28nm Moves to Mass Production with Increasing Momentum in 2H14
(PRNewswire) —Second Quarter 2014 Overview[1]:
- Revenue: NT$35.87 billion (US$1.20 billion)
- Gross margin: 22.9%; operating margin: 8.1%
- Foundry capacity utilization rate: 90%
- Net income attributable to the stockholders of the parent: NT$3.48 billion (US$117 million)
- Earnings per share: NT$0.28; earnings per ADS: US$0.047
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 2014.
Revenue was NT$35.87 billion, with gross margin at 22.9% and operating margin at 8.1%. Net income attributable to the stockholders of the parent was NT$3.48 billion, with earnings per ordinary share of NT$0.28.
Mr. Po-Wen Yen, CEO of UMC, said "In the second quarter of 2014, UMC recorded NT$32.57 billion in revenue from the foundry segment, with operating margin from foundry operations of 10.2%. Wafer shipments reached 1.426 million 8-inch equivalent wafers. Our 28nm business represented 1% of revenue, while 40nm accounted for 21%."
CEO Yen added, "Second quarter foundry revenue grew 13.4% sequentially, fueled by strong communication segment demand that lifted capacity utilization to 90%. Market conditions also reflected a turnaround, with rising demand for portable computing devices helping to drive our 28nm shipments. We project continued 28nm revenue contribution growth in 3Q14 as a result of the sustained demand for mobile and tablet computing. We are optimistic in the long term that our 28nm production ramp will strengthen our overall product mix and generate abundant opportunities for UMC to win additional foundry market share. For other technologies, we have strengthened the IP portfolio for our 55nm LP platform to address low power and wireless applications by offering Kilopass' Gusto and Cypress's SONOS embedded flash memories. These enhanced IP solutions will further diversify our manufacturing offerings to fulfill a broader range of specialty technology products on our proven and versatile 55LP platform. Designers in wearable and Internet of Things (IoT) applications have already realized product tape-outs using our 55LP technologies and IP."
CEO Yen continued, "We expect the semiconductor demand strength to continue into the third quarter of 2014. For 28nm momentum, our activities have increased, including IP verifications, customer tape outs on standalone products and product reliability qualifications. These 28nm customer collaborations will provide further traction heading into the second half of 2014. UMC will continue to broaden our customer base and penetrate additional high growth areas to expand customer adoption. We remain confident for the long term, as our sound business strategies, solid engineering execution and strong commitment to customer service will help ensure UMC's future business growth and deliver enhanced profitability to raise shareholder value."
[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, 2014, the three-month period ending Mar 31, 2014, and the equivalent three-month period that ended Jun 30, 2013. For all 2Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2014 exchange rate of NT$ 29.86 per U.S. Dollar.
Summary of Operating Results
|
Operating Results | |||||
|
(Amount: NT$ million) |
2Q14 |
1Q14 |
QoQ %
|
2Q13 |
YoY %
|
|
Net Operating Revenues |
35,869 |
31,694 |
13.2 |
31,905 |
12.4 |
|
Gross Profit |
8,207 |
5,901 |
39.1 |
6,177 |
32.9 |
|
Operating Expenses |
(5,280) |
(5,016) |
5.3 |
(5,017) |
5.2 |
|
Net Other Operating Income and Expenses |
(10) |
56 |
- |
(11) |
(9.1) |
|
Operating Income |
2,917 |
941 |
210.0 |
1,149 |
153.9 |
|
Net Non-Operating Income and Expenses |
937 |
351 |
167.0 |
631 |
48.5 |
|
Net Income Attributable to the Stockholders of the Parent |
3,482 |
1,180 |
195.1 |
1,812 |
92.2 |
|
EPS (NT$ per share) |
0.28 |
0.09 |
|
0.15 |
|
|
(US$ per ADS[2]) |
0.047 |
0.015 |
|
0.025 |
|
|
[2] One ADS represents five Taiwan-listed ordinary shares. | |||||
Revenue increased 13.2% QoQ to NT$35.87 billion from NT$31.69 billion in 1Q14, and increased 12.4% YoY from NT$31.91 billion in 2Q13. Gross profit was NT$8.21 billion, or 22.9% of revenue, compared to NT$5.90 billion, or 18.6% of 1Q14 revenue. Operating income for the quarter was NT$2.92 billion, or 8.1% of revenue, compared to operating income of NT$0.94 billion, or 3.0% of 1Q14 revenue. Net income attributable to the stockholders of the parent in 2Q14 was NT$3.48 billion, compared to NT$1.18 billion in 1Q14.
