INVENTEC — Interim / Quarterly Report 2020

Aug 11, 2020

Inventec Corporation and Subsidiaries 2020 Second Quarter Investor Conference

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Consolidated Statements of Comprehensive Income

NT$ Million	2020 Year-to-Q2	2019 Year-to-Q2	YoY %
Sales Revenue	237,437 100.0%	242,667 100.0%	-2%
Gross Profit	10,230 4.3%	10,621 4.4%	-4%
Operating Expense	7,947 3.3%	8,084 3.4%	-2%
Operating Profit	2,283 1.0%	2,537 1.0%	-10%
Non Operating Income and Expenses	4,954 2.0%	814 0.4% 509%
Profit Before Income Tax	7,237 3.0%	3,351 1.4% 116%
Profit for the Period	4,454 1.9%	2,540 1.0% 75%
Total Comprehensive Income	4,479 1.9%	3,191 1.3% 40%
Profit Attributable to
Owners of the Parent	4,691 2.0%	3,061 1.2%
Non-Controlling Interest	(237) -0.1%	(521) -0.2%
Total Comprehensive Income Attributable to
Owners of the Parent	4,728 2.0%	3,708 1.5%
Non-Controlling Interest	(249) -0.1%	(517) -0.2%
EPS (NT$)	1.31	0.85

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Consolidated Statements of Comprehensive Income

NT$ Million	2020 Q2	2020 Q1	QoQ %	2019 Q2	YoY %
Sales Revenue	148,758 100.0%	88,679 100.0%	68%	127,802 100.0%	16%
Gross Profit	6,034 4.1%	4,196 4.7%	44%	5,216 4.1%	16%
Operating Expense	4,004 2.7%	3,943 4.4%	2%	3,948 3.1%	1%
Operating Profit	2,030 1.4%	253 0.3% 702%		1,268 1.0%	60%
Non Operating Income and Expenses	42 0.0%	4,912 5.5% -99%		188 0.1%	-78%
Profit Before Income Tax	2,072 1.4%	5,165 5.8% -60%		1,456 1.1%	42%
Profit for the Period	1,519 1.0%	2,935 3.3% -48%		1,232 1.0%	23%
Total Comprehensive Income	1,515 1.0%	2,964 3.3% -49%		972 0.8%	56%
Profit Attributable to
Owners of the Parent	1,659 1.1%	3,032 3.4%		1,365 1.1%
Non-Controlling Interest	(140) -0.1%	(97) -0.1%		(133) -0.1%
Total Comprehensive Income Attributable to
Owners of the Parent	1,663 1.1%	3,065 3.4%		1,110 0.9%
Non-Controlling Interest	(148) -0.1%	(101) -0.1%		(138) -0.1%
EPS (NT$)	0.46	0.85		0.38

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Consolidated Sales Revenue

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

	20.3 2.5 19.8 18.8 12.7 12.7 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 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million			16.6 30.3 13.8 10.6 13.6 17.0 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 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

~~0%~~ ~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ 6% 13% 17% 20% 15% 14% 94% 86% 82% 79% 84% 85% 4.1 4.7 4.8 4.7 4.1 4.7 0.0 1.0 2.0 3.0 4.0 5.0 6.0 0% 20% 40% 60% 80% 100% 120% 140% 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1 PC, Server Smart Device Solar Related Gross Profit Margin (%) Product Portfolio Rate (%) Gross Profit Margin (%)			40.0 39.4 42.1 41.3 39.5 41.4 1.4 0.3 1.5 1.5 1.0 1.1 (2.0) (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 0 10 20 30 40 50 60 70 80 20Q2 20Q1 19Q4 19Q3 19Q2 19Q1 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	2020 Q2	2019 Q2	2020 Year-to-Q2	2019 Year-to-Q2
Interest Income	291	363	586	621
Other Income	58	58	130	118
Foreign Exchange and Financial Assets (Liabilities) Measurement Gain (Loss) (Note)	(261)	50	(484)	245
Other Gains and Losses	295	147	5,310	712
Finance Cost	(331)	(425)	(577)	(875)
Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	(10)	(5)	(11)	(7)
Total Non-Operating Income and Expense	42	188	4,954	814

Note: These amounts include foreign exchange gain (loss) and net gains (losses) on financial assets (liabilities) measured at fair value through profit or loss(Nonstock).

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Consolidated Balance Sheets

NT$ Million	2020/6/30	2019/12/31	2019/6/30
Cash	33,335	18,953	28,016
Current financial assets at fair value through profit or loss	3,082	3,959	2,882
Accounts Receivable	107,036	88,491	93,103
Inventories	53,638	37,346	45,250
Other Current Assets	7,258	3,419	4,477
Non-Current Assets	40,893	40,925	38,126
Total Assets	245,242	193,093	211,854
Short-term borrowings	42,340	25,167	33,886
Accounts payable	88,036	71,343	78,596
Other Current Liabilities	49,753	30,536	35,174
Non-Current Liabilities	9,165	9,076	8,622
Total Liabilities	189,294	136,122	156,278
Total Equity	55,948	56,971	55,576

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Financial Ratio Analysis

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% 2020/6/30 2019/6/30
Current Ratio 113.4% 117.7%
Debt Ratio 77.2% 73.8%
2020 2019
%
Year-to-Q2 Year-to-Q2
ROA 4.5% 3.1%
ROE 15.8% 9.0%
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Note1: ROA and ROE have been converted into yearly values.

Note2: ROA={[semi-annual net income (loss)+semi-annual interest expense× (1-Tax rate)]/semi-annual average total assets}×2

Note3: ROE=(semi-annual net income (loss)/semi-annual net average shareholders' equity)×2

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

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THANK YOU!

Questions and Answers

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