UNITED MICROELECTRONICS CORPORATION 
By TAIPEI, Jan. 24, 2014 /PRNewswire/ --
Fourth Quarter 2013 Overview[1]:
-- Revenue: NT$30.72 billion (US$1.03 billion)
-- Gross margin: 18.1%; operating margin: 0.6%
-- Foundry capacity utilization rate: 79%
-- Net income attributable to the stockholders of the parent: NT$0.75
billion (US$25 million)
-- Earnings per share: NT$0.06; earnings per ADS: US$0.010
[1] Unless otherwise stated,
all financial figures
discussed in this announcement
are prepared in accordance
with TIFRSs recognized by
Financial Supervisory
Commission in the ROC, which
is different from IFRSs issued
by the International
Accounting Standards Board.
They represent comparisons
among the three-month period
ending Dec 31, 2013, the
three-month period ending Sep
30, 2013, and the equivalent
three-month period that ended
Dec 31, 2012. For all 4Q13
results, New Taiwan Dollar
(NT$) amounts have been
converted into U.S. Dollars at
the Dec 31, 2013 exchange rate
of NT$ 29.85 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2013.
Revenue was NT$30.72 billion, with gross margin at 18.1% and operating margin at 0.6%. Net income attributable to the stockholders of the parent was NT$0.75 billion, with earnings per ordinary share of NT$0.06.
Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter of 2013, UMC recorded NT$28.58 billion in revenue from the foundry segment, with operating margin from foundry operations of 2.7%. Wafer shipments reached 1.236 million 8-inch equivalent wafers, bringing overall capacity utilization to 79%."
CEO Yen added, "During the fourth quarter of 2013, our 40nm and below business represented 24% of UMC sales. This continued growth demonstrates the strength of our 40nm platform, which has been adopted by numerous customers from a wide range of diversified markets. We also continue to achieve new milestones for our specialty technologies, recently surpassing 15 million IC shipments for our 55nm embedded high-voltage process in just one year. Our engineering teams have further miniaturized the SRAM cell for this process to power today's highest resolution smartphones, continuously pushing the boundaries of specialty technologies in 55nm and beyond. For 28nm, we have made significant strides on our 28nm status to become a competitive foundry supplier, bolstered by yield improvement that has helped us secure additional design wins. To further strengthen our 28nm design platform, we now offer ARM Artisan physical IP for our 28HLP, UMC's 28nm high performance, low power process that optimally balances die size, speed and leakage performance to target low power applications. This collaboration adds ARM's POP IP core hardening acceleration technology to shorten time-to-market through proven, rigorous silicon validation for our customers designing into 28HLP."
CEO Yen continued, "For the first quarter, we anticipate softer business due to normal early-year seasonality. In 2014, we are optimistic that UMC will benefit from product design wins across a broad spectrum of the semiconductor industry. We will leverage our manufacturing excellence and deploy capacity expansion not only for 28nm HK/MG lines, but also for upgrades at our 8" and 12" fabs to fulfill emerging requirements. As such, UMC's CAPEX for 2014 will be approximately US$1.1 billion to US$1.3 billion. This investment will help UMC to expand economies of scale to drive down manufacturing costs and achieve a prolonged structural increase in productivity. These efforts will propel UMC's market share growth in leading-edge technologies and further expand our presence in the specialty segment, strengthening our position in the foundry industry."
Summary of Operating Results
Operating Results
-----------------
(Amount: NT$ million) 4Q13 3Q13 QoQ % 4Q12 YoY %
change change
Net Operating Revenues 30,719 33,407 (8.0) 28,854 6.5
Gross Profit 5,557 7,337 (24.3) 3,225 72.3
Operating Expenses (5,317) (4,894) 8.6 (3,950) 34.6
Net Other Operating Income and Expenses (46) (48) (4.2) (125) (63.2)
Operating Income 194 2,395 (91.9) (850) -
Net Non-Operating Income and Expenses 889 1,561 (43.0) 1,380 (35.6)
Net Income Attributable to the Stockholders of the Parent 749 3,476 (78.5) 739 1.4
EPS (NT$ per share) 0.06 0.28 0.06
(US$ per ADS[2]) 0.010 0.047 0.010
--------------- ----- ----- -----
[2] One ADS represents five Taiwan-listed ordinary shares.
