UMC Reports Fourth Quarter 2014 Results
Full-year 2014 foundry revenue up 10%, operating profit increased 74% YoY
TAIPEI, Taiwan, Jan. 28, 2015 /PRNewswire/ --
Fourth Quarter 2014 Overview[1]:
- Revenue: NT$37.24 billion (US$1.18 billion)
- Gross margin: 27.4%; operating margin: 12.2%
- Foundry revenue from advanced nodes: 7% from 28nm, 21% from 40nm
- Foundry capacity utilization rate: 93%
- Net income attributable to the stockholders of the parent: NT$4.56 billion (US$144 million)
- Earnings per share: NT$0.36; earnings per ADS: US$0.057
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2014.
Fourth quarter consolidated revenue was NT$37.24 billion, a 5.7% quarterly increase from NT$35.21 billion in 3Q14 and a 21.2% annual increase from NT$30.72 billion in 4Q13. 4Q14 consolidated gross margin was 27.4%, with operating margin at 12.2%. Net income attributable to the stockholders of the parent was NT$4.56 billion, with earnings per ordinary share of NT$0.36. For 2014, full year revenue was NT$140.01 billion, with NT$10.08 billion in operating income, NT$12.14 billion net income attributable to the stockholders of the parent and NT$0.97 earnings per share.
Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter, foundry revenue grew 3.7% sequentially to NT$34.74 billion. This figure includes a one-time 40nm licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. Overall capacity utilization rate remained at 93%, bringing shipments to 1.43 million 8-inch equivalent wafers. Our 28nm technologies represented 7% of our foundry revenue in 4Q14. Shipments from our 28nm gate-last, High-K Metal Gate process exceeded that of 28nm poly-SiON wafers. Excluding the Fujitsu 40nm licensing fee, UMC's 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28nm, which accounted for 3% of total 2014 revenue. Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand."
CEO Yen continued, "The Taiwan government authorities recently approved UMC's application to invest in a 12" joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China's enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC's differentiated approach of global expansion, proven through Singapore's Fab12i and SuZhou's Fab8N successfully achieving economy of scale while mitigating customer risks via geographic diversification. While we expand production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CAPEX for approximately US$1.8 billion. Our 2015 CAPEX illustrates our strong commitment to meet customers' requirements and gain additional market share through efficient execution and strategic alliances. UMC's global expansion efforts, driven by manufacturing excellence, will strengthen customer services with increased operating scale to enhance corporate financial earnings and deliver long-term returns to our shareholders."
Summary of Operating Results
| Operating Results |
|||||
| (Amount: NT$ million) |
4Q14 |
3Q14 |
QoQ % |
4Q13 |
YoY % |
| Net Operating Revenues |
37,235 |
35,214 |
5.7 |
30,719 |
21.2 |
| Gross Profit |
10,186 |
7,559 |
34.8 |
5,557 |
83.3 |
| Operating Expenses |
(5,672) |
(5,270) |
7.6 |
(5,317) |
6.7 |
| Net Other Operating Income and Expenses |
18 |
(602) |
- |
(46) |
- |
| Operating Income |
4,532 |
1,687 |
168.6 |
194 |
2,236.1 |
| Net Non-Operating Income and Expenses |
843 |
1,305 |
(35.4) |
889 |
(5.2) |
| Net Income Attributable to the Stockholders of the Parent |
4,563 |
2,916 |
56.5 |
749 |
509.2 |
| EPS (NT$ per share) |
0.36 |
0.23 |
0.06 |
||
| (US$ per ADS) |
0.057 |
0.036 |
0.009 |
||
In 4Q14, foundry business grew 3.7% sequentially to NT$34.74 billion, including a one-time Fujitsu 40nm licensing fee, while New Business segment posted revenue of NT$2.52 billion, leading to consolidated revenue of NT$37.24 billion, up 5.7% from 3Q14. On a consolidated base, gross profit increased 34.8% to NT$10.19 billion, or 27.4% of revenue. Operating income grew 168.6% sequentially to NT$4.53 billion, or 12.2% of revenue. Net income attributable to the stockholders of the parent in 4Q14 was NT$4.56 billion, up 56.5% compared to NT$2.92 billion in 3Q14.
