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NTC — Interim / Quarterly Report 2019
Jun 17, 2019
52061_rns_2019-06-17_9f47a1ae-ada6-49e9-9606-821096aa0a71.pdf
Interim / Quarterly Report
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NTC Proprietary
April 16, 2019 © 2019 Nanya Technology Corp.
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 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.
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| Q1’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q1'19 Q4'18 QoQ Q1'18 YoY Audited Audited Audited Net Sales 11,372 100% 16,958 100% -32.9% 18,797 100% -39.5% Gross Profit (Loss)Gross Margin(%) 4,633 40.7% 8,972 52.9% -48.4% 9,741 51.8% -52.4% Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -57.4% 8,319 44.3% -63.7% EBITDA EBITDA Margin (%) 6,381 56.1% 10,217 60.2% -37.5% 11,236 59.8% -43.2% Non-operating Income (Expense) 567 5.0% 893 5.3% -36.5% -1,092 -5.8% Income Tax Benefit (Expense) 0 0.0% -32 -0.2% -1 0.0% Net Income (Loss)Net Margin (%) 3,586 31.5% 7,953 46.9% -54.9% 7,227 38.4% -50.4% Earnings Per Share (NT$) 1.18* 2.57 2.39 Book Value Per Share (NT$) 55.26 54.02 47.24 Shares Outstanding(million shares) 3,034 3,053 3,060 |
Q1’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q1'19 Q4'18 QoQ Q1'18 YoY Audited Audited Audited Net Sales 11,372 100% 16,958 100% -32.9% 18,797 100% -39.5% Gross Profit (Loss)Gross Margin(%) 4,633 40.7% 8,972 52.9% -48.4% 9,741 51.8% -52.4% Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -57.4% 8,319 44.3% -63.7% EBITDA EBITDA Margin (%) 6,381 56.1% 10,217 60.2% -37.5% 11,236 59.8% -43.2% Non-operating Income (Expense) 567 5.0% 893 5.3% -36.5% -1,092 -5.8% Income Tax Benefit (Expense) 0 0.0% -32 -0.2% -1 0.0% Net Income (Loss)Net Margin (%) 3,586 31.5% 7,953 46.9% -54.9% 7,227 38.4% -50.4% Earnings Per Share (NT$) 1.18* 2.57 2.39 Book Value Per Share (NT$) 55.26 54.02 47.24 Shares Outstanding(million shares) 3,034 3,053 3,060 |
Q1’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q1'19 Q4'18 QoQ Q1'18 YoY Audited Audited Audited Net Sales 11,372 100% 16,958 100% -32.9% 18,797 100% -39.5% Gross Profit (Loss)Gross Margin(%) 4,633 40.7% 8,972 52.9% -48.4% 9,741 51.8% -52.4% Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -57.4% 8,319 44.3% -63.7% EBITDA EBITDA Margin (%) 6,381 56.1% 10,217 60.2% -37.5% 11,236 59.8% -43.2% Non-operating Income (Expense) 567 5.0% 893 5.3% -36.5% -1,092 -5.8% Income Tax Benefit (Expense) 0 0.0% -32 -0.2% -1 0.0% Net Income (Loss)Net Margin (%) 3,586 31.5% 7,953 46.9% -54.9% 7,227 38.4% -50.4% Earnings Per Share (NT$) 1.18* 2.57 2.39 Book Value Per Share (NT$) 55.26 54.02 47.24 Shares Outstanding(million shares) 3,034 3,053 3,060 |
Q1’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q1'19 Q4'18 QoQ Q1'18 YoY Audited Audited Audited Net Sales 11,372 100% 16,958 100% -32.9% 18,797 100% -39.5% Gross Profit (Loss)Gross Margin(%) 4,633 40.7% 8,972 52.9% -48.4% 9,741 51.8% -52.4% Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -57.4% 8,319 44.3% -63.7% EBITDA EBITDA Margin (%) 6,381 56.1% 10,217 60.2% -37.5% 11,236 59.8% -43.2% Non-operating Income (Expense) 567 5.0% 893 5.3% -36.5% -1,092 -5.8% Income Tax Benefit (Expense) 0 0.0% -32 -0.2% -1 0.0% Net Income (Loss)Net Margin (%) 3,586 31.5% 7,953 46.9% -54.9% 7,227 38.4% -50.4% Earnings Per Share (NT$) 1.18* 2.57 2.39 Book Value Per Share (NT$) 55.26 54.02 47.24 Shares Outstanding(million shares) 3,034 3,053 3,060 |