Revenue decreased 8.0% QoQ to NT$30.72 billion from NT$33.41 billion in 3Q13, and increased 6.5% YoY from NT$28.85 billion in 4Q12. Gross profit was NT$5.56 billion, or 18.1% of revenue, compared to NT$7.34 billion, or 22.0% of 3Q13 revenue. Operating income for the quarter was NT$0.19 billion, or 0.6% of revenue, compared to operating income of NT$2.40 billion, or 7.2% of 3Q13 revenue. Net income attributable to the stockholders of the parent in 4Q13 was NT$0.75 billion, compared to NT$3.48 billion in 3Q13.
Earnings per ordinary share for the quarter were NT$0.06. Earnings per ADS were US$0.010. The basic weighted average number of outstanding shares in 4Q13 was 12,476,082,332, compared with 12,459,978,088 shares in 3Q13 and 12,635,635,936 shares in 4Q12. The diluted weighted average number of outstanding shares was 13,243,379,446 in 4Q13, compared with 13,201,315,449 shares in 3Q13 and 13,379,741,687 shares in 4Q12. The fully diluted share count on December 31, 2013 was approximately 13,336,571,000. On December 31, 2013, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Revenue decreased 8.0% QoQ to NT$30.72 billion from NT$33.41 billion in 3Q13, mainly due to decrease in ASP and wafer shipments. Total operating expenses increased by 8.6% to NT$5.32 billion. Sales and Marketing expenses increased 16.5% to NT$906 million mainly from increased IP and mask expenditures. Research & development expenses increased to NT$3.59 billion including year-end advanced tool maintenance expenditures and an increase in R&D wafers.
COGS & Expenses
---------------
(Amount: NT$ million) 4Q13 3Q13 QoQ % 4Q12 YoY %
change change
--- ------ ------
Net Operating Revenues 30,719 33,407 (8.0) 28,854 6.5
COGS (25,162) (26,070) (3.5) (25,629) (1.8)
Depreciation (7,939) (8,151) (2.6) (7,516) 5.6
Other Mfg. Costs (17,223) (17,919) (3.9) (18,113) (4.9)
Gross Profit 5,557 7,337 (24.3) 3,225 72.3
Gross Margin (%) 18.1% 22.0% 11.2%
Operating Expenses (5,317) (4,894) 8.6 (3,950) 34.6
G&A (826) (854) (3.3) (783) 5.5
Sales & Marketing (906) (778) 16.5 (574) 57.8
R&D (3,585) (3,262) 9.9 (2,593) 38.3
Net Other Operating (46) (48) (4.2) (125) (63.2)
Income & Expenses
Operating Income 194 2,395 (91.9) (850) -
---------------- --- ----- ----- ---- ---
Net non-operating income for 4Q13 was NT$889 million. Net investment loss was NT$394 million, due to the recognition of impairment charges from financial assets. Gain on disposal of investments was NT$985 million primarily due to UMCJ disposal.
Non-Operating Income and Expenses
---------------------------------
(Amount: NT$ million) 4Q13 3Q13 4Q12
-------------------- ---- ---- ----
Non-Operating Income and Expenses 889 1,561 1,380
Net Interest Income and Expenses (53) (77) (92)
Net Investment Gain and Loss (394) 639 (229)
Gain and Loss on Disposal of Investment 985 506 1,606
Exchange Gain and Loss 114 53 (18)
Other Gain and Loss 237 440 113
------------------- --- --- ---
Cash inflow from operations was NT$10.81 billion in 4Q13. Free cash flow in 4Q13 was NT$3.06 billion, as CAPEX spending in the quarter was NT$7.75 billion including NT$7.57 billion from the foundry segment. Cash outflow from financing was NT$2.79 billion, mainly due to the bonds redemption of NT$1.97 billion and loans repayment of NT$842 million. Net cash inflow was NT$496 million in 4Q13. Over the next 12 months, the company expects to repay NT$2.92 billion in bank loans.
