4Q revenue from 40nm and below reached 24%, 2013 full-year EPS NT1.01
(PRNewswire) —Fourth Quarter 2013 Overview[1]:
- Revenue: NT$30.72 billion (US$1.03 billion)
- Gross margin: 18.1%; operating margin: 0.6%
- Foundry capacity utilization rate: 79%
- Net income attributable to the stockholders of the parent: NT$0.75 billion (US$25 million)
- Earnings per share: NT$0.06; earnings per ADS: US$0.010
|
[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Dec 31, 2013, the three-month period ending Sep 30, 2013, and the equivalent three-month period that ended Dec 31, 2012. For all 4Q13 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2013 exchange rate of NT$ 29.85 per U.S. Dollar. |
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2013.
Revenue was NT$30.72 billion, with gross margin at 18.1% and operating margin at 0.6%. Net income attributable to the stockholders of the parent was NT$0.75 billion, with earnings per ordinary share of NT$0.06.
Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter of 2013, UMC recorded NT$28.58 billion in revenue from the foundry segment, with operating margin from foundry operations of 2.7%. Wafer shipments reached 1.236 million 8-inch equivalent wafers, bringing overall capacity utilization to 79%."
CEO Yen added, "During the fourth quarter of 2013, our 40nm and below business represented 24% of UMC sales. This continued growth demonstrates the strength of our 40nm platform, which has been adopted by numerous customers from a wide range of diversified markets. We also continue to achieve new milestones for our specialty technologies, recently surpassing 15 million IC shipments for our 55nm embedded high-voltage process in just one year. Our engineering teams have further miniaturized the SRAM cell for this process to power today's highest resolution smartphones, continuously pushing the boundaries of specialty technologies in 55nm and beyond. For 28nm, we have made significant strides on our 28nm status to become a competitive foundry supplier, bolstered by yield improvement that has helped us secure additional design wins. To further strengthen our 28nm design platform, we now offer ARM Artisan physical IP for our 28HLP, UMC's 28nm high performance, low power process that optimally balances die size, speed and leakage performance to target low power applications. This collaboration adds ARM's POP IP core hardening acceleration technology to shorten time-to-market through proven, rigorous silicon validation for our customers designing into 28HLP."
CEO Yen continued, "For the first quarter, we anticipate softer business due to normal early-year seasonality. In 2014, we are optimistic that UMC will benefit from product design wins across a broad spectrum of the semiconductor industry. We will leverage our manufacturing excellence and deploy capacity expansion not only for 28nm HK/MG lines, but also for upgrades at our 8" and 12" fabs to fulfill emerging requirements. As such, UMC's CAPEX for 2014 will be approximately US$1.1 billion to US$1.3 billion. This investment will help UMC to expand economies of scale to drive down manufacturing costs and achieve a prolonged structural increase in productivity. These efforts will propel UMC's market share growth in leading-edge technologies and further expand our presence in the specialty segment, strengthening our position in the foundry industry."
Summary of Operating Results
|
Operating Results | |||||
|
(Amount: NT$ million) |
4Q13 |
3Q13 |
QoQ %
|
4Q12 |
YoY %
|
|
Net Operating Revenues |
30,719 |
33,407 |
(8.0) |
28,854 |
6.5 |
|
Gross Profit |
5,557 |
7,337 |
(24.3) |
3,225 |
72.3 |
|
Operating Expenses |
(5,317) |
(4,894) |
8.6 |
(3,950) |
34.6 |
|
Net Other Operating Income and Expenses |
(46) |
(48) |
(4.2) |
(125) |
(63.2) |
|
Operating Income |
194 |
2,395 |
(91.9) |
(850) |
- |
|
Net Non-Operating Income and Expenses |
889 |
1,561 |
(43.0) |
1,380 |
(35.6) |
|
Net Income Attributable to the Stockholders of the Parent |
749 |
3,476 |
(78.5) |
739 |
1.4 |
|
EPS (NT$ per share) |
0.06 |
0.28 |
|
0.06 |
|
|
(US$ per ADS[2]) |
0.010 |
0.047 |
|
0.010 |
|
|
| |||||
|
[2] One ADS represents five Taiwan-listed ordinary shares. | |||||
Revenue decreased 8.0% QoQ to NT$30.72 billion from NT$33.41 billion in 3Q13, and increased 6.5% YoY from NT$28.85 billion in 4Q12. Gross profit was NT$5.56 billion, or 18.1% of revenue, compared to NT$7.34 billion, or 22.0% of 3Q13 revenue. Operating income for the quarter was NT$0.19 billion, or 0.6% of revenue, compared to operating income of NT$2.40 billion, or 7.2% of 3Q13 revenue. Net income attributable to the stockholders of the parent in 4Q13 was NT$0.75 billion, compared to NT$3.48 billion in 3Q13.