Earnings per ordinary share for the quarter were NT$0.36. Earnings per ADS were US$0.057. The basic weighted average number of outstanding shares in 4Q14 was 12,509,658,059, compared with 12,500,808,739 shares in 3Q14 and 12,476,082,332 shares in 4Q13. The diluted weighted average number of outstanding shares was 12,620,712,149 in 4Q14, compared with 12,582,502,645 shares in 3Q14 and 13,243,379,446 shares in 4Q13. The fully diluted share count on December 31, 2014 was approximately 12,779,034,000. On December 31, 2014, UMC held 195 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Foundry revenue increased 3.7% from 4Q14 to NT$34.74 billion, which included a Fujitsu 40nm licensing fee, while New Business posted NT$2.52 billion, which led to total revenue of NT$37.24 billion. Operating expenses increased 7.6% to NT$5.67 billion, partly due to a 17.5% rise in sales and marketing that included higher IP and mask expenses. Research and development expenses increased 1.9% to NT$3.54 billion or 9.5% of operating revenues. Net operating income was NT$4.53 billion.
| COGS & Expenses |
|||||
| (Amount: NT$ million) |
4Q14 |
3Q14 |
QoQ % |
4Q13 |
YoY % |
| Net Operating Revenues |
37,235 |
35,214 |
5.7 |
30,719 |
21.2 |
| COGS |
(27,049) |
(27,655) |
(2.2) |
(25,162) |
7.5 |
| Depreciation |
(8,495) |
(8,483) |
0.1 |
(7,939) |
7.0 |
| Other Mfg. Costs |
(18,554) |
(19,172) |
(3.2) |
(17,223) |
7.7 |
| Gross Profit |
10,186 |
7,559 |
34.8 |
5,557 |
83.3 |
| Gross Margin (%) |
27.4% |
21.5% |
18.1% |
||
| Operating Expenses |
(5,672) |
(5,270) |
7.6 |
(5,317) |
6.7 |
| G&A |
(1,013) |
(845) |
19.9 |
(826) |
22.6 |
| Sales & Marketing |
(1,124) |
(957) |
17.5 |
(906) |
24.1 |
| R&D |
(3,535) |
(3,468) |
1.9 |
(3,585) |
(1.4) |
| Net Other Operating Income & Expenses |
18 |
(602) |
- |
(46) |
- |
| Operating Income |
4,532 |
1,687 |
168.6 |
194 |
2,236.1 |
Net non-operating income in 4Q14 was NT$843 million. Gain on disposal of investments was NT$639 million, including a NT$528 million gain from the disposal of Montage shares.
| Non-Operating Income and Expenses |
|||
| (Amount: NT$ million) |
4Q14 |
3Q14 |
4Q13 |
| Non-Operating Income and Expenses |
843 |
1,305 |
889 |
| Net Interest Income and Expenses |
(12) |
(8) |
(53) |
| Net Investment Gain and Loss |
(37) |
487 |
(394) |
| Gain and Loss on Disposal of Investment |
639 |
580 |
985 |
| Exchange Gain and Loss |
201 |
114 |
114 |
| Other Gain and Loss |
52 |
132 |
237 |
Cash inflow from operations was NT$18.84 billion. In 4Q14, CAPEX spending was NT$16.21 billion, including NT$16.08 billion from the foundry segment, resulting in free cash inflow of NT$2.63 billion. Cash inflow from financing was NT$429 million, mainly due to the increased bank loan of NT$4.11 billion with a bond redemption of NT$3.83 billion. Total cash inflow in 4Q14 was NT$2.96 billion. Over the next 12 months, the company expects to repay NT$3.77 billion in bank loans.
| Cash Flow Summary |
||
| (Amount: NT$ million) |
For the 3-Month Dec. 31, 2014 |
For the 3-Month Sep. 30, 2014 |
| Cash Flow from Operating Activities |
18,836 |
12,039 |
| Net Income before tax |
5,375 |
2,992 |
| Depreciation & Amortization |
10,663 |
10,195 |
| Gain on disposal of investments |
(639) |
(580) |
| Impairment loss on non-financial assets |
- |
597 |
| Exchange loss on financial assets and liabilities |
255 |
130 |
| Changes in Working Capital |
2,941 |
(1,488) |
| Other |
241 |
193 |
| Cash Flow from Investing Activities |
(16,790) |
(12,684) |
| Capital Expenditures |
(16,208) |
(12,867) |
| Acquisition of available-for-sale financial assets |
(1,774) |
(52) |
| Acquisition of financial assets measured at cost |
258 |
(283) |
| Proceeds from disposal of available-for-sale financial assets |
1,112 |
568 |
| Acquisition of intangible assets |
(282) |
(268) |
| Other |
104 |
218 |
| Cash Flow from Financing Activities |
429 |
(6,659) |
| Bank Loans |
4,107 |
(627) |
| Redemption of Bonds |
(3,831) |
- |
| Cash Dividends and Cash paid from additional paid-in capital |
- |
(6,253) |
| Other |
153 |
221 |
| Effect of Exchange Rate |
993 |
414 |
| Net Cash Flow |
3,468 |
(6,890) |
| Disposal Group included in Non-Current Assets Held for Sale |
(511) |
- |
| Total Cash Flow |
2,957 |
(6,890) |
Cash and cash equivalents increased to NT$45.70 billion, mainly from the increase in free cash flow and cash inflow from financing activities. The days of inventory increased 4 days to 50 days due to an increase in WIP for 1Q15 shipments.
