UMC Reports Second Quarter 2015 Results
2Q results meet guidance; inventory correction to continue through 2H15
TAIPEI, Taiwan, July 29, 2015 /PRNewswire/ --
Second Quarter 2015 Overview[1]:
- Revenue: NT$38.01 billion (US$1.23 billion)
- Gross margin: 22.9%; operating margin: 10.2%
- Foundry revenue from advanced nodes: 11% from 28nm, 22% from 40nm
- Foundry capacity utilization rate: 94%
- Net income attributable to the stockholders of the parent: NT$4.60 billion (US$149 million)
- Earnings per share: NT$0.37; earnings per ADS: US$0.060
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2015.
Revenue was NT$38.01 billion, with gross margin at 22.9% and operating margin at 10.2%. Net income attributable to the stockholders of the parent was NT$4.60 billion, with earnings per ordinary share of NT$0.37.
Po-Wen Yen, CEO of UMC, said "In the second quarter of 2015, our foundry business performed within expectations, posting NT$36.52 billion in revenues and gross margin of 25.1%. Wafer shipments reached an all-time high of 1.54 million 8-inch equivalent wafers, leading to an overall capacity utilization rate of 94%. Our 28nm shipments continued to increase as 2Q15 contribution reached 11% of sales, primarily from the communication sector. The New Business segment recorded NT$1.83 billion in revenue, with a net loss of NT$170 million. Topcell Solar Inc. officially merged into Motech Industries Inc. on June 1, 2015, resulting in UMC owning approximately 9% of Motech equity shares. As such, we will no longer consolidate its operating performance into UMC's financial statements."
CEO Yen continued, "Looking into 3Q, the limited end-market visibility and inventory correction we mentioned during our 1Q conference call is expected to continue. Current weakness in overall demand, partly due to the uncertainties in economic outlook, will prolong the inventory adjustment through the second half of 2015. However, we continue to enhance our foundry services, such as our recently announced 14nm FinFET IP collaborations with Synopsys and ARM to accelerate process verification on our 14nm platform. UMC also announced the availability of a new 55nm ultra-low-power process from ARM, aimed to maximize battery life for IoT applications. For Through-Silicon-Via (TSV), we recently ramped to volume production our TSV and silicon interposer process used on AMD's flagship Radeon GPU. These engineering efforts will strengthen our advanced and mature node offering and enhance UMC's competitive edge in the foundry industry. In addition, shareholders have approved a dividend payout of NT$0.55 per share for fiscal 2014, balancing UMC's commitment to shareholders while maximizing the opportunities towards business growth. UMC strives to provide enhanced corporate profitability by delivering the highest quality manufacturing services in order to ensure long term shareholder value."
Summary of Operating Results
| Operating Results |
|||||
| (Amount: NT$ million) |
2Q15 |
1Q15 |
QoQ % |
2Q14 |
YoY % |
| Net Operating Revenues |
38,012 |
37,650 |
1.0 |
35,869 |
6.0 |
| Gross Profit |
8,723 |
9,155 |
(4.7) |
8,207 |
6.3 |
| Operating Expenses |
(4,864) |
(4,914) |
(1.0) |
(5,280) |
(7.9) |
| Net Other Operating Income and Expenses |
17 |
(142) |
- |
(10) |
- |
| Operating Income |
3,876 |
4,099 |
(5.4) |
2,917 |
32.9 |
| Net Non-Operating Income and Expenses |
1,304 |
255 |
411.4 |
937 |
39.2 |
| Net Income Attributable to Stockholders of the Parent |
4,600 |
3,980 |
15.6 |
3,482 |
32.1 |
| EPS (NT$ per share) |
0.37 |
0.32 |
0.28 |
||
| (US$ per ADS) |
0.060 |
0.052 |
0.045 |
||
During 2Q15, higher wafers shipments led to NT$36.52 billion in revenue from the foundry segment. New Business recorded NT$1.83 billion in sales, resulting in a consolidated revenue of NT$38.01 billion, up 1.0% from 1Q15. Net income from the foundry business reached NT$4.67 billion, while New Business segment posted NT$170 million in net loss. On a consolidated basis, gross profit reached NT$8.72 billion, or 22.9% of revenue, while operating income was NT$3.88 billion or 10.2% of revenue. Net income attributable to the stockholders of the parent was NT$4.60 billion, compared to NT$3.98 billion in 1Q15.
