confidential 2015 first quarter otc investors conference may 13, 2015
TRANSCRIPT
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Confidential
2015 First Quarter OTC Investors Conference
May 13, 2015
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Confidential
Safe Harbor Statement
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This following presentation may include predictions, estimates or other
information that might be considered forward-looking.
These forward-looking statements are based on information available to
Ardentec as of the date of this conference and current expectations, forecasts
and assumptions, and involve a number of risks and uncertainties that could
cause actual results to differ materially from those anticipated by these
forward-looking statements. You are cautioned not to place undue reliance on
these forward-looking statements and please keep in mind that except as
required by law, we are not obligating ourselves to revise or publicly release
the results of any revision to these forward-looking statements.
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Confidential
Agenda
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Confidential
Business Update - Chairman’s Honor
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Our chairman Mr. Lu received ROC Presidential Science Prize(總統科學獎 ) the highest honor of national science community in Dec/2013.
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Confidential
Business Update - Recognition to our Progress in CSR
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Received 2014 BSI(英國標準協會 ) Sustainable Governance Award ( 永續治理實踐獎 ) in Dec/2014.
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Confidential
Business Update - Revenue Trend by Month
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Revenue of month and annum both created high record in 2014 with 17% yoy growth.
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Confidential
Business Update – Net Income Trend by
Quarter
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Net Income in 2014 is 43% yoy growth.
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Confidential
Business Update
Continued Recognition from Global Semiconductor Leading Companies
Won the 2013 Supplier Excellence Award from an US-based leading IDM in Apr/2014, the third time awarded since 2004.
Received the 2013 Distinguished Performance Supplier Award from an US-based leading IDM in Apr/2014 which is an encouragement for our further extension and enlargement to automotive markets.
Won the 2014 Appreciation Award from an Europe-based leading IDM in Oct/2014.
Received 2014 Best Partner Award from a local flash memory IDM in Jan/2015, awarded for the fifth consecutive year.
Received 2014 Excellent Service and Outstanding Support Award from an Europe-based leading IDM in Mar/2015.
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Confidential
Business Update
Ready for Further Growth Received the site certification of Common Criteria (CC) for both
Headquarters’ sites and Singapore site in Dec/2013, Feb/2014, and Jun/2014 sequentially representing a major ahead step in security product testing service.
P-site 1st phase has started running, further phase installation is on planning.
WLSCP backend line is ready for production both at Headquarters and Singapore site.
Advantest announced in Mar/2015 the 4000th V93000 test system is shipped to Ardentec. This is a major milestone to broaden our biz to the whole range of applications from all major semiconductor companies.
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Confidential
2014 Consolidated Financial PerformanceYoY Comparison
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Accounts FY14 % FY13 % YoY%Net Sales 5,833,999 100 5,001,187 100 16.7
Cost of Goods Sold 4,003,275 69 3,546,755 71 12.9
Gross Margin 1,830,724 31 1,454,432 29 25.9
Operating Expenses (564,298) (9) (455,381) (9) 23.9
Operating Income 1,266,426 22 999,051 20 26.8
Non-operating Income ( Expense ) Net 170,684 3 5,380 0 3,072.6
Income before Tax 1,437,110 25 1,004,431 20 43.1
Income Tax (230,380) (4) (162,337) (3) 41.9
Net Income 1,206,730 21 842,094 17 43.3
EPS (NT$) 2.65 1.85 43.2
(In thousand NT$ except EPS in NT$)
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Confidential
Q1/2015 Consolidated Financial PerformanceQoQ Comparison
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Accounts Q1/15 % Q4/14 % QoQ%Net Sales 1,516,016 100 1,551,284 100 (2.3)