Cash Flow Summary
-----------------
(Amount: NT$ million) For the 3-Month For the 3-Month
Period Ended Period Ended
Dec. 31, 2013 Sep. 30, 2013
---
Cash Flow from Operating Activities 10,806 13,140
Net Income before tax 1,083 3,956
Depreciation & Amortization 9,568 9,495
Changes in Working Capital 658 414
Other (503) (725)
Cash Flow from Investing Activities (7,738) (10,722)
Capital Expenditures (7,751) (10,015)
Other 13 (707)
Cash Flow from Financing Activities (2,787) (4,467)
Bank Loans (842) 291
Redemption of Bonds (1,971) -
Cash Dividends - (5,061)
Other 26 303
Effect of Exchange Rate Changes 215 (478)
on Cash and Cash Equivalents
Net Increase(Decrease) in Cash and Cash Equivalents 496 (2,527)
--------------------------------------------------- --- ------
Cash and cash equivalents increased from NT$50.34 billion in 3Q13 to NT$50.83 billion in 4Q13. Days of inventory increased by one day to 51 days in 4Q13.
Current Assets
--------------
(Amount: NT$ billion) 4Q13 3Q13 4Q12
-------------------- ---- ---- ----
Cash and Cash Equivalents 50.83 50.34 42.49
Notes & Accounts Receivable 16.82 18.66 16.33
Days Sales Outstanding 53 52 54
Inventories, net 13.99 14.17 13.02
Days of Inventory 51 50 47
Total Current Assets 88.80 88.90 80.03
-------------------- ----- ----- -----
Current liabilities decreased to NT$48.20 billion, mainly reflecting the repayment of short-term credit/bonds and payment on equipment. Debt to equity ratio decreased to 39%.
Liabilities
-----------
(Amount: NT$ billion) 4Q13 3Q13 4Q12
-------------------- ---- ---- ----
Total Current Liabilities 48.20 52.27 40.12
Notes & Accounts Payable 7.41 7.62 6.27
Short-Term Credit / Bonds 21.19 23.44 14.66
Payable on Equipment 6.70 8.95 5.38
Other 12.90 12.26 13.81
Long-Term Credit / Bonds 28.42 28.80 32.15
Total Liabilities 83.46 88.35 78.51
Debt to Equity 39% 42% 38%
-------------- --- --- ---
Analysis of Revenue[3] for Foundry Segment
[3] Revenue in this
section represents
wafer sales
Revenue contribution from North America and Europe both grew, representing 47% and 8%, respectively.
Revenue Breakdown by Region
---------------------------
Region 4Q13 3Q13 2Q13 1Q13 4Q12
------ ---- ---- ---- ---- ----
North
America 47% 43% 47% 44% 45%
-------- --- --- --- --- ---
Asia
Pacific 41% 44% 42% 46% 45%
-------- --- --- --- --- ---
Europe 8% 7% 8% 9% 9%
------ --- --- --- --- ---
Japan 4% 6% 3% 1% 1%
----- --- --- --- --- ---
4Q12 figures account for UMC parent company only.
Revenue from 40nm and below technologies increased in 4Q13, representing 24% of sales. Advanced node revenue contribution from 65nm and below technologies accounted for 53% of revenue.
Revenue Breakdown by Geometry
-----------------------------
Geometry 4Q13 3Q13 2Q13 1Q13 4Q12
-------- ---- ---- ---- ---- ----
40nm and below 24% 20% 20% 18% 15%
-------------- --- --- --- --- ---
40nm
The percentage of revenue from fabless customers increased to 89%.
