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ENNOSTAR Call Transcript 2022

Aug 23, 2022

52376_rns_2022-08-23_ce19f637-fb0f-489f-b160-9ed6a4b3e5fe.pdf

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

AUG. 5, 2022

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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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Confidential Security P 2021 Ennostar Inc. All Rights Reserved.

2

Consolidated Statements of Comprehensive Income

2Q22
Net Revenue
7,781
EPISTAR
5,555
LEXTAR
2,137
Gross Margin
22.8%
Operating Expenses
1,504
Operating Margin
3.7%
Net Non-Operating Items
58
Net Income Attributable to
Parent Company
389
Net Profit Margin
5.0%
Basic EPS (NT Dollar)
0.57
EBITDA%
20.2%*
in NT$ millions
1Q22
8,546
6,206
2,339
21.8%
1,358
6.2%
174
759
8.9%
1.11
21.6%
2Q21
9,365
6,780
2,585
22.8%
1,536
6.8%
85
700
7.5%
1.03
20.9%
QoQ
-9.0%
-10.5%
-8.6%
+1.0%
+10.7%
-2.5%
-66.5%
-48.8%
-3.9%
(0.54)
-1.4%
YoY
-16.9%
-18.1%
-17.3%
+0.0%
-2.1%
-3.1%
-31.5%
-44.5%
-2.5%
(0.46)
-0.7%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2021 Ennostar Inc. All Rights Reserved.

Consolidated Statements of Comprehensive Income

1H22
Net Revenue
16,327
EPISTAR
11,761
LEXTAR
4,476
Gross Margin
22.3%
Operating Expenses
2,862
Operating Margin
5.0%
Net Non-Operating Items
232
Net Income Attributable to
Parent Company
1,148
Net Profit Margin
7.0%
Basic EPS (NT Dollar)
1.68
EBITDA%
20.9%*
in NT$ millions
1H21
16,244
11,343
4,901
18.9%
2,859
1.9%
70
440
2.7%
0.65
17.8%
YoY
+0.5%
+3.7%
-8.7%
+3.4%
+0.1%
+3.1%
+231.6%
+160.7%
+4.3%
1.03
+3.1%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2021 Ennostar Inc. All Rights Reserved.

– Statements of Comprehensive Income Epistar

in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
2Q22
5,555
27.0%
859
12.0%
31.2%
1Q22
6,206
22.9%
874
9.3%
28.3%
2Q21
6,780
24.4%
1,008
10.1%
27.4%
QoQ
-10.5%
+4.1%
-1.8%
+2.7%
+2.9%
YoY
-18.1%
+2.6%
-14.8%
+1.9%
+3.8%
YoY
+3.7%
+5.2%
-9.2%
+6.8%
+6.1%
in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
1H22
11,761
24.8%
1,733
10.5%
29.7%
1H21
11,343
19.6%
1,907
3.7%
23.6%
  • 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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2021 Ennostar Inc. All Rights Reserved.

Statements of Comprehensive Income – Lextar

in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
2Q22
2,137
16.8%
497
(6.4%)
0.8%
1Q22
2,339
19.2%
437
0.6%
7.1%
2Q21
2,585
18.5%
467
0.4%
7.8%
QoQ
-8.6%
-2.4%
+13.7%
-7.0%
-6.3%
YoY
-17.3%
-1.7%
+6.3%
-6.9%
-7.0%
YoY
-8.7%
+0.9%
+6.8%
-2.2%
-3.3%
in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
1H22
4,476
18.1%
934
(2.8%)
4.1%
1H21
4,901
17.2%
875
(0.6%)
7.4%
  • 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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2021 Ennostar Inc. All Rights Reserved.

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
%
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
Amount
%
12,733
16.7%
13,563
17.8%
5,831
7.7%
3,976
5.2%
23,233
30.6%
76,023
100.0%
2,872
3.8%
3,915
5.2%
21,989
28.9%
54,034
71.1%
79
2.2
5,946
1Q22
2Q21
Amount
%
6,482
8.9%
13,101
17.9%
5,853
8.0%
1,870
2.6%
24,827
33.9%
73,225
100.0%
2,642
3.6%
3,917
5.3%
21,106
28.8%
52,118
71.2%
67
2.1
(77)

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2021 Ennostar Inc. All Rights Reserved.

Consolidated Cash Flows

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
Net Change in Cash
Ending Balance
in NT$ millions
2Q22
2,254
348
1,286
576
(1,319)
(1,214)
(1,518)
(1,582)
(112)
12,621
1Q22
1,732
704
1,313
(309)
(1,324)
(933)
(38)
(594)
397
12,733
2Q21
(203)
720
1,323
(2,419)
(775)
(1,082)
578
736
(618)
6,482
  • The data of 2021 above excludes the effect of initial consolidation of subsidiaries, which is NT$ 3,764 million.

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2021 Ennostar Inc. All Rights Reserved.

Consolidated Cash Flows

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
Net Change in Cash
Ending Balance
in NT$ millions
1H22
3,986
1,051
2,599
266
(2,643)
(2,147)
(1,557)
(2,177)
285
12,621
1H21
(835)
376
2,584
(3,993)
(3,448)
(2,817)
1,821
1,692
(2,510)
6,482
  • The data of 2021 above excludes the effect of initial consolidation of subsidiaries, which is NT$ 3,764 million.

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2021 Ennostar Inc. All Rights Reserved.

Q&A

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2021 Ennostar Inc. All Rights Reserved.

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Thank You https://www.ennostar.com

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2021 Ennostar Inc. All Rights Reserved.