UNITED MICROELECTRONICS CORPORATION TAIPEI, Taiwan, Jan. 28, 2015 /PRNewswire/ --
Fourth Quarter 2014 Overview[1]:
-- Revenue: NT$37.24 billion (US$1.18 billion)
-- Gross margin: 27.4%; operating margin: 12.2%
-- Foundry revenue from advanced nodes: 7% from 28nm, 21% from 40nm
-- Foundry capacity utilization rate: 93%
-- Net income attributable to the stockholders of the parent: NT$4.56
billion (US$144 million)
-- Earnings per share: NT$0.36; earnings per ADS: US$0.057
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 2014.
Fourth quarter consolidated revenue was NT$37.24 billion, a 5.7% quarterly increase from NT$35.21 billion in 3Q14 and a 21.2% annual increase from NT$30.72 billion in 4Q13. 4Q14 consolidated gross margin was 27.4%, with operating margin at 12.2%. Net income attributable to the stockholders of the parent was NT$4.56 billion, with earnings per ordinary share of NT$0.36. For 2014, full year revenue was NT$140.01 billion, with NT$10.08 billion in operating income, NT$12.14 billion net income attributable to the stockholders of the parent and NT$0.97 earnings per share.
Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter, foundry revenue grew 3.7% sequentially to NT$34.74 billion. This figure includes a one-time 40nm licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. Overall capacity utilization rate remained at 93%, bringing shipments to 1.43 million 8-inch equivalent wafers. Our 28nm technologies represented 7% of our foundry revenue in 4Q14. Shipments from our 28nm gate-last, High-K Metal Gate process exceeded that of 28nm poly-SiON wafers. Excluding the Fujitsu 40nm licensing fee, UMC's 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28nm, which accounted for 3% of total 2014 revenue. Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand."
CEO Yen continued, "The Taiwan government authorities recently approved UMC's application to invest in a 12" joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China's enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC's differentiated approach of global expansion, proven through Singapore's Fab12i and SuZhou's Fab8N successfully achieving economy of scale while mitigating customer risks via geographic diversification. While we expand production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CAPEX for approximately US$1.8 billion. Our 2015 CAPEX illustrates our strong commitment to meet customers' requirements and gain additional market share through efficient execution and strategic alliances. UMC's global expansion efforts, driven by manufacturing excellence, will strengthen customer services with increased operating scale to enhance corporate financial earnings and deliver long-term returns to our shareholders."
Summary of Operating Results
Operating Results
-----------------
(Amount: NT$ million) 4Q14 3Q14 QoQ % 4Q13 YoY %
change change
Net Operating Revenues 37,235 35,214 5.7 30,719 21.2
Gross Profit 10,186 7,559 34.8 5,557 83.3
Operating Expenses (5,672) (5,270) 7.6 (5,317) 6.7
Net Other Operating Income and Expenses 18 (602) - (46) -
Operating Income 4,532 1,687 168.6 194 2,236.1
Net Non-Operating Income and Expenses 843 1,305 (35.4) 889 (5.2)
Net Income Attributable to the Stockholders of the Parent 4,563 2,916 56.5 749 509.2
EPS (NT$ per share) 0.36 0.23 0.06
(US$ per ADS) 0.057 0.036 0.009
------------ ----- ----- -----
In 4Q14, foundry business grew 3.7% sequentially to NT$34.74 billion, including a one-time Fujitsu 40nm licensing fee, while New Business segment posted revenue of NT$2.52 billion, leading to consolidated revenue of NT$37.24 billion, up 5.7% from 3Q14. On a consolidated base, gross profit increased 34.8% to NT$10.19 billion, or 27.4% of revenue. Operating income grew 168.6% sequentially to NT$4.53 billion, or 12.2% of revenue. Net income attributable to the stockholders of the parent in 4Q14 was NT$4.56 billion, up 56.5% compared to NT$2.92 billion in 3Q14.