| Current Assets |
|||
| (Amount: NT$ billion) |
4Q14 |
3Q14 |
4Q13 |
| Cash and Cash Equivalents |
45.70 |
42.74 |
50.83 |
| Notes & Accounts Receivable |
22.37 |
21.93 |
16.82 |
| Days Sales Outstanding |
54 |
56 |
53 |
| Inventories, net |
15.24 |
14.31 |
13.99 |
| Days of Inventory |
50 |
46 |
51 |
| Total Current Assets |
96.86 |
91.80 |
88.80 |
Current liabilities increased to NT$48.11 billion. A merger between Motech & TOPCELL announced on Dec. 26, 2014 resulted in the reclassification of TOPCELL liabilities into other liabilities, amounting to NT$5.59 billion, attributing to the category's increase to NT$21.42 billion in 4Q14. Debt to equity ratio remained at 39%.
| Liabilities |
|||
| (Amount: NT$ billion) |
4Q14 |
3Q14 |
4Q13 |
| Total Current Liabilities |
48.11 |
45.44 |
48.20 |
| Notes & Accounts Payable |
6.17 |
6.75 |
7.41 |
| Short-Term Credit / Bonds |
10.03 |
15.26 |
21.19 |
| Payable on Equipment |
10.48 |
10.40 |
6.70 |
| Other |
21.43 |
13.03 |
12.90 |
| Long-Term Credit / Bonds |
33.40 |
31.98 |
28.42 |
| Total Liabilities |
88.24 |
84.43 |
83.46 |
| Debt to Equity |
39% |
39% |
39% |
Analysis of Revenue[2] for Foundry Segment
Revenue contribution from North America remained at 45% in 4Q14. Europe rose to 8%, partly due to higher demand from European communication customers.
| Revenue Breakdown by Region |
|||||
| Region |
4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
| North America |
45% |
45% |
43% |
45% |
47% |
| Asia Pacific |
42% |
44% |
46% |
45% |
41% |
| Europe |
8% |
6% |
5% |
7% |
8% |
| Japan |
5% |
5% |
6% |
3% |
4% |
28nm revenue continued to increase in 4Q14 strengthened by the demand from handsets and tablets, accounting for 7% of foundry revenue, while 40nm revenue represented 21% during 4Q14.
| Revenue Breakdown by Geometry |
|||||
| Geometry |
4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
| 28nm and below |
7% |
3% |
1% |
0% |
0% |
| 28nm<x<=40nm |
21% |
24% |
21% |
20% |
24% |
| 40nm<x<=65nm |
24% |
26% |
31% |
31% |
29% |
| 65nm<x<=90nm |
7% |
7% |
6% |
7% |
7% |
| 90nm<x<=0.13um |
14% |
14% |
13% |
14% |
14% |
| 0.13um<x<=0.18um |
12% |
12% |
13% |
12% |
12% |
| 0.18um<x<=0.35um |
12% |
11% |
12% |
12% |
11% |
| 0.5um and above |
3% |
3% |
3% |
4% |
3% |
4Q14 revenue from IDM customers increased to 10%.
| Revenue Breakdown by Customer Type |
|||||
| Customer Type |
4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
| Fabless |
90% |
91% |
90% |
92% |
89% |
| IDM |
10% |
9% |
10% |
8% |
11% |
Communication and consumer segments remained at 54% and 28% of revenue in 4Q14, respectively.
| Revenue Breakdown by Application (1) |
|||||
| Application |
4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
| Computer |
14% |
15% |
18% |
18% |
15% |
| Communication |
54% |
54% |
49% |
46% |
49% |
| Consumer |
28% |
28% |
29% |
31% |
31% |
| Others |
4% |
3% |
4% |
5% |
5% |
| (1) |
Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. |
Blended ASP Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained flat in 4Q14
(To view ASP trend, visit http://www.umc.com/english/investors/4Q14_ASP_trend.asp)
Shipment and Utilization Rate[3] for Foundry Segment
Wafer shipments dropped 2% to 1,431K in 4Q14 as capacity declined 0.6% QoQ to 1,577K, resulting in an overall utilization rate of 93% for the quarter.
