UMC Reports Second Quarter 2017 Results

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 introduction of new services and technologies, future outsourcing, competition, wafer capacity, 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. 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 United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States 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) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) 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 natural disasters, 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 United States Securities and Exchange Commission. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and 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 Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or 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 generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.

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.

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, 2017, the three-month period ending Mar. 31, 2017, and the equivalent three-month period that ended Jun. 30, 2016. For all 2Q17 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun. 30, 2017 exchange rate of NT$ 30.42 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, 2017
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)


	June 30, 2017
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	2,240		68,134		17.7	%
Financial assets at fair value through profit or loss, current	26		800		0.2	%
Notes & Accounts receivable, net	731		22,226		5.8	%
Inventories, net	535		16,285		4.2	%
Other current assets	415		12,633		3.2	%
Total current assets	3,947		120,078		31.1	%

Non-current assets
Funds and investments	1,180		35,907		9.3	%
Property, plant and equipment	6,994		212,772		55.1	%
Other non-current assets	562		17,060		4.5	%
Total non-current assets	8,736		265,739		68.9	%
Total assets	12,683		385,817		100.0	%

Liabilities
Current liabilities
Short-term loans	726		22,088		5.7	%
Financial liabilities at fair value through profit or loss, current	3		85		0.0	%
Payables	923		28,072		7.2	%
Dividends payable	201		6,112		1.6	%
Current portion of long-term liabilities	858		26,105		6.8	%
Other current liabilities	172		5,234		1.4	%
Total current liabilities	2,883		87,696		22.7	%

Non-current liabilities
Bonds payable	601		18,280		4.7	%
Long-term loans	1,083		32,957		8.5	%
Other non-current liabilities	1,108		33,688		8.8	%
Total non-current liabilities	2,792		84,925		22.0	%
Total liabilities	5,675		172,621		44.7	%

Equity
Equity attributable to the parent company
Capital	4,150		126,243		32.7	%
Additional paid-in capital	1,343		40,854		10.6	%
Retained earnings, unrealized gain or loss on available-for-sale financial assets and exchange differences on translation of foreign operations	1,640		49,887		12.9	%
Treasury stock	(155	)	(4,719	)	(1.2	%)
Total equity attributable to the parent company	6,978		212,265		55.0	%
Non-controlling interests	30		931		0.3	%
Total equity	7,008		213,196		55.3	%
Total liabilities and equity	12,683		385,817		100.0	%


Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2017 exchange rate of NT $30.42 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, 2017				June 30, 2016				Chg.		June 30, 2017				March 31, 2017				Chg.
	US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Net operating revenues	1,234		37,538		1,216		36,997		1.5	%	1,234		37,538		1,230		37,418		0.3	%
Operating costs	(1,012	)	(30,799	)	(944	)	(28,712	)	7.3	%	(1,012	)	(30,799	)	(986	)	(29,990	)	2.7	%
Gross profit	222		6,739		272		8,285		(18.7	%)	222		6,739		244		7,428		(9.3	%)
	18.0	%	18.0	%	22.4	%	22.4	%			18.0	%	18.0	%	19.9	%	19.9	%
Operating expenses
- Sales and marketing expenses	(34	)	(1,049	)	(36	)	(1,092	)	(3.9	%)	(34	)	(1,049	)	(38	)	(1,170	)	(10.3	%)
- General and administrative expenses	(34	)	(1,035	)	(50	)	(1,541	)	(32.8	%)	(34	)	(1,035	)	(35	)	(1,050	)	(1.4	%)
- Research and development expenses	(107	)	(3,246	)	(106	)	(3,226	)	0.6	%	(107	)	(3,246	)	(131	)	(3,991	)	(18.7	%)
Subtotal	(175	)	(5,330	)	(192	)	(5,859	)	(9.0	%)	(175	)	(5,330	)	(204	)	(6,211	)	(14.2	%)
Net other operating income and expenses	8		259		1		23		1,026.1	%	8		259		5		154		68.2	%
Operating income	55		1,668		81		2,449		(31.9	%)	55		1,668		45		1,371		21.7	%
	4.4	%	4.4	%	6.6	%	6.6	%			4.4	%	4.4	%	3.7	%	3.7	%

Net non-operating income and expenses	15		448		(22	)	(650	)	-		15		448		(10	)	(304	)	-
Income from continuing operations before income tax	70		2,116		59		1,799		17.6	%	70		2,116		35		1,067		98.3	%
	5.6	%	5.6	%	4.9	%	4.9	%			5.6	%	5.6	%	2.9	%	2.9	%

Income tax benefit (expense)	(21	)	(638	)	(7	)	(220	)	190.0	%	(21	)	(638	)	14		430		-
Net income	49		1,478		52		1,579		(6.4	%)	49		1,478		49		1,497		(1.3	%)
	3.9	%	3.9	%	4.3	%	4.3	%			3.9	%	3.9	%	4.0	%	4.0	%

Other comprehensive income (loss)	45		1,396		(32	)	(977	)	-		45		1,396		(98	)	(2,997	)	-