Earnings per ordinary share for the quarter were NT$0.37. Earnings per ADS were US$0.060. The basic weighted average number of outstanding shares in 2Q15 was 12,572,497,200, compared with 12,526,260,458 shares in 1Q15 and 12,489,095,718 shares in 2Q14. The diluted weighted average number of outstanding shares was 13,222,544,584 in 2Q15, compared with 12,660,046,525 shares in 1Q15 and 12,607,860,758 shares in 2Q14. The fully diluted share count on June 30, 2015 was approximately 13,810,979,000. On June 30, 2015, UMC held 134 million treasury shares acquired from the 15th share buy-back program.
Detailed Financials Section
| COGS & Expenses |
|||||
| (Amount: NT$ million) |
2Q15 |
1Q15 |
QoQ % |
2Q14 |
YoY % |
| Net Operating Revenues |
38,012 |
37,650 |
1.0 |
35,869 |
6.0 |
| COGS |
(29,289) |
(28,495) |
2.8 |
(27,662) |
5.9 |
| Depreciation |
(9,404) |
(9,115) |
3.2 |
(8,662) |
8.6 |
| Other Mfg. Costs |
(19,885) |
(19,380) |
2.6 |
(19,000) |
4.7 |
| Gross Profit |
8,723 |
9,155 |
(4.7) |
8,207 |
6.3 |
| Gross Margin (%) |
22.9% |
24.3% |
22.9% |
||
| Operating Expenses |
(4,864) |
(4,914) |
(1.0) |
(5,280) |
(7.9) |
| G&A |
(919) |
(953) |
(3.6) |
(857) |
7.2 |
| Sales & Marketing |
(930) |
(1,045) |
(11.0) |
(1,097) |
(15.2) |
| R&D |
(3,015) |
(2,916) |
3.4 |
(3,326) |
(9.4) |
| Net Other Operating Income & Expenses |
17 |
(142) |
- |
(10) |
- |
| Operating Income |
3,876 |
4,099 |
(5.4) |
2,917 |
32.9 |
Foundry revenue grew 1.5% to NT$36.52 billion and New Business segment recorded NT$1.83 billion, leading to a consolidated revenue of NT$38.01 billion. Depreciation increased 3.2% from 1Q15 to NT$9.40 billion, mainly from 28nm capacity deployment. Other manufacturing costs was up 2.6% QoQ to NT$19.89 billion, mostly due to higher wafer shipments in 2Q15. Operating expenses stayed almost flat at NT$4.86 billion. Net operating income was NT$3.88 billion.
| Non-Operating Income and Expenses |
|||
| (Amount: NT$ million) |
2Q15 |
1Q15 |
2Q14 |
| Non-Operating Income and Expenses |
1,304 |
255 |
937 |
| Net Interest Income and Expenses |
(46) |
(27) |
(149) |
| Net Investment Gain and Loss |
(247) |
126 |
188 |
| Gain and Loss on Disposal of Investment |
1,319 |
190 |
792 |
| Exchange Gain and Loss |
11 |
(77) |
(4) |
| Other Gain and Loss |
267 |
43 |
110 |
Net non-operating income in 2Q15 was NT$1.30 billion, primarily from the gains recognized in the reclassification of available for sale financial assets into investments accounted for under the equity method and the merger of UMC's solar subsidiary Topcell into Motech.
