INVENTEC — Interim / Quarterly Report 2019

Mar 24, 2020

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Inventec Corporation and Subsidiaries 2019 Fourth Quarter Investor Conference

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Consolidated Statements of Comprehensive Income

NT$ Million	2019 Year-to-Q4	2018 Year-to-Q4	YoY %
Sales Revenue	500,953 100.0%	506,884 100.0%	-1%
Gross Profit	22,831 4.6%	23,882 4.7%	-4%
Operating Expense	16,428 3.3%	16,391 3.2%	0%
Operating Profit	6,403 1.3%	7,491 1.5%	-15%
Non Operating Income and Expenses	106 0.0%	642 0.1%	-83%
Profit Before Income Tax	6,509 1.3%	8,133 1.6%	-20%
Profit for the Period	4,837 1.0%	5,319 1.0%	-9%
Total Comprehensive Income	4,585 0.9%	4,404 0.9%	4%
Profit Attributable to
Owners of the Parent	5,508 1.1%	6,500 1.2%
Non-Controlling Interest	(671) -0.1%	(1,181) -0.2%
Total Comprehensive Income Attributable to
Owners of the Parent	5,287 1.0%	5,600 1.1%
Non-Controlling Interest	(702) -0.1%	(1,196) -0.2%
EPS (NT$)	1.54	1.81

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Consolidated Statements of Comprehensive Income

NT$ Million	2019 Q4	2019 Q3	QoQ %	2018 Q4	YoY %
Sales Revenue	129,578 100.0%	128,708 100.0%	1%	134,102 100.0%	-3%
Gross Profit	6,194 4.8%	6,016 4.7%	3%	5,509 4.1%	12%
Operating Expense	4,211 3.3%	4,133 3.2%	2%	4,253 3.2%	-1%
Operating Profit	1,983 1.5%	1,883 1.5%	5%	1,256 0.9%	58%
Non Operating Income and Expenses	(326) -0.3%	(381) -0.3%	-14%	168 0.1% -294%
Profit Before Income Tax	1,657 1.3%	1,502 1.2%	10%	1,424 1.0% 16%
Profit for the Period	1,292 1.0%	1,005 0.8%	29%	1,058 0.8% 22%
Total Comprehensive Income	689 0.5%	706 0.5%	-2%	1,203 0.9% -43%
Profit Attributable to
Owners of the Parent	1,382 1.1%	1,064 0.8%		1,420 1.1%
Non-Controlling Interest	(90) -0.1%	(59) 0.0%		(362) -0.3%
Total Comprehensive Income Attributable to
Owners of the Parent	803 0.6%	777 0.6%		1,564 1.2%
Non-Controlling Interest	(114) -0.1%	(71) -0.1%		(361) -0.3%
EPS (NT$)	0.39	0.30		0.39

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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
1,400 1,296 1,287 1,278 1% 1,269
1% 1% 1% 1,149 1% 18% 2% 1,048
1,200 18%
17% 15%
20% 1% 15%
14%
2%
1,000
16%
800
600
81%
82% 79% 84% 81% 83%
85%
400 82%
200
0
19Q4 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1
Solar Related Smart Device PC, Server Sales Revenue
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Financial Trend Analysis

	19.8 18.8 12.7 12.7 12.6 25.9 22.2 14.3 1,296 1,287 1,278 1,149 1,3411,411 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 19Q4 19Q3 19Q2 19Q1 18Q4 18Q3 18Q2 18Q1 Operating Income Sales Revenue Operating income NT$ one hundred million Sales revenue NT$ one hundred million			13.8 10.6 13.6 17.0 14.215.7 22.4 12.7 (3.3) (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 19Q4 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

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Financial Trend Analysis

~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ ~~1%~~ 17% 20% 15% 14% 18% 82% 79% 84% 85% 81% 4.8 4.7 4.1 4.7 4.1 0% 20% 40% 60% 80% 100% 120% 140% 19Q4 19Q3 19Q2 19Q1 18Q4 PC, Server Solar Related Product Portfolio Rate (%)	~~1%~~ ~~2%~~ ~~2%~~ 18% 15% 16% 81% 83% 82% 4.7 5.0 5.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 18Q3 18Q2 18Q1 Smart Device Gross Profit Margin (%) Gross Profit Margin (%)			42.1 41.3 39.5 41.4 42.5 41.1 41.4 38.9 1.5 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 19Q4 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 Q4	2018 Q4	2019 Year-to-Q4	2018 Year-to-Q4
Other Income (Interest income)	340	199	1,347	1,162
Other Gain (Loss)	289	278	1,544	1,452
Foreign Exchange Gain (Loss) (Realized and Unrealized)	(560)	92	(1,000)	(193)
Finance Cost (Interest expenses)	(388)	(405)	(1,761)	(1,768)
Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	(7)	4	(24)	(11)
Total Non-Operating Income and Expense	(326)	168	106	642

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Consolidated Balance Sheets

NT$ Million	2019/12/31	2018/12/31
Cash	18,953	25,063
Current financial assets at fair value through profit or loss	3,959	2,467
Accounts Receivable	88,491	92,235
Inventories	37,346	42,939
Other Current Assets	3,419	5,201
Non-Current Assets	40,925	37,899
Total Assets	193,093	205,804
Short-term borrowings	25,167	31,301
Accounts payable	71,343	76,454
Other Current Liabilities	30,536	32,937
Non-Current Liabilities	9,076	7,390
Total Liabilities	136,122	148,082
Total Equity	56,971	57,722

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Financial Ratio Analysis

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% 2019/12/31 2018/12/31
Current Ratio 119.8% 119.3%
Debt Ratio 70.5% 72.0%
2019 2018
%
Year-to-Q4 Year-to-Q4
ROA 3.1% 3.3%
ROE 8.4% 9.1%
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Note1: ROA=[Net income (loss)+Interest expense×(1-Tax rate)]/Average total assets

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

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Shareholders' Meeting and Earning Distribution

◎ 2020/03/24 Board of Directors approves 2020 Annual Shareholders' Meeting Date of the shareholders' meeting : at 9:00 a.m., Friday, June 12, 2020 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)

◎ 2020/03/24 Board of Directors proposes Year 2019 Earnings Distribution Cash Dividend : NT$ 1.3 per share

NT$	2019	2018	2017
EPS	1.54	1.81	1.88
Cash Dividend	1.30	1.50	1.65
Stock Dividend	-	-	-
Dividend Payout Ratio	84%	83%	88%

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

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THANK YOU!

Questions and Answers

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