| Wafer Shipments |
|||||
| 4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
|
| Wafer Shipments |
1,431 |
1,462 |
1,426 |
1,258 |
1,236 |
| Quarterly Capacity Utilization Rate |
|||||
| 4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
|
| Utilization Rate |
93% |
93% |
90% |
81% |
79% |
| Total Capacity |
1,577 |
1,586 |
1,597 |
1,563 |
1,560 |
Capacity[4] for Foundry Segment
Overall capacity during the fourth quarter was 1,577K 8-inch equivalent wafers. 28nm capacity expansion at Fab12A increased quarterly capacity from 174K in 3Q14 to 180K in 4Q14. The capacity profile upgrade at Fab12i decreased its 12" wafer capacity by 10K, reducing the fab's 4Q14 capacity to 135K. First quarter's estimated capacity will be approximately 1,583K 8-inch equivalent wafers, primarily from continuous 28nm capacity deployment at Fab12A, 40nm capacity expansion at Fab12i and manufacturing expansion at Fab8N.
| Annual Capacity in |
Quarterly Capacity in |
|||||||||||
| FAB |
Geometry |
2014 |
2013 |
2012 |
2011 |
FAB |
1Q15E |
4Q14 |
3Q14 |
2Q14 |
||
| Fab6A |
6" |
3.5 - 0.45 |
448 |
448 |
481 |
538 |
Fab6A |
111 |
113 |
113 |
113 |
|
| Fab8A |
8" |
0.5 - 0.25 |
813 |
813 |
815 |
813 |
Fab8A |
201 |
204 |
204 |
204 |
|
| Fab8C |
8" |
0.35 - 0.11 |
347 |
347 |
360 |
359 |
Fab8C |
86 |
87 |
87 |
87 |
|
| Fab8D |
8" |
0.13 - 0.09 |
358 |
382 |
371 |
364 |
Fab8D |
84 |
86 |
86 |
93 |
|
| Fab8E |
8" |
0.5 - 0.18 |
418 |
418 |
449 |
469 |
Fab8E |
103 |
105 |
105 |
105 |
|
| Fab8F |
8" |
0.18 - 0.11 |
388 |
388 |
389 |
388 |
Fab8F |
96 |
98 |
98 |
98 |
|
| Fab8S |
8" |
0.18 - 0.11 |
335 |
335 |
348 |
307 |
Fab8S |
83 |
84 |
84 |
84 |
|
| Fab8N |
8" |
0.5 - 0.13 |
547 |
469 |
- |
- |
Fab8N |
144 |
140 |
140 |
140 |
|
| Fab12A |
12" |
0.18 - 0.028 |
700 |
651 |
579 |
501 |
Fab12A |
183 |
180 |
174 |
174 |
|
| Fab12i |
12" |
0.13 - 0.040 |
573 |
550 |
537 |
530 |
Fab12i |
139 |
135 |
145 |
147 |
|
| Total(1) |
6,323 |
6,107 |
5,514 |
5,322 |
Total |
1,583 |
1,577 |
1,586 |
1,597 |
|||
| YoY Growth Rate |
4% |
11% |
4% |
11% |
||||||||
| 2011~2012 figures account for UMC parent company only. |
||||||||||||
| (1) |
One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers. |
CAPEX for Foundry Segment
Total capital expenditure for 2014 was US$1.4 billion, 87% of which accounted for capacity expansion at 300mm facilities. Foundry capital expenditure budget for 2015 is expected to be approximately US$1.8 billion, with 89% of the amount used for 12" advanced capacity expansion.
| Capital Expenditure by Year - in US$ billion |
|||||
| Year |
2014 |
2013 |
2012 |
2011 |
2010 |
| CAPEX |
$ 1.4 |
$ 1.1 |
$ 1.7 |
$ 1.6 |
$ 1.8 |
| 2010~2012 figures account for UMC parent company only. |
|||||
| 2015 CAPEX Plan |
|||||
| 8" |
12" |
Total |
|||
| 11% |
89% |
US$1.8 billion |
|||
Brief Summary of Full Year 2014 Consolidated Results
- Consolidated revenue increased 13.1% YoY to NT$140.01 billion, from NT$123.81 billion in 2013. Foundry segment revenue in 2014 increased 10.8% YoY to NT$129.53 billion, from NT$116.88 billion in 2013. New Business segment revenue in 2014 was NT$10.57 billion, up 50.1% YoY, from NT$7.04 billion in 2013.
