Compal — Interim / Quarterly Report 2020

Apr 14, 2020

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Compal Electronics, Inc. 4Q19 & 2019 Consolidated Financial Results

Mar 30, 2020

Save the earth…Please print out only when necessary

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Safe Harbor Notice

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 materially. These forward looking statements are not based on 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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Agenda

 Welcome

 4Q19 and 2019 Financial Review  Earning Distribution  Business Outlook  Q&A

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4Q19 Income Statements

NT$ Million		4Q 2019	4Q 2019		3Q 2019	3Q 2019		4Q 2018	4Q 2018	QoQ	YoY
Net Sales		267,523	100.0%		249,923	100.0%		280,302	100.0%	7%	-5%
Gross Margin		9,517	3.6%		8,063	3.2%		8,755	3.1%	18%	9%
OperatingExp		6,431	2.4%		5,643	2.2%		6,078	2.2%
Operating Margin		3,086	1.2%		2,420	1.0%		2,677	1.0%	28%	15%
Non-OperatingItems		-318	-0.2%		87	0.0%		-116	-0.1%
Pre-Tax Income		2,768	1.0%		2,507	1.0%		2,561	0.9%	10%	8%
Income Tax		609	0.2%		463	0.2%		706	0.3%
Net Income		2,159	0.8%		2,044	0.8%		1,855	0.6%
Net Income to Parent		2,014	0.8%		1,800	0.7%		1,695	0.6%	12%	19%
Minority		145	0.0%		244	0.1%		160	0.0%
EPS(NT$)		0.47			0.41			0.39

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

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2019 Income Statements

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NT$ Million		2019	2019		2018	2018	YoY
Net Sales		980,442	100.0%		967,706	100.0%	1%
Gross Margin		33,909	3.5%		30,567	3.2%	11%
OperatingExp		23,323	2.4%		21,305	2.2%
Operating Margin		10,586	1.1%		9,262	1.0%	14%
Non-OperatingItems		-578	-0.1%		2,528	0.2%
Pre-Tax Income		10,008	1.0%		11,790	1.2%	-15%
Income Tax		2,112	0.2%		2,201	0.2%
Net Income		7,896	0.8%		9,589	1.0%
Net Income to Parent		6,956	0.7%		8,913	0.9%	-22%
Minority		940	0.1%		676	0.1%
EPS(NT$)		1.60			2.05

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 (EPS $0.58) was recognized in Non-Operating Items in 3Q 2018

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Non-Operating Breakdown

NT$ Million	4Q 2019	4Q 2019	3Q 2019	4Q 2018	4Q 2018	2019	2019	2018	2018
Interest Income (Exp), net		-214	-206		-418	-1,061		-1,173
Investment Gain (Loss), net		237	71		330		581		3,787
FX Gain (Loss) , net		-490	133		-65		-463		-431
Others		149	89		37		365		345
Non-Operating Gain (Loss)		-318	87		-116		-578		2,528

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 (EPS $0.58) was recognized in Non-Operating Items in 3Q 2018

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4Q19 Balance Sheets

NT$ Million		4Q 2019	4Q 2019		3Q 2019	3Q 2019		4Q 2018	4Q 2018
Cash and Cash Equivalents		66,559	17%		55,444	13%		70,297	18%
Account Receivable		191,737	50%		204,756	49%		203,774	51%
Inventories		78,434	20%		111,060	27%		79,149	20%
Current Assets		343,155	90%		379,859	91%		362,745	91%
Total Assets		382,648	100%		417,690	100%		399,795	100%
Accounts Payable		144,446	38%		174,946	42%		154,277	39%
Current Liabilities		255,820	67%		291,629	70%		274,208	69%
Total Liabilities		267,889	70%		303,978	73%		286,633	72%
Shareholders' Equity		114,759	30%		113,712	27%		113,162	28%
BVPS - Parent(NT$)		24.0 $			24.0 $			24.0 $
AR days		65			75			66
Inventorydays		28			42			27
AP days		51			66			52
CCC days		42			51			41

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

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Earning Distribution

 Compal BOD today approved to distribute total cash dividends of NT$1.2 per share for year 2019, representing 75% payout ratio. Compal will continue the commitment on stable dividend policy and the balance between business growth and long-term shareholders’ return.

NT$	2011	2012	2013	2014	2015	2016	2017	2018	2019
from Retain Earnings	1.4	1.0	0.5	1.0	1.0	1.0	1.0	1.0	1.0
from Capital Surplus	-	-	0.5	0.5	0.2	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	$1.2
Reported EPS	2.53	1.47	0.57	1.63	2.01	1.88	1.32	2.05	1.60
One-Time Loss Adj EPS	─	─	1.70	2.73	─	─	2.14	─	─
Payout Ratio %	55%	68%	175%	92%	60%	64%	91%	59%	75%
Adj Payout Ratio %	─	─	59%	55%	─	─	56%	─	─

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Note: 2019 earning distribution proposal is subject to the approval by Compal AGM in June 19, 2020

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

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