Earnings per ordinary share for the quarter were NT$0.06. Earnings per ADS were US$0.010. The basic weighted average number of outstanding shares in 4Q13 was 12,476,082,332, compared with 12,459,978,088 shares in 3Q13 and 12,635,635,936 shares in 4Q12. The diluted weighted average number of outstanding shares was 13,243,379,446 in 4Q13, compared with 13,201,315,449 shares in 3Q13 and 13,379,741,687 shares in 4Q12. The fully diluted share count on December 31, 2013 was approximately 13,336,571,000. On December 31, 2013, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Revenue decreased 8.0% QoQ to NT$30.72 billion from NT$33.41 billion in 3Q13, mainly due to decrease in ASP and wafer shipments. Total operating expenses increased by 8.6% to NT$5.32 billion. Sales and Marketing expenses increased 16.5% to NT$906 million mainly from increased IP and mask expenditures. Research & development expenses increased to NT$3.59 billion including year-end advanced tool maintenance expenditures and an increase in R&D wafers.
|
COGS & Expenses | |||||
|
(Amount: NT$ million) |
4Q13 |
3Q13 |
QoQ %
|
4Q12 |
YoY %
|
|
Net Operating Revenues |
30,719 |
33,407 |
(8.0) |
28,854 |
6.5 |
|
COGS |
(25,162) |
(26,070) |
(3.5) |
(25,629) |
(1.8) |
|
Depreciation |
(7,939) |
(8,151) |
(2.6) |
(7,516) |
5.6 |
|
Other Mfg. Costs |
(17,223) |
(17,919) |
(3.9) |
(18,113) |
(4.9) |
|
Gross Profit |
5,557 |
7,337 |
(24.3) |
3,225 |
72.3 |
|
Gross Margin (%) |
18.1% |
22.0% |
|
11.2% |
|
|
Operating Expenses |
(5,317) |
(4,894) |
8.6 |
(3,950) |
34.6 |
|
G&A |
(826) |
(854) |
(3.3) |
(783) |
5.5 |
|
Sales & Marketing |
(906) |
(778) |
16.5 |
(574) |
57.8 |
|
R&D |
(3,585) |
(3,262) |
9.9 |
(2,593) |
38.3 |
|
Net Other Operating Income & Expenses |
(46) |
(48) |
(4.2) |
(125) |
(63.2) |
|
Operating Income |
194 |
2,395 |
(91.9) |
(850) |
- |
Net non-operating income for 4Q13 was NT$889 million. Net investment loss was NT$394 million, due to the recognition of impairment charges from financial assets. Gain on disposal of investments was NT$985 million primarily due to UMCJ disposal.
|
Non-Operating Income and Expenses | |||
|
(Amount: NT$ million) |
4Q13 |
3Q13 |
4Q12 |
|
Non-Operating Income and Expenses |
889 |
1,561 |
1,380 |
|
Net Interest Income and Expenses |
(53) |
(77) |
(92) |
|
Net Investment Gain and Loss |
(394) |
639 |
(229) |
|
Gain and Loss on Disposal of Investment |
985 |
506 |
1,606 |
|
Exchange Gain and Loss |
114 |
53 |
(18) |
|
Other Gain and Loss |
237 |
440 |
113 |
Cash inflow from operations was NT$10.81 billion in 4Q13. Free cash flow in 4Q13 was NT$3.06 billion, as CAPEX spending in the quarter was NT$7.75 billion including NT$7.57 billion from the foundry segment. Cash outflow from financing was NT$2.79 billion, mainly due to the bonds redemption of NT$1.97 billion and loans repayment of NT$842 million. Net cash inflow was NT$496 million in 4Q13. Over the next 12 months, the company expects to repay NT$2.92 billion in bank loans.
|
Cash Flow Summary | ||
|
(Amount: NT$ million) |
For the 3-Month
Dec. 31, 2013 |
For the 3-Month
Sep. 30, 2013 |
|
Cash Flow from Operating Activities |
10,806 |
13,140 |
|
Net Income before tax |
1,083 |
3,956 |
|
Depreciation & Amortization |
9,568 |
9,495 |
|
Changes in Working Capital |
658 |
414 |
|
Other |
(503) |
(725) |
|
Cash Flow from Investing Activities |
(7,738) |
(10,722) |
|
Capital Expenditures |
(7,751) |
(10,015) |
|
Other |
13 |
(707) |
|
Cash Flow from Financing Activities |
(2,787) |
(4,467) |
|
Bank Loans |
(842) |
291 |
|
Redemption of Bonds |
(1,971) |
- |
|
Cash Dividends |
- |
(5,061) |
|
Other |
26 |
303 |
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
215 |
(478) |
|
Net Increase(Decrease) in Cash and Cash Equivalents |
496 |
(2,527) |
Cash and cash equivalents increased from NT$50.34 billion in 3Q13 to NT$50.83 billion in 4Q13. Days of inventory increased by one day to 51 days in 4Q13.
