UMC Reports Fourth Quarter 2015 Results

2015 full year foundry revenue up 9%; EPS up 11% YoY to NT$1.08

Jan 27, 2016, 04:29 ET from United Microelectronics Corporation

TAIPEI, Taiwan, Jan. 27, 2016 /PRNewswire/ --

Fourth Quarter 2015 Overview[1]:

  • Revenue: NT$33.85 billion (US$1.03 billion)
  • Gross margin: 20.6%; operating margin: 5.6%
  • Foundry revenue from advanced nodes: 11% from 28nm, 24% from 40nm
  • Foundry capacity utilization rate: 83%
  • Net income attributable to stockholders of the parent: NT$3.16 billion (US$96 million)
  • Earnings per share: NT$0.25; 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 fourth quarter of 2015.

Fourth quarter consolidated revenue was NT$33.85 billion, a 4.2% decrease from NT$35.32 billion in 3Q15 and a YoY decline of 9.1% from NT$37.24 billion in 4Q14. 4Q15 consolidated gross margin was 20.6%, with operating margin at 5.6%. Net income attributable to stockholders of the parent was NT$3.16 billion, with earnings per ordinary share of NT$0.25. For 2015, full year revenue was NT$144.83 billion, with NT$10.84 billion in operating income, NT$13.45 billion net income attributable to stockholders of parent and NT$1.08 earnings per share.

Po-Wen Yen, CEO of UMC, said "In the fourth quarter of 2015, UMC's foundry revenue declined 4.2% sequentially to NT$33.59 billion, due to continued inventory correction within the semiconductor industry. Wafer shipments reached 1.38 million 8-inch equivalent wafers, bringing overall capacity utilization rate to 83%. Our 28nm technology constituted 11% of 4Q15 revenue. For full year 2015, our foundry revenue grew 9% over 2014, aided by a 5% increase in total manufacturing capacity, higher blended ASP due to increased advanced node contribution and overall loading of approximately 90%. Our 28nm business tripled in 2015, propelled by strong demand from the communication sector. Furthermore, we have introduced a refined 28nm High-K Metal Gate (HKMG) process variation for communication ICs called 28HPCU, which operates at the same speed range as 28nm HKMG, but with lower standby current to considerably extend battery life. UMC will continue to strengthen our 28nm technology roadmap with enhanced processes that raise chip performance while lowering power consumption. Besides 28nm technologies, we have also observed stronger demand for chips used in the automotive industry, on both 8" and 12" manufacturing processes. UMC customers are now migrating from consumer grade products to more stringent grade 1 and grade 0 semiconductors designed for critical automotive safety functions. These products include power management, display driver, imaging sensors, and microcontrollers. As more products begin to rely on UMC's comprehensive 'Automotive Service Package', our exposure in the automotive supply chain will help generate a new revenue stream for our foundry business."

CEO Yen continued, "We are seeing signs of cyclical bottoming as most of our customers' inventory has returned to reasonable levels. For the first quarter of 2016, we expect our foundry revenue to remain flat. UMC is optimistic on the growth outlook for the foundry industry, led by communication and consumer products. We anticipate positive momentum for our 28nm as new products scheduled to enter production throughout the year provide additional business traction. To meet increased demand, we plan to expand our 12" operations with Tainan Fab 12A phase 5 coming online and Xiamen Fab 12X currently under construction. UMC has budgeted 2016 CAPEX at approximately US$2.2 billion, which will mainly focus on adding 300mm capacity. As a key upstream supplier, we look forward to expanding our involvement in exciting new applications, which will enable UMC to sustain our momentum across the industry."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

  4Q15

  3Q15

QoQ %
change

 4Q14

YoY %
change

Net Operating Revenues

33,849

35,320

(4.2)

37,235

(9.1)

Gross Profit

6,979

6,911

1.0

10,186

(31.5)

Operating Expenses

(5,065)

(5,126)

(1.2)

(5,672)

(10.7)

Net Other Operating Income and Expenses

(34)

(804)

(95.8)

18

-

Operating Income

1,880

981

91.6

4,532

(58.5)

Net Non-Operating Income and Expenses

906

410

121.0

843

7.5

Net Income Attributable to Stockholders of the Parent

3,160

1,708

85.0

4,563

(30.7)

EPS (NT$ per share)