Q1’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q1'19 Q4'18 QoQ Q1'18 YoY Audited Audited Audited Net Sales 11,372 100% 16,958 100% -32.9% 18,797 100% -39.5% Gross Profit (Loss)Gross Margin(%) 4,633 40.7% 8,972 52.9% -48.4% 9,741 51.8% -52.4% Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -57.4% 8,319 44.3% -63.7% EBITDA EBITDA Margin (%) 6,381 56.1% 10,217 60.2% -37.5% 11,236 59.8% -43.2% Non-operating Income (Expense) 567 5.0% 893 5.3% -36.5% -1,092 -5.8% Income Tax Benefit (Expense) 0 0.0% -32 -0.2% -1 0.0% Net Income (Loss)Net Margin (%) 3,586 31.5% 7,953 46.9% -54.9% 7,227 38.4% -50.4% Earnings Per Share (NT$) 1.18* 2.57 2.39 Book Value Per Share (NT$) 55.26 54.02 47.24 Shares Outstanding(million shares) 3,034 3,053 3,060 |
Q1’19 Financial Results Summary Amount in Million NT$, except for EPS & BVPS Q1'19 Q4'18 QoQ Q1'18 YoY Audited Audited Audited Net Sales 11,372 100% 16,958 100% -32.9% 18,797 100% -39.5% Gross Profit (Loss)Gross Margin(%) 4,633 40.7% 8,972 52.9% -48.4% 9,741 51.8% -52.4% Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -57.4% 8,319 44.3% -63.7% EBITDA EBITDA Margin (%) 6,381 56.1% 10,217 60.2% -37.5% 11,236 59.8% -43.2% Non-operating Income (Expense) 567 5.0% 893 5.3% -36.5% -1,092 -5.8% Income Tax Benefit (Expense) 0 0.0% -32 -0.2% -1 0.0% Net Income (Loss)Net Margin (%) 3,586 31.5% 7,953 46.9% -54.9% 7,227 38.4% -50.4% Earnings Per Share (NT$) 1.18* 2.57 2.39 Book Value Per Share (NT$) 55.26 54.02 47.24 Shares Outstanding(million shares) 3,034 3,053 3,060 |
|---|---|---|---|---|---|
| Amount in Million NT$, except for EPS & BVPS |
Q1'19 | Q4'18 | QoQ | Q1'18 | YoY |
| Audited | Audited | Audited | |||
| Net Sales | 11,372 100% |
16,958 100% |
-32.9% | 18,797 100% |
-39.5% |
| Gross Profit (Loss)Gross Margin(%) | 4,633 40.7% |
8,972 52.9% |
-48.4% | 9,741 51.8% |
-52.4% |
| Operating Income (Loss) Operating Margin(%) |
3,020 26.6% |
7,092 41.8% |
-57.4% | 8,319 44.3% |
-63.7% |
| EBITDA* EBITDA Margin (%) | 6,381 56.1% |
10,217 60.2% |
-37.5% | 11,236 59.8% |
-43.2% |
| Non-operating Income (Expense) | 567 5.0% |
893 5.3% |
-36.5% | -1,092 -5.8% |
|
| Income Tax Benefit (Expense) | 0 0.0% |
-32 -0.2% |
-1 0.0% |
||
| Net Income (Loss)Net Margin (%) | 3,586 31.5% |
7,953 46.9% |
-54.9% | 7,227 38.4% |
-50.4% |
| Earnings Per Share (NT$) | 1.18** | 2.57 | 2.39 | ||
| Book Value Per Share (NT$) | 55.26 | 54.02 | 47.24 | ||
| Shares Outstanding(million shares) | 3,034 | 3,053 | 3,060 |
Note: * EBITDA = Operating income + Depreciation & Amortization Expenses
** EPS is based on weighted average outstanding shares of 3,035M
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| Q1’19 vs. Q4’18 Results Comparison Q1’19 Q4'18 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 11,372 16,958 ASP decreased by low twentys% QoQ Bit shipment decreased by low teens % range QoQ Gross Profit (Loss) Gross Margin(%) 4,633 40.7% 8,972 52.9% -12.2% Q1’19 Gross profit decreased NT$ 4,339M, mainly due to pricing and shipment decline Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -15.2% Q1’19 OP Income decreased NT$ 4,073M Gross profit decreased NT$ 4,339M SG&A decreased NT$ 97M, R&D expense decreased NT$ 169M Net Income (Loss) Net Margin (%) 3,586 31.5% 7,953 46.9% -15.4% Net Income decreased NT$ 4,367M OP Income decreased NT$ 4,073M FX** gain decreased NT$ 386M (Q1’19: NT$ 91M; Q4’18: NT$ 477M) Other Income increased NT$ 92M mainly from Interest Income |
