ENNOSTAR — Interim / Quarterly Report 2021

Nov 10, 2021

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

Nov. 11, 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

3Q21Net Revenue10,329 EPISTAR7,240 LEXTAR3,089Gross Margin24.8%Operating Expenses1,539Operating Margin10.2%Net Non-Operating Items178Net Income Attributable toParent Company1,296Net Profit Margin12.6%Basic EPS (NT Dollar)1.91EBITDA%23.2%in NT$ millions	2Q219,3656,7802,58522.8%1,5366.8%857007.5%1.0320.9%	3Q206,5733,7312,8410.8%1,475(20.8%)(25)(1,309)(19.9%)(1.91)(0.8%)	QoQ+10.3%+6.8%+19.5%+2.0%+0.2%+3.4%-+85.2%+5.1%0.88+2.3%	YoY
				+57.1%+94.0%+8.7%+24.0%+4.4%+31.0%--+32.5%3.82+24.0%

• ＊ 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

20219 monthsNet Revenue26,572 EPISTAR18,583 LEXTAR7,989Gross Margin21.2%Operating Expenses4,398Operating Margin5.1%Net Non-Operating Items248Net Income Attributable toParent Company1,737Net Profit Margin6.5%Basic EPS (NT Dollar)2.56EBITDA%19.9%in NT$ millions	20209 months16,90110,2506,6511.0%4,383(24.0%)(201)(3,996)(23.6%)(5.82)0.1%	YoY
		+57.2%+81.3%+20.1%+20.2%+0.3%+29.1%--+30.1%8.38+19.8%

• ＊ 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%	3Q217,24026.8%93814.3%30.7%	2Q216,78024.4%1,00810.1%27.4%	3Q203,731(9.4%)835(30.4%)(0.7%)	QoQ+6.8%+2.4%-6.9%+4.2%+3.3%	YoY
					+94.0%+36.2%+12.3%+44.7%+31.4%
			YoY+81.3%+28.4%-2.8%+40.9%+26.1%
in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	20219 months18,58322.4%2,8457.8%26.4%	20209 months10,250(6.0%)2,928(33.1%)0.3%

• ＊ 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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----- Start of picture text ----- 100%5%11% 8% 10% 8%13%16% 16%80%32% 39%19%17% 18%60%14%18%12%18% 18%TV BLU40%15% 14% NB/MNT/Mobile17%13% 17% Lighting14% 11% Display20% 10% 10%8% Automotive9%7%IR15% 15% 13%10% 10%Others0%3Q20 4Q20 1Q21 2Q21 3Q21----- End of picture text -----

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Statements of Comprehensive Income – Lextar

in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	3Q213,08920.2%4655.2%11.1%	2Q212,58518.5%4670.4%7.8%	3Q202,84114.2%639(8.3%)(0.9%)	QoQ+19.5%+1.7%-0.5%+4.8%+3.3%	YoY
					+8.7%+6.0%-27.3%+13.5%+12.0%
			YoY+20.1%+6.4%-8.0%+11.5%+9.1%
in NT$ millionsNet RevenueGross MarginOperating ExpensesOperating MarginEBITDA%	20219 months7,98918.4%1,3401.6%8.9%	20209 months6,65112.0%1,455(9.9%)(0.2%)

• ＊ 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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----- Start of picture text ----- 100%80% 41% 41% 37% 36% 37%60%40% 48% 48% 45%43% 44% TV BLUNB/MNT/Mobile20% Lighting5%8% 7% 6% 7% 3% Display8% 8% 9% 9% 10% Sensing/UV/Auto0%3Q20 4Q20 1Q21 2Q21 3Q21----- End of picture text -----

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Consolidated Balance Sheets & Key Indices

		3Q21	3Q21	3Q21	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%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	3Q20
	in NT$ millions Cash & Cash EquivalentAccounts ReceivableInventoriesLong-term InvestmentsNet PP&ETotal AssetsShort-term DebtLong-term DebtTotal LiabilitiesTotal EquityInventory Turnover Days		Amount	%14.5%	Am	ount%	Amount%
			11,33214,0845,8082,66324,46278,12015,6513,97724,08454,03668		12725	6,4828.	10,14413.5%10,61014.2%4,2325.7%1,9292.6%25,98534.7%74,904100.0%2,6803.6%3,0124.0%20,14526.9%54,75973.1%562.1-8.1%
				18.0%7.4%3.4%31.3%00.0%7.2%5.1%30.8%69.2%		3,10117.5,8538.1,8702.4,82733.3,225100.3,4894.3,9175.1,10628.2,11871.73
	Current RatioNet Debt to Equity	2.1-3.2%

＊ 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	3Q212,0721,2341,343(527)44(898)2,8042,2234,85011,332	2Q21(203)7201,323(2,419)(775)(1,082)578388(618)6,482	3Q20
			631(1,395)1,317748(1,700)(1,938)1,1781,45218810,144

＊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	20219 months1,2371,6103,928(4,520)(3,404)(3,716)4,6253,8902,34111,332	20209 months
		1,999(4,254)4,0741,766(3,957)(3,771)3,1942,5501,15310,144

＊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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