0.25

0.14


0.36


       (US$ per ADS)

0.038

0.021


0.055


Consolidated revenues in 4Q15 declined 4.2% sequentially to NT$33.85 billion, including NT$33.59 billion from the foundry segment. Gross profit during the quarter grew 1% QoQ to NT$6.98 billion, or 20.6% of revenue. Operating expenses went down 1.2% to NT$5.07 billion. Net other operating expenses decreased 95.8% QoQ to NT$34 million leading to an operating income of NT$1.88 billion, or 5.6% of revenue, up 91.6% from 3Q15. Net non-operating income increased 121% QoQ to NT$0.91 billion compared to NT$0.41 billion in 3Q15. Net income attributable to stockholders of the parent in 4Q15 was NT$3.16 billion, up 85.0% from NT$1.71 billion in 3Q15.

Earnings per ordinary share for the quarter was NT$0.25. Earnings per ADS was US$0.038.  The basic weighted average number of outstanding shares in 4Q15 was 12,407,897,412, compared with 12,524,504,594 shares in 3Q15 and 12,509,658,059 shares in 4Q14.  The diluted weighted average number of outstanding shares was 13,601,975,910 in 4Q15, compared with 13,694,010,855 shares in 3Q15 and 12,620,712,149 shares in 4Q14.  The fully diluted share count on December 31, 2015 was approximately 13,858,726,000.  On December 31, 2015, UMC held 334 million treasury shares acquired from the 15th and 16th share buy-back programs.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

4Q15

3Q15

QoQ %
change

4Q14

YoY %
change

Net Operating Revenues

33,849

35,320

(4.2)

37,235

(9.1)

COGS

(26,870)

(28,409)

(5.4)

(27,049)

(0.7)

  Depreciation

(9,700)

(9,654)

0.5

(8,495)

14.2

  Other Mfg. Costs

(17,170)

(18,755)

(8.5)

(18,554)

(7.5)

Gross Profit

6,979

6,911

1.0

10,186

(31.5)

Gross Margin (%)

20.6%

19.6%


27.4%


Operating Expenses

(5,065)

(5,126)

(1.2)

(5,672)

(10.7)

  G&A

(916)

(942)

(2.8)

(1,013)

(9.6)

  Sales & Marketing

(1,044)

(1,045)

(0.1)

(1,124)

(7.1)

  R&D

(3,105)

(3,139)

(1.1)

(3,535)

(12.2)

Net Other Operating

Income & Expenses

(34)

(804)

(95.8)

18

-

Operating Income

1,880

 

981

91.6

 

4,532

(58.5)

Foundry revenue decreased 4.2% in 4Q15 to NT$33.59 billion, reflecting the IC industry inventory adjustment. Cost of goods sold was NT$26.87 billion, a decline of 5.4% QoQ, which resulted from a 8.5% decrease in other manufacturing costs due to softened demand.  4Q15 gross profit increased 1.0% to NT$6.98 billion, partly due to favorable foreign exchange rates. Operating expenses slightly decreased to NT$5.07 billion. R&D expenses represented 9.1% of operating revenues. Net other operating expenses fell to NT$34 million, resulting in operating income of NT$1.88 billion, up 91.6% from 3Q15.

Non-Operating Income and Expenses

(Amount: NT$ million)

4Q15

3Q15

4Q14

Non-Operating Income and Expenses

906

410

843

Net Interest Income and Expenses

(19)

(23)

(12)

Net Investment Gain and Loss

230

(396)

(37)

Gain and Loss on Disposal of Investment

376

612

639

Exchange Gain and Loss

(35)

471

201

Other Gain and Loss

354

(254)

52

Net non-operating income in 4Q15 was NT$906 million, including a NT$376 million gain on disposal of investment, NT$354 million in other gains and a NT$230 million gain from net investment.


