Weltrend — Interim / Quarterly Report 2019

Aug 28, 2019

偉詮電子股份有限公司 Weltrend Semiconductor, Inc. Investor Conference

Cindy Guo Tony Lin CFO and Spokesperson Executive Assistant to CEO Finance Division CEO’s Office

Aug 28, 2019

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Weltrend Semiconductor, Inc.
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P1

Safe Harbor Notice

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Forward-looking Statements

Weltrend’s statements and any others in this release that refer to business outlook, future plans, and expectations are forward-looking statements that involve a number of risks and uncertainties. Statements that refer to or are based on projections, uncertain events or assumptions also identify forwardlooking statements. Such statements are based on management's expectations as of the date of this earnings release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Weltrend presently considers the following to be important factors that could cause actual results to differ materially from the company's expectations.

~~Weltrend Semiconductor, Inc.~~

P2

Copyright © Weltrend 2018, All Rights Reserved

1H19 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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1H19 % 1H18 % YoY %	1H19 % 1H18 % YoY %	1H19 % 1H18 % YoY %	1H19 % 1H18 % YoY %	1H19 % 1H18 % YoY %	1H19 % 1H18 % YoY %
Net sales	1,087,413	100	1,257,666	100	-14
Cost of good sold	(819,186)	(75)	(958,013)	(76)	-14
Gross Profit	268,227	25	299,653	24	-11
Operating Exp.	(232,564)	(22)	(248,004)	(20)	-6
Selling & Adm.	(97,718)	(9)	(106,159)	(9)	-8
R & D Exp.	(134,846)	(13)	(141,845)	(11)	-5
Operating Income	35,663	3	51,649	4	-31
Net Non-Operating Income	133,814	12	182,308	15	-27
Income Before Tax	169,477	15	233,957	19	-28
Income Tax Exp.	(13,706)	(1)	(44,424)	(4)	-69
Net Income	155,771	14	189,533	15	-18
EPS	0.88		0.85

~~Weltrend Semiconductor, Inc.~~

P3

Copyright  Weltrend 2019, All Rights Reserved

2Q19 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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2Q19 % 2Q18 % YoY %	2Q19 % 2Q18 % YoY %	2Q19 % 2Q18 % YoY %	2Q19 % 2Q18 % YoY %	2Q19 % 2Q18 % YoY %	2Q19 % 2Q18 % YoY %
Net sales	586,969	100	667,640	100	-12
Cost of good sold	(435,887)	(74)	(504,224)	(76)	-14
Gross Profit	151,082	26	163,416	24	-8
Operating Exp.	(116,934)	(20)	(136,552)	(20)	-14
Selling & Adm.	(50,682)	(9)	(58,235)	(8)	-13
R & D Exp.	(66,252)	(11)	(78,317)	(12)	-15
Operating Income	34,148	6	26,864	4	27
Net Non-Operating Income	1,886	-	155,853	23	-99
Income Before Tax	36,034	6	182,717	27	-80
Income Tax (Exp.) Benefit	8,961	1	(37,117)	(5)	-
Net Income	44,995	7	145,600	22	-69
EPS	0.25		0.66

~~Weltrend Semiconductor, Inc.~~

P4

Copyright  Weltrend 2018, All Rights Reserved

2Q19 Consolidated Income Statement (QoQ)

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(Expressed in NT$K)

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2Q19 % 1Q19 % QoQ %	2Q19 % 1Q19 % QoQ %	2Q19 % 1Q19 % QoQ %	2Q19 % 1Q19 % QoQ %	2Q19 % 1Q19 % QoQ %	2Q19 % 1Q19 % QoQ %
Net sales	586,969	100	500,444	100	17
Cost of good sold	(435,887)	(74)	(383,299)	(77)	14
Gross Profit	151,082	26	117,145	23	29
Operating Exp.	(116,934)	(20)	(115,630)	(23)	1
Selling & Adm.	(50,682)	(9)	(47,036)	(9)	8
R & D Exp.	(66,252)	(11)	(68,594)	(14)	-3
Operating Income	34,148	6	1,515	-	2154
Net Non-Operating Income	1,886	-	131,928	27	-99
Income Before Tax	36,034	6	133,443	27	-73
Income Tax (Exp.) Benefit	8,961	1	(22,667)	(5)	-
Net Income	44,995	7	110,776	22	-59
EPS	0.25		0.62

