INVENTEC — Interim / Quarterly Report 2017

Apr 10, 2018

Inventec Corporation and Subsidiaries 2017 Fourth Quarter Investor Conference

==> picture [842 x 162] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

Consolidated Statements of Comprehensive Income

	NT$ Million	2017	2016	YoY %
	Sales Revenue	467,512 100.0%	428,466 100.0%	9%
	Gross Profit	25,039 5.4%	23,957 5.6%	5%
	Operating Expense	16,309 3.5%	15,773 3.7%	3%
	Operating Profit	8,730 1.9%	8,184 1.9%	7%
	Non Operating Income and Expenses	(1,543) -0.4%	(1,094) -0.3%	41%
	Profit Before Income Tax	7,186 1.5%	7,090 1.6%	1%
	Profit for the Period	4,337 0.9%	4,971 1.1%	-13%
	Total Comprehensive Income	3,677 0.8%	2,656 0.6%	38%
	Profit Attributable to
	Owners of the Parent	6,755 1.4%	5,637 1.3%
	Non-Controlling Interest	(2,418) -0.5%	(666) -0.2%
	Total Comprehensive Income Attributable to
	Owners of the Parent	6,092 1.3%	3,334 0.8%
	Non-Controlling Interest	(2,415) -0.5%	(678) -0.2%
	EPS (NT$)	1.88	1.57

2

Consolidated Statements of Comprehensive Income

	NT$ Million	2017 Q4	2017 Q3	QoQ %	2016 Q4	YoY %
	Sales Revenue	132,677 100.0%	123,960 100.0%	7%	113,118 100.0%	17%
	Gross Profit	6,692 5.0%	6,786 5.5%	-1%	6,420 5.7%	4%
	Operating Expense	4,261 3.2%	4,216 3.4%	1%	4,067 3.6%	5%
	Operating Profit	2,431 1.8%	2,570 2.1%	-5%	2,353 2.1%	3%
	Non Operating Income and Expenses	(1,699) -1.2%	692 0.5% -346%		(91) -0.1% 1767%
	Profit Before Income Tax	732 0.6%	3,262 2.6% -78%		2,262 2.0% -68%
	Profit for the Period	46 0.0%	2,208 1.8% -98%		1,626 1.4% -97%
	Total Comprehensive Income	(506) -0.4%	2,666 2.1% -119%		1,328 1.2% -138%
	Profit Attributable to
	Owners of the Parent	1,825 1.3%	2,325 1.9%		1,778 1.5%
	Non-Controlling Interest	(1,779) -1.3%	(117) -0.1%		(152) -0.1%
	Total Comprehensive Income Attributable to
	Owners of the Parent	1,273 0.9%	2,781 2.2%		1,483 1.3%
	Non-Controlling Interest	(1,779) -1.3%	(115) -0.1%		(155) -0.1%
	EPS (NT$)	0.51	0.65		0.49

3

Consolidated Sales Revenue

Solar Related

Smart Device

PC, Server

==> picture [842 x 403] intentionally omitted <==

----- Start of picture text -----

100%
3.0% 3.3% 3.4% 3.0% 2.7% 2.3% 3.4% 4.5%
90% 15.4% 11 8%. 12.4%
19.6% 19.2% 16.8% 18.0% 19.2%
80%
70%
60%
50%
82.3% 84.8% 83.1%
40% 77.4% 77.5% 79.8% 79.0% 78.1%
30%
20%
10%
0%
17Q4 17Q3 17Q2 17Q1 16Q4 16Q3 16Q2 16Q1
----- End of picture text -----

4

Financial Trend Analysis

==> picture [842 x 442] intentionally omitted <==

----- Start of picture text -----

Sales Revenue ratin Profit
Ope g
Unit: NT$ one hundred million Unit: NT$ one hundred million
1,400 1,327 35
1,240
1,200 1,111 1,131 1,117 1,083 30
998 24.3 [25.7 ]
1,000 954 25 23.5
21.1 20.9
18.8 18.6
800 20
16.2
600 15
400 10
200 5
0
0
17Q4 17Q3 17Q2 17Q1 16Q4 16Q3 16Q2 16Q1
17Q4 17Q3 17Q2 17Q1 16Q4 16Q3 16Q2 16Q1
----- End of picture text -----

5

Financial Trend Analysis

==> picture [842 x 442] intentionally omitted <==

----- Start of picture text -----

Gross Profit Margin Operating Profit Margin
% %
7 0. 3 5.
5.9
6.0 5.5 5.4 5.6 5.7 5.5 3.0
5.3
5.0
5.0 2.5
2.1 2.1
1.9 1.9 2.0
4.0 2.0 1.8
1.7
1.6
3.0 1.5
2.0 1.0
1.0 0.5
0 0. 0 0.
17Q4 17Q3 17Q2 17Q1 16Q4 16Q3 16Q2 16Q1 17Q4 17Q3 17Q2 17Q1 16Q4 16Q3 16Q2 16Q1
----- End of picture text -----

6

Non-Operating Income and Expense

	NT$ Million	2017 Q4	2016 Q4	2017	2016
	Other Income	427	164	1,493	939
	Other Gain (Loss)	(1,440)	111	(1,057)	519
	Foreign Exchange Gain (Loss) (Realized and Unrealized)	(109)	(147)	(572)	(1,927)
	Finance Cost	(566)	(215)	(1,369)	(599)
	ShareoftheProfitorLossofAssociates
	and JV Accounted for Using the Equity Method	(11)	(4)	(38)	(26)
	Total Non-Operating Income and Expense	(1,699)	(91)	(1,543)	(1,094)

7

Consolidated Balance Sheets

	NT$ Million	2017/12/31	2016/12/31
	Cash	26,949	25,973
	Current Available-for-Sale Financial Assets	9,224	2,694
	A t R i bl ccoun s ece va e	78 598 ,	71 270 ,
	Inventories	39,548	31,935
	Other Current Assets	14,006	4,921
	Non-Current Assets	40,443	45,580
	Total Assets	208,768	182,373
	Short-term borrowings	36,605	14,580
	Accountspayable	73,214	69,033
	Other Current Liabilities	33,011	31,470
	Non-Current Liabilities	7,007	6,783
	Total Liabilities	149,837	121,866
	Total Equity	58,931	60,507

8

Financial Ratio Analysis

==> picture [842 x 356] intentionally omitted <==

----- Start of picture text -----

% 2017/12/31 2016/12/31
Current Ratio 117.8% 118.9%
Debt Ratio 71.8% 66.8%
% 2017 2016
ROA 2.8% 3.1%
ROE 7.3% 8.1%
----- End of picture text -----

Note1: ROA=[Net income (loss)+Interest expense×(1-Tax rate)]/Average total assets

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

9

Shareholders' Meeting and Earning Distribution

◎ 2018/03/26 Board of Directors approves 2018 Annual Shareholders' Meeting Date of the shareholders' meeting : at 9:00 a.m., Thursday, June 14, 2018 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)

• 2018/03/26 Board of Directors proposes Year 2017 Earnings Distribution Cash Dividend : NT$1.65 per share

	NT$ EPS Cash Dividend Stock Dividend Dividend Payout Ratio	2017 2016 2015 1.88 1.57 1.55 1.65 1.45 1.40 - - - 88% 92% 90%

10

==> picture [842 x 199] intentionally omitted <==

http://www.inventec.com

iec@inventec.com

==> picture [842 x 162] intentionally omitted <==

11

==> picture [842 x 199] intentionally omitted <==

THANK YOU!

Questions and Answers

==> picture [842 x 162] intentionally omitted <==

12