Cash Flow Summary

(Amount: NT$ million)

For the 3-Month Period Ended

Dec. 31, 2015

For the 3-Month Period Ended

Sep. 30, 2015

Cash Flow from Operating Activities

15,428

16,286

     Net Income before tax

2,786

1,391

     Depreciation & Amortization

11,938

11,592

 Net loss (gain) of financial assets at

 FVTPL

(61)

321

 Share of profit or loss of associates     and joint ventures

(195)

159

 Gain on disposal of investments

(376)

(612)

 Impairment loss on financial assets

22

744

 Impairment loss on non-financial assets

-

795

    Changes in working capital

1,340

2,241

     Income tax paid

(98)

(574)

    Other

72

229

Cash Flow from Investing Activities

(17,065)

(20,416)

    Capital expenditures

(13,350)

(20,227)

    Acquisition of available-for-sale financial assets

(2,004)

(235)

    Proceeds from disposal of available-for-sale financial assets

591

645

    Acquisition of investments accounted

    for under the equity method

(2,364)

(51)

    Proceeds from capital reduction and liquidation of investments

256

294

    Changes in other noncurrent assets

73

(589)

    Other

(267)

(253)

Cash Flow from Financing Activities

2,893

(9,822)

    Bank loans

2,886

330

Treasury stock acquired

-

(2,203)

Acquisition of subsidiaries

3

(935)

     Cash dividends

-

(6,939)

    Other

4

(75)

Effect of Exchange Rate

(109)

2,049

 Net Cash Flow

1,147

(11,903)

Cash inflow from operating activities reached NT$15.43 billion. Cash outflow from investing activities totaled NT$17.07 billion, including NT$13.34 billion CAPEX spending for the foundry segment. Acquisition of available for sale financial assets totaled NT$2.00 billion, including NT$1.35 billion to acquire an increasing stake of Mie Fujitsu Semiconductor Limited through its new share issuance. Cash inflow from financing activities was NT$2.89 billion, mainly due to bank loans. Net cash inflow for 4Q15 was NT$1.15 billion. Over the next 12 months, the company expects to repay NT$6.60 billion in bank loans.

Current Assets

(Amount: NT$ billion)

4Q15

3Q15

 4Q14

Cash and Cash Equivalents

53.29

52.14

45.70

Notes & Accounts Receivable

19.33

19.76

22.37

  Days Sales Outstanding

53

53

54

Inventories, net

17.64

16.56

15.24

  Days of Inventory

58

52

50

Total Current Assets

94.82

95.03

96.86

Cash and cash equivalents increased to NT$53.29 billion, mainly due to bank loans. The days of inventory increased 6 days to 58 days, mainly due to an increase in WIP for 1Q16 wafer shipments.

Liabilities

(Amount: NT$ billion)

4Q15

3Q15

4Q14

Total Current Liabilities

48.25

44.47

48.11

  Notes & Accounts Payable

5.95

6.34

6.17

  Short-Term Credit / Bonds

12.11

8.84

10.03

  Payable on Equipment

14.66

14.08

10.48

  Liabilities directly associated with non-current assets held for sale

-

-

5.59

  Other

15.53

15.21

15.84

Long-Term Credit / Bonds

47.52

47.79

33.40

Long-Term Investment Liabilities

6.06

6.24

-

Total Liabilities

108.55

105.21

88.24

Debt to Equity

47%

47%

39%

Current liabilities increased to NT$48.25 billion, primarily from a NT$3.27 billion increase in short-term credit/bonds, leading to total liabilities of NT$108.55 billion. Debt to equity ratio remained at 47%.

Analysis of Revenue[2] for Foundry Segment

Revenue Breakdown by Region

Region

4Q15

3Q15

2Q15

1Q15

4Q14

North America

47%

45%

46%

47%

45%

Asia Pacific

37%

41%

42%

40%

42%

Europe

6%

6%

6%

7%

8%

Japan

10%

8%

6%

6%

5%

Revenue contribution from Asia Pacific decreased to 37% in 4Q15, partly from a decline in Asian Pacific customers' demand for communication products.

Revenue Breakdown by Geometry

Geometry

4Q15

3Q15

2Q15

1Q15

4Q14

28nm and below

11%

10%

11%

9%

7%

28nm<x<=40nm

24%

25%

22%

24%

21%

40nm<x<=65nm

23%

21%

21%

23%

24%

65nm<x<=90nm

4%

4%

6%

5%

7%

90nm<x<=0.13um

12%

14%

14%

13%

14%

0.13um<x<=0.18um

11%

11%

12%

12%

12%

0.18um<x<=0.35um

12%

12%

11%

11%

12%

0.5um and above

3%

3%

3%

3%

3%

28nm revenue represented 11% of 4Q15 sales, while 40nm revenue accounted for 24%. 65nm contribution increased to 23%, up from 21% in 3Q15.

