AI assistant
NTC — Interim / Quarterly Report 2019
Dec 9, 2019
52061_rns_2019-12-09_3f1a2f81-4820-412d-a901-e8a95ec2f6ff.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
==> picture [108 x 18] intentionally omitted <==
==> picture [171 x 28] intentionally omitted <==
==> picture [262 x 321] intentionally omitted <==
NTC Proprietary
April 16, 2019 © 2019 Nanya Technology Corp.
Level: Property
==> picture [186 x 144] intentionally omitted <==
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 accuracy and completeness of the forward-looking statements or undertakes 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.
2
| Q3’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q3'19 Q2'19 QoQ Q3'18 YoY Audited Audited Audited Net Sales 14,799 100% 12,441 100% 19.0% 24,375 100% -39.3% Gross Profit (Loss)Gross Margin(%) 4,137 28.0% 4,348 34.9% -4.9% 14,366 58.9% -71.2% Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -19.7% 12,434 51.0% -81.9% EBITDA EBITDA Margin (%) 5,957 40.3% 6,427 51.7% -7.3% 15,487 63.5% -61.5% Non-operating Income (Expense) 432 2.9% 600 4.8% 438 1.8% Income Tax Benefit (Expense) -479 -3.2% -657 -5.3% 0 0.0% Net Income (Loss)Net Margin (%) 2,205 14.9% 2,748 22.1% -19.8% 12,872 52.8% -82.9% Earnings Per Share (NT$) 0.72 0.90 4.15 Book Value Per Share (NT$) 49.71** 49.01 51.52 Shares Outstanding(million shares) 3,053 3,052 3,102 |
Q3’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q3'19 Q2'19 QoQ Q3'18 YoY Audited Audited Audited Net Sales 14,799 100% 12,441 100% 19.0% 24,375 100% -39.3% Gross Profit (Loss)Gross Margin(%) 4,137 28.0% 4,348 34.9% -4.9% 14,366 58.9% -71.2% Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -19.7% 12,434 51.0% -81.9% EBITDA EBITDA Margin (%) 5,957 40.3% 6,427 51.7% -7.3% 15,487 63.5% -61.5% Non-operating Income (Expense) 432 2.9% 600 4.8% 438 1.8% Income Tax Benefit (Expense) -479 -3.2% -657 -5.3% 0 0.0% Net Income (Loss)Net Margin (%) 2,205 14.9% 2,748 22.1% -19.8% 12,872 52.8% -82.9% Earnings Per Share (NT$) 0.72 0.90 4.15 Book Value Per Share (NT$) 49.71** 49.01 51.52 Shares Outstanding(million shares) 3,053 3,052 3,102 |
Q3’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q3'19 Q2'19 QoQ Q3'18 YoY Audited Audited Audited Net Sales 14,799 100% 12,441 100% 19.0% 24,375 100% -39.3% Gross Profit (Loss)Gross Margin(%) 4,137 28.0% 4,348 34.9% -4.9% 14,366 58.9% -71.2% Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -19.7% 12,434 51.0% -81.9% EBITDA EBITDA Margin (%) 5,957 40.3% 6,427 51.7% -7.3% 15,487 63.5% -61.5% Non-operating Income (Expense) 432 2.9% 600 4.8% 438 1.8% Income Tax Benefit (Expense) -479 -3.2% -657 -5.3% 0 0.0% Net Income (Loss)Net Margin (%) 2,205 14.9% 2,748 22.1% -19.8% 12,872 52.8% -82.9% Earnings Per Share (NT$) 0.72 0.90 4.15 Book Value Per Share (NT$) 49.71** 49.01 51.52 Shares Outstanding(million shares) 3,053 3,052 3,102 |
Q3’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q3'19 Q2'19 QoQ Q3'18 YoY Audited Audited Audited Net Sales 14,799 100% 12,441 100% 19.0% 24,375 100% -39.3% Gross Profit (Loss)Gross Margin(%) 4,137 28.0% 4,348 34.9% -4.9% 14,366 58.9% -71.2% Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -19.7% 12,434 51.0% -81.9% EBITDA EBITDA Margin (%) 5,957 40.3% 6,427 51.7% -7.3% 15,487 63.5% -61.5% Non-operating Income (Expense) 432 2.9% 600 4.8% 438 1.8% Income Tax Benefit (Expense) -479 -3.2% -657 -5.3% 0 0.0% Net Income (Loss)Net Margin (%) 2,205 14.9% 2,748 22.1% -19.8% 12,872 52.8% -82.9% Earnings Per Share (NT$) 0.72 0.90 4.15 Book Value Per Share (NT$) 49.71** 49.01 51.52 Shares Outstanding(million shares) 3,053 3,052 3,102 |
