EDOM — Interim / Quarterly Report 2017

Nov 13, 2017

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2017 Third Quarter
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2017/11/13
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Jackie Chien Telephone: 886-2-2657-8811 Fax: 886-2-2657-9090 E-mail: Jackiec@edom.com.tw http://www.edom.com.tw

• These information which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on Edom’s current expectations. Actual results may differ materially from those expressed or implied in these forward-looking statements

• In addition, any financial information contained here within is presented in conformity with International Financial Reporting Standards (IFRSs).

• Except as required by law, our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.

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� Overview

� Financial Update

� Q & A

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Founded in 1996 Headquarters at Taipei

700+ Employees

US$2.35 Billion 28 2016 Revenue

Sales Offices

Main Principals

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8th Largest Semiconductor in 2016

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2,500
2,350
2,200
1,962
2,000
1,500
1,126
1,000
897
500
0
2012 2013 2014 2015 2016
Revenue
(US$millions)
Mobile Phone/Tablet Data Center Identification Security IoT
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Mega Trends Driving Growth

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Data Center Automation More Emerging IoT Applications Wearables Cloud Computing Automotive Server Virtual Reality Smart City / Home EV/HEV Smart Healthcare Networking Augmented Reality Digital Cockpit Artificial Intelligence Smart Metering Storage systems Smart Car / Self-Driving Car Machine Learning, Smart Factory Cloud Software Platform, Robot, Drone, etc. etc. FinTech, etc. Smart Agriculture, etc.

Key Factors: MCU, Power, Sensor, Connectivity, Identification/Security, Software

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Our Advantages

• Precise prediction

• Early Involvement

• Cross-industry

opportunities awareness Trend Platform Prediction Leverage

  - **Mobile Phone/Tablet**

  - • **Automotive/Industrial**

  - **Cloud/Networking**

  - **Smart Home/Automation**

  - **IoT**

• Total 155 Engineers

• FAE Support – New Hires

• 80% professional SW engineers

• 20% professional HW engineers

Technical Dedicated Support Team

• Dedicated team to drive

business (by application / vendor)

• Rapid response and highly efficient customer service

• Experts at demand creation

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China 19 sales offices
Shenzhen, Dongguan, Guangzhou,
Zhuhai, Xiamen, Fuzhou, Hong Kong,
Shanghai, Ningbo, Beijing, Dalian,
Tianjin, Qingdao, Hefei, Hangzhou,
Xi’an, Chengdu, Chongqing, Wuhan
Taiwan 3 sales offices
Taipei (Headquarters), Taichung,
Kaohsiung
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Total 28 Sales Offices Will Open More Branches

Southeast Asia & India 6 Sales Offices Malaysia, Singapore, Thailand, India ( Bangalore, Pune, Delhi)

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Statement of Comprehensive Income

Unit ： NT$K

Item Operating revenue COGS Gross profit Gross profit% Operating expenses Operating income Operating income% Financial costs Others Profit before tax Income tax Profit after tax Net profit % EPS(In dollar)(1)	Quarterly Q317 Q217 QoQ Q316 YoY 21,501,594 16,762,662 28.3% 24,689,294(12.9%) (20,815,836) (16,199,296) 28.5% (23,992,984) (13.2%) 685,758 563,366 21.7% 696,310 (1.5%) 3.2% 3.4% 2.8% (426,509) (369,781) 15.3% (433,583) (1.6%) 259,249 193,585 33.9% 262,727 (1.3%) 1.2% 1.2% 1.1% (104,964) (101,172) 3.7% (78,430) 33.8% 12,696 11,626 (4,930) 166,981 104,039 60.5% 179,367 (6.9%) (28,730) (26,882) 6.9% (28,988) (0.9%) 138,251 77,157 79.2% 150,379 (8.1%) 0.6% 0.5% 0.6% 0.62 0.35 0.68	Yearly 3Q17 3Q16 YoY 55,334,228 53,346,750 3.7% (53,512,121) (51,764,481) 3.4% 1,822,107 1,582,269 15.2% 3.3% 3.0% (1,175,790) (1,078,834) 9.0% 646,317 503,435 28.4% 1.2% 0.9% (334,506) (219,254) 52.6% 23,879 (8,582) 335,690 275,599 21.8% (66,958) (48,340) 38.5% 268,732 227,259 18.2% 0.5% 0.4% 1.21 1.03

