INX — Investor Presentation 2013

Jan 14, 2013

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Investor Presentation

October 2012

Disclaimer

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

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1 Successful Integration of Three Companies
2 Focused Technology Roadmap
3 Improved Market Position in China
4 Termination of Systems Business to Improve Profitability
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3

Investment Highlights

1 Leading Market Position with Innovative Products 2 Solid R&D Capabilities to Keep Competitive Edge 3 Clear Strategy to Enhance Operating and Fab Efficiency 4 Diversified Customer Base 5 Improving Financial Performance

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1 Leading Market Position

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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)]
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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

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1 Innovative Products – 39” and 50” TV Panel

• 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

• The 39” and 50” TVs were the best sellers during China National Day Holidays

• Allows efficient utilization of 6G and 7.5G capacity

• Increase glass efficiency - 96% for 50“ and 39” TV panels vs. 85% for 46“ and 31.5” TV panels

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

• Successfully became the mainstream size for the market

Note:

1. As of September 2012

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1

Growing Large-sized TV Revenue Contributed to Margin Improvement

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Sales Contribution from TV vs. Consolidated Gross Margin
Sales Contribution from TV Gross Margin
(%) (%)
80 10
3.2%
60 (1.8%) 0
(6.0%)
40 (7.5%) (10)
43%
20 38% 39% (20)
36%
0 (30)
4Q11 1Q12 2Q12 3Q12
Gross Margin
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2 Touch Panel Technologies – Total Solution “Display + Touch”

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

Note

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

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3 Efficient, Large Scale Front-end Manufacturing Footprint
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We have one of the most complete fab portfolio, effectively translating to a diverse sizes of panels

Fab Generation	No. of Fabs	Installed Capacity(1) (K sub. per Month)	Utilization Rate(1)	Main Product Sizes
8.5G	1	42(2)	Close to 100%	23.6”, 31.5”, 55”
7.5G	1	100	100%	42”, 50”
6G	2	305	Close to 100%	39”, 65”
5.5G	1	170	Close to 100%	29”, 58”
5G	3	415	Close to 100%	9.7” to 26”
3.5G / 4.5G / 4G	6	453	<100%	2” to 9.7”

Note

1. As of 3Q 2012

2. Further capacity can be expected upon debottlenecking

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3 Optimizing Revenue Productivity of Our Fab Assets

Front-end Utilization Rate

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(%)
100
90
80
95%
93%
89%
84%
82%
70
77%
66%
60
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
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Source: Company data

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3
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Cost Reduction Initiatives

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1 Dispose System Assembly Business
2 Discontinue Pure Touch Panel Lamination Business
3 Increase Automation in Production Process
4 Manage Operations with Cutting Edge MIS System
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4 Diversified Customer Base

Key Customers

Revenue Contribution by Customers

9M2012

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Television
Monitor
Notebook
Mobile
Phone
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Customer A
12%
Customer B
7%
Customer C
5%
Other
Customers
76%
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5 Summary Financials

(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 (%)	Significant		(1.8%) (7.0%)		(15.9%)
Net loss	~~Margin~~ ~~Imrovement~~		(3.7) (9.6)		(17.3)
Margin (%) (2.9%) (8.5%) ~~p~~					(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

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

Note

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5 Revenue Momentum

Revenues

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(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
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5

Margin Recovery

Gross Margin

EBITDA Margin

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(%) (%)
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%
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5 Depreciation Has Peaked

Depreciation

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(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
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5 Operating Expense Management

Operating Expenses

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(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
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5 Increasing Operating Cash Flow

Operating Cash Flow

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(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
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5 Prudent Capital Expenditures

Capital Expenditures

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(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
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Capital Expenditures as % of Sales

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Q&A

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