly

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2-4 EPS & Dividend Payout

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EPS versus Dividend Payout in the Past Five Years

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2-5 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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2-6 Summary of Consolidated Business Results

				(In NT$ thousands)	(In NT$ thousands)
	2014	2015	2016	2017	1Q18
Net Revenue	11,147,014	10,487,897	10,794,340	12,713,025	3,818,759
Gross Profit	1,550,616	1,875,002	1,364,550	3,394,509	1,491,696
Gross Margin	13.91%	17.88%	12.64%	26.70%	39.06%
Operating Income	1,227,049	1,489,440	961,122	2,749,810	1,308,724
Operating Margin	11.01%	14.20%	8.90%	21.63%	34.27%
Non-Operating Income and Expenses	58,441	45,652	(55,795)	(134,618)	(27,322)
Income Before Income Tax	1,285,490	1,535,092	905,327	2,615,192	1,281,402
Net Income	1,086,935	1,278,051	730,390	2,242,774	1,128,010
Net Profit Margin	9.75%	12.19%	6.77%	17.64%	29.54%
EPS(NT Dollar)	1.40	1.65	0.94	2.89	1.45
ROE	5.66%	6.43%	3.64%	10.76%	5.07%
Depreciation	2,025,554	2,039,012	2,092,538	2,079,783	514,062
EBITDA	3,331,756	3,599,965	3,095,790	4,840,619	1,823,550

Note: EBITDA=Operating Income + Depreciation + Amortization

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2-7 Consolidated Balance Sheet

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(In NT$ thousands)

2014 2015 2016 2017 1Q18 Cash and cash equivalents 2,245,067 2,787,512 4,400,895 7,609,7227,835,798 Trade receivable 1,635,271 1,422,400 1,602,346 2,128,7762,603,494 Inventories 1,743,834 2,286,752 2,065,542 2,344,7852,394,679 Property, plant and equipment 15,481,904 14,797,376 13,225,806 11,812,99711,628,443 Other assets 864,554 863,992 431,105 338,687392,515 Total assets 21,970,630 22,158,032 21,725,694 24,234,967 24,854,929 Short-term borrowings - - - - - Trade payables 691,397 633,804 623,138 542,620605,697 Long-term borrowings 345,458 - - - - Other payables 506,550 865,142 608,040 1,320,721592,325 Other liabilities 790,925 529,677 493,275 699,618845,758 Total liabilities 2,334,330 2,028,623 1,724,453 2,562,959 2,043,780 Share capital 7,756,966 7,756,966 7,756,966 7,756,9667,756,966 Capital surplus 5,739,080 5,739,080 5,739,080 5,739,0825,739,082 Retained earnings 6,140,069 6,608,606 6,479,624 8,164,5219,292,531 Other equity 185 24,757 25,571 11,43922,570 Total equity 19,636,300 20,129,409 20,001,241 21,672,008 22,811,149 1

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2-8 Consolidated Cash Flow

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			(In NT$ thousands)	(In NT$ thousands)	(In NT$ thousands)
	2014	2015	2016	2017	1Q18
Income before income tax	1,285,490	1,535,092	905,327	2,615,192	1,281,402
Total adjustments to reconcile profit (loss)	2,085,270	2,094,662	2,096,663	2,130,012	507,161
Changes in operating assets and liabilities	433,266	(282,800)	162,974	(630,826)	(953,217)
Other cash inflow and outflow	(86,098)	(147,593)	(181,423)	(107,374)	(6,634)
Net cash generated from operating activities	3,717,928	3,199,361	2,983,541	4,007,004	828,712
Net cash used in investing activities	(364,508)	(1,218,305)	(572,789)	(330,628)	(573,724)
Net cash used in financing activities	(1,179,204)	(1,460,768)	(845,284)	(511,709)	2,004
Effects of exchange rate	(1,166)	22,157	47,915	44,160	(30,916)
Net increase(decrease) in cash and cash equivalents	2,173,050	542,445	1,613,383	3,208,827	226,076

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

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3-1 Market Environment

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■

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■2018 Outlook

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·

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3-2 300mm Wafer Trend Forecast

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(Source: SUMCO estimation)

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3-3 200mm Wafer Trend Forecast

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(Source: SUMCO estimation)

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3-4 Forecast Global Capacity of 300mm Wafer

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〈 〉
(K wafers/Month)
9,000
Existing Global Capacity ~
Brown Field
8,000 Green Field
Customer Demand Forecast SUMCO Forecast
Demand Forecast Based On PPP-GDP
7,000
Actual Shipment
6,000
5,000
4,000
3,000
2,000
1,000
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Forecast
(Source: SUMCO estimation)
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3-5 Leading-edge Logic Scaling

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(Source: SUMCO estimation)

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3-6 Leading-edge Memory Scaling

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(Source: SUMCO estimation)

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3-7 Memory bit-growth and Scaling

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(Source: SUMCO estimation)

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3-8 300mm Wafer Demand(by Devices)

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(Source: SUMCO estimation)

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3-9 Growth Rate of China 300mm Customers Capacity

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300%
200%
100%
0%
2017 2018 2019 2020
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(Source: FST estimation)

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Thank you Have a nice day

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Q&A

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