Global expansion to ensure long term growth; significant 28nm ramp in 4Q
(PRNewswire) —Third Quarter 2014 Overview[1]:
Revenue: NT$35.21 billion (US$1.16 billion)
- Gross margin: 21.5%; operating margin: 4.8%
- Foundry revenue from advanced node: 3% from 28nm, 24% from 40nm
- Foundry capacity utilization rate: 93%
- Net income attributable to the stockholders of the parent: NT$2.92 billion (US$96 million)
- Earnings per share: NT$0.23; earnings per ADS: US$0.038
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2014.
Revenue was NT$35.21 billion, with gross margin at 21.5% and operating margin at 4.8%. Net income attributable to the stockholders of the parent was NT$2.92 billion, with earnings per ordinary share of NT$0.23.
Mr. Po-Wen Yen, CEO of UMC, said, "In the third quarter, our foundry revenue grew 2.9% sequentially to NT$33.51 billion. Foundry operating margin was 8.8%. Overall capacity utilization reached 93%, led by increasing demand from communication products such as handsets and tablet devices, bringing wafer shipments to 1.462 million 8-inch equivalent wafers. Moreover, 24% of our revenue came from 40nm, while 28nm contribution rose from 1% to 3% quarter-over-quarter, demonstrating the sustained traction of UMC's leading edge geometries. Our 28nm yield progress for poly-SiON & gate-last, High-K Metal Gate products has continued to improve, which will drive significant production ramp during the fourth quarter. This progress will help attract multiple waves of new customers and products to strengthen UMC's 28nm growth and further diversify our customer base in advanced nodes."
CEO Yen continued, "UMC has collaborated with Asian regional partners for capacity deployment plans with the intention to expand our operating scale, strengthen efficiency and capture additional market share. This cooperative model will establish regional manufacturing centers that will build economy of scale to increase productivity and serve local markets, while helping UMC's global customers mitigate geographical risks in the supply chain. UMC's recent announcement with Fujitsu Semiconductor and our joint venture in Xiamen illustrates these collaborative efforts. Our foundry alliance with Fujitsu includes a 40nm licensing agreement which will enable UMC to better serve the Japanese local market, including automotive, industrial, consumer electronics, and other related sectors. Recently, we also announced an investment venture with Xiamen Municipal People's Government and FuJian Electronics & Information Group to establish a 12" fab in China for 40nm and 55nm foundry services, subject to approval by Taiwan government authorities. Meanwhile, UMC's dedicated engineering team continues to work on 10nm and 14nm advanced technologies in our Taiwan headquarters to ensure the company's next stage of growth. Our differentiated approach via global expansion, combined with the leadership in advanced manufacturing technologies, will serve as the engine that drives UMC's growth to enhance corporate profitability and provide long-term returns for our shareholders."
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[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 Sep 30, 2014, the three-month period ending Jun 30, 2014, and the equivalent three-month period that ended Sep 30, 2013. For all 3Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Sep 30, 2014 exchange rate of NT$ 30.41 per U.S. Dollar. |
Summary of Operating Results
|
Operating Results | |||||
|
(Amount: NT$ million) |
3Q14 |
2Q14 |
QoQ %
|
3Q13 |
YoY %
|
|
Net Operating Revenues |
35,214 |
35,869 |
(1.8) |
33,407 |
5.4 |
|
Gross Profit |
7,559 |
8,207 |
(7.9) |
7,337 |
3.0 |
|
Operating Expenses |
(5,270) |
(5,280) |
(0.2) |
(4,894) |
7.7 |
|
Net Other Operating Income and Expenses |
(602) |
(10) |
5,920.0 |
(48) |
1,154.2 |
|
Operating Income |
1,687 |
2,917 |
(42.2) |
2,395 |
(29.6) |
|
Net Non-Operating Income and Expenses |
1,305 |
937 |
39.3 |
1,561 |
(16.4) |
|
Net Income Attributable to the Stockholders of the Parent |
2,916 |
3,482 |
(16.3) |
3,476 |
(16.1) |
|
EPS (NT$ per share) |
0.23 |
0.28 |
|
0.28 |
|
|
(US$ per ADS) |
0.038 |
0.046 |
|
0.046 |
|
During 3Q14, foundry revenue increased 2.9% QoQ to NT$33.51 billion while New Business segment revenue, mainly consisting of solar subsidiary companies, decreased 48.2% sequentially to NT$1.72 billion, leading to a consolidated revenue of NT$35.21 billion, a 1.8% quarterly decline. Gross profit was NT$7.56 billion, or 21.5% of revenue. Operating income was NT$1.69 billion, or 4.8% of consolidated revenue, primarily due to a NT$602 million net other operating expense, mainly from an impairment loss in a solar subsidiary company during 3Q14. Net income attributable to the stockholders of the parent in 3Q14 was NT$2.92 billion, compared to NT$3.48 billion in 2Q14.