Earnings per ordinary share for the quarter were NT$0.36. Earnings per ADS were US$0.057. The basic weighted average number of outstanding shares in 4Q14 was 12,509,658,059, compared with 12,500,808,739 shares in 3Q14 and 12,476,082,332 shares in 4Q13. The diluted weighted average number of outstanding shares was 12,620,712,149 in 4Q14, compared with 12,582,502,645 shares in 3Q14 and 13,243,379,446 shares in 4Q13. The fully diluted share count on December 31, 2014 was approximately 12,779,034,000. On December 31, 2014, UMC held 195 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Foundry revenue increased 3.7% from 4Q14 to NT$34.74 billion, which included a Fujitsu 40nm licensing fee, while New Business posted NT$2.52 billion, which led to total revenue of NT$37.24 billion. Operating expenses increased 7.6% to NT$5.67 billion, partly due to a 17.5% rise in sales and marketing that included higher IP and mask expenses. Research and development expenses increased 1.9% to NT$3.54 billion or 9.5% of operating revenues. Net operating income was NT$4.53 billion.
COGS & Expenses
---------------
(Amount: NT$ million) 4Q14 3Q14 QoQ % 4Q13 YoY %
change change
--- ------ ------
Net Operating Revenues 37,235 35,214 5.7 30,719 21.2
COGS (27,049) (27,655) (2.2) (25,162) 7.5
Depreciation (8,495) (8,483) 0.1 (7,939) 7.0
Other Mfg. Costs (18,554) (19,172) (3.2) (17,223) 7.7
Gross Profit 10,186 7,559 34.8 5,557 83.3
Gross Margin (%) 27.4% 21.5% 18.1%
Operating Expenses (5,672) (5,270) 7.6 (5,317) 6.7
G&A (1,013) (845) 19.9 (826) 22.6
Sales & Marketing (1,124) (957) 17.5 (906) 24.1
R&D (3,535) (3,468) 1.9 (3,585) (1.4)
Net Other Operating 18 (602) - (46) -
Income & Expenses
Operating Income 4,532 1,687 168.6 194 2,236.1
---------------- ----- ----- ----- --- -------
Net non-operating income in 4Q14 was NT$843 million. Gain on disposal of investments was NT$639 million, including a NT$528 million gain from the disposal of Montage shares.
Non-Operating Income and Expenses
---------------------------------
(Amount: NT$ million) 4Q14 3Q14 4Q13
-------------------- ---- ---- ----
Non-Operating Income and Expenses 843 1,305 889
Net Interest Income and Expenses (12) (8) (53)
Net Investment Gain and Loss (37) 487 (394)
Gain and Loss on Disposal of Investment 639 580 985
Exchange Gain and Loss 201 114 114
Other Gain and Loss 52 132 237
------------------- --- --- ---
Cash inflow from operations was NT$18.84 billion. In 4Q14, CAPEX spending was NT$16.21 billion, including NT$16.08 billion from the foundry segment, resulting in free cash inflow of NT$2.63 billion. Cash inflow from financing was NT$429 million, mainly due to the increased bank loan of NT$4.11 billion with a bond redemption of NT$3.83 billion. Total cash inflow in 4Q14 was NT$2.96 billion. Over the next 12 months, the company expects to repay NT$3.77 billion in bank loans.
Cash Flow Summary
-----------------
(Amount: NT$ million) For the 3-Month For the 3-Month
Period Ended Period Ended
Dec. 31, 2014 Sep. 30, 2014
---
Cash Flow from Operating Activities 18,836 12,039
Net Income before tax 5,375 2,992
Depreciation & Amortization 10,663 10,195
Gain on disposal of investments (639) (580)
Impairment loss on non-financial assets - 597
Exchange loss on financial assets and liabilities 255 130
Changes in Working Capital 2,941 (1,488)
Other 241 193
Cash Flow from Investing Activities (16,790) (12,684)
Capital Expenditures (16,208) (12,867)
Acquisition of available-for-sale financial assets (1,774) (52)
Acquisition of financial assets measured at cost 258 (283)
Proceeds from disposal of available-for-sale financial assets 1,112 568
Acquisition of intangible assets (282) (268)
Other 104 218
Cash Flow from Financing Activities 429 (6,659)
Bank Loans 4,107 (627)
Redemption of Bonds (3,831) -
Cash Dividends and Cash paid from additional paid-in capital - (6,253)
Other 153 221
Effect of Exchange Rate 993 414
Net Cash Flow 3,468 (6,890)
Disposal Group included in Non-Current Assets Held for Sale (511) -
Total Cash Flow 2,957 (6,890)
--------------- ----- ------
Cash and cash equivalents increased to NT$45.70 billion, mainly from the increase in free cash flow and cash inflow from financing activities. The days of inventory increased 4 days to 50 days due to an increase in WIP for 1Q15 shipments.
