TAIPEI, Oct. 29, 2014 /PRNewswire/ --
Third Quarter 2014 Overview[1]:
Revenue: NT$35.21 billion (US$1.16 billion)
-- Gross margin: 21.5%; operating margin: 4.8% -- Foundry revenue from advanced node: 3% from 28nm, 24% from 40nm -- Foundry capacity utilization rate: 93% -- Net income attributable to the stockholders of the parent: NT$2.92 billion (US$96 million) -- Earnings per share: NT$0.23; earnings per ADS: US$0.038
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2014.
Revenue was NT$35.21 billion, with gross margin at 21.5% and operating margin at 4.8%. Net income attributable to the stockholders of the parent was NT$2.92 billion, with earnings per ordinary share of NT$0.23.
Mr. Po-Wen Yen, CEO of UMC, said, "In the third quarter, our foundry revenue grew 2.9% sequentially to NT$33.51 billion. Foundry operating margin was 8.8%. Overall capacity utilization reached 93%, led by increasing demand from communication products such as handsets and tablet devices, bringing wafer shipments to 1.462 million 8-inch equivalent wafers. Moreover, 24% of our revenue came from 40nm, while 28nm contribution rose from 1% to 3% quarter-over-quarter, demonstrating the sustained traction of UMC's leading edge geometries. Our 28nm yield progress for poly-SiON & gate-last, High-K Metal Gate products has continued to improve, which will drive significant production ramp during the fourth quarter. This progress will help attract multiple waves of new customers and products to strengthen UMC's 28nm growth and further diversify our customer base in advanced nodes."
CEO Yen continued, "UMC has collaborated with Asian regional partners for capacity deployment plans with the intention to expand our operating scale, strengthen efficiency and capture additional market share. This cooperative model will establish regional manufacturing centers that will build economy of scale to increase productivity and serve local markets, while helping UMC's global customers mitigate geographical risks in the supply chain. UMC's recent announcement with Fujitsu Semiconductor and our joint venture in Xiamen illustrates these collaborative efforts. Our foundry alliance with Fujitsu includes a 40nm licensing agreement which will enable UMC to better serve the Japanese local market, including automotive, industrial, consumer electronics, and other related sectors. Recently, we also announced an investment venture with Xiamen Municipal People's Government and FuJian Electronics & Information Group to establish a 12" fab in China for 40nm and 55nm foundry services, subject to approval by Taiwan government authorities. Meanwhile, UMC's dedicated engineering team continues to work on 10nm and 14nm advanced technologies in our Taiwan headquarters to ensure the company's next stage of growth. Our differentiated approach via global expansion, combined with the leadership in advanced manufacturing technologies, will serve as the engine that drives UMC's growth to enhance corporate profitability and provide long-term returns for our shareholders."
[1]Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Sep 30, 2014, the three-month period ending Jun 30, 2014, and the equivalent three-month period that ended Sep 30, 2013. For all 3Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Sep 30, 2014 exchange rate of NT$ 30.41 per U.S. Dollar.
Summary of Operating Results
Operating Results ----------------- (Amount: NT$ million) 3Q14 2Q14 QoQ % 3Q13 YoY % change change --- Net Operating Revenues 35,214 35,869 (1.8) 33,407 5.4 Gross Profit 7,559 8,207 (7.9) 7,337 3.0 Operating Expenses (5,270) (5,280) (0.2) (4,894) 7.7 Net Other Operating Income and Expenses (602) (10) 5,920.0 (48) 1,154.2 Operating Income 1,687 2,917 (42.2) 2,395 (29.6) Net Non-Operating Income and Expenses 1,305 937 39.3 1,561 (16.4) Net Income Attributable to the Stockholders of the Parent 2,916 3,482 (16.3) 3,476 (16.1) EPS (NT$ per share) 0.23 0.28 0.28 (US$ per ADS) 0.038 0.046 0.046 ------------ ----- ----- -----
During 3Q14, foundry revenue increased 2.9% QoQ to NT$33.51 billion while New Business segment revenue, mainly consisting of solar subsidiary companies, decreased 48.2% sequentially to NT$1.72 billion, leading to a consolidated revenue of NT$35.21 billion, a 1.8% quarterly decline. Gross profit was NT$7.56 billion, or 21.5% of revenue. Operating income was NT$1.69 billion, or 4.8% of consolidated revenue, primarily due to a NT$602 million net other operating expense, mainly from an impairment loss in a solar subsidiary company during 3Q14. Net income attributable to the stockholders of the parent in 3Q14 was NT$2.92 billion, compared to NT$3.48 billion in 2Q14.