- Gross margin was 22.8%, compared to 19.0% in 2013.
- Operating margin was 7.2%, compared to 3.3% in 2013.
- Net income attributable to the stockholders of the parent was NT$12.14 billion for 2014.
- EPS was NT$0.97, or EPADS was US$0.153 for 2014.
- The overall percentage of revenue from 28nm was 3% in 2014, while revenue from 40nm increased to 21%.
| Operating Results |
|||
| (Amount: NT$ million) |
2014 |
2013 |
YoY % |
| Net Operating Revenues |
140,012 |
123,812 |
13.1 |
| Gross Profit |
31,853 |
23,563 |
35.2 |
| Operating Expenses |
(21,238) |
(19,406) |
9.4 |
| Net Other Operating Income & Expenses |
(539) |
(125) |
331.2 |
| Operating Income |
10,076 |
4,032 |
149.9 |
| Net Non-Operating Income & Expenses |
3,437 |
10,330 |
(66.7) |
| Income Tax Expenses |
(2,033) |
(2,257) |
(9.9) |
| Net Income Attributable to Stockholders of the Parent |
12,141 |
12,630 |
(3.9) |
| EPS (NT$ per share) |
0.97 |
1.01 |
|
| (US$ per ADS) |
0.153 |
0.160 |
|
Annual Sales Breakdown in Revenue for Foundry Segment
| Region |
2014 |
2013 |
| North America |
45% |
45% |
| Asia Pacific |
44% |
43% |
| Europe |
6% |
8% |
| Japan |
5% |
4% |
| Technology |
2014 |
2013 |
| 28nm and below |
3% |
0% |
| 28nm<x<=40nm |
21% |
20% |
| 40nm<x<=65nm |
28% |
32% |
| 65nm<x<=90nm |
7% |
6% |
| 90nm<x<=0.13um |
14% |
15% |
| 0.13um<x<=0.18um |
13% |
12% |
| 0.18um<x<=0.35um |
11% |
11% |
| 0.5um and above |
3% |
4% |
| Customer Type |
2014 |
2013 |
| Fabless |
91% |
89% |
| IDM |
9% |
11% |
| Application |
2014 |
2013 |
| Computer |
16% |
17% |
| Communication |
51% |
50% |
| Consumer |
29% |
29% |
| Others |
4% |
4% |
First Quarter of 2015 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Foundry Segment Wafer Shipments: To increase by approximately 2-3%
- Foundry Segment ASP in US$: To increase by approximately 3%
- Foundry Segment Profitability: Gross profit margin will be in the mid-20 percentage range
- Foundry Segment Capacity Utilization: Approximately 90%
- 2015 CAPEX for Foundry Segment: US$1.8bn
- Guidance to New Business Segment: Revenue to be approximately NT$2bn and operating loss to be approximately NT$170mn
Recent Developments / Announcements
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, January 28, 2015
Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free: +1-800-871-3110, +1-888-700-7397
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC
A live webcast and replay of the 4Q14 results announcement will be available at www.umc.com under the "Investors / Events" section.
[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Dec 31, 2014, the three-month period ending Sep 30, 2014, and the equivalent three-month period that ended Dec 31, 2013. For all 4Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2014 exchange rate of NT$ 31.62 per U.S. Dollar.
