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, 2016, the three-month period ending Mar 31, 2016, and the equivalent three-month period that ended Jun 30, 2015. For all 2Q16 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2016 exchange rate of NT$ 32.27 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, 2016 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
| June 30, 2016 | |||||
| US$ | NT$ | % | |||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | 1,532 | 49,425 | 13.4% | ||
| Financial assets at fair value through profit or loss, current | 21 | 666 | 0.2% | ||
| Notes & Accounts receivable, net | 760 | 24,533 | 6.7% | ||
| Inventories, net | 545 | 17,593 | 4.8% | ||
| Other current assets | 353 | 11,386 | 3.1% | ||
| Total current assets | 3,211 | 103,603 | 28.2% | ||
| Non-current assets | |||||
| Funds and investments | 1,182 | 38,146 | 10.4% | ||
| Property, plant and equipment | 6,440 | 207,826 | 56.5% | ||
| Other non-current assets | 561 | 18,102 | 4.9% | ||
| Total non-current assets | 8,183 | 264,074 | 71.8% | ||
| Total assets | 11,394 | 367,677 | 100.0% | ||
| Liabilities | |||||
| Current liabilities | |||||
| Short-term loans | 681 | 21,991 | 6.0% | ||
| Financial liabilities at fair value through profit or loss, current | 0 | 3 | 0.0% | ||
| Payables | 1,175 | 37,932 | 10.3% | ||
| Dividends payable | 214 | 6,907 | 1.9% | ||
| Current portion of long-term liabilities | 356 | 11,494 | 3.1% | ||
| Other current liabilities | 55 | 1,723 | 0.5% | ||
| Total current liabilities | 2,481 | 80,050 | 21.8% | ||
| Non-current liabilities | |||||
| Bonds payable | 1,063 | 34,309 | 9.3% | ||
| Long-term loans | 191 | 6,166 | 1.7% | ||
| Other non-current liabilities | 856 | 27,625 | 7.5% | ||
| Total non-current liabilities | 2,110 | 68,100 | 18.5% | ||
| Total liabilities | 4,591 | 148,150 | 40.3% | ||
| Equity | |||||
| Equity attributable to the parent company | |||||
| Capital | 3,912 | 126,243 | 34.3% | ||
| Additional paid-in capital | 1,270 | 40,988 | 11.1% | ||
|
Retained earnings, unrealized gain or loss on available-for-sale
financial assets and exchange differences on translation of foreign operations |
1,709 | 55,142 | 15.1% | ||
| Treasury stock | (146) | (4,719) | (1.3%) | ||
| Total equity attributable to the parent company | 6,745 | 217,654 | 59.2% | ||
| Non-controlling interests | 58 | 1,873 | 0.5% | ||
| Total equity | 6,803 | 219,527 | 59.7% | ||
| Total liabilities and equity | 11,394 | 367,677 | 100.0% | ||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. | |||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||
| June 30, 2016 | June 30, 2015 | Chg. | June 30, 2016 | March 31, 2016 | Chg. | ||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||
| Net operating revenues | 1,146 | 36,997 | 1,178 | 38,012 | (2.7%) | 1,146 | 36,997 | 1,066 | 34,404 | 7.5% | |||||||||
| Operating costs | (889) | (28,712) | (908) | (29,289) | (2.0%) | (889) | (28,712) | (910) | (29,370) | (2.2%) | |||||||||
| Gross profit | 257 | 8,285 | 270 | 8,723 | (5.0%) | 257 | 8,285 | 156 | 5,034 | 64.6% | |||||||||
| 22.4% | 22.4% | 22.9% | 22.9% | 22.4% | 22.4% | 14.6% | 14.6% | ||||||||||||
| Operating expenses | |||||||||||||||||||
| - Sales and marketing expenses | (34) | (1,092) | (29) | (930) | 17.4% | (34) | (1,092) | (31) | (1,010) | 8.1% | |||||||||