Q1’19 vs. Q4’18 Results Comparison Q1’19 Q4'18 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 11,372 16,958 ASP decreased by low twentys% QoQ Bit shipment decreased by low teens % range QoQ Gross Profit (Loss) Gross Margin(%) 4,633 40.7% 8,972 52.9% -12.2% Q1’19 Gross profit decreased NT$ 4,339M, mainly due to pricing and shipment decline Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -15.2% Q1’19 OP Income decreased NT$ 4,073M Gross profit decreased NT$ 4,339M SG&A decreased NT$ 97M, R&D expense decreased NT$ 169M Net Income (Loss) Net Margin (%) 3,586 31.5% 7,953 46.9% -15.4% Net Income decreased NT$ 4,367M OP Income decreased NT$ 4,073M FX** gain decreased NT$ 386M (Q1’19: NT$ 91M; Q4’18: NT$ 477M) Other Income increased NT$ 92M mainly from Interest Income |
Q1’19 vs. Q4’18 Results Comparison Q1’19 Q4'18 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 11,372 16,958 ASP decreased by low twentys% QoQ Bit shipment decreased by low teens % range QoQ Gross Profit (Loss) Gross Margin(%) 4,633 40.7% 8,972 52.9% -12.2% Q1’19 Gross profit decreased NT$ 4,339M, mainly due to pricing and shipment decline Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -15.2% Q1’19 OP Income decreased NT$ 4,073M Gross profit decreased NT$ 4,339M SG&A decreased NT$ 97M, R&D expense decreased NT$ 169M Net Income (Loss) Net Margin (%) 3,586 31.5% 7,953 46.9% -15.4% Net Income decreased NT$ 4,367M OP Income decreased NT$ 4,073M FX** gain decreased NT$ 386M (Q1’19: NT$ 91M; Q4’18: NT$ 477M) Other Income increased NT$ 92M mainly from Interest Income |
Q1’19 vs. Q4’18 Results Comparison Q1’19 Q4'18 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 11,372 16,958 ASP decreased by low twentys% QoQ Bit shipment decreased by low teens % range QoQ Gross Profit (Loss) Gross Margin(%) 4,633 40.7% 8,972 52.9% -12.2% Q1’19 Gross profit decreased NT$ 4,339M, mainly due to pricing and shipment decline Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -15.2% Q1’19 OP Income decreased NT$ 4,073M Gross profit decreased NT$ 4,339M SG&A decreased NT$ 97M, R&D expense decreased NT$ 169M Net Income (Loss) Net Margin (%) 3,586 31.5% 7,953 46.9% -15.4% Net Income decreased NT$ 4,367M OP Income decreased NT$ 4,073M FX** gain decreased NT$ 386M (Q1’19: NT$ 91M; Q4’18: NT$ 477M) Other Income increased NT$ 92M mainly from Interest Income |
Q1’19 vs. Q4’18 Results Comparison Q1’19 Q4'18 QoQ (PPT* Delta) Remarks Amount in Million NT$ Audited Audited Net Sales 11,372 16,958 ASP decreased by low twentys% QoQ Bit shipment decreased by low teens % range QoQ Gross Profit (Loss) Gross Margin(%) 4,633 40.7% 8,972 52.9% -12.2% Q1’19 Gross profit decreased NT$ 4,339M, mainly due to pricing and shipment decline Operating Income (Loss) Operating Margin(%) 3,020 26.6% 7,092 41.8% -15.2% Q1’19 OP Income decreased NT$ 4,073M Gross profit decreased NT$ 4,339M SG&A decreased NT$ 97M, R&D expense decreased NT$ 169M Net Income (Loss) Net Margin (%) 3,586 31.5% 7,953 46.9% -15.4% Net Income decreased NT$ 4,367M OP Income decreased NT$ 4,073M FX** gain decreased NT$ 386M (Q1’19: NT$ 91M; Q4’18: NT$ 477M) Other Income increased NT$ 92M mainly from Interest Income |
|---|---|---|---|---|
| Q1’19 | Q4'18 | QoQ (PPT* Delta) |
Remarks | |
| Amount in Million NT$ | Audited | Audited | ||
| Net Sales | 11,372 | 16,958 | ASP decreased by low twentys% QoQ Bit shipment decreased by low teens % range QoQ |
|
| Gross Profit (Loss) Gross Margin(%) |
4,633 40.7% |
8,972 52.9% |
-12.2% | Q1’19 Gross profit decreased NT$ 4,339M, mainly due to pricing and shipment decline |
| Operating Income (Loss) Operating Margin(%) |
3,020 26.6% |
7,092 41.8% |