Q3’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q3'19 Q2'19 QoQ Q3'18 YoY Audited Audited Audited Net Sales 14,799 100% 12,441 100% 19.0% 24,375 100% -39.3% Gross Profit (Loss)Gross Margin(%) 4,137 28.0% 4,348 34.9% -4.9% 14,366 58.9% -71.2% Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -19.7% 12,434 51.0% -81.9% EBITDA EBITDA Margin (%) 5,957 40.3% 6,427 51.7% -7.3% 15,487 63.5% -61.5% Non-operating Income (Expense) 432 2.9% 600 4.8% 438 1.8% Income Tax Benefit (Expense) -479 -3.2% -657 -5.3% 0 0.0% Net Income (Loss)Net Margin (%) 2,205 14.9% 2,748 22.1% -19.8% 12,872 52.8% -82.9% Earnings Per Share (NT$) 0.72 0.90 4.15 Book Value Per Share (NT$) 49.71** 49.01 51.52 Shares Outstanding(million shares) 3,053 3,052 3,102 |
Q3’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q3'19 Q2'19 QoQ Q3'18 YoY Audited Audited Audited Net Sales 14,799 100% 12,441 100% 19.0% 24,375 100% -39.3% Gross Profit (Loss)Gross Margin(%) 4,137 28.0% 4,348 34.9% -4.9% 14,366 58.9% -71.2% Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -19.7% 12,434 51.0% -81.9% EBITDA EBITDA Margin (%) 5,957 40.3% 6,427 51.7% -7.3% 15,487 63.5% -61.5% Non-operating Income (Expense) 432 2.9% 600 4.8% 438 1.8% Income Tax Benefit (Expense) -479 -3.2% -657 -5.3% 0 0.0% Net Income (Loss)Net Margin (%) 2,205 14.9% 2,748 22.1% -19.8% 12,872 52.8% -82.9% Earnings Per Share (NT$) 0.72 0.90 4.15 Book Value Per Share (NT$) 49.71** 49.01 51.52 Shares Outstanding(million shares) 3,053 3,052 3,102 |
|---|---|---|---|---|---|
| Amount in Million NT$, except for EPS & BVPS |
Q3'19 | Q2'19 | QoQ | Q3'18 | YoY |
| Audited | Audited | Audited | |||
| Net Sales | 14,799 100% |
12,441 100% |
19.0% | 24,375 100% |
-39.3% |
| Gross Profit (Loss)Gross Margin(%) | 4,137 28.0% |
4,348 34.9% |
-4.9% | 14,366 58.9% | -71.2% |
| Operating Income (Loss) Operating Margin(%) |
2,252 15.2% |
2,805 22.5% |
-19.7% | 12,434 51.0% | -81.9% |
| EBITDA* EBITDA Margin (%) | 5,957 40.3% |
6,427 51.7% |
-7.3% | 15,487 63.5% | -61.5% |
| Non-operating Income (Expense) | 432 2.9% |
600 4.8% |
438 1.8% |
||
| Income Tax Benefit (Expense) | -479 -3.2% |
-657 -5.3% |
0 0.0% |
||
| Net Income (Loss)Net Margin (%) | 2,205 14.9% |
2,748 22.1% |
-19.8% | 12,872 52.8% | -82.9% |
| Earnings Per Share (NT$) | 0.72** | 0.90 | 4.15 | ||
| Book Value Per Share (NT$) | 49.71*** | 49.01 | 51.52 | ||
| Shares Outstanding(million shares) | 3,053 | 3,052 | 3,102 |
Note: * EBITDA = Operating income + Depreciation & Amortization Expenses
- ** EPS is based on weighted average outstanding shares of 3,053M
*** BVPS is calculated based on 3,053M outstanding shares after deduction of NT$ 7.11 cash dividend
3
