INX — Interim / Quarterly Report 2021

May 11, 2021

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2021 First Half Institutional Investor Conference

March 3, 2021

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.

Agenda

1 . Market O ver view

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• 2 . Tec h n olog y an d Prod u c t Road map

• 3 . Busin ess S trateg ies an d Goals 4 . F in an c ial Resu lts

Panel Remains in Short Supply in 2021

 Reliance on electronic products intensifies in post-pandemic era. Panel as the key human-media interface will remain in short supply, in addition to the supply chain status.

Panel shortage extends from 2020 to 2021

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(Glut ratio)
10%
Glut ratio by
9% market forecast
8%
7%
Glut ratio by
6% Innolux forecast
5%
18' 19' 20' 21'(F) 22'(F)
Sources: Omdia, Innolux
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Online Education to Be Blue Ocean Market

 Online education penetration accelerated by pandemic and continues to be Blue Ocean market as 2021.

 70% of Chromebook demand in 2020 postponed to 2021, a double-digital growth since 2020 expected by market survey.

Great market potential for online education Double-digit growth in education IT product from 2020

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China (Million of units)
Online-education
UK 60.0
launched,
£200/student as online
180 million K-12
education subsidy
population 50.0
40.0
30.0
20.0
Japan
7 million pcs GIGA
school bid 10.0
USA
Pioneer of online
education -
2019 2020 2021(f) 2022(f)
India
South America 423 million online Asia-Pacific NB@Education Chromebook
20’Q4-21’ education user, Indonesia, Singapore
emerging school bid 350 million K-12 Online education launched Source: IDC, Omdia, ETR, Pngtree, Innolux
educational population in 2020
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Targeting Leadership in High-End Automotive Display

 The penetration rate of display technology has increased in the automotive market. In the future cockpit, digitizing clusters bring business opportunity for value-added display.

 Innolux has engaged with customers to focus on premium, luxury and flagship car models.

Integrate advanced tech in cockpit and develop large & free-form automotive display

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Over 20-inch one-piece type auto display panel demand

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(Million of units)
2.7
2.6
2.1
1.4
0.7
0.4
0.1
2020 2021(F) 2022(F) 2023(F) 2024(F) 2025(F) 2026(F)
Source: Omdia
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Transformation: Non-Display Business

• Collaborate with Kymeta, a famous satellite startup, in exclusive mass production of LC Meta-Surface Antenna with TFT-LCD technology.

• Parent-subsidiary collaboration to kick-start medical diagnostics market with X-ray Flat Panel Detector.

LC Meta-Surface Antenna

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Source: Innolux

X-ray Flat Panel Detector

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Source: Innolux, INCX

Dual Transformation for Medical Diagnostics Market

• Innolux will provide high quality and cost-competitive panels and support its subsidiaries to enter different terminal markets

• with high-end products and new applications.

• The Company will enhance the enterprise value via growing new ventures, adding value for shareholders and employees.

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Shareholder

Employee

• Diversified investment

• Talent attraction/ re-

• Appreciation under new business revaluation

• location

• Internal startup

• Diversified revenue base

• Attract young talents

• Reduced CapEx

• Retention bonus

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X-ray image detection

• Intelligent medical diagnosis

Y2020 Innolux ESG Highlights

Outstanding Water and Energy Conservation

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 290 million tons recycling water reused= 110 thousand Olympic-size swimming pools capacity

• 18.5 million kWh power conservation= 5,300 families’ annual power consumption*

Comprehensive

Environmental

Social

Governance

• Membership of DJSI World Index and Emerging Market Index, Rank #1 in Social Dimension among panel makers

• •CDP - Supplier Engagement Rating: A ; Climate Change: B; Water security: B

• •TCSA Sustainability Performance Award/ Circular Economy Leadership Award /Sustainable Water Management Award/ Corporate Sustainability Report Silver Award

• •Silver Award-National Environmental Enterprise Award

• •>92% VOCs BACT treatment

• 96.2% Process water reclamation rate (science park standard 85%)

• •9.4% reduction in TFT-LCD front-end process FCs emissions

• •Prime Award-National Occupation Safety and Health Award

• •Top 6~20% in Corporate Governance Evaluation

• 9.75 million pcs face-mask distributed • Rank #2 in Electronic component worldwide to protect employees’ industry of Taiwan TOP5000 health

• 1,300 Christmas gifts and NTD 1.2 million donation for 74 schools

*Source：TaiPower website

4Q2020 Financial Results

(NT$ million) Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit (Loss) Net Non-operating Income (Exp.) Profit (Loss) before Tax Net Profit (Loss) Net Profit (Loss) Attributable to Owners of Company Basic EPS (NT$)(1)(2) EBITDA(3) Depreciation & Amortization Capital Expenditure	4Q 2020 78,068 100.0% 62,121 79.6% 15,946 20.4% 5,891 7.5% 10,055 12.9% 133 0.2% 10,189 13.1% 10,141 13.0% 10,143 13.0% 1.04 19,040 24.4% 8,984 4,928	3Q 2020		QoQ % 4Q 2019 4.7% 65,578 100.0% -8.2% 66,960 102.1% 130.3% (1,382) -2.1% 5.3% 5,751 8.8% 654.9% (7,132) -10.9% -50.2% 460 0.7% 536.8% (6,673) -10.2% 558.7% (6,859) -10.5% 557.7% (6,859) -10.5% (0.71) 85.2% 1,525 2.3% 8,658 4,529
		74,568 100.0% 67,643 90.7% 6,925 9.3% 5,593 7.5% 1,332 1.8% 268 0.4% 1,600 2.1% 1,540 2.1% 1,542 2.1% 0.16
		10,278 13.8%
		8,946 4,733

Notes:

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

2. Capital Stock (common, including Certificates of Bond-to-Stock Conversion): NT$99.4 billion as of December 31, 2020

3. EBITDA = Operating Income + Depreciation & Amortization

4. All figures are prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in TIFRS.

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