INX — Investor Presentation 2013

Jan 14, 2013

==> picture [842 x 199] intentionally omitted <==

==> picture [842 x 199] intentionally omitted <==

Investor Presentation

October 2012

Disclaimer 排除責任之聲明

By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations:

The information in this presentation has been prepared by Chimei Innolux Corporation (the “Company”) for use at a non-deal road show presentation by the Company and does not constitute a recommendation regarding the securities of the Company.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company nor any of the Company’s advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.

This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its advisors or representatives are under an obligation to update, revise or affirm.

The information communicated in this presentation contains certain statements that are or may be forward-looking. These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Investment in the Company will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Accordingly, you should not rely on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Company. The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold or delivered within the United States or to “U.S. persons” (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from the registration requirements of the Securities Act.

This presentation and the information contained herein is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part. You agree to keep absolute confidentiality regarding this presentation and the information contained herein. In particular, neither the information contained herein nor any copy hereof may be, directly or indirectly, transmitted into or distributed in the United States or to any U.S. person, including their U.S. branches or affiliates, or, except in compliance with applicable securities laws, transmitted into or distributed in any other jurisdiction which prohibits such transmission or distribution. Any failure to comply with this restriction may constitute a violation of the securities laws of the United States or other jurisdictions. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.

By reviewing this presentation, you are deemed to have represented and agreed that you and any customers you represent are either (i) qualified institutional buyers (within the meaning of Rule 144A under the Securities Act), or (ii) not U.S. persons, are outside of the United States and not acting for the account or benefit of a U.S. person..

2

Accomplishments of the Past Two Years 過去兩年經營成果

==> picture [810 x 390] intentionally omitted <==

----- Start of picture text -----

1 Successful Integration of Three Companies 三家公司的整合
2 Focused Technology Roadmap 專注的技術發展藍圖
3 Improved Share of Chinese Market 增加的中國市場市佔率
4 Termination of Systems Integration Business 終止系統整合事業
----- End of picture text -----

3

Investment Highlights 投資亮點

==> picture [810 x 401] intentionally omitted <==

----- Start of picture text -----

Leading Market Position with Innovative Products
1
擁有創新產品的市場領先者
Solid R&D Capabilities to Keep Competitive Edge
2
獨特的研發能力以維持競爭優勢
Clear Strategy to Enhance Operating and Fab Efficiency
3
明確的策略以強化營運與產能
4 Diversified Customer Base 多樣化的客群
5 Improving Financial Performance 改善中的財務績效
----- End of picture text -----

4

1 Leading Market Position 領導市場地位

==> picture [795 x 429] intentionally omitted <==

----- Start of picture text -----

Size of Display Market in
Market Position [(1)] Market Share [(1)]
2012E (US$Bn)
$50.0 No. 3 21%
$21.6 No. 2 13%
$14.1 No. 2 29%
$11.0 No. 3 19%
Total Markets $96.7 20% [(2)]
----- End of picture text -----

Source: DisplaySearch

Notes

1. TV, monitor, and notebook data as of September 2012; mobile phone data as of 6M 2012

2. Weighted average market share

5

Innovative Products – 39” and 50” TV Panel 1 創新產品 -39 吋與 50 吋電視面版

• CMI was the first to introduce 39" and 50" TV panels

• Avoid intensifying competition in mainstream products such as 32"

• � Strong consumer acceptance has displaced 37" and 40" products in 2012

• These sizes were the best sellers during China National Day Holidays

• � Allows efficient utilization of 6G and 7.5G capacity

• Increase glass efficiency - 96% for 50" TV panel vs. 90% for 47" TV panel

• CMI had market share of 76% in 39" and 67% in 50" TV panels[(1)]

Note: 1. As of September 2012

6

1

Growing Large-sized TV Revenue Contributed to Margin Improvement 大尺寸電視營收成長有助於毛利改善