[2] Revenue in this section represents wafer sales
[3] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
[4] Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16900
[email protected] / [email protected]
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
||||||||
| Consolidated Condensed Balance Sheet |
||||||||
| As of December 31, 2014 |
||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
||||||||
| December 31, 2014 |
||||||||
| US$ |
NT$ |
% |
||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
1,445 |
45,701 |
14.6% |
|||||
| Financial assets at fair value through profit or loss, current |
23 |
740 |
0.2% |
|||||
| Notes & Accounts receivable, net |
707 |
22,369 |
7.1% |
|||||
| Inventories, net |
482 |
15,242 |
4.9% |
|||||
| Non-current assets held for sale |
221 |
6,979 |
2.2% |
|||||
| Other current assets |
185 |
5,832 |
1.9% |
|||||
| Total current assets |
3,063 |
96,863 |
30.9% |
|||||
| Non-current assets |
||||||||
| Funds and investments |
1,185 |
37,478 |
12.0% |
|||||
| Property, plant and equipment |
5,272 |
166,690 |
53.2% |
|||||
| Other non-current assets |
387 |
12,215 |
3.9% |
|||||
| Total non-current assets |
6,844 |
216,383 |
69.1% |
|||||
| Total assets |
9,907 |
313,246 |
100.0% |
|||||
| Liabilities |
||||||||
| Current liabilities |
||||||||
| Short-term loans |
198 |
6,251 |
2.0% |
|||||
| Financial liabilities at fair value through profit or loss, current |
1 |
42 |
0.0% |
|||||
| Payables |
1,000 |
31,608 |
10.1% |
|||||
| Liabilities directly relating to non-current assets held for sale |
177 |
5,595 |
1.8% |
|||||
| Current portion of long-term liabilities |
119 |
3,775 |
1.2% |
|||||
| Other current liabilities |
27 |
835 |
0.3% |
|||||
| Total current liabilities |
1,522 |
48,106 |
15.4% |
|||||
| Non-current liabilities |
||||||||
| Bonds payable |
790 |
24,978 |
8.0% |
|||||
| Long-term loans |
266 |
8,423 |
2.7% |
|||||
| Other non-current liabilities |
213 |
6,730 |
2.1% |
|||||
| Total non-current liabilities |
1,269 |
40,131 |
12.8% |
|||||
| Total liabilities |
2,791 |
88,237 |
28.2% |
|||||
| Equity |
||||||||
| Equity attributable to the parent company |
||||||||
| Capital |
4,026 |
127,303 |
40.6% |
|||||
| Additional paid-in capital |
1,248 |
39,448 |
12.6% |
|||||
| Retained earnings, unrealized gain or loss on available-for-sale |
1,793 |
56,712 |
18.1% |
|||||
| Treasury stock |
(73) |
(2,304) |
(0.7%) |
|||||
| Total equity attributable to the parent company |
6,994 |
221,159 |
70.6% |
|||||
| Non-controlling interests |
122 |
3,850 |
1.2% |
|||||
| Total equity |
7,116 |
225,009 |
71.8% |
|||||
| Total liabilities and equity |
9,907 |
313,246 |
100.0% |
|||||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar. |
||||||||
| All figures are prepared in accordance with TIFRSs. |
||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||||||||
| Except Per Share and Per ADS Data |
|||||||||||||||||||
| Year over Year Comparison |
Quarter over Quarter Comparison |
||||||||||||||||||
| Three-Month Period Ended |
Three-Month Period Ended |
||||||||||||||||||
| December 31, 2014 |
December 31, 2013 |
% |
December 31, 2014 |
September 30, 2014 |
% |
||||||||||||||
| US$ |
NT$ |
US$ |
NT$ |
Chg. |
US$ |
NT$ |
US$ |
NT$ |
Chg. |
||||||||||
| Net operating revenues |
1,178 |
37,235 |
972 |
30,719 |
21.2% |
1,178 |
37,235 |
1,114 |
35,214 |
5.7% |
|||||||||
| Operating costs |
(856) |
(27,049) |
(796) |
(25,162) |
7.5% |
(856) |
(27,049) |
(875) |
(27,655) |
(2.2%) |
|||||||||
| Gross profit |
322 |
10,186 |
176 |
5,557 |
83.3% |
322 |
10,186 |
239 |
7,559 |
34.8% |
|||||||||
| 27.4% |
27.4% |
18.1% |
18.1% |
27.4% |
27.4% |
21.5% |
21.5% |
||||||||||||
| Operating expenses |
|||||||||||||||||||
| - Sales and marketing expenses |
(35) |
(1,124) |
(29) |
(906) |
24.1% |
(35) |
(1,124) |
(30) |
(957) |
17.5% |
|||||||||
| - General and administrative expenses |
(32) |
(1,013) |
(26) |
(826) |
22.6% |
(32) |
(1,013) |