Current Assets
--------------
(Amount: NT$ billion) 4Q14 3Q14 4Q13
-------------------- ---- ---- ----
Cash and Cash Equivalents 45.70 42.74 50.83
Notes & Accounts Receivable 22.37 21.93 16.82
Days Sales Outstanding 54 56 53
Inventories, net 15.24 14.31 13.99
Days of Inventory 50 46 51
Total Current Assets 96.86 91.80 88.80
-------------------- ----- ----- -----
Current liabilities increased to NT$48.11 billion. A merger between Motech & TOPCELL announced on Dec. 26, 2014 resulted in the reclassification of TOPCELL liabilities into other liabilities, amounting to NT$5.59 billion, attributing to the category's increase to NT$21.42 billion in 4Q14. Debt to equity ratio remained at 39%.
Liabilities
-----------
(Amount: NT$ billion) 4Q14 3Q14 4Q13
-------------------- ---- ---- ----
Total Current Liabilities 48.11 45.44 48.20
Notes & Accounts Payable 6.17 6.75 7.41
Short-Term Credit / Bonds 10.03 15.26 21.19
Payable on Equipment 10.48 10.40 6.70
Other 21.43 13.03 12.90
Long-Term Credit / Bonds 33.40 31.98 28.42
Total Liabilities 88.24 84.43 83.46
Debt to Equity 39% 39% 39%
-------------- --- --- ---
Analysis of Revenue[2] for Foundry Segment
Revenue contribution from North America remained at 45% in 4Q14. Europe rose to 8%, partly due to higher demand from European communication customers.
Revenue Breakdown by Region
---------------------------
Region 4Q14 3Q14 2Q14 1Q14 4Q13
------ ---- ---- ---- ---- ----
North America 45% 45% 43% 45% 47%
------------- --- --- --- --- ---
Asia Pacific 42% 44% 46% 45% 41%
------------ --- --- --- --- ---
Europe 8% 6% 5% 7% 8%
------ --- --- --- --- ---
Japan 5% 5% 6% 3% 4%
----- --- --- --- --- ---
28nm revenue continued to increase in 4Q14 strengthened by the demand from handsets and tablets, accounting for 7% of foundry revenue, while 40nm revenue represented 21% during 4Q14.
Revenue Breakdown by Geometry
-----------------------------
Geometry 4Q14 3Q14 2Q14 1Q14 4Q13
-------- ---- ---- ---- ---- ----
28nm and below 7% 3% 1% 0% 0%
-------------- --- --- --- --- ---
28nm
4Q14 revenue from IDM customers increased to 10%.
Revenue Breakdown by Customer Type
----------------------------------
Customer Type 4Q14 3Q14 2Q14 1Q14 4Q13
------------- ---- ---- ---- ---- ----
Fabless 90% 91% 90% 92% 89%
------- --- --- --- --- ---
IDM 10% 9% 10% 8% 11%
--- --- --- --- --- ---
Communication and consumer segments remained at 54% and 28% of revenue in 4Q14, respectively.
Revenue Breakdown by Application (1)
-----------------------------------
Application 4Q14 3Q14 2Q14 1Q14 4Q13
----------- ---- ---- ---- ---- ----
Computer 14% 15% 18% 18% 15%
-------- --- --- --- --- ---
Communication 54% 54% 49% 46% 49%
------------- --- --- --- --- ---
Consumer 28% 28% 29% 31% 31%
-------- --- --- --- --- ---
Others 4% 3% 4% 5% 5%
------ --- --- --- --- ---
(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 Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained flat in 4Q14
(To view ASP trend, visit http://www.umc.com/english/investors/4Q14_ASP_trend.asp)
Shipment and Utilization Rate[3] for Foundry Segment
Wafer shipments dropped 2% to 1,431K in 4Q14 as capacity declined 0.6% QoQ to 1,577K, resulting in an overall utilization rate of 93% for the quarter.
