WPG Holdings Ltd.(3702.TT/3702.TW)
1Q12 Earning Release1Q12 Earning Release
Apr. 27th, 2012
� These forward-looking statements, which may include statements regarding WPG’ future results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WPG’ current expectations.
� Actual results may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including, among other things: the cyclical nature of our industry; our dependence on introducing new products on a timely basis; our dependence on growth in the demand for our products; our ability to compete effectively; our ability to successfully expand our capacity; our dependence on key personnel; general economic and political conditions, including those related to the IC industry; possible disruptions in commercial activities caused by natural and human-induced
Safe Harbor Notice
disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.
� In addition, any financial information contained here within is presented in conformity with accounting principles generally accepted in the Republic of China (“ROC GAAP”).
� Our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure beyond that which is imposed by law, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.
Welcome Kathryn Chen
1Q12 Financial Highlights & 2Q12 Outlook Cliff Yuan
Q&A Simon Huang/
Agenda
Q&A Simon Huang/
Scott Lin/
Cliff Yuan
Result HighlightsUnit:NT$million
item 1Q121Q12
Guidance4Q11 1Q11 QoQ(%) YoY(%)
Net Sales 80,897 75~79B 82,107 79,776 (1.5) 1.4
Gross Margin 5.15% 5.3% ~ 5.5% 5.08% 5.46% +7 bp -31 bp
Operating Expenses (2,892) (2,859) (2,724) 1.2 6.2
Operating Income 1,276 1,315 1,634 (3.0) (21.9)
Operating Margin 1.58% 1.4% ~ 1.6% 1.60% 2.05% -2 bp -47 bp
Net Income 939 922 1,318 1.8 (28.7)
EPS (NT$)(1) 0.58 0.58 0.83
Net Book Value (NT$)(1) 24.59
Total Assets 117,584 109,021 103,261Total Assets 117,584 109,021 103,261
Total Liabilities 77,305 71,208 67,761
Total Equity 40,280 37,813 35,500
Net Working Capital 54,381 52,647 46,380
Free Cash Flow 1,325 8,562 (3,437)
KEY Indices(2)
ROWC 9.6% 10.0% 14.1% -41 bp -450 bp
NWC/Sales 0.17 0.16 0.15
ROE 10.1% 10.4% 15.2% -32 bp -514 bp
Gearing 0.63 0.67 0.52
(1).Weighted average shares outstanding
(2).Annualized
Income StatementsUnit:NT$million
Item 1Q12 4Q11 QoQ(%) 1Q11 YoY(%)
Net operating Revenue 80,897 82,107 (1.5) 79,776 1.4
COGS (76,729) (77,933) (1.5) (75,418) 1.7
Gross Profit 4,169 4,174 (0.1) 4,358 (4.3)
Gross Margin 5.15% 5.08% 5.46%
Operating Expenses (2,892) (2,859) 1.2 (2,724) 6.2
Operating Income 1,276 1,315 (3.0) 1,634 (21.9)
Operating Margin 1.58% 1.60% 2.05%
Net Non-operating Items (169) (114) 47.4 (34) 397.3Net Non-operating Items (169) (114) 47.4 (34) 397.3
Net Financing costs (192) (213) (10.0) (135) 42.3
Others 23 99 101
Profit Before Tax/Minority 1,108 1,201 (7.8) 1,600 (30.8)
Tax (177) (285) (37.7) (278) (36.2)
Minority/Accounting Principle Change 9 6 (4)
Profit After Tax/Minority 939 922 1.8 1,318 (28.7)
Net Margin 1.16% 1.12% 1.65%
EPS (NTD)(1) 0.58 0.58 0.83
Tax % 16% 24% 17%
(1).Weighted average shares outstanding
Balance SheetUnit:NT$million
item Amount % Amount % Amount %
Cash &Marketable Securities 8,362 7 7,921 7 7,670 7
Accounts Receivable - Trade 51,752 44 47,166 43 44,024 43
Inventory 36,590 31 34,032 31 33,616 33
Current Assets 105,339 90 97,956 90 93,241 90
Others 12,246 10 11,066 10 10,020 10
Total Assets 117,584 100 109,021 100 103,261 100
Current Interest-bearing Debt 32,442 28 31,940 29 26,908 26