Earnings per ordinary share for the quarter were NT$0.28. Earnings per ADS were US$0.047. The basic weighted average number of outstanding shares in 2Q14 was 12,489,095,718, compared with 12,479,924,736 shares in 1Q14 and 12,464,972,126 shares in 2Q13. The diluted weighted average number of outstanding shares was 12,607,860,758 in 2Q14, compared with 13,157,984,032 shares in 1Q14 and 13,236,433,274 shares in 2Q13. The fully diluted share count on June 30, 2014 was approximately 12,782,196,000. On June 30, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Revenue increase was mainly driven by foundry wafer shipment growth. Depreciation increased 6.3% QoQ to NT$8.66 billion, mainly due to the deployment of new 28nm tools at Fab 12A. Other manufacturing costs rose 7.7% sequentially from the increase in wafer shipments. Gross margin increased to 22.9% sequentially, to NT$8.21 billion. Sales & Marketing expenses rose to NT$1.10 billion, including the increase in mask and IP expenses. Research and development expenses was NT$3.33 billion, 9.3% of operating revenues.
|
COGS & Expenses | |||||
|
(Amount: NT$ million) |
2Q14 |
1Q14 |
QoQ %
|
2Q13 |
YoY %
|
|
Net Operating Revenues |
35,869 |
31,694 |
13.2 |
31,905 |
12.4 |
|
COGS |
(27,662) |
(25,793) |
7.2 |
(25,728) |
7.5 |
|
Depreciation |
(8,662) |
(8,145) |
6.3 |
(8,546) |
1.4 |
|
Other Mfg. Costs |
(19,000) |
(17,648) |
7.7 |
(17,182) |
10.6 |
|
Gross Profit |
8,207 |
5,901 |
39.1 |
6,177 |
32.9 |
|
Gross Margin (%) |
22.9% |
18.6% |
|
19.4% |
|
|
Operating Expenses |
(5,280) |
(5,016) |
5.3 |
(5,017) |
5.2 |
|
G&A |
(857) |
(848) |
1.1 |
(966) |
(11.3) |
|
Sales & Marketing |
(1,097) |
(833) |
31.7 |
(800) |
37.1 |
|
R&D |
(3,326) |
(3,335) |
(0.3) |
(3,251) |
2.3 |
|
Net Other Operating Income & Expenses |
(10) |
56 |
- |
(11) |
(9.1) |
|
Operating Income |
2,917 |
941 |
210.0 |
1,149 |
153.9 |
Net non-operating income in 2Q14 was NT$937 million. Net interest expenses was NT$149 million, primarily from the redemption of bonds during 2Q14. The investment disposal gains were NT$792 million, including a NT$416 million gain from the sale of Epistar shares.
|
Non-Operating Income and Expenses | |||
|
(Amount: NT$ million) |
2Q14 |
1Q14 |
2Q13 |
|
Non-Operating Income and Expenses |
937 |
351 |
631 |
|
Net Interest Income and Expenses |
(149) |
(23) |
(83) |
|
Net Investment Gain and Loss |
188 |
(110) |
(33) |
|
Gain and Loss on Disposal of Investment |
792 |
367 |
671 |
|
Exchange Gain and Loss |
(4) |
22 |
(11) |
|
Other Gain and Loss |
110 |
95 |
87 |
Cash flow from operations generated NT$7.68 billion. CAPEX spending was NT$7.89 billion, including NT$7.75 billion from the foundry segment, resulting in free cash outflow of NT$204 million during 2Q14. Cash outflow from financing activities was NT$4.42 billion mainly due to the net redemption effect of NT$10.25 billion in bonds and issuance of NT$5.00 billion in new domestic bonds. Total cash outflow was NT$4.30 billion in 2Q14. Over the next 12 months, the company expects to repay NT$4.15 billion in bank loans.
