INX — Interim / Quarterly Report 2015

Feb 2, 2016

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4Q 2015 Earning Results February 2016

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 .

2

Selected Items from Statements of Comprehensive Income

(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) Depreciation & Amortization Capital Expenditure	2015 364,133 100.0% 317,495 87.2% 46,638 12.8% 24,206 6.6% 22,432 6.2% (7,570) -2.1% 14,862 4.1% 10,816 3.0% 10,816 3.0% 1.09 75,989 20.9% 53,557 24,511	2014 428,662 100.0% 378,328 88.3% 50,334 11.7% 22,205 5.2% 28,129 6.6% (5,606) -1.3% 22,523 5.3% 21,677 5.1% 21,677 5.1% 2.31 89,012 20.8% 60,883 20,527	YoY
			-15.1% -16.1% -7.3% 9.0% -20.3% - -34.0% -50.1% -50.1%
			-14.6%

Notes:

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

2. Capital Stock (common): NT$99.5billion as of December 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

Selected Items from Statements of Comprehensive Income

(NT$ million) Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income (Loss) Net Non operating Income (Exp ) - . Income (Loss) before Tax Net Income (Loss) Net Income (Loss) - Parent Basic EPS(NT$)(1)(2) EBITDA(3)	4Q 2015 81,464_100.0% 78,938_96.9% 2,525 3.1% 5,424 6.7% (2,899) -3.6% (3 727) 4 6% , - . (6,626) -8.1% (6,723) -8.3% (6,723) -8.3% (0.68) 9,639_11.8%_	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%_	QoQ % -8.2% 1.2% -76.6% -10.6% - - - - - -46.0%	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%_

Notes:

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

2. Capital Stock (common): NT$99.5billion as of December 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.

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Combined Balance Sheet Highlights
(NT$ million) 2015.12.31	2015.9.30	2014.12.31
Cash & Short Term Investment 49,014	41,188	68,943
Inventory 30,197	35,008	33,790
Total Assets 387,442	396,067	480,985
Short Term Debt(1) 16,361	16,352	88,693
Long Term Debt 43,630	43,606	42,293
Shareholders’ Equity(2) 232,265	241,125	227,690
C t R ti 124% urren a o	128%	94%
Debt to Equity 26%	25%	58%
Net Debt to Equity 5%	8%	27%
Depreciation & Amortization 12,537	13,140	14,340
Capital Expenditure 9,863	4,257	5,941

Notes:

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

2. Capital Stock (common): NT$99.5billion; Book value per common stock: NT$ 23.34 as of December 31, 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
464 459 457 469 450
417
390
333
8,272
7,983 8,040
7,383
8,000 7,238
7,014 7,091
6 396,
4,000
0
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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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
551.5
517.4 534.3
517.7
471.1
442.4 448.2
87
78 78 77
69
65
62
56
25.1
22.7
21.2
19.3 18.7 18.4 17.8
16.5
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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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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TV

Desktop Mobile PC

Mobile & CP

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100%
18% 18% 19% 20%
23% 23% 23% 25%
80%
17% 17% 15% 13%
16% 16% 14% 13%
10%
60% 12%
15% 14% 10% 10%
15%
17%
40%
57%
50% 51% 54% 53% 52%
44% 46%
20%
0%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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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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100% 80% 60%

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

40% 20% 0%

22%			23%			19%			20%			19%			18%			21%			22%
24%			22%			21%			21%			19%			17%			18%			17%
18%						~~4%~~ 19%			~~3%~~ 18%			~~2%~~ 21%			~~2%~~ 20%			17%			~~1%~~ 16%
			18%
																		~~1%~~
7%			5%												~~43%~~			~~43%~~			44%
29%			32%			37%			~~38%~~			~~39%~~
1Q14			2Q14			3Q14			4Q14			1Q15			2Q15			3Q15			4Q15

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