INVENTEC — Interim / Quarterly Report 2019

Aug 13, 2019

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Inventec Corporation and Subsidiaries 2019 Second Quarter Investor Conference

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Consolidated Statements of Comprehensive Income

NT$ Million	2019 Ye a r-to-Q 2	2018 Ye a r-to-Q 2	YoY %
S a le s Re ve nue	242,667 100.0%	231,709 100.0%	5%
G ros s P rofit	10,621 4.4%	11,676 5.0%	-9%
O pe ra ting Expe ns e	8,084 3.4%	8,031 3.4%	1%
O pe ra ting P rofit	2,537 1.0%	3,645 1.6%	-30%
Non Ope ra ting Income a nd E xpe ns e s	814 0.4%	978 0.4%	-17%
P rofit Be fore Income Ta x	3,351 1.4%	4,623 2.0%	-28%
P rofit for the P e riod	2,540 1.0%	3,000 1.3%	-15%
Tota l Compre he ns ive Income	3,191 1.3%	3,054 1.3%	4%
P rofit Attributa ble to
Owne rs of the P a re nt	3,061 1.2%	3,508 1.5%
Non-C ontrolling Inte re s t	(521) -0.2%	(508) -0.2%
Tota l C ompre he ns ive Income Attributa ble to
Owne rs of the P a re nt	3,708 1.5%	3,562 1.5%
Non-C ontrolling Inte re s t	(517) -0.2%	(508) -0.2%
EP S (NT$)	0.85	0.98

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Consolidated Statements of Comprehensive Income

NT$ Million	2019 Q2	2019 Q1	QoQ %	2018 Q2	YoY %
S a le s Re ve nue	127,802 100.0%	114,865 100.0%	11%	126,900 100.0%	1%
Gros s P rofit	5,216 4.1%	5,404 4.7%	-3%	6,356 5.0%	-18%
Ope ra ting Expe ns e	3,948 3.1%	4,135 3.6%	-5%	4,136 3.3%	-5%
Ope ra ting P rofit	1,268 1.0%	1,269 1.1%	0%	2,220 1.7%	-43%
Non Ope ra ting Income a nd Expe ns e s	188 0.1%	626 0.5%	-70%	681 0.6%	-72%
P rofit Be fore Income Ta x	1,456 1.1%	1,895 1.6%	-23%	2,901 2.3%	-50%
P rofit for the P e riod	1,232 1.0%	1,308 1.1%	-6%	2,000 1.6%	-38%
Tota l Compre he ns ive Income	972 0.8%	2,218 1.9%	-56%	2,058 1.6%	-53%
P rofit Attributa ble to
Owne rs of the P a re nt	1,365 1.1%	1,697 1.4%		2,237 1.8%
Non-Controlling Inte re s t	(133) -0.1%	(389) -0.3%		(237) -0.2%
Tota l Compre he ns ive Income Attributa ble to
Owne rs of the P a re nt	1,110 0.9%	2,598 2.2%		2,296 1.8%
Non-Controlling Inte re s t	(138) -0.1%	(380) -0.3%		(238) -0.2%
EP S (NT$)	0.38	0.47		0.62

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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
1,278
1,400 1% 1,269
1,149 1%
1% 18% 2%
1,200 18% 1,048
15%
1% 15%
14%
2%
1,000
16%
800
600
81%
84% 81% 83%
85%
400 82%
200
0
19Q2 19Q1 18Q4 18Q3 18Q2 18Q1
Solar Related Smart Device PC, Server Sales Revenue
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Financial Trend Analysis

	12.7 12.7 12.6 25.9 22.2 14.3 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 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million	12.7 12.7 12.6 25.9 22.2 14.3 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 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million	12.7 12.7 12.6 25.9 22.2 14.3 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 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million			13.6 17.0 14.2 15.7 22.4 12.7 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 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	13.6 17.0 14.2 15.7 22.4 12.7 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 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
		12.7 12.7 12.6 25.9 22.2 14.3 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	13.6 17.0 14.2 15.7 22.4 12.7 1.9 6.3 1.7 (5.0) 6.8 3.0
		19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue

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Financial Trend Analysis

~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ ~~2%~~ ~~2%~~ 15% 14% 18% 18% 15% 16% 84% 85% 81% 81% 83% 82% 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% 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 PC, Server Smart Device Solar Related Gross Profit Margin (%) Product Portfolio Rate (%) Gross Profit Margin (%)			39.5 41.4 42.5 41.1 41.4 38.9 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 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 Q2	2018 Q2	2019 Year-to-Q2	2018 Year-to-Q2
Othe r Income (Interest income)	363	320	621	684
Othe r Ga in (Loss)	298	554	900	876
Foreign Exchange Gain (Loss) (Realized and Unrealized)	(43)	237	175	325
Finance Cost (Interest expenses)	(425)	(425)	(875)	(892)
Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	(5)	(5)	(7)	(15)
Tota l Non-Ope ra ting Income a nd Expe ns e	188	681	814	978

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Consolidated Balance Sheets

NT$ Million	2019/6/30	2018/12/31	2018/6/30
Cash	28,016	25,063	24,011
Current financial assets at fair value through profit or loss	2,882	2,467	8,033
Accounts Receivable	93,103	92,235	89,873
Inventories	45,250	42,939	50,054
Other Current Assets	4,477	5,201	8,558
Non-Current Assets	38,126	37,899	38,713
Tota l As s e ts	211,854	205,804	219,242
Short-term borrowings	33,886	31,301	33,323
Accounts payable	78,596	76,454	76,928
Other Current Liabilities	35,174	32,937	39,672
Non-Current Liabilities	8,622	7,390	12,947
Tota l Lia bilitie s	156,278	148,082	162,870
Tota l Equity	55,576	57,722	56,372

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Financial Ratio Analysis

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% 2019/6/30 2018/6/30
Cu rre n t Ra tio
117.7% 120.4%
De b t Ra tio 73.8% 74.3%
2019 2018
%
Year-to-Q2 Year-to-Q2
RO A
3.1% 3.5%
RO E
9.0% 10.4%
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Note 1: R O A a nd R O E ha ve be e n c onve rte d into ye a rly va lue s .

Note 2: R O A={[s e m i-a nnua l ne t inc om e (los s )+s e m i-a nnua l inte re s t e xpe ns e × (1-Ta x ra te )]/s e m i-a nnua l a ve ra ge tota l a s s e ts }× 2

Note 3: R O E =(s e m i-a nnua l ne t inc ome (los s )/s e m i-a nnua l ne t a ve ra ge s ha re holde rs ' e quity)× 2

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

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Questions and Answers

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