|
Cash Flow Summary | ||
|
(Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2014 |
For the 3-Month Period Ended Mar. 31, 2014 |
|
Cash Flow from Operating Activities |
7,681 |
6,232 |
|
Net Income before tax |
3,854 |
1,292 |
|
Depreciation & Amortization |
9,949 |
9,850 |
|
Share of profit or loss of associates and joint ventures |
(132) |
35 |
|
Gain on disposal of investments |
(792) |
(367) |
|
Changes in Working Capital |
(5,002) |
(4,746) |
|
Other |
(196) |
168 |
|
Cash Flow from Investing Activities |
(7,032) |
(6,100) |
|
Capital Expenditures |
(7,885) |
(6,277) |
|
Proceeds from disposal of available-for-sale financial assets |
1,102 |
529 |
|
Acquisition of intangible assets |
(428) |
(175) |
|
Other |
179 |
(177) |
|
Cash Flow from Financing Activities |
(4,423) |
2,395 |
|
Bank Loans |
755 |
2,325 |
|
Bonds Issued |
5,000 |
- |
|
Redemption of Bonds |
(10,249) |
(57) |
|
Other |
71 |
127 |
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
(523) |
573 |
|
Net Increase(Decrease) in Cash and Cash Equivalents |
(4,297) |
3,100 |
|
Cash and Cash Equivalents of Disposal Group included in Non-Current Assets Held for Sale |
- |
(16) |
|
Total Increase(Decrease) in Cash and Cash Equivalents |
(4,297) |
3,084 |
Cash and cash equivalents decreased to NT$49.63 billion, reflecting CAPEX and bond redemption in 2Q14. Days of inventory decreased by three days to 47 days in 2Q14.
|
Current Assets | |||
|
(Amount: NT$ billion) |
2Q14 |
1Q14 |
2Q13 |
|
Cash and Cash Equivalents |
49.63 |
53.92 |
50.65 |
|
Notes & Accounts Receivable |
21.62 |
18.89 |
19.38 |
|
Days Sales Outstanding |
52 |
51 |
53 |
|
Inventories, net |
13.84 |
14.42 |
14.33 |
|
Days of Inventory |
47 |
50 |
51 |
|
Total Current Assets |
98.37 |
96.75 |
92.90 |
Current liabilities increased to NT$49.68 billion mainly due to the increase in payables on equipment acquisition and other current liabilities including increased accrual for dividend distribution of 2013. Debt to equity ratio increased to 41%.
|
Liabilities | |||
|
(Amount: NT$ billion) |
2Q14 |
1Q14 |
2Q13 |
|
Total Current Liabilities |
49.68 |
49.24 |
57.62 |
|
Notes & Accounts Payable |
6.85 |
7.15 |
7.17 |
|
Short-Term Credit / Bonds |
15.75 |
24.42 |
23.51 |
|
Payables on Equipment |
7.19 |
4.82 |
7.59 |
|
Other |
19.89 |
12.85 |
19.35 |
|
Long-Term Credit / Bonds |
31.92 |
27.66 |
28.54 |
|
Total Liabilities |
88.69 |
83.85 |
93.19 |
|
Debt to Equity |
41% |
39% |
44% |
Analysis of Revenue[3] for Foundry Segment
Revenue from Asia Pacific and Japan increased from 48% to 52% of sales, mainly due to stronger demand from Asia Pacific and Japan based communication and computer customers.
|
Revenue Breakdown by Region | |||||
|
Region |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|
North America |
43% |
45% |
47% |
43% |
47% |
|
Asia Pacific |
46% |
45% |
41% |
44% |
42% |
|
Europe |
5% |
7% |
8% |
7% |
8% |
|
Japan |
6% |
3% |
4% |
6% |
3% |
28nm node represented 1% of revenue. 40nm revenue continued to grow and contributed 21% of foundry sales. 40nm and below technologies accounted for 22% of sales in 2Q14.
|
Revenue Breakdown by Geometry | |||||
|
Geometry |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|
28nm and below |
1% |
0% |
0% |
0% |
0% |
|
40nm <x<=28nm |
21% |
20% |
24% |
20% |
20% |
|
40nm<x<=65nm |
31% |
31% |
29% |
34% |
31% |
|
65nm<x<=90nm |
6% |
7% |
7% |
6% |
6% |
|
90nm<x<=0.13um |
13% |
14% |
14% |
16% |
15% |
|
0.13um<x<=0.18um |
13% |
12% |
12% |
11% |
13% |
|
0.18um<x<=0.35um |
12% |
12% |
11% |
10% |
11% |
|
0.5um and above |
3% |
4% |
3% |
3% |
4% |
The percentage of revenue from IDM customers increased to 10%.