Sales Contribution from TV vs. Consolidated Gross Margin

==> picture [746 x 383] intentionally omitted <==

----- Start of picture text -----

Sales Contribution from TV Gross Margin
(%) (%)
80 10
3.2%
60 0
(1.8%)
(6.0%)
(7.5%)
40 (10)
43%
20 38% 39% (20)
36%
0 (30)
4Q11 1Q12 2Q12 3Q12
Gross Margin
----- End of picture text -----

7

Touch Panel Technologies – Total Solution “Display + Touch” 2 - 觸控面板技術 結合顯示與觸控的完整解決方案

WIS (OGS)[(1)] On-Cell Touch (OTS) In-Cell Touch (ITS) Status Mass production Start shipments in 1Q 2013 Development Product Size 3.5” – 13.3”

Application

==> picture [593 x 113] intentionally omitted <==

Note

1. Window integrated sensor, or one glass sensor, integrates sensor circuitry onto cover glass

8

3

Efficient, Large Scale Front-end Manufacturing Footprint 兼具效率與大規模的前段製造工廠

We have most complete fab portfolio, effectively translating to most sizes of panels

Fab Generation		No. of Fabs	Installed Capacity(1) (K sub. per Month)		Utilization Rate(1)	Main Product Sizes
8.5G		1	40		Close to 100%	23.6”, 31.5”, 55.0”
7.5G		1	106		100%	40.0”, 42.0”, 49.5”
6G		2	309		Close to 100%	18.5” to 65.0”
5.5G / 5G		4	583		Close to 100%	9.0” to 58.0”
4.5G / 4G		2	259		<100%	2.0” to 7.0”
3.5G		2	139		<100%	3.2” to 10.3”

Note 1. As of 3Q 2012

9

Optimizing Revenue Productivity of Our Fab Assets 3 將產能做最適化的營收產出

Front-end Utilization Rate

==> picture [749 x 330] intentionally omitted <==

----- Start of picture text -----

(%)
100
90
80
95%
93%
89%
84%
82%
70
77%
66%
60
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
----- End of picture text -----

10

==> picture [51 x 51] intentionally omitted <==

----- Start of picture text -----

3
----- End of picture text -----

Cost Reduction Initiatives 降低成本的行動

1 Dispose System Assembly Business 處置系統整合事業 Discontinue Pure Touch Panel Lamination Business 2 結束單純觸控面板貼合事業 3 Increase Automation in Production Process 增加自動化製程 Manage Operations with Cutting Edge MIS System 4 創新資訊系統與營運管理

11

==> picture [51 x 51] intentionally omitted <==

----- Start of picture text -----

4
----- End of picture text -----

Diversified Customer Base 多樣化的客群

Key Customers

Revenue Contribution by Customers

==> picture [41 x 10] intentionally omitted <==

----- Start of picture text -----

9M2012
----- End of picture text -----

==> picture [124 x 155] intentionally omitted <==

----- Start of picture text -----

Television
Monitor
----- End of picture text -----

==> picture [124 x 165] intentionally omitted <==

----- Start of picture text -----

Notebook
Mobile
Phone
----- End of picture text -----

==> picture [111 x 34] intentionally omitted <==

==> picture [118 x 27] intentionally omitted <==

==> picture [66 x 42] intentionally omitted <==

==> picture [50 x 49] intentionally omitted <==

==> picture [315 x 301] intentionally omitted <==

----- Start of picture text -----

Customer A
12%
Customer B
7%
Customer C
5%
Other
Customers
76%
9M 2012 Revenue: NT$354.0Bn
----- End of picture text -----

12

5 Summary Financials 財務狀況

(NT$Bn)

