INX — Interim / Quarterly Report 2015

Jul 30, 2015

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2Q 2015 Earning Results

July 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 mp i li e d i n th e orwar f d - oo l ki ng s a emen s. t t t Th ese orwar f d - oo l ki ng 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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(NT$ million) 2Q 2015 1Q 2015 QoQ % 2Q 2014 Net Sales 93,755_100.0% 100,158_100.0% -6.4% 111,064_100.0% Cost of Goods Sold 78,173_83.4% 82,404_82.3% -5.1% 99,470 _89.6% G P fit 15 583 16 6% 17 754 17 7% 12 2% 11 595 10 4% 2Q 2015 Combined Income Statement - QoQ ross ro , . , . - . , . Operating Expenses 6,190 6.6% 6,523 6.5% -5.1% 5,460 4.9% Operating Income 9,393_10.0% 11,231_11.2% -16.4% 6,134 5.5% Net Non-operating Income (Exp.) (2,047) -2.2% (1,170)-1.2% - (2,723) -2.5% Income before Tax 7,345 7.8% 10,061_10.0% -27.0% 3,411 _3.1% Net Income 5,406 5.8% 8,651 8.6% -37.5% 3,010 2.7% Net Income-Parent 5,406 5.8% 8,651 8.6% -37.5% 3,011 2.7% Basic EPS(NT$)(1)(2) 0.54 0.87 0.33 EBITDA(3) 23,123_24.7% 25,381_25.3% -8.9% 21,559 19.4%

Notes:

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

2. Capital Stock (common): NT$99.54billion as of June 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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(NT$ million) 2015.6.30 Cash & Short Term Investment 40,724 Inventory 33,221 Total Assets 401 083 2Q 2015 Combined Balance Sheet , Short Term Debt(1) 16,355 Long Term Debt(2) 51,790 Shareholders’ Equity(3) 236,085 Current Ratio 125% Debt to Equity 29% Net Debt to Equity 12% Depreciation & Amortization 13 731 , Capital Expenditure 3,783	2015.3.31 2014.6.30 39,111 23,440 33,302 45,738 422 985 463 078 Highlights , , 27,716 84,972 51,765 63,907 234,970 195,085 114% 79% 34% 76% 17% 64% 14 150 15 425 , , 6,609 4,668

Notes:

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

2. Long term debt = (long-term bank loan + corporate bonds)

3. Capital Stock (common): NT$99.54billion; Book value per common stock: NT$ 23.72 as of June 30, 2015

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

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

6. 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
511
487
464 459 457 469 450
417
8,272
7,983 8,040
8,000
7,238
7,014
6,793
6,363 6,396
4,000
0
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
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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
580 0. 581 2.
534.3
517.4
471.1
104 442.4 448.2
100
87
78 78 77
62
56
25.1
22.7 22.7
20.8 21.2
19 3. 18 7.
16.5
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
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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%

40%

20%

0%

TV

Desktop

Mobile PC Mobile & CP

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60%
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21% 22% 23% 23% 18% 18% 19% 20%
17% 17% 15% 13%
15% 15%
16% 16%
10%
12%
15% 14%
19% 17% 17% 15%
57%
54%
50% 51%
45% 46% 44% 46%
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
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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”

100% 40% 60% 80% 0% 20%																							~~2%~~ 20% 17% 18% ~~43%~~ 2Q15	~~2%~~ 20% 17% 18% ~~43%~~ 2Q15
		22%			24%			22%			23%			19%			20%			19%			18%
		21%			20%			24%			22%			21%			21%			19%			17%
														~~4%~~ 19%			~~3%~~ 18%			~~2%~~ 21%			~~2%~~ 20%
		21%			19%			18%			18%
		14%			12%			7%			~~5%~~												~~43%~~
		22%			25%			29%			32%			~~37%~~			~~38%~~			~~39%~~
		3Q13			4Q13			1Q14			2Q14			3Q14			4Q14			1Q15

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

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