| Q3’19 vs. Q2’19 Results Comparison Q3’19 Q2’19 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 14,799 12,441 +19% Bit shipment increased by mid-thirty% range QoQ ASP decreased by low-teens% QoQ Gross Profit (Loss) Gross Margin(%) 4,137 28.0% 4,348 34.9% -6.9% Q3’19 Gross profit decreased NT$ 211M, mainly due to ASP drop, amid strong shipment growth Operating Expense 1,885 12.7% 1,543 12.4% 0.3% SG&A increased NT$ 57M, R&D expense increased NT$ 285M Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -7.3% Q3’19 OP Income decreased NT$ 553M Net Income (Loss) Net Margin (%) 2,205 14.9% 2,748 22.1% -7.2% Net Income decreased NT$ 543M OP Income decreased NT$ 553M FX & Interest income decreased NT$ 160M Income tax decreased 178M |
Q3’19 vs. Q2’19 Results Comparison Q3’19 Q2’19 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 14,799 12,441 +19% Bit shipment increased by mid-thirty% range QoQ ASP decreased by low-teens% QoQ Gross Profit (Loss) Gross Margin(%) 4,137 28.0% 4,348 34.9% -6.9% Q3’19 Gross profit decreased NT$ 211M, mainly due to ASP drop, amid strong shipment growth Operating Expense 1,885 12.7% 1,543 12.4% 0.3% SG&A increased NT$ 57M, R&D expense increased NT$ 285M Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -7.3% Q3’19 OP Income decreased NT$ 553M Net Income (Loss) Net Margin (%) 2,205 14.9% 2,748 22.1% -7.2% Net Income decreased NT$ 543M OP Income decreased NT$ 553M FX & Interest income decreased NT$ 160M Income tax decreased 178M |
Q3’19 vs. Q2’19 Results Comparison Q3’19 Q2’19 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 14,799 12,441 +19% Bit shipment increased by mid-thirty% range QoQ ASP decreased by low-teens% QoQ Gross Profit (Loss) Gross Margin(%) 4,137 28.0% 4,348 34.9% -6.9% Q3’19 Gross profit decreased NT$ 211M, mainly due to ASP drop, amid strong shipment growth Operating Expense 1,885 12.7% 1,543 12.4% 0.3% SG&A increased NT$ 57M, R&D expense increased NT$ 285M Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -7.3% Q3’19 OP Income decreased NT$ 553M Net Income (Loss) Net Margin (%) 2,205 14.9% 2,748 22.1% -7.2% Net Income decreased NT$ 543M OP Income decreased NT$ 553M FX & Interest income decreased NT$ 160M Income tax decreased 178M |
Q3’19 vs. Q2’19 Results Comparison Q3’19 Q2’19 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 14,799 12,441 +19% Bit shipment increased by mid-thirty% range QoQ ASP decreased by low-teens% QoQ Gross Profit (Loss) Gross Margin(%) 4,137 28.0% 4,348 34.9% -6.9% Q3’19 Gross profit decreased NT$ 211M, mainly due to ASP drop, amid strong shipment growth Operating Expense 1,885 12.7% 1,543 12.4% 0.3% SG&A increased NT$ 57M, R&D expense increased NT$ 285M Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -7.3% Q3’19 OP Income decreased NT$ 553M Net Income (Loss) Net Margin (%) 2,205 14.9% 2,748 22.1% -7.2% Net Income decreased NT$ 543M OP Income decreased NT$ 553M FX & Interest income decreased NT$ 160M Income tax decreased 178M |
Q3’19 vs. Q2’19 Results Comparison Q3’19 Q2’19 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 14,799 12,441 +19% Bit shipment increased by mid-thirty% range QoQ ASP decreased by low-teens% QoQ Gross Profit (Loss) Gross Margin(%) 4,137 28.0% 4,348 34.9% -6.9% Q3’19 Gross profit decreased NT$ 211M, mainly due to ASP drop, amid strong shipment growth Operating Expense 1,885 12.7% 1,543 12.4% 0.3% SG&A increased NT$ 57M, R&D expense increased NT$ 285M Operating Income (Loss) Operating Margin(%) 2,252 15.2% 2,805 22.5% -7.3% Q3’19 OP Income decreased NT$ 553M Net Income (Loss) Net Margin (%) 2,205 14.9% 2,748 22.1% -7.2% Net Income decreased NT$ 543M OP Income decreased NT$ 553M FX & Interest income decreased NT$ 160M Income tax decreased 178M |