Cash Flow Summary |
||
| (Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2015 |
For the 3-Month Period Ended Mar. 31, 2015 |
| Cash Flow from Operating Activities |
11,459 |
16,870 |
| Net income before tax |
5,180 |
4,354 |
| Depreciation & Amortization Bad debt reversal |
11,194 (173) |
10,748 (9) |
| Gain on disposal of investments |
(1,319) |
(190) |
| Impairment loss on financial assets |
416 |
63 |
| Exchange gain on financial assets and liabilities |
(204) |
(13) |
| Changes in working capital Income tax paid |
(2,066) (1,305) |
2,315 (366) |
| Other |
(264) |
(32) |
| Cash Flow from Investing Activities |
(14,757) |
(16,498) |
| Capital expenditures |
(12,034) |
(14,893) |
| Acquisition of available-for-sale financial assets Disposal of subsidiaries |
(665) (835) |
(1,897) - |
| Proceeds from disposal of non-current assets held for sale |
- |
642 |
| Changes in refundable deposits |
(1,286) |
(1) |
| Changes in other assets-others |
(54) |
(517) |
| Other |
117 |
168 |
| Cash Flow from Financing Activities |
13,824 |
8,155 |
| Bank loans |
(5,253) |
1,716 |
| Bonds Issued |
18,425 |
- |
| Increase in other financial liabilities |
- |
6,108 |
| Treasury stock sold to employees Other |
677 (25) |
- 331 |
| Effect of Exchange Rate |
(443) |
(776) |
| Net Cash Flow |
10,083 |
7,751 |
| Beginning balance Changes in non-current assets held for sale |
53,632 331 |
45,701 180 |
| Ending Balance |
64,046 |
53,632 |
Cash inflow from operations was NT$11.46 billion. In 2Q15, CAPEX spending was NT$12.03 billion, including NT$11.94 billion for the foundry segment, resulting in a free cash outflow of NT$575 million. Cash inflow from financing was NT$13.82 billion, primarily from NT$18.43 billion in the issuance of convertible bonds. Over the next 12 months, the company expects to repay NT$3.94 billion in bank loans.
| Current Assets |
|||
| (Amount: NT$ billion) |
2Q15 |
1Q15 |
2Q14 |
| Cash and Cash Equivalents |
64.05 |
53.63 |
49.63 |
| Notes & Accounts Receivable |
21.44 |
20.62 |
21.62 |
| Days Sales Outstanding |
50 |
52 |
52 |
| Inventories, net |
16.05 |
15.64 |
13.84 |
| Days of Inventory |
49 |
49 |
47 |
| Total Current Assets |
109.22 |
101.03 |
98.37 |
Cash and cash equivalents increased to NT$64.05 billion, mainly due to NT$18.43 billion from the issuance of convertible bonds. Days of sales outstanding decreased by 2 days to 50 days. Days of inventory remained unchanged at 49 days.
| Liabilities |
|||
| (Amount: NT$ billion) |
2Q15 |
1Q15 |
2Q14 |
| Total Current Liabilities |
43.49 |
44.44 |
49.68 |
| Notes & Accounts Payable |
6.47 |
6.38 |
6.85 |
| Short-Term Credit / Bonds |
5.33 |
10.85 |
15.75 |
| Payables on Equipment |
9.30 |
7.41 |
7.19 |
| Dividends payable |
6.94 |
- |
6.25 |
| Other |
15.45 |
19.80 |
13.64 |
| Long-Term Credit / Bonds |
50.75 |
34.89 |
31.92 |
| Long-Term Investment Liabilities |
5.98 |
6.03 |
- |
| Total Liabilities |
106.87 |
91.80 |
88.69 |
| Debt to Equity |
48% |
40% |
41% |
Current liabilities decreased to NT$43.49 billion, mainly from a NT$5.52 billion decrease in short term credit and a NT$6.94 billion increase from the accrual for 2014 dividends. Long-term credit and bond increased to NT$50.75 billion mainly due to the issuance of convertible bond, increasing debt to equity ratio to 48%.
Analysis of Revenue[2] for Foundry Segment
| Revenue Breakdown by Region |
|||||
| Region |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
2Q14 |
| North America |
46% |
47% |
45% |
45% |
43% |
| Asia Pacific |
42% |
40% |
42% |
44% |
46% |
| Europe |
6% |
7% |
8% |
6% |
5% |
| Japan |
6% |
6% |
5% |
5% |
6% |
Revenue contribution from Asia- Pacific increased to 42% in 2Q15, partly from higher consumer demand from Asian customers.
| Revenue Breakdown by Geometry |
|||||
| Geometry |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
2Q14 |
| 28nm and below |
11% |
9% |
7% |
3% |
1% |
| 28nm<x<=40nm |
22% |
24% |
21% |
24% |
21% |
| 40nm<x<=65nm |
21% |
23% |
24% |
26% |
31% |
| 65nm<x<=90nm |
6% |
5% |
7% |
7% |
6% |
| 90nm<x<=0.13um |
14% |
13% |
14% |
14% |
13% |
| 0.13um<x<=0.18um |
12% |
12% |
12% |
12% |
13% |
| 0.18um<x<=0.35um |
11% |
11% |
12% |
11% |
12% |
| 0.5um and above |
3% |
3% |
3% |
3% |
3% |
28nm business grew to 11% of revenue in 2Q15, while 40nm accounted for 22% of sales.
