OSE — Interim / Quarterly Report 2018

Nov 30, 2018

==> picture [192 x 354] intentionally omitted <==

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

（2329）

==> picture [169 x 91] intentionally omitted <==

Summary

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

==> picture [720 x 34] intentionally omitted <==

==> picture [169 x 91] intentionally omitted <==

Company Overview

==> picture [720 x 159] intentionally omitted <==

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

Company Profile

• Established Date：1971/6

• Issued Capital：NTD 5.523 Billion

• Chairman：Edward Duh

• President：Tony Tung

• Product and Service：

• IC Packaging and Testing Services

• Electronics Manufacturing Services(EMS/CEM)

==> picture [419 x 103] intentionally omitted <==

==> picture [720 x 34] intentionally omitted <==

==> picture [169 x 91] intentionally omitted <==

Financial Performance

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

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	Q3/2018 % 4,112,318 100.00% 173,201 4.21% (48,976) (1.19%) (41,837) (1.02%) 10,465 0.25% - - (31,372) (0.76%) (0.06) - 357,532 8.69%	Q2/2018 % 3,730,658 100.00% 113,940 3.05% (102,493) (2.75%) (43,730) (1.17%) (823) (0.02%) - - (44,553) (1.19%) (0.06) - 351,862 9.43%	Variance	Q1~Q3/2018 % 10,981,666 100.00% 168,283 1.53% (481,056) (4.38%) (451,691) (4.11%) 279,158 2.54% - - (172,533) (1.57%) (0.31) - 743,049 6.77%
			10.23% 52.01% 52.22% 4.33% 1371.57% - 29.58% 0.00% 1.61%

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

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	Q3/2018 % 4,112,318 100.00% 173,201 4.21% (48,976) (1.19%) (41,837) (1.02%) 10,465 0.25% - - (31,372) (0.76%) (0.06) - 357,532 8.69%	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%) (0.17) - 339,024 9.55%	Variance 15.84% 85.30% 57.37% 41.59% 147.10% - 66.57% 64.71% 5.46%

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

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~Q3/2018 % 10,981,666 100.00% 168,283 1.53% (481,056) (4.38%) (451,691) (4.11%) 279,158 2.54% - - (172,533) (1.57%) (0.31) - 743,049 6.77%	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%) (413,631) (4.00%) (0.75) - 812,444 7.87%	Variance 6.38% 6.01% 4.62% 2.64% 454.71% 100.00% 58.29% 58.67% (8.54%)

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

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	1,941,149 2,066,419 2,153,983 2,036,917 1,788,841 2,174,224 2,415,145 57% 61% 61% 57% 57% 58% 59% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Revenue % of Total Revenue

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

Electronics Manufacturing Services

NTD)	NTD)	NTD)	NTD)	NTD)	NTD)	NTD)
1455791 1,526,680 1,556,434 1,697,173
,, 1,309,456 1,395,918 1,349,849
43% 39% 39% 43% 43% 42% 41%

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

Semiconductor Group

-Percentage of revenue by product application

==> picture [622 x 326] intentionally omitted <==

----- Start of picture text -----

100%
5% 4% 4% 6% 6% 6% 6%
24%
27%
80% 28% 28% 27% 27% 28%
60%
40%
71%
67% 69% 67% 67% 67% 66%
20%
0%
Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018
Memory Related Logic IC IC Testing
----- End of picture text -----

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

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	Q3/2018 929,802 362,557 687,422 7,157,658 16,935,212 3,104,857 1,359,617 1,608,761 11,446,487 5,488,725 357,532 62 Days 37 Days	Q2/2018 980,380 394,454 667,938 7,303,202 16,673,869 3,108,250 1,462,964 1,494,267 11,150,158 5,523,711 351,862 63 Days 36 Days	Variance (5.16%) (8.09%) 2.92% (1.99%) 1.57% (0.11%) (7.06%) 7.66% 2.66% (0.63%) 1.61%

==> picture [720 x 34] intentionally omitted <==

==> picture [52 x 95] intentionally omitted <==

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	Q3/2018 929,802 362,557 430,479 7,157,658 16,935,212 3,104,857 1,359,617 1,608,761 11,446,487 5,488,725 357,532 62Days 37Days	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	Variance (33.34%) (26.37%) (38.79%) (9.93%) (0.52%) 9.12% (15.79%) (22.16%) 4.08% (8.92%) 5.46%

==> picture [720 x 34] intentionally omitted <==

==> picture [169 x 91] intentionally omitted <==

Q & A

==> picture [720 x 34] intentionally omitted <==

==> picture [720 x 540] intentionally omitted <==

----- Start of picture text -----

Micro SD Process Flow
SMT
Wafer Grinding Wafer Saw Die Attach 1
Epoxy Curing 1
Die Attach 2
Epoxy Curing 2 Plasma Clean Wire Bonding
Back Side
Plasma Clean Molding Post Mold Curing
Marking
Top Side
Marking Laser Cutting V Saw Singulation
Memory Test Ship out
----- End of picture text -----

==> picture [169 x 91] intentionally omitted <==

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.

==> picture [720 x 34] intentionally omitted <==