| - General and administrative expenses | (48) | (1,541) | (29) | (919) | 67.7% | (48) | (1,541) | (30) | (970) | 58.9% | |||||||||
| - Research and development expenses | (100) | (3,226) | (93) | (3,015) | 7.0% | (100) | (3,226) | (96) | (3,085) | 4.6% | |||||||||
| Subtotal | (182) | (5,859) | (151) | (4,864) | 20.5% | (182) | (5,859) | (157) | (5,065) | 15.7% | |||||||||
| Net other operating income and expenses | 1 | 23 | 1 | 17 | 35.3% | 1 | 23 | 1 | 15 | 53.3% | |||||||||
| Operating income (loss) | 76 | 2,449 | 120 | 3,876 | (36.8%) | 76 | 2,449 | (0) | (16) | - | |||||||||
| 6.6% | 6.6% | 10.2% | 10.2% | 6.6% | 6.6% | (0.1%) | (0.1%) | ||||||||||||
| Net non-operating income and expenses | (20) | (650) | 41 | 1,304 | - | (20) | (650) | 1 | 46 | - | |||||||||
|
Income from continuing operations before
income tax |
56 | 1,799 | 161 | 5,180 | (65.3%) | 56 | 1,799 | 1 | 30 | 5,896.7% | |||||||||
| 4.9% | 4.9% | 13.6% | 13.6% | 4.9% | 4.9% | 0.1% | 0.1% | ||||||||||||
| Income tax benefit (expense) | (7) | (220) | (20) | (635) | (65.4%) | (7) | (220) | 1 | 49 | - | |||||||||
| Net income | 49 | 1,579 | 141 | 4,545 | (65.3%) | 49 | 1,579 | 2 | 79 | 1,898.7% | |||||||||
| 4.3% | 4.3% | 12.0% | 12.0% | 4.3% | 4.3% | 0.2% | 0.2% | ||||||||||||
| Other comprehensive income (loss) | (30) | (977) | (155) | (5,006) | (80.5%) | (30) | (977) | (18) | (583) | 67.6% | |||||||||
| Total comprehensive income (loss) | 19 | 602 | (14) | (461) | - | 19 | 602 | (16) | (504) | - | |||||||||
| Net income attributable to: | |||||||||||||||||||
| Stockholders of the parent | 80 | 2,583 | 143 | 4,600 | (43.8%) | 80 | 2,583 | 7 | 210 | 1,130.0% | |||||||||
| Non-controlling interests | (31) | (1,004) | (2) | (55) | 1,725.5% | (31) | (1,004) | (5) | (131) | 666.4% | |||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||
| Stockholders of the parent | 51 | 1,635 | (11) | (369) | - | 51 | 1,635 | (11) | (356) | - | |||||||||
| Non-controlling interests | (32) | (1,033) | (3) | (92) | 1,022.8% | (32) | (1,033) | (5) | (148) | 598.0% | |||||||||
| Earnings per share-basic | 0.007 | 0.21 | 0.011 | 0.37 | 0.007 | 0.21 | 0.001 | 0.02 | |||||||||||
| Earnings per ADS (2) | 0.033 | 1.05 | 0.057 | 1.85 | 0.033 | 1.05 | 0.003 | 0.10 | |||||||||||
| Weighted average number of shares | |||||||||||||||||||
| outstanding (in millions) | 12,335 | 12,572 | 12,335 | 12,408 | |||||||||||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
| Except Per Share and Per ADS Data | |||||||||||
| For the Three-Month Period Ended | For the Six-Month Period Ended | ||||||||||
| June 30, 2016 | June 30, 2016 | ||||||||||
| US$ | NT$ | % | US$ | NT$ | % | ||||||
| Net operating revenues | 1,146 | 36,997 | 100.0% | 2,213 | 71,401 | 100.0% | |||||
| Operating costs | (889) | (28,712) | (77.6%) | (1,800) | (58,082) | (81.3%) | |||||
| Gross profit | 257 | 8,285 | 22.4% | 413 | 13,319 | 18.7% | |||||
| Operating expenses | |||||||||||
| - Sales and marketing expenses | (34) | (1,092) | (2.9%) | (65) | (2,101) | (3.0%) | |||||
| - General and administrative expenses | (48) | (1,541) | (4.2%) | (78) | (2,511) | (3.5%) | |||||
| - Research and development expenses | (100) | (3,226) | (8.7%) | (196) | (6,311) | (8.8%) | |||||
| Subtotal | (182) | (5,859) | (15.8%) | (339) | (10,923) | (15.3%) | |||||