(27) |
(845) |
19.9% |
|||||||||
| - Research and development expenses |
(112) |
(3,535) |
(113) |
(3,585) |
(1.4%) |
(112) |
(3,535) |
(110) |
(3,468) |
1.9% |
|||||||||
| Subtotal |
(179) |
(5,672) |
(168) |
(5,317) |
6.7% |
(179) |
(5,672) |
(167) |
(5,270) |
7.6% |
|||||||||
| Net other operating income and expenses |
0 |
18 |
(2) |
(46) |
- |
0 |
18 |
(19) |
(602) |
- |
|||||||||
| Operating income |
143 |
4,532 |
6 |
194 |
100.0% |
143 |
4,532 |
53 |
1,687 |
100.0% |
|||||||||
| 12.2% |
12.2% |
0.6% |
0.6% |
12.2% |
12.2% |
4.8% |
4.8% |
||||||||||||
| Net non-operating income and expenses |
27 |
843 |
28 |
889 |
(5.2%) |
27 |
843 |
42 |
1,305 |
(35.4%) |
|||||||||
| Income from continuing operations before |
170 |
5,375 |
34 |
1,083 |
100.0% |
170 |
5,375 |
95 |
2,992 |
79.6% |
|||||||||
| 14.4% |
14.4% |
3.5% |
3.5% |
14.4% |
14.4% |
8.5% |
8.5% |
||||||||||||
| Income tax expense |
(29) |
(911) |
(15) |
(495) |
84.0% |
(29) |
(911) |
(13) |
(413) |
100.0% |
|||||||||
| Net income |
141 |
4,464 |
19 |
588 |
100.0% |
141 |
4,464 |
82 |
2,579 |
73.1% |
|||||||||
| 12.0% |
12.0% |
1.9% |
1.9% |
12.0% |
12.0% |
7.3% |
7.3% |
||||||||||||
| Other comprehensive income (loss) |
127 |
4,006 |
16 |
510 |
100.0% |
127 |
4,006 |
(48) |
(1,501) |
- |
|||||||||
| Total comprehensive income |
268 |
8,470 |
35 |
1,098 |
100.0% |
268 |
8,470 |
34 |
1,078 |
100.0% |
|||||||||
| Net income attributable to: |
|||||||||||||||||||
| Stockholders of the parent |
144 |
4,563 |
24 |
749 |
100.0% |
144 |
4,563 |
92 |
2,916 |
56.5% |
|||||||||
| Non-controlling interests |
(3) |
(99) |
(5) |
(161) |
(38.5%) |
(3) |
(99) |
(10) |
(337) |
(70.6%) |
|||||||||
| Comprehensive income attributable to: |
|||||||||||||||||||
| Stockholders of the parent |
268 |
8,467 |
39 |
1,239 |
100.0% |
268 |
8,467 |
43 |
1,372 |
100.0% |
|||||||||
| Non-controlling interests |
0 |
3 |
(4) |
(141) |
- |
0 |
3 |
(9) |
(294) |
- |
|||||||||
| Earnings per share-basic |
0.011 |
0.36 |
0.002 |
0.06 |
0.011 |
0.36 |
0.007 |
0.23 |
|||||||||||
| Earnings per ADS (2) |
0.057 |
1.80 |
0.009 |
0.30 |
0.057 |
1.80 |
0.036 |
1.15 |
|||||||||||
| Weighted average number of shares |
|||||||||||||||||||
| outstanding (in millions) |
12,510 |
12,476 |
12,510 |
12,501 |
|||||||||||||||
| Notes: |
|||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar. |
|||||||||||||||||||
| All figures are prepared in accordance with TIFRSs. |
|||||||||||||||||||
| (2) 1 ADS equals 5 common shares. |
|||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||
| Consolidated Condensed Statements of Comprehensive Income |
|||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||
| Except Per Share and Per ADS Data |
|||||||||||
| For the Three-Month Period Ended |
For the Twelve-Month Period Ended |
||||||||||
| December 31, 2014 |
December 31, 2014 |
||||||||||
| US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||
| Net operating revenues |
1,178 |
37,235 |
100.0% |
4,428 |
140,012 |
100.0% |
|||||
| Operating costs |
(856) |
(27,049) |
(72.6%) |
(3,421) |
(108,159) |
(77.2%) |
|||||
| Gross profit |
322 |
10,186 |
27.4% |
1,007 |
31,853 |
22.8% |
|||||
| Operating expenses |
|||||||||||
| - Sales and marketing expenses |
(35) |
(1,124) |
(3.0%) |
(127) |
(4,012) |
(2.9%) |
|||||
| - General and administrative expenses |
(32) |
(1,013) |
(2.7%) |
(113) |
(3,562) |
(2.5%) |
|||||
| - Research and development expenses |
(112) |
(3,535) |
(9.5%) |
(432) |
(13,664) |
(9.8%) |
|||||
| Subtotal |
(179) |
(5,672) |
(15.2%) |
(672) |
(21,238) |
(15.2%) |
|||||
| Net other operating income and expenses |
0 |
18 |
0.0% |
(16) |
(539) |
(0.4%) |
|||||
| Operating income |
143 |
4,532 |
12.2% |
319 |
10,076 |
7.2% |
|||||
| Net non-operating income and expenses |
27 |
843 |
2.2% |
108 |
3,437 |
2.5% |
|||||
| Income from continuing operations before |
170 |
5,375 |
14.4% |
427 |
13,513 |
9.7% |
|||||
| Income tax expense |
(29) |
(911) |