Revenue Breakdown by Customer Type
----------------------------------
Customer Type 4Q13 3Q13 2Q13 1Q13 4Q12
------------- ---- ---- ---- ---- ----
Fabless 89% 86% 90% 90% 90%
------- --- --- --- --- ---
IDM 11% 14% 10% 10% 10%
--- --- --- --- --- ---
4Q12 figures account for UMC parent company only.
The percentage of revenue from communication declined from 52% in 3Q13 to 49% in 4Q13, mainly due to the soft demand for wireless devices.
Revenue Breakdown by Application (1)
-----------------------------------
Application 4Q13 3Q13 2Q13 1Q13 4Q12
----------- ---- ---- ---- ---- ----
Computer 15% 16% 18% 22% 18%
-------- --- --- --- --- ---
Communication 49% 52% 51% 47% 50%
------------- --- --- --- --- ---
Consumer 31% 28% 28% 28% 29%
-------- --- --- --- --- ---
Others 5% 4% 3% 3% 3%
------ --- --- --- --- ---
4Q12 figures account for UMC parent company only.
(1) Computer consists of ICs such as CPU, GPU, HDD controllers,
DVD/CD-RW control ICs, PC chipset, audio codec, keyboard
controller, monitor scaler, USB, I/O chipset. Communication
consists of handset components, broadband, WLAN, bluetooth,
Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD
players, DTV, STB, MP3/MP4, flash controller, game consoles,
DSC, smart cards, toys, etc.
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) during 4Q13 decreased slightly.
(To view ASP trend, visit http://www.umc.com/english/investors/4Q13_ASP_trend.asp)
Shipment and Utilization Rate[4] for Foundry Segment
[4] Utilization
Rate = Quarterly
Wafer Out /
Quarterly Capacity
Wafer shipments decreased 7% sequentially to 1,236K in 4Q13, compared to 1,329K 8-inch equivalent wafers in 3Q13. The drop in wafer shipments and the rise in total capacity resulted in an overall utilization rate of 79% for the quarter.
Wafer Shipments
---------------
4Q13 3Q13 2Q13 1Q13 4Q12
---- ---- ---- ---- ----
Wafer
Shipments 1,236 1,329 1,307 1,125 1,069
(8" K
equivalents)
-------------
4Q12 figures account for UMC parent company only.
Quarterly Capacity Utilization Rate
-----------------------------------
4Q13 3Q13 2Q13 1Q13 4Q12
---- ---- ---- ---- ----
Utilization
Rate 79% 87% 85% 78% 80%
----------- --- --- --- --- ---
Total
Capacity 1,560 1,548 1,537 1,461 1,401
(8" K
equivalents)
-------------
4Q12 figures account for UMC parent company only.
Capacity[5] for Foundry Segment
[5] Estimated capacity
numbers are based on
calculated maximum output
rather than designed
capacity. The actual
capacity numbers may
differ depending upon
equipment delivery
schedules, pace of
migration to more advanced
process technologies, and
other factors affecting
production ramp-up.
Capacity during the fourth quarter was 1,560K 8-inch equivalent wafers. The incremental increase in capacity was due to the expansion at Fab12i. The estimated installed capacity for the first quarter of 2014 will be 1,563K 8-inch equivalent wafers due to the capacity expansion on advanced nodes at Fab12A.
