Compal — Interim / Quarterly Report 2018

Mar 22, 2019

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Compal Electronics, Inc. 4Q18 Consolidated Financial Results

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March 22, 2019

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Agenda

• Welcome

• 4Q18 & 2018 Financial Results

• Business Outlook

• Q&A

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Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this presentation are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ These forward statements are not based on materially. looking historical facts but rather on management’s expectations regarding future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Statements in this presentation about our future plans and intentions, results, level of activities, performance, goals or achievements or other future events constitute forward looking statements. Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, or the negative or other variations of statements reflect management’s current beliefs and assumptions and are based on the information currently available to our management.

Investors are cautioned not to place undue reliance on these forward looking statements, which are made as of the date of this presentation and we assume no obligation to update or revise any forward looking statements.

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4Q18 Consolidated I/S

NT$ Million
	4Q 2018	3Q 2018	4Q 2017	QoQ	YoY
Net Sales Gross Margin Operating Exp Operating Margin Non-Operating Items Pre-Tax Income Income Tax Net Income Net Income to Parent Net Income to Minority EPS (NT$)	280,302 100.0%	253,408 100.0% 7,389 2.9% 5,483 2.2% 1,906 0.8% 2,471 1.0% 4,377 1.7% 515 0.2% 3,862 1.5% 3,733 1.5% 129 0.86	254,840 100.0% 8,391 3.3% 5,945 2.3% 2,446 1.0% 141 0.1% 2,587 1.0% 401 0.2% 2,186 0.9% 2,098 0.8% 88 0.48	11% 18% 40% -41% -52% -55%	10% 4% 9% -1% -15% -19%
	8,755 3.1%
	6,078 2.2% 2,677 1.0%
	-116 0.0%
	2,561 0.9% 706 0.3%
	1,855 0.7%
	1,695 0.6% 160
	0.39

Note: 1. All figures in million of NT$ except for earnings per share; Financial data is IFRS adoption 2. LCFC disposal gain of NT$2,511M was recognized in Non-Operating Items in 3Q 2018

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2018 Consolidated I/S

NT$ Million

	2018	2017	YoY
Net Sales Gross Margin Operating Exp Operating Margin Non-Operating Items Pre-Tax Income Income Tax Net Income Net Income to Parent Net Income to Minority EPS (NT$)	967,706 100.0% 30,567 3.2% 21,305 2.2% 9,262 1.0% 2,528 0.3% 11,790 1.2% 2,201 0.2% 9,589 1.0% 8,913 0.9% 676 2.05	887,657 100.0% 31,965 3.6% 22,757 2.6% 9,208 1.0% -1,094 -0.1% 8,114 0.9% 1,956 0.2% 6,158 0.7% 5,750 0.6% 408 1.32	9% -4% 1% 45% 56% 55%

Note: 1. All figures in million of NT$ except for earnings per share; Financial data is IFRS adoption 2. LCFC disposal gain of NT$2,511M was recognized in Non-Operating Items in 3Q 2018

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Non-operating Breakdown

NT$ Million	4Q 2018	3Q 2018	4Q 2017	2018	2017
Interest Income, net Investment Gain (Loss), net Gain (Loss) on FX, net Others Non-Operating Gain (Loss)	-418 330 -65 37 -116	-352 2,758 -56 121 2,471	-174 273 -103 145 141	-1,173 3,787 -431 345 2,528	-421 753 -2,004 578
					-1,094

Note: 1. All figures in million of NT$ except for earnings per share; Financial data is IFRS adoption 2. LCFC disposal gain of NT$2,511M was recognized in Non-Operating Items in 3Q 2018

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4Q18 Consolidated B/S

NT$ Million
	4Q 2018	3Q 2018	4Q 2017
Cash and Cash Equivalents Account Receivable Inventories Current Assets Total Assets Accounts Payable Current Liabilities Total Liabilities Shareholders' Equity BVPS - Parent(NT$)	70,297 18% 203,774 51% 79,149 20% 362,745 91% 399,795 100% 154,277 39% 274,208 69% 286,633 72% 113,162 28% 24.0 $	72,065 17% 209,500 49% 102,940 24% 394,171 91% 431,943 100% 170,568 39% 307,801 71% 320,858 74% 111,086 26% 23.6 $	70,063 19% 177,387 49% 69,513 19% 321,783 89% 363,356 100%
			142,018 39% 231,956 64% 254,708 70% 108,648 30%
			23.1 $

Note: All figures in million of NT$ except for book value per share; Financial data is IFRS adoption

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	Earning Distribution
	2011 2012 2013 2014 2015 2016 2017 2018
	NT$
	Cash Dividends Cash from Retain Earnings 1.4 1.0 0.5 1.0 1.0 1.0 1.0 1.0 Cash from Capital Surplus - - 0.5 0.5 0.2 0.2 0.2 0.2
	Total Cash Dividends 1.4 1.0 1.0 1.5 1.2 1.2 1.2 1.2
	Reported EPS (NT$) 2.53 1.47 0.57 1.63 2.01 1.88 1.32 2.05 Normalized EPS(NT$) 2.53 1.47 1.70 2.73 2.01 2.04 2.14 1.47
	Payout Ratio - Reported 55% 68% 175% 92% 60% 64% 91% 59% Payout Ratio - Normalized 55% 68% 59% 55% 60% 59% 56% 82%

Note: 2018 dividend payout proposal is subject to the approval of Compal 2019 AGM

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Q & A http://www.compal.com Investor@compal.com

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