ALi — Interim / Quarterly Report 2018

May 11, 2018

ALi Corporation (3041 TT) 1Q18 Investor Conference

May 11[th] , 2018

Public

1

1Q18 Consolidated Quarterly Results

 1Q18 revenue reached NT$552 million, QoQ -18%, YoY-27%  Gross profit margin was 30%

 Operating profit margin was -36%

==> picture [593 x 334] intentionally omitted <==

----- Start of picture text -----

NT$ million
1,000 100%
Sales GPM (%) OPM (%)
900
800
755
700 675
50%
600
552
27% 29%
500 30%
400
0%
300
-19%
200
-30%
-36%
100
- -50%
1Q17 2Q17 3Q17 4Q17 1Q18
----- End of picture text -----

1Q18 Consolidated Income Statement

==> picture [702 x 383] intentionally omitted <==

----- Start of picture text -----

(Amounts in thousand New Taiwan Dollars 1Q18 4Q17 1Q17 QoQ YoY
exceptEarnings Per Share)
Net sales 551,936 100% 675,324 100% 754,958 100% -18% -27%
Cost of goods sold (384,527) (478,334) (548,520) -20% -30%
Gross profits 167,409 30% 196,990 29% 206,438 27% -15% -19%
Operating expenses:
Selling expenses (39,259) (40,754) (44,639) -4% -12%
Administrative expenses (59,920) (66,881) (61,974) -10% -3%
Research and development expenses (264,428) (294,436) (242,593) -10% 9%
Expected Credit Losses (14) n/a n/a
Total operating expenses (363,621) (402,071) (349,206) -10% 4%
Operating income (196,212) -36% (205,081) -30% (142,768) -19% -4% 37%
Non-operating income and gain (expense &
10,446 18,080 5,097 -42% 105%
loss)
Income before income tax (185,766) (187,001) (137,671) -1% 35%
Income tax (expense) benefit 89,462 36,650 23,704 144% 277%
Net income (96,304) (150,351) (113,967) -36% -15%
Earnings Per Share (in New Taiwan Dollars) (0.33) (0.51) (0.39)
----- End of picture text -----

1Q18 Consolidated Balance Sheet

==> picture [702 x 411] intentionally omitted <==

----- Start of picture text -----

(Amounts in thousand New Taiwan Dollars except Key Indices)
Selected Items from Balance Sheet Mar 31, 2018 Dec 31, 2017 Mar 31, 2017
Cash, cash equivalents and investments
in marketable financial instruments 2,689,854 2,903,342 3,265,165
Notes and accounts receivable 137,313 281,223 272,793
Inventory (net) 813,040 588,499 590,828
Other current assets 266,957 260,711 301,760
Total current assets 3,907,164 4,033,775 4,430,546
Long-term Investments 77,079 75,209 57,997
Net PP&E 618,270 617,193 632,213
Intangible assets 168,060 175,351 149,422
Other assets 422,072 329,165 248,542
Total assets 5,192,645 5,230,693 5,518,720
Notes and accounts payable 614,578 407,748 474,493
Other current liabilities 258,703 419,288 274,172
Non-current liabilities 12,047 8,218 12,903
Total liabilities 885,328 835,254 761,568
Total shareholders' equity 4,307,317 4,395,439 4,757,152
Key Indices
A/R Turnover Days (net) 34 38 30
Inventory Turnover Days (net) 164 123 94
Current Ratio 4.5 4.9 5.9
----- End of picture text -----

Quarterly Revenue Breakdown

==> picture [206 x 93] intentionally omitted <==

----- Start of picture text -----

4Q17
5~10% 40~45%
----- End of picture text -----

==> picture [54 x 19] intentionally omitted <==

----- Start of picture text -----

1Q18
----- End of picture text -----

==> picture [205 x 13] intentionally omitted <==

----- Start of picture text -----

0~5% 50~55%
----- End of picture text -----

==> picture [247 x 131] intentionally omitted <==

----- Start of picture text -----

45~50%
----- End of picture text -----

==> picture [247 x 131] intentionally omitted <==

----- Start of picture text -----

40~45%
----- End of picture text -----

==> picture [7 x 8] intentionally omitted <==

Pay-TV Operator STB Retail STB Others (Non-STB)

==> picture [8 x 8] intentionally omitted <==

Pay-TV Operator STB Retail STB Others (Non-STB)

Thank You

==> picture [167 x 269] intentionally omitted <==

==> picture [53 x 44] intentionally omitted <==

Public