UMC Reports Fourth Quarter 2014 Results
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UMC Reports Fourth Quarter 2014 Results

Full-year 2014 foundry revenue up 10%, operating profit increased 74% YoY

(PRNewswire) —

Fourth Quarter 2014 Overview[1]:

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2014.

Fourth quarter consolidated revenue was NT$37.24 billion, a 5.7% quarterly increase from NT$35.21 billion in 3Q14 and a 21.2% annual increase from NT$30.72 billion in 4Q13. 4Q14 consolidated gross margin was 27.4%, with operating margin at 12.2%. Net income attributable to the stockholders of the parent was NT$4.56 billion, with earnings per ordinary share of NT$0.36. For 2014, full year revenue was NT$140.01 billion, with NT$10.08 billion in operating income, NT$12.14 billion net income attributable to the stockholders of the parent and NT$0.97 earnings per share.

Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter, foundry revenue grew 3.7% sequentially to NT$34.74 billion. This figure includes a one-time 40nm licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. Overall capacity utilization rate remained at 93%, bringing shipments to 1.43 million 8-inch equivalent wafers. Our 28nm technologies represented 7% of our foundry revenue in 4Q14. Shipments from our 28nm gate-last, High-K Metal Gate process exceeded that of 28nm poly-SiON wafers. Excluding the Fujitsu 40nm licensing fee, UMC's 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28nm, which accounted for 3% of total 2014 revenue. Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand."

CEO Yen continued, "The Taiwan government authorities recently approved UMC's application to invest in a 12" joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China's enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC's differentiated approach of global expansion, proven through Singapore's Fab12i and SuZhou's Fab8N successfully achieving economy of scale while mitigating customer risks via geographic diversification. While we expand production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CAPEX for approximately US$1.8 billion. Our 2015 CAPEX illustrates our strong commitment to meet customers' requirements and gain additional market share through efficient execution and strategic alliances. UMC's global expansion efforts, driven by manufacturing excellence, will strengthen customer services with increased operating scale to enhance corporate financial earnings and deliver long-term returns to our shareholders."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

  4Q14

  3Q14

QoQ %
change

 4Q13

YoY %
change

Net Operating Revenues

37,235

35,214

5.7

30,719

21.2

Gross Profit

10,186

7,559

34.8

5,557

83.3

Operating Expenses

(5,672)

(5,270)

7.6

(5,317)

6.7

Net Other Operating Income and Expenses

18

(602)

-

(46)

-

Operating Income

4,532

1,687

168.6

194

2,236.1

Net Non-Operating Income and Expenses

843

1,305

(35.4)

889

(5.2)

Net Income Attributable to the Stockholders of the Parent

4,563

2,916

56.5

749

509.2

EPS   (NT$ per share)

0.36

0.23


0.06


         (US$ per ADS)

0.057

0.036


0.009


In 4Q14, foundry business grew 3.7% sequentially to NT$34.74 billion, including a one-time Fujitsu 40nm licensing fee, while New Business segment posted revenue of NT$2.52 billion, leading to consolidated revenue of NT$37.24 billion, up 5.7% from 3Q14. On a consolidated base, gross profit increased 34.8% to NT$10.19 billion, or 27.4% of revenue. Operating income grew 168.6% sequentially to NT$4.53 billion, or 12.2% of revenue. Net income attributable to the stockholders of the parent in 4Q14 was NT$4.56 billion, up 56.5% compared to NT$2.92 billion in 3Q14.

Earnings per ordinary share for the quarter were NT$0.36. Earnings per ADS were US$0.057. The basic weighted average number of outstanding shares in 4Q14 was 12,509,658,059, compared with 12,500,808,739 shares in 3Q14 and 12,476,082,332 shares in 4Q13. The diluted weighted average number of outstanding shares was 12,620,712,149 in 4Q14, compared with 12,582,502,645 shares in 3Q14 and 13,243,379,446 shares in 4Q13. The fully diluted share count on December 31, 2014 was approximately 12,779,034,000. On December 31, 2014, UMC held 195 million treasury shares acquired from the 15th share buy-back programs.

