INVENTEC — Interim / Quarterly Report 2018

Nov 12, 2018

Inventec Corporation and Subsidiaries 2018 Third Quarter Investor Conference

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自主創新 綠能環保 雲端應用 移動生活 新興市場
Rapid Innovation Sustainable Energy Cloud Solutions Mobile Lifestyle Emerging Markets
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Consolidated Statements of Comprehensive Income

	NT$ Million	2018 Year-to-Q3	2017 Year-to-Q3	YoY %
	Sales Revenue	372,782 100.0%	334,835 100.0%	11%
	Gross Profit	18,373 4.9%	18,347 5.5%	0%
	Operating Expense	12,138 3.2%	12,048 3.6%	1%
	Operating Profit	6,235 1.7%	6,299 1.9%	-1%
	Non Operating Income and Expenses	475 0.1%	156 0.0% 204%
	Profit Before Income Tax	6,710 1.8%	6,454 1.9% 4%
	Profit for the Period	4,261 1.1%	4,291 1.3% -1%
	Total Comprehensive Income	3,202 0.9%	4,183 1.2% -23%
	Profit Attributable to
	Owners of the Parent	5,080 1.3%	4,929 1.5%
	Non-ControllingInterest	(819) -02%	(638) -02%
		.	.
	Total Comprehensive Income Attributable to
	Owners of the Parent	4,036 1.1%	4,818 1.4%
	Non-Controlling Interest	(834) -0.2%	(635) -0.2%
	EPS (NT$)	1.42	1.37

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Consolidated Statements of Comprehensive Income

	NT$ Million	2018 Q3	2018 Q2	QoQ %	2017 Q3	YoY %
	Sales Revenue	141,073 100.0%	126,900 100.0%	11%	123,960 100.0%	14%
	Gross Profit	6,697 4.7%	6,356 5.0%	5%	6,786 5.5%	-1%
	Operating Expense	4,107 2.9%	4,136 3.3%	-1%	4,216 3.4%	-3%
	Operating Profit	2,590 1.8%	2,220 1.7%	17%	2,570 2.1%	1%
	Non Operating Income and Expenses	(503) -0.3%	681 0.6% -174%		692 0.5% -173%
	Profit Before Income Tax	2,087 1.5%	2,901 2.3% -28%		3,262 2.6% -36%
	Profit for the Period	1,261 0.9%	2,000 1.6% -37%		2,208 1.8% -43%
	Total Comprehensive Income	147 0.1%	2,058 1.6% -93%		2,666 2.1% -94%
	Profit Attributable to
	Owners of the Parent	1,572 1.1%	2,237 1.8%		2,325 1.9%
	Non-Controlling Interest	(311) -0.2%	(237) -0.2%		(117) -0.1%
	Total Comprehensive Income Attributable to
	Owners of the Parent	473 0.3%	2,296 1.8%		2,781 2.2%
	Non-Controlling Interest	(326) -0.2%	(238) -0.2%		(115) -0.1%
	EPS (NT$)	0.44	0.62		0.65

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Consolidated Sales Revenue

(Consolidated Sales Revenue) Unit: NT$ one hundred million

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1,600
1,411
1,327
1,269
1,240
1,400 1%
3% 1,131 1,117
18% 2% 1,111 1,083
1,200 1,048 3% 998
14% 20%
19% 3% 3% 2% 3% 954
2%
1,000 17% 3% 19% 15% 12%
16% 5%
18%
12%
800
600
81%
84% 77%
78%
82% 80% 78% 83% 85%
400 79% 83%
200
0
18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 16Q4 16Q3 16Q2 16Q1
Solar Related Smart Device PC, Server Sales Revenue
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Financial Trend Analysis

		1 411 1,600 45 Operating income NT$ one hundred million Sales revenue NT$ one hundred million 25.9 22.2 14.3 24.3 25.7 21.1 16.2 , 1,269 1,048 1,327 1,240 1,111 998 200 400 600 800 1,000 1,200 1,400 5 10 15 20 25 30 35 40 0 0 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Operating Income Sales Revenue	1 411 1,600 45 Operating income NT$ one hundred million Sales revenue NT$ one hundred million 25.9 22.2 14.3 24.3 25.7 21.1 16.2 , 1,269 1,048 1,327 1,240 1,111 998 200 400 600 800 1,000 1,200 1,400 5 10 15 20 25 30 35 40 0 0 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Operating Income Sales Revenue	1 411 1,600 45 Operating income NT$ one hundred million Sales revenue NT$ one hundred million 25.9 22.2 14.3 24.3 25.7 21.1 16.2 , 1,269 1,048 1,327 1,240 1,111 998 200 400 600 800 1,000 1,200 1,400 5 10 15 20 25 30 35 40 0 0 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Operating Income Sales Revenue			6.8 3.0 6.9 4.6 10 45 Profit Attributable to Owners of the Parent NT$ one hundred million Non-operating income and expenses NT$ one hundred million 15.7 22.4 12.7 18.3 23.3 19.3 6.8 (5.0) (17.0) (9.9) (40) (30) (20) (10) 0 5 10 15 20 25 30 35 40 (50) 0 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Profit Attributable to Owners of the Parent Non-Operating Income and Expense	6.8 3.0 6.9 4.6 10 45 Profit Attributable to Owners of the Parent NT$ one hundred million Non-operating income and expenses NT$ one hundred million 15.7 22.4 12.7 18.3 23.3 19.3 6.8 (5.0) (17.0) (9.9) (40) (30) (20) (10) 0 5 10 15 20 25 30 35 40 (50) 0 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Profit Attributable to Owners of the Parent Non-Operating Income and Expense
			1 411 25.9 22.2 14.3 24.3 25.7 21.1 16.2 , 1,269 1,048 1,327 1,240 1,111 998	1,600 200 400 600 800 1,000 1,200 1,400 0			45 5 10 15 20 25 30 35 40 0	6.8 3.0 . 4.6 15.7 22.4 12.7 18.3 23.3 19.3 6.8 (5.0) (17.0) (9.9)
			18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Operating Income Sales Revenue