| Revenue Breakdown by Customer Type |
|||||
| Customer Type |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
2Q14 |
| Fabless |
89% |
90% |
90% |
91% |
90% |
| IDM |
11% |
10% |
10% |
9% |
10% |
Revenue from fabless customers decreased to 89% in 2Q15.
| Revenue Breakdown by Application (1) |
|||||
| Application |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
2Q14 |
| Computer |
12% |
13% |
14% |
15% |
18% |
| Communication |
55% |
56% |
54% |
54% |
49% |
| Consumer |
28% |
26% |
28% |
28% |
29% |
| Others |
5% |
5% |
4% |
3% |
4% |
The consumer segment showed the strongest sequential growth, accounting for 28% of sales in 2Q15, while communication revenue contribution decreased by 1% to 55%.
(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 Trend for Foundry Segment
Blended average selling price (ASP) was flat in 2Q15.
(To view ASP trend, visit http://www.umc.com/english/investors/2Q15_ASP_trend.asp )
Shipment and Utilization Rate[3] for Foundry Segment
| Wafer Shipments |
|||||
| 2Q15 |
1Q15 |
4Q14 |
3Q14 |
2Q14 |
|
| Wafer Shipments |
1,536 |
1,481 |
1,431 |
1,462 |
1,426 |
| Quarterly Capacity Utilization Rate |
|||||
| 2Q15 |
1Q15 |
4Q14 |
3Q14 |
2Q14 |
|
| Utilization Rate |
94% |
93% |
93% |
93% |
90% |
| Total Capacity |
1,659 |
1,583 |
1,577 |
1,586 |
1,597 |
Capacity[4]for Foundry Segment
Wafer shipments increased 3.7% quarterly to 1,536K in 2Q15. Quarterly capacity grew to 1,659K, resulting in an overall utilization rate of 94% for the quarter.
Capacity[4] for Foundry Segment
Overall capacity in the second quarter was 1,659K 8-inch equivalent wafers. Deployment of 28nm capacity at Fab12A increased quarterly capacity from 183K in 1Q15 to 198K in 2Q15. Capacity expansion for 40nm at Fab12i continued, bringing the quarterly capacity from 139K in 1Q15 to 144K in 2Q15. Projected capacity during the third quarter will grow by 1.6% to 1,685K 8-inch equivalent wafers due to ongoing 28nm capacity deployment at Fab12A and continuous 8" expansion at Fab8N.
| Annual Capacity in thousands of wafers |
Quarterly Capacity in thousands of wafers |
|||||||||||
| FAB |
Geometry |
2014 |
2013 |
2012 |
2011 |
FAB |
3Q15E |
2Q15 |
1Q15 |
4Q14 |
||
| Fab6A |
6" |
3.5 - 0.45 |
448 |
448 |
481 |
538 |
WTK* |
99 |
113 |
- |
- |
|
| Fab8A |
8" |
0.5 - 0.25 |
813 |
813 |
815 |
813 |
Fab6A |
- |
- |
111 |
113 |
|
| Fab8C |
8" |
0.35 - 0.11 |
347 |
347 |
360 |
359 |
Fab8A |
204 |
204 |
201 |
204 |
|
| Fab8D |
8" |
0.13 - 0.09 |
358 |
382 |
371 |
364 |
Fab8C |
87 |
87 |
86 |
87 |
|
| Fab8E |
8" |
0.5 - 0.18 |
418 |
418 |
449 |
469 |
Fab8D |
86 |
86 |
84 |
86 |
|
| Fab8F |
8" |
0.18 - 0.11 |
388 |
388 |
389 |
388 |
Fab8E |
105 |
105 |
103 |
105 |
|
| Fab8S |
8" |
0.18 - 0.11 |
335 |
335 |
348 |
307 |
Fab8F |
98 |
98 |
96 |
98 |
|
| Fab8N |
8" |
0.5 - 0.13 |
547 |
469 |
- |
- |
Fab8S |
84 |
84 |
83 |
84 |
|
| Fab12A |
12" |
0.18 - 0.028 |
700 |
651 |
579 |
501 |
Fab8N |
178 |
162 |
144 |
140 |
|
| Fab12i |
12" |
0.13 - 0.040 |
573 |
550 |
537 |
530 |
Fab12A |
206 |
198 |
183 |
180 |
|
| Total(1) |
6,323 |
6,107 |
5,514 |
5,322 |
Fab12i |
144 |
144 |
139 |
135 |
|||
| YoY Growth Rate |
4% |
11% |
4% |
11% |
Total |
1,685 |
1,659 |
1,583 |
1,577 |
|||
| 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. |
||||||||||||
| *UMC sold part of plants and equipment to WTK; WTK figures represent 6-inch CMOS capacity. |
||||||||||||
CAPEX for Foundry Segment
| 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 |
| 13% |
87% |
US$1.8 billion |
In 2Q15, CAPEX spending was US$385 million. First half 2015 capital expenditures totaled US$856 million. 2015 CAPEX is expected to be approximately US$1.8 billion, with 87% of the amount used for 12" advanced capacity expansion.