Accounts Payble 33,961 29 28,551 26 31,260 30
Accured Liabilities and Others 6,050 5 6,188 6 7,022 7
Current Liabilities 72,453 62 66,680 61 65,190 63
1Q12 4Q11 1Q11
Current Liabilities 72,453 62 66,680 61 65,190 63
Long-term Interest-bearing Debt 4,276 4 3,978 4 1,938 2
Others 575 0 551 1 633 1
Total Liabilities 77,305 66 71,208 65 67,761 66
Total Equity 40,280 34 37,813 35 35,500 34
KEY Indices(1)
Net Working Capital ($) 54,381 52,647 46,380
AR Turnover (Days) 55 46 46
Inventory Turnover (Days) 41 37 38
AP Turnover (Days) 37 31 34
Average Collection Periods (Days) 60 51 50
Current Ratio 145% 147% 143%
Gearing Ratio 0.63 0.67 0.52
(1).Annualized
Cash FlowsUnit:NT$million 1Q12 4Q11 1Q11
-Net Income(1) 930 916 1,322
-Changes of NWC 325 8,172 (6,403)
-Adjustment & Others 69 (526) 1,643
From Operation 1,325 8,562 (3,437)
-Financial Instrument 383 676 1,289
-Capital Expenditure (918) (178) (50)
-Others (110) (148) 72
From Investment (646) 349 1,312From Investment (646) 349 1,312
-Financial Debt (64) (8,700) 1,837
-Others 23 (68) 28
From Financing (41) (8,769) 1,864
Effect on changes of consolidated subsidiaries 398 - 48
Cumulative translation adjustments (651) 78 59
Net Cash Position Change 385 220 (154)
Ending Cash Balance 8,171 7,786 7,419(1).Minority interest is included.
Unit: NT$million
Consolidated Revenue
60,000
70,000
80,000
90,000
0
10,000
20,000
30,000
40,000
50,000
60,000
1Q11 2Q11 3Q11 4Q11 1Q12
79,776 82,524 87,917 82,107 80,897
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12
16% 17% 15% 14% 16%
75% 73% 75% 77% 76%
6% 6% 7% 7% 6%3% 4% 3% 2% 2%
Others
ASEAN
CN/HK
TWN
Sales breakdown by Geography/ Customer
1Q11 2Q11 3Q11 4Q11 1Q12
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12
51% 51% 48% 47% 46%
41% 40% 42% 44% 45%
8% 9% 10% 9% 9%MNC / Others
CBM
TBM
TBM:Taiwan-Based CustomersCBM:China Based Customers
Sales breakdown by Application/ Device Type
0%
25%
50%
75%
100%
1Q11 2Q11 3Q11 4Q11 1Q12
39% 40% 39% 41% 41%
23% 22% 23% 24% 24%
18% 19% 18% 17% 18%4% 6% 8% 7%1%1% 2% 2% 2%19% 14% 12% 8% 8%
Others
Automotive
Industry
Consumer
Communication
Computer
0%
25%
50%
75%
100%
1Q11 2Q11 3Q11 4Q11 1Q12
32% 32% 33% 33% 32%
16% 16% 16% 17% 16%
17% 18% 15% 15% 14%
14% 14% 13% 12% 15%
5% 5% 6% 7% 7%7% 7% 8% 9% 10%9% 8% 9% 7% 6%
Others
Optical
PEMCO
Memory
Discrete & Logic
Analog & Mixed Signal IC
Core Component
1Q11 2Q11 3Q11 4Q11 1Q12
14.1% 13.7%12.0%
10.0% 9.6%
12.9%11.5%
12.7%
0.10
0.15
0.20
10%
15%
20%NWC/Sales(Q) ROWC(Q) ROWC(YTD)
ROWC vs. NWC/Sales
0.15 0.16 0.18 0.16 0.170.00
0.05
0.10
0%
5%
10%
1Q11 2Q11 3Q11 4Q11 1Q12Note:Annualized
15.2%
17.7%
15.5%
10.4% 10.1%16.7%
15.8%
14.3%
15%
20%
0.6
0.8
1.0
NT$EPS(Q) ROE(Q) ROE(Ytd)
ROE vs. EPS
0.83 0.93 0.86 0.58 0.580%
5%
10%
0.0
0.2
0.4
1Q11 2Q11 3Q11 4Q11 1Q12Note:Annualized
Gross Margin vs. Operating Margin
4,358 4,730 4,768
4,174 4,169
5.46% 5.73%5.42%
5.08% 5.15%
4%
5%
6%
7%
3,000
4,000
5,000NT$million
Gross Profit Operating Income Operating Margin Gross Margin
1,6341,852 1,861
1,315 1,276
2.05% 2.24% 2.12%1.60% 1.58%
0%
1%
2%
3%
4%
0
1,000
2,000
3,000
1Q11 2Q11 3Q11 4Q11 1Q12
Operating Cash Cycle
50 53 56
51
60
30
40
50
60
0
10
20
1Q11 2Q11 3Q11 4Q11 1Q12
AR in Days Inventory in Days
AP in Days Net Cash Operating Cycle(Days)
Based on our current business outlook,management expects::::
� Revenues to be between NT$ 90 billion and NT$ 94 billion at a forecast FX rate of 29.5 NT dollars to 1 US dollar averaged over 2Q12.
