INX — Interim / Quarterly Report 2017

May 10, 2017

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1Q 2017 Earning Results

May 2017

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 t h e orwar f d - oo l ki ng statements. 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.

2

Selected Items from Statements of Comprehensive Income

	(NT$ million) Net Sales C f G d S ld ost o oo s o Gross Profit Operating Expenses Operating Income (Loss) Net Non-operating Income (Exp.) Income (Loss) before Tax Net Income (Loss) Basic EPS(NT$)(1)(2) EBITDA(3)	1Q 2017 86,026_100.0% 65 681 76 4% , . 20,345_23.6% 5,713 6.6% 14,632_17.0% 722 _0.8% 15,354_17.8% 11,858_13.8% 1.19 23,108_26.9%_	4Q 2016 89,382_100.0% 69 580 77 8% , . 19,802_22.2% 5,806 6.5% 13,996_15.7% (1,135)-1.3% 12,861_14.4% 10,869_12.2% 1.09 23,665_26.5%	QoQ % -3.8% 5 6% - . 2.7% -1.6% 4.5% - 19.4% 9.1% -2.4%	1Q 2016 56,417_100.0% 60 455 107 2% , . (4,038)-7.2% 4,365 _7.7% (8,402)-14.9% (131)-0.2% (8,534)-15.1% (8,582)-15.2% (0.86) 3,046 5.4%

Notes:

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

2. Capital Stock (common): NT$99.5billion as of March 31, 2017

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) 2017.3.31 2016.12.31 2016.3.31 Cash & Short Term Investment 35,881 35,276 36,462 Inventory 24,878 23,399 29,164 T t l A t 359 566 371 480 351 258 Combined Balance Sheet Highlights o a sse s , , , Short Term Debt(1) 35,498 27,965 19,251 Long Term Debt 835 28,128 35,445 Shareholders’ Equity(2) 235,547 226,006 222,810 Current Ratio 101% 109% 118% Debt to Equity 15% 25% 25% Net Debt to Equity 0% 9% 8% Depreciation & Amortization 8,476 9,669 11,448 Capital Expenditure 5,804 9,250 7,459

Notes:

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

2. Capital Stock (common): NT$99.5billion; Book value per common stock: NT$ 23.67 as of March 31, 2017

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 .

4

Shipment (‘000 m[2] )

TFT Panel TFT Panel ASP (US$ / m[2] )

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12,000
417
390 399
379
333 330
298 289
8,000 7,383 7,412
7,238 7,091 7,003 6,968
6,814
5,629
4,000
0
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
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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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551 5. 569 8.
542.1 539.8
517.7
472.8
448.2
382.4
69
65
61 62 62
56 55
47
16 5. 18.4 17.8 16 8. 16 9.
15 2.
13.0 13.1
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
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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).

6

TV

Desktop

Mobile PC

Mobile & CP

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100%
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20% 23% 25% 25% 24% 21% 22%
28%
80%
13%
14% 16% 15%
13%
15% 17%
14%
10%
60%
10% 10% 11% 10%
11% 12% 12%
40%
57%
53% 52% 52% 53%
47% 48% 47%
20%
0%
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
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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%																							49% 12% 18% 20% 1Q17	49% 12% 18% 20% 1Q17
		18%			21%			22%			23%			20%			21%			19%			20%
		17%			18%			17%			19%			20%			21%			19%			18%
		20%			17%			16%			16%			15%			18%			13%			12%
		~~43%~~			~~43%~~			44%			~~42%~~			45%						48%			49%
																	~~39%~~
		2Q15			3Q15			4Q15			1Q16			2Q16			3Q16			4Q16

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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