|---|---|---|---|---|
| Q3’19 | Q2’19 | QoQ (PPT* Delta) |
Remarks | |
| Amount in Million NT$ | Audited | Audited | ||
| Net Sales | 14,799 | 12,441 | +19% | Bit shipment increased by mid-thirty% range QoQ ASP decreased by low-teens% QoQ |
| Gross Profit (Loss) Gross Margin(%) |
4,137 28.0% |
4,348 34.9% |
-6.9% | Q3’19 Gross profit decreased NT$ 211M, mainly due to ASP drop, amid strong shipment growth |
| Operating Expense | 1,885 12.7% |
1,543 12.4% |
0.3% | SG&A increased NT$ 57M, R&D expense increased NT$ 285M |
| Operating Income (Loss) Operating Margin(%) |
2,252 15.2% |
2,805 22.5% |
-7.3% | Q3’19 OP Income decreased NT$ 553M |
| Net Income (Loss) Net Margin (%) |
2,205 14.9% |
2,748 22.1% |
-7.2% | Net Income decreased NT$ 543M OP Income decreased NT$ 553M FX & Interest income decreased NT$ 160M Income tax decreased 178M |
*PPT: Percentage Points 4
20,000
Quarterly Financial Highlights
Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%)
==> picture [186 x 144] intentionally omitted <==
----- Start of picture text -----
80%
----- End of picture text -----
Operating Margin(%)
==> picture [803 x 343] intentionally omitted <==
----- Start of picture text -----
58.9%
55%
51.0%52.9%
52%
50%
47%
44% 44% 44% 41.8%
40% 39% 40.7%
40%
34.9%
33% 33%
32% 32%
31% 31%
14,799
28%
26.6%
25%
28%
22.5%
21%
18%
17%
15.2%
2,205
0%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19
----- End of picture text -----
5
Cash Flows
Q1~Q3 2019 Cash Flow
==> picture [459 x 333] intentionally omitted <==
----- Start of picture text -----
Q3'19 Q2'19
Audited & Audited &
Consolidated Consolidated
Unit: Million NT$
Beginning Balance 60,861 60,374
Cash from Operating
5,103 1,591
Activities
Capital expenditures -1,106 -1,827
Dividend and others -21,673* 723
Ending Balance 43,184 60,861
Free Cash Flow [(1)] 3,996 -236
----- End of picture text -----**
(1) Free Cash Flow = Cash from operating activities – Capital expenditures
* Mainly from dividend payout of NT$ 21.7B
** Including retained earnings tax NT$ 2.5B
==> picture [409 x 324] intentionally omitted <==
----- Start of picture text -----
Unit: Million NT$
-4,656
12,609 Capital
Expenditures
-22,154
Cash from
Operating
Activities
Dividend
and others
57,384 43,184
----- End of picture text -----
2019/1/1 2019/9/30 Beginning Ending Balance Balance
Q1~Q3 2019 Free Cash Flow NT$7,954 Million
6
CAPEX & Bit Shipment
==> picture [322 x 240] intentionally omitted <==
----- Start of picture text -----
NT$ Billion
29.4
20.4
7.0
2017 2018 2019(E)
CAPEX
----- End of picture text -----
==> picture [186 x 144] intentionally omitted <==
Mid-thirties %
==> picture [102 x 137] intentionally omitted <==
Low-teens%
==> picture [31 x 14] intentionally omitted <==
----- Start of picture text -----
Flat
----- End of picture text -----
==> picture [335 x 50] intentionally omitted <==
----- Start of picture text -----
2017 2018 2019(E)
Bit Shipment (YoY)
----- End of picture text -----
-
Capital Q1’19~Q3’19 CAPEX NT$ 4.7Billion (B)
-
Expenditure (CAPEX) 2019 CAPEX plan approx. NT$ 7B
