OSE — Call Transcript 2020

Dec 10, 2020

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華泰電子股份有限公司 Orient Semiconductor Electronics ,Ltd.

（股票代號：2329）

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Disclaimer

The presentation and the relevant information mentioned in this material have been compiled from both internal and external resources. These forward looking statements involve known and unknown risks, uncertainties and other factors, including price variation, competition, global economy, exchange rate movement and market demand, which may cause actual results to differ materially from those implied by such forward-looking statements. The forward looking statements expressed in this material reflect the Company’s current view about the future as of today. The Company is not responsible for any updates if there are any changes in the future.

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Summary

Part1 Company Overview Part2 Financial Performance

Part3 Q&A

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Company Overview

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Company Profile

• Established Date：1971/06

• Listing Date：1994/04

• Issued Capital：NTD 5.57 Billion

• Chairman & President：Tony Tung

• Product and Service：

• IC Packaging and Testing Services

  • Memory IC

  • Logic IC

• Electronics Manufacturing Services(EMS/CEM)

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Financial Performance

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (QoQ)

(Thousands of NTD) Net revenue Gross profit Operating income Income before tax Income tax(expense) Non controlling interests Common stockholders of the parent Basic EPS (in NTD) EBITDA	Q3/2020 % 3,264,023 100.00% 253,881 7.78% 54,363 1.67% 16,838 0.52% (5,384) (0.16%) - - 11,454 0.35% 0.02 - 413,433 12.67%	Q2/2020 % 3,499,929 100.00% (74,485) (2.13%) (313,243) (8.95%) (322,852) (9.22%) 48,406 1.38% - - (274,446) (7.84%) (0.50) - 80,734 2.31%	Variance (6.74%) 440.85% 117.35% 105.22% (111.12%) 104.17% - 412.09%	Q1~Q3/2020 % 10,406,485 100.00% 401,586 3.86% (265,373) (2.55%) (295,506) (2.84%) 40,931 0.39% - - (254,575) (2.45%) (0.46) - 915,363 8.80%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (YoY)

(Thousands of NTD) Net revenue Gross profit Operating income (loss) Income (loss) before tax Income tax (expense) gains Non controlling interests Common stockholders of the parent Basic EPS (in NTD) EBITDA	Q3/2020 % 3,264,023 100.00% 253,881 7.78% 54,363 1.67% 16,838 0.52% (5,384) (0.16%) - - 11,454 0.35% 0.02 - 413,433 12.67%		Q3/2019 % 4,971,024 100.00% 575,422 11.58% 313,533 6.31% 313,534 6.31% (63,018) (1.27%) - - 250,516 5.04% 0.45 - 733,223 14.75%	Variance (34.34%) (55.88%) (82.66%) (94.63%) 91.46% - (95.43%) (95.56%) (43.61%)

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CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME(Accumulated ,YoY)

(Thousands of NTD) Net revenue Gross profit Operating income (loss) Income (loss) before tax Income tax (expense) gains Non controlling interests Common stockholders of the parent Basic EPS (in NTD) EBITDA		Q1~Q3/2020 %		Q1~Q3/2019 % 13,416,556 100.00% 1,433,832 10.69% 675,522 5.03% 680,787 5.07% (138,742) (1.03%) - - 542,045 4.04% 0.98 - 1,945,371 14.50%	Variance (22.44%) (71.99%) (139.28%) (143.41%) 129.50% - (146.97%) (146.94%) (52.95%)
		10,406,485 100.00% 401,586 3.86% (265,373) (2.55%) (295,506) (2.84%) 40,931 0.39% - - (254,575) (2.45%) (0.46) - 915,363 8.80%

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IC Packaging and Testing Services

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(Thousands of NTD)
3,500,000 100%
Worldwide
90%
2,868,633 2,920,965 Lockdown
3,000,000
80%
2,383,583 2,354,303
2,084,640
2,500,000 70%
2,127,892
1,567,658 60%
2,000,000
63%
61%
59% 57% 58% 64% 50%
1,500,000
40%
45%
30%
1,000,000
20%
500,000
10%
- 0%
Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020
Revenue % of Total Revenue
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Electronics Manufacturing Services

(Thousands of NTD)

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2,500,000 100%
90%
2,050,059
2,000,000 1,932,271 80%
1,744,286
1,680,927
1,512,389 70%
1,514,641
1,500,000 60%
1,179,383
50%
55%
1,000,000 40%
43%
41% 42%
39% 37% 30%
36%
500,000 20%
10%
- 0%
Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020
Revenue % of Total Revenue
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Semiconductor Group -Percentage of revenue by product application

0% 20% 40% 60% 80% 100%
		5%			4%			4%			4%			6%			7%			6%
		20%			17%			18%			20%			17%			21%			17%
		75%			79%			78%			76%			77%			72%			78%
	Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Memory Related Logic IC IC Testing

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Key Balance Sheet Items & Index

(Thousands of NTD) Cash and cash equivalents Financial assets-Current Financial assets-Noncurrent & Investments-equity method Property, plant, and equipment Total assets Short-term loans & Short-term notes payable Current portion of long-term loans Long-term loans Total liabilities Total stockholders’ equity Quarterly EBITDA Index Debt ratio Accounts receivable turnover days(Q3) Inventory turnover days(Q3)		Q3/2020 1,024,525 73,502 676,886 5,591,222 14,022,171 2,539,490 844,176 1,184,527 8,275,172 5,746,999 413,433

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Key Balance Sheet Items & Index

(Thousands of NTD) Cash and cash equivalents Financial assets-Current Financial assets-Noncurrent & Investments-equity method Property, plant, and equipment Total assets Short-term loans & Short-term notes payable Current portion of long-term loans Long-term loans Total liabilities Total stockholders’ equity Quarterly EBITDA Index Debt ratio Accounts receivable turnover days(Q1~Q3) Inventory turnover days(Q1~Q3)		Q3/2020 1,024,525 73,502 676,886 5,591,222 14,022,171 2,539,490 844,176 1,184,527 8,275,172 5,746,999 413,433

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Q&A

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Thank You!

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