|
Current Assets | |||
|
(Amount: NT$ billion) |
4Q13 |
3Q13 |
4Q12 |
|
Cash and Cash Equivalents |
50.83 |
50.34 |
42.49 |
|
Notes & Accounts Receivable |
16.82 |
18.66 |
16.33 |
|
Days Sales Outstanding |
53 |
52 |
54 |
|
Inventories, net |
13.99 |
14.17 |
13.02 |
|
Days of Inventory |
51 |
50 |
47 |
|
Total Current Assets |
88.80 |
88.90 |
80.03 |
Current liabilities decreased to NT$48.20 billion, mainly reflecting the repayment of short-term credit/bonds and payment on equipment. Debt to equity ratio decreased to 39%.
|
Liabilities | |||
|
(Amount: NT$ billion) |
4Q13 |
3Q13 |
4Q12 |
|
Total Current Liabilities |
48.20 |
52.27 |
40.12 |
|
Notes & Accounts Payable |
7.41 |
7.62 |
6.27 |
|
Short-Term Credit / Bonds |
21.19 |
23.44 |
14.66 |
|
Payable on Equipment |
6.70 |
8.95 |
5.38 |
|
Other |
12.90 |
12.26 |
13.81 |
|
Long-Term Credit / Bonds |
28.42 |
28.80 |
32.15 |
|
Total Liabilities |
83.46 |
88.35 |
78.51 |
|
Debt to Equity |
39% |
42% |
38% |
Analysis of Revenue[3] for Foundry Segment
|
[3] Revenue in this section represents wafer sales |
Revenue contribution from North America and Europe both grew, representing 47% and 8%, respectively.
|
Revenue Breakdown by Region | |||||
|
Region |
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|
North America |
47% |
43% |
47% |
44% |
45% |
|
Asia Pacific |
41% |
44% |
42% |
46% |
45% |
|
Europe |
8% |
7% |
8% |
9% |
9% |
|
Japan |
4% |
6% |
3% |
1% |
1% |
|
| |||||
|
4Q12 figures account for UMC parent company only. | |||||
Revenue from 40nm and below technologies increased in 4Q13, representing 24% of sales. Advanced node revenue contribution from 65nm and below technologies accounted for 53% of revenue.
|
Revenue Breakdown by Geometry | |||||
|
Geometry |
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|
40nm and below |
24% |
20% |
20% |
18% |
15% |
|
40nm<x<=65nm |
29% |
34% |
31% |
32% |
40% |
|
65nm<x<=90nm |
7% |
6% |
6% |
6% |
7% |
|
90nm<x<=0.13um |
14% |
16% |
15% |
14% |
15% |
|
0.13um<x<=0.18um |
12% |
11% |
13% |
15% |
10% |
|
0.18um<x<=0.35um |
11% |
10% |
11% |
11% |
10% |
|
0.5um and above |
3% |
3% |
4% |
4% |
3% |
|
| |||||
|
4Q12 figures account for UMC parent company only. | |||||
The percentage of revenue from fabless customers increased to 89%.
|
Revenue Breakdown by Customer Type | |||||
|
Customer Type |
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|
Fabless |
89% |
86% |
90% |
90% |
90% |
|
IDM |
11% |
14% |
10% |
10% |
10% |
|
| |||||
|
4Q12 figures account for UMC parent company only. | |||||
The percentage of revenue from communication declined from 52% in 3Q13 to 49% in 4Q13, mainly due to the soft demand for wireless devices.
|
Revenue Breakdown by Application (1) | |||||
|
Application |
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|
Computer |
15% |
16% |
18% |
22% |
18% |
|
Communication |
49% |
52% |
51% |
47% |
50% |
|
Consumer |
31% |
28% |
28% |
28% |
29% |
|
Others |
5% |
4% |
3% |
3% |
3% |
|
| |||||
|
4Q12 figures account for UMC parent company only. | |||||
|
| |||||
|
(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. | |||||
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) during 4Q13 decreased slightly.
