ENNOSTAR — Call Transcript 2021

Aug 13, 2021

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ENNOSTAR Inc.(3714.TW) Second Quarter 2021 Results Investor Conference

Aug. 13, 2021

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Safe Harbor Notice

This presentation may contain forward-looking statements. These forward-looking are subject to risks, uncertainties and other factors. Consequently, actual results could differ materially from those reflected in these forward-looking statements.

The factors include the impact of competitive products and pricing, timely acceptance of products design by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand, market oversupply, availability of manufacturing capacity, financial stability in end markets, potential difficulties in talents retention, unexpected costs and expenses, any merger and acquisition associated uncertainties such as obtaining of regulatory approval or integration delay, loss of significant customers, involvement in legal or administrative proceedings, new regulations that may impact our business operation, fluctuations in foreign exchange rates, global economic conditions or non-economic conditions and any other risks factors.

Except as imposed by law, we undertake no obligation to publicly revise or update these forward-looking statements, whether as a result of new information, future events or otherwise.

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Consolidated Statements of Comprehensive Income

2Q21Net Revenue9,365 EPISTAR6,780 LEXTAR2,585Gross Margin22.8%Operating Expenses1,536Operating Margin6.8%Net Non-Operating Items85Net Income Attributable toParent Company700Net Profit Margin7.5%Basic EPS (NT Dollar)1.03EBITDA%20.9%in NT$ millions	1Q216,8794,5632,31613.7%1,323(4.8%)(15)(260)(3.8%)(0.38)13.6%	2Q205,2623,1312,131(0.4%)1,222(22.8%)136(1,019)(19.4%)(1.49)2.7%	QoQ+36.1%+48.6%+11.6%+9.1%+16.1%+11.6%--+11.3%1.41+7.4%	YoY
				+78.0%+116.6%+21.3%+23.2%+25.7%+29.6%--+26.9%2.52+18.3%

• ＊ EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

• ＊*The data of 2020 above is a simple addition of EPISTAR's financial report and LEXTAR's financial report and is unaudited.

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Consolidated Statements of Comprehensive Income

1H21Net Revenue16,244 EPISTAR11,343 LEXTAR4,901Gross Margin18.9%Operating Expenses2,859Operating Margin1.9%Net Non-Operating Items70Net Income Attributable toParent Company440Net Profit Margin2.7%Basic EPS (NT Dollar)0.65EBITDA%17.8%in NT$ millions	1H2010,3286,5193,8101.2%2,909(26.0%)(176)(2,687)(26.0%)(3.92)0.7%	YoY
		+57.3%+74.0%+28.6%+17.7%-1.7%+27.9%--+28.7%4.57+17.1%

• ＊ EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

• ＊*The data of 2020 above is a simple addition of EPISTAR's financial report and LEXTAR's financial report and is unaudited.

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– Statements of Comprehensive Income Epistar

in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	2Q216,78024.4%1,00810.1%27.4%	1Q214,56312.6%899(5.9%)18.1%	2Q20	1)6)%	QoQ+48.6%+11.8%+12.0%+16.0%+9.3%	YoY
			3,13(8.4%79(32.6%3.6			+116.6%+32.8%+26.5%+42.7%+23.8%
in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	1H2111,34319.6%1,9073.7%23.6%	1H206,519(4.1%)2,093(34.7%)0.9%	YoY
			+74.0%+23.7%-8.9%+38.4%+22.7%

• ＊ EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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– Revenue by Application Epistar

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Statements of Comprehensive Income – Lextar

in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	2Q212,58518.5%4670.4%7.8%	1Q212,31615.8%407(1.8%)7.0%	2Q202,13111.5%426(8.5%)1.5%	QoQ+11.6%+2.7%+14.7%+2.2%+0.8%	YoY
					+21.3%+7.0%+9.7%+8.9%+6.3%
in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	1H214,90117.2%875(0.6%)7.4%	1H203,81010.3%816(11.1%)0.3%	YoY+28.6%+6.9%+7.2%+10.5%+7.1%

• ＊ EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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Revenue by Application – Lextar

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Consolidated Balance Sheets & Key Indices

in NT$ millions Cash & Cash EquivalentAccounts ReceivableInventoriesLong-term InvestmentsNet PP&ETotal AssetsShort-term DebtLong-term DebtTotal LiabilitiesTotal EquityInventory Turnover DaysCurrent RatioNet Debt to Equity	Amount%6,4828.9%13,10117.9%5,8538.0%1,8702.6%24,82733.9%73,225100.0%3,4894.8%3,9175.3%21,10628.8%52,11871.2%732.11.8%2Q21	Amount%7,1009.9%10,58414.8%5,6927.9%1,9392.7%25,60035.7%71,703100.0%3,0914.3%3,6295.1%20,11328.1%51,59071.9%762.0-0.7%1Q21	2Q20
			Amount%
			9,95613.7%9,66313.3%4,6476.4%2,3893.3%24,60634.0%72,457100.0%2,2753.1%2,4333.4%16,88523.3%55,57276.7%762.5-9.4%

＊ The data of 2020 above is a simple addition of EPISTAR's financial report and LEXTAR's financial report and is unaudited.

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Consolidated Cash Flows

From Operating ActivitiesProfit before TaxDepreciation & AmortizationNet Change in Working CapitalFrom Investing ActivitiesCapital ExpenditureFrom Financing ActivitiesNet Change in LoansNet Change in CashEnding Balancein NT$ millions	2Q21(203)7201,323(2,419)(775)(1,082)578388(618)6,482	1Q21(632)(344)1,262(1,574)(2,672)(1,736)1,2431,279(1,892)7,100	2Q20
			1,100(1,066)1,346840(1,510)(1,087)7351891509,956

＊The data of 2021 above excludes the effect of initial consolidation of subsidiaries, which is NT$ 3,764 million.

** The data of 2020 above is a simple addition of EPISTAR's financial report and LEXTAR's financial report and is unaudited. .

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Consolidated Cash Flows

From Operating ActivitiesProfit before TaxDepreciation & AmortizationNet Change in Working CapitalFrom Investing ActivitiesCapital ExpenditureFrom Financing ActivitiesNet Change in LoansNet Change in CashEnding Balancein NT$ millions	1H21(835)3762,584(3,993)(3,448)(2,817)1,8211,667(2,510)6,482	1H20
		1,367(2,859)2,7561,019(2,256)(1,833)2,0161,0999659,956

＊The data of 2021 above excludes the effect of initial consolidation of subsidiaries, which is NT$ 3,764 million.

** The data of 2020 above is a simple addition of EPISTAR's financial report and LEXTAR's financial report and is unaudited. .

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Q&A

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Thank You https://ennostar.com

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