Earnings per ordinary share for the quarter were NT$0.23. Earnings per ADS were US$0.038. The basic weighted average number of outstanding shares in 3Q14 was 12,500,808,739, compared with 12,489,095,718 shares in 2Q14 and 12,459,978,088 shares in 3Q13. The diluted weighted average number of outstanding shares was 12,582,502,645 in 3Q14, compared with 12,607,860,758 shares in 2Q14 and 13,201,315,449 shares in 3Q13. The fully diluted share count on September 30, 2014 was approximately 12,781,655,000. On September 30, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Foundry revenue increased by 2.9% to NT$33.51 billion due to sustained demand while New Business segment declined 48.2% to NT$1.72 billion due to a global slowdown in the solar sector, resulting in consolidated revenue of NT$35.21 billion. Cost of goods sold remained relatively flat from last quarter. Research and development expenses increased 4.3% to NT$3.47 billion. Net other operating expenses of NT$602 million was mostly due to an impairment loss from a solar subsidiary company.
|
COGS & Expenses | |||||
|
(Amount: NT$ million) |
3Q14 |
2Q14 |
QoQ %
|
3Q13 |
YoY %
|
|
Net Operating Revenues |
35,214 |
35,869 |
(1.8) |
33,407 |
5.4 |
|
COGS |
(27,655) |
(27,662) |
(0.0) |
(26,070) |
6.1 |
|
Depreciation |
(8,483) |
(8,662) |
(2.1) |
(8,151) |
4.1 |
|
Other Mfg. Costs |
(19,172) |
(19,000) |
0.9 |
(17,919) |
7.0 |
|
Gross Profit |
7,559 |
8,207 |
(7.9) |
7,337 |
3.0 |
|
Gross Margin (%) |
21.5% |
22.9% |
|
22.0% |
|
|
Operating Expenses |
(5,270) |
(5,280) |
(0.2) |
(4,894) |
7.7 |
|
G&A |
(845) |
(857) |
(1.4) |
(854) |
(1.1) |
|
Sales & Marketing |
(957) |
(1,097) |
(12.8) |
(778) |
23.0 |
|
R&D |
(3,468) |
(3,326) |
4.3 |
(3,262) |
6.3 |
|
Net Other Operating Income & Expenses |
(602) |
(10) |
5,920.0 |
(48) |
1,154.2 |
|
Operating Income |
1,687 |
2,917 |
(42.2) |
2,395 |
(29.6) |
Net non-operating income in 3Q14 was NT$1.3 billion. Net investment gain was NT$487 million. Gains from investment disposal totaled NT$580 million.
|
Non-Operating Income and Expenses | |||
|
(Amount: NT$ million) |
3Q14 |
2Q14 |
3Q13 |
|
Non-Operating Income and Expenses |
1,305 |
937 |
1,561 |
|
Net Interest Income and Expenses |
(8) |
(149) |
(77) |
|
Net Investment Gain and Loss |
487 |
188 |
639 |
|
Gain and Loss on Disposal of Investment |
580 |
792 |
506 |
|
Exchange Gain and Loss |
114 |
(4) |
53 |
|
Other Gain and Loss |
132 |
110 |
440 |
Cash inflow from operations was NT$12.04 billion. In 3Q14, CAPEX spending of NT$12.87 billion included NT$12.74 billion from the foundry segment, resulting in free cash outflow of NT$828 million. Cash outflow from financing activities was NT$6.66 billion, mostly due to the payment of NT$6.25 billion in cash dividends and cash paid from additional paid-in-capital to shareholders and loan repayment of NT$627 million. Total cash outflow was NT$6.89 billion in 3Q14. Over the next 12 months, the company expects to repay NT$4.44 billion in bank loans.