(To view ASP trend, visit
http://www.umc.com/english/investors/4Q13_ASP_trend.asp)
Shipment and Utilization Rate[4] for Foundry Segment
|
[4] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity |
Wafer shipments decreased 7% sequentially to 1,236K in 4Q13, compared to 1,329K 8-inch equivalent wafers in 3Q13. The drop in wafer shipments and the rise in total capacity resulted in an overall utilization rate of 79% for the quarter.
|
Wafer Shipments | |||||
|
|
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|
Wafer Shipments
|
1,236 |
1,329 |
1,307 |
1,125 |
1,069 |
|
| |||||
|
4Q12 figures account for UMC parent company only. | |||||
|
| |||||
|
Quarterly Capacity Utilization Rate | |||||
|
|
4Q13 |
3Q13 |
2Q13 |
1Q13 |
4Q12 |
|
Utilization Rate |
79% |
87% |
85% |
78% |
80% |
|
Total Capacity
|
1,560 |
1,548 |
1,537 |
1,461 |
1,401 |
|
| |||||
|
4Q12 figures account for UMC parent company only. | |||||
Capacity[5] for Foundry Segment
|
[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. |
Capacity during the fourth quarter was 1,560K 8-inch equivalent wafers. The incremental increase in capacity was due to the expansion at Fab12i. The estimated installed capacity for the first quarter of 2014 will be 1,563K 8-inch equivalent wafers due to the capacity expansion on advanced nodes at Fab12A.
|
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers | ||||||||||
|
FAB |
Geometry
|
2013 |
2012 |
2011 |
2010 |
|
FAB |
1Q14E |
4Q13 |
3Q13 |
2Q13 | |
|
Fab6A |
6" |
3.5 – 0.45 |
448 |
481 |
538 |
588 |
|
Fab6A |
111 |
113 |
113 |
113 |
|
Fab8A |
8" |
0.5 – 0.25 |
813 |
815 |
813 |
816 |
|
Fab8A |
201 |
204 |
204 |
204 |
|
Fab8C |
8" |
0.35 – 0.11 |
347 |
360 |
359 |
366 |
|
Fab8C |
86 |
87 |
87 |
87 |
|
Fab8D |
8" |
0.13 – 0.09 |
382 |
371 |
364 |
314 |
|
Fab8D |
94 |
96 |
96 |
96 |
|
Fab8E |
8" |
0.5 – 0.18 |
418 |
449 |
469 |
410 |
|
Fab8E |
103 |
105 |
105 |
105 |
|
Fab8F |
8" |
0.18 – 0.11 |
388 |
389 |
388 |
388 |
|
Fab8F |
96 |
98 |
98 |
98 |
|
Fab8S |
8" |
0.18 – 0.11 |
335 |
348 |
307 |
304 |
|
Fab8S |
83 |
84 |
84 |
84 |
|
Fab8N |
8" |
0.5 – 0.13 |
469 |
- |
- |
- |
|
Fab8N |
126 |
128 |
128 |
128 |
|
Fab12A |
12" |
0.18 – 0.028 |
651 |
579 |
501 |
374 |
|
Fab12A |
171 |
164 |
164 |
164 |
|
Fab12i |
12" |
0.13 – 0.040 |
550 |
537 |
530 |
454 |
|
Fab12i |
145 |
145 |
139 |
134 |
|
Total(1) |
6,107 |
5,514 |
5,322 |
4,791 |
|
Total |
1,563 |
1,560 |
1,548 |
1,537 | ||
|
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. | ||||||||||||
CAPEX for Foundry Segment
The total capital expenditure for 2013 was US$1.1 billion, 91% of which accounted for capacity expansion at our 300mm facilities. The foundry capital expenditure for 2014 is expected to be in the range of US$1.1 billion to US$1.3 billion. 90% of the amount will be used for 12" advanced capacity expansion.
|
Capital Expenditure by Year - in US$ billion | ||||
|
Year |
2013 |
2012 |
2011 |
2010 |
|
CAPEX |
$ 1.1 |
$ 1.7 |
$ 1.6 |
$ 1.8 |
|
| ||||
|
2009~2012 figures account for UMC parent company only. | ||||
|
2014 CAPEX Plan | ||
|
8" |
12" |
Total |
|
10% |
90% |
US$1.1~1.3 billion |
Brief Summary of Full Year 2013 Consolidated Results
- Revenue increased 7% YoY to NT$123.81 billion from NT$115.68 billion in 2012.
- Gross margin was 19.0%, compared to 16.7% in 2012.
- Operating margin was 3.3%, compared to 0.7% in 2012.
- Net income attributable to the stockholders of the parent was NT$12.63 billion for 2013.
- EPS was NT$1.01, or EPADS was US$0.169 for 2013, compared to EPS of NT$0.49 or EPADS of US$0.082 for 2012.