~~Weltrend Semiconductor, Inc.~~

P5

Copyright  Weltrend 2018, All Rights Reserved

Balance Sheet Summary

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	2019/06/30 2019/03/31 Cash & Financial Assets - current 2,365,967 2,236,036 Notes & Accounts receivable 688,586 643,796 Inventories 361,144 438,921 Property, Plant and Equipment 243,399 241,873 Other assets 180,610 150,122 Total assets 3,839,706 3,710,748 Notes & Accounts payable 273,451 288,068 Other current liabilities 593,515 310,168 Noncurrent liabilities 124,830 112,923 Stockholders’ equity 2,847,910 2,999,589 (Expressed in NT$K)	2019/06/30 2019/03/31 Cash & Financial Assets - current 2,365,967 2,236,036 Notes & Accounts receivable 688,586 643,796 Inventories 361,144 438,921 Property, Plant and Equipment 243,399 241,873 Other assets 180,610 150,122 Total assets 3,839,706 3,710,748 Notes & Accounts payable 273,451 288,068 Other current liabilities 593,515 310,168 Noncurrent liabilities 124,830 112,923 Stockholders’ equity 2,847,910 2,999,589 (Expressed in NT$K)	2019/06/30 2019/03/31 Cash & Financial Assets - current 2,365,967 2,236,036 Notes & Accounts receivable 688,586 643,796 Inventories 361,144 438,921 Property, Plant and Equipment 243,399 241,873 Other assets 180,610 150,122 Total assets 3,839,706 3,710,748 Notes & Accounts payable 273,451 288,068 Other current liabilities 593,515 310,168 Noncurrent liabilities 124,830 112,923 Stockholders’ equity 2,847,910 2,999,589 (Expressed in NT$K)
	2019/06/30 2019/03/31
	Cash & Financial Assets - current	2,365,967	2,236,036
	Notes & Accounts receivable	688,586	643,796
	Inventories	361,144	438,921
	Property, Plant and Equipment	243,399	241,873
	Other assets	180,610	150,122
	Total assets	3,839,706	3,710,748
	Notes & Accounts payable	273,451	288,068
	Other current liabilities	593,515	310,168
	Noncurrent liabilities	124,830	112,923
	Stockholders’ equity	2,847,910	2,999,589

~~Weltrend Semiconductor, Inc.~~

P6

Copyright  Weltrend 2018, All Rights Reserved

A 30-year IC Design Company

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• Founded Founded in the Hsinchu Science Park in July, 1989 NT$1.78 billion (US$59.3 millions)

• Capital

• Headcount 285 (as the end of 2Q19)  Self-owned brand IC product development and sales

• Main Business  ASIC product development and sales

• Value-added resale (VAR) for international name brand components (ex. ROHM)

• In 1995, awarded with Taiwan’s 4th National Award of Outstanding Small &

• Honors Medium Enterprises, being the first company from Science Park to win the title.

• First listed on Taiwan OTC market in 1997 and then subsequently listed on Taiwan's mainboard, TAIEX, in 2000 (Ticker 2436).

• Awarded with “Taiwan Technology Fast 50” by Deloitte and named multiple times as one of companies with best ROE and ROI by renowned financial magazines in Taiwan.

• ADAS R&D Team Awarded with the 17th Annual Technology Management Award by CSMOT.

• Ranked Top 20% in 2016 Corporate Governance Evaluation and Awarded Most Improved Company.

~~Weltrend Semiconductor, Inc.~~

P7

Copyright © Weltrend 2018, All Rights Reserved

Product Portfolio

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POWER
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Power & Analog

Power IC/USB PD Controller/Motor Driver/LED Driver

• Supervisor ICs for PC, server, and game console SPS

• USB PD, Qualcomm® Quick Charge[TM] , and other Proprietary Quick Charging Controllers

• PWM Controller and SR Controller for USB PD and Qualcomm Quick Charge chargers

• Motor Driver and BLDC Motor Controller

Display MCU/ADAS Processor

Display

• Sub-MCU, with energy saving, DVI sensor, and HDMI CEC function for LCD TV/MFM and Multi-Media System

• Automotive Around View Monitor (AVM) Video Processors and Smart Camera Processor for ADAS

Consumer MCU/smartSD[TM] Controller/POS/mPOS/Barcode Decoder

• MCU for portable health care devices

Consumer

• Heart rate monitor for smartphone and wearable devices

• USB HID for Keyboard, Mouse, Dongle, and Game Pads

• smartSD[TM] controller, Boosted NFC microSD[TM] , Boosted NFC SIM, Boosted NFC eSE, and Secure microSD[TM] for security identification and mobile/wearable payment

• MSR decoder, smart card interface IC, and barcode decoder for POS systems

• Barcode decoder for payment scanner and door access control systems

General Purpose MCU

8-bit MCU (ADC/ADC+LCD Type)/32-bit MCU

• 8-bit MCU (ADC Type): 4KB~16KB Flash ROM

• 8-bit MCU (ADC+LCD Type): 8KB~16KB Flash ROM

• 32-bit MCU: 32KB~ 192KB Flash ROM

~~Weltrend Semiconductor, Inc.~~

P8

Copyright © Weltrend 2019, All Rights Reserved

Q & A

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www.weltrend.com.tw

~~Weltrend Semiconductor, Inc.~~

P9

Copyright © Weltrend 2018, All Rights Reserved

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THANK YOU!

~~Weltrend Semiconductor, Inc.~~

P10

Copyright © Weltrend 2018, All Rights Reserved