|
Cash Flow Summary | ||
|
(Amount: NT$ million) |
For the 3-Month |
For the 3-Month |
|
Period Ended |
Period Ended | |
|
Sep. 30, 2014 |
Jun. 30, 2014 | |
|
Cash Flow from Operating Activities |
12,039 |
7,681 |
|
Net Income before tax |
2,992 |
3,854 |
|
Depreciation & Amortization |
10,195 |
9,949 |
|
Share of profit or loss of associates and joint ventures |
54 |
(132) |
|
Gain on disposal of investments |
(580) |
(792) |
|
Impairment loss on non-financial assets |
597 |
- |
|
Changes in Working Capital |
(1,488) |
(5,002) |
|
Other |
269 |
(196) |
|
Cash Flow from Investing Activities |
(12,684) |
(7,032) |
|
Capital Expenditures |
(12,867) |
(7,885) |
|
Proceeds from disposal of available-for-sale financial assets |
568 |
1,102 |
|
Acquisition of intangible assets |
(268) |
(428) |
|
Other |
(117) |
179 |
|
Cash Flow from Financing Activities |
(6,659) |
(4,423) |
|
Bank Loans |
(627) |
755 |
|
Bonds Issued |
- |
5,000 |
|
Redemption of Bonds |
- |
(10,249) |
|
Cash Dividends and Cash paid from additional paid-in capital |
(6,253) |
- |
|
Other |
221 |
71 |
|
Effect of Exchange Rate Changes
|
414 |
(523) |
|
Net Decrease in Cash and Cash Equivalents |
(6,890) |
(4,297) |
Cash and cash equivalents decreased to NT$42.74 billion, mostly from CAPEX spending, cash dividends, and cash paid from additional paid-in-capital to shareholders in 3Q14. The days of inventory decreased to 46 days.
|
Current Assets | |||
|
(Amount: NT$ billion) |
3Q14 |
2Q14 |
3Q13 |
|
Cash and Cash Equivalents |
42.74 |
49.63 |
47.71 |
|
Notes & Accounts Receivable |
21.93 |
21.62 |
18.66 |
|
Days Sales Outstanding |
56 |
52 |
52 |
|
Inventories, net |
14.31 |
13.84 |
14.17 |
|
Days of Inventory |
46 |
47 |
50 |
|
Total Current Assets |
91.8 |
98.37 |
88.9 |
Current liabilities decreased to NT$45.44 billion, largely from the payment of NT$6.25 billion in cash dividends and cash paid from additional paid-in-capital to shareholders. Debt to equity ratio decreased to 39%.
|
Liabilities | |||
|
(Amount: NT$ billion) |
3Q14 |
2Q14 |
3Q13 |
|
Total Current Liabilities |
45.44 |
49.68 |
52.27 |
|
Notes & Accounts Payable |
6.75 |
6.85 |
7.62 |
|
Short-Term Credit / Bonds |
15.26 |
15.75 |
23.44 |
|
Payables on Equipment |
10.4 |
7.19 |
8.95 |
|
Other |
13.03 |
19.89 |
12.26 |
|
Long-Term Credit / Bonds |
31.98 |
31.92 |
28.8 |
|
Total Liabilities |
84.43 |
88.69 |
88.35 |
|
Debt to Equity |
39% |
41% |
42% |
Analysis of Revenue[2] for Foundry Segment
Revenue from North America and Europe rose to 45% and 6% of sales respectively, primarily from the demand in the communication segment.
|
Revenue Breakdown by Region | |||||
|
Region |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
|
North America |
45% |
43% |
45% |
47% |
43% |
|
Asia Pacific |
44% |
46% |
45% |
41% |
44% |
|
Europe |
6% |
5% |
7% |
8% |
7% |
|
Japan |
5% |
6% |
3% |
4% |
6% |
28nm revenue contribution rose to 3% while 40nm revenue represented 24% during 3Q14.
|
Revenue Breakdown by Geometry | |||||
|
Geometry |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
|
28nm and below |
3% |
1% |
0% |
0% |
0% |
|
28nm<x<=40nm |
24% |
21% |
20% |
24% |
20% |
|
40nm<x<=65nm |
26% |
31% |
31% |
29% |
34% |
|
65nm<x<=90nm |
7% |
6% |
7% |
7% |
6% |
|
90nm<x<=0.13um |
14% |
13% |
14% |
14% |
16% |
|
0.13um<x<=0.18um |
12% |
13% |
12% |
12% |
11% |
|
0.18um<x<=0.35um |
11% |
12% |
12% |
11% |
10% |
|
0.5um and above |
3% |
3% |
4% |
3% |
3% |
3Q14 Revenue from fabless customers increased to 91%.