- The percentage of revenue from 40nm and below technologies increased from 11% in 2012 to 20% in 2013. Percentage of revenue from 65nm and below technologies accounted for 52% in 2013.
|
Operating Results | |||
|
(Amount: NT$ million) |
2013 |
2012 |
YoY %
|
|
Net Operating Revenues |
123,812 |
115,675 |
7.0 |
|
Gross Profit |
23,563 |
19,310 |
22.0 |
|
Operating Expenses |
(19,406) |
(15,666) |
23.9 |
|
Net Other Operating Income & Expenses |
(125) |
(2,791) |
(95.5) |
|
Operating Income |
4,032 |
853 |
372.7 |
|
Net Non-Operating Income & Expenses |
10,330 |
5,525 |
87.0 |
|
Income Tax Expenses |
(2,257) |
(2,146) |
5.2 |
|
Net Income Attributable to Stockholders of the Parent |
12,630 |
6,177 |
104.5 |
|
EPS (NT$ per share) |
1.01 |
0.49 |
|
|
(US$ per ADS) |
0.169 |
0.082 |
|
Annual Sales Breakdown in Revenue for Foundry Segment
|
| ||
|
Region |
2013 |
2012 |
|
North America |
45% |
46% |
|
Asia Pacific |
43% |
44% |
|
Europe |
8% |
8% |
|
Japan |
4% |
2% |
|
|
|
|
|
Technology |
2013 |
2012 |
|
40nm and below |
20% |
11% |
|
40nm<x<=65nm |
32% |
40% |
|
65nm<x<=90nm |
6% |
7% |
|
90nm<x<=0.13um |
15% |
16% |
|
0.13um<x<=0.18um |
12% |
10% |
|
0.18um<x<=0.35um |
11% |
12% |
|
0.5um and above |
4% |
4% |
|
|
|
|
|
Customer Type |
2013 |
2012 |
|
Fabless |
89% |
84% |
|
IDM |
11% |
16% |
|
|
|
|
|
Application |
2013 |
2012 |
|
Computer |
17% |
19% |
|
Communication |
50% |
50% |
|
Consumer |
29% |
28% |
|
Others |
4% |
3% |
First Quarter of 2014 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Foundry Segment Wafer Shipments: Marginal increase
- Foundry Segment ASP in US$: Decrease by approximately 4%
- Foundry Segment Profitability: Gross profit margin will be in the mid-teen percentage range
- Foundry Segment Capacity Utilization: High 70% range
- 2014 CAPEX for Foundry Segment: US$1.1bn to US$1.3bn
- Guidance to New Business Segment: Revenue to be approximately NT$2.8bn and operating loss to be approximately NT$0.5bn
Recent Developments / Announcements
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Friday, January 24, 2014
|
Time: |
5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London) |
|
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|
|
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 |
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Access Code: |
UMC |
A live webcast and replay of the 4Q13 results announcement will be available at www.umc.com under the "Investor Relations \ Investor 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 is underway 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.
Contacts:
Bowen Huang
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16957
Email Contact
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||
|
Consolidated Condensed Balance Sheet | |||||||
|
As of December 31, 2013 | |||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
December 31, 2013 | ||||||
|
|
US$ |
|
NT$ |
|
% | ||
|
Assets |
|
|
|
|
| ||
|
Current assets |
|
|
|
|
| ||
|
Cash and cash equivalents |
1,703 |
|
50,831 |
|
17.2% | ||
|
Financial assets at fair value through profit or loss, current |
21 |
|
633 |
|
0.2% | ||
|
Available-for-sale financial assets, current |
71 |
|
2,134 |
|
0.7% | ||
|
Notes & Accounts receivable, net |
564 |
|
16,822 |
|
5.7% | ||
|
Inventories, net |
469 |
|
13,993 |
|
4.7% | ||
|
Other current assets |
147 |
|
4,383 |
|
1.5% | ||
|
Total current assets |
2,975 |
|
88,796 |
|
30.0% | ||
|
|
|
|
|
|
| ||
|
Non-current assets |
|
|
|
|
| ||
|
Funds and investments |
1,077 |
|
32,144 |
|
10.9% | ||
|
Property, plant and equipment |
5,439 |
|
162,353 |
|
54.9% | ||
|
