AVC — Call Transcript 2016

May 16, 2016

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1Q 2016 Earnings Conference

May 16, 2016

AVC Confidential

Agenda

� Financial Results : 1Q 2016 財務報告

• Operation Highlight 營運摘要

• Q&A

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AVC Confidential

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Disclaimer

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The above statements that pertain to future projections constitute the expectations, opinions, outlooks, or predictions of our company and its affiliates based on information available at the time the statements were made . Such statements may be affected by known and unknown risks and inherent uncertainties, the existence or emergence of facts or factors that differ from the assumptions, suppositions, or judgments of the Company, or other factors. Consequently, there may be significant discrepancies between actual results pertaining to the Company's future earnings, management results, financial conditions, and other matters as explicitly or implicitly referred to in the statements and the content of such statements.

The presentation is run exclusively for the purpose of providing information and not for the purpose of soliciting investments or recommending the buying or selling of specific shares or products. Company makes no warranty concerning the accuracy or completeness of the information and will not be liable for any damages arising out of use of the Information thereof.

一 本 報告 內容係依 現 有資訊 而 做成 ，上述 說 明中 的財務 或相關 資訊 可能 包含 些 對 本 公司 及其子公司未來前景的說明，這些說明易受重大的風險和不確定性因素影響，致使最後 結果與原先的說明迥異，是本公司特此聲明，本報告中的內容，僅為資訊流通之目的而 ， ， 、 公佈 並非投資建議 本公司不對報告內容的正確性 完整性或任何使用本報告內容所 產生的損害負任何責任。 AVC Confidential

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Y2015 Statements of Comprehensive Income

				YoY
	(in NT$ million)	Y2015 %	Y2014 %
	N t R e evenue Gross Margin	25 675 100 00% , . 3,235 12.60%	24 047 100 00% , . 2,930 12.19%	6 77% . 10.41%
	Operating Expense Operating Margin NOtiIt	2 159 8 41% , . 1,076 4.19% 6 002%	2 378 9 89% , . 552 2.30% 414 172%	(9 21%) . 94.93% 9855%
	on-perang ems Pre-Tax Income IncomeTax	. 1,082 4.21% 336 131%	. 966 4.02% 223 093%	( ) . 12.01% 5067%
	Net Income to Parent EPS(NT$ )	. 741 2.89% 2.1	. 729 3.03% 2.06	. 1.65%
	ROE	8.78%	9.34%
	* Diluted weighted average outstanding shares were 353,310 thousand shares in 1Q16.			4
	AVC Confidential

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1Q16 Statements of Comprehensive Income

						YoY
	(in NT$ million)	1Q16 %	4Q15 %	1Q15 %	QoQ
	Net Revenue Gross Margin	6,407 100.00% 846 13.20%	6,728 100.00% 962 14.30%	5,888 100.00% 726 12.33%	(4.77%) (12.06%)	8.81% 16.53%
	O ti E pera ng xpense Operating Margin	507 7 91% . 339 5.29%	524 7 79% . 438 6.51%	520 8 83% . 206 3.50%	(3 24%) . (22.60%)	(2 50%) . 64.56%
	Non Operating Items - Pre-Tax Income IT	(59) (0 92%) . 280 4.37% 70 109%	(113) (1 68%) . 325 4.83% 103 153%	36 0 61% . 242 4.11% 73 124%	(47 79%) . (13.85%) 3204%	(263 89%) . 15.70% 411%
	ncome ax Net Income to Parent EPS( NT$)	. 211 3.29% 06	. 215 3.20% 061	. 155 2.63% 044	( ) . (1.86%)	( ) . 36.13%
		.	.	.
	ROE	2.41%	2.50%	1.86%
	* Diluted weighted average outstanding shares were 353,310 thousand shares in 1Q16.					5
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1Q16 Non-operating Breakdown

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(in NT$ million) 1Q16 4Q15 1Q15 Y2015 Y2014
Interest Income, net (23) (24) (20) (83) (70)
Investment Gain ( Loss ), net (11) 28 4 39 37
Foreign Exchange Gain( Loss ) (23) (4) 14 44 37
Others (2) (113) 38 6 410
Non-operating Gain ( Loss ) (59) (113) 36 6 414
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1Q16 Consolidated B/S

(in NT$ million) Chdhilt			Y2014 % 5592 2369%
	1Q16 % 7794 3031%	Y2015 % 7706 2857%
as an cas equvaens Accounts receivable Inventories	, . 5,342 20.77% 3,898 15.16%	, . 6,215 23.04% 4,527 16.78%	, . 6,142 26.02% 4,208 17.83%
Long term investments - Net PP&E Toatl Assets	405 1 57% . 5,258 20.45% 25,715 100.00%	419 1 55% . 5,249 19.46% 26,975 100.00%	533 2 26% . 4,617 19.56% 23,603 100.00%
Current liabilities Non-Current liabilities Total liabilities	12,683 49.32% 4,169 16.21% 16,852 65.53%	13,800 51.16% 4,435 16.44% 18,235 67.60%	12,566 53.24% 2,554 10.82% 15,120 64.06%
Toatl Shareholders' Equity Book Value Per Share (NT$)	8,863 34.47% 24.69	8,740 32.40% 24.34	8,483 35.94% 23.45
Key Indices Current Ratio(x) Acid test ratio(x)	1.44 1.10	1.43 1.08	1.35 1.01
Debt Ratio	65.53%	67.60%	7 64.06%
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1Q16 Cash Flows

1Q16 Cash Flows
(in NT$ million)			Y2014
	1Q16	Y2015
Beginning Balance Depreciation expense Chftitiiti	7,706 175 1158	5,592 701 2493	6,058 684 1962
as rom operang acves Capital expenditures Cash from investing activities	, (278) (490)	, (1,428) (1,148)	, (1,349) (1,708)
Cash from financing activities Ending Balance *	(517) 7,794	782 7,706	(1,010) 5,592
F C h Fl () 880 1 065 ree as ow , (*)Free cash flow = Cash from operatingactivities - Capital expenditures			613
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Revenue Breakdown

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Ｑ＆Ａ . . . http://www avc com tw

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