|
Revenue Breakdown by Customer Type | |||||
|
Customer Type |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
|
Fabless |
91% |
90% |
92% |
89% |
86% |
|
IDM |
9% |
10% |
8% |
11% |
14% |
The communication segment represented 54% of revenue in 3Q14, demonstrating the robust demand in handset and tablet devices.
|
Revenue Breakdown by Application (1) | |||||
|
Application |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
|
Computer |
15% |
18% |
18% |
15% |
16% |
|
Communication |
54% |
49% |
46% |
49% |
52% |
|
Consumer |
28% |
29% |
31% |
31% |
28% |
|
Others |
3% |
4% |
5% |
5% |
4% |
|
(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. |
|
|
|
[2] Revenue in this section represents wafer sales |
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained flat in 3Q14.
(To view ASP trend, visit
http://www.umc.com/english/investors/3Q14_ASP_trend.asp)
Shipment and Utilization Rate[3] for Foundry Segment
Wafer shipments increased 2.5% quarterly to 1,462K in 3Q14, bringing overall utilization rate to 93%.
|
Wafer Shipments | |||||
|
|
3Q14 |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
|
Wafer Shipments |
1,462 |
1,426 |
1,258 |
1,236 |
1,329 |
|
(8" K equivalents) | |||||
|
| |||||
|
Quarterly Capacity Utilization Rate | |||||
|
|
3Q14 |
2Q14 |
1Q14 |
4Q13 |
3Q13 |
|
Utilization Rate |
93% |
90% |
81% |
79% |
87% |
|
Total Capacity |
1,586 |
1,597 |
1,563 |
1,560 |
1,548 |
|
(8" K equivalents) | |||||
|
[3] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity |
Capacity[4] for Foundry Segment
Capacity during the third quarter was 1,586K 8-inch equivalent wafers. The difference of 11K 8-inch equivalent wafers during 3Q14 compared to 2Q14 was primarily due to the change in capacity profile at Fab8D and the capacity upgrades at Fab12i. Fourth quarter¡¦s estimated capacity will be approximately 1,577K 8-inch equivalent wafer, the net result of 28nm capacity expansion at Fab12A with current capacity upgrades at Fab12i.
|
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers | ||||||||||
|
FAB |
Geometry
|
2013 |
2012 |
2011 |
2010 |
|
FAB |
4Q14E |
3Q14 |
2Q14 |
1Q14 | |
|
Fab6A |
6" |
3.5 - 0.45 |
448 |
481 |
538 |
588 |
|
Fab6A |
113 |
113 |
113 |
111 |
|
Fab8A |
8" |
0.5 - 0.25 |
813 |
815 |
813 |
816 |
|
Fab8A |
204 |
204 |
204 |
201 |
|
Fab8C |
8" |
0.35 - 0.11 |
347 |
360 |
359 |
366 |
|
Fab8C |
87 |
87 |
87 |
86 |
|
Fab8D |
8" |
0.13 - 0.09 |
382 |
371 |
364 |
314 |
|
Fab8D |
86 |
86 |
93 |
94 |
|
Fab8E |
8" |
0.5 - 0.18 |
418 |
449 |
469 |
410 |
|
Fab8E |
105 |
105 |
105 |
103 |
|
Fab8F |
8" |
0.18 - 0.11 |
388 |
389 |
388 |
388 |
|
Fab8F |
98 |
98 |
98 |
96 |
|
Fab8S |
8" |
0.18 - 0.11 |
335 |
348 |
307 |
304 |
|
Fab8S |
84 |
84 |
84 |
83 |
|
Fab8N |
8" |
0.5 -0.13 |
469 |
- |
- |
- |
|
Fab8N |
140 |
140 |
140 |
126 |
|
Fab12A |
12" |
0.18 - 0.028 |
651 |
579 |
501 |
374 |
|
Fab12A |
180 |
174 |
174 |
171 |
|
Fab12i |
12" |
0.13 - 0.040 |
550 |
537 |
530 |
454 |
|
Fab12i |
135 |
145 |
147 |
145 |
|
Total(1) |
6,107 |
5,514 |
5,322 |
4,791 |
|
Total |
1,577 |
1,586 |
1,597 |
1,563 | ||
| YoY Growth Rate |
11% |
4% |
11% |
4% |
| |||||||
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2010~2012 figures account for UMC parent company only. | ||||||||||||
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| ||||||||||||
|
(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
The foundry capital expenditure for 2014 will be US$1.3 billion. Spending during the first nine months of 2014 in the foundry segment was US$885 million.