Third Quarter of 2015 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Foundry Segment Wafer Shipments: To decrease by less than 5%
- Foundry Segment ASP in US$: To decrease by approximately 3%
- Foundry Segment Profitability: Gross profit margin will be in the mid-teens % range
- Foundry Segment Capacity Utilization: Approximately high 80% range
- 2015 CAPEX for Foundry Segment: US$1.8bn
Recent Developments / Announcements
| Jul. 20, 2015 |
UMC Enters Volume Production for TSV Process on AMD's High-Performance GPU |
| Jun. 22, 2015 |
|
| Jun. 22, 2015 |
UMC Collaborates with ARM to Validate UMC 14nm FinFET Process |
| Jun. 9, 2015 |
UMC Shareholders Elect 13th Term of Directors at Annual Shareholders Meeting - The consolidated revenue for 2014 was NT$140,012 million and net income attributable to the shareholder of the parent was NT$12,141 million, with earnings per share of NT$0.97 |
| May 26, 2015 |
UMC Unveils UMC AutoSM Platform to Enable Automotive IC Designs |
| May 18, 2015 |
ARM and UMC Target 55nm ULP IP Solution for Energy-Efficient Applications |
| Apr. 29, 2015 |
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 29, 2015
| Time: |
5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 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 2Q15 results announcement will be available at www.umc.com under the "Investors / Events" section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications spanning every major sector of the electronics industry. UMC's robust foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include volume production 28nm gate-last High-K/Metal Gate technology, ultra-low power platform processes specifically engineered for Internet of Things (IoT) applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for production of ICs found in cars. UMC's 10 wafer fabs are strategically located throughout Asia and are able to produce over 500,000 wafers per month. The company employs more than 17,000 people worldwide, with 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]
[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 Jun 30, 2015, the three-month period ending Mar 31, 2015, and the equivalent three-month period that ended Jun 30, 2014. For all 2Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2015 exchange rate of NT$ 30.85 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.