Detailed Financials Section

Foundry revenue increased 3.7% from 4Q14 to NT$34.74 billion, which included a Fujitsu 40nm licensing fee, while New Business posted NT$2.52 billion, which led to total revenue of NT$37.24 billion. Operating expenses increased 7.6% to NT$5.67 billion, partly due to a 17.5% rise in sales and marketing that included higher IP and mask expenses. Research and development expenses increased 1.9% to NT$3.54 billion or 9.5% of operating revenues. Net operating income was NT$4.53 billion.

COGS & Expenses

(Amount: NT$ million)

4Q14

3Q14

QoQ %
change

4Q13

YoY %
change

Net Operating Revenues

37,235

35,214

5.7

30,719

21.2

COGS

(27,049)

(27,655)

(2.2)

(25,162)

7.5

   Depreciation

(8,495)

(8,483)

0.1

(7,939)

7.0

   Other Mfg. Costs

(18,554)

(19,172)

(3.2)

(17,223)

7.7

Gross Profit

10,186

7,559

34.8

5,557

83.3

Gross Margin (%)

27.4%

21.5%


18.1%


Operating Expenses

(5,672)

(5,270)

7.6

(5,317)

6.7

   G&A

(1,013)

(845)

19.9

(826)

22.6

   Sales & Marketing

(1,124)

(957)

17.5

(906)

24.1

   R&D

(3,535)

(3,468)

1.9

(3,585)

(1.4)

Net Other Operating

Income & Expenses

18

(602)

-

(46)

-

Operating Income

4,532

1,687

168.6

194

2,236.1

Net non-operating income in 4Q14 was NT$843 million. Gain on disposal of investments was NT$639 million, including a NT$528 million gain from the disposal of Montage shares.

Non-Operating Income and Expenses

(Amount: NT$ million)

4Q14

3Q14

4Q13

Non-Operating Income and Expenses

843

1,305

889

Net Interest Income and Expenses

(12)

(8)

(53)

Net Investment Gain and Loss

(37)

487

(394)

Gain and Loss on Disposal of Investment

639

580

985

Exchange Gain and Loss

201

114

114

Other Gain and Loss

52

132

237

Cash inflow from operations was NT$18.84 billion. In 4Q14, CAPEX spending was NT$16.21 billion, including NT$16.08 billion from the foundry segment, resulting in free cash inflow of NT$2.63 billion. Cash inflow from financing was NT$429 million, mainly due to the increased bank loan of NT$4.11 billion with a bond redemption of NT$3.83 billion. Total cash inflow in 4Q14 was NT$2.96 billion. Over the next 12 months, the company expects to repay NT$3.77 billion in bank loans.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month
  Period Ended

 Dec. 31, 2014

For the 3-Month
Period Ended

Sep. 30, 2014

Cash Flow from Operating Activities

18,836

12,039

    Net Income before tax

5,375

2,992

    Depreciation & Amortization

10,663

10,195

 Gain on disposal of investments

(639)

(580)

 Impairment loss on non-financial assets

-

597

    Exchange loss on financial assets and liabilities

255

130

    Changes in Working Capital

2,941

(1,488)

    Other

241

193

Cash Flow from Investing Activities

(16,790)

(12,684)

    Capital Expenditures

(16,208)

(12,867)

    Acquisition of available-for-sale financial assets

(1,774)

(52)

    Acquisition of financial assets measured at cost

258

(283)

    Proceeds from disposal of available-for-sale financial assets

1,112

568

    Acquisition of intangible assets

(282)

(268)

    Other

104

218

Cash Flow from Financing Activities

429

(6,659)

    Bank Loans

4,107

(627)

Redemption of Bonds

(3,831)

-

Cash Dividends and Cash paid from additional paid-in capital

-

(6,253)

    Other

153

221

Effect of Exchange Rate

993

414

Net Cash Flow

3,468

(6,890)

Disposal Group included in Non-Current Assets Held for Sale

(511)

-

Total Cash Flow

2,957

(6,890)

Cash and cash equivalents increased to NT$45.70 billion, mainly from the increase in free cash flow and cash inflow from financing activities. The days of inventory increased 4 days to 50 days due to an increase in WIP for 1Q15 shipments.