|
Revenue Breakdown by Customer Type | |||||
|
Customer Type |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|
Fabless |
90% |
92% |
89% |
86% |
90% |
|
IDM |
10% |
8% |
11% |
14% |
10% |
Communication segment accounted for 49%, reflecting strong demand in mobile applications.
|
Revenue Breakdown by Application (1) | |||||
|
Application |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|
Computer |
18% |
18% |
15% |
16% |
18% |
|
Communication |
49% |
46% |
49% |
52% |
51% |
|
Consumer |
29% |
31% |
31% |
28% |
28% |
|
Others |
4% |
5% |
5% |
4% |
3% |
|
(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. | |||||
[3] Revenue in this section represents wafer sales
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained flat in 2Q14.
(To view ASP trend, visit http://www.umc.com/english/investors/2Q14_ASP_trend.asp )
Shipment and Utilization Rate[4] for Foundry Segment
Wafer shipments increased 13.4% QoQ to 1,426K in 2Q14, compared to 1,258K 8-inch equivalent wafers shipped in 1Q14. Overall utilization rate for the quarter was 90%.
|
Wafer Shipments | |||||
|
|
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|
Wafer Shipments
|
1,426 |
1,258 |
1,236 |
1,329 |
1,307 |
|
| |||||
|
Quarterly Capacity Utilization Rate | |||||
|
|
2Q14 |
1Q14 |
4Q13 |
3Q13 |
2Q13 |
|
Utilization Rate |
90% |
81% |
79% |
87% |
85% |
|
Total Capacity
|
1,597 |
1,563 |
1,560 |
1,548 |
1,537 |
[4] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity[5] for Foundry Segment
Capacity during the second quarter was 1,597K 8-inch equivalent wafers. The incremental increase in 34K 8-inch equivalent wafers during 2Q14 was primarily due to capacity expansion at Fab 12A, Fab 12i and Fab 8N. UMC's estimated capacity in 3Q14 will be 1,586K 8-inch equivalent wafers, due to the change in capacity profile at Fab 8D and capacity upgrades at Fab 12i.
|
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers | ||||||||||
|
FAB |
Geometry
|
2013 |
2012 |
2011 |
2010 |
|
FAB |
3Q14E |
2Q14 |
1Q14 |
4Q13 | |
|
Fab6A |
6" |
3.5 – 0.45 |
448 |
481 |
538 |
588 |
|
Fab6A |
113 |
113 |
111 |
113 |
|
Fab8A |
8" |
0.5 – 0.25 |
813 |
815 |
813 |
816 |
|
Fab8A |
204 |
204 |
201 |
204 |
|
Fab8C |
8" |
0.35 – 0.11 |
347 |
360 |
359 |
366 |
|
Fab8C |
87 |
87 |
86 |
87 |
|
Fab8D |
8" |
0.13 – 0.09 |
382 |
371 |
364 |
314 |
|
Fab8D |
86 |
93 |
94 |
96 |
|
Fab8E |
8" |
0.5 – 0.18 |
418 |
449 |
469 |
410 |
|
Fab8E |
105 |
105 |
103 |
105 |
|
Fab8F |
8" |
0.18 – 0.11 |
388 |
389 |
388 |
388 |
|
Fab8F |
98 |
98 |
96 |
98 |
|
Fab8S |
8" |
0.18 – 0.11 |
335 |
348 |
307 |
304 |
|
Fab8S |
84 |
84 |
83 |
84 |
|
Fab8N |
8" |
0.5 – 0.13 |
469 |
- |
- |
- |
|
Fab8N |
140 |
140 |
126 |
128 |
|
Fab12A |
12" |
0.18 – 0.028 |
651 |
579 |
501 |
374 |
|
Fab12A |
174 |
174 |
171 |
164 |
|
Fab12i |
12" |
0.13 – 0.040 |
550 |
537 |
530 |
454 |
|
Fab12i |
145 |
147 |
145 |
145 |
|
Total(1) |
6,107 |
5,514 |
5,322 |
4,791 |
|
Total |
1,586 |
1,597 |
1,563 |
1,560 | ||
| YoY Growth Rate |
11% |
4% |
11% |
4% |
| |||||||
|
2010~2012 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. | ||||||||||||
[5] 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.