Earnings per ordinary share for the quarter were NT$0.23. Earnings per ADS were US$0.038. The basic weighted average number of outstanding shares in 3Q14 was 12,500,808,739, compared with 12,489,095,718 shares in 2Q14 and 12,459,978,088 shares in 3Q13. The diluted weighted average number of outstanding shares was 12,582,502,645 in 3Q14, compared with 12,607,860,758 shares in 2Q14 and 13,201,315,449 shares in 3Q13. The fully diluted share count on September 30, 2014 was approximately 12,781,655,000. On September 30, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Foundry revenue increased by 2.9% to NT$33.51 billion due to sustained demand while New Business segment declined 48.2% to NT$1.72 billion due to a global slowdown in the solar sector, resulting in consolidated revenue of NT$35.21 billion. Cost of goods sold remained relatively flat from last quarter. Research and development expenses increased 4.3% to NT$3.47 billion. Net other operating expenses of NT$602 million was mostly due to an impairment loss from a solar subsidiary company.
COGS & Expenses --------------- (Amount: NT$ million) 3Q14 2Q14 QoQ % 3Q13 YoY % change change --- ------ ------ Net Operating Revenues 35,214 35,869 (1.8) 33,407 5.4 COGS (27,655) (27,662) (0.0) (26,070) 6.1 Depreciation (8,483) (8,662) (2.1) (8,151) 4.1 Other Mfg. Costs (19,172) (19,000) 0.9 (17,919) 7.0 Gross Profit 7,559 8,207 (7.9) 7,337 3.0 Gross Margin (%) 21.5% 22.9% 22.0% Operating Expenses (5,270) (5,280) (0.2) (4,894) 7.7 G&A (845) (857) (1.4) (854) (1.1) Sales & Marketing (957) (1,097) (12.8) (778) 23.0 R&D (3,468) (3,326) 4.3 (3,262) 6.3 Net Other Operating Income & Expenses (602) (10) 5,920.0 (48) 1,154.2 Operating Income 1,687 2,917 (42.2) 2,395 (29.6) ---------------- ----- ----- ----- ----- -----
Net non-operating income in 3Q14 was NT$1.3 billion. Net investment gain was NT$487 million. Gains from investment disposal totaled NT$580 million.
Non-Operating Income and Expenses --------------------------------- (Amount: NT$ million) 3Q14 2Q14 3Q13 -------------------- ---- ---- ---- Non-Operating Income and Expenses 1,305 937 1,561 Net Interest Income and Expenses (8) (149) (77) Net Investment Gain and Loss 487 188 639 Gain and Loss on Disposal of Investment 580 792 506 Exchange Gain and Loss 114 (4) 53 Other Gain and Loss 132 110 440 ------------------- --- --- ---
Cash inflow from operations was NT$12.04 billion. In 3Q14, CAPEX spending of NT$12.87 billion included NT$12.74 billion from the foundry segment, resulting in free cash outflow of NT$828 million. Cash outflow from financing activities was NT$6.66 billion, mostly due to the payment of NT$6.25 billion in cash dividends and cash paid from additional paid-in-capital to shareholders and loan repayment of NT$627 million. Total cash outflow was NT$6.89 billion in 3Q14. Over the next 12 months, the company expects to repay NT$4.44 billion in bank loans.