(1)Based on 2017’Q2 weighted average of outstanding shares

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Balance Sheet

Unit[：] NT$K

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2017/09/30 2017/06/30 2016/09/30
Item
Amount % Amount % Amount %
Cash and cash equivalents 664,429 4.3 589,290 4.0 762,705 3.7
Notes/Accounts receivable 5,897,433 37.7 4,712,608 32.0 9,029,663 43.7
Inventory 7,695,566 49.2 8,094,598 54.9 9,803,981 47.5
Other current assets 358,356 2.3 347,452 2.3 360,807 1.8
Non-current assets 1,011,486 6.5 1,000,604 6.8 684,752 3.3
Total Assets 15,627,270 100.0 14,744,552 100.0 20,641,908 100.0
Short-term borrowings 3,498,334 22.4 3,794,430 25.7 8,063,038 39.1
Notes/Account payable 6,463,986 41.4 5,533,286 37.5 7,265,985 35.2
Other current liabilities 1,509,471 9.5 1,483,515 10.2 1,598,298 7.7
Long-term borrowings 900,077 5.8 800,000 5.4 480,000 2.3
Others 42,402 0.3 48,355 0.3 80,913 0.4
Total Liabilities 12,414,270 79.4 11,659,586 79.1 17,488,234 84.7
Total Equity 3,213,000 20.6 3,084,966 20.9 3,153,674 15.3
Index 3Q17 2Q17 3Q16
A/R turnover days 29 29 30
Inventory turnover days 41 46 48
A/P turnover days 33 34 32
Cash operating cycle days 37 41 46
Current ratio 127% 127% 118%
Return of assets 4.6% 4.2% 3.3%
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Operating revenue

Unit : NT$M

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Year Q1 Q2 Q3 Q4
80,000
70,000
29.6%
26.1%
60,000
32.9% 75,729
50,000
38.9%
26.1%
32.6%
40,000
71,618
28.2%
30,000 28.5%
61,012
24.0% 30.3%
19.8% 55,335
20,000 29.0%
22.1%
34,738
22.2%
10,000
23.8% 30.8%
18.0%
16.8%
20.3%
0
2013 * * * * 2014 * * * * 2015 * * * * 2016 * * * * 2017 * *
2013 2014 2015 2016 2017Q3
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Year 2017 Q1~Q3 Application

Year 2017 Q1~Q3 Category

Wireless Communications Consumer Analog Micro Components Computer Wired Communications Logic Memory Industrial Others Optoelectronics Others 1.0% 1.5% 3.3%[2.8%] 5.3% 6.1% 5.9% 6.9% 18.7% 67.6% 12.6% 68.3%

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Cash operating cycle

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A/R turnover days Inventory turnover days A/P turnover days Cash operating cycle days
60
50
46
43
40 41
40 37 37
35
33
32 32
31
30 28 28
20
10
0
2013 2014 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3
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Gross profit & Operating income

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Unit：NT$K Gross profit Operating income Gross profit % Operating income %
800,000 4.0%
3.4% 3.4% 3.4%
3.2% 3.2% 3.2% 3.2%
3.1%
3.0%
600,000 2.8% 2.8% 3.0%
400,000 2.0%
572,003 557,673 582,139 526,500 433,967 451,992 696,310 713,210 572,983 563,366 685,758
1.2% 1.1% 1.2% 1.1% 1.2% 1.2%
1.1%
200,000 0.9% 0.8% 0.8% 1.0%
0.6%
196,745 190,262 219,056 163,642 114,122 126,586 262,727 136,648 193,483 193,585 259,249
- 0.0%
2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3
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EPS & ROE

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Unit：NT$ EPS ROE(Quarterly) ROE(Yearly)
$1.00 20.0%
18.2%
14.3% 14.3% 14.1% 15.0%
15.2%
14.0%
12.9%
14.3% 14.4%
9.8%
$0.50 10.6% 10.0%
11.2%
9.5%
6.7%
6.5% 8.3%
7.3%
6.7%
5.0%
3.2%
4.9%
3.2%
1.3%
$0.47 $0.46 $0.62 $0.36 $0.12 $0.23 $0.68 $0.05 $0.24 $0.35 $0.62
$0.00 0.0%
2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3
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Q&A Thanks!

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