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||
| Consolidated Condensed Balance Sheet |
|||||||||
| As of June 30, 2015 |
|||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||
| June 30, 2015 |
|||||||||
| US$ |
NT$ |
% |
|||||||
| Assets |
|||||||||
| Current assets |
|||||||||
| Cash and cash equivalents |
2,076 |
64,046 |
19.3% |
||||||
| Financial assets at fair value through profit or loss, current |
27 |
825 |
0.2% |
||||||
| Notes & Accounts receivable, net |
695 |
21,435 |
6.5% |
||||||
| Inventories, net |
520 |
16,045 |
4.8% |
||||||
| Other current assets |
223 |
6,870 |
2.2% |
||||||
| Total current assets |
3,541 |
109,221 |
33.0% |
||||||
| Non-current assets |
|||||||||
| Funds and investments |
1,247 |
38,475 |
11.6% |
||||||
| Property, plant and equipment |
5,444 |
167,960 |
50.7% |
||||||
| Other non-current assets |
506 |
15,600 |
4.7% |
||||||
| Total non-current assets |
7,197 |
222,035 |
67.0% |
||||||
| Total assets |
10,738 |
331,256 |
100.0% |
||||||
| Liabilities |
|||||||||
| Current liabilities |
|||||||||
| Short-term loans |
45 |
1,397 |
0.4% |
||||||
| Financial liabilities at fair value through profit or loss, current |
0 |
7 |
0.0% |
||||||
| Payables |
986 |
30,404 |
9.2% |
||||||
| Dividends payable |
225 |
6,939 |
2.1% |
||||||
| Current portion of long-term liabilities |
128 |
3,937 |
1.2% |
||||||
| Other current liabilities |
25 |
801 |
0.2% |
||||||
| Total current liabilities |
1,409 |
43,485 |
13.1% |
||||||
| Non-current liabilities |
|||||||||
| Bonds payable |
1,344 |
41,467 |
12.5% |
||||||
| Long-term loans |
301 |
9,280 |
2.8% |
||||||
| Other non-current liabilities |
410 |
12,641 |
3.9% |
||||||
| Total non-current liabilities |
2,055 |
63,388 |
19.2% |
||||||
| Total liabilities |
3,464 |
106,873 |
32.3% |
||||||
| Equity |
|||||||||
| Equity attributable to the parent company |
|||||||||
| Capital |
4,135 |
127,581 |
38.5% |
||||||
| Additional paid-in capital |
1,343 |
41,411 |
12.5% |
||||||
| Retained earnings, unrealized gain or loss on available-for-sale |
1,728 |
53,310 |
16.1% |
||||||
| Treasury stock |
(53) |
(1,627) |
(0.5%) |
||||||
| Total equity attributable to the parent company |
7,153 |
220,675 |
66.6% |
||||||
| Non-controlling interests |
121 |
3,708 |
1.1% |
||||||
| Total equity |
7,274 |
224,383 |
67.7% |
||||||
| Total liabilities and equity |
10,738 |
331,256 |
100.0% |
||||||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar. |
|||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||||||||
| Except Per Share and Per ADS Data |
|||||||||||||||||||
| Year over Year Comparison |
Quarter over Quarter Comparison |
||||||||||||||||||
| Three-Month Period Ended |
Three-Month Period Ended |
||||||||||||||||||
| June 30, 2015 |
June 30, 2014 |
% |
June 30, 2015 |
March 31, 2015 |
% |
||||||||||||||
| US$ |
NT$ |
US$ |
NT$ |
Chg. |
US$ |
NT$ |
US$ |
NT$ |
Chg. |
||||||||||
| Net operating revenues |
1,232 |
38,012 |
1,163 |
35,869 |
6.0% |
1,232 |
38,012 |
1,220 |
37,650 |
1.0% |
|||||||||
| Operating costs |
(949) |
(29,289) |
(897) |
(27,662) |
5.9% |
(949) |
(29,289) |
(923) |
(28,495) |
2.8% |
|||||||||
| Gross profit |
283 |
8,723 |
266 |
8,207 |
6.3% |
283 |
8,723 |
297 |
9,155 |
(4.7%) |
|||||||||
| 22.9% |
22.9% |
22.9% |
22.9% |
22.9% |
22.9% |
24.3% |
24.3% |
||||||||||||
| Operating expenses |
|||||||||||||||||||
| - Sales and marketing expenses |
(30) |
(930) |
(35) |
(1,097) |
(15.2%) |
(30) |
(930) |
(34) |
(1,045) |
(11.0%) |
|||||||||
| - General and administrative expenses |
(30) |
(919) |
(28) |
(857) |
7.2% |
(30) |
(919) |
(31) |
(953) |
(3.6%) |