|
Capital Expenditure by Year- in US$ billion | |||||
|
Year |
2013 |
2012 |
2011 |
2010 |
2009 |
|
CAPEX |
$1.10 |
$1.70 |
$1.60 |
$1.80 |
$0.55 |
|
| |||||
|
2009~2012 figures account for UMC parent company only. | |||||
|
2014 CAPEX Plan | ||
|
8" |
12" |
Total |
|
12% |
88% |
US$ 1.3 billion |
|
[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. |
Fourth Quarter of 2014 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Foundry Segment Wafer Shipment: To decrease by approximately 3%
- Foundry Segment ASP in US$: To increase by approximately 1%
- Foundry Segment Profitability: Gross margin will be in the mid-20 percentage range
- Foundry Segment Capacity Utilization: Approximately 90%
- Expect to recognize approximately US$50mn from Fujitsu for 40nm licensing fee
- Guidance to New Business Segment: Revenue to be approximately NT$2.5bn and net loss attributable to UMC parent company to be approximately NT$400mn
Recent Developments / Announcements
|
Oct. 28, 2014 |
|
|
Oct. 09, 2014 |
UMC Board Resolves to Enter a Joint Venture Agreement for a 12" Fab in China |
|
Sep. 16, 2014 |
UMC Selected as a DJSI Global Component for Seventh Consecutive Year |
|
Sep. 03, 2014 |
NJR Analog ICs Manufactured at UMC Adopted by Major Japanese Auto OEM |
|
Aug. 29, 2014 |
|
|
Aug. 08, 2014 |
UMC Again Earns Top 10 Ranking for Corporate Citizenship by Taiwan's CommonWealth Magazine |
|
Aug. 06, 2014 |
NJR and UMC Extends Collaboration to MEMS Microphone Manufacturing |
|
Jul. 30, 2014 |
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, October 29, 2014
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 AM (London)
Dial-in numbers and Access Codes:
|
USA Toll Free: |
1-800 871-3110, 1-888 700-7397 |
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Taiwan Number: |
02-2192-8016 |
|
Other Areas: |
+886-2-2192-8016 |
|
|
|
|
Access Code: |
UMC |
A live webcast and replay of the 3Q14 results announcement will be available at http://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 September 30, 2014 | ||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||
|
|
|
|
|
|
| |||
|
|
|
|
|
|
| |||
|
|
September 30, 2014 | |||||||
|
|
US$ |
|
NT$ |
|
% | |||
|
Assets |
|
|
|
|
| |||
|
Current assets |
|
|
|
|
| |||
|
Cash and cash equivalents |
1,406 |
|
42,744 |
|
14.2% | |||
|
Financial assets at fair value through profit or loss, current |
21 |
|
649 |
|
0.2% | |||
|
Available-for-sale financial assets, current |
72 |
|
2,190 |
|
0.7% | |||
|
Notes & Accounts receivable, net |
721 |
|
21,932 |
|
7.3% | |||
|
Inventories, net |
471 |
|
14,310 |
|
4.8% | |||
|
Other current assets |
328 |
|
9,977 |
|
3.3% | |||
|
Total current assets |
3,019 |
|
91,802 |
|
30.5% | |||
|
|
|
|
|
|
| |||
|
Non-current assets |
|
|
|
|
| |||
|
Funds and investments |
1,093 |
|
33,236 |
|
11.0% | |||
|
Property, plant and equipment |
5,343 |
|
162,474 |
|
54.0% | |||
|
Other non-current assets |
437 |
|
13,310 |
|
4.5% | |||
|
Total non-current assets |
6,873 |
|
209,020 |
|
69.5% | |||
|
Total assets |
9,892 |
|
300,822 |
|
100.0% | |||
|
|
|
|
|
|
| |||
|
Liabilities |
|
|
|
|
| |||
|
Current liabilities |
|
|
|
|
| |||
|
Short-term loans |
233 |
|
7,075 |
|
2.4% | |||
|
Financial liabilities at fair value through profit or loss, current |
0 |
|
8 |
|
0.0% | |||
|
Payables |