(2.4%) |
(64) |
(2,033) |
(1.5%) |
|||||
| Net income |
141 |
4,464 |
12.0% |
363 |
11,480 |
8.2% |
|||||
| Other comprehensive income |
127 |
4,006 |
10.7% |
213 |
6,738 |
4.8% |
|||||
| Total comprehensive income |
268 |
8,470 |
22.7% |
576 |
18,218 |
13.0% |
|||||
| Net income attributable to: |
|||||||||||
| Stockholders of the parent |
144 |
4,563 |
12.3% |
384 |
12,141 |
8.7% |
|||||
| Non-controlling interests |
(3) |
(99) |
(0.3%) |
(21) |
(661) |
(0.5%) |
|||||
| Comprehensive income attributable to: |
|||||||||||
| Stockholders of the parent |
268 |
8,467 |
22.7% |
593 |
18,736 |
13.4% |
|||||
| Non-controlling interests |
0 |
3 |
0.0% |
(17) |
(518) |
(0.4%) |
|||||
| Earnings per share-basic |
0.011 |
0.36 |
0.031 |
0.97 |
|||||||
| Earnings per ADS (2) |
0.057 |
1.80 |
0.153 |
4.85 |
|||||||
| Weighted average number of shares |
12,510 |
12,495 |
|||||||||
| Notes: |
|||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar. |
|||||||||||
| All figures are prepared in accordance with TIFRSs. |
|||||||||||
| (2) 1 ADS equals 5 common shares. |
|||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||
| Consolidated Condensed Statement of Cash Flows |
|||
| For The Twelve-Month Period Ended December 31, 2014 |
|||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||
| USD |
NTD |
||
| Cash flows from operating activities : |
|||
| Net income before tax |
427 |
13,513 |
|
| Depreciation & Amortization |
1,286 |
40,657 |
|
| Impairment loss on financial assets |
10 |
305 |
|
| Impairment loss on non-financial assets |
19 |
597 |
|
| Gain on disposal of investments |
(75) |
(2,378) |
|
| Changes in notes & accounts receivable |
(190) |
(6,013) |
|
| Changes in inventory |
(60) |
(1,894) |
|
| Changes in payables |
42 |
1,322 |
|
| Changes in assets, liabilities and others |
(43) |
(1,321) |
|
| Net cash provided by operating activities |
1,416 |
44,788 |
|
| Cash flows from investing activities : |
|||
| Acquisition of available-for-sale financial assets |
(61) |
(1,942) |
|
| Proceeds from disposal of available-for-sale financial assets |
105 |
3,311 |
|
| Acquisition of financial assets measured at cost |
(15) |
(489) |
|
| Proceeds from disposal of financial assets measured at cost |
21 |
677 |
|
| Acquisition of investments accounted for under the equity method |
(6) |
(182) |
|
| Acquisition of property, plant and equipment |
(1,367) |
(43,237) |
|
| Proceeds from disposal of property, plant and equipment |
11 |
338 |
|
| Acquisition of intangible assets |
(36) |
(1,153) |
|
| Others |
1 |
71 |
|
| Net cash used in investing activities |
(1,347) |
(42,606) |
|
| Cash flows from financing activities : |
|||
| Increase in short-term loans |
131 |
4,135 |
|
| Proceeds from bonds issued |
158 |
5,000 |
|
| Redemption of bonds |
(447) |
(14,137) |
|
| Proceeds from long-term loans |
199 |
6,284 |
|
| Repayments of long-term loans |
(122) |
(3,859) |
|
| Cash dividends and cash paid from additional paid-in capital |
(198) |
(6,253) |
|
| Others |
18 |
572 |
|
| Net cash used in financing activities |
(261) |
(8,258) |
|
| Effect of exchange rate changes on cash and cash equivalents |
45 |
1,457 |
|
| Net decrease in cash and cash equivalents |
(147) |
(4,619) |
|
| Cash and cash equivalents at beginning of period |
1,608 |
50,831 |
|
| Cash and cash equivalents at end of period |
1,461 |
46,212 |
|
| Reconciliation of the balances of cash and cash equivalents at end of period : |
|||
| Cash and cash equivalents balances on the consolidated balance sheets |
1,445 |
45,701 |
|
| Cash and cash equivalents of disposal group included in non-current assets held for sale |
16 |
511 |
|
| Cash and cash equivalents at end of period |
1,461 |
46,212 |
|
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar. |
|||
| All figures are prepared in accordance with TIFRSs. |
|||
SOURCE United Microelectronics Corporation
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