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ENNOSTAR Call Transcript 2022

Nov 3, 2022

52376_rns_2022-11-03_67cf443c-30b2-40ac-8da7-e96685760f31.pdf

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ENNOSTAR Inc.(3714.TW) Third Quarter 2022 Results Investor Conference

Nov. 4, 2022

Confidential Security P 2021 Ennostar Inc. All Rights Reserved.

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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2021 Ennostar Inc. All Rights Reserved.

Consolidated Statements of Comprehensive Income

3Q22
Net Revenue
6,684
EPISTAR
4,768
LEXTAR
1,823
Gross Margin
13.1%
Operating Expenses
1,337
Operating Margin
(6.5%)
Net Non-Operating Items
(106)
Net Income Attributable to
Parent Company
(358)
Net Profit Margin
(5.4%)
Basic EPS (NT Dollar)
(0.48)
EBITDA%
13.1%*
in NT$ millions
2Q22
7,781
5,555
2,137
22.8%
1,504
3.7%
58
389
5.0%
0.57
20.2%
3Q21
10,329
7,240
3,089
24.8%
1,539
10.2%
178
1,296
12.6%
1.91
23.2%
QoQ
-14.1%
-14.2%
-14.7%
-9.7%
-11.1%
-10.2%
-283.0%
-192.0%
-10.4%
(1.05)
-7.1%
YoY
-35.3%
-34.1%
-41.0%
-11.7%
-13.1%
-16.7%
-159.7%
-127.6%
-18.0%
(2.39)
-10.1%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2021 Ennostar Inc. All Rights Reserved.

3

Consolidated Statements of Comprehensive Income

2022
9 months
Net Revenue
23,011
EPISTAR
16,529
LEXTAR
6,299
Gross Margin
19.6%
Operating Expenses
4,199
Operating Margin
1.7%
Net Non-Operating Items
125
Net Income Attributable to
Parent Company
790
Net Profit Margin
3.4%
Basic EPS (NT Dollar)
1.12
EBITDA%
18.7%*
in NT$ millions
2021
9 months
26,572
18,583
7,989
21.2%
4,398
5.1%
248
1,737
6.5%
2.56
19.9%
YoY
-13.4%
-11.1%
-21.2%
-1.6%
-4.5%
-3.4%
-49.4%
-54.5%
-3.1%
(1.44)
-1.2%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2021 Ennostar Inc. All Rights Reserved.

– Statements of Comprehensive Income Epistar

in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
3Q22
4,768
13.5%
780
(2.3%)
20.6%
2Q22
5,555
27.0%
859
12.0%
31.2%
3Q21
7,240
26.8%
938
14.3%
30.7%
QoQ
-14.2%
-13.5%
-9.2%
-14.3%
-10.6%
YoY
-34.1%
-13.3%
-16.9%
-16.6%
-10.1%
YoY
-11.1%
-0.8%
-11.7%
-1.0%
+0.7%
in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
2022
9 months
16,529
21.6%
2,512
6.8%
27.1%
2021
9 months
18,583
22.4%
2,845
7.8%
26.4%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

** Unikorn has not been consolidated into Epistar since the second quarter of 2022 because of the group reorganization.

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2021 Ennostar Inc. All Rights Reserved.

– Revenue by Application Epistar

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Statements of Comprehensive Income – Lextar

in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
3Q22
1,823
18.5%
452
(6.3%)
1.9%
2Q22
2,137
16.8%
497
(6.4%)
0.8%
3Q21
3,089
20.2%
465
5.2%
11.1%
QoQ
-14.7%
+1.7%
-9.1%
+0.1%
+1.1%
YoY
-41.0%
-1.7%
-2.9%
-11.5%
-9.2%
YoY
-21.2%
-0.2%
+3.4%
-5.4%
-5.5%
in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
2022
9 months
6,299
18.2%
1,385
(3.8%)
3.4%
2021
9 months
7,989
18.4%
1,340
1.6%
8.9%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2021 Ennostar Inc. All Rights Reserved.

– Revenue by Application Lextar

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Consolidated Balance Sheets & Key Indices

in NT$ millions
Cash & Cash Equivalent
Accounts Receivable
Inventories
Long-term Investments
Net PP&E
Total Assets
Short-term Debt
Long-term Debt
Total Liabilities
Total Equity
Inventory Turnover Days
Current Ratio
Net Cash
Amount
%
15,106
20.1%
11,270
15.0%
5,472
7.3%
3,839
5.1%
22,711
30.2%
75,110
100.0%
769
1.0%
4,076
5.4%
17,525
23.3%
57,586
76.7%
90
3.2
10,261
3Q22
Amount
%
12,621
17.1%
12,346
16.7%
5,935
8.0%
3,913
5.3%
23,117
31.3%
73,943
100.0%
1,328
1.8%
4,119
5.6%
20,057
27.1%
53,886
72.9%
89
2.5
7,174
2Q22
3Q21
Amount
%
11,332
14.5%
14,084
18.0%
5,808
7.4%
2,663
3.4%
24,462
31.3%
78,120
100.0%
4,855
6.2%
3,977
5.1%
24,084
30.8%
54,036
69.2%
62
2.1
2,500

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2021 Ennostar Inc. All Rights Reserved.

9

Consolidated Cash Flows

From Operating Activities
Profit before Tax
Depreciation & Amortization
Net Change in Working Capital
From Investing Activities
Capital Expenditure
From Financing Activities
Net Change in Loans
Cash Capital Increase
Cash Dividends
Net Change in Cash
Ending Balance
in NT$ millions
3Q22
1,890
(543)
1,314
1,166
(1,337)
(932)
1,583
(632)
3,627
(1,366)
2,485
15,106
2Q22
2,254
348
1,286
576
(1,319)
(1,214)
(1,518)
(1,582)
0
0
(112)
12,621
3Q21
2,072
1,234
1,343
(527)
44
(898)
2,804
2,273
0
0
4,850
11,332
  • The data of 2021 above excludes the effect of initial consolidation of subsidiaries, which is NT$ 3,764 million.

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Confidential Security P 2021 Ennostar Inc. All Rights Reserved.

Consolidated Cash Flows

From Operating Activities
Profit before Tax
Depreciation & Amortization
Net Change in Working Capital
From Investing Activities
Capital Expenditure
From Financing Activities
Net Change in Loans
Cash Capital Increase
Cash Dividends
Net Change in Cash
Ending Balance
in NT$ millions
2022
9 months
5,876
508
3,913
1,432
(3,979)
(3,079)
26
(2,809)
3,627
(1,366)
2,770
15,106
2021
9 months
1,237
1,610
3,928
(4,520)
(3,404)
(3,716)
4,625
3,965
0
0
2,341
11,332
  • The data of 2021 above excludes the effect of initial consolidation of subsidiaries, which is NT$ 3,764 million.

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Confidential Security P 2021 Ennostar Inc. All Rights Reserved.

11

Q&A

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Confidential Security P 2021 Ennostar Inc. All Rights Reserved.

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Thank You https://www.ennostar.com

Confidential Security P 2021 Ennostar Inc. All Rights Reserved.