Wafer Shipments
---------------
4Q14 3Q14 2Q14 1Q14 4Q13
---- ---- ---- ---- ----
Wafer
Shipments 1,431 1,462 1,426 1,258 1,236
(8" K equivalents)
-----------------
Quarterly Capacity Utilization Rate
-----------------------------------
4Q14 3Q14 2Q14 1Q14 4Q13
---- ---- ---- ---- ----
Utilization
Rate 93% 93% 90% 81% 79%
----------- --- --- --- --- ---
Total Capacity 1,577 1,586 1,597 1,563 1,560
(8" K equivalents)
-----------------
Capacity[4] for Foundry Segment
Overall capacity during the fourth quarter was 1,577K 8-inch equivalent wafers. 28nm capacity expansion at Fab12A increased quarterly capacity from 174K in 3Q14 to 180K in 4Q14. The capacity profile upgrade at Fab12i decreased its 12" wafer capacity by 10K, reducing the fab's 4Q14 capacity to 135K. First quarter's estimated capacity will be approximately 1,583K 8-inch equivalent wafers, primarily from continuous 28nm capacity deployment at Fab12A, 40nm capacity expansion at Fab12i and manufacturing expansion at Fab8N.
Annual Capacity in Quarterly Capacity in
thousands of wafers thousands of wafers
------------------- -------------------
FAB Geometry 2014 2013 2012 2011 FAB 1Q15E 4Q14 3Q14 2Q14
(um)
--- ---
Fab6A 6" 3.5 - 0.45 448 448 481 538 Fab6A 111 113 113 113
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8A 8" 0.5 - 0.25 813 813 815 813 Fab8A 201 204 204 204
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8C 8" 0.35 - 0.11 347 347 360 359 Fab8C 86 87 87 87
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8D 8" 0.13 - 0.09 358 382 371 364 Fab8D 84 86 86 93
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8E 8" 0.5 - 0.18 418 418 449 469 Fab8E 103 105 105 105
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8F 8" 0.18 - 0.11 388 388 389 388 Fab8F 96 98 98 98
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8S 8" 0.18 - 0.11 335 335 348 307 Fab8S 83 84 84 84
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8N 8" 0.5 - 0.13 547 469 - - Fab8N 144 140 140 140
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab12A 12" 0.18 - 0.028 700 651 579 501 Fab12A 183 180 174 174
------ --- ------------ --- --- --- --- ------ --- --- --- ---
Fab12i 12" 0.13 - 0.040 573 550 537 530 Fab12i 139 135 145 147
------ --- ------------ --- --- --- --- ------ --- --- --- ---
Total(1) 6,323 6,107 5,514 5,322 Total 1,583 1,577 1,586 1,597
======= ===== ===== ===== ===== ===== ===== ===== ===== =====
YoY Growth Rate 4% 11% 4% 11%
=============== === === === ===
2011~2012 figures account for UMC parent company only.
(1) One 6-inch wafer is
converted into
0.5625(6(2)/8(2)) 8-inch
equivalent wafer; one
12-inch wafer is
converted into
2.25(12(2)/8(2)) 8-inch
equivalent wafers.
Capacity total figures
are expressed in 8-inch
equivalent wafers.
CAPEX for Foundry Segment
Total capital expenditure for 2014 was US$1.4 billion, 87% of which accounted for capacity expansion at 300mm facilities. Foundry capital expenditure budget for 2015 is expected to be approximately US$1.8 billion, with 89% of the amount used for 12" advanced capacity expansion.
Capital Expenditure by Year - in US$ billion
--------------------------------------------
Year 2014 2013 2012 2011 2010
---- ---- ---- ---- ---- ----
CAPEX $1.4 $1.1 $1.7 $1.6 $1.8
----- ---- ---- ---- ---- ----
2010~2012 figures account for UMC parent company only.
2015 CAPEX Plan
---------------
8" 12" Total
--- --- -----
11% 89% US$1.8 billion
--- --- --------------
Brief Summary of Full Year 2014 Consolidated Results
-- Consolidated revenue increased 13.1% YoY to NT$140.01 billion, from
NT$123.81 billion in 2013. Foundry segment revenue in 2014 increased
10.8% YoY to NT$129.53 billion, from NT$116.88 billion in 2013. New
Business segment revenue in 2014 was NT$10.57 billion, up 50.1% YoY,
from NT$7.04 billion in 2013.
-- Gross margin was 22.8%, compared to 19.0% in 2013.
-- Operating margin was 7.2%, compared to 3.3% in 2013.
-- Net income attributable to the stockholders of the parent was NT$12.14
billion for 2014.
-- EPS was NT$0.97, or EPADS was US$0.153 for 2014.
-- The overall percentage of revenue from 28nm was 3% in 2014, while
revenue from 40nm increased to 21%.