Revenue Breakdown by Customer Type

Customer Type

4Q15

3Q15

2Q15

1Q15

4Q14

Fabless

85%

88%

89%

90%

90%

IDM

15%

12%

11%

10%

10%

4Q15 revenue from IDM customers increased to 15% of sales.

Revenue Breakdown by Application (1)

Application

4Q15

3Q15

2Q15

1Q15

4Q14

Computer

11%

11%

12%

13%

14%

Communication

52%

55%

55%

56%

54%

Consumer

29%

27%

28%

26%

28%

Others

8%

7%

5%

5%

4%

Revenue from communication segment declined to 52% of 4Q15 sales, partly due to a softer demand in the handset supply chain.

(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) slightly decreased in 4Q15.

(To view ASP trend, visit http://www.umc.com/english/investors/4Q15_ASP_trend.asp)

Shipment and Utilization Rate[3] for Foundry Segment

Wafer Shipments


4Q15

3Q15

2Q15

1Q15

4Q14

Wafer Shipments
(8" K equivalents)

1,384

1,467

1,536

1,481

1,431


Quarterly Capacity Utilization Rate


4Q15

3Q15

2Q15

1Q15

4Q14

Utilization Rate

83%

89%

94%

93%

93%

Total Capacity
(8" K equivalents)

1,690

1,685

1,659

1,583

1,577

Wafer shipments declined 5.6% to 1,384K in 4Q15. Quarterly capacity increased to 1,690K, resulting in an overall utilization rate of 83% for the quarter.

Capacity[4] for Foundry Segment

Overall capacity during the fourth quarter increased to 1,690K 8-inch equivalent wafers, due to the continuous expansion at Fab 8N. First quarter's estimated capacity will be approximately 1,692K 8-inch equivalent wafers from capacity deployment at Fab 8N and Fab 8A, along with the recognition of WTK's GaAs quarterly capacity.

Annual Capacity in

thousands of wafers


Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2015

2014

2013

2012


FAB

1Q16E

4Q15

3Q15

2Q15

WTK

6"

3.5 - 0.45

311

-

-

-


WTK

105

99

99

113

Fab 6A

6"

3.5 - 0.45

111

448

448

481


Fab 8A

206

204

204

204

Fab 8A

8"

0.5 - 0.25

813

813

813

815


Fab 8C

87

87

87

87

Fab 8C

8"

0.35 - 0.11

347

347

347

360


Fab 8D

85

86

86

86

Fab 8D

8"

0.13 - 0.09

341

358

382

371


Fab 8E

104

105

105

105

Fab 8E

8"

0.5 - 0.18

418

418

418

449


Fab 8F

97

98

98

98

Fab 8F

8"

0.18 - 0.11

388

388

388

389


Fab 8S

84

84

84

84

Fab 8S

8"

0.18 - 0.11

335

335

335

348


Fab 8N

187

183

178

162

Fab 8N

8"

0.5 - 0.13

667

547

469

-


Fab 12A

205

206

206

198

Fab 12A

12"

0.18 - 0.028

793

700

651

579


Fab 12i

144

144

144

144

Fab 12i

12"

0.13 - 0.040

572

573

550

537


Total

1,692

1,690

1,685

1,659

Total(1) 

6,617

6,323

6,107

5,514







YoY Growth Rate

5%

4%

11%

4%







2012 figures account for UMC parent company only.







(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers.  Capacity total figures are expressed in 8-inch equivalent wafers.

CAPEX for Foundry Segment

Capital Expenditure by Year - in US$ billion

Year

2015

2014

2013

2012

2011

CAPEX

$ 1.9

$ 1.4

$ 1.1

$ 1.7

$ 1.6

2011~2012 figures account for UMC parent company only


2016 CAPEX Plan

8"

12"

Total

5%

95%

US$2.2 billion

4Q15 CAPEX spending was US$410 million. Full year 2015 CAPEX totaled US$1.9 billion including US$190 million for Fab 12X. Foundry capital expenditure budget for 2016 is expected to be approximately US$2.2 billion, mainly for capacity deployment in 300mm facilities.

