Yageo Corporation May, 2018 1
Disclaimer This announcement is not, and is not intended to be, an offer of securities for sale in the United States. Securities may not be offered or sold in the United States a b s e n t r e g i s t r a t i o n or an e x e m p t i o n f r o m r e g i s t r a t i o n u n d e r the U.S. Securities Act of 1933. Any public offering of securities to be made in the United States must be made by means of a prospectus containing detailed information about the issuer of the securities and its management as well as financial statements. There is not, and is currently not intended to be, any public offering of securities by Yageo Corporation in the United States. 2
A Global Passive Component Leader Yageo Corporation is a world leading total service provider of passive electronic components, with 27 sales/service offices in 15 countries, 7 manufacturing sites, 6 JIT logistic hubs and 2 R&D centers worldwide. Yageo offers a broad range of electronic components with resistors, capacitors, and wireless components and modules. In the recent years, Yageo s product technologies mainly focus on ultra small size, high power, high voltage, high reliability, low resistance, and low inductance. Yageo products are widely used in all kinds of electronic applications, including automotive, industrial, IoT, AR/VR, alternative energy, telecommunications, power supplies, computers and peripherals, and consumer electronics. 3
A Global Passive Component Leader As a total passive component solution provider, Yageo offers innovative global logistics, electronic data interchange, design-in services, web-based selfhelped platforms, and online B2B interfaces with advanced IT solutions and other ease-of-doingbusiness tools. Yageo has a strong and diversified customer profile, including global leading EMS, ODM, OEM, and distributors. Yageo currently is the world No.1 in chip-resistors and No. 3 in MLCCs. With the reputable 40-year-old brand, Yageo is a truly global company with leading position in Greater China, Europe, and ASEAN. 4
A Global Passive Component Leader Yageo achieved another record high revenue (NTD$ 32.26 billion) in 2017. As of April 30, 2018, its total market capitalization exceeded NTD$ 219 billion. Yageo delivered 24.59% of ROE in 2017, much higher than an average 15% of ROE ratio in past 3 years. Yageo was added to MSCI Global Standard Index (MSCI Taiwan Index), effective from December 1, 2017. Yageo was added to FTSE TWSE Taiwan 50 Index, effective from April 18, 2018. 5
Broad Product Offering Targeting Key Verticals Automotive Industrial Mobile Alternative Energy Notebook/Tablet Power Lighting Medical Home Appliances Networking Payment & Sales Yageo Passive Components 6
Serving Leading Global Customers U.S Europe Asia 7
Leading Market Position by Volume Chip Resistors - Ranked No. 1 MLCCs - Ranked No. 3 8
1Q18 Sales Revenue Breakdown By Product By Region Thru-hole Resistor 2% Others 1% Wireless 1% MLCC 62% Asia/ Rest 8% Europe 9% US 2% Chip Resistor 34% Greater China 81% * Above 1Q information is reviewed. NT$ 11,023 M QoQ +14.2% YoY +61.7% 9
1Q18 Sales Revenue Breakdown By Channel By Segment* Direct Sales 18% Automotive 13% Telecom 25% EMS 19% Industrial 32% Distributors 63% Computer 21% NT$ 11,023 M QoQ +14.2% YoY +61.7% * Above 1Q information is reviewed. * Based on the company s estimation from distributors, direct sales, and EMS customers. Consumer 9% 10
Y2017 Sales Revenue Breakdown By Product Europe 10% By Region US 2% Wireless 1% Thru-hole Resistor 3% Others 3% MLCC 52% Asia/ Rest 9% Chip Resistor 41% Greater China 79% NT$ 32,259 M YoY +16.1% * Above Y2017 information is audited. 11
Y2017 Sales Revenue Breakdown By Channel By Segment* Direct Sales 22% Automotive 10% Telecom 27% Industrial 30% EMS 22% Distributors 56% NT$ 32,259 M YoY +16.1% * Above Y2017 information is audited. * Based on the company s estimation from distributors, direct sales, and EMS customers. Consumer 9% Computer 24% 12