Cost of Goods Sold 1,030,184 68 1,029,571 66 0.1
Gross Margin 485,832 32 521,713 34 (6.9)
Operating Expenses (129,894) (9) (157,557) (10) (17.6)
Operating I ncome 355,938 23 364,156 24 (2.3)
Non-operating I ncome ( Expense ) Net (1,336) (0) 54,007 3 (102.5)
I ncome before Tax 354,602 23 418,163 27 (15.2)
I ncome Tax (48,194) (3) (58,535) (4) (17.7)
Net I ncome 306,408 20 359,628 23 (14.8)
EPS (NT$) 0.67 0.79 (15.2)
(I n thousand NT$ except EPS in NT$)
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Confidential
Q1/2015 Consolidated Financial PerformanceYoY Comparison
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Accounts Q1/15 % Q1/14 % YoY%Net Sales 1,516,016 100 1,231,029 100 23.2
Cost of Goods Sold 1,030,184 68 924,490 75 11.4
Gross Margin 485,832 32 306,539 25 58.5
Operating Expenses (129,894) (9) (127,863) (11) 1.6
Operating I ncome 355,938 23 178,676 14 99.2
Non-operating I ncome ( Expense ) Net (1,336) (0) 21,242 2 106.3
I ncome before Tax 354,602 23 199,918 16 77.4
I ncome Tax (48,194) (3) (28,772) (2) 67.5
Net I ncome 306,408 20 171,146 14 79.0
EPS (NT$) 0.67 0.38 76.3
(I n thousand NT$ except EPS in NT$)
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Confidential
Q1/2015 Consolidated Financial ConditionYoY Comparison
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Accounts Q1/15 % Q1/14 %Cash and Cash Equivalents 2,367,078 17 2,743,707 21Bonds Investment Without MarketPrice
757,777 5 0 0
Current Assets 1,362,568 10 1,248,023 10
Non-Current Assets 9,479,853 68 8,865,578 69
Total Assets 13,967,276 100 12,857,308 100
Current Liabilities 1,990,597 14 2,073,180 16
Non-Current Liabilities 2,439,073 18 2,087,963 16
Total Liabilities 4,429,670 32 4,161,143 32
Shareholders' Equity 9,537,606 68 8,696,165 68
(In thousand NT$)
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Confidential
Q1/2015 Consolidated Cash FlowYoY Comparison
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Q1/15 Q1/14Beginning Balance 1,963,249 2,981,407 Cash from operating activities 855,160 587,842 Bonds investment without market price (14,503) 0 Capital expenditures (252,952) (534,813) Investments and others (19,045) (4,115) Bank loans 685,000 600,000 Finance and others (832,422) (896,572) Exchange influence (17,409) 9,958Ending Balance 2,367,078 2,743,707Bonds Investment Without Market Price(time deposit > 3 months)
757,777
Free Cash Flow * 602,208 53,029
(In thousand NT$)
* Free cash flow = Cash from operating activities – Capital expenditures
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Confidential
Strong Financial Ratios
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Q1/15 FY14 Q1/14 Cash/Assets % 22.37 19.55 21.34 Fixed Asset/Total Assets % 65.18 68.05 65.32 Liabilities/Total Assets % 31.71 33.03 32.36 Bank Loan/Total Assets % 25.16 26.48 25.99 Current Ratio % 225.43 241.27 192.54 Quick Ratio % 220.51 236.00 187.09 Asset Turnover Ratio % 43.60 43.71 38.32 Net Income % 20.21 20.68 13.90 ROE % 13.03 13.59 7.97 EPS(NT$ per com. Shr.) 0.67 2.65 0.38
* Cash : included Bonds Investment Without Market Price
* *
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Confidential
Revenue Growth (Consolidated)
0,000
1,000
2,000
3,000
4,000
5,000
6,000
(in NT$M)
70067.2%
1,31087.1%
2,11961.7%
2,49317.7%
3,52741.4%
3,8128.1% 3,247
(21.3%)
5,08456.5% 4,904
(3.5%)4,1288.3%
ArdentecArdentec
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
5,1595.2%
7,000
20132001
5,001 (3.0%)
418.748.5%
2001-2014
2001-2014
CAGRCAGR: 22.5%
: 22.5%
5,833 16.6%
2014
000
40
80
120
(in NT$B) Taiwan Semiconductor IndustryTaiwan Semiconductor Industry
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
160
20132001
1,000
750
500
250
000
2001-2014
2001-2014 CAGRCAGR: :
13.9 % (Test)
13.9 % (Test)
12.2 % (Foundry
12.2 % (Foundry))
67.517.0%
374(6.3%)
TestTestFoundryFoundry
92.436.9%
437.817.2%
451.8451.83.2%
96.5(5.7%)
446.9(1.1%)57.7
41.1%
39929.0%
102.310.7% 87.6
(9.2%)408.2(8.7%)
127.846.0%
570.939.9%
120.8(5.5%)
573.50.5%
648.313.2%
121.5(0.6%)
30925.3%
40.928.6%
25.3(22.9%)
204.8(-31.0%)
31.825.7%
24720.5%
126.64.2% 759.2
17.1%
Source: ITRI IEK/ITIS Feb 2015
(in NT$B)
2014
137.98.9%
91420.4%
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Revenue Breakdown by Customer YoY Comparison
Q1/2015
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Revenue Breakdown by Product YoY Comparison
Q1/2015
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