HannsTouch — Call Transcript 2020

Nov 25, 2020

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HannsTouch Solution Inc. 2020 Investor Conference 25.11.2020

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Safe Harbor Notice

We have made forward-looking statements in this presentation. Our forward-looking statements contain information regarding, among other things, our financial condition, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties and assumptions about us.

We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

The information contained herein shall also not constitute an offer to sell or a solicitation of an offer to buy the company’s securities nor shall there be any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country.

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Agenda
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PART 01
Update & Outlook
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PART 02 Financial Results
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PART 03 Q & A
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Smart Phone Marketing

Worldwide Mobile phone Annual Shipment and Forecast

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(Unit: Million)
YoY YoY
+35.9 +139
-69 +80
-76 -104
-5.44% -7.68%
-3.58% +4.27%
+9.02% +3.41%
-109 +115
TOTAL 1397 1288 1403
-7.8% +8.9%
Source：
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68
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Smart Phone Display

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YOY +30.3 +16 -116 +68 +61 +61 -3 -38 Source：

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698.1
484.6 497.5
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Smart Phone OLED

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+34% +107.5% +59.9% +10.4% +41.2% +145.7% +620%

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Source：

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Design Trend with Longer Aspect Ratio

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• The screen size is shifting to longer screens (aspect ratio 19:9 to 21:9).

• The shipment volume of 6” or larger exceeded 75% in ‘19, and the size is further shifting to 6.5” or larger screens.

• Hole display led the premium phone design in ’19; pop up camera enables the full screen design; curved and longer phone designs maximize the display.

• In the long term, foldable display designs (book type or clamshell type) will also impact this trend.

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Source: Omdia
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Foldable and Dual Screen Products at CES 2020

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Source: Omdia
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Galaxy S20FE 6.5”

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Galaxy A51 6.5”

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Galaxy A71 6.7”

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Galaxy A90 6.7”

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OPPO RENO 4 6.57”

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Redmi K30 Pro 6.67”

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HUAWEI Nova 7 6.53”

HONOR 30 Pro 6.53”

10.2”ESL Module

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2.15”ESL Module

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4.3”ESL Module

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Agenda
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PART 01
Update & Outlook
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PART 02 Financial Results
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PART 03 Q & A
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Statement of Comprehensive Income

NT$ Million	Nine Months Ended September 2020	30,	Nine Months Ended September 2019	30,
Sales	2,152	100%	3,279	100%
Gross profit	412	19%	1,203	37%
Operating income	172	8%	985	30%
Net income	140	7%	784	24%
EBITDA	1,040		1,798
EPS (NT$)	0.17		1.08

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Statement of Balance Sheet

NT$ Million	2020.09.30		2019.09.30	2019.09.30
Cash and cash equivalents	809	5%	849	5%
Accounts receivable(net)	280	2%	438	2%
Inventories	186	1%	181	1%
Other Current assets	357	2%	376	2%
Current assets	1,632	10%	1,844	10%
Property,plant and equipment	13,616	85%	8,520	48%
Investment property	0	0%	5,717	32%
Other assets	756	5%	1,673	9%
Total Assets	16,004	100%	17,754	100%
Short-term loans	147	1%	750	4%
Other current liabilities	500	3%	725	4%
Current liabilities	647	4%	1,475	8%
Long-term loans	5,513	34%	5,860	33%
Other liabilities	346	3%	981	6%
Total Liabilities	6,506	41%	8,316	47%
Total Equity	9,497	59%	9,438	53%
Current Ratio(%)		252%		125%
Debt/Equity Ratio(%)		69%		88%

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Statement of Cash Flows

NT$ Million	2020	2019
Cash and cash equivalents(Beg)	402	319
Income before income tax	202	922
Depreciation & Amortization	763	759
Others	21	(91)
Operating Cash Flow	986	1,590
Investing Cash Flow	(218)	(102)
Financing Cash Flow	(361)	(958)
Cash and cash equivalents(End)	809	849

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Revenue & GP (%) Trend

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1,6001,600 41% 37% 55%
35% 40%
31%
1,400 35%
1,215 19% 30%
1,200 20% 1,125
1,200
15%
-1% 20%
899 8%
1,000
-5%
860 10%
800 701
800 705
645 552 -25%0%
600
-45%-10%
400
400
-20%
-65%
200 -30%
0 -85%
2019Q4 2020Q1 2020Q2 2020Q3
0 -40%
Revenue GP(%) (NT$M)
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PART 03 Q & A

HannsTouch Solution Inc. Innovative Technology Touch Your Heart

THANKS