INVENTEC — Interim / Quarterly Report 2019

Nov 19, 2019

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Inventec Corporation and Subsidiaries 2019 Third Quarter Investor Conference

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Consolidated Statements of Comprehensive Income

NT$ Million	2019 Ye a r-to-Q 3	2018 Ye a r-to-Q 3	YoY %
S a le s Re ve nue	371,375 100.0%	372,782 100.0%	0%
G ros s P rofit	16,637 4.5%	18,373 4.9%	-9%
O pe ra ting Expe ns e	12,217 3.3%	12,138 3.2%	1%
O pe ra ting P rofit	4,420 1.2%	6,235 1.7%	-29%
Non Ope ra ting Income a nd E xpe ns e s	433 0.1%	475 0.1%	-9%
P rofit Be fore Income Ta x	4,853 1.3%	6,710 1.8%	-28%
P rofit for the P e riod	3,545 1.0%	4,261 1.1%	-17%
Tota l Compre he ns ive Income	3,896 1.0%	3,202 0.9%	22%
P rofit Attributa ble to
Owne rs of the P a re nt	4,125 1.2%	5,080 1.3%
Non-C ontrolling Inte re s t	(580) -0.2%	(819) -0.2%
Tota l C ompre he ns ive Income Attributa ble to
Owne rs of the P a re nt	4,484 1.2%	4,036 1.1%
Non-C ontrolling Inte re s t	(588) -0.2%	(834) -0.2%
EP S (NT$)	1.15	1.42

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Consolidated Statements of Comprehensive Income

NT$ Million	2019 Q3	2019 Q2	QoQ %	2018 Q3	YoY %
S a le s Re ve nue	128,708 100.0%	127,802 100.0%	1%	141,073 100.0%	-9%
Gros s P rofit	6,016 4.7%	5,216 4.1%	15%	6,697 4.7%	-10%
Ope ra ting Expe ns e	4,133 3.2%	3,948 3.1%	5%	4,107 2.9%	1%
Ope ra ting P rofit	1,883 1.5%	1,268 1.0%	49%	2,590 1.8%	-27%
Non Ope ra ting Income a nd Expe ns e s	(381) -0.3%	188 0.1% -303%		(503) -0.3%	-24%
P rofit Be fore Income Ta x	1,502 1.2%	1,456 1.1% 3%		2,087 1.5%	-28%
P rofit for the P e riod	1,005 0.8%	1,232 1.0% -18%		1,261 0.9%	-20%
Tota l Compre he ns ive Income	706 0.5%	972 0.8% -27%		147 0.1% 380%
P rofit Attributa ble to
Owne rs of the P a re nt	1,064 0.8%	1,365 1.1%		1,572 1.1%
Non-Controlling Inte re s t	(59) 0.0%	(133) -0.1%		(311) -0.2%
Tota l Compre he ns ive Income Attributa ble to
Owne rs of the P a re nt	777 0.6%	1,110 0.9%		473 0.3%
Non-Controlling Inte re s t	(71) -0.1%	(138) -0.1%		(326) -0.2%
EP S (NT$)	0.30	0.38		0.44

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Consolidated Sales Revenue

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(Consolidated Sales Revenue)
Unit: NT$ one hundred million
1,800
1,600
1,411
1,341
1,287
1,278 1,269
1,400 1%
1%
1% 1% 1,149 18% 2% 1,048
1,200 18%
15%
20% 1% 15%
14%
2%
1,000
16%
800
600
81%
79% 84% 81% 83%
85%
400 82%
200
0
19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1
Solar Related Smart Device PC, Server Sales Revenue
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Financial Trend Analysis