Annual Capacity in Quarterly Capacity in
thousands of wafers thousands of wafers
------------------- -------------------
FAB Geometry 2013 2012 2011 2010 FAB 1Q14E 4Q13 3Q13 2Q13
(um)
--- ---
Fab6A 6" 3.5 - 0.45 448 481 538 588 Fab6A 111 113 113 113
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8A 8" 0.5 - 0.25 813 815 813 816 Fab8A 201 204 204 204
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8C 8" 0.35 - 0.11 347 360 359 366 Fab8C 86 87 87 87
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8D 8" 0.13 - 0.09 382 371 364 314 Fab8D 94 96 96 96
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8E 8" 0.5 - 0.18 418 449 469 410 Fab8E 103 105 105 105
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8F 8" 0.18 - 0.11 388 389 388 388 Fab8F 96 98 98 98
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8S 8" 0.18 - 0.11 335 348 307 304 Fab8S 83 84 84 84
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8N 8" 0.5 - 0.13 469 - - - Fab8N 126 128 128 128
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab12A 12" 0.18 - 0.028 651 579 501 374 Fab12A 171 164 164 164
------ --- ------------ --- --- --- --- ------ --- --- --- ---
Fab12i 12" 0.13 - 0.040 550 537 530 454 Fab12i 145 145 139 134
------ --- ------------ --- --- --- --- ------ --- --- --- ---
Total(1) 6,107 5,514 5,322 4,791 Total 1,563 1,560 1,548 1,537
======= ===== ===== ===== ===== ===== ===== ===== ===== =====
YoY Growth Rate 11% 4% 11% 4%
=============== === === === ===
2010~2012 figures account for UMC parent company only.
(1) One 6-inch wafer is converted into 0.5625(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 total capital expenditure for 2013 was US$1.1 billion, 91% of which accounted for capacity expansion at our 300mm facilities. The foundry capital expenditure for 2014 is expected to be in the range of US$1.1 billion to US$1.3 billion. 90% of the amount will be used for 12" advanced capacity expansion.
Capital Expenditure by Year - in US$ billion
--------------------------------------------
Year 2013 2012 2011 2010
---- ---- ---- ---- ----
CAPEX $1.1 $1.7 $1.6 $1.8
----- ---- ---- ---- ----
2009~2012 figures account for UMC parent company only.
2014 CAPEX Plan
---------------
8" 12" Total
--- --- -----
10% 90% US$1.1~1.3 billion
--- --- ------------------
Brief Summary of Full Year 2013 Consolidated Results
-- Revenue increased 7% YoY to NT$123.81 billion from NT$115.68 billion in
2012.
-- Gross margin was 19.0%, compared to 16.7% in 2012.
-- Operating margin was 3.3%, compared to 0.7% in 2012.
-- Net income attributable to the stockholders of the parent was NT$12.63
billion for 2013.
-- EPS was NT$1.01, or EPADS was US$0.169 for 2013, compared to EPS of
NT$0.49 or EPADS of US$0.082 for 2012.
-- The percentage of revenue from 40nm and below technologies increased
from 11% in 2012 to 20% in 2013. Percentage of revenue from 65nm and
below technologies accounted for 52% in 2013.