-15.2% | Q1’19 OP Income decreased NT$ 4,073M Gross profit decreased NT$ 4,339M SG&A decreased NT$ 97M, R&D expense decreased NT$ 169M |
| Net Income (Loss) Net Margin (%) |
3,586 31.5% |
7,953 46.9% |
-15.4% | Net Income decreased NT$ 4,367M OP Income decreased NT$ 4,073M FX** gain decreased NT$ 386M (Q1’19: NT$ 91M; Q4’18: NT$ 477M) Other Income increased NT$ 92M mainly from Interest Income |
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*PPT: Percentage Points, ** FX: Foreign Currency Exchange
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Quarterly Financial Highlights
80%
Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%) Operating Margin(%)
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Quarterly Financial Highlights
40,000
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58.9%
55%
52.9%
52%
50% 51.0%
47% 47%
44% [44%] 44%
42% 39% 40.7%
41.8%
40%
40%
20,000 37% 40%
33%
34% 32%
33%
32%
31% 31%
30% 26.6%
28% 28%
25%
21%
11,372
18% 18%
17%
3,586
0 0%
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 Q3'18 Q4'18 Q1'19
Revenue, Net Income (Million NT$)
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| ash Flows Q1'19 Q4'18 Q1'18 Unit: Million NT$ Audited & Consolidated Audited & Consolidated Audited & Consolidated Beginning Balance 57,384 57,259 33,769 Cash from Operating Activities 5,916 15,427 7,943 Capital expenditures -1,723 -12,745 -1,941 Investments and others -1,203 -2,556 10,425 Ending Balance 60,374 57,384 50,197 Free Cash Flow(1) 4,193 2,681 6,003* |
ash Flows Q1'19 Q4'18 Q1'18 Unit: Million NT$ Audited & Consolidated Audited & Consolidated Audited & Consolidated Beginning Balance 57,384 57,259 33,769 Cash from Operating Activities 5,916 15,427 7,943 Capital expenditures -1,723 -12,745 -1,941 Investments and others -1,203 -2,556 10,425 Ending Balance 60,374 57,384 50,197 Free Cash Flow(1) 4,193 2,681 6,003* |
ash Flows Q1'19 Q4'18 Q1'18 Unit: Million NT$ Audited & Consolidated Audited & Consolidated Audited & Consolidated Beginning Balance 57,384 57,259 33,769 Cash from Operating Activities 5,916 15,427 7,943 Capital expenditures -1,723 -12,745 -1,941 Investments and others -1,203 -2,556 10,425 Ending Balance 60,374 57,384 50,197 Free Cash Flow(1) 4,193 2,681 6,003* |
ash Flows Q1'19 Q4'18 Q1'18 Unit: Million NT$ Audited & Consolidated Audited & Consolidated Audited & Consolidated Beginning Balance 57,384 57,259 33,769 Cash from Operating Activities 5,916 15,427 7,943 Capital expenditures -1,723 -12,745 -1,941 Investments and others -1,203 -2,556 10,425 Ending Balance 60,374 57,384 50,197 Free Cash Flow(1) 4,193 2,681 6,003* |
|---|---|---|---|
| Q1'19 | Q4'18 | Q1'18 | |
| Unit: Million NT$ | Audited & Consolidated |
Audited & Consolidated |
Audited & Consolidated |
| Beginning Balance | 57,384 | 57,259 | 33,769 |
| Cash from Operating Activities | 5,916 -1,723 -1,203* |
15,427 | 7,943 |
| Capital expenditures | -12,745 | -1,941 | |
| Investments and others | -2,556** | 10,425 | |
| Ending Balance | 60,374 | 57,384 | 50,197 |
| Free Cash Flow(1) | 4,193 | 2,681 | 6,003 |
Cash Flows
(1) Free Cash Flow = Cash from operating activities – Capital expenditures
- Mainly for share buyback of NT$ 1,030M ** Mainly for share buyback of NT$ 2,783M
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CAPEX & Bit Shipment
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NT$ Billion
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mid thirty %
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Low Single
digits%
