KYEC — Interim / Quarterly Report 2018

May 22, 2018

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京元電子股份有限公司 King Yuan Electronics Co., Ltd

2018 Q1 Operation Results

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Safe Harbor Notice

� This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes,’ ‘expects,’ ‘anticipates,’ ‘projects,’ ‘intends,’ ‘should,’ ‘seeks,’ ‘estimates,’ ‘future’ or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors.

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Consolidated Operating Results Summary (unaudited)

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1Q18 4Q17 1Q17
(NT $ Millions)
Net Revenue 4,580.8 4,802.6 4,868.9
Profit Attributable to the
348.2 429.7 560.7
Company
EPS Attributable to the
0.28 0.35 0.46
Company- Diluted (NT$)
Depreciation & Amortization 1,581.4 1,577.5 1,585.5
CAPEX 1,955.0 1,158.7 1,241.1
EBITDA [(1)] 2,060.1 2,222.2 2,521.6
Returen on Equity(%) [(2)] 5.5% 9.2% 9.4%
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Note：(1) EBITDA = Operating Income+Depreciation & Amortization;

(2) Annualized return on equity to the Company for the quarter

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Consolidated Statements of Comprehensive Income (unaudited)

Selected Items from Consolidated Statements of Comprehensive Income

(NT $ Millions) Net Revenue Gross Profit Gross Margin Operating Expenses Operating Profit Operating Profit Margin Non-operating Income (Expenses) Profit Attributable to the Company EPS Attributable to the Company- Basic (NT$) Weighted Average Shares Outstanding(in thousands)- Basic EPS Attributable to the Company - Diluted (NT$) Weighted Average Shares Outstanding(in thousands)- Diluted	1Q18		4,802.6 1,247.1 26.0% -602.4 644.7 13.4% -95.1 429.7 0.35 1,213,878 0.35 1,224,813 4Q17	-4.6% -15.0% -2.9ppts 3.4% -25.8% -3.0ppts 46.1% -19.0% -17.1% 0.6% -20.0% 0.3% QoQ	4,868.9 -5.9% 1,478.4 -28.3% 30.4% -7.3ppts -542.3 -7.3% 936.1 -48.9% 19.2% -8.8ppts -225.7 77.3% 560.7 -37.9% 0.48 -39.6% 1,169,272 4.4% 0.46 -39.1% 1,227,625 0.1% 1Q17 YoY
	4,580.8 1,060.4 23.1% -581.8 478.6 10.4% -51.2 348.2 0.29 1,220,922 0.28 1,229,035

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1Q18 Revenue Breakdown By Process (unaudited)

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By Process
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Unit: MNT$

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Final Burn-In
Test 2.7%
35.2%
Assembly
14.4%
Others
Wafer 7.2%
Sort
40.5%
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Others
400 QoQ 96.9%
300
200
100
0
Q4'17 Q1'18
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Wafer Sort Final Test Assembly Burn-In
QoQ -1.4%
2,000 2,500 QoQ -15.4% 800 QoQ -5.3% 200 QoQ - 17.7%
2,000
1,500 600 150
1,500
1,000 400 100
1,000
500 500 200 50
0 0 0 0
Q4'17 Q1'18 Q4'17 Q1'18 Q4'17 Q1'18 Q4'17 Q1'18
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1Q18 Revenue Breakdown By Applications (unaudited)

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By Applications
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Unit: MNT$
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Consumer Data
48.7% Processing
9.7%
Ind. & Military
6.9%
Others
5.3%
Communication Automotive
19.2% 10.2%
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Others
300 QoQ 8356.6%
250
200
150
100
50
0
Q4'17 Q1'18
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Consumer Communication Automotive Data Processing Ind. & Military
3,000 QoQ -8.1% 1,200 QoQ -9.3% 800 QoQ -21.0% 600 QoQ - 14.5% 400 QoQ 8.8%
2,500 1,000 500
600 300
2,000 800 400
1,500 600 400 300 200
1,000 400 200
200 100
500 200 100
0 0 0 0 0
Q4'17 Q1'18 Q4'17 Q1'18 Q4'17 Q1'18 Q4'17 Q1'18 Q4'17 Q1'18
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Consolidated Statements of Financial Position & Key Indices (unaudited)

Selected Items from Consolided Statements of Financial Position

(NT $ Millions) Amount % Current Assets 11,864.3 28.0% Non-current Assets 30,512.9 72.0% Total Assets 42,377.2 100.0% Current Liabilitiess 6,236.0 14.7% Non-current Liabilities 10,482.5 24.7% Total Liabilities 16,718.5 39.5% Total Equity 25,658.7 60.5% Total Equity and Liabilities 42,377.2 100.0% Key Indices A/R Turnover Days Inventory Turnover Days 13 1Q18 90	Amount % Amount % 11,505.4 28.0% 10,519.4 25.3% 29,652.8 72.0% 31,141.2 74.7% 41,158.2 100.0% 41,660.6 100.0% 7,008.0 19.1% 6,480.1 15.6% 9,098.2 22.1% 11,026.5 17.0% 16,106.2 39.1% 17,506.6 42.0% 25,052.0 60.9% 24,154.0 58.0% 41,158.2 100.0% 41,660.6 100.0% 4Q17 1Q17
	86 83
	15 16

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Consolidated Statement of Cash Flows (unaudited)

(NT $ Millions)	1Q18	1Q17
Cash and Cash Equivalents at Beginning of Period	5,395.0	5,617.4
Net Cash Generated from(used in) Operating Activities	1,517.1	2,619.7
Net Cash Generated from(used in) Investing Activities	-1,611.3	-1,246.6
Net Cash Generated from(used in) Financing Activities	281.3	-1,754.2
Effect of Exchange Rate Change on Cash	22.9	-81.6
Cash and Cash Equivalents at End of Period	5,605.2	5,154.6
Free Cash Flow	-12.3	1,083.0

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1Q18 Capital Expenditures (unaudited)

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CapEx
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1Q18 CapEx Breakdown
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Final Test
(M NTD$)
34%
6,000
5,249.8
5,000
4,000 Assembly
Wafer
3,000 1%
1,955.0 Sort
2,000 1,158.7 56% Burn-In
1%
1,000
Others
0
2017 Q4'17 Q1'18 8%
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Company website

• http://www.kyec.com.tw

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