Operating Results
-----------------
(Amount: NT$ million) 2013 2012 YoY %
change
Net Operating Revenues 123,812 115,675 7.0
Gross Profit 23,563 19,310 22.0
Operating Expenses (19,406) (15,666) 23.9
Net Other Operating Income & Expenses (125) (2,791) (95.5)
Operating Income 4,032 853 372.7
Net Non-Operating Income & Expenses 10,330 5,525 87.0
Income Tax Expenses (2,257) (2,146) 5.2
Net Income Attributable to Stockholders of the Parent 12,630 6,177 104.5
EPS (NT$ per share) 1.01 0.49
(US$ per ADS) 0.169 0.082
------------ ----- -----
Annual Sales Breakdown in Revenue for Foundry Segment
Region 2013 2012
------ ---- ----
North America 45% 46%
------------- --- ---
Asia Pacific 43% 44%
------------ --- ---
Europe 8% 8%
------ --- ---
Japan 4% 2%
----- --- ---
Technology 2013 2012
---------- ---- ----
40nm and below 20% 11%
-------------- --- ---
40nmFirst Quarter of 2014 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Foundry Segment Wafer Shipments: Marginal increase
-- Foundry Segment ASP in US$: Decrease by approximately 4%
-- Foundry Segment Profitability: Gross profit margin will be in the
mid-teen percentage range
-- Foundry Segment Capacity Utilization: High 70% range
-- 2014 CAPEX for Foundry Segment: US$1.1bn to US$1.3bn
-- Guidance to New Business Segment: Revenue to be approximately NT$2.8bn
and operating loss to be approximately NT$0.5bn
Recent Developments / Announcements
Jan 14, ARM and UMC Extend 28nm IP
2014 Partnership to Target
Cost-Effective Mobile
and Consumer Applications
Jan 7, UMC Surpasses 15 Million
2014 Shipments for Customer
55nm SDDI Chips
Nov 29, UMC First Taiwanese
2013 Company Listed on CDP's
Climate Performance
Leadership Index
Oct 30, UMC 3Q 2013 Financial
2013 Results
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Friday, January 24, 2014
Time: 5:00 PM (Taipei) /
4:00 AM (New York)
/09:00 AM
(London)
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 4Q13 results announcement will be available at www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction is underway for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com.
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
Contacts:
Bowen Huang
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16957
bowen_huang@umc.com
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of December 31, 2013
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
December 31, 2013
-----------------
US$ NT$ %
--- --- ---
Assets
Current assets
Cash and cash equivalents 1,703 50,831 17.2%
Financial assets at fair value through profit or loss, current 21 633 0.2%
Available-for-sale financial assets, current 71 2,134 0.7%
Notes & Accounts receivable, net 564 16,822 5.7%
Inventories, net 469 13,993 4.7%
Other current assets 147 4,383 1.5%
Total current assets 2,975 88,796 30.0%
----- ------ ----
Non-current assets
Funds and investments 1,077 32,144 10.9%
Property, plant and equipment 5,439 162,353 54.9%
Other non-current assets 422 12,610 4.2%
Total non-current assets 6,938 207,107 70.0%
----- ------- ----
Total assets 9,913 295,903 100.0%
===== ======= =====
Liabilities
Current liabilities
Short-term loans 156 4,644 1.6%
Financial liabilities at fair value through profit or loss, current 0 2 0.0%
Payables 875 26,129 8.8%
Current portion of long-term liabilities 554 16,545 5.6%
Other current liabilities 30 884 0.3%
Total current liabilities 1,615 48,204 16.3%
----- ------ ----
Non-current liabilities
Bonds payable 669 19,979 6.8%
Long-term loans 283 8,436 2.9%
Other non-current liabilities 229 6,843 2.2%
Total non-current liabilities 1,181 35,258 11.9%
----- ------ ----
Total liabilities 2,796 83,462 28.2%
----- ------ ----
Equity
Equity attributable to the parent company
Capital 4,253 126,947 42.9%
Additional paid-in capital 1,518 45,326 15.3%
Retained earnings, unrealized gain or loss on available-for-sale 1,280 38,213 12.9%
financial assets and exchange differences on translation of
foreign operations
Treasury stock (79) (2,365) (0.8%)
Total equity attributable to the parent company 6,972 208,121 70.3%
Non-controlling interests 145 4,320 1.5%
--- ----- ---
Total equity 7,117 212,441 71.8%
----- ------- ----
Total liabilities and equity 9,913 295,903 100.0%
===== ======= =====
Note?New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison Quarter over Quarter Comparison
------------------------- -------------------------------
Three-Month Period Ended Three-Month Period Ended
December 31, 2013 December 31, 2012 % December 31, 2013 September 30,
2013 %
----------------- ----------------- ----------------- --------------
US$ NT$ US$ NT$ Chg. US$ NT$ US$ NT$ Chg.