Operating Results
-----------------
(Amount: NT$ million) 2014 2013 YoY %
change
Net Operating Revenues 140,012 123,812 13.1
Gross Profit 31,853 23,563 35.2
Operating Expenses (21,238) (19,406) 9.4
Net Other Operating Income & Expenses (539) (125) 331.2
Operating Income 10,076 4,032 149.9
Net Non-Operating Income & Expenses 3,437 10,330 (66.7)
Income Tax Expenses (2,033) (2,257) (9.9)
Net Income Attributable to Stockholders of the Parent 12,141 12,630 (3.9)
EPS (NT$ per share) 0.97 1.01
(US$ per ADS) 0.153 0.160
------------ ----- -----
Annual Sales Breakdown in Revenue for Foundry Segment
Region 2014 2013
------ ---- ----
North America 45% 45%
------------- --- ---
Asia Pacific 44% 43%
------------ --- ---
Europe 6% 8%
------ --- ---
Japan 5% 4%
----- --- ---
Technology 2014 2013
---------- ---- ----
28nm and below 3% 0%
-------------- --- ---
28nmFirst Quarter of 2015 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Foundry Segment Wafer Shipments: To increase by approximately 2-3%
-- Foundry Segment ASP in US$: To increase by approximately 3%
-- Foundry Segment Profitability: Gross profit margin will be in the mid-20
percentage range
-- Foundry Segment Capacity Utilization: Approximately 90%
-- 2015 CAPEX for Foundry Segment: US$1.8bn
-- Guidance to New Business Segment: Revenue to be approximately NT$2bn and
operating loss to be approximately NT$170mn
Recent Developments / Announcements
Jan 21, 2015 UMC Licenses 40nm eNVM from Cypress
to Enable Next-Generation IoT
Devices
------------ -----------------------------------
Jan 12, 2015 UMC First Foundry in Taiwan to
Receive ISO 15408-EAL6
Certification
------------ -------------------------------
Dec 26, 2014 Topcell Solar Announces Plans to
Merge with Motech Industries
------------ ---------------------------------
Dec 15, 2014 Infineon & UMC Announce
Manufacturing Agreement for
Automotive Applications
------------ ----------------------------
Oct 29, 2014 UMC 3Q 2014 Financial Results
------------ -----------------------------
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, January 28, 2015
Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free: +1-800-871-3110, +1-888-700-7397
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC
A live webcast and replay of the 4Q14 results announcement will be available at www.umc.com under the "Investors / Events" section.
[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Dec 31, 2014, the three-month period ending Sep 30, 2014, and the equivalent three-month period that ended Dec 31, 2013. For all 4Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2014 exchange rate of NT$ 31.62 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.
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.
Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16900
bowen_huang@umc.com / david_wong@umc.com
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of December 31, 2014
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
December 31, 2014
-----------------
US$ NT$ %
--- --- ---
Assets
Current assets
Cash and cash equivalents 1,445 45,701 14.6%
Financial assets at fair value through profit or loss, current 23 740 0.2%
Notes & Accounts receivable, net 707 22,369 7.1%
Inventories, net 482 15,242 4.9%
Non-current assets held for sale 221 6,979 2.2%
Other current assets 185 5,832 1.9%
Total current assets 3,063 96,863 30.9%
----- ------ ----
Non-current assets
Funds and investments 1,185 37,478 12.0%
Property, plant and equipment 5,272 166,690 53.2%
Other non-current assets 387 12,215 3.9%
Total non-current assets 6,844 216,383 69.1%
----- ------- ----
Total assets 9,907 313,246 100.0%
===== ======= =====
Liabilities
Current liabilities
Short-term loans 198 6,251 2.0%
Financial liabilities at fair value through profit or loss, current 1 42 0.0%
Payables 1,000 31,608 10.1%
Liabilities directly relating to non-current assets held for sale 177 5,595 1.8%
Current portion of long-term liabilities 119 3,775 1.2%
Other current liabilities 27 835 0.3%
Total current liabilities 1,522 48,106 15.4%
----- ------ ----
Non-current liabilities
Bonds payable 790 24,978 8.0%
Long-term loans 266 8,423 2.7%
Other non-current liabilities 213 6,730 2.1%
Total non-current liabilities 1,269 40,131 12.8%
----- ------ ----
Total liabilities 2,791 88,237 28.2%
----- ------ ----
Equity
Equity attributable to the parent company
Capital 4,026 127,303 40.6%
Additional paid-in capital 1,248 39,448 12.6%
Retained earnings, unrealized gain or loss on available-for-sale 1,793 56,712 18.1%
financial assets and exchange differences on translation of
foreign operations
Treasury stock (73) (2,304) (0.7%)
Total equity attributable to the parent company 6,994 221,159 70.6%
Non-controlling interests 122 3,850 1.2%
--- ----- ---
Total equity 7,116 225,009 71.8%
----- ------- ----
Total liabilities and equity 9,907 313,246 100.0%
===== ======= =====
Note?New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison Quarter over Quarter Comparison
------------------------- -------------------------------
Three-Month Period Ended Three-Month Period Ended
December 31, 2014 December 31, 2013 % December 31, 2014 September 30, 2014 %
----------------- ----------------- ----------------- ------------------
US$ NT$ US$ NT$ Chg. US$ NT$ US$ NT$ Chg.
