INX — Interim / Quarterly Report 2015

Oct 29, 2015

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3Q 2015 Earning Results

October 2015

Innolux Corporation’s statements of its current expectations and estimates are forward-looking statements subject to significant known and unknown risks and uncertainties and actual results may differ materially from those contained or implied in the forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore one should not place undue reliance on them. Except as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information , future events , or otherwise .

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Selected Items from Statements of Comprehensive Income

(NT$ million) Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income N t N ti I (E ) e on-opera ng ncome xp. Income before Tax Net Income Net Income-Parent Basic EPS(NT$)(1)(2) EBITDA(3)	3Q 2015 88,756_100.0% 77,981_87.9% 10,776_12.1% 6,069 _6.8% 4,706 5.3% (625) 0 7% - . 4,081 4.6% 3,482 3.9% 3,482 3.9% 0.35 17,846_20.1%_	2Q 2015 93,755_100.0% 78,173_83.4% 15,583_16.6% 6,190 _6.6% 9,393_10.0% (2 047) 2 2% , - . 7,345 _7.8% 5,406 5.8% 5,406 5.8% 0.54 23,123_24.7%_	QoQ % -5.3% -0.2% -30.8% -1.9% -49.9% - -44.4% -35.6% -35.6% -22.8%	3Q 2014
				113,092_100.0% 98,582_87.2% 14,510_12.8% 5,500 _4.9% 9,010 8.0% (1 269) 1 1% , - . 7,741 6.8% 7,360 6.5% 7,359 6.5% 0.77
				23,585_20.9%_

Notes:

1. Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares

2. Capital Stock (common): NT$99.54billion as of September 30, 2015

3. EBITDA = Operating Income + Depreciation & Amortization

4. All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

5. Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting.

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Combined Balance Sheet Highlights
(NT$ million) 2015.9.30	2015.6.30	2014.9.30
Cash & Short Term Investment 41,188	40,724	32,836
Inventory 35,008	33,221	38,390
Total Assets 396,067	401,083	457,268
Short Term Debt(1) 16,352	16,355	73,692
Long Term Debt 43,606	51,790	53,664
Shareholders’ Equity(2) 241,125	236,085	213,959
Current Ratio 128%	125%	87%
Debt to Equity 25%	29%	60%
Net Debt to Equity 8%	12%	44%
Depreciation & Amortization 13,140	13,731	14,576
Capital Expenditure 4,257	3,783	5,749

Notes:

1. Short term debt = (short-term bank loan + current portion of long term loan)

2. Capital Stock (common): NT$99.54billion; Book value per common stock: NT$ 24.22 as of September 30, 2015

3. Net debt to shareholders’ equity = (short term debt + long term debt – cash & short term investment) / shareholders’ equity

4. All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

5. Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting .

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Area Shipments and TFT LCD ASP Trends
Shipment
TFT Panel TFT Panel ASP (US$ / m [2] )
(‘000 m [2] )
12,000
487
464 459 457 469 450
417
390
8,272
7,983 8,040
8,000
7,238
7,014 7,091
6,793
6 396,
4,000
0
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
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Notes:

1. Exchange rate based on the prevailing market rate at the end of each quarter

2. All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

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TFT Panel Revenue (NT$ Billon)

Shipment (Million Units) Area Shipment (‘000 m[2] )

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612.8
581.2
534.3
517.4 517.7
471.1
104 442.4 448.2
87
78 78 77
65
62
56
25.1
22.7 22.7
21.2
19.3 18.7 18.4
16.5
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
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Notes: All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

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100% 80% 60% 40%

20%

TV

Desktop

Mobile PC

Mobile & CP

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0%
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22% 23% 23% 18% 18% 19% 20% 23%
17% 17% 15% 13%
15% 16% 16% 14%
10%
12%
15% 14% 10%
17% 15%
17%
57%
54% 53%
50% 51%
46% 44% 46%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
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Notes:

1. Mobile PC includes Notebook and Tablet panels.

2. Mobile & CP includes panels for mobile phone, automobile, industrial, medical, etc.

3. All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

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40”+ 30 to <40” 20 to <30” 10 to <20”

<10”

% 80% 100% 0% 20% 40% 60
	24%			22%			23%			19%			20%			19%			18%			21%
	20%			24%			22%			21%			21%			19%			17%			18%
	19%									~~4%~~ 19%			~~3%~~ 18%			~~2%~~ 21%			~~2%~~ 20%			17%
				18%			18%
																						~~1%~~
	12%			7%			5%												~~43%~~			~~43%~~
	25%			29%			32%			37%			~~38%~~			~~39%~~
	4Q13			1Q14			2Q14			3Q14			4Q14			1Q15			2Q15			3Q15

Notes: All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

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Q&A