Cash Flow Summary ----------------- (Amount: NT$ million) For the 3-Month For the 3-Month -------------------- Period Ended Period Ended Sep. 30, 2014 Jun. 30, 2014 Cash Flow from Operating Activities 12,039 7,681 Net Income before tax 2,992 3,854 Depreciation & Amortization 10,195 9,949 Share of profit or loss of associates and joint ventures 54 (132) Gain on disposal of investments (580) (792) Impairment loss on non- financial assets 597 - Changes in Working Capital (1,488) (5,002) Other 269 (196) Cash Flow from Investing Activities (12,684) (7,032) Capital Expenditures (12,867) (7,885) Proceeds from disposal of available-for-sale financial assets 568 1,102 Acquisition of intangible assets (268) (428) Other (117) 179 Cash Flow from Financing Activities (6,659) (4,423) Bank Loans (627) 755 Bonds Issued - 5,000 Redemption of Bonds - (10,249) Cash Dividends and Cash paid from additional paid- in capital (6,253) - Other 221 71 Effect of Exchange Rate Changes 414 (523) on Cash and Cash Equivalents Net Decrease in Cash and Cash Equivalents (6,890) (4,297) ------------------------ ------ ------
Cash and cash equivalents decreased to NT$42.74 billion, mostly from CAPEX spending, cash dividends, and cash paid from additional paid-in-capital to shareholders in 3Q14. The days of inventory decreased to 46 days.
Current Assets -------------- (Amount: NT$ billion) 3Q14 2Q14 3Q13 -------------------- ---- ---- ---- Cash and Cash Equivalents 42.74 49.63 47.71 Notes & Accounts Receivable 21.93 21.62 18.66 Days Sales Outstanding 56 52 52 Inventories, net 14.31 13.84 14.17 Days of Inventory 46 47 50 Total Current Assets 91.8 98.37 88.9 -------------------- ---- ----- ----
Current liabilities decreased to NT$45.44 billion, largely from the payment of NT$6.25 billion in cash dividends and cash paid from additional paid-in-capital to shareholders. Debt to equity ratio decreased to 39%.
Liabilities ----------- (Amount: NT$ billion) 3Q14 2Q14 3Q13 -------------------- ---- ---- ---- Total Current Liabilities 45.44 49.68 52.27 Notes & Accounts Payable 6.75 6.85 7.62 Short-Term Credit / Bonds 15.26 15.75 23.44 Payables on Equipment 10.4 7.19 8.95 Other 13.03 19.89 12.26 Long-Term Credit / Bonds 31.98 31.92 28.8 Total Liabilities 84.43 88.69 88.35 Debt to Equity 39% 41% 42% -------------- --- --- ---
Analysis of Revenue[2] for Foundry Segment
Revenue from North America and Europe rose to 45% and 6% of sales respectively, primarily from the demand in the communication segment.
Revenue Breakdown by Region --------------------------- Region 3Q14 2Q14 1Q14 4Q13 3Q13 ------ ---- ---- ---- ---- ---- North America 45% 43% 45% 47% 43% ------------- --- --- --- --- --- Asia Pacific 44% 46% 45% 41% 44% ------------ --- --- --- --- --- Europe 6% 5% 7% 8% 7% ------ --- --- --- --- --- Japan 5% 6% 3% 4% 6% ----- --- --- --- --- ---
28nm revenue contribution rose to 3% while 40nm revenue represented 24% during 3Q14.
Revenue Breakdown by Geometry ----------------------------- Geometry 3Q14 2Q14 1Q14 4Q13 3Q13 -------- ---- ---- ---- ---- ---- 28nm and below 3% 1% 0% 0% 0% -------------- --- --- --- --- --- 28nm3Q14 Revenue from fabless customers increased to 91%.
Revenue Breakdown by Customer Type ---------------------------------- Customer Type 3Q14 2Q14 1Q14 4Q13 3Q13 -------- ---- ---- ---- ---- ---- Fabless 91% 90% 92% 89% 86% ------- --- --- --- --- --- IDM 9% 10% 8% 11% 14% --- --- --- --- --- ---The communication segment represented 54% of revenue in 3Q14, demonstrating the robust demand in handset and tablet devices.
Revenue Breakdown by Application (1) ----------------------------------- Application 3Q14 2Q14 1Q14 4Q13 3Q13 ----------- ---- ---- ---- ---- ---- Computer 15% 18% 18% 15% 16% -------- --- --- --- --- --- Communication 54% 49% 46% 49% 52% ------------- --- --- --- --- --- Consumer 28% 29% 31% 31% 28% -------- --- --- --- --- --- Others 3% 4% 5% 5% 4% ------ --- --- --- --- ---(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/ MP4, flash controller, game consoles, DSC, smart cards, toys, etc. [2] Revenue in this section represents wafer salesBlended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained flat in 3Q14.