Current Assets

(Amount: NT$ billion)

4Q14

3Q14

4Q13

Cash and Cash Equivalents

45.70

42.74

50.83

Notes & Accounts Receivable

22.37

21.93

16.82

   Days Sales Outstanding

54

56

53

Inventories, net

15.24

14.31

13.99

   Days of Inventory

50

46

51

Total Current Assets

96.86

91.80

88.80

Current liabilities increased to NT$48.11 billion. A merger between Motech & TOPCELL announced on Dec. 26, 2014 resulted in the reclassification of TOPCELL liabilities into other liabilities, amounting to NT$5.59 billion, attributing to the category's increase to NT$21.42 billion in 4Q14. Debt to equity ratio remained at 39%.


Liabilities

(Amount: NT$ billion)

4Q14

3Q14

4Q13

Total Current Liabilities

48.11

45.44

48.20

   Notes & Accounts Payable

6.17

6.75

7.41

   Short-Term Credit / Bonds

10.03

15.26

21.19

   Payable on Equipment

10.48

10.40

6.70

   Other

21.43

13.03

12.90

Long-Term Credit / Bonds

33.40

31.98

28.42

Total Liabilities

88.24

84.43

83.46

Debt to Equity

39%

39%

39%

Analysis of Revenue[2] for Foundry Segment

Revenue contribution from North America remained at 45% in 4Q14. Europe rose to 8%, partly due to higher demand from European communication customers.

Revenue Breakdown by Region

Region

4Q14

3Q14

2Q14

1Q14

4Q13

North America

45%

45%

43%

45%

47%

Asia Pacific

42%

44%

46%

45%

41%

Europe

8%

6%

5%

7%

8%

Japan

5%

5%

6%

3%

4%

28nm revenue continued to increase in 4Q14 strengthened by the demand from handsets and tablets, accounting for 7% of foundry revenue, while 40nm revenue represented 21% during 4Q14.

Revenue Breakdown by Geometry

Geometry

4Q14

3Q14

2Q14

1Q14

4Q13

28nm and below

7%

3%

1%

0%

0%

28nm<x<=40nm

21%

24%

21%

20%

24%

40nm<x<=65nm

24%

26%

31%

31%

29%

65nm<x<=90nm

7%

7%

6%

7%

7%

90nm<x<=0.13um

14%

14%

13%

14%

14%

0.13um<x<=0.18um

12%

12%

13%

12%

12%

0.18um<x<=0.35um

12%

11%

12%

12%

11%

0.5um and above

3%

3%

3%

4%

3%

4Q14 revenue from IDM customers increased to 10%.

Revenue Breakdown by Customer Type

Customer Type

4Q14

3Q14

2Q14

1Q14

4Q13

Fabless

90%

91%

90%

92%

89%

IDM

10%

9%

10%

8%

11%

Communication and consumer segments remained at 54% and 28% of revenue in 4Q14, respectively.

Revenue Breakdown by Application (1)

Application

4Q14

3Q14

2Q14

1Q14

4Q13

Computer

14%

15%

18%

18%

15%

Communication

54%

54%

49%

46%

49%

Consumer

28%

28%

29%

31%

31%

Others

4%

3%

4%

5%

5%

 

(1)

Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.

Blended ASP Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) remained flat in 4Q14

(To view ASP trend, visit http://www.umc.com/english/investors/4Q14_ASP_trend.asp)

Shipment and Utilization Rate[3] for Foundry Segment

Wafer shipments dropped 2% to 1,431K in 4Q14 as capacity declined 0.6% QoQ to 1,577K, resulting in an overall utilization rate of 93% for the quarter.