CAPEX for Foundry Segment
The foundry capital expenditure for 2014 will be US$1.3 billion. Spending during the first half of 2014 in the foundry segment was US$462 million.
|
Capital Expenditure by Year - in US$ billion | |||||||
|
Year |
2013 |
2012 |
2011 |
2010 |
2009 | ||
|
CAPEX |
$ 1.1 |
$ 1.7 |
$ 1.6 |
$ 1.8 |
$ 0.55 | ||
|
2009~2012 figures account for UMC parent company only. | |||||||
|
2014 CAPEX Plan | |||||||
|
8" |
12" |
Total | |||||
|
13% |
87% |
US$ 1.3 billion | |||||
Third Quarter of 2014 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Foundry Segment Wafer Shipments: To increase by low single-digit percentage range
- Foundry Segment ASP in US$: To remain flat
- Foundry Segment Profitability: Gross profit margin will be in the mid-20 percentage range
- Foundry Segment Capacity Utilization: Low-90% range
- 2014 CAPEX for Foundry Segment: US$1.3bn
- Guidance to New Business Segment: Revenue to be approximately NT$1.2bn and net loss attributable to UMC parent company to be approximately NT$760mn
Recent Developments / Announcements
|
Jul. 14, 2014 |
|
|
Jun. 11, 2014 |
UMC Shareholders Approve NT$0.50 Cash Dividend at Annual Shareholders' Meeting |
|
May 29, 2014 |
|
|
May 13, 2014 |
Kilopass' Gustoâ„¢ Ultra-Low Power NVM IP for Code Storage Enabled on UMC 55nm LP Process |
|
Apr. 30, 2014 |
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 30, 2014
|
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 2Q14 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 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.
- FINANCIAL TABLES TO FOLLOW -
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||
|
Consolidated Condensed Balance Sheet | |||||||||
|
As of June 30, 2014 | |||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||
|
| |||||||||
|
| |||||||||
|
|
June 30, 2014 | ||||||||
|
|
US$ |
|
NT$ |
|
% | ||||
|
Assets |
|
|
|
|
| ||||
|
Current assets |
|
|
|
|
| ||||
|
Cash and cash equivalents |
1,662 |
|
49,634 |
|
16.3% | ||||
|
Financial assets at fair value through profit or loss, current |
29 |
|
880 |
|
0.3% | ||||
|
Available-for-sale financial assets, current |
91 |
|
2,729 |
|
0.9% | ||||
|
Notes & Accounts receivable, net |
724 |
|
21,616 |
|
7.1% | ||||
|
Inventories, net |
464 |
|
13,844 |
|
4.6% | ||||
|
Other current assets |
324 |
|
9,671 |
|
3.2% | ||||
|
Total current assets |
3,294 |
|
98,374 |
|
32.4% | ||||
|
|
|
|
|
|
| ||||
|
Non-current assets |
|
|
|
|
| ||||
|
Funds and investments |
1,184 |
|
35,364 |
|
11.6% | ||||
|
Property, plant and equipment |
5,258 |
|
157,002 |
|
51.7% | ||||
|
Other non-current assets |
438 |
|
13,058 |
|
4.3% | ||||
|
Total non-current assets |
6,880 |
|
205,424 |
|
67.6% | ||||
|
Total assets |
10,174 |
|
303,798 |
|
100.0% | ||||
|
|
|
|
|
|
|
| |||
|
Liabilities |
|
|
|
|
| ||||
|
Current liabilities |
|
|
|
|
| ||||
|
Short-term loans |
266 |
|
7,954 |
|
2.6% | ||||
|
Financial liabilities at fair value through profit or loss, current |
0 |
|
4 |
|
0.0% | ||||
|
Payables |
1,100 |
|
32,852 |
|
10.8% | ||||
|
Dividends payable |
4 |
|
125 |
|
0.0% | ||||
|
Current portion of long-term liabilities |
261 |
|
7,798 |
|
2.6% | ||||
|
Other current liabilities |
33 |
|
946 |
|
0.4% | ||||
|
Total current liabilities |
1,664 |
|
49,679 |
|
16.4% | ||||
|
|
|
|
|
|
| ||||
|
Non-current liabilities |
|
|
|
|
| ||||
|
Bonds payable |
836 |
|
24,976 |
|
8.2% | ||||
|
Long-term loans |
233 |
|
6,947 |
|
2.3% | ||||
|
Other non-current liabilities |
237 |
|
7,083 |
|
2.3% | ||||
|
Total non-current liabilities |
1,306 |
|
39,006 |
|
12.8% | ||||
|
Total liabilities |
2,970 |
|
88,685 |
|
29.2% | ||||
|
|
|
|
|
|
| ||||
|
Equity |
|
|
|
|
| ||||
|
Equity attributable to the parent company |
|
|
|
|
| ||||
|
Capital |
4,255 |
|
127,063 |
|
41.8% | ||||
|
Additional paid-in capital |
1,320 |
|
39,402 |
|
13.0% | ||||
|
Retained earnings, unrealized gain or loss on available-for-sale
|
1,569 |
|
46,872 |
|
15.4% | ||||
|
Treasury stock |
(79) |
|
(2,365) |
|
(0.8%) | ||||
|
Total equity attributable to the parent company |
7,065 |
|
210,972 |
|
69.4% | ||||
|
Non-controlling interests |
139 |
|
4,141 |
|
1.4% | ||||
|
Total equity |
7,204 |
|
215,113 |
|
70.8% | ||||
|
Total liabilities and equity |
10,174 |
|
303,798 |
|
100.0% | ||||
|
|
|
|
|
|
| ||||
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar. |
| ||||||||
|
All figures are prepared in accordance with TIFRSs.