Other non-current assets |
422 |
|
12,610 |
|
4.2% | ||
|
Total non-current assets |
6,938 |
|
207,107 |
|
70.0% | ||
|
Total assets |
9,913 |
|
295,903 |
|
100.0% | ||
|
|
|
|
|
|
| ||
|
Liabilities |
|
|
|
|
| ||
|
Current liabilities |
|
|
|
|
| ||
|
Short-term loans |
156 |
|
4,644 |
|
1.6% | ||
|
Financial liabilities at fair value through profit or loss, current |
0 |
|
2 |
|
0.0% | ||
|
Payables |
875 |
|
26,129 |
|
8.8% | ||
|
Current portion of long-term liabilities |
554 |
|
16,545 |
|
5.6% | ||
|
Other current liabilities |
30 |
|
884 |
|
0.3% | ||
|
Total current liabilities |
1,615 |
|
48,204 |
|
16.3% | ||
|
|
|
|
|
|
| ||
|
Non-current liabilities |
|
|
|
|
| ||
|
Bonds payable |
669 |
|
19,979 |
|
6.8% | ||
|
Long-term loans |
283 |
|
8,436 |
|
2.9% | ||
|
Other non-current liabilities |
229 |
|
6,843 |
|
2.2% | ||
|
Total non-current liabilities |
1,181 |
|
35,258 |
|
11.9% | ||
|
Total liabilities |
2,796 |
|
83,462 |
|
28.2% | ||
|
|
|
|
|
|
| ||
|
Equity |
|
|
|
|
| ||
|
Equity attributable to the parent company |
|
|
|
|
| ||
|
Capital |
4,253 |
|
126,947 |
|
42.9% | ||
|
Additional paid-in capital |
1,518 |
|
45,326 |
|
15.3% | ||
|
Retained earnings, unrealized gain or loss on available-for-sale
|
1,280 |
|
38,213 |
|
12.9% | ||
|
Treasury stock |
(79) |
|
(2,365) |
|
(0.8%) | ||
|
Total equity attributable to the parent company |
6,972 |
|
208,121 |
|
70.3% | ||
|
Non-controlling interests |
145 |
|
4,320 |
|
1.5% | ||
|
Total equity |
7,117 |
|
212,441 |
|
71.8% | ||
|
Total liabilities and equity |
9,913 |
|
295,903 |
|
100.0% | ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar. | |||||||
|
|
|
|
|
|
| ||
|
All figures are prepared in accordance with TIFRSs. | |||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
|
Except Per Share and Per ADS Data | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over Year Comparison |
|
Quarter over Quarter Comparison | ||||||||||||||||
|
|
Three-Month Period Ended |
|
|
|
Three-Month Period Ended |
|
| ||||||||||||
|
|
December 31, 2013 |
|
December 31, 2012 |
|
% |
|
December 31, 2013 |
|
September 30, 2013 |
|
% | ||||||||
|
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
Net operating revenues |
1,029 |
|
30,719 |
|
967 |
|
28,854 |
|
6.5% |
|
1,029 |
|
30,719 |
|
1,119 |
|
33,407 |
|
(8.0%) |
|
Operating costs |
(843) |
|
(25,162) |
|
(859) |
|
(25,629) |
|
(1.8%) |
|
(843) |
|
(25,162) |
|
(873) |
|
(26,070) |
|
(3.5%) |
|
Gross profit |
186 |
|
5,557 |
|
108 |
|
3,225 |
|
72.3% |
|
186 |
|
5,557 |
|
246 |
|
7,337 |
|
(24.3%) |
|
|
18.1% |
|
18.1% |
|
11.2% |
|
11.2% |
|
|
|
18.1% |
|
18.1% |
|
22.0% |
|
22.0% |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(30) |
|
(906) |
|
(19) |
|
(574) |
|
57.8% |
|
(30) |
|
(906) |
|
(26) |
|
(778) |
|
16.5% |
|
- General and administrative expenses |
(28) |
|
(826) |
|
(26) |
|
(783) |
|
5.5% |
|
(28) |
|
(826) |
|
(29) |
|
(854) |
|
(3.3%) |
|
- Research and development expenses |
(120) |
|
(3,585) |
|
(87) |
|
(2,593) |
|
38.3% |
|
(120) |
|
(3,585) |
|
(109) |
|
(3,262) |
|
9.9% |
|
Subtotal |
(178) |
|
(5,317) |
|
(132) |
|
(3,950) |
|
34.6% |
|
(178) |
|
(5,317) |
|
(164) |
|
(4,894) |
|
8.6% |
|
Net other operating income and expenses |
(2) |
|
(46) |
|
(4) |
|
(125) |
|
(63.2%) |
|
(2) |
|
(46) |
|
(2) |
|
(48) |
|
(4.2%) |
|
Operating income (loss) |
6 |
|
194 |
|
(28) |
|
(850) |
|
- |
|
6 |
|
194 |
|
80 |
|
2,395 |
|
(91.9%) |
|
|
0.6% |
|
0.6% |
|
(2.9%) |
|
(2.9%) |
|
|
|
0.6% |
|
0.6% |
|
7.2% |
|
7.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
30 |
|
889 |
|
46 |
|
1,380 |
|
(35.6%) |
|
30 |
|
889 |
|
53 |
