CHICONY — Interim / Quarterly Report 2019

Dec 31, 2019

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CHICONY ELECTRONICS

3Q19 Financial Results November 7, 2019

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Safe Harbor Notice

Chicony’s statement of its current expectations are forwardlooking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those . contained in any forward-looking statements

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Positioned as Number 1 Global Market Leader

Chicony Continued to Achieve Leading Market Share

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37%
NB Keyboard
29%
DT Keyboard
Number #1
Market
42%
Share in NB Camera Module
2018
45%
NB Adaptor
25%
IP Cam
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Consistent Dividend Pay-Out Policy to Reward Investors

Chicony	2014	2015	2016	2017	2018
EPS	6.22	5.79	5.24	5.9	5.22
Cash Dividend	4.65	4.3	4.25	4.45	3.80
Stock Dividend	0.05	0.05	0.05	0.05	0
Dividend Payout %	76%	75%	82%	76%	73%
Cash Yield Rate %	5.43	5.79	5.25	6.1%	4.8%

Source: CMoney

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Operating Margin Jumped to 9.6%, and

Million NT$	3Q 2019 2Q 2019 QoQ %3Q 2018 YoY %
Net Sales	26,186 100.0 22,551 100.0 16.1 24,975 100.0 4.8
COGS	(21,177) (80.9)(18,736) (83.1) (21,058) (84.3)
Gross Profit	5,009 19.1 3,815 16.9 31.3 3,917 15.7 27.9
Operating Expense	(2,501) (9.5)* (2,123) (9.4) (2,197) (8.8)
Operating Profit	2,508 9.6 1,692 7.5 48.3 1,719 6.9 45.9
Other Income/Expense	(75) (0.3) (42) (0.2) 36 0.1
Profit Before Tax	2,433 9.3 1,650 7.3 47.5 1,755 7.0 38.6
Tax	(394) (1.5) (222) (1.0) (346) (1.4)
Net Income	1,655 6.3 1,286 5.7 28.6 1,309 5.2 26.4
After Tax EPS	2.40 1.87 28.3 1.90 26.3

Note*: Including NT$170M resulted from the transfer of treasury stock to employees

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1~3Q19 Operating Margin Rose to 6.8%; Record High EPS of NT$6.65

Million NT$	1~3Q 2019 1~3Q 2018 YoY %
Net Sales	67,914 100.0 63,811 100.0 6.4
COGS	(56,195) (82.7) (54,930) (86.1)
Gross Profit	11,719 17.3 8,880 13.9 32.0
Operating Expense	(7,099) (10.5) (5,874) (9.2)
Operating Profit	4,621 6.8 3,006 4.7 53.7
Other Income/Expense	1,791 2.6 680 1.1
Profit Before Tax	6,412 9.4 3,686 5.8 74.0
Tax	(1,075) (1.6) (722) (1.1)
Net Income	4,587 6.8 2,704 4.2 69.7
After Tax EPS	6.65 3.93 69.2

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Record High Quarterly Revenue of NT$26B in 3Q19

 4.8% YoY/16.1% QoQ Revenue Growth in 3Q19

2016~2019 Quarterly Revenue

NT$M

2016 2017 2018 2019 26,186

30,000

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25,000

22,551

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19,177

20,000

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15,000

10,000

5,000

0

1Q

2Q

3Q

4Q

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Revenue and Profit Set Record High

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3Q19
Revenue Gross Profit Operating Profit
• NT$26,186 • NT$5,009 • NT$2,508
Net Income EPS
• NT$1,655 • NT$2.40
1~3Q19
Revenue Gross Profit Operating Profit
• NT$67,914 • NT$11,719 • NT$4,621
Net Income EPS
• NT$4,587 • NT$6.65
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1~3Q GPM/OPM 10-Year Record High Thanks to Huge Margin Improvements in 3Q19

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2018 2019 2018 2019
Gross Margin Operating Margin
25% 12%
9.6%
19.1% 10%
20%
16.9%
7.5%
15.1% 8%
15%
15.7% 15.9%
6% 6.9% 7.0%
13.3%
10% 12.1%
4% 3.1%
3.5%
5%
2%
2.2%
0% 0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Gross Margin Operating Margin
1~3Q19 17.3% 1~3Q19 6.8%
1~3Q18 13.9% 1~3Q18 4.7%
0% 5% 10% 15% 20% 0% 2% 4% 6% 8%
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NT$M

90,000

85,000

80,000

75,000

70,000

65,000

60,000

55,000

50,000

Revenue from 2010~2018

87,260

80,111[80,663 ] 77,018[78,156 ]

74,539

67,510

60,437[60,686 ]

2010 2011 2012 2013 2014 2015 2016 2017 2018

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