(To view ASP trend, visit http://www.umc.com/english/investors/3Q14_ASP_trend.asp)Shipment and Utilization Rate[3] for Foundry Segment
Wafer shipments increased 2.5% quarterly to 1,462K in 3Q14, bringing overall utilization rate to 93%.
Wafer Shipments --------------- 3Q14 2Q14 1Q14 4Q13 3Q13 ---- ---- ---- ---- ---- Wafer Shipments 1,462 1,426 1,258 1,236 1,329 ----- ----- ----- ----- ----- (8" K equivalents) ------------ Quarterly Capacity Utilization Rate ----------------------------------- 3Q14 2Q14 1Q14 4Q13 3Q13 ---- ---- ---- ---- ---- Utilization Rate 93% 90% 81% 79% 87% ----------- --- --- --- --- --- Total Capacity 1,586 1,597 1,563 1,560 1,548 ----- ----- ----- ----- ----- (8" K equivalents) ------------[3] Utilization Rate = Quarterly Wafer Out / Quarterly CapacityCapacity[4] for Foundry Segment
Capacity during the third quarter was 1,586K 8-inch equivalent wafers. The difference of 11K 8-inch equivalent wafers during 3Q14 compared to 2Q14 was primarily due to the change in capacity profile at Fab8D and the capacity upgrades at Fab12i. Fourth quarter¡¦s estimated capacity will be approximately 1,577K 8-inch equivalent wafer, the net result of 28nm capacity expansion at Fab12A with current capacity upgrades at Fab12i.
Annual Capacity in Quarterly Capacity in thousands of wafers thousands of wafers ------------------- ------------------- FAB Geometry 2013 2012 2011 2010 FAB 4Q14E 3Q14 2Q14 1Q14 (um) --- --- Fab6A 6" 3.5 - 0.45 448 481 538 588 Fab6A 113 113 113 111 ----- --- ---------- --- --- --- --- ----- --- --- --- --- Fab8A 8" 0.5 - 0.25 813 815 813 816 Fab8A 204 204 204 201 ----- --- ---------- --- --- --- --- ----- --- --- --- --- Fab8C 8" 0.35 - 0.11 347 360 359 366 Fab8C 87 87 87 86 ----- --- ----------- --- --- --- --- ----- --- --- --- --- Fab8D 8" 0.13 - 0.09 382 371 364 314 Fab8D 86 86 93 94 ----- --- ----------- --- --- --- --- ----- --- --- --- --- Fab8E 8" 0.5 - 0.18 418 449 469 410 Fab8E 105 105 105 103 ----- --- ---------- --- --- --- --- ----- --- --- --- --- Fab8F 8" 0.18 - 0.11 388 389 388 388 Fab8F 98 98 98 96 ----- --- ----------- --- --- --- --- ----- --- --- --- --- Fab8S 8" 0.18 - 0.11 335 348 307 304 Fab8S 84 84 84 83 ----- --- ----------- --- --- --- --- ----- --- --- --- --- Fab8N 8" 0.5 -0.13 469 - - - Fab8N 140 140 140 126 ----- --- --------- --- --- --- --- ----- --- --- --- --- Fab12A 12" 0.18 - 0.028 651 579 501 374 Fab12A 180 174 174 171 ------ --- ------------ --- --- --- --- ------ --- --- --- --- Fab12i 12" 0.13 - 0.040 550 537 530 454 Fab12i 135 145 147 145 ------ --- ------------ --- --- --- --- ------ --- --- --- --- Total(1) 6,107 5,514 5,322 4,791 Total 1,577 1,586 1,597 1,563 ======= ===== ===== ===== ===== ===== ===== ===== ===== ===== 11% 4% 11% 4% YoY Growth Rate === 2010~2012 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
The foundry capital expenditure for 2014 will be US$1.3 billion. Spending during the first nine months of 2014 in the foundry segment was US$885 million.