-
Q3’19 Bit shipment increased by mid-thirties %
Bit Shipment
-
Q4’19 QoQ bit shipment expected to be flat or low single digits decline
-
2019 YoY bit shipment growth expected to be low-teens%
-
Continue allocating 5~10% capacity to technology & product development
7
Market Outlook
Outlook
-
Macro : Macro economic uncertainties expected to continue; Q3 seasonal effect resulted in shipment increase and inventory reduction. Q4 DRAM supply-demand expect to be stable and pricing pressure decrease
-
Sectors Outlook : Servers demand improve gradually, smartphone content per box increase, 2H’19 PC shipments better than 1H’19, and consumer demand remain stable
-
Supply Inventory adjustment continued, Capex plan conservative
-
Mobile Market: New smartphone upgraded with AI and multi-cameras to stimulate DRAM content growth. Introduction of 5G smartphones equipped with 8GB DRAM and forecast substantial shipment growth in coming years
-
Server Market: Server demand increase gradually. Enterprise cloud services, AI and
-
Demand network development, & streaming services continue to drive server long-term growth
-
PC Market: PC shipment 2H’19 better than 1H’19
-
Consumer Market: DRAM demand in consumer segments including TV, set-top box, smart speaker, SSD, gaming and smart watch…etc. to grow steady
8
Nanya Business Review & Outlook
-
Nanya named Dow Jones Sustainability Index on Emerging Markets Index for
-
2nd straight year
-
Strong Q3’19 bit shipment growth in consumer and commodity segments
-
Q4’19 DRAM market expected to stay stable
-
2019 bit shipment increase to low-teens%, in-line with market demand growth
-
20nm LPDDR4/4X and LPDDR3 products commenced volume shipment
-
10nm class technology development on track
9
==> picture [186 x 144] intentionally omitted <==
Thanks & Questions
10
| Q3’19 Consolidated Income Statement | Q3’19 Consolidated Income Statement | Q3’19 Consolidated Income Statement | Q3’19 Consolidated Income Statement | Q3’19 Consolidated Income Statement | Q3’19 Consolidated Income Statement | YoY -39.3% -71.2% -81.9% -79.2% -82.9% |
YoY -39.3% -71.2% -81.9% -79.2% -82.9% |
|---|---|---|---|---|---|---|---|
| Q3'19 | Q2'19 | QoQ | Q3’18 | YoY | |||
| Amount: Million NT$ | Audited |
Audited | Audited | ||||
| Net Sales | 14,799 100.0% |
12,441 100.0% |
19.0% | 24,375 100.0% |
-39.3% | ||
| Cost of Goods Sold | 10,662 72.0% |
8,093 65.1% |
10,008 41.1% |
||||
| Gross Margin | 4,137 28.0% |
4,348 34.9% |
-4.9% | 14,366 58.9% |
-71.2% | ||
| SG&A Expenses | 540 3.6% |
483 3.9% |
596 2.4% |
||||
| R&D Expenses | 1,345 9.1% |
1,059 8.5% |
1,336 5.5% |
||||
| Operating Income | 2,252 15.2% |
2,805 22.5% |
-19.7% | 12,434 51.0% |
-81.9% | ||
| Non-operating Income (Exp.) | 432 2.9% |
600 4.8% |
438 1.8% |
||||
| Income before Tax | 2,684 18.1% |
3,405 27.4% |
-21.2% | 12,872 52.8% |
-79.2% | ||
| Income Tax Benefit (Expense) | -479 -3.2% |
-657 -5.3% |
0 0.0% |
||||
| Net Income | 2,205 14.9% |
2,748 22.1% |
12,872 52.8% |
||||
| Net income attributable to noncontrolling interests |
0 0.0% |
0 0.0% |
0 0.0% |
||||
| Net Income attributable to NTC | 2,205 14.9% |
2,748 22.1% |
-19.8% | 12,872 52.8% |
-82.9% | ||
| EPS(NT$) | 0.72 | 0.90 | 4.15 | ||||
| Book Value Per Share | 49.71 | 49.01 | 51.52 |
11