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ENNOSTAR Call Transcript 2024

Feb 23, 2024

52376_rns_2024-02-23_541881dc-9d0c-4dec-a5e3-b2a5577400cb.pdf

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ENNOSTAR Inc.(3714.TW) Fourth Quarter 2023 Results Investor Conference

Feb. 23, 2024

Confidential Security P

2023 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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2023 Ennostar Inc. All Rights Reserved.

Consolidated Statements of Comprehensive Income

4Q23
Net Revenue
5,574
EPISTAR
3,647
LEXTAR
1,785
Gross Margin
8.1%
Operating Expenses
1,278
Operating Margin
(14.8%)
Net Non-Operating Items
(3,394)
Net Income Attributable to
Parent Company
(3,962)
Net Profit Margin
(71.1%)
Basic EPS (NT Dollar)
(5.27)
EBITDA%
6.5%*
in NT$ millions
3Q23
6,159
3,787
2,171
8.7%
1,307
(12.4%)
11
(665)
(10.8%)
(0.89)
7.3%
4Q22
5,867
4,128
1,619
8.0%
1,335
(14.5%)
(143)
(752)
(12.8%)
(1.07)
7.7%
QoQ
-9.5%
-3.7%
-17.8%
-0.6%
-2.2%
-2.4%
-29800.5%
-495.6%
-60.3%
(4.38)
-0.8%
YoY
-5.0%
-11.6%
+10.2%
+0.1%
-4.3%
-0.3%
-2270.8%
-427.1%
-58.3%
(4.20)
-1.2%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2023 Ennostar Inc. All Rights Reserved.

Consolidated Statements of Comprehensive Income

2023
Net Revenue
22,306
EPISTAR
14,044
LEXTAR
7,713
Gross Margin
5.2%
Operating Expenses
5,199
Operating Margin
(17.9%)
Net Non-Operating Items
(3,384)
Net Income Attributable to
Parent Company
(6,783)
Net Profit Margin
(30.4%)
Basic EPS (NT Dollar)
(9.02)
EBITDA%
3.8%*
in NT$ millions
2022
28,878
20,656
7,918
17.3%
5,534
(1.6%)
(18)
38
0.1%
0.05
16.4%
YoY
-22.8%
-32.0%
-2.6%
-12.1%
-6.0%
-16.3%
-18835.2%
-17937.9%
-30.5%
(9.07)
-12.6%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2023 Ennostar Inc. All Rights Reserved.

– Statements of Comprehensive Income Epistar

in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
4Q23
3,647
5.4%
671
(12.9%)
13.0%
3Q23
3,787
3.4%
710
(15.0%)
10.7%
4Q22
4,128
8.0%
715
(8.8%)
17.9%
QoQ
-3.7%
+2.0%
-5.5%
+2.1%
+2.3%
YoY
-11.6%
-2.6%
-6.2%
-4.1%
-4.9%
in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
2023
14,044
(0.1%)
2,811
(19.8%)
8.2%
2022
20,656
18.9%
3,228
3.7%
25.3%
YoY
-32.0%
-19.0%
-12.9%
-23.5%
-17.1%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2023 Ennostar Inc. All Rights Reserved.

– Revenue by Application Epistar

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2023 Ennostar Inc. All Rights Reserved.

Statements of Comprehensive Income – Lextar

in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
4Q23
1,785
21.2%
497
(6.7%)
1.0%
3Q23
2,171
22.0%
525
(2.2%)
3.9%
4Q22
1,619
16.5%
500
(14.4%)
(6.0%)
QoQ
-17.8%
-0.8%
-5.2%
-4.5%
-2.9%
YoY
+10.2%
+4.7%
-0.6%
+7.7%
+7.0%
in NT$ millions
Net Revenue
Gross Margin
Operating Expenses
Operating Margin
EBITDA%*
2023
7,713
20.9%
1,959
(4.4%)
2.5%
2022
7,918
17.9%
1,886
(6.0%)
1.5%
YoY
-2.6%
+3.0%
+3.9%
+1.6%
+1.0%
  • EBITDA% is calculated as the operating income plus depreciation and amortization divided by revenue.

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2023 Ennostar Inc. All Rights Reserved.

– Revenue by Application Lextar

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2023 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
%
15,563
24.3%
8,899
13.9%
4,216
6.6%
3,300
5.1%
19,465
30.4%
64,102
100.0%
2,537
4.0%
1,934
3.0%
14,958
23.3%
49,145
76.7%
77
2.8
11,093
4Q23
Amount
%
16,830
23.8%
9,235
13.1%
4,465
6.3%
3,409
4.8%
20,873
29.5%
70,680
100.0%
3,443
4.9%
2,395
3.4%
16,661
23.6%
54,018
76.4%
72
2.7
10,992
3Q23
4Q22
Amount
%
16,127
22.1%
9,854
13.5%
4,825
6.6%
3,609
4.9%
22,037
30.2%
73,043
100.0%
1,630
2.2%
3,691
5.1%
16,382
22.4%
56,661
77.6%
81
3.2
10,806

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2023 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
Net Change in Cash
Ending Balance
in NT$ millions
4Q23
370
(4,219)
1,190
(50)
(560)
(367)
(1,159)
(1,330)
(1,267)
15,563
3Q23
395
(753)
1,216
(70)
(1,066)
(646)
(163)
(242)
(546)
16,830
4Q22
2,083
(992)
1,297
1,836
(720)
(1,241)
270
492
1,021
16,127

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2023 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
2023
2,380
(7,385)
4,840
1,467
(2,134)
(2,034)
(765)
(921)
0
0
(564)
15,563
2022
7,959
(483)
5,210
3,268
(4,699)
(4,320)
296
(2,317)
3,627
(1,366)
3,791
16,127

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2023 Ennostar Inc. All Rights Reserved.

Q&A

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2023 Ennostar Inc. All Rights Reserved.

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Thank You https://www.ennostar.com

Confidential Security P 2023 Ennostar Inc. All Rights Reserved.