LTC — Interim / Quarterly Report 2013

Feb 26, 2014

4Q13 Earnings Conference 2006 IR Strategy

March 27, 2014

Safe Harbor Notice

● Lite-On Technology’s statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements.

• The numbers of the presentation are prepared under IFRS.

4Q13 Results

4Q13 Results	4Q13 Results	4Q13 Results	4Q13 Results	4Q13 Results	4Q13 Results	4Q13 Results
In NT Millions QoQ YoY 4Q13 4Q12 3Q13
	4Q13
	Amount %	Amount % % Amount % %
Net Sales	59,359 100.0	57,078 100.0 4.0 52,897 100.0 12.2
COGS	51,488 86.7	48,742 85.4 5.6 45,160 85.4 14.0
Gross Profit	7,871 13.3	8,336 14.6 -5.6 7,737 14.6			1.7
Operating Expense	5,254 8.9	5,291 9.3 -0.7 4,867 9.2 7.9
Operating Profit	2,617 4.4	3,045 5.3 -14.0 2,870 5.4 -8.8
Other Income/Expense	673 1.1	-9 0.0 - 451 0.9 49.1
Profit Before Tax	3,290 5.5	3,036 5.3 8.4 3,321 6.3 -0.9
Income Tax Expenses	833 1.4	720 1.3 15.7 561 1.1 48.4
Non-Controlling Interest	-62 -0.2	-103 -0.2 - 458 0.9 -
Profit Attributable to Parent	2,519 4.2	2,420 4.2	4.1	2,317 4.4		8.7
After Tax EPS 1.09 1.06 1.02 Shares:(mm shares) 2,287 2,284 2,265	1.09

Other Incomes/Other Expenses

In NT$ Millions 4Q13 2013 Net Interest 193 536 81 214 FX Others 398 728 Total OIOE 673 1,477

2013 Performance

In NT Millions	2013	YoY 2012	YoY 2012	YoY 2012	YoY 2012
	Amount %	Amount % %
Net Sales	213,214 100.0	216,047 100.0 -1.3
COGS	182,714 85.7	185,489 85.9 -1.5
Gross Profit	30,501 14.3	30,558	14.1	-0.2
Operating Expense	20,458 9.6	19,680 9.1 4.0
Operating Profit	10,042 4.7	10,878 5.0 -7.7
Other Income/Expense	1,477 0.7	952 0.4 55.2
Profit Before Tax	11,520 5.4	11,831 5.5 -2.6
Income Tax Expenses	2,629 1.2	2,454 1.1 7.1
Non-Controlling Interest	136 0.1	1,989 0.9 -93.2
Profit Attributable to Parent	8,755 4.1	7,402	3.4		18.3
After Tax EPS 3.83 3.25 Shares:(mm shares) 2,287 2,284	3.83

Revenue Contribution by Segment

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nicss
Optoelectro
nicss
Optoelectro
& Storage &
Storage
Communications
Communications
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Optoelectronics & Communications Optoelectronics, Camera Modules, handheld Casing and mechanical products

Information Technology Products

Products used in NB, DT, Tablets, servers, networking and MFP

Storage Optical disk drives and solid state drives.

Others

LED application-LED traffic signals, street lights, general illuminations and automotive electronics. Green energy products and services.

4Q13 Revenue by Segment

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In NT Millions
Revenue By Segment 4Q13 4Q12 YoY
Optoelectronics & Communications 18,065 17,259 5%
Information Technology 26,574 21,970 21%
Storage 11,812 10,929 8%
Others 2,908 2,740 6%
Total 59,359 52,897 12%
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4Q13 PAT by Segment

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In NT Millions
Profit After Tax By Segment 4Q13 4Q12 YoY
Optoelectronics & Communications 570 1,056 -46%
Information Technology 1,977 1,669 18%
Storage 598 713 -16%
Others (688) (678) -2%
Total 2,457 2,760 -11%
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*Note: PAT numbers in Other Segment included employee bonus expenses, ~ 15% of PBT and income taxes

Revenue Contribution by Segment

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Optoelectronicss Optoelectronicss
& &
Storage
Communications Storage Communications
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Optoelectronics & Communications Optoelectronics, Camera Modules, handheld Casing and mechanical products

Information Technology Products

Products used in NB, DT, Tablets, servers, networking and MFP

Storage Optical disk drives and solid state drives.

Others

LED application-LED traffic signals, street lights, general illuminations and automotive electronics. Green energy products and services.

2013 Revenue by Segment

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In NT Millions
Revenue By Segment 2013 2012 YoY
Optoelectronics & Communications 66,334 68,369 -3%
Information Technology 90,554 84,672 7%
Storage 44,382 50,463 -12%
Others 11,944 12,543 -5%
Total 213,214 216,047 -1%
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2013 PAT by Segment

In NT Millions

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*Note: PAT numbers in Other Segment included employee bonus expenses, ~ 15% of PBT and income taxes

2[nd] Half loaded despite weakness in subsidiaries

0 10,000 20,000 30,000 40,000 50,000 60,000 Million NT$	59,359 52,897 46,768 50,009 57,078 55,469 55,070 52,610 14.6% 13.3% 14.7% 14.3% 14.8% 14.6% 14.3% ~~1~~3.3% 8.9% 9.3% 9.2% 8.7% 9.3% 10.0% 10.5% 9.2% 5.1% 4.2% 4.4% 4.8% 5.6% 5.3% 5.4% 4.0% GP% OP% OPEX%

Note: 2012 Sales $216,047 M, GP 14.1%, OPEX 9.1%, OPM 5.0%, EPS 3.25 2013 Sales $213,214 M, GP 14.3%, OPEX 9.6%, OPM 4.7%, EPS 3.83

Balance Sheet

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Highlights

4Q13: Top/bottom-line expansion

• 4Q revenue of NT$59.4 billion, up 4% Q/Q and 12% Y/Y, thanks to the yearly growth in Cloud Computing, Camera Modules, LED/Lighting, SSD, Automobile Electronics and Gaming, with EPS of NT$1.09

Stable Core Business Development in 2013

• 6 growth drivers accounted for 40%+ of sales, posted a yearly growth of 40% with better margin contribution in 2013.

• 2013 GPM, OPM were 14.3% and 4.7%, up 0.2% and down 0.3% Y/Y respectively, due to the weakness in subsidiaries, whereas the turnaround plans in place.

2013 Dividend plan

• NT$ 2.76 dividend per share, with NT$ 2.71 cash and NT$0.05 stock dividend per share, resulting in payout ratio of 72% and 6.3% cash yields

• Net cash of NT$23B, after paid down NT$6.3Bn of L-T debt

Strengthen Core Competence

• BOD has approved to own 100% stake of LarView to further strengthen our competence in Camera Module

Thank You!