| Net other operating income and expenses | 1 | 23 | 0.0% | 1 | 36 | 0.0% | |||||
| Operating income | 76 | 2,449 | 6.6% | 75 | 2,432 | 3.4% | |||||
| Net non-operating income and expenses | (20) | (650) | (1.7%) | (18) | (602) | (0.8%) | |||||
|
Income from continuing operations before
income tax |
56 | 1,799 | 4.9% | 57 | 1,830 | 2.6% | |||||
| Income tax expense | (7) | (220) | (0.6%) | (6) | (172) | (0.3%) | |||||
| Net income | 49 | 1,579 | 4.3% | 51 | 1,658 | 2.3% | |||||
| Other comprehensive income (loss) | (30) | (977) | (2.7%) | (48) | (1,560) | (2.2%) | |||||
| Total comprehensive income (loss) | 19 | 602 | 1.6% | 3 | 98 | 0.1% | |||||
| Net income attributable to: | |||||||||||
| Stockholders of the parent | 80 | 2,583 | 7.0% | 87 | 2,793 | 3.9% | |||||
| Non-controlling interests | (31) | (1,004) | (2.7%) | (36) | (1,135) | (1.6%) | |||||
| Comprehensive income (loss) attributable to: | |||||||||||
| Stockholders of the parent | 51 | 1,635 | 4.4% | 40 | 1,279 | 1.8% | |||||
| Non-controlling interests | (32) | (1,033) | (2.8%) | (37) | (1,181) | (1.7%) | |||||
| Earnings per share-basic | 0.007 | 0.21 | 0.007 | 0.23 | |||||||
| Earnings per ADS (2) | 0.033 | 1.05 | 0.036 | 1.15 | |||||||
|
Weighted average number of shares
outstanding (in millions) |
12,335 | 12,372 | |||||||||
| Notes: | |||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. | |||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||
| Consolidated Condensed Statement of Cash Flows | |||
| For The Six-Month Period Ended June 30, 2016 | |||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||
| US$ | NT$ | ||
| Cash flows from operating activities : | |||
| Net income before tax | 57 | 1,830 | |
| Depreciation & Amortization | 797 | 25,706 | |
| Gain on disposal of investments | (24) | (770) | |
| Share of loss of associates and joint ventures | 10 | 326 | |
| Impairment loss on financial assets | 15 | 485 | |
| Changes in notes & accounts receivable | (164) | (5,290) | |
| Changes in prepayments | (219) | (7,082) | |
| Changes in payables | 78 | 2,529 | |
| Changes in assets, liabilities and others | (23) | (718) | |
| Net cash provided by operating activities | 527 | 17,016 | |
| Cash flows from investing activities : | |||
| Proceeds from disposal of available-for-sale financial assets | 45 | 1,450 | |
| Proceeds from disposal of financial assets measured at cost | 16 | 519 | |
| Acquisition of property, plant and equipment | (1,543) | (49,794) | |
| Acquisition of intangible assets | (21) | (672) | |
| Others | 66 | 2,133 | |
| Net cash used in investing activities | (1,437) | (46,364) | |
| Cash flows from financing activities : | |||
| Increase in short-term loans | 520 | 16,787 | |
| Proceeds from long-term loans | 62 | 2,000 | |
| Repayments of long-term loans | (134) | (4,329) | |
| Increase in other financial liabilities | 422 | 13,634 | |
| Treasury stock acquired | (74) | (2,396) | |
| Others | (0) | (6) | |
| Net cash provided by financing activities | 796 | 25,690 | |
| Effect of exchange rate changes on cash and cash equivalents | (5) | (207) | |
| Net decrease in cash and cash equivalents | (119) | (3,865) | |
| Cash and cash equivalents at beginning of period | 1,651 | 53,290 | |
| Cash and cash equivalents at end of period | 1,532 | 49,425 | |
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. | |||
