Altek — Interim / Quarterly Report 2014

Aug 8, 2014

==> picture [721 x 406] intentionally omitted <==

2014 Q2 Investor Conference Aug. 8 , 2014

1

14Q2 IS Highlights

• Net Sales: increased 27.5% from last quarter

• Mobile image solution business grew.

• Gross Profit %: 10.4%, up 2.3% (QoQ) & 4% (YoY)

• Product mix changed.

• OPEX %: 7.2%, down 0.4% compared to 14Q1

� Due to larger revenue base. Mainly for RD expense.

• Non‐operating Gain: NT$ 1.5 millions

• EPS: NT$0.34

2

Consolidated Income Statements

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

	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2	Quarter QoQ YoY Item Amount % Amount % Amount % % % Net Sales 4,852 100.0 3,804 100.0 4,854 100.0 27.5 (0.0) Cost of Goods Sold (4,348) (89.6) (3,495) (91.9) (4,544) (93.6) Gross Profit 504 10.4 309 8.1 310 6.4 +2.3ppts +4.0ppts OperatingExpenses (349) (7.2) (289) (7.6) (305) (6.3) 20.8 14.4 14.Q2 14.Q1 13.Q2
	Quarter	14.Q2		14.Q1		13.Q2		QoQ	YoY
	Item	Amount	%	Amount	%	Amount	%	%	%
	Net Sales	4,852	100.0	3,804	100.0	4,854	100.0	27.5	(0.0)
	Cost of Goods Sold	(4,348)	(89.6)	(3,495)	(91.9)	(4,544)	(93.6)
	Gross Profit	504	10.4	309	8.1	310	6.4	+2.3ppts	+4.0ppts
	OperatingExpenses	(349)	(7.2)	(289)	(7.6)	(305)	(6.3)	20.8	14.4
	OperatingProfit	155	3.2	20	0.5	5	0.1	+2.7ppts	+3.1ppts
	Non-OperatingGain	1	0.0	78	2.1	12	0.2
	Profit before Income Tax	156	3.2	98	2.6	17	0.3	+0.6ppts	+2.9ppts
	Income Tax Expense	(23)	(0.5)	(16)	(0.4)	(1)	(0.0)
	Net Profit	133	2.7	82	2.2	16	0.3	+0.5ppts	+2.4ppts
	Basic EPS (after tax)	0.34		0.22		0.04

Note: Weighted‐average outstanding common shares of 14Q2 were 381,502 thousand shares

3

Consolidated Income Statements(Cont.)

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

	Quarter	103.Q1~Q2	103.Q1~Q2	102.Q1~Q2	102.Q1~Q2	YoY
	Item	Amount	%	Amount	%	%
	Net Sales	8,656	100.0	8,868	100.0	(2.4)
	Cost of Goods Sold	(7,843)	(90.6)	(8,292)	(93.5)
	Gross Profit	813	9.4	575	6.5	+2.9ppts
	OeratinExenses	(638)	(74)	(631)	(71)	11
	pg p		.		.	.
	OperatingProfit	175	2.0	(56)	(0.6)	+2.6ppts
	Non-OperatingGain	79	0.9	27	0.3
	Profit before Income Tax	254	2.9	(29)	(0.3)	+3.2ppts
	Income Tax Expense	(39)	(0.5)	(1)	(0.0)
	Net Profit	215	2.5	(30)	(0.3)	+2.8ppts
	Basic EPS (after tax)	056		008
		.		.

Note: Weighted‐average outstanding common shares of 14Q2 were 381,502 thousand shares

4

14.6.30 BS & CF Highlights

� Cash & Marketable Securities: NT$ 4,566 M

• Debt Ratio: 37%, Current Ratio: 184%

• Notes & AR / Notes & AP : NT$ 4,185 M / NT$ 3,299 M

• Inventories: NT$ 1,149 M

• BPS: NT$ 26.1

5

Consolidated BS & CF Highlights

Unit: NT$ millions, %

	Year 14.6.30 14.3.31 13.6.30
	Item Amount % Amount % Amount % Cash & Marketable Securities 4,566 28% 5,280 33% 5,380 29% Notes & accounts receivables, net 4,185 25% 2,720 17% 3,612 19% Inventories 1,149 7% 1,148 7% 2,569 14% Property, Plant and Equipment 5,537 34% 5,676 35% 5,633 30% TOTAL ASSETS 16,464 100% 16,037 100% 18,714 100%
	Bank loan 1,000 6% 1,200 7% 450 2% Notes & accounts payable 3,299 20% 2,323 14% 5,057 27% TOTAL LIABILITIES 6,165 37% 5,896 37% 8,529 46% Common Stock 3,942 24% 3,855 24% 3,961 21% Retain Earnings 4,505 27% 4,372 27% 4,783 26% TOTAL EQUITY 10,299 63% 10,141 63% 10,186 54% Year 1441~630 1411~14331 1341~630
	Item Amount % Amount % Amount % Net Cash Provided by Operating Activities (586) (128) (24) ... .... ...
	Net Cash Provided by Operating Activities

Note: Outstanding common shares as of 14.6.30 were 385,908 thousand shares

6

==> picture [721 x 136] intentionally omitted <==

Q3 Guidance

7

==> picture [721 x 136] intentionally omitted <==

Q&A Session

==> picture [721 x 136] intentionally omitted <==

8

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.

9