Brief Summary of Full Year 2015 Consolidated Results

Operating Results

(Amount: NT$ million)

2015

2014

YoY %
change

Net Operating Revenues

144,830

140,012

3.4

Gross Profit

31,769

31,853

(0.3)

Operating Expenses

(19,969)

(21,238)

(6.0)

Net Other Operating Income & Expenses

(964)

(539)

78.8

Operating Income

10,836

10,076

7.5

Net Non-Operating Income & Expenses

2,876

3,437

(16.3)

Income Tax Expense

(876)

(2,033)

(56.9)

Net Income Attributable to Stockholders of the Parent

13,449

12,141

10.8

EPS (NT$ per share)

1.08

0.97


       (US$ per ADS)

0.165

0.148


  • Consolidated revenue increased 3.40% YoY to NT$144.83 billion, up from NT$140.01 billion in 2014. Foundry segment revenue in 2015 increased 9.0% YoY to NT$141.19 billion, up from NT$129.53 billion in 2014.
  • Gross margin was 21.9%, compared to 22.8% in 2014.
  • Operating margin was 7.5%, compared to 7.2% in 2014.
  • Net income attributable to stockholders of the parent was NT$13.45 billion for 2015.
  • EPS was NT$1.08, or EPADS was US$0.165 for 2015.
  • The overall percentage of revenue from 28nm was 10% in 2015, while revenue from 40nm increased to 24%.

Annual Sales Breakdown in Revenue for Foundry Segment

Region

2015

2014

North America

46%

45%

Asia Pacific

40%

44%

Europe

7%

6%

Japan

7%

5%




Technology

2015

2014

28nm and below

10%

3%

28nm<x<=40nm

24%

21%

40nm<x<=65nm

22%

28%

65nm<x<=90nm

5%

7%

90nm<x<=0.13um

13%

14%

0.13um<x<=0.18um

11%

13%

0.18um<x<=0.35um

12%

11%

0.5um and above

3%

3%




Customer Type

2015

2014

Fabless

88%

91%

IDM

12%

9%




Application

2015

2014

Computer

12%

16%

Communication

54%

51%

Consumer

28%

29%

Others

6%

4%

First Quarter of 2016 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: To remain flat
  • ASP in US$: ASP softness offset by favorable USD to NTD exchange rate
  • Profitability: Gross profit margin will be in high teens % range
  • Foundry Segment Capacity Utilization: Approximately low 80% range
  • 2016 CAPEX for Foundry Segment: US$2.2bn

Recent Developments / Announcements

Please visit UMC's website for further details regarding the above announcements

Conference Call / Webcast Announcement

Wednesday, January 27, 2016

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 4Q15 results announcement will be available at
www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications spanning every major sector of the electronics industry. UMC's robust foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include volume production 28nm gate-last High-K/Metal Gate technology, ultra-low power platform processes specifically engineered for Internet of Things (IoT) applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for production of ICs found in cars. UMC's 10 wafer fabs are strategically located throughout Asia and are able to produce over 500,000 wafers per month. The company employs more than 17,000 people worldwide, with 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 December 31, 2015

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)




December 31, 2015


US$


NT$


%

Assets






Current assets






 Cash and cash equivalents

1,624


53,290


15.8%

 Financial assets at fair value through profit or loss, current

20


665


0.2%

 Notes & Accounts receivable, net

589


19,332


5.7%

 Inventories, net

538


17,641


5.2%

 Other current assets

119


3,889


1.2%

    Total current assets

2,890


94,817


28.1%







Non-current assets






 Funds and investments

1,224


40,151


11.9%

 Property, plant and equipment

5,682


186,433


55.3%

 Other non-current assets

486


15,966


4.7%

    Total non-current assets

7,392


242,550


71.9%

Total assets

10,282


337,367


100.0%







Liabilities






Current liabilities






 Short-term loans

168


5,505


1.6%

 Financial liabilities at fair value through profit or loss, current

0


1


0.0%

 Payables

1,071


35,131


10.4%

 Current portion of long-term liabilities

201


6,602


2.0%

 Other current liabilities

30


1,007


0.3%

    Total current liabilities

1,470


48,246


14.3%







Non-current liabilities






 Bonds payable

1,269


41,637


12.3%

 Long-term loans

179


5,888


1.7%

 Other non-current liabilities

390


12,779


3.9%

    Total non-current liabilities

1,838


60,304


17.9%

    Total liabilities

3,308


108,550


32.2%







Equity






Equity attributable to the parent company






Capital

3,888


127,581


37.8%

Additional paid-in capital

1,269


41,652


12.3%

Retained earnings, unrealized gain or loss on available-for-sale
    financial assets and exchange differences on translation of
    foreign operations

1,872


61,383


18.2%

Treasury stock

(117)


(3,826)


(1.1%)

     Total equity attributable to the parent company

6,912


226,790


67.2%

Non-controlling interests

62


2,027


0.6%

     Total equity

6,974


228,817


67.8%

Total liabilities and equity

10,282


337,367


100.0%


NoteNew Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar.