Flat
2017 2018 2019(E)
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CAPEX
Bit Shipment (YoY)
-
Capital Q1’19 CAPEX NT$ 1.7Billion (B)
-
Expenditure (CAPEX) 2019 CAPEX plan reduce from NT$ 10.6B to approx. NT$ 7B (34% cut)
-
Q1’19 Bit shipment decreased by low teens %
Bit Shipment
-
Q2’19 bit shipment growth guided for up single digits %
-
2019 Bit shipment growth trim down to low single digits %
-
Allocate 5~10% more capacity to technology & product development
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DRAM Market outlook – Q1’2019
-
Macroeconomic uncertainty, inventory adjustment and CPU shortages impact DRAM demand in Q1’19 resulted in price decline worse than expectation. Expect Q2’19
-
Outlook inventory gradually digested and price decline narrowing. Optimistic on Q3’19 market stabilization with seasonal peak on consumer applications, mobile demand increase cou led with PC and server recover p y
-
Supply Major suppliers reduce capital expenditures and adjust inventory
-
Mobile Market
:Smartphone unit shipments expected to decrease in 2019, due to deferred replacement cycle before 5G adoption -
Server Market
:Q1’19 Inventory adjustment in server markets and expect demand to resume gradually. AI & connectivity will sustain sever market long-term growth
Demand
-
PC Market
:PC shipments effected of CPU shortages, expected to be eased from Q3’19 -
Consumer Market
:US-China trade factors continue to interfere consumer market in short-term. Set-top boxes, smart speakers, SSDs, and IP CAMs grown will increase DRAM demand in the long run
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Nanya Business Review & Outlook
-
Received National Industry Innovation Award from the Ministry of Economic Affairs, R.O.C.
-
Cash dividend of NT$ 21.7B (NT$ 7.09 ~ 7.15 per common share) will be
-
proposed to the AGM on May 30, 2019
-
2019 Capex plan further trim down > 30% to approx. NT$ 7B
-
Allocate 5~10% more capacity to technology & product development activities
-
Diversify product portfolio to minimize downside risks
-
DRAM demand growth strengthen expected from 2H 2019
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Thanks & Questions
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| Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement | Q1’19 Consolidated Income Statement |
|---|---|---|---|---|---|---|---|
| Q1'19 | Q4'18 | QoQ | Q1’18 | YoY | |||
| Amount: Million NT$ | Audited |
Audited | Audited | ||||
| Net Sales | 11,372 100.0% |
16,958 100.0% |
-32.9% | 18,797 100.0% | -39.5% | ||
| Cost of Goods Sold | 6,739 59.3% |
7,986 47.1% |
9,057 48.2% |
||||
| Gross Margin | 4,633 40.7% |
8,972 52.9% |
-48.4% | 9,741 51.8% |
-52.4% | ||
| SG&A Expenses | 465 4.1% |
562 3.3% |
546 2.9% |
||||
| R&D Expenses | 1,148 10.1% |
1,318 7.8% |
876 4.7% |
||||
| Operating Income | 3,020 26.6% |
7,092 41.8% |
-57.4% | 8,319 44.3% |
-63.7% | ||
| Non-operating Income (Exp.) | 567 5.0% |
893 5.3% |
-1,092 -5.8% |
||||
| Income before Tax | 3,586 31.5% |
7,985 47.1% |
-55.1% | 7,227 38.4% |
-50.4% | ||
| Income Tax Benefit (Expense) | 0 0.0% |
-32 -0.2% |
-1 0.0% |
||||
| Net Income | 3,586 31.5% |
7,953 46.9% |
7,226 38.4% |
||||
| Net income attributable to noncontrolling interests |
0 0.0% |
0 0.0% |
-1 0.0% |
||||
| Net Income attributable to NTC | 3,586 31.5% |
7,953 46.9% |
-54.9% | 7,227 38.4% |
-50.4% | ||
| EPS(NT$) | 1.18 | 2.57 | 2.39 | ||||
| Book Value Per Share | 55.26 | 54.02 | 47.24 |
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