Nanya Technology - TodayIR.comReached 72% revenue in non PC products in Q4’13. Cost per bit and...
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Nanya Technology 4Q’ 2013 Investor Conference Dr. Pei-Ing Lee , SVP & Spokesman January 28, 2014
Transcript of Nanya Technology - TodayIR.comReached 72% revenue in non PC products in Q4’13. Cost per bit and...
Nanya Technology 4Q’ 2013 Investor Conference!
Dr. Pei-Ing Lee , SVP & Spokesman January 28, 2014
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Agenda
n 4Q’13 Revenue & Results
n Year 2013 Revenue & Results
n Company Highlights
n Market Outlook
n Business Outlook
n Q&A
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4Q’13 Revenue & Results
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8,79810,102
6,553 7,026
9,246
13,835 11,45712,416
-118%
-66%
-154%
-126%
6% 12% 17%32%
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
Net operating revenues(Million NT$)
Net Margin(%)
Financial Highlights
2013 Monthly Revenues 2012-2013 Quarterly Results
＊
* Unaudited number * Unaudited number
2,6563,063
3,632
4,8014,6014,432
4,139
3,513 3,805
4,402
3,846 4,169
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Net operating revenues(Million NT$)
＊
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QoQ Q4 ’13 vs. Q3’13
YoY Q4’13 vs. Q4’12
Revenue 8.4% 64.2%
Shipment Flat -11.6%
ASP 10.5% 83.4%
Exchange Rate -1.2% 1.3%
Quarterly Revenue Results
n Q4’13 revenue increased 8.4% QoQ. n Q4 bit shipments flat QoQ. n ASP increased 10.5% QoQ due to supply disruption. n Lean Inventories at end of the fourth quarter.
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4Q’13 Consolidated Income Statement Q4'13 Q3'13
QoQ Q4'12
YoY Amount: Million NT$ Unaudited Audited Audited
Net Sales 12,416 100% 11,457 100% 8% 7,561 100% 64%
Cost of Goods Sold 10,440 84% 10,011 87% 13,975 185%
Gross Margin 1,976 16% 1,446 13% 37% -6,414 -85% －
SG&A Expenses 416 3% 481 4% 317 4%
R&D Expenses 391 3% 419 4% 791 10%
Operating Income 1,170 9% 546 5% 114% -7,523 -99% －
Non-operating Income (Exp.) 2,815 23% 1,435 13% -1,315 -17%
Income before Tax 3,985 32% 1,981 17% 101% -8,837 -117% －
Income Tax Benefit (Expense) -31 0% -4 0% -44 -1%
Net income attributable to non-controlling interests -35 0% -2 0% 0
Net Income attributable to NTC 3,989 32% 1,979 17% 102% -8,881 -117% －
EPS(NT$) 0.17 0.08 -0.45
Note : Q4’13 Operating income includes (1) charge of NT$ 320 million for the write-down of inventories, (2) loss of NT$ 265 million recognized from Sumpro .
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4Q’13 Cash Flows
* 4Q ’13 numbers are unaudited
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Financial Highlights
* NT$ 320 million of the write-down of inventories was excluded. LCM: Lower of cost or market.
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4Q’13 Revenue by Application
Server7%
Consumer55%
Low Power10%
Commodity28%
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48%55%
8%
10%10%
7%
34%28%
0%
50%
100%
Q1'13 Q2'13 Q3'13 Q4'13
Sales Breakdown by Application
* Revenue portion
% o
f Tot
al R
even
ue
Applications
Commodity
Sever
Low Power
Consumer & Specialty
Non PC : reach 72% Non
PC : 66%
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Growing Product Portfolios
Note: Growing Product Portfolios are: Storage, Printer, Networking, KGD, Industrial Grade, Automotive, Pachinko…etc.
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2013 Revenue & Results
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Annual Revenue
* Unaudited number
37,125 33,883
46,954
-111% -109%
17%
2011 2012 2013
Net operating revenues(Million NT$) Net Margin(%)*
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2013 vs. 2012
Revenue +38.6%
Shipment Flat
ASP +37.4%
Exchange Rate +0.2 %
2013 Revenue Results
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2013 Income Statement Y2013 Y2012
YoY Amount: Million NT$ Unaudited Audited
Net Sales 46,954 100% 33,882 100% 39%
Cost of Goods Sold 39,413 84% 56,176 166%
Gross Margin 7,541 16% -22,293 -66% －
SG&A Expenses 1,880 4% 2,079 6%
R&D Expenses 1,568 3% 6,192 18%
Operating Income 4,093 9% -30,565 -90% －
Non-operating Income (Exp.) 4,077 9% -5,411 -16%
Income before Tax 8,170 17% -35,976 -106% －
Income Tax Benefit (Expense) -42 0% -53 0%
Net income attributable to noncontrolling interests -42 0% 0 0%
Net Income attributable to NTC 8,169 17% -36,029 -106% －
EPS(NT$) 0.34 -2.24
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Company Highlights
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Business Highlights
n Improved Gross Margin to 16% and Net Margin to 32% in Q4’13.
n Reached 72% revenue in non PC products in Q4’13.
n Cost per bit and bit shipments about flat in Q4’13.
n Recognized NT$2.896Billion from Inotera’s profits.
n Secured NT$12Billion syndicated loan for financing working capital and loan repayments.
2013 Q4
2013
n 2013 Net Income at NT$8.169Billion vs. 2012 at -NT$36.029Billion n Growing product portfolios in 2013.
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Applications
Commodity
Sever
Low Power
Consumer & Specialty
Consumer & Specialty : >60%
Low Power : >20%
Non PC : 54%
2014 Revenue Breakdown Guidance
* Revenue portion by Application
Non-PC: >80%
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Business Update
n Capex n NT$5.61B Capex of 2013. n NT$0.256B Capex of Q4’13. n Estimated NT$3.05B for 2014 Capex. (mainly for 30nm capacity enhancement and 20nm preparation.)
n Bit Shipment n Flat bit growth in 2013 YoY. n Flat Q4’13 bit shipment QoQ. n Estimated up to mid-teen% bit shipment decrease in 2014.
NT$ Billion!
12 13
23
11
2
5.61
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013 2014
Capex
3.05
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Market Outlook
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DRAM Market Outlook – Moderate 2014
Market Outlook
Supply n The oligopolistic market structure will lead to limited DRAM growth. n Supply remain stable in Q1’14, supply growth expected in Q2’14.
Demand
n New game consoles (PS4, XBOX one) increase the Graphic DRAM and DDR3 demand.
n Increasing ratio in 4K/2K and smart TV and OTT high end settop box. n Server business remain strong. n Potential market stimulation in consumer segment by CES and Chinese
New Year. n PC market slightly better than expectation.
Price n Expect stable DRAM pricing in Q1’14, moderate correction in Q2’14, and remain healthy throughout 2014.
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Business Outlook
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Business Outlook
n Gross margin continues to improve in Q1’14.
n 30nm wafer output reached 70% of total capacity.
n Q1’14 & Y2014 bit shipments down mid-teen%.
n Launched Die Shrink Program.
n Improve shipment to China consumer market.
n Non-PC sales revenue targeted 80% in 2014.
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Q & A!
“The slides 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. Investor(s) is urged to review carefully the information provided herein and shall make investment decision after conducting their own investigation.”