Capital Expenditure by Year- in US$ billion ------------------------------------------- Year 2013 2012 2011 2010 2009 ---- ---- ---- ---- ---- ---- CAPEX $1.10 $1.70 $1.60 $1.80 $0.55 ----- ----- ----- ----- ----- ----- 2009~2012 figures account for UMC parent company only.2014 CAPEX Plan --------------- 8" 12" Total --- --- ----- 12% 88% US$ 1.3 billion --- --- ---------------[4] Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.Fourth Quarter of 2014 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Foundry Segment Wafer Shipment: To decrease by approximately 3% -- Foundry Segment ASP in US$: To increase by approximately 1% -- Foundry Segment Profitability: Gross margin will be in the mid-20 percentage range -- Foundry Segment Capacity Utilization: Approximately 90% -- Expect to recognize approximately US$50mn from Fujitsu for 40nm licensing fee -- Guidance to New Business Segment: Revenue to be approximately NT$2.5bn and net loss attributable to UMC parent company to be approximately NT$400mnRecent Developments / Announcements
Oct. 28, 2014 UMC Enters Volume Production for Lantiq's Communication ICs ------------- -------------------------------- Oct. 09, 2014 UMC Board Resolves to Enter a Joint Venture Agreement for a 12" Fab in China ------------- ------------------------------------ Sep. 16, 2014 UMC Selected as a DJSI Global Component for Seventh Consecutive Year ------------- ---------------------------------- Sep. 03, 2014 NJR Analog ICs Manufactured at UMC Adopted by Major Japanese Auto OEM ------------- ----------------------------------- Aug. 29, 2014 UMC Joins Fujitsu's New Foundry Company ------------- -------------------------------- Aug. 08, 2014 UMC Again Earns Top 10 Ranking for Corporate Citizenship by Taiwan's CommonWealth Magazine ------------- ----------------------------------- Aug. 06, 2014 NJR and UMC Extends Collaboration to MEMS Microphone Manufacturing ------------- ------------------------------------ Jul. 30, 2014 UMC 2Q 2014 Financial Results ------------- -----------------------------Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, October 29, 2014
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1-800 871-3110, 1-888 700-7397 Taiwan Number: 02-2192-8016 Other Areas: +886-2-2192-8016 Access Code: UMCA live webcast and replay of the 3Q14 results announcement will be available at http://www.umc.com under the "Investors / Events" section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC¡¦s robust foundry solutions allow chip designers to leverage the company¡¦s leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC¡¦s filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Balance Sheet As of September 30, 2014 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) September 30, 2014 ------------------ US$ NT$ % --- --- --- Assets Current assets Cash and cash equivalents 1,406 42,744 14.2% Financial assets at fair value through profit or loss, current 21 649 0.2% Available-for- sale financial assets, current 72 2,190 0.7% Notes & Accounts receivable, net 721 21,932 7.3% Inventories, net 471 14,310 4.8% Other current assets 328 9,977 3.3% Total current assets 3,019 91,802 30.5% ----- ------ ---- Non-current assets Funds and investments 1,093 33,236 11.0% Property, plant and equipment 5,343 162,474 54.0% Other non- current assets 437 13,310 4.5% Total non- current assets 6,873 209,020 69.5% ----- ------- ---- Total assets 9,892 300,822 100.0% ===== ======= ===== Liabilities Current liabilities Short-term loans 233 7,075 2.4% Financial liabilities at fair value through profit or loss, current 0 8 0.0% Payables 963 29,271 9.7% Current portion of long-term liabilities 269 8,188 2.7% Other current liabilities 29 902 0.3% Total current liabilities 1,494 45,444 15.1% ----- ------ ---- Non-current liabilities Bonds payable 821 24,977 8.3% Long-term loans 231 7,008 2.4% Other non- current liabilities 230 7,001 2.3% Total non- current liabilities 1,282 38,986 13.0% ----- ------ ---- Total liabilities 