| |||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
|
Except Per Share and Per ADS Data | |||||||||||||||||||
|
| |||||||||||||||||||
|
| |||||||||||||||||||
|
|
Year over Year Comparison |
|
Quarter over Quarter Comparison | ||||||||||||||||
|
|
Three-Month Period Ended |
|
|
|
Three-Month Period Ended |
|
| ||||||||||||
|
|
June 30, 2014 |
|
June 30, 2013 |
|
% |
|
June 30, 2014 |
|
March 31, 2014 |
|
% | ||||||||
|
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
Net operating revenues |
1,201 |
|
35,869 |
|
1,068 |
|
31,905 |
|
12.4% |
|
1,201 |
|
35,869 |
|
1,061 |
|
31,694 |
|
13.2% |
|
Operating costs |
(926) |
|
(27,662) |
|
(861) |
|
(25,728) |
|
7.5% |
|
(926) |
|
(27,662) |
|
(863) |
|
(25,793) |
|
7.2% |
|
Gross profit |
275 |
|
8,207 |
|
207 |
|
6,177 |
|
32.9% |
|
275 |
|
8,207 |
|
198 |
|
5,901 |
|
39.1% |
|
|
22.9% |
|
22.9% |
|
19.4% |
|
19.4% |
|
|
|
22.9% |
|
22.9% |
|
18.6% |
|
18.6% |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(37) |
|
(1,097) |
|
(27) |
|
(800) |
|
37.1% |
|
(37) |
|
(1,097) |
|
(28) |
|
(833) |
|
31.7% |
|
- General and administrative expenses |
(29) |
|
(857) |
|
(33) |
|
(966) |
|
(11.3%) |
|
(29) |
|
(857) |
|
(28) |
|
(848) |
|
1.1% |
|
- Research and development expenses |
(111) |
|
(3,326) |
|
(109) |
|
(3,251) |
|
2.3% |
|
(111) |
|
(3,326) |
|
(112) |
|
(3,335) |
|
(0.3%) |
|
Subtotal |
(177) |
|
(5,280) |
|
(169) |
|
(5,017) |
|
5.2% |
|
(177) |
|
(5,280) |
|
(168) |
|
(5,016) |
|
5.3% |
|
Net other operating income and expenses |
(0) |
|
(10) |
|
(0) |
|
(11) |
|
(9.1%) |
|
(0) |
|
(10) |
|
2 |
|
56 |
|
- |
|
Operating income |
98 |
|
2,917 |
|
38 |
|
1,149 |
|
100.0% |
|
98 |
|
2,917 |
|
32 |
|
941 |
|
100.0% |
|
|
8.1% |
|
8.1% |
|
3.6% |
|
3.6% |
|
|
|
8.1% |
|
8.1% |
|
3.0% |
|
3.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
31 |
|
937 |
|
22 |
|
631 |
|
48.5% |
|
31 |
|
937 |
|
11 |
|
351 |
|
100.0% |
|
Income from continuing operations before
|
129 |
|
3,854 |
|
60 |
|
1,780 |
|
100.0% |
|
129 |
|
3,854 |
|
43 |
|
1,292 |
|
100.0% |
|
|
10.7% |
|
10.7% |
|
5.6% |
|
5.6% |
|
|
|
10.7% |
|
10.7% |
|
4.1% |
|
4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(18) |
|
(528) |
|
(2) |
|
(42) |
|
100.0% |
|
(18) |
|
(528) |
|
(6) |
|
(181) |
|
100.0% |
|
Net income |
111 |
|
3,326 |
|
58 |
|
1,738 |
|
91.4% |
|
111 |
|
3,326 |
|
37 |
|
1,111 |
|
100.0% |
|
|
9.3% |
|
9.3% |
|
5.4% |
|
5.4% |
|
|
|
9.3% |
|
9.3% |
|
3.5% |
|
3.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
4 |
|
103 |
|
12 |
|
350 |
|
(70.6%) |
|
4 |
|
103 |
|
139 |
|
4,130 |
|
(97.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
115 |
|
3,429 |
|
70 |
|
2,088 |
|
64.2% |
|
115 |
|
3,429 |
|
176 |
|
5,241 |
|
(34.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
117 |
|
3,482 |
|
61 |
|
1,812 |
|
92.2% |
|
117 |
|
3,482 |
|
40 |
|
1,180 |
|
100.0% |
|
Non-controlling interests |
(6) |
|
(156) |
|
(3) |
|
(74) |
|
100.0% |
|
(6) |
|
(156) |
|
(3) |
|
(69) |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