Wafer Shipments


4Q14

3Q14

2Q14

1Q14

4Q13

Wafer Shipments
(8" K equivalents)

1,431

1,462

1,426

1,258

1,236


Quarterly Capacity Utilization Rate


4Q14

3Q14

2Q14

1Q14

4Q13

Utilization Rate

93%

93%

90%

81%

79%

Total Capacity
(8" K equivalents)

1,577

1,586

1,597

1,563

1,560

Capacity[4] for Foundry Segment

Overall capacity during the fourth quarter was 1,577K 8-inch equivalent wafers. 28nm capacity expansion at Fab12A increased quarterly capacity from 174K in 3Q14 to 180K in 4Q14. The capacity profile upgrade at Fab12i decreased its 12" wafer capacity by 10K, reducing the fab's 4Q14 capacity to 135K. First quarter's estimated capacity will be approximately 1,583K 8-inch equivalent wafers, primarily from continuous 28nm capacity deployment at Fab12A, 40nm capacity expansion at Fab12i and manufacturing expansion at Fab8N.

Annual Capacity in
thousands of wafers


Quarterly Capacity in
thousands of wafers

FAB

Geometry
        (um)        

2014

2013

2012

2011


FAB

1Q15E

4Q14

3Q14

2Q14

Fab6A

6"

3.5 - 0.45

448

448

481

538


Fab6A

111

113

113

113

Fab8A

8"

0.5 - 0.25

813

813

815

813


Fab8A

201

204

204

204

Fab8C

8"

0.35 - 0.11

347

347

360

359


Fab8C

86

87

87

87

Fab8D

8"

0.13 - 0.09

358

382

371

364


Fab8D

84

86

86

93

Fab8E

8"

0.5 - 0.18

418

418

449

469


Fab8E

103

105

105

105

Fab8F

8"

0.18 - 0.11

388

388

389

388


Fab8F

96

98

98

98

Fab8S

8"

0.18 - 0.11

335

335

348

307


Fab8S

83

84

84

84

Fab8N

8"

0.5 - 0.13

547

469

-

-


Fab8N

144

140

140

140

Fab12A

12"

0.18 - 0.028

700

651

579

501


Fab12A

183

180

174

174

Fab12i

12"

0.13 - 0.040

573

550

537

530


Fab12i

139

135

145

147

Total(1) 

6,323

6,107

5,514

5,322


Total

1,583

1,577

1,586

1,597

YoY Growth Rate

4%

11%

4%

11%


2011~2012 figures account for UMC parent company only.


 

(1)

One 6-inch wafer is converted into 0.5625(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

Total capital expenditure for 2014 was US$1.4 billion, 87% of which accounted for capacity expansion at 300mm facilities. Foundry capital expenditure budget for 2015 is expected to be approximately US$1.8 billion, with 89% of the amount used for 12" advanced capacity expansion.

Capital Expenditure by Year - in US$ billion

Year

2014

2013

2012

2011

2010

CAPEX

$ 1.4

$ 1.1

$ 1.7

$ 1.6

$ 1.8


2010~2012 figures account for UMC parent company only.


2015 CAPEX Plan

8"

12"

Total

11%

89%

US$1.8 billion

Brief Summary of Full Year 2014 Consolidated Results

Operating Results

(Amount: NT$ million)

2014

2013

YoY %
change

Net Operating Revenues

140,012

123,812

13.1

Gross Profit

31,853

23,563

35.2

Operating Expenses

(21,238)

(19,406)

9.4

Net Other Operating Income & Expenses

(539)

(125)

331.2

Operating Income

10,076

4,032

149.9

Net Non-Operating Income & Expenses

3,437

10,330

(66.7)

Income Tax Expenses

(2,033)

(2,257)

(9.9)

Net Income Attributable to Stockholders of the Parent

12,141

12,630

(3.9)

EPS  (NT$ per share)

0.97

1.01


        (US$ per ADS)

0.153

0.160


Annual Sales Breakdown in Revenue for Foundry Segment

Region

2014

2013

North America

45%

45%

Asia Pacific

44%

43%

Europe

6%

8%

Japan

5%

4%




Technology

2014

2013

28nm and below

3%

0%

28nm<x<=40nm

21%

20%

40nm<x<=65nm

28%

32%

65nm<x<=90nm

7%

6%

90nm<x<=0.13um

14%

15%

0.13um<x<=0.18um

13%

12%

0.18um<x<=0.35um

11%

11%

0.5um and above

3%

4%




Customer Type

2014

2013

Fabless

91%

89%

IDM

9%

11%




Application

2014

2013

Computer

16%

17%

Communication

51%

50%

Consumer

29%

29%

Others

4%

4%

First Quarter of 2015 Outlook & Guidance

Quarter-over-Quarter Guidance:

Recent Developments / Announcements

Jan 21, 2015

UMC Licenses 40nm eNVM from Cypress to Enable Next-Generation IoT Devices

Jan 12, 2015

UMC First Foundry in Taiwan to Receive ISO 15408-EAL6 Certification

Dec 26, 2014

Topcell Solar Announces Plans to Merge with Motech Industries

Dec 15, 2014

Infineon & UMC Announce Manufacturing Agreement for Automotive Applications

Oct 29, 2014

UMC 3Q 2014 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, January 28, 2015

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)

Dial-in numbers and Access Codes:
USA Toll Free: +1-800-871-3110, +1-888-700-7397
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC

A live webcast and replay of the 4Q14 results announcement will be available at www.umc.com under the "Investors / Events" section.

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Dec 31, 2014, the three-month period ending Sep 30, 2014, and the equivalent three-month period that ended Dec 31, 2013. For all 4Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2014 exchange rate of NT$ 31.62 per U.S. Dollar.

[2] Revenue in this section represents wafer sales

[3] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

[4] Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Safe Harbor Statements

This release contains forward-looking statements.  These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.  You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning.  You can also identify them by the fact that they do not relate strictly to historical or current facts.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements.  Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates.  Further information regarding these and other risks is included in UMC's  filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

Contacts:

Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16900
Email Contact / Email Contact

- FINANCIAL TABLES TO FOLLOW -


 UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

   Consolidated Condensed Balance Sheet

As of  December 31, 2014

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














December 31, 2014


US$


NT$


%

Assets






Current assets






 Cash and cash equivalents

1,445


45,701


14.6%

 Financial assets at fair value through profit or loss, current

23


740


0.2%

 Notes & Accounts receivable, net

707


22,369


7.1%

 Inventories, net

482


15,242


4.9%

 Non-current assets held for sale

221


6,979


2.2%

 Other current assets

185


5,832


1.9%

    Total current assets

3,063


96,863


30.9%







Non-current assets






 Funds and investments

1,185


37,478


12.0%

 Property, plant and equipment

5,272


166,690


53.2%

 Other non-current assets

387


12,215


3.9%

    Total non-current assets

6,844


216,383


69.1%

Total assets

9,907


313,246


100.0%







Liabilities






Current liabilities






 Short-term loans

198


6,251


2.0%

 Financial liabilities at fair value through profit or loss, current

1


42


0.0%

 Payables

1,000


31,608


10.1%

 Liabilities directly relating to non-current assets held for sale

177


5,595


1.8%

 Current portion of long-term liabilities

119


3,775


1.2%

 Other current liabilities

27


835


0.3%

    Total current liabilities

1,522


48,106


15.4%







Non-current liabilities






 Bonds payable

790


24,978


8.0%

 Long-term loans

266


8,423


2.7%

 Other non-current liabilities

213


6,730


2.1%

    Total non-current liabilities

1,269


40,131


12.8%

    Total liabilities

2,791


88,237


28.2%







Equity






Equity attributable to the parent company






Capital

4,026


127,303


40.6%

Additional paid-in capital

1,248


39,448


12.6%

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

1,793


56,712


18.1%

Treasury stock

(73)


(2,304)


(0.7%)

     Total equity attributable to the parent company

6,994


221,159


70.6%

Non-controlling interests

122


3,850


1.2%

     Total equity

7,116


225,009


71.8%

Total liabilities and equity

9,907


313,246


100.0%













NoteNew Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.







           All figures are prepared in accordance with TIFRSs.






 

 UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

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

Except Per Share and Per ADS Data




Year over Year Comparison


Quarter over Quarter Comparison


Three-Month Period Ended




Three-Month Period Ended




December 31, 2014


December 31, 2013


%


December 31, 2014


September 30, 2014


%


US$


NT$


US$


NT$


Chg.


