INX — Investor Presentation 2013

Oct 31, 2013

3Q 2013 Earning Results
October 2013

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.

3Q 2013 Combined Income Statement - QoQ

(NT$ million)			3Q 2013			2Q 2013			QoQ %		3Q 2012
Net Sales			97,217	100.0%		111,518	100.0%		-12.8%		129,552	100.0%
	Cost of Goods Sold		87,264	89.8%		97,736	87.6%		-10.7%		125,306	96.7%
Gross Profit			9,953	10.2%		13,782	12.4%		-27.8%		4,246	3.3%
	Operating Expenses		6,052	6.2%		5,715	5.1%		5.9%		6,460	5.0%
Operating Income			3,901	4.0%		8,067	7.2%		-51.6%		-2,214	-1.7%
Net Non-operating Income (Exp.)			-2,970	-3.1%		-3,817	-3.4%		-		-1,655	-1.3%
Income before Tax			931	1.0%		4,250	3.8%		-78.1%		-3,869	-3.0%
EBITDA(1)			22,991	23.6%		28,241	25.3%		-18.6%		18,860	14.6%
Net Income			683	0.7%		4,069	3.6%		-83.2%		-3,720	-2.9%
	Net Income-Parent		685	0.7%		4,071	3.7%		-83.2%		-3,721	-2.9%
	Basic EPS (NT$)(2)		0.08			0.45					-0.51
Notes:
EBITDA = Operating Income + Depreciation & Amortization
Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
Capital Stock (common): NT$91.02 billion
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
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.

Operating Income and EBITDA Trends

Operating Income (Loss)

EBITDA & EBITDA Margin

(NT$ billion)
(NT$ billion)
Margin (%)
25.3%
20.7%
23.6%
18.4%
14.6%
Note:
EBITDA = Operating Income + Depreciation & Amortization
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
All 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.

Revenue, Gross Margin, EBITDA Margin, and EPS Trends

Revenue(1)
(NT$Bn)
EBITDA Margin
Gross Margin
EPS(NT$)
TFT Panel
System
LAM

Notes:
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
All 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.

2Q 2013 Combined Balance Sheet Highlights

(NT$ million)		2013.9.30		2013.6.30		2012.9.30
Cash & Short Term Investment		39,076		36,120		52,672
Inventory		50,541		44,652		50,304
Total Assets		513,447		524,678		599,093
Short Term Debt (1)		90,539		88,933		88,635
Long Term Debt (2)		118,157		128,143		199,316
Shareholders’ Equity (3)		193,682		193,117		175,134
Net Debt to Shareholders’ Equity		87.6%		93.7%		134.3%
Depreciation & Amortization		19,090		20,173		21,076
Capital Expenditure		4,877		4,579		4,567

Notes:
Short term debt = (short-term bank loan + commercial papers + current portion of long term loan + obligations under capital leases)
Long term debt = (long-term bank loan + corporate bonds + obligations under capital leases)
Capital Stock (common): NT$91.02 billion; Book value per common stock: NT$ 21.28
Net debt to shareholders’ equity = (short term debt + long term debt – cash & short term investment) / shareholders’ equity
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
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.

Total Debt and Debt Ratios

Total Debt(1)
(NT$Bn)
Total Debt
Debt to Equity
Net Debt to Equity

Notes:
Total Debt = short term debt + long term debt
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Inventory Trend

Net Inventory(2)
(NT$Bn)
Turnover (1) (Days)
Inventory Turnover
Net Inventory

Notes:
Inventory turnover days = 365 / (annualized cost of goods sold / average inventory)
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Area Shipments and TFT LCD ASP Trends

ASP (1)(2)
(US$ / m2)
Shipment(2)
(‘000 m2)
System + Touch LAM
TFT Panel
TFT Panel ASP

Notes:
Exchange rate based on the prevailing market rate at the end of each quarter.
All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Small & Medium-Size Unit Shipments and Sales Trends

Revenue
(NT$ Billion)
Shipment
(Million)
Shipment
Revenue

40
30
20
10
0
Notes: All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Touch Module and Sensor Shipment by Application

Shipment
(Million)
Small & Medium
Mobile PC

Notes: All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Sales Breakdown by Application

TV
Desktop
Mobile PC
Small & Medium
Others

Notes: All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Sales Breakdown by Size

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

Notes: All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

Q&A