OSE — Interim / Quarterly Report 2017

Dec 21, 2017

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

（2329）

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Summary

Part 1 Company Overview Part 2 Financial Performance Part 3 Q & A

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Company Overview

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Company Profile

• Established Date：1971/6

• Issued Capital：NTD 8.06 Billion

• Chairman：Edward Duh

• President：Tony Tung

• Product and Service：

• IC Packaging and Testing Services

• 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 (loss) income Income (loss) before tax Income tax gains (expense) Non controlling interests Common stockholders of the parent Basic EPS (in NTD) EBITDA	Q3/2017 % 3,549,901 100.00% 93,469 2.63% (114,876) -3.24% (71,623) -2.02% (22,218) -0.63% - - (93,841) -2.64% (0.11) - 339,024 9.55%	Q2/2017 % 3,375,875 100.00% 21,696 0.64% (186,757) -5.53% (168,762) -5.00% 35,112 1.04% - - (133,650) -3.96% (0.17) - 258,145 7.65%	Variance	Q1~Q3/2017 % 10,322,716 100.00% 158,744 1.54% (504,357) -4.89% (463,956) -4.49% 50,325 0.49% (1,227) -0.01% (412,404) -4.00% (0.51) - 812,444 7.87%
			5.15% 330.81% 38.49% 57.56% -163.28% - 29.79% 35.29% 31.33%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (YoY)

(Thousands of NTD) Net revenue Gross profit Operating (loss) income Income (loss) before tax Income tax gains (expense) Non controlling interests Common stockholders of the parent Basic EPS (in NTD) EBITDA	Q3/2017 % 3,549,901 100.00% 93,469 2.63% (114,876) -3.24% (71,623) -2.02% (22,218) -0.63% - - (93,841) -2.64% (0.11) - 339,024 9.55%	Q3/2016 % 3,809,463 100.00% 409,962 10.76% 124,133 3.26% 98,788 2.59% (19,164) -0.50% 4,065 0.11% 75,559 1.98% 0.09 - 513,632 13.48%	Variance -6.81% -77.20% -192.54% -172.50% 15.94% -100.00% -224.20% -222.22% -33.99%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Accumulated ,YoY)

(Thousands of NTD) Net revenue Gross profit Operating (loss) income Income (loss) before tax Income tax gains (expense) Non controlling interests Common stockholders of the parent Basic EPS (in NTD) EBITDA	Q1~Q3/2017 % 10,322,716 100.00% 158,744 1.54% (504,357) -4.89% (463,956) -4.49% 50,325 0.49% (1,227) -0.01% (412,404) -4.00% (0.51) - 812,444 7.87%	Q1~Q3/2016 % 12,045,635 100.00% 1,615,331 13.41% 769,634 6.39% 613,995 5.10% (108,951) -0.90% 5,944 0.05% 499,100 4.14% 0.62 - 1,793,744 14.89%	Variance -14.30% -90.17% -165.53% -175.56% 146.19% -120.64% -182.63% -182.26% -54.71%

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IC Packaging and Testing Services

(Thousands of NTD)

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000	2,710,619 2,930,136 2,708,743 2,232,516 1,941,149 2,066,419 2,153,983 67% 70% 71% 60% 57% 61% 61% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Revenue % of Total Revenue

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Electronics Manufacturing Services

(Thousands of NTD)

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2,000,000 100%
90%
1,750,000
1,508,182 80%
1,455,791
1,500,000 1,395,918
1,346,232 1,309,456 70%
1,249,185
1,250,000
60%
1,100,720
1,000,000 50%
40%
750,000
43%
40% 39% 39% 30%
500,000 33%
30%
29% 20%
250,000
10%
0 0%
Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017
Revenue % of Total Revenue
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Semiconductor Group

-Percentage of revenue by product application

0% 20% 40% 60% 80% 100%
		4%			5%			5%			5%			5%			4%			4%
		18%			19%			18%			24%			28%			24%			27%
		78%			77%			78%			71%			67%			71%			69%
	Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 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 & Lease payable-Current Long-term loans & Lease payable-Non current Total liabilities Total stockholders’ equity (including Non-controlling interests) Quarterly EBITDA Index Accounts receivable turnover days Inventory turnover days	Q3/2017 1,394,742 492,396 703,237 7,946,426 17,023,756 2,845,254 1,614,499 2,066,744 10,997,377 6,026,379 339,024 61 Days 36Days	Q2/2017 1,176,034 250,206 691,171 8,279,125 16,711,065 2,229,401 1,663,173 2,418,764 10,589,424 6,121,641 258,145 62Days 37Days	Variance 18.60% 96.80% 1.75% -4.02% 1.87% 27.62% -2.93% -14.55% -34.19% -1.56% 31.33%

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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 & Lease payable-Current Long-term loans & Lease payable-Non current Total liabilities Total stockholders’ equity (including Non-controlling interests) Quarterly EBITDA Index Accounts receivable turnover days Inventory turnover days	Q3/2017 1,394,742 492,396 703,237 7,946,426 17,023,756 2,845,254 1,614,499 2,066,744 10,997,377 6,026,379 339,024 61Days 36Days	Q3/2016 828,564 376,411 699,940 9,094,348 17,770,002 2,307,719 1,337,881 2,164,751 11,140,283 6,629,719 513,632 63Days 36Days	Variance 68.33% 30.81% 0.47% -12.62% -4.20% 23.29% 20.68% -4.53% -1.28% -9.10% -33.99%

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Q & A

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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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