US$


NT$


US$


NT$


Chg.

Net operating revenues

1,178


37,235


972


30,719


21.2%


1,178


37,235


1,114


35,214


5.7%

Operating costs

(856)


(27,049)


(796)


(25,162)


7.5%


(856)


(27,049)


(875)


(27,655)


(2.2%)

Gross profit

322


10,186


176


5,557


83.3%


322


10,186


239


7,559


34.8%


27.4%


27.4%


18.1%


18.1%




27.4%


27.4%


21.5%


21.5%



Operating expenses




















  - Sales and marketing expenses

(35)


(1,124)


(29)


(906)


24.1%


(35)


(1,124)


(30)


(957)


17.5%

  - General and administrative expenses

(32)


(1,013)


(26)


(826)


22.6%


(32)


(1,013)


(27)


(845)


19.9%

  - Research and development expenses

(112)


(3,535)


(113)


(3,585)


(1.4%)


(112)


(3,535)


(110)


(3,468)


1.9%

      Subtotal

(179)


(5,672)


(168)


(5,317)


6.7%


(179)


(5,672)


(167)


(5,270)


7.6%

Net other operating income and expenses

0


18


(2)


(46)


-


0


18


(19)


(602)


-

Operating income

143


4,532


6


194


100.0%


143


4,532


53


1,687


100.0%


12.2%


12.2%


0.6%


0.6%




12.2%


12.2%


4.8%


4.8%























Net non-operating income and expenses

27


843


28


889


(5.2%)


27


843


42


1,305


(35.4%)

Income from continuing operations before
   income tax

170


5,375


34


1,083


100.0%


170


5,375


95


2,992


79.6%


14.4%


14.4%


3.5%


3.5%




14.4%


14.4%


8.5%


8.5%























Income tax expense

(29)


(911)


(15)


(495)


84.0%


(29)


(911)


(13)


(413)


100.0%

Net income

141


4,464


19


588


100.0%


141


4,464


82


2,579


73.1%


12.0%


12.0%


1.9%


1.9%




12.0%


12.0%


7.3%


7.3%























Other comprehensive income (loss)

127


4,006


16


510


100.0%


127


4,006


(48)


(1,501)


-





















Total comprehensive income

268


8,470


35


1,098


100.0%


268


8,470


34


1,078


100.0%





















    Net income attributable to:




















       Stockholders of the parent

144


4,563


24


749


100.0%


144


4,563


92


2,916


56.5%

       Non-controlling interests

(3)


(99)


(5)


(161)


(38.5%)


(3)


(99)


(10)


(337)


(70.6%)





















    Comprehensive income attributable to:




















       Stockholders of the parent

268


8,467


39


1,239


100.0%


268


8,467


43


1,372


100.0%

       Non-controlling interests

0


3


(4)


(141)


-


0


3


(9)


(294)


-





















Earnings per share-basic

0.011


0.36


0.002


0.06




0.011


0.36


0.007


0.23



Earnings per ADS (2)

0.057


1.80


0.009


0.30




0.057


1.80


0.036


1.15



Weighted average number of shares




















outstanding (in millions)



12,510




12,476






12,510




12,501











































Notes:




















(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.








     All figures are prepared in accordance with TIFRSs.



















(2) 1 ADS equals 5 common shares.







 

 UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

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

Except Per Share and Per ADS Data














For the Three-Month Period Ended


For the Twelve-Month Period Ended


December 31, 2014


December 31, 2014


US$


NT$


%


US$


 NT$


%

Net operating revenues

1,178


37,235


100.0%


4,428


140,012


100.0%

Operating costs

(856)


(27,049)


(72.6%)


(3,421)


(108,159)


(77.2%)

Gross profit

322


10,186


27.4%


1,007


31,853


22.8%

























Operating expenses












  - Sales and marketing expenses

(35)


(1,124)


(3.0%)


(127)


(4,012)


(2.9%)

  - General and administrative expenses

(32)


(1,013)


(2.7%)


(113)


(3,562)


(2.5%)

  - Research and development expenses

(112)