1Q2018 Income Statement Yageo Group Consolidate (reviewed) Amount in NTD Million Q1 / 18 Q4 / 17 Q-Q Q1 / 17 Y-Y Amount % Amount % Change % Amount % Change % Net Sales 11,023 100.0 9,651 100.0 14.2 6,818 100.0 61.7 Cost of Sales (5,357) -48.6 (5,432) -56.3 (1.4) (5,190) -76.1 3.2 Gross Profit 5,666 51.4 4,219 43.7 7.7 1,628 23.9 27.5 Operating Expenses (997) -9.0 (837) -8.7 (0.4) (693) -10.2 1.1 Operating Income 4,670 42.4 3,382 35.0 7.3 935 13.7 28.6 Non-operating Items (493) -4.5 141 1.5 (5.9) (88) -1.3 (3.2) Income Before Tax 4,177 37.9 3,524 36.5 1.4 847 12.4 25.5 Income Tax 102 0.9 (500) -5.2 6.1 (106) -1.6 2.5 Net Income 4,279 38.8 3,024 31.3 7.5 741 10.9 28.0 Minority Interest (20) -0.2 (7) -0.1 (0.1) (5) -0.1 (0.1) Net Income (attributable to the parent) 4,258 38.6 3,016 31.3 7.4 736 10.8 27.8 EPS 12.15 8.62 41.0 1.46 732.2 EBITDA 5,204 47.2 3,888 40.3 6.9 1,364 20.0 27.2 * Q-Q/Y-Y Change of Net Sales, Cost of Sales, EPS is in %, the rest of Changes is in % point. * The financial data is based on T-IFRS 13
1Q2018 Non-operating Items Yageo Group Consolidate (reviewed) Amount in NTD Million Q118 Q417 Q-Q Change % Q117 Y-Y Change % Foreign Exchange Gain (Loss)-Realized (116) (86) 34.9 84 (238.2) Foreign Exchange Gain (Loss)-Unrealized (464) (216) 114.9 (419) 10.7 Market price change--unrealized 24 57 (58.3) (1) (2,464.8) Net Interest Income (Expense) 106 98 7.7 19 449.5 Investment Income on Equity-Method 48 78 (38.6) 41 16.8 Other Investment Income 0 19 (100.0) 0 0.0 Gain/(Loss) on Sale of Investments 0 169 (100.0) 0 0.0 Others (89) 22 (506.6) 188 (147.6) (493) 141 (448.9) (88) 459.0 * The financial data is based on T-IFRS 14
Y2017 Income Statement Yageo Group Consolidate (audited) Amount in NTD Million Y2017 Y2016 Y-Y Amount % Amount % Change % Net Sales 32,259 100.0 27,784 100.0 16.1 Cost of Sales (21,761) (67.5) (21,226) (76.4) 2.5 Gross Profit 10,498 32.5 6,558 23.6 8.9 Operating Expenses (2,905) (9.0) (2,944) (10.6) 1.6 Operating Income 7,593 23.5 3,614 13.0 10.5 Non-operating Items 229 0.7 885 3.2 (2.5) Income Before Tax 7,822 24.2 4,499 16.2 8.1 Income Tax (1,141) (3.5) (895) (3.2) (0.3) Net Income 6,681 20.7 3,604 13.0 7.7 Minority Interest (25) (0.1) (52) (0.2) 0.1 Net Income (attributable to the parent) 6,656 20.6 3,553 12.8 7.8 EPS 15.64 6.14 154.7 EBITDA 9,438 29.3 5,504 19.8 9.4 * Q-Q/Y-Y Change of Net Sales, Cost of Sales, EPS is in %, the rest of Changes is in % point. * The financial data is based on T-IFRS 15
1Q2018 Selected Items from Balance Sheet Yageo Group Consolidate (reviewed) Amount in NTD Million Q118 Q417 Q-Q Q117 Y-Y Amount Amount Change % Amount Change % Cash and Cash Equivalents 19,937 17,336 15.0 13,860 43.8 Account Receivable 12,535 11,743 6.7 8,870 41.3 Inventory 6,041 4,872 24.0 4,360 38.5 Other Current Assets 1,278 1,131 13.0 1,207 5.9 Long-Term Investment 14,498 14,961 (3.1) 5,674 155.5 Net Properties 17,969 16,275 10.4 12,500 43.8 Other Assets 4,226 3,379 25.1 3,402 24.2 Total Assets 76,485 69,697 9.7 49,872 53.4 Short term Loans 19,010 18,725 1.5 16,141 17.8 Account Payable 8,155 7,515 8.5 6,743 21 Other Current Liabilities 6,752 6,207 8.8 4,284 57.6 Long-Term Loans 6,500 5,500 18.2 500 1,200.0 Other Liabilities 402 417 (3.5) 359 11.9 Total Liabilities 40,820 38,364 6.4 28,027 45.6 Total Equity 35,665 31,333 13.8 21,845 63.3 Total Liabilities & Equity 76,485 69,697 9.7 49,872 53.4 * The financial data is based on T-IFRS 16
1Q2018 Cash Flow Yageo Group Consolidate (reviewed) Amount in NTD Million Q118 Q417 Q-Q Q117 Y-Y Amount Amount Change % Amount Change % Net Cash Provided by (Used in) Operating Activities 3,340 2,740 21.9 1,888 76.9 Net Cash Provided by (Used in) Investing Activities 638 (2,117) (130.1) (1,586) (140.2) Net Cash Provided by (Used in) Financing Activities 1,277 (3,400) (137.6) (2,051) (162.3) FX Difference 100 157 (36.2) (961) (110.4) Net Increase (Decrease) in Cash and Cash Equivalents 5,355 (2,620) (304.4) (2,710) (297.6) Cash and Cash Equivalents, Beginning of Period 14,582 17,202 (15.2) 16,570 (12.0) Cash and Cash Equivalents, End of Period 19,937 14,582 36.7 13,860 43.8 * The financial data is based on T-IFRS 17
1Q2018 Working Capital Management Yageo Group Consolidate (reviewed) Amount in NTD Million Q118 Q417 Q-Q Change % Q117 Y-Y Change % Accounts Receivable 12,535 11,743 6.7 8,870 41.3 DSO 104 111 (6.0) 119 (12.5) Inventory 6,041 4,872 24.0 4,360 38.5 Inventory Conversion Period 104 80 30.6 78 33.7 Accounts Payable 8,155 7,515 8.5 6,743 20.9 Payable Deferral Period 115 113 2.5 120 (3.8) Net Working Capital 10,421 9,100 14.5 6,488 60.6 Cash Conversion Cycle 93 78 19.1 77 20.8 * The financial data is based on T-IFRS 18
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