	18.8 12.7 12.7 12.6 25.9 22.2 14.3 1,287 1,278 1,149 1,341 1,411 1,269 1,048 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 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million	18.8 12.7 12.7 12.6 25.9 22.2 14.3 1,287 1,278 1,149 1,341 1,411 1,269 1,048 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 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million	18.8 12.7 12.7 12.6 25.9 22.2 14.3 1,287 1,278 1,149 1,341 1,411 1,269 1,048 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 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million			10.6 13.6 17.0 14.2 15.7 22.4 12.7 (3.8) 1.9 6.3 1.7 (5.0) 6.8 3.0 (50) (40) (30) (20) (10) 0 10 20 0 5 10 15 20 25 30 35 40 45 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 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	10.6 13.6 17.0 14.2 15.7 22.4 12.7 (3.8) 1.9 6.3 1.7 (5.0) 6.8 3.0 (50) (40) (30) (20) (10) 0 10 20 0 5 10 15 20 25 30 35 40 45 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 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
		18.8 12.7 12.7 12.6 25.9 22.2 14.3 1,287 1,278 1,149 1,341 1,411 1,269 1,048	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	10.6 13.6 17.0 14.2 15.7 22.4 12.7 (3.8) 1.9 6.3 1.7 (5.0) 6.8 3.0
		19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue

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Financial Trend Analysis

~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ ~~2%~~ ~~2%~~ 20% 15% 14% 18% 18% 15% 16% 79% 84% 85% 81% 81% 83% 82% 4.7 4.1 4.7 4.1 4.7 5.0 5.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 0% 20% 40% 60% 80% 100% 120% 140% 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 PC, Server Smart Device Solar Related Gross Profit Margin (%) Product Portfolio Rate (%) Gross Profit Margin (%)			41.3 39.5 41.4 42.5 41.1 41.4 38.9 1.5 1.0 1.1 0.9 1.8 1.7 1.4 (2.0) (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 0 10 20 30 40 50 60 70 80 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Expense Operating Profit Margin Operating Profit Margin(%) Operating Expense NT$ one hundred million

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Non-Operating Income and Expense

NT$ Million	2019 Q3	2018 Q3	2019 Year-to-Q3	2018 Year-to-Q3
Other Income (Interest income)	386	279	1,007	963
Other Gain (Loss)	356	300	1,256	1,175
Foreign Exchange Gain (Loss) (Realized and Unrealized)	(615)	(611)	(440)	(285)
Finance Cost (Interest expenses)	(498)	(471)	(1,373)	(1,363)
Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	(10)	0	(17)	(15)
Tota l Non-Ope ra ting Income a nd Expe ns e	(381)	(503)	433	475

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Consolidated Balance Sheets

NT$ Million	2019/9/30	2018/12/31	2018/9/30
Cash	26,331	25,063	19,927
Current financial assets at fair value through profit or loss	2,751	2,467	2,493
Accounts Receivable	89,230	92,235	95,732
Inventories	46,519	42,939	54,345
Other Current Assets	3,540	5,201	4,439
Non-Current Assets	37,609	37,899	38,244
Tota l As s e ts	205,980	205,804	215,180
Short-term borrowings	33,782	31,301	30,020
Accounts payable	77,008	76,454	83,919
Other Current Liabilities	30,384	32,937	34,817
Non-Current Liabilities	8,525	7,390	9,905
Tota l Lia bilitie s	149,699	148,082	158,661
Tota l Equity	56,281	57,722	56,519

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Financial Ratio Anal sis y

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% 2019/9/30 2018/9/30
Cu rre n t Ra tio 119.3% 118.9%
De b t Ra tio 72.7% 73.7%
2019 2018
%
Year-to-Q3 Year-to-Q3
RO A
3.0% 3.4%
RO E
8.3% 9.8%
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Note 1: R O A a nd R O E ha ve be e n conve rte d into ye a rly va lue s .

Note 2: R O A={[Ye a r-to-Q 3 a cc umula te d ne t income (los s )+Ye a r-to-Q 3 a cc um ula te d inte re s t e xpe ns e × (1-Ta x ra te )]/Ye a r-to-Q 3 a cc umula te d a ve ra ge tota l a s s e ts }× (4/3)

Note 3: R O E =(Ye a r-to-Q 3 a cc umula te d ne t income (los s )/Ye a r-to-Q 3 a cc um ula te d ne t a ve ra ge s ha re holde rs ' e quity)× (4/3)

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

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Questions and Answers

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