(3,535)


(9.5%)


(432)


(13,664)


(9.8%)

      Subtotal

(179)


(5,672)


(15.2%)


(672)


(21,238)


(15.2%)

Net other operating income and expenses

0


18


0.0%


(16)


(539)


(0.4%)

Operating income

143


4,532


12.2%


319


10,076


7.2%













Net non-operating income and expenses

27


843


2.2%


108


3,437


2.5%

Income from continuing operations before
   income tax

170


5,375


14.4%


427


13,513


9.7%

























Income tax expense

(29)


(911)


(2.4%)


(64)


(2,033)


(1.5%)

Net income

141


4,464


12.0%


363


11,480


8.2%













Other comprehensive income

127


4,006


10.7%


213


6,738


4.8%













Total comprehensive income

268


8,470


22.7%


576


18,218


13.0%













    Net income attributable to:












       Stockholders of the parent

144


4,563


12.3%


384


12,141


8.7%

       Non-controlling interests

(3)


(99)


(0.3%)


(21)


(661)


(0.5%)













    Comprehensive income attributable to:












       Stockholders of the parent

268


8,467


22.7%


593


18,736


13.4%

       Non-controlling interests

0


3


0.0%


(17)


(518)


(0.4%)













Earnings per share-basic

0.011


0.36




0.031


0.97



Earnings per ADS (2)

0.057


1.80




0.153


4.85















Weighted average number of shares
     outstanding (in millions)



12,510






12,495















Notes:












(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.



     All figures are prepared in accordance with TIFRSs.











(2) 1 ADS equals 5 common shares.












 

 

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Twelve-Month Period Ended December 31, 2014

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






USD


NTD

Cash flows from operating activities :




    Net income before tax

427


13,513

    Depreciation & Amortization

1,286


40,657

    Impairment loss on financial assets

10


305

    Impairment loss on non-financial assets

19


597

    Gain on disposal of investments

(75)


(2,378)

    Changes in notes & accounts receivable

(190)


(6,013)

    Changes in inventory

(60)


(1,894)

    Changes in payables

42


1,322

    Changes in assets, liabilities and others

(43)


(1,321)

Net cash provided by operating activities

1,416


44,788





Cash flows from investing activities :




    Acquisition of available-for-sale financial assets

(61)


(1,942)

    Proceeds from disposal of available-for-sale financial assets

105


3,311

    Acquisition of financial assets measured at cost

(15)


(489)

    Proceeds from disposal of financial assets measured at cost

21


677

    Acquisition of investments accounted for under the equity method

(6)


(182)

    Acquisition of property, plant and equipment

(1,367)


(43,237)

    Proceeds from disposal of property, plant and equipment

11


338

    Acquisition of intangible assets

(36)


(1,153)

    Others

1


71

Net cash used in investing activities

(1,347)


(42,606)





Cash flows from financing activities :




    Increase in short-term loans

131


4,135

    Proceeds from bonds issued

158


5,000

    Redemption of bonds

(447)


(14,137)

    Proceeds from long-term loans

199


6,284

    Repayments of long-term loans

(122)


(3,859)

    Cash dividends and cash paid from additional paid-in capital

(198)


(6,253)

    Others

18


572

Net cash used in financing activities

(261)


(8,258)





Effect of exchange rate changes on cash and cash equivalents

45


1,457

Net decrease in cash and cash equivalents

(147)


(4,619)





Cash and cash equivalents at beginning of period

1,608


50,831





Cash and cash equivalents at end of period

1,461


46,212





Reconciliation of the balances of cash and cash equivalents at end of period :




Cash and cash equivalents balances on the consolidated balance sheets

1,445


45,701

Cash and cash equivalents of disposal group included in non-current assets held for sale

16


511

Cash and cash equivalents at end of period

1,461


46,212









Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2014 exchange rate of NT $31.62 per U.S. Dollar.

         All figures are prepared in accordance with TIFRSs.

 

 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/umc-reports-fourth-quarter-2014-results-300026930.html

SOURCE United Microelectronics Corporation

Contact:
United Microelectronics Corporation
Web: http://www.umc.com