963 |
|
29,271 |
|
9.7% | |||
|
Current portion of long-term liabilities |
269 |
|
8,188 |
|
2.7% | |||
|
Other current liabilities |
29 |
|
902 |
|
0.3% | |||
|
Total current liabilities |
1,494 |
|
45,444 |
|
15.1% | |||
|
|
|
|
|
|
| |||
|
Non-current liabilities |
|
|
|
|
| |||
|
Bonds payable |
821 |
|
24,977 |
|
8.3% | |||
|
Long-term loans |
231 |
|
7,008 |
|
2.4% | |||
|
Other non-current liabilities |
230 |
|
7,001 |
|
2.3% | |||
|
Total non-current liabilities |
1,282 |
|
38,986 |
|
13.0% | |||
|
Total liabilities |
2,776 |
|
84,430 |
|
28.1% | |||
|
|
|
|
|
|
| |||
|
Equity |
|
|
|
|
| |||
|
Equity attributable to the parent company |
|
|
|
|
| |||
|
Capital |
4,184 |
|
127,248 |
|
42.3% | |||
|
Additional paid-in capital |
1,296 |
|
39,418 |
|
13.1% | |||
|
Retained earnings, unrealized gain or loss on available-for-sale
|
1,587 |
|
48,244 |
|
16.0% | |||
|
Treasury stock |
(78) |
|
(2,365) |
|
(0.8%) | |||
|
Total equity attributable to the parent company |
6,989 |
|
212,545 |
|
70.6% | |||
|
Non-controlling interests |
127 |
|
3,847 |
|
1.3% | |||
|
Total equity |
7,116 |
|
216,392 |
|
71.9% | |||
|
Total liabilities and equity |
9,892 |
|
300,822 |
|
100.0% | |||
|
|
|
|
|
|
| |||
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT
| ||||||||
|
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 |
|
| ||||||||||||
|
|
September 30, 2014 |
|
September 30, 2013 |
|
% |
|
September 30, 2014 |
|
June 30, 2014 |
|
% | ||||||||
|
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
Net operating revenues |
1,158 |
|
35,214 |
|
1,099 |
|
33,407 |
|
5.4% |
|
1,158 |
|
35,214 |
|
1,180 |
|
35,869 |
|
(1.8%) |
|
Operating costs |
(909) |
|
(27,655) |
|
(858) |
|
(26,070) |
|
6.1% |
|
(909) |
|
(27,655) |
|
(910) |
|
(27,662) |
|
(0.0%) |
|
Gross profit |
249 |
|
7,559 |
|
241 |
|
7,337 |
|
3.0% |
|
249 |
|
7,559 |
|
270 |
|
8,207 |
|
(7.9%) |
|
|
21.5% |
|
21.5% |
|
22.0% |
|
22.0% |
|
|
|
21.5% |
|
21.5% |
|
22.9% |
|
22.9% |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(32) |
|
(957) |
|
(26) |
|
(778) |
|
23.0% |
|
(32) |
|
(957) |
|
(36) |
|
(1,097) |
|
(12.8%) |
|
- General and administrative expenses |
(28) |
|
(845) |
|
(28) |
|
(854) |
|
(1.1%) |
|
(28) |
|
(845) |
|
(28) |
|
(857) |
|
(1.4%) |
|
- Research and development expenses |
(114) |
|
(3,468) |
|
(107) |
|
(3,262) |
|
6.3% |
|
(114) |
|
(3,468) |
|
(110) |
|
(3,326) |
|
4.3% |
|
Subtotal |
(174) |
|
(5,270) |
|
(161) |
|
(4,894) |
|
7.7% |
|
(174) |
|
(5,270) |
|
(174) |
|
(5,280) |
|
(0.2%) |
|
Net other operating income and expenses |
(20) |
|
(602) |
|
(1) |
|
(48) |
|
100.0% |
|
(20) |
|
(602) |
|
(0) |
|
(10) |
|
100.0% |
|
Operating income |
55 |
|
1,687 |
|
79 |
|
2,395 |
|
(29.6%) |
|
55 |
|
1,687 |
|
96 |
|
2,917 |
|
(42.2%) |
|
|
4.8% |
|
4.8% |
|
7.2% |
|
7.2% |
|
|
|
4.8% |
|
4.8% |
|
8.1% |
|
8.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
43 |
|
1,305 |
|
51 |
|
1,561 |
|
(16.4%) |
|
43 |
|
1,305 |
|
31 |
|
937 |
|
39.3% |
|
Income from continuing operations before income tax |
98 |
|
2,992 |
|
130 |
|
3,956 |
|
(24.4%) |
|
98 |
|
2,992 |
|
127 |
|
3,854 |
|
(22.4%) |
|
|
8.5% |
|
8.5% |
|
11.8% |
|
11.8% |
|
|
|
8.5% |
|
8.5% |
|
10.7% |
|
10.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(13) |
|
(413) |
|
(19) |
|
(590) |
|
(30.0%) |
|
(13) |
