INVENTEC — Call Transcript 2021

Mar 30, 2021

Inventec Corporation and Subsidiaries 2020 Fourth Quarter Investor Conference

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Consolidated Statements of Comprehensive Income

NT$ Million	2020 Year-to-Q4	2019 Year-to-Q4	YoY %
Sales Revenue	508,294 100.0%	500,953 100.0%	1%
Gross Profit	21,113 4.2%	22,831 4.6%	-8%
Operating Expense	16,672 3.3%	16,428 3.3%	1%
Operating Profit	4,441 0.9%	6,403 1.3%	-31%
Non Operating Income and Expenses	5,905 1.1%	106 0.0% 5471%
Profit Before Income Tax	10,346 2.0%	6,509 1.3% 59%
Profit for the Period	6,573 1.3%	4,837 1.0% 36%
Total Comprehensive Income	6,421 1.3%	4,585 0.9% 40%
Profit Attributable to
Owners of the Parent	7,548 1.5%	5,508 1.1%
Non-Controlling Interest	(975) -0.2%	(671) -0.1%
Total Comprehensive Income Attributable to
Owners of the Parent	7,391 1.5%	5,287 1.0%
Non-Controlling Interest	(970) -0.2%	(702) -0.1%
EPS (NT$)	2.10	1.54

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Consolidated Statements of Comprehensive Income

NT$ Million	2020 Q4	2020 Q3	QoQ %	2019 Q4	YoY %
Sales Revenue	125,477 100.0%	145,380 100.0%	-14%	129,578 100.0%	-3%
Gross Profit	5,031 4.0%	5,851 4.0%	-14%	6,194 4.8%	-19%
Operating Expense	4,402 3.5%	4,322 2.9%	2%	4,211 3.3%	5%
Operating Profit	629 0.5%	1,529 1.1%	-59%	1,983 1.5%	-68%
Non Operating Income and Expenses	186 0.1%	765 0.5%	-76%	(326) -0.3% -157%
Profit Before Income Tax	815 0.6%	2,294 1.6%	-64%	1,657 1.3% -51%
Profit for the Period	375 0.3%	1,744 1.2%	-78%	1,292 1.0% -71%
Total Comprehensive Income	(96) -0.1%	2,037 1.4% -105%		689 0.5% -114%
Profit Attributable to
Owners of the Parent	925 0.7%	1,931 1.3%		1,382 1.1%
Non-Controlling Interest	(550) -0.4%	(187) -0.1%		(90) -0.1%
Total Comprehensive Income Attributable to
Owners of the Parent	447 0.3%	2,217 1.5%		803 0.6%
Non-Controlling Interest	(543) -0.4%	(180) -0.1%		(114) -0.1%
EPS (NT$)	0.25	0.54		0.39

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Consolidated Sales Revenue

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(Consolidated Sales Revenue)
Unit: NT$ one hundred million
1,800
1,600 1,454 1,488
0%
1,400 0% 1,296 1,287 1,278
1,255 6%
8%
1% 1% 1% 1,149
0%
1,200
7% 17% 20% 15% 1%
887
1,000 14%
1%
800
13%
94%
92%
600 93%
82% 79% 84%
85%
400 86%
200
0
20Q4 20Q3 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1
Solar Related Smart Device PC, Server Sales Revenue
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Financial Trend Analysis

	6.3 15.3 20.3 2.5 19.8 18.8 12.7 12.7 1,255 1,454 1,488 887 1,296 1,287 1,278 1,149 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 0 5 10 15 20 25 30 35 40 45 20Q4 20Q3 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million			9.3 19.3 16.6 30.3 13.8 10.6 13.6 17.0 1.9 7.6 0.4 49.1 (3.3) (3.8) 1.9 6.3 (150) (100) (50) 0 50 0 5 10 15 20 25 30 35 40 45 20Q4 20Q3 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1 Profit Attributable to Owners of the Parent Non-Operating Income and Expense Profit Attributable to Owners of the Parent NT$ one hundred million Non-operating income and expenses NT$ one hundred million

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Financial Trend Analysis

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Operating Expense Operating Profit Margin(%)
Product Portfolio Rate (%) Gross Profit Margin (%)
NT$ one hundred million
6.0
80 2.0
140% 1.5
1.5
1.4
4.7 4.8 4.7 4.7 5.0 70 1.1 1.5
120% 1.1 1.0
4.0 4.0 4.1 4.1 60 1.0
100% 4.0 0.5
50 0.3 0.5
44.0 43.2
42.1 41.3 41.4
80% 40.0 39.4 39.5
3.0 40 0.0
60% 93% 92% 94% 86% 82% 79% 84% 85% 30 (0.5)
2.0
40%
20 (1.0)
1.0
20% 10 (1.5)
7% 8% 6% 13% 17% 20% 15% 14%
0% 0% 0% 0% 1% 1% 1% 1% 1% 0.0 0 (2.0)
20Q4 20Q3 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1 20Q4 20Q3 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1
PC, Server Smart Device Operating Expense
Solar Related Gross Profit Margin (%) Operating Profit Margin
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Non-Operating Income and Expense

NT$ Million	2020 Q4	2019 Q4	2020 Year-to-Q4	2019 Year-to-Q4
Interest Income	329	340	1,187	1,347
Other Income	60	69	276	312
Foreign Exchange Gain (Loss) (Realized and Unrealized)	222	(560)	(462)	(1,000)
Other Gains and Losses	(213)	220	5,976	1,232
Finance Cost	(208)	(388)	(1,054)	(1,761)
Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	(4)	(7)	(18)	(24)
Total Non-Operating Income and Expense	186	(326)	5,905	106

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Consolidated Balance Sheets

NT$ Million	2020/12/31	2019/12/31
Cash	32,952	18,953
Current financial assets at fair value through profit or loss	782	3,959
Accounts Receivable	91,811	88,491
Inventories	41,416	37,346
Other Current Assets	6,509	3,419
Non-Current Assets	40,691	40,925
Total Assets	214,161	193,093
Short-term borrowings	31,891	25,167
Accounts payable	74,370	71,343
Other Current Liabilities	34,282	30,536
Non-Current Liabilities	15,727	9,076
Total Liabilities	156,270	136,122
Total Equity	57,891	56,971

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Financial Ratio Analysis

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% 2020/12/31 2019/12/31
Current Ratio 123.4% 119.8%
Debt Ratio 73.0% 70.5%
2020 2019
%
Year-to-Q4 Year-to-Q4
ROA 3.6% 3.1%
ROE 11.4% 8.4%
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Note1: ROA=[Net income (loss)+Interest expense×(1-Tax rate)]/Average total assets

Note2: ROE=Net income (loss)/Average shareholders' equity

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Shareholders' Meeting and Earning Distribution

◎ 2021/03/30 Board of Directors approves 2021 Annual Shareholders' Meeting Date of the shareholders' meeting : at 9:00 a.m., Friday, June 18, 2021 Location for convening the shareholders‘ meeting : No.16, Sec. 4, Jhongshan N. Rd., Shilin District, Taipei City (Chientan Youth Activity Center’s Chin-Kao Memorial Hall)

• 2021/03/30 Board of Directors proposes Year 2020 Earnings Distribution Cash Dividend : NT$ 1.85 per share

NT$	2020	2019	2018
EPS	2.10	1.54	1.81
Cash Dividend	1.85	1.30	1.50
Stock Dividend	-	-	-
Dividend Payout Ratio	88%	84%	83%

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https://www.inventec.com iec@inventec.com

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THANK YOU!

Questions and Answers

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