--- --- --- --- ---- --- --- --- --- ----
Net operating revenues 1,029 30,719 967 28,854 6.5% 1,029 30,719 1,119 33,407 (8.0%)
Operating costs (843) (25,162) (859) (25,629) (1.8%) (843) (25,162) (873) (26,070) (3.5%)
Gross profit 186 5,557 108 3,225 72.3% 186 5,557 246 7,337 (24.3%)
--- ----- --- ----- ---- --- ----- --- ----- -------
18.1% 18.1% 11.2% 11.2% 18.1% 18.1% 22.0% 22.0%
Operating expenses
- Sales and marketing expenses (30) (906) (19) (574) 57.8% (30) (906) (26) (778) 16.5%
- General and administrative expenses (28) (826) (26) (783) 5.5% (28) (826) (29) (854) (3.3%)
- Research and development expenses (120) (3,585) (87) (2,593) 38.3% (120) (3,585) (109) (3,262) 9.9%
Subtotal (178) (5,317) (132) (3,950) 34.6% (178) (5,317) (164) (4,894) 8.6%
---- ------ ---- ------ ---- ---- ------ ---- ------ ---
Net other operating income and expenses (2) (46) (4) (125) (63.2%) (2) (46) (2) (48) (4.2%)
--- --- --- ---- ------ --- --- --- --- -----
Operating income (loss) 6 194 (28) (850) - 6 194 80 2,395 (91.9%)
0.6% 0.6% (2.9%) (2.9%) 0.6% 0.6% 7.2% 7.2%
Net non-operating income and expenses 30 889 46 1,380 (35.6%) 30 889 53 1,561 (43.0%)
--- --- --- ----- ------ --- --- --- ----- -------
Income from continuing operations before 36 1,083 18 530 100.0% 36 1,083 133 3,956 (72.6%)
income tax
3.5% 3.5% 1.8% 1.8% 3.5% 3.5% 11.8% 11.8%
Income tax expense (16) (495) (4) (124) 100.0% (16) (495) (20) (590) (16.1%)
--- ---- --- ---- ----- --- ---- --- ---- -------
Net income 20 588 14 406 44.8% 20 588 113 3,366 (82.5%)
1.9% 1.9% 1.4% 1.4% 1.9% 1.9% 10.1% 10.1%
Other comprehensive income 17 510 (161) (4,781) - 17 510 (76) (2,249) -
--- --- ---- ------ --- --- --- --- ------ ---
Total comprehensive income 37 1,098 (147) (4,375) - 37 1,098 37 1,117 (1.7%)
=== ===== ==== ====== === === ===== === ===== =====
Net income attributable to:
Stockholders of the parent 25 749 25 739 1.4% 25 749 116 3,476 (78.5%)
Non-controlling interests (5) (161) (11) (333) (51.7%) (5) (161) (3) (110) 46.4%
Comprehensive income attributable to:
Stockholders of the parent 42 1,239 (135) (4,042) - 42 1,239 42 1,255 (1.3%)
Non-controlling interests (5) (141) (12) (333) (57.7%) (5) (141) (5) (138) 2.2%
Earnings per share-basic 0.002 0.06 0.002 0.06 0.002 0.06 0.009 0.28
----- ---- ----- ---- ----- ---- ----- ----
Earnings per ADS (2) 0.010 0.30 0.010 0.30 0.010 0.30 0.047 1.40
----- ---- ----- ---- ----- ---- ----- ----
Weighted average number of shares
outstanding (in millions) 12,476 12,636 12,476 12,460
------ ------ ------ ------
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the Twelve-Month Period Ended
December 31, 2013 December 31, 2013
----------------- -----------------
US$ NT$ % US$ NT$ %
--- --- --- --- --- ---
Net operating revenues 1,029 30,719 100.0% 4,148 123,812 100.0%
Operating costs (843) (25,162) (81.9%) (3,359) (100,249) (81.0%)
Gross profit 186 5,557 18.1% 789 23,563 19.0%
--- ----- ---- --- ------ ----
Operating expenses
- Sales and marketing expenses (30) (906) (3.0%) (109) (3,247) (2.6%)
- General and administrative expenses (28) (826) (2.7%) (123) (3,666) (2.9%)
- Research and development expenses (120) (3,585) (11.7%) (418) (12,493) (10.1%)
Subtotal (178) (5,317) (17.4%) (650) (19,406) (15.6%)
---- ------ ------ ---- ------- ------
