Altek — Interim / Quarterly Report 2014

Nov 14, 2014

2014 Q3 Investor Conference Nov. 14, 2014

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14Q3 IS Highlights

• Net Sales: down 27.5% from last quarter

• Inventory correction, semiconductor supply chain capacity shortage

• Gross Profit %: 10.7%, up 0.3% (QoQ) & 5.1% (YoY)

• Product mix changed.

• OPEX %: 9%, up 1.8% compared to 14Q2

• Due to smaller revenue base. OPEX amount lowers than 14Q2.

• Non‐operating Loss: NT$ 19.7 millions

• EPS(weighted‐average shares): NT$0.09 EPS(after capital reduction): NT$0.11

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Consolidated Income Statements

Unit: NT$ millions (Except EPS: NT$), %

Quarter	14.Q3	14.Q3	14.Q2	14.Q2	13.Q3	13.Q3	QoQ	YoY
Item	Amount	%	Amount	%	Amount	%	%	%
Net Sales	3,521	100.0	4,852	100.0	6,334	100.0	(27.5)	(44.4)
Cost of Goods Sold	(3,144)	(89.3)	(4,348)	(89.6)	(5,979)	(94.4)
Gross Profit	377	10.7	504	10.4	355	5.6	+0.3ppts	+5.1ppts
OperatingExpenses	(318)	(9.0)	(349)	(7.2)	(297)	(4.7)	(8.9)	7.0
OperatingProfit	59	1.7	155	3.2	58	0.9	-1.5ppts	+0.8ppts
Non-OperatingGain	(20)	(0.6)	1	0.0	9	0.1
Profit before Income Tax	39	1.1	156	3.2	67	1.1	-2.1ppts	+0ppts
Income Tax Expense	(9)	(0.2)	(23)	(0.5)	(5)	(0.1)
Net Profit	31	0.9	133	2.7	62	1.0	-1.8ppts	-0.1ppts
Basic EPS(weighted-average shares )	0.09		0.35		0.16
Basic EPS (after capital reduction)	0.11

Note: Weighted‐average outstanding common shares of 14Q3 were 371,537 thousand shares

3

14.9.30 BS & CF Highlights

� Cash & Marketable Securities: NT$ 5,961 M

• Debt Ratio: 43.4%, Current Ratio: 157.6%

� Notes & AR / Notes & AP : NT$ 2,850 M / NT$ 2,487 M

• Inventories: NT$ 1,093 M

• BPS: NT$ 33.76

4

Consolidated BS & CF Highlights

Unit: NT$ millions, %

Year Item Amount % Amount % Amount % 14.9.30 14.6.30 13.9.30	Year Item Amount % Amount % Amount % 14.9.30 14.6.30 13.9.30
Cash & Marketable Securities 5,961 36% 4,566 28% 3,693 22% Notes & accounts receivables, net 2,850 17% 4,185 25% 4,313 26% Inventories 1,093 7% 1,149 7% 1,566 9% Property, Plant and Equipment 5,547 34% 5,537 34% 5,759 34%
TOTAL ASSETS 16,455 100% 16,464 100% 16,703 100%
Bank loan 1,609 10% 1,000 6% 600 4% Notes & accounts payable 2,847 17% 3,299 20% 3,471 21%
TOTAL LIABILITIES 7,140 43% 6,165 37% 6,550 39%
Common Stock 2,759 17% 3,942 24% 3,903 23% Retain Earnings 3,029 18% 4,505 27% 4,737 28%
TOTAL EQUITY 9,315 57% 10,299 63% 10,153 61%
Year Item Amount % Amount % Amount % 14.7.1~9.30 14.3.31~14.6.30 13.7.1~9.30
Net Cash Provided by Operating Activities	3 (586) (1,140)

Note: Outstanding common shares as of 9.30 were 270,136 thousand shares

5

Q4 Guidance

6

Q&A Session

7

Safe Harbor Notice

We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding, among other things, our financial conditions, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties, and assumptions about us.

We undertake no obligation to publicly update or revise any forwardlooking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

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