|
1,561 |
|
(43.0%) |
|
Income from continuing operations before
|
36 |
|
1,083 |
|
18 |
|
530 |
|
100.0% |
|
36 |
|
1,083 |
|
133 |
|
3,956 |
|
(72.6%) |
|
|
3.5% |
|
3.5% |
|
1.8% |
|
1.8% |
|
|
|
3.5% |
|
3.5% |
|
11.8% |
|
11.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(16) |
|
(495) |
|
(4) |
|
(124) |
|
100.0% |
|
(16) |
|
(495) |
|
(20) |
|
(590) |
|
(16.1%) |
|
Net income |
20 |
|
588 |
|
14 |
|
406 |
|
44.8% |
|
20 |
|
588 |
|
113 |
|
3,366 |
|
(82.5%) |
|
|
1.9% |
|
1.9% |
|
1.4% |
|
1.4% |
|
|
|
1.9% |
|
1.9% |
|
10.1% |
|
10.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
17 |
|
510 |
|
(161) |
|
(4,781) |
|
- |
|
17 |
|
510 |
|
(76) |
|
(2,249) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
37 |
|
1,098 |
|
(147) |
|
(4,375) |
|
- |
|
37 |
|
1,098 |
|
37 |
|
1,117 |
|
(1.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
25 |
|
749 |
|
25 |
|
739 |
|
1.4% |
|
25 |
|
749 |
|
116 |
|
3,476 |
|
(78.5%) |
|
Non-controlling interests |
(5) |
|
(161) |
|
(11) |
|
(333) |
|
(51.7%) |
|
(5) |
|
(161) |
|
(3) |
|
(110) |
|
46.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
42 |
|
1,239 |
|
(135) |
|
(4,042) |
|
- |
|
42 |
|
1,239 |
|
42 |
|
1,255 |
|
(1.3%) |
|
Non-controlling interests |
(5) |
|
(141) |
|
(12) |
|
(333) |
|
(57.7%) |
|
(5) |
|
(141) |
|
(5) |
|
(138) |
|
2.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.002 |
|
0.06 |
|
0.002 |
|
0.06 |
|
|
|
0.002 |
|
0.06 |
|
0.009 |
|
0.28 |
|
|
|
Earnings per ADS (2) |
0.010 |
|
0.30 |
|
0.010 |
|
0.30 |
|
|
|
0.010 |
|
0.30 |
|
0.047 |
|
1.40 |
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (in millions) |
|
|
12,476 |
|
|
|
12,636 |
|
|
|
|
|
12,476 |
|
|
|
12,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar. |
|
|
|
|
|
|
| ||||||||||||
|
All figures are prepared in accordance with TIFRSs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
(2) 1 ADS equals 5 common shares. |
|
|
|
|
|
| |||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
|
Except Per Share and Per ADS Data | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Twelve-Month Period Ended | ||||||||
|
|
December 31, 2013 |
|
December 31, 2013 | ||||||||
|
|
US$ |
|
NT$ |
|
% |
|
US$ |
|
NT$ |
|
% |
|
Net operating revenues |
1,029 |
|
30,719 |
|
100.0% |
|
4,148 |
|
123,812 |
|
100.0% |
|
Operating costs |
(843) |
|
(25,162) |
|
(81.9%) |
|
(3,359) |
|
(100,249) |
|
(81.0%) |
|
Gross profit |
186 |
|
5,557 |
|
18.1% |
|
789 |
|
23,563 |
|
19.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(30) |
|
(906) |
|
(3.0%) |
|
(109) |
|
(3,247) |
|
(2.6%) |
|
- General and administrative expenses |
(28) |
|
(826) |
|
(2.7%) |
|
(123) |
|
(3,666) |
|
(2.9%) |
|
- Research and development expenses |
(120) |
|
(3,585) |
|
(11.7%) |
|
(418) |
|
(12,493) |
|
(10.1%) |
|
Subtotal |
(178) |
|
(5,317) |
|
(17.4%) |
|
(650) |
|
(19,406) |
|
(15.6%) |
|
Net other operating income and expenses |
(2) |
|
(46) |
|
(0.1%) |
|
(4) |
|
(125) |
|
(0.1%) |
|
Operating income |
6 |
|
194 |
|
0.6% |
|
135 |
|
4,032 |
|
3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
30 |
|
889 |
|
2.9% |
|
346 |
|
10,330 |
|
8.3% |
|
Income from continuing operations before
|
36 |
|
1,083 |
|
3.5% |
|
481 |
|
14,362 |
|
11.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(16) |
|
(495) |
|
(1.6%) |
|
(75) |
|
(2,257) |
|
(1.8%) |
|
Net income |
20 |
|
588 |
|
1.9% |
|
406 |
|
12,105 |
|
9.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
17 |
|
510 |
|
1.7% |
|
5 |
|
154 |
|
0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
37 |
|
1,098 |
|
3.6% |
|
411 |
|
12,259 |
|
9.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