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

Except Per Share and Per ADS Data




Year over Year Comparison


Quarter over Quarter Comparison


Three-Month Period Ended




Three-Month Period Ended




December 31, 2015


December 31, 2014


Chg.


December 31, 2015


September 30, 2015


Chg.


US$


NT$


US$


NT$


%


US$


NT$


US$


NT$


%

Net operating revenues

1,032


33,849


1,135


37,235


(9.1%)


1,032


33,849


1,077


35,320


(4.2%)

Operating costs

(819)


(26,870)


(825)


(27,049)


(0.7%)


(819)


(26,870)


(866)


(28,409)


(5.4%)

Gross profit

213


6,979


310


10,186


(31.5%)


213


6,979


211


6,911


1.0%


20.6%


20.6%


27.4%


27.4%




20.6%


20.6%


19.6%


19.6%



Operating expenses




















  - Sales and marketing expenses

(32)


(1,044)


(34)


(1,124)


(7.1%)


(32)


(1,044)


(32)


(1,045)


(0.1%)

  - General and administrative expenses

(28)


(916)


(31)


(1,013)


(9.6%)


(28)


(916)


(29)


(942)


(2.8%)

  - Research and development expenses

(95)


(3,105)


(108)


(3,535)


(12.2%)


(95)


(3,105)


(95)


(3,139)


(1.1%)

      Subtotal

(155)


(5,065)


(173)


(5,672)


(10.7%)


(155)


(5,065)


(156)


(5,126)


(1.2%)

Net other operating income and expenses

(1)


(34)


1


18


-


(1)


(34)


(25)


(804)


(95.8%)

Operating income

57


1,880


138


4,532


(58.5%)


57


1,880


30


981


91.6%


5.6%


5.6%


12.2%


12.2%




5.6%


5.6%


2.8%


2.8%























Net non-operating income and expenses

28


906


26


843


7.5%


28


906


12


410


100.0%

Income from continuing operations before
   income tax

85


2,786


164


5,375


(48.2%)


85


2,786


42


1,391


100.0%


8.2%


8.2%


14.4%


14.4%




8.2%


8.2%


3.9%


3.9%























Income tax benefit(expense)

9


285


(28)


(911)


-


9


285


(2)


(84)


-

Net income

94


3,071


136


4,464


(31.2%)


94


3,071


40


1,307


100.0%


9.1%


9.1%


12.0%


12.0%




9.1%


9.1%


3.7%


3.7%























Other comprehensive income (loss)

54


1,776


122


4,006


(55.7%)


54


1,776


47


1,543


15.1%





















Total comprehensive income (loss)

148


4,847


258


8,470


(42.8%)


148


4,847


87


2,850


70.1%





















    Net income attributable to:




















Stockholders of the parent

96


3,160


139


4,563


(30.7%)


96


3,160


52


1,708


85.0%

Non-controlling interests

(2)


(89)


(3)


(99)


(10.1%)


(2)


(89)


(12)


(401)


(77.8%)





















    Comprehensive income (loss) attributable to:




















Stockholders of the parent

151


4,961


258


8,467


(41.4%)


151


4,961


98


3,215


54.3%

Non-controlling interests

(3)


(114)


0


3


-


(3)


(114)


(11)


(365)


(68.8%)





















Earnings per share-basic

0.008


0.25


0.011


0.36




0.008


0.25


0.004


0.14



Earnings per ADS (2)

0.038


1.25


0.055


1.80




0.038


1.25


0.021


0.70



Weighted average number of shares




















outstanding (in millions)



12,408




12,510






12,408




12,525











































Notes:




















(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar.







(2) 1 ADS equals 5 common shares.