122 |
|
3,636 |
|
72 |
|
2,160 |
|
68.3% |
|
122 |
|
3,636 |
|
176 |
|
5,261 |
|
(30.9%) |
|
Non-controlling interests |
(7) |
|
(207) |
|
(2) |
|
(72) |
|
100.0% |
|
(7) |
|
(207) |
|
(0) |
|
(20) |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.009 |
|
0.28 |
|
0.005 |
|
0.15 |
|
|
|
0.009 |
|
0.28 |
|
0.003 |
|
0.09 |
|
|
|
Earnings per ADS (2) |
0.047 |
|
1.40 |
|
0.025 |
|
0.75 |
|
|
|
0.047 |
|
1.40 |
|
0.015 |
|
0.45 |
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (in millions) |
|
|
12,489 |
|
|
|
12,465 |
|
|
|
|
|
12,489 |
|
|
|
12,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: | |||||||||||||||||||
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar. |
|
|
|
|
|
|
|
| |||||||||||
|
All figures are prepared in accordance with TIFRSs. | |||||||||||||||||||
|
(2) 1 ADS equals 5 common shares. |
|
|
|
|
|
| |||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
|
Except Per Share and Per ADS Data | |||||||||||
|
|
| ||||||||||
|
|
For the Three-Month Period Ended |
|
For the Six-Month Period Ended | ||||||||
|
|
June 30, 2014 |
|
June 30, 2014 | ||||||||
|
|
US$ |
|
NT$ |
|
% |
|
US$ |
|
NT$ |
|
% |
|
Net operating revenues |
1,201 |
|
35,869 |
|
100.0% |
|
2,263 |
|
67,563 |
|
100.0% |
|
Operating costs |
(926) |
|
(27,662) |
|
(77.1%) |
|
(1,791) |
|
(53,455) |
|
(79.1%) |
|
Gross profit |
275 |
|
8,207 |
|
22.9% |
|
472 |
|
14,108 |
|
20.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(37) |
|
(1,097) |
|
(3.0%) |
|
(65) |
|
(1,931) |
|
(2.9%) |
|
- General and administrative expenses |
(29) |
|
(857) |
|
(2.4%) |
|
(57) |
|
(1,705) |
|
(2.5%) |
|
- Research and development expenses |
(111) |
|
(3,326) |
|
(9.3%) |
|
(223) |
|
(6,660) |
|
(9.8%) |
|
Subtotal |
(177) |
|
(5,280) |
|
(14.7%) |
|
(345) |
|
(10,296) |
|
(15.2%) |
|
Net other operating income and expenses |
(0) |
|
(10) |
|
(0.1%) |
|
2 |
|
45 |
|
0.0% |
|
Operating income |
98 |
|
2,917 |
|
8.1% |
|
129 |
|
3,857 |
|
5.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
31 |
|
937 |
|
2.6% |
|
43 |
|
1,289 |
|
1.9% |
|
Income from continuing operations before
|
129 |
|
3,854 |
|
10.7% |
|
172 |
|
5,146 |
|
7.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(18) |
|
(528) |
|
(1.4%) |
|
(23) |
|
(709) |
|
(1.0%) |
|
Net income |
111 |
|
3,326 |
|
9.3% |
|
149 |
|
4,437 |
|
6.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
4 |
|
103 |
|
0.3% |
|
141 |
|
4,233 |
|
6.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
115 |
|
3,429 |
|
9.6% |
|
290 |
|
8,670 |
|
12.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
117 |
|
3,482 |
|
9.7% |
|
156 |
|
4,662 |
|
6.9% |
|
Non-controlling interests |
(6) |
|
(156) |
|
(0.4%) |
|
(7) |
|
(225) |
|
(0.3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
122 |
|
3,636 |
|
10.1% |
|
298 |
|
8,897 |
|
13.2% |
|
Non-controlling interests |
(7) |
|
(207) |
|
(0.5%) |
|
(8) |
|
(227) |
|
(0.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.009 |
|
0.28 |
|
|
|
0.012 |
|
0.37 |