--- --- --- --- ---- --- --- --- --- ----
Net operating revenues 1,178 37,235 972 30,719 21.2% 1,178 37,235 1,114 35,214 5.7%
Operating costs (856) (27,049) (796) (25,162) 7.5% (856) (27,049) (875) (27,655) (2.2%)
Gross profit 322 10,186 176 5,557 83.3% 322 10,186 239 7,559 34.8%
--- ------ --- ----- ---- --- ------ --- ----- ----
27.4% 27.4% 18.1% 18.1% 27.4% 27.4% 21.5% 21.5%
Operating expenses
- Sales and marketing expenses (35) (1,124) (29) (906) 24.1% (35) (1,124) (30) (957) 17.5%
- General and administrative expenses (32) (1,013) (26) (826) 22.6% (32) (1,013) (27) (845) 19.9%
- Research and development expenses (112) (3,535) (113) (3,585) (1.4%) (112) (3,535) (110) (3,468) 1.9%
Subtotal (179) (5,672) (168) (5,317) 6.7% (179) (5,672) (167) (5,270) 7.6%
---- ------ ---- ------ --- ---- ------ ---- ------ ---
Net other operating income and expenses 0 18 (2) (46) - 0 18 (19) (602) -
--- --- --- --- --- --- --- ---- ---
Operating income 143 4,532 6 194 100.0% 143 4,532 53 1,687 100.0%
12.2% 12.2% 0.6% 0.6% 12.2% 12.2% 4.8% 4.8%
Net non-operating income and expenses 27 843 28 889 (5.2%) 27 843 42 1,305 (35.4%)
--- --- --- --- ----- --- --- --- ----- ------
Income from continuing operations before 170 5,375 34 1,083 100.0% 170 5,375 95 2,992 79.6%
income tax
14.4% 14.4% 3.5% 3.5% 14.4% 14.4% 8.5% 8.5%
Income tax expense (29) (911) (15) (495) 84.0% (29) (911) (13) (413) 100.0%
--- ---- --- ---- ---- --- ---- --- ---- -----
Net income 141 4,464 19 588 100.0% 141 4,464 82 2,579 73.1%
12.0% 12.0% 1.9% 1.9% 12.0% 12.0% 7.3% 7.3%
Other comprehensive income (loss) 127 4,006 16 510 100.0% 127 4,006 (48) (1,501) -
--- ----- --- --- ----- --- ----- --- ------ ---
Total comprehensive income 268 8,470 35 1,098 100.0% 268 8,470 34 1,078 100.0%
=== ===== === ===== ===== === ===== === ===== =====
Net income attributable to:
Stockholders of the parent 144 4,563 24 749 100.0% 144 4,563 92 2,916 56.5%
Non-controlling interests (3) (99) (5) (161) (38.5%) (3) (99) (10) (337) (70.6%)
Comprehensive income attributable to:
Stockholders of the parent 268 8,467 39 1,239 100.0% 268 8,467 43 1,372 100.0%
Non-controlling interests 0 3 (4) (141) - 0 3 (9) (294) -
Earnings per share-basic 0.011 0.36 0.002 0.06 0.011 0.36 0.007 0.23
----- ---- ----- ---- ----- ---- ----- ----
Earnings per ADS (2) 0.057 1.80 0.009 0.30 0.057 1.80 0.036 1.15
----- ---- ----- ---- ----- ---- ----- ----
Weighted average number of shares
outstanding (in millions) 12,510 12,476 12,510 12,501
------ ------ ------ ------
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the Twelve-Month Period Ended
December 31, 2014 December 31, 2014
----------------- -----------------
US$ NT$ % US$ NT$ %
--- --- --- --- --- ---
Net operating revenues 1,178 37,235 100.0% 4,428 140,012 100.0%
Operating costs (856) (27,049) (72.6%) (3,421) (108,159) (77.2%)
Gross profit 322 10,186 27.4% 1,007 31,853 22.8%
--- ------ ---- ----- ------ ----
Operating expenses
- Sales and marketing expenses (35) (1,124) (3.0%) (127) (4,012) (2.9%)
- General and administrative expenses (32) (1,013) (2.7%) (113) (3,562) (2.5%)
- Research and development expenses (112) (3,535) (9.5%) (432) (13,664) (9.8%)
Subtotal (179) (5,672) (15.2%) (672) (21,238) (15.2%)
---- ------ ------ ---- ------- ------
Net other operating income and expenses 0 18 0.0% (16) (539) (0.4%)
--- --- --- -----
Operating income 143 4,532 12.2% 319 10,076 7.2%