25 |
|
749 |
|
2.4% |
|
423 |
|
12,630 |
|
10.2% |
|
Non-controlling interests |
(5) |
|
(161) |
|
(0.5%) |
|
(17) |
|
(525) |
|
(0.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
42 |
|
1,239 |
|
4.0% |
|
428 |
|
12,773 |
|
10.3% |
|
Non-controlling interests |
(5) |
|
(141) |
|
(0.4%) |
|
(17) |
|
(514) |
|
(0.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.002 |
|
0.06 |
|
|
|
0.034 |
|
1.01 |
|
|
|
Earnings per ADS (2) |
0.010 |
|
0.30 |
|
|
|
0.169 |
|
5.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
12,476 |
|
|
|
|
|
12,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar. | |||||||||||
|
All figures are prepared in accordance with TIFRSs. |
|
|
|
|
|
|
|
|
| ||
|
(2) 1 ADS equals 5 common shares. |
|
|
|
|
|
|
|
|
|
|
|
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
|
Consolidated Condensed Statement of Cash Flows | ||||
|
For The Twelve-Month Period Ended December 31, 2013 | ||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
|
|
|
|
| |
|
|
USD |
|
NTD | |
|
Cash flows from operating activities : |
|
|
| |
|
Net income before tax |
481 |
|
14,362 | |
|
Depreciation & Amortization |
1,288 |
|
38,432 | |
|
Share of profit of associates and joint ventures |
(25) |
|
(749) | |
|
Impairment loss on financial assets |
43 |
|
1,276 | |
|
Impairment loss on non-financial assets |
2 |
|
57 | |
|
Gain on disposal of investments |
(74) |
|
(2,195) | |
|
Bargain purchase gain |
(240) |
|
(7,154) | |
|
Income tax paid |
(27) |
|
(816) | |
|
Changes in assets, liabilities and others |
8 |
|
259 | |
|
Net cash provided by operating activities |
1,456 |
|
43,472 | |
|
|
|
|
| |
|
Cash flows from investing activities : |
|
|
| |
|
Acquisition of available-for-sales financial assets |
(25) |
|
(733) | |
|
Proceeds from disposal of available-for-sale financial assets |
99 |
|
2,965 | |
|
Acquisition of financial assets measured at cost |
(42) |
|
(1,263) | |
|
Proceeds from capital reduction and liquidation of investment |
12 |
|
373 | |
|
Acquisition of subsidiaries (net of cash acquired) |
88 |
|
2,641 | |
|
Acquisition of property, plant and equipment |
(1,103) |
|
(32,911) | |
|
Proceeds from disposal of property, plant and equipment |
19 |
|
577 | |
|
Acquisition of intangible assets |
(97) |
|
(2,882) | |
|
Others |
(7) |
|
(283) | |
|
Net cash used in investing activities |
(1,056) |
|
(31,516) | |
|
|
|
|
| |
|
Cash flows from financing activities : |
|
|
| |
|
Decrease in short-term loans |
(41) |
|
(1,222) | |
|
Proceeds from bonds issued |
335 |
|
10,000 | |
|
Redemption of bonds |
(72) |
|
(2,153) | |
|
Proceeds from long-term loans |
92 |
|
2,737 | |
|
Repayments of long-term loans |
(208) |
|
(6,200) | |
|
Cash dividends |
(170) |
|
(5,061) | |
|
Exercise of employee stock options |
15 |
|
442 | |
|
Treasury stock acquired |
(75) |
|
(2,245) | |
|
Acquisition of subsidiaries |
(12) |
|
(344) | |
|
Others |
5 |
|
122 | |
|
Net cash used in financing activities |
(131) |
|
(3,924) | |
|
|
|
|
| |
|
Effect of exchange rate changes on cash and cash equivalents |
11 |
|
311 | |
|
Net increase in cash and cash equivalents |
280 |
|
8,343 | |
|
|
|
|
| |
|
Cash and cash equivalents at beginning of period |
1,423 |
|
42,488 | |
|
|
|
|
| |
|
Cash and cash equivalents at end of period |
1,703 |
|
50,831 | |
|
|
|
|
| |
|
|
|
|
| |
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar. | ||||
|
All figures are prepared in accordance with TIFRSs. |
|
|
| |
SOURCE United Microelectronics Corporation
| Contact: |
| United Microelectronics Corporation
Web: http://www.umc.com/english/investors/4Q13_ASP_trend.asp |