|
(413) |
|
(18) |
|
(528) |
|
(21.8%) |
|
Net income |
85 |
|
2,579 |
|
111 |
|
3,366 |
|
(23.4%) |
|
85 |
|
2,579 |
|
109 |
|
3,326 |
|
(22.5%) |
|
|
7.3% |
|
7.3% |
|
10.1% |
|
10.1% |
|
|
|
7.3% |
|
7.3% |
|
9.3% |
|
9.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
(50) |
|
(1,501) |
|
(74) |
|
(2,249) |
|
(33.3%) |
|
(50) |
|
(1,501) |
|
4 |
|
103 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
35 |
|
1,078 |
|
37 |
|
1,117 |
|
(3.5%) |
|
35 |
|
1,078 |
|
113 |
|
3,429 |
|
(68.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
96 |
|
2,916 |
|
114 |
|
3,476 |
|
(16.1%) |
|
96 |
|
2,916 |
|
115 |
|
3,482 |
|
(16.3%) |
|
Non-controlling interests |
(11) |
|
(337) |
|
(3) |
|
(110) |
|
100.0% |
|
(11) |
|
(337) |
|
(6) |
|
(156) |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
45 |
|
1,372 |
|
41 |
|
1,255 |
|
9.3% |
|
45 |
|
1,372 |
|
120 |
|
3,636 |
|
(62.3%) |
|
Non-controlling interests |
(10) |
|
(294) |
|
(4) |
|
(138) |
|
100.0% |
|
(10) |
|
(294) |
|
(7) |
|
(207) |
|
42.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.008 |
|
0.23 |
|
0.009 |
|
0.28 |
|
|
|
0.008 |
|
0.23 |
|
0.009 |
|
0.28 |
|
|
|
Earnings per ADS (2) |
0.038 |
|
1.15 |
|
0.046 |
|
1.40 |
|
|
|
0.038 |
|
1.15 |
|
0.046 |
|
1.40 |
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (in millions) |
|
|
12,501 |
|
|
|
12,460 |
|
|
|
|
|
12,501 |
|
|
|
12,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar. All figures are prepared in accordance with TIFRSs. | |||||||||||||||||||
|
(2) 1 ADS equals 5 common shares. | |||||||||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
|
Except Per Share and Per ADS Data | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Nine-Month Period Ended | ||||||||
|
|
September 30, 2014 |
|
September 30, 2014 | ||||||||
|
|
US$ |
|
NT$ |
|
% |
|
US$ |
|
NT$ |
|
% |
|
Net operating revenues |
1,158 |
|
35,214 |
|
100.0% |
|
3,380 |
|
102,777 |
|
100.0% |
|
Operating costs |
(909) |
|
(27,655) |
|
(78.5%) |
|
(2,668) |
|
(81,110) |
|
(78.9%) |
|
Gross profit |
249 |
|
7,559 |
|
21.5% |
|
712 |
|
21,667 |
|
21.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(32) |
|
(957) |
|
(2.7%) |
|
(95) |
|
(2,888) |
|
(2.8%) |
|
- General and administrative expenses |
(28) |
|
(845) |
|
(2.4%) |
|
(84) |
|
(2,549) |
|
(2.5%) |
|
- Research and development expenses |
(114) |
|
(3,468) |
|
(9.9%) |
|
(333) |
|
(10,129) |
|
(9.9%) |
|
Subtotal |
(174) |
|
(5,270) |
|
(15.0%) |
|
(512) |
|
(15,566) |
|
(15.2%) |
|
Net other operating income and expenses |
(20) |
|
(602) |
|
(1.7%) |
|
(18) |
|
(557) |
|
(0.5%) |
|
Operating income |
55 |
|
1,687 |
|
4.8% |
|
182 |
|
5,544 |
|
5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
43 |
|
1,305 |
|
3.7% |
|
86 |
|
2,594 |
|
2.5% |
|
Income from continuing operations before income tax |
98 |
|
2,992 |
|
8.5% |
|
268 |
|
8,138 |
|
7.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(13) |
|
(413) |
|
(1.2%) |
|
(37) |
|
(1,122) |
|
(1.1%) |
|
Net income |
85 |
|
2,579 |
|
7.3% |
|
231 |
|
7,016 |
|
6.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
(50) |
|
(1,501) |
|
(4.2%) |
|
90 |
|
2,731 |
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
35 |
|
1,078 |
|
3.1% |
|
321 |
|
9,747 |
|
9.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
96 |
|
2,916 |
|
8.3% |