|||||||||
| - Research and development expenses |
(98) |
(3,015) |
(108) |
(3,326) |
(9.4%) |
(98) |
(3,015) |
(94) |
(2,916) |
3.4% |
|||||||||
| Subtotal |
(158) |
(4,864) |
(171) |
(5,280) |
(7.9%) |
(158) |
(4,864) |
(159) |
(4,914) |
(1.0%) |
|||||||||
| Net other operating income and expenses |
1 |
17 |
(0) |
(10) |
- |
1 |
17 |
(5) |
(142) |
- |
|||||||||
| Operating income |
126 |
3,876 |
95 |
2,917 |
32.9% |
126 |
3,876 |
133 |
4,099 |
(5.4%) |
|||||||||
| 10.2% |
10.2% |
8.1% |
8.1% |
10.2% |
10.2% |
10.9% |
10.9% |
||||||||||||
| Net non-operating income and expenses |
42 |
1,304 |
30 |
937 |
39.2% |
42 |
1,304 |
8 |
255 |
100.0% |
|||||||||
| Income from continuing operations before |
168 |
5,180 |
125 |
3,854 |
34.4% |
168 |
5,180 |
141 |
4,354 |
19.0% |
|||||||||
| 13.6% |
13.6% |
10.7% |
10.7% |
13.6% |
13.6% |
11.6% |
11.6% |
||||||||||||
| Income tax expense |
(21) |
(635) |
(17) |
(528) |
20.3% |
(21) |
(635) |
(14) |
(442) |
43.7% |
|||||||||
| Net income |
147 |
4,545 |
108 |
3,326 |
36.7% |
147 |
4,545 |
127 |
3,912 |
16.2% |
|||||||||
| 12.0% |
12.0% |
9.3% |
9.3% |
12.0% |
12.0% |
10.4% |
10.4% |
||||||||||||
| Other comprehensive income (loss) |
(162) |
(5,006) |
3 |
103 |
- |
(162) |
(5,006) |
(4) |
(107) |
100.0% |
|||||||||
| Total comprehensive income (loss) |
(15) |
(461) |
111 |
3,429 |
- |
(15) |
(461) |
123 |
3,805 |
- |
|||||||||
| Net income attributable to: |
|||||||||||||||||||
| Stockholders of the parent |
149 |
4,600 |
113 |
3,482 |
32.1% |
149 |
4,600 |
129 |
3,980 |
15.6% |
|||||||||
| Non-controlling interests |
(2) |
(55) |
(5) |
(156) |
(64.7%) |
(2) |
(55) |
(2) |
(68) |
(19.1%) |
|||||||||
| Comprehensive income (loss) attributable to: |
|||||||||||||||||||
| Stockholders of the parent |
(12) |
(369) |
118 |
3,636 |
- |
(12) |
(369) |
127 |
3,910 |
- |
|||||||||
| Non-controlling interests |
(3) |
(92) |
(7) |
(207) |
(55.6%) |
(3) |
(92) |
(4) |
(105) |
(12.4%) |
|||||||||
| Earnings per share-basic |
0.012 |
0.37 |
0.009 |
0.28 |
0.012 |
0.37 |
0.010 |
0.32 |
|||||||||||
| Earnings per ADS (2) |
0.060 |
1.85 |
0.045 |
1.40 |
0.060 |
1.85 |
0.052 |
1.60 |
|||||||||||
| Weighted average number of shares |
|||||||||||||||||||
| outstanding (in millions) |
12,572 |
12,489 |
12,572 |
12,526 |
|||||||||||||||
| Notes: |
|||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar. |
|||||||||||||||||||
| (2) 1 ADS equals 5 common shares. |
|||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||
| Consolidated Condensed Statements of Comprehensive Income |
|||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||
| Except Per Share and Per ADS Data |
|||||||||||
| For the Three-Month Period Ended |
For the Six-Month Period Ended |
||||||||||
| June 30, 2015 |
June 30, 2015 |
||||||||||
| US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||
| Net operating revenues |
1,232 |
38,012 |
100.0% |
2,453 |
75,661 |
100.0% |
|||||
| Operating costs |
(949) |
(29,289) |
(77.1%) |
(1,873) |
(57,782) |
(76.4%) |
|||||
| Gross profit |
283 |
8,723 |
22.9% |
580 |
17,879 |
23.6% |
|||||
| Operating expenses |
|||||||||||
| - Sales and marketing expenses |
(30) |
(930) |
(2.5%) |
(64) |
(1,974) |
(2.6%) |
|||||
| - General and administrative expenses |
(30) |
(919) |
(2.4%) |
(61) |
(1,872) |
(2.5%) |
|||||
| - Research and development expenses |
(98) |
(3,015) |
(7.9%) |
(192) |
(5,932) |
(7.8%) |
|||||
| Subtotal |
(158) |
(4,864) |
(12.8%) |
(317) |
(9,778) |
(12.9%) |
|||||
| Net other operating income and expenses |
1 |
17 |
0.1% |
(4) |
(126) |
(0.2%) |
|||||
| Operating income |
126 |
3,876 |
10.2% |
259 |
7,975 |