|
|
|
Earnings per ADS (2) |
0.047 |
|
1.40 |
|
|
|
0.062 |
|
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
12,489 |
|
|
|
|
|
12,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: | |||||||||||
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar. | |||||||||||
|
All figures are prepared in accordance with TIFRSs. | |||||||||||
|
(2) 1 ADS equals 5 common shares. | |||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
|
Consolidated Condensed Statement of Cash Flows | ||||
|
For The Six-Month Period Ended June 30, 2014 | ||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
|
|
|
|
| |
|
|
USD |
|
NTD | |
|
Cash flows from operating activities : |
|
|
| |
|
Net income before tax |
172 |
|
5,146 | |
|
Depreciation & Amortization |
663 |
|
19,799 | |
|
Impairment loss on financial assets |
5 |
|
163 | |
|
Gain on disposal of investments |
(39) |
|
(1,159) | |
|
Changes in notes & accounts receivable |
(165) |
|
(4,916) | |
|
Changes in other current assets |
(155) |
|
(4,642) | |
|
Changes in assets, liabilities and others |
(15) |
|
(478) | |
|
Net cash provided by operating activities |
466 |
|
13,913 | |
|
|
|
|
| |
|
Cash flows from investing activities : |
|
|
| |
|
Acquisition of available-for-sales financial assets |
(4) |
|
(115) | |
|
Proceeds from disposal of available-for-sale financial assets |
55 |
|
1,631 | |
|
Acquisition of financial assets measured at cost |
(16) |
|
(464) | |
|
Proceed from sale of financial assets measured at cost |
16 |
|
478 | |
|
Acquisition ofinvestments accounted for under the equity method |
(4) |
|
(121) | |
|
Acquisition of property, plant and equipment |
(474) |
|
(14,162) | |
|
Proceeds from disposal of property, plant and equipment |
8 |
|
252 | |
|
Acquisition of intangible assets |
(20) |
|
(603) | |
|
Others |
(1) |
|
(28) | |
|
Net cash used in investing activities |
(440) |
|
(13,132) | |
|
|
|
|
| |
|
Cash flows from financing activities : |
|
|
| |
|
Increase in short-term loans |
112 |
|
3,335 | |
|
Proceeds from bonds issued |
167 |
|
5,000 | |
|
Redemption of bonds |
(345) |
|
(10,306) | |
|
Proceeds from long-term loans |
33 |
|
1,000 | |
|
Repayments of long-term loans |
(42) |
|
(1,256) | |
|
Others |
7 |
|
199 | |
|
Net cash used in financing activities |
(68) |
|
(2,028) | |
|
|
|
|
| |
|
Effect of exchange rate changes on cash and cash equivalents |
2 |
|
50 | |
|
Net decrease in cash and cash equivalents |
(40) |
|
(1,197) | |
|
|
|
|
| |
|
Cash and cash equivalents at beginning of period |
1,702 |
|
50,831 | |
|
|
|
|
| |
|
Cash and cash equivalents at end of period |
1,662 |
|
49,634 | |
|
| ||||
|
| ||||
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar. | ||||
|
All figures are prepared in accordance with TIFRSs. | ||||
Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16957
Email Contact
Email Contact
SOURCE United Microelectronics Corporation
| Contact: |
| United Microelectronics Corporation
Web: http://www.umc.com/english/investors/2Q14_ASP_trend.asp |