INX — Interim / Quarterly Report 2015

May 5, 2015

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1Q 2015 Earning Results May 2015

Disclaimer

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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1Q 2015 Combined Income Statement - QoQ

(NT$ million) Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Net Non-operating Income (Exp.) Income before Tax Net Income Net Income-Parent Basic EPS(NT$)(1)(2) EBITDA(3)	1Q 2015 100,158_100.0% 82,404_82.3% 17,754_17.7% 6,523 _6.5% 11,231_11.2% (1,170) -1.2% 10,061_10.0% 8,651 8.6% 8,651 8.6% 0.87 25,381_25.3%_	4Q 2014 114,947_100.0% 96,447_83.9% 18,500_16.1% 6,817 _5.9% 11,683_10.2% (474) -0.4% 11,209 _9.8% 11,154 9.7% 11,154 9.7% 1.13 26,023_22.6%_	QoQ % 1Q 2014 -12.9%89,559_100.0% -14.6%83,830_93.6% -4.0% 5,729 6.4% -4.3% 4,427 4.9% -3.9% 1,302 1.5% -(1,140) -1.3% -10.2% 162 0.2% -22.4% 153 0.2% -22.4% 153 0.2% 0.02 -2.5%17,844_19.9%_

Notes:

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

2. Capital Stock (common): NT$99.54billion as of March 31, 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.

3

Revenue, Gross Margin, EBITDA Margin, and EPS Trends

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Revenue [(1)]
TFT Panel LAM Gross Margin EBITDA Margin EPS(NT$)
(NT$Billion)5
0.77 1.13 0.87
0.45 0.33
0.08 -0.15 0.02
3000
25.3% 25.3%
23.6% 22.6%
(5) 18.4% 19.9% 19.4% 20.9% 16.1% 17.7%
12.4% 12.8%
10.2% 10.4%
200
6.4%
5.1%
(10)
111.5 111.1 113.1 114.9
97.2 97.2 100.2
89.6
100(15)
(20)
0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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Notes:

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

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

4

1Q 2015 Combined Balance Sheet Highlights

(NT$million) Cash & Short Term Investment Inventory Total Assets Short Term Debt(1) Long Term Debt(2) Shareholders’ Equity(3) Net Debt to Shareholders’ Equity Depreciation & Amortization Capital Expenditure	2015.3.31 39,111 33,302 422,985 27,716 51,765 234,970 17.2% 14,150 6,609	2014.12.31 2014.3.31 68,943 34,800 33,790 51,060 480,985 486,388 88,693 96,426 42,293 87,261 227,690 194,212 27.2% 76.7% 14,340 16,542 5,941 4,169

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$99.54billion; Book value per common stock: NT$ 23.61 as of March 31, 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 .

5

Total Debt and Debt Ratios

Total Debt[(1)] (NT$ Billion)

Total Debt Net Debt to Equity Debt to Equity

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450
112.4%
107.8%
103.8%
94.6%
76.3%
300 93.7%
87.6%
81.7% 59.5% 57.5%
76.7%
64.3%
33.8%
44.2%
27.2%
150
17.2%
217.1 208.7 200.3
183.7
148.9
127.4 131.0
79.5
0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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Notes:

1. Total Debt = short term debt + long term debt

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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Inventory Trend

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Net Inventory
Net Inventory
(NT$Bn)
80
60
40
50.5 50.6 51.1
44.7 45.7
20 38.4
33.8 33.3
0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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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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Area Shipments and TFT LCD ASP Trends

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Shipment
(‘000 m [2] ) TFT Panel System + Touch LAM TFT Panel ASP (US$ / m [2] )
12,000
520 511
487
464 459 457 469 450
8,272
7,983 8,040
8,000
7,019 7,014
6,793
6,363 6,396
4,000
0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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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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Small & Medium-Size Unit Shipments and Sales Trends

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Revenue Shipment
TFT Panel Revenue LAM Revenue Shipment
(NT$ Billon) (Million Units)
60 116 120
104
100
87
78 78 77
40 80
62
24.6 25.1
22.7 22.7
20.8 21.2
19.3 18.7
20 40
0 0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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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%

Sales Breakdown by Application

TV Desktop Mobile PC & Tablet Small & Medium Others

0%

	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	~~1%~~	54% ~~12%~~ 15% 18% ~~1%~~ 1Q15	54% ~~12%~~ 15% 18% ~~1%~~ 1Q15
	19%			20%			21%			22%			22%			17%			17%			18%
	16%			15%			15%			16%			16%			17%			17%			15%
	19%			19%			17%			17%			15%			15%			~~14%~~			~~12%~~
	45%			45%			46%			44%			46%			50%			51%			54%
	2Q13			3Q13			4Q13			1Q14			2Q14			3Q14			4Q14

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

10

Sales Breakdown by Size

40”+ 30 to <40” 20 to <30” 10 to <20” <10”

0% 20% 40% 60% 80% 100%																							~~39%~~ ~~2%~~ 21% 19% 19% 1Q15	~~39%~~ ~~2%~~ 21% 19% 19% 1Q15
		24%			22%			24%			22%			23%			19%			20%			19%
		19%			21%			20%			24%			22%			21%			21%			19%
																	~~4%~~ 19%			~~3%~~ 18%			~~2%~~ 21%
		21%			21%			19%			18%			18%
		15%			14%			12%			7%			~~5%~~
		21%			22%			25%			29%			32%			~~37%~~			~~38%~~			~~39%~~
		2Q13			3Q13			4Q13			1Q14			2Q14			3Q14			4Q14

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