Net non-operating income and expenses 27 843 2.2% 108 3,437 2.5%
--- --- --- --- ----- ---
Income from continuing operations before 170 5,375 14.4% 427 13,513 9.7%
income tax
Income tax expense (29) (911) (2.4%) (64) (2,033) (1.5%)
--- ---- ----- --- ------ -----
Net income 141 4,464 12.0% 363 11,480 8.2%
Other comprehensive income 127 4,006 10.7% 213 6,738 4.8%
--- ----- ---- --- ----- ---
Total comprehensive income 268 8,470 22.7% 576 18,218 13.0%
=== ===== ==== === ====== ====
Net income attributable to:
Stockholders of the parent 144 4,563 12.3% 384 12,141 8.7%
Non-controlling interests (3) (99) (0.3%) (21) (661) (0.5%)
Comprehensive income attributable to:
Stockholders of the parent 268 8,467 22.7% 593 18,736 13.4%
Non-controlling interests 0 3 0.0% (17) (518) (0.4%)
Earnings per share-basic 0.011 0.36 0.031 0.97
----- ---- ----- ----
Earnings per ADS (2) 0.057 1.80 0.153 4.85
----- ---- ----- ----
Weighted average number of shares 12,510 12,495
outstanding (in millions)
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Twelve-Month Period Ended December 31, 2014
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
--- ---
Cash flows from operating activities :
Net income before tax 427 13,513
Depreciation & Amortization 1,286 40,657
Impairment loss on financial assets 10 305
Impairment loss on non-financial assets 19 597
Gain on disposal of investments (75) (2,378)
Changes in notes & accounts receivable (190) (6,013)
Changes in inventory (60) (1,894)
Changes in payables 42 1,322
Changes in assets, liabilities and others (43) (1,321)
--- ------
Net cash provided by operating activities 1,416 44,788
Cash flows from investing activities :
Acquisition of available-for-sale financial assets (61) (1,942)
Proceeds from disposal of available-for-sale financial assets 105 3,311
Acquisition of financial assets measured at cost (15) (489)
Proceeds from disposal of financial assets measured at cost 21 677
Acquisition of investments accounted for under the equity method (6) (182)
Acquisition of property, plant and equipment (1,367) (43,237)
Proceeds from disposal of property, plant and equipment 11 338
Acquisition of intangible assets (36) (1,153)
Others 1 71
--- ---
Net cash used in investing activities (1,347) (42,606)
Cash flows from financing activities :
Increase in short-term loans 131 4,135
Proceeds from bonds issued 158 5,000
Redemption of bonds (447) (14,137)
Proceeds from long-term loans 199 6,284
Repayments of long-term loans (122) (3,859)
Cash dividends and cash paid from additional paid-in capital (198) (6,253)
Others 18 572
--- ---
Net cash used in financing activities (261) (8,258)
Effect of exchange rate changes on cash and cash equivalents 45 1,457
--- -----
Net decrease in cash and cash equivalents (147) (4,619)
Cash and cash equivalents at beginning of period 1,608 50,831
----- ------
Cash and cash equivalents at end of period 1,461 46,212
===== ======
Reconciliation of the balances of cash and cash equivalents at end of period :
Cash and cash equivalents balances on the consolidated balance sheets 1,445 45,701
Cash and cash equivalents of disposal group included in non-current assets held for sale 16 511
Cash and cash equivalents at end of period 1,461 46,212
===== ======
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/umc-reports-fourth-quarter-2014-results-300026930.html
SOURCE United Microelectronics Corporation