10.5% |
|||||
| Net non-operating income and expenses |
42 |
1,304 |
3.4% |
50 |
1,560 |
2.1% |
|||||
| Income from continuing operations before |
168 |
5,180 |
13.6% |
309 |
9,535 |
12.6% |
|||||
| Income tax expense |
(21) |
(635) |
(1.6%) |
(35) |
(1,077) |
(1.4%) |
|||||
| Net income |
147 |
4,545 |
12.0% |
274 |
8,458 |
11.2% |
|||||
| Other comprehensive loss |
(162) |
(5,006) |
(13.2%) |
(166) |
(5,114) |
(6.8%) |
|||||
| Total comprehensive income (loss) |
(15) |
(461) |
(1.2%) |
108 |
3,344 |
4.4% |
|||||
| Net income attributable to: |
|||||||||||
| Stockholders of the parent |
149 |
4,600 |
12.1% |
278 |
8,580 |
11.3% |
|||||
| Non-controlling interests |
(2) |
(55) |
(0.1%) |
(4) |
(122) |
(0.1%) |
|||||
| Comprehensive income (loss) attributable to: |
|||||||||||
| Stockholders of the parent |
(12) |
(369) |
(1.0%) |
115 |
3,541 |
4.7% |
|||||
| Non-controlling interests |
(3) |
(92) |
(0.2%) |
(7) |
(197) |
(0.3%) |
|||||
| Earnings per share-basic |
0.012 |
0.37 |
0.022 |
0.68 |
|||||||
| Earnings per ADS (2) |
0.060 |
1.85 |
0.110 |
3.40 |
|||||||
| Weighted average number of shares |
12,572 |
12,550 |
|||||||||
| Notes: |
|||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar. |
|||||||||||
| (2) 1 ADS equals 5 common shares. |
|||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
||||
| Consolidated Condensed Statement of Cash Flows |
||||
| For The Six-Month Period Ended June 30, 2015 |
||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
||||
| USD |
NTD |
|||
| Cash flows from operating activities : |
||||
| Net income before tax |
309 |
9,535 |
||
| Depreciation & Amortization |
711 |
21,942 |
||
| Impairment loss on financial assets |
16 |
479 |
||
| Impairment loss on non-financial assets |
7 |
226 |
||
| Gain on disposal of investments |
(49) |
(1,508) |
||
| Changes in assets, liabilities and others |
(22) |
(674) |
||
| Income tax paid |
(54) |
(1,671) |
||
| Net cash provided by operating activities |
918 |
28,329 |
||
| Cash flows from investing activities : |
||||
| Acquisition of available-for-sale financial assets |
(83) |
(2,562) |
||
| Proceeds from disposal of available-for-sale financial assets |
24 |
728 |
||
| Acquisition of subsidiaries (net of cash acquired) |
13 |
415 |
||
| Disposal of subsidiaries |
(27) |
(835) |
||
| Acquisition of property, plant and equipment |
(873) |
(26,927) |
||
| Proceeds from disposal of non-current assets held for sale |
21 |
642 |
||
| Acquisition of intangible assets |
(22) |
(693) |
||
| Increase in refundable deposits |
(42) |
(1,286) |
||
| Others |
(24) |
(737) |
||
| Net cash used in investing activities |
(1,013) |
(31,255) |
||
| Cash flows from financing activities : |
||||
| Decrease in short-term loans |
(126) |
(3,880) |
||
| Proceeds from bonds issued |
597 |
18,425 |
||
| Proceeds from long-term loans |
124 |
3,827 |
||
| Repayments of long-term loans |
(113) |
(3,484) |
||
| Exercise of employee stock options |
9 |
289 |
||
| Treasury stock sold to employees |
22 |
677 |
||
| Increase in other financial liabilities |
198 |
6,108 |
||
| Others |
1 |
17 |
||
| Net cash provided by financing activities |
712 |
21,979 |
||
| Effect of exchange rate changes on cash and cash equivalents |
(39) |
(1,219) |
||
| Net increase in cash and cash equivalents |
578 |
17,834 |
||
| Cash and cash equivalents at beginning of period |
1,498 |
46,212 |
||
| Cash and cash equivalents at end of period |
2,076 |
64,046 |
||
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar. |
||||
SOURCE United Microelectronics Corporation
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