 


UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

Except Per Share and Per ADS Data



For the Three-Month Period Ended


For the Twelve-Month Period Ended


December 31, 2015


December 31, 2015


US$


NT$


%


US$


 NT$ 


%

Net operating revenues

1,032


33,849


100.0%


4,414


144,830


100.0%

Operating costs

(819)


(26,870)


(79.4%)


(3,446)


(113,061)


(78.1%)

Gross profit

213


6,979


20.6%


968


31,769


21.9%

























Operating expenses












  - Sales and marketing expenses

(32)


(1,044)


(3.1%)


(124)


(4,064)


(2.8%)

  - General and administrative expenses

(28)


(916)


(2.7%)


(114)


(3,730)


(2.6%)

  - Research and development expenses

(95)


(3,105)


(9.1%)


(371)


(12,175)


(8.4%)

      Subtotal

(155)


(5,065)


(14.9%)


(609)


(19,969)


(13.8%)

Net other operating income and expenses

(1)


(34)


(0.1%)


(29)


(964)


(0.6%)

Operating income

57


1,880


5.6%


330


10,836


7.5%













Net non-operating income and expenses

28


906


2.6%


88


2,876


2.0%

Income from continuing operations before
   income tax

85


2,786


8.2%


418


13,712


9.5%

























Income tax benefit(expense)

9


285


0.9%


(27)


(876)


(0.6%)

Net income 

94


3,071


9.1%


391


12,836


8.9%













Other comprehensive Income (loss)

54


1,776


5.2%


(54)


(1,795)


(1.3%)













Total comprehensive income (loss)

148


4,847


14.3%


337


11,041


7.6%













    Net income attributable to:












Stockholders of the parent

96


3,160


9.3%


410


13,449


9.3%

Non-controlling interests

(2)


(89)


(0.2%)


(19)


(613)


(0.4%)













    Comprehensive income (loss) attributable to:












Stockholders of the parent

151


4,961


14.7%


357


11,716


8.1%

Non-controlling interests

(3)


(114)


(0.4%)


(20)


(675)


(0.5%)













Earnings per share-basic

0.008


0.25




0.033


1.08



Earnings per ADS (2)

0.038


1.25




0.165


5.40















Weighted average number of shares
     outstanding (in millions)



12,408






12,508















Notes:












(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar.



(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, 2015

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)






USD


NTD

Cash flows from operating activities :




    Net income before tax

418


13,712

    Depreciation & Amortization

1,386


45,472

    Gain on disposal of investments

(76)


(2,496)

    Impairment loss on financial assets

38


1,245

    Impairment loss on non-financial assets

31


1,021

    Changes in notes & accounts receivable

105


3,430

    Changes in inventory

(58)


(1,918)

    Changes in other current assets

65


2,117

    Changes in assets, liabilities and others

(8)


(197)

    Income tax paid

(71)


(2,343)

Net cash provided by operating activities

1,830


60,043





Cash flows from investing activities :




    Acquisition of available-for-sale financial assets

(146)


(4,801)

    Proceeds from disposal of available-for-sale financial assets

60


1,964

    Acquisition ofinvestments accounted for under the equity method

(75)


(2,475)

    Acquisition of property, plant and equipment

(1,844)


(60,504)

    Increase in refundable deposits

(46)


(1,503)

    Acquisition of intangible assets

(33)


(1,088)

    Increase in other noncurrent assets-others

(33)


(1,087)

    Others

22


758

Net cash used in investing activities

(2,095)


(68,736)





Cash flows from financing activities :




    Proceeds from bonds issued

562


18,425

    Proceeds from long-term loans

151


4,953

    Repayments of long-term loans

(163)


(5,338)

    Increase in other financial liabilities

186


6,108

    Cash dividends 

(211)


(6,939)

    Treasury stockacquired

(67)


(2,203)

    Others

1


43

Net cash provided by financing activities

459


15,049





Effect of exchange rate changes on cash and cash equivalents

22


722

Net increase in cash and cash equivalents

216


7,078





Cash and cash equivalents at beginning of period

1,408


46,212





Cash and cash equivalents at end of period

1,624


53,290









Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar.

[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, 2015, the three-month period ending Sep 30, 2015, and the equivalent three-month period that ended Dec 31, 2014. For all 4Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2015 exchange rate of NT$ 32.81 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.

Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
bowen_huang@umc.com
david_wong@umc.com

SOURCE United Microelectronics Corporation



RELATED LINKS

http://www.umc.com