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Financial Trend Analysis

5 1 5.0 5.5 5.4 5.6 6.0 120% Product Portfolio Rate (%) Gross Profit Margin(%) 81% 84% 82% 77% 78% 80% 79% 4.7 5.0 . 1.0 2.0 3.0 4.0 5.0 20% 40% 60% 80% 100% ~~1%~~ ~~2%~~ ~~2%~~ ~~3%~~ ~~3%~~ ~~3%~~ ~~3%~~ 18% 14% 16% 20% 19% 17% 18% 0.0 0% 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 PC, Server Smart Device Solar Related Gross Profit Margin (%)	5 1 5.0 5.5 5.4 5.6 6.0 120% Product Portfolio Rate (%) Gross Profit Margin(%) 81% 84% 82% 77% 78% 80% 79% 4.7 5.0 . 1.0 2.0 3.0 4.0 5.0 20% 40% 60% 80% 100% ~~1%~~ ~~2%~~ ~~2%~~ ~~3%~~ ~~3%~~ ~~3%~~ ~~3%~~ 18% 14% 16% 20% 19% 17% 18% 0.0 0% 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 PC, Server Smart Device Solar Related Gross Profit Margin (%)	5 1 5.0 5.5 5.4 5.6 6.0 120% Product Portfolio Rate (%) Gross Profit Margin(%) 81% 84% 82% 77% 78% 80% 79% 4.7 5.0 . 1.0 2.0 3.0 4.0 5.0 20% 40% 60% 80% 100% ~~1%~~ ~~2%~~ ~~2%~~ ~~3%~~ ~~3%~~ ~~3%~~ ~~3%~~ 18% 14% 16% 20% 19% 17% 18% 0.0 0% 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 PC, Server Smart Device Solar Related Gross Profit Margin (%)			3 9 4.5 3.5 Operating Profit Margin (%) Operating Expense Ratio (%) 1.8 1.7 1.4 1.8 2.1 1.9 1.6 2.9 3.3 3.7 3.2 3.4 3.5 . 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0 5 1.0 1.5 2.0 2.5 3.0 0.0 0.5 0.0 . 18Q3 18Q2 18Q1 17Q4 17Q3 17Q2 17Q1 Operating Profit Margin Operating Expense Ratio
					3.5 (%) 0 5 1.0 1.5 2.0 2.5 3.0 0.0 .
		PC, Server Smart Device
		Solar Related Gross Profit Margin (%)

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Non-Operating Income and Expense

	NT$ Million	2018 Q3	2017 Q3	2018 Year-to-Q3	2017 Year-to-Q3
	Other Income	279	471	963	1,066
	(I t t i ) n eres ncome
	Other Gain (Loss)	300	294	1,175	384
	Foreign Exchange Gain (Loss) (Realized and Unrealized)	(611)	291	(285)	(464)
	Finance Cost (Interest expenses)	(471)	(361)	(1,363)	(803)
	Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	0	(3)	(15)	(27)
	Total Non-Operating Income and Expense	(503)	692	475	156

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Consolidated Balance Sheets

	NT$ Million	2018/9/30	2017/12/31	2017/9/30
	Cash	19,927	26,949	19,574
	Current financial assets at fair value through profit or loss	2,493	125	140
	Current available-for-sale financial assets, net	0	9,224	10,646
	Accounts Receivable	95,732	78,598	86,091
	Inventories	54,345	39,548	47,550
	Other Current Assets	4,439	13,881	16,294
	Non-Current Assets	38,244	40,443	44,556
	Total Assets	215,180	208,768	224,851
	Short-term borrowings	30,020	36,605	43,753
	Accountspayable	83919	73214	80309
		,	,	,
	Other Current Liabilities	34,817	33,011	31,685
	Non-Current Liabilities	9,905	7,007	9,636
	Total Liabilities	158,661	149,837	165,383
	Total Equity	56,519	58,931	59,468

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Financial Ratio Anal sis y

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% 2018/9/30 2017/9/30
Current Ratio 118.9% 115.8%
Debt Ratio 73.7% 73.6%
2018 2017
%
Year-to-Q3 Year-to-Q3
ROA 3.4% 3.2%
ROE 9.8% 9.5%
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Note1: ROA and ROE have been converted into yearly values.

Note2: ROA={[Year-to-Q3 accumulated net income (loss)+Year-to-Q3 accumulated interest expense×(1-Tax rate)]/Year-to-Q3 accumulated average total assets}×(4/3)

Note3: ROE=(Year-to-Q3 accumulated net income (loss)/Year-to-Q3 accumulated net average shareholders' equity)×(4/3)

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http://www.inventec.com

iec@inventec.com

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THANK YOU!

Questions and Answers

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