2Q12 Guidance
to 1 US dollar averaged over 2Q12.
� Gross profit margin to be between 5.1% and 5.3%
� Operating profit margin to be between 1.6% and1.8%
� 26 Solutions Launched in 1Q12::::
Recap of Recent Major Events
���� 推出多連網模式 TV 機頂盒 2012-03-07
���� 推出多媒體播放器整體方案 2012-03-07
���� 推出多媒體盒主、被動組件最佳解決方案 2012-03-07
���� 力推於多媒體盒的應用方案 2012-03-07
���� 推出多媒體盒上的解決方案 2012-03-07
���� 力推多媒体播放器方案 2012-03-07
���� 推出 MID 解决方案 2012-03-07
���� 推出高度整合的單晶片無線接收器解決方案 2012-03-21
���� 推出節能型 IEEE 802.11n 無線區域網路路由器解決方案 2012-03-21
���� 推出無線接取器之主、被動元件解決方案 2012-03-21
���� 力推無線接取器方案 2012-03-21
���� 力推无线基站用高能效 LDMOS 射频功率晶体管 2012-03-21
���� 推出電源效率與高效能絕佳均衡之平台智慧型手機方案 2012-02-15
���� 力推智慧型手機方案 2012-02-15
http://www.WPGholdings.com/wpgtechonline.php
Solar charging Beacon system Car-CD MP3
Solution
LED Lighting with Dimming
Car TV
GPS Solution GPS
推出 MID 解决方案 2012-03-07
���� 推出機頂盒方案 2012-01-11
���� 推出機上盒整體方案 2012-01-11
���� 推出高性價比高清有線數字電視機頂盒解決方案 2012-01-11
���� 推出 Set Top Box 主、被動解決方案 2012-01-11
���� 力推大眾化機上盒(iTV-Box)方案 2012-01-11
���� 推出業界最新的 DVB-T2 機上盒 2012-01-11
���� 力推高清数字机顶盒方案 2012-01-11
力推智慧型手機方案 2012-02-15
���� 推出智慧手機單晶片解決方案 2012-02-15
���� 推出智慧型手機之主、被動組件最佳解決方案 2012-02-15
���� 力推應用於智能手機方案 2012-02-15
���� 力推於智能手機上的運用 2012-02-15
���� 力推 3G 平台在 Smart Phone 应用 2012-02-15
More Solutions Launched …
9
1710
1710
9
1
30
40
50
60
Others
Automotive
Industry
http://www.WPGholdings.com/wpgtechonline.php
13 1421
5
13
12
8
4015
148
10
0
10
20
30
1Q11 2Q11 3Q11 4Q11 1Q12
Industry
Consumer
Communication
Computer
� Closing announcement of AECO acquisition (2012/3/1)
� WPI, subgroup of WPG, Proposes Long-Think business acquisition in Cash (2012/04/11)
� WPG Holdings ranked “2012 The Forbes Global 2000 List No.1944” by Forbes (2012/04/18)
Recap of Recent Major Events
� WPG Board of Directors Proposes NT$2.6 Cash Dividend Per Share (2012/04/24)
http://www.WPGholdings.com