Total comprehensive income (loss)	94		2,874		20		602		377.4	%	94		2,874		(49	)	(1,500	)	-

Net income attributable to:
Stockholders of the parent	69		2,099		85		2,583		(18.7	%)	69		2,099		75		2,286		(8.2	%)
Non-controlling interests	(20	)	(621	)	(33	)	(1,004	)	(38.1	%)	(20	)	(621	)	(26	)	(789	)	(21.3	%)

Comprehensive income (loss) attributable to:
Stockholders of the parent	115		3,488		54		1,635		113.3	%	115		3,488		(20	)	(599	)	-
Non-controlling interests	(21	)	(614	)	(34	)	(1,033	)	(40.6	%)	(21	)	(614	)	(29	)	(901	)	(31.9	%)

Earnings per share-basic	0.006		0.17		0.007		0.21				0.006		0.17		0.006		0.19
Earnings per ADS ⁽²⁾	0.028		0.85		0.035		1.05				0.028		0.85		0.031		0.95
Weighted average number of shares
outstanding (in millions)			12,208				12,335						12,208				12,208


Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2017 exchange rate of NT $30.42 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, 2017						June 30, 2017
	US$		NT$		%		US$		NT$		%
Net operating revenues	1,234		37,538		100.0	%	2,464		74,956		100.0	%
Operating costs	(1,012	)	(30,799	)	(82.0	%)	(1,998	)	(60,788	)	(81.1	%)
Gross profit	222		6,739		18.0	%	466		14,168		18.9	%


Operating expenses
- Sales and marketing expenses	(34	)	(1,049	)	(2.8	%)	(73	)	(2,220	)	(3.0	%)
- General and administrative expenses	(34	)	(1,035	)	(2.8	%)	(68	)	(2,085	)	(2.8	%)
- Research and development expenses	(107	)	(3,246	)	(8.6	%)	(238	)	(7,237	)	(9.6	%)
Subtotal	(175	)	(5,330	)	(14.2	%)	(379	)	(11,542	)	(15.4	%)
Net other operating income and expenses	8		259		0.6	%	13		412		0.6	%
Operating income	55		1,668		4.4	%	100		3,038		4.1	%

Net non-operating income and expenses	15		448		1.2	%	5		146		0.1	%
Income from continuing operations before income tax	70		2,116		5.6	%	105		3,184		4.2	%


Income tax expense	(21	)	(638	)	(1.7	%)	(7	)	(209	)	(0.2	%)
Net income	49		1,478		3.9	%	98		2,975		4.0	%

Other comprehensive income (loss)	45		1,396		3.8	%	(53	)	(1,601	)	(2.2	%)

Total comprehensive income (loss)	94		2,874		7.7	%	45		1,374		1.8	%

Net income attributable to:
Stockholders of the parent	69		2,099		5.6	%	144		4,385		5.9	%
Non-controlling interests	(20	)	(621	)	(1.7	%)	(46	)	(1,410	)	(1.9	%)

Comprehensive income (loss) attributable to:
Stockholders of the parent	115		3,488		9.3	%	95		2,888		3.9	%
Non-controlling interests	(21	)	(614	)	(1.6	%)	(50	)	(1,514	)	(2.1	%)

Earnings per share-basic	0.006		0.17				0.012		0.36
Earnings per ADS ⁽²⁾	0.028		0.85				0.059		1.80

Weighted average number of shares outstanding (in millions)			12,208						12,208

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2017 exchange rate of NT $30.42 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, 2017
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	US$		NT$
Cash flows from operating activities :
Net income before tax	105		3,184
Depreciation & Amortization	867		26,385
Gain on disposal of investments	(25	)	(761	)
Exchange gain on financial assets and liabilities	(41	)	(1,249	)
Changes in other current assets	(25	)	(764	)
Changes in other current liabilities	41		1,239
Changes in assets, liabilities and others	3		94
Net cash provided by operating activities	925		28,128

Cash flows from investing activities :
Acquisition of available-for-sale financial assets	(23	)	(691	)
Proceeds from disposal of available-for-sale financial assets	42		1,284
Proceeds from capital reduction and liquidation of investments	65		1,980
Acquisition of property, plant and equipment	(854	)	(25,987	)
Acquisition of intangible assets	(22	)	(673	)
Others	(10	)	(311	)
Net cash used in investing activities	(802	)	(24,398	)

Cash flows from financing activities :
Increase in short-term loans	86		2,604
Proceeds from bonds issued	273		8,300
Redemption of bonds	(247	)	(7,500	)
Proceeds from long-term loans	306		9,308
Repayments of long-term loans	(101	)	(3,076	)
Acquisition of subsidiaries	(40	)	(1,228	)
Others	4		144
Net cash provided by financing activities	281		8,552

Effect of exchange rate changes on cash and cash equivalents	(57	)	(1,727	)
Net Increase in cash and cash equivalents	347		10,555

Cash and cash equivalents at beginning of period	1,893		57,579

Cash and cash equivalents at end of period	2,240		68,134


Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2017 exchange rate of NT $30.42 per U.S. Dollar.

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 Next Page »