Net other operating income and expenses (2) (46) (0.1%) (4) (125) (0.1%)
Operating income 6 194 0.6% 135 4,032 3.3%
Net non-operating income and expenses 30 889 2.9% 346 10,330 8.3%
--- --- --- --- ------ ---
Income from continuing operations before 36 1,083 3.5% 481 14,362 11.6%
income tax
Income tax expense (16) (495) (1.6%) (75) (2,257) (1.8%)
--- ---- ----- --- ------ -----
Net income 20 588 1.9% 406 12,105 9.8%
Other comprehensive income 17 510 1.7% 5 154 0.1%
--- --- --- --- --- ---
Total comprehensive income 37 1,098 3.6% 411 12,259 9.9%
=== ===== === === ====== ===
Net income attributable to:
Stockholders of the parent 25 749 2.4% 423 12,630 10.2%
Non-controlling interests (5) (161) (0.5%) (17) (525) (0.4%)
Comprehensive income attributable to:
Stockholders of the parent 42 1,239 4.0% 428 12,773 10.3%
Non-controlling interests (5) (141) (0.4%) (17) (514) (0.4%)
Earnings per share-basic 0.002 0.06 0.034 1.01
----- ---- ----- ----
Earnings per ADS (2) 0.010 0.30 0.169 5.05
----- ---- ----- ----
Weighted average number of shares 12,476 12,508
outstanding (in millions)
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Twelve-Month Period Ended December 31, 2013
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
--- ---
Cash flows from operating activities :
Net income before tax 481 14,362
Depreciation & Amortization 1,288 38,432
Share of profit of associates and joint ventures (25) (749)
Impairment loss on financial assets 43 1,276
Impairment loss on non-financial assets 2 57
Gain on disposal of investments (74) (2,195)
Bargain purchase gain (240) (7,154)
Income tax paid (27) (816)
Changes in assets, liabilities and others 8 259
--- ---
Net cash provided by operating activities 1,456 43,472
Cash flows from investing activities :
Acquisition of available-for-sales financial assets (25) (733)
Proceeds from disposal of available-for-sale financial assets 99 2,965
Acquisition of financial assets measured at cost (42) (1,263)
Proceeds from capital reduction and liquidation of investment 12 373
Acquisition of subsidiaries (net of cash acquired) 88 2,641
Acquisition of property, plant and equipment (1,103) (32,911)
Proceeds from disposal of property, plant and equipment 19 577
Acquisition of intangible assets (97) (2,882)
Others (7) (283)
--- ----
Net cash used in investing activities (1,056) (31,516)
Cash flows from financing activities :
Decrease in short-term loans (41) (1,222)
Proceeds from bonds issued 335 10,000
Redemption of bonds (72) (2,153)
Proceeds from long-term loans 92 2,737
Repayments of long-term loans (208) (6,200)
Cash dividends (170) (5,061)
Exercise of employee stock options 15 442
Treasury stock acquired (75) (2,245)
Acquisition of subsidiaries (12) (344)
Others 5 122
--- ---
Net cash used in financing activities (131) (3,924)
Effect of exchange rate changes on cash and cash equivalents 11 311
--- ---
Net increase in cash and cash equivalents 280 8,343
Cash and cash equivalents at beginning of period 1,423 42,488
----- ------
Cash and cash equivalents at end of period 1,703 50,831
===== ======
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2013 exchange rate of NT $29.85 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
SOURCE United Microelectronics Corporation