|
249 |
|
7,578 |
|
7.4% |
|
Non-controlling interests |
(11) |
|
(337) |
|
(1.0%) |
|
(18) |
|
(562) |
|
(0.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
45 |
|
1,372 |
|
3.9% |
|
338 |
|
10,269 |
|
10.0% |
|
Non-controlling interests |
(10) |
|
(294) |
|
(0.8%) |
|
(17) |
|
(522) |
|
(0.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.008 |
|
0.23 |
|
|
|
0.020 |
|
0.61 |
|
|
|
Earnings per ADS (2) |
0.038 |
|
1.15 |
|
|
|
0.100 |
|
3.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
12,501 |
|
|
|
|
|
12,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar. All figures are prepared in accordance with TIFRSs. (2) 1 ADS equals 5 common shares. | |||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
|
Consolidated Condensed Statement of Cash Flows | ||||
|
For The Nine-Month Period Ended September 30, 2014 | ||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
|
|
|
|
|
|
|
|
USD |
|
NTD |
|
|
Cash flows from operating activities : |
|
|
|
|
|
Net income before tax |
268 |
|
8,138 |
|
|
Depreciation & Amortization |
986 |
|
29,994 |
|
|
Impairment loss on financial assets |
8 |
|
257 |
|
|
Impairment loss on non-financial assets |
20 |
|
597 |
|
|
Gain on disposal of investments |
(57) |
|
(1,739) |
|
|
Changes in notes & accounts receivable |
(167) |
|
(5,084) |
|
|
Changes in other current assets |
(158) |
|
(4,796) |
|
|
Changes in assets, liabilities and others |
(47) |
|
(1,415) |
|
|
Net cash provided by operating activities |
853 |
|
25,952 |
|
|
|
|
|
|
|
|
Cash flows from investing activities : |
|
|
|
|
|
Acquisition of available-for-sales financial assets |
(5) |
|
(167) |
|
|
Proceeds from disposal of available-for-sale financial assets |
72 |
|
2,199 |
|
|
Acquisition of financial assets measured at cost |
(24) |
|
(747) |
|
|
Proceeds from sale of financial assets measured at cost |
22 |
|
674 |
|
|
Acquisition ofinvestments accounted for under the equity method |
(4) |
|
(121) |
|
|
Acquisition of property, plant and equipment |
(889) |
|
(27,029) |
|
|
Proceeds from disposal of property, plant and equipment |
8 |
|
253 |
|
|
Acquisition of intangible assets |
(29) |
|
(871) |
|
|
Others |
(0) |
|
(7) |
|
|
Net cash used in investing activities |
(849) |
|
(25,816) |
|
|
|
|
|
|
|
|
Cash flows from financing activities : |
|
|
|
|
|
Increase in short-term loans |
78 |
|
2,364 |
|
|
Proceeds from bonds issued |
164 |
|
5,000 |
|
|
Redemption of bonds |
(339) |
|
(10,306) |
|
|
Proceeds from long-term loans |
60 |
|
1,824 |
|
|
Repayments of long-term loans |
(57) |
|
(1,735) |
|
|
Cash dividends and cash paid from additional paid-in capital |
(206) |
|
(6,253) |
|
|
Others |
14 |
|
419 |
|
|
Net cash used in financing activities |
(286) |
|
(8,687) |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
16 |
|
464 |
|
|
Net decrease in cash and cash equivalents |
(266) |
|
(8,087) |
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
1,672 |
|
50,831 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
1,406 |
|
42,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 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. 16900
Email Contact /
Email Contact
SOURCE United Microelectronics Corporation
| Contact: |
| United Microelectronics Corporation
Web: http://www.umc.com/english/investors/3Q14_ASP_trend.asp |