3Q 2012 2Q 2012	3Q 2012 2Q 2012	3Q 2012 2Q 2012	3Q 2012 2Q 2012	3Q 2012 2Q 2012	3Q 2011
Revenues 128.9 111.9					123.9
Gross profit / (loss) 4.1 (2.0)					(12.6)
Margin (%)				3.2% (1.8%)	(10.2%)
Operating loss (2.3) (7.8)					(19.7)
Margin (%) (1.8%) (7.0%) Significant					(15.9%)
Net loss	~~Margin~~ ~~I~~		(3.7) (9.6)		(17.3)
Margin (%) (2.9%) (8.5%) ~~mprovement~~					(13.9%)
EBITDA		19.2 14.1			5.5
Margin (%)				14.9% 12.6%	4.4%
Inventory days(1) 40 48					46
Cash and cash equivalents 54.8 60.3					61.8
Total debt 285.1 328.7					345.6

Note

1. Calculated by dividing the average inventory into the annualized cost of goods sold during such period, then multiplying by 365 days

13

5

Revenue Momentum 營收動能組成

Revenues

==> picture [747 x 391] intentionally omitted <==

----- Start of picture text -----

(NT$Bn)
160
140
20.5 3.0
120
26.4 20.2
23.6 10.9 6.0
100
80
125.9
60 117.1
100.0 98.6 103.6 102.3 105.9
40
20
0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
2011A: NT$510.1Bn 9M 2012: NT$354.0Bn
Core Business Set Business
----- End of picture text -----

14

5

Margin Recovery 毛利重獲改善中

==> picture [762 x 414] intentionally omitted <==

----- Start of picture text -----

Gross Margin EBITDA Margin
(%) (%)
4 3.2% 16
14.9%
14
12.6%
0
(1.8%)
12
10.3%
9.7%
(4) (4.8%) (5.1%) 10 9.0%
(6.0%)
(7.5%) 8
(8)
(10.2%) 6
4.4% 4.3%
(12) 4
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
2011A: (6.9%) 9M 2012: (1.3%) 2011A: (10.8%) 9M 2012: 12.3%
----- End of picture text -----

15

5

Depreciation Has Peaked 折舊已過高峰期

==> picture [786 x 411] intentionally omitted <==

----- Start of picture text -----

Depreciation
(NT$Bn)
80
~75
60
40
20
24.0 23.9 23.6 21.9 21.0 20.7 20.4
0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 2013E
2011A: NT$93.4Bn 9M 2012 : NT$62.1Bn
----- End of picture text -----

16

5

Operating Expense Management 營業費用管理

Operating Expenses

==> picture [761 x 390] intentionally omitted <==

----- Start of picture text -----

(NT$Bn) (%)
12 6
5.8%
5.7%
10 5.3% 5
5.2%
5.0%
4.8% 4.8%
8 4
7.3
7.1
6.7
6.4 6.5
5.8
6 5.4 3
4 2
2 1
0 0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
2011A: NT$27.5Bn 9M 2012: NT$17.7Bn
Operating Expenses as % of Sales
----- End of picture text -----

17

5

Increasing Operating Cash Flow 營業活動的現金流入增加中

Operating Cash Flow

==> picture [751 x 377] intentionally omitted <==

----- Start of picture text -----

(NT$Bn)
30
24.6
25
20.0
20
16.1
15
10
7.7
5
0.0
0
(5)
(4.1) (4.6)
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
2011A: NT$28.1Bn 9M 2012: NT$31.5Bn
----- End of picture text -----

18

5

Prudent Capital Expenditures 嚴謹管控的資本支出

Capital Expenditures

==> picture [748 x 375] intentionally omitted <==

----- Start of picture text -----

(NT$Bn)
(%)
30 15
25 12.6%
12
20 9.9%
8.9% 9
15
6
10
4.8%
16.0
3.5%
12.2 3.0% 3.2% 3
10.9
5
6.6 6-7
4.6
3.4 3.6
0 0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E 2013E
2011A: NT$45.6Bn 2012E: ~NT$18Bn
----- End of picture text -----

Capital Expenditures as % of Sales

19

==> picture [842 x 199] intentionally omitted <==

Q&A

==> picture [842 x 199] intentionally omitted <==