2,776 84,430 28.1% ----- ------ ---- Equity Equity attributable to the parent company Capital 4,184 127,248 42.3% Additional paid- in capital 1,296 39,418 13.1% Retained earnings, unrealized gain or loss on available-for- sale 1,587 48,244 16.0% financial assets and exchange differences on translation of foreign operations Treasury stock (78) (2,365) (0.8%) Total equity attributable to the parent company 6,989 212,545 70.6% Non-controlling interests 127 3,847 1.3% --- ----- --- Total equity 7,116 216,392 71.9% ----- ------- ---- Total liabilities and equity 9,892 300,822 100.0% ===== ======= ===== Note?New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar. All figures are prepared in accordance with TIFRSs.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data Year over Year Comparison Quarter over Quarter Comparison ------------------------- ------------------------------- Three-Month Period Ended Three-Month Period Ended September 30, 2014 September 30, 2013 % September 30, 2014 June 30, 2014 % ------------------ ------------------ ------------------ ------------- US$ NT$ US$ NT$ Chg. US$ NT$ US$ NT$ Chg. --- --- --- --- ---- --- --- --- --- ---- Net operating revenues 1,158 35,214 1,099 33,407 5.4% 1,158 35,214 1,180 35,869 (1.8%) Operating costs (909) (27,655) (858) (26,070) 6.1% (909) (27,655) (910) (27,662) (0.0%) Gross profit 249 7,559 241 7,337 3.0% 249 7,559 270 8,207 (7.9%) --- ----- --- ----- --- --- ----- --- ----- 21.5% 21.5% 22.0% 22.0% 21.5% 21.5% 22.9% 22.9% Operating expenses - Sales and marketing expenses (32) (957) (26) (778) 23.0% (32) (957) (36) (1,097) (12.8%) - General and administrative expenses (28) (845) (28) (854) (1.1%) (28) (845) (28) (857) (1.4%) - Research and development expenses (114) (3,468) (107) (3,262) 6.3% (114) (3,468) (110) (3,326) 4.3% Subtotal (174) (5,270) (161) (4,894) 7.7% (174) (5,270) (174) (5,280) (0.2%) ---- ------ ---- ------ --- ---- ------ ---- ------ ----- Net other operating income and expenses (20) (602) (1) (48) 100.0% (20) (602) (0) (10) 100.0% --- ---- --- --- ----- --- ---- --- ----- Operating income 55 1,687 79 2,395 (29.6%) 55 1,687 96 2,917 (42.2%) 4.8% 4.8% 7.2% 7.2% 4.8% 4.8% 8.1% 8.1% Net non-operating income and expenses 43 1,305 51 1,561 (16.4%) 43 1,305 31 937 39.3% --- ----- --- ----- ------ --- ----- --- --- ---- Income from continuing operations before income tax 98 2,992 130 3,956 (24.4%) 98 2,992 127 3,854 (22.4%) 8.5% 8.5% 11.8% 11.8% 8.5% 8.5% 10.7% 10.7% Income tax expense (13) (413) (19) (590) (30.0%) (13) (413) (18) (528) (21.8%) --- ---- --- ---- ------ --- ---- --- ---- ------ Net income 85 2,579 111 3,366 (23.4%) 85 2,579 109 3,326 (22.5%) 7.3% 7.3% 10.1% 10.1% 7.3% 7.3% 9.3% 9.3% Other comprehensive income (loss) (50) (1,501) (74) (2,249) (33.3%) (50) (1,501) 4 103 - --- ------ --- ------ ------ --- ------ --- --- --- Total comprehensive income 35 1,078 37 1,117 (3.5%) 35 1,078 113 3,429 (68.6%) === ===== === ===== ===== === ===== === ===== ====== Net income attributable to: Stockholders of the parent 96 2,916 114 3,476 (16.1%) 96 2,916 115 3,482 (16.3%) Non-controlling interests (11) (337) (3) (110) 100.0% (11) (337) (6) (156) 100.0% Comprehensive income attributable to: Stockholders of the parent 45 1,372 41 1,255 9.3% 45 1,372 120 3,636 (62.3%) Non-controlling interests (10) (294) (4) (138) 100.0% (10) (294) (7) (207) 42.0% Earnings per share-basic 0.008 0.23 0.009 0.28 0.008 0.23 0.009 0.28 ----- ---- ----- ---- ----- ---- ----- ---- Earnings per ADS (2) 0.038 1.15 0.046 1.40 0.038 1.15 0.046 1.40 ----- ---- ----- ---- ----- ---- ----- ---- Weighted average number of shares outstanding (in millions) 12,501 12,460 12,501 12,489 ------ ------ ------ ------ Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar. All figures are prepared in accordance with TIFRSs. (2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data For the Three-Month Period Ended For the Nine-Month Period Ended September 30, 2014 September 30, 2014 ------------------ ------------------ US$ NT$ % US$ NT$ % --- --- --- --- --- --- Net operating revenues 1,158 35,214 100.0% 3,380 102,777 100.0% Operating costs (909) (27,655) (78.5%) (2,668) (81,110) (78.9%) Gross profit 249 7,559 21.5% 712 21,667 21.1% --- ----- ---- --- ------ ---- Operating expenses - Sales and marketing expenses (32) (957) (2.7%) (95) (2,888) (2.8%) - General and administrative expenses (28) (845) (2.4%) (84) (2,549) (2.5%) - Research and development expenses (114) (3,468) (9.9%) (333) (10,129) (9.9%) Subtotal (174) (5,270) (15.0%) (512) (15,566) (15.2%) ---- ------ ------ ---- ------- ------ Net other operating income and expenses (20) (602) (1.7%) (18) (557) (0.5%) Operating income 55 1,687 4.8% 182 5,544 5.4% Net non-operating income and expenses 43 1,305 3.7% 86 2,594 2.5% --- ----- --- --- ----- --- Income from continuing operations before income tax 98 2,992 8.5% 268 8,138 7.9% Income tax expense (13) (413) (1.2%) (37) (1,122) (1.1%) --- ---- ----- --- ------ ----- Net income 85 2,579 7.3% 231 7,016 6.8% Other comprehensive income (loss) (50) (1,501) (4.2%) 90 2,731 2.7% --- ------ ----- --- ----- --- Total comprehensive income 35 1,078 3.1% 321 9,747 9.5% === ===== === === ===== === Net income attributable to: Stockholders of the parent 96 2,916 8.3% 249 7,578 7.4% Non-controlling interests (11) (337) (1.0%) (18) (562) (0.6%) Comprehensive income attributable to: Stockholders of the parent 45 1,372 3.9% 338 10,269 10.0% Non-controlling interests (10) (294) (0.8%) (17) (522) (0.5%) Earnings per share-basic 0.008 0.23 0.020 0.61 ----- ---- ----- ---- Earnings per ADS (2) 0.038 1.15 0.100 3.05 ----- ---- ----- ---- Weighted average number of shares 12,501 12,490 outstanding (in millions) Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar. All figures are prepared in accordance with TIFRSs. (2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statement of Cash Flows For The Nine-Month Period Ended September 30, 2014 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) USD NTD --- --- Cash flows from operating activities : Net income before tax 268 8,138 Depreciation & Amortization 986 29,994 Impairment loss on financial assets 8 257 Impairment loss on non- financial assets 20 597 Gain on disposal of investments (57) (1,739) Changes in notes & accounts receivable (167) (5,084) Changes in other current assets (158) (4,796) Changes in assets, liabilities and others (47) (1,415) --- ------ Net cash provided by operating activities 853 25,952 Cash flows from investing activities : Acquisition of available- for- sales financial assets (5) (167) Proceeds from disposal of available- for- sale financial assets 72 2,199 Acquisition of financial assets measured at cost (24) (747) Proceeds from sale of financial assets measured at cost 22 674 Acquisition ofinvestments accounted for under the equity method (4) (121) Acquisition of property, plant and equipment (889) (27,029) Proceeds from disposal of property, plant and equipment 8 253 Acquisition of intangible assets (29) (871) Others (0) (7) --- --- Net cash used in investing activities (849) (25,816) Cash flows from financing activities : Increase in short- term loans 78 2,364 Proceeds from bonds issued 164 5,000 Redemption of bonds (339) (10,306) Proceeds from long- term loans 60 1,824 Repayments of long- term loans (57) (1,735) Cash dividends and cash paid from additional paid- in capital (206) (6,253) Others 14 419 --- --- Net cash used in financing activities (286) (8,687) Effect of exchange rate changes on cash and cash equivalents 16 464 --- --- Net decrease in cash and cash equivalents (266) (8,087) Cash and cash equivalents at beginning of period 1,672 50,831 ----- ------ Cash and cash equivalents at end of period 1,406 42,744 ===== ====== Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar. All figures are prepared in accordance with TIFRSs.Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16900
bowen_huang@umc.com / david_wong@umc.comSOURCE United Microelectronics Corporation