OSE — Interim / Quarterly Report 2019

Dec 5, 2019

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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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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

• 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)

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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	Q3/2019 % 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%	Q2/2019 % 4,549,560 100.00% 564,876 12.42% 286,198 6.29% 289,073 6.35% (62,862) (1.38%) - - 226,211 4.97% 0.41 - 650,796 14.30%	Variance 9.26% 1.87% 9.55% 8.46% 0.25% 10.74% - 12.67%	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 - 1,806,629 13.47%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (YoY)

(Thousands of NTD) Q3/2019 % Net revenue 4,971,024 100.00% Gross profit 575,422 11.58% Operating income (loss) 313,533 6.31% Income (loss) before tax 313,534 6.31% Income tax (expense) gains (63,018) (1.27%) Non controlling interests - - Common stockholders of the parent 250,516 5.04% Basic EPS (in NTD) 0.45 - EBITDA 733,223 14.75%	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%	Variance 20.88% 232.23% 740.18% 849.42% (702.18%) - 898.53% 64.71% 105.08%

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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~Q3/2019 % 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 - 1,806,629 13.47%	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%	Variance 22.17% 752.04% 240.42% 250.72% (149.70%) - (414.17%) (416.13%) 143.14%

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IC Packaging and Testing Services

2,868,633 2,920,965	2,868,633 2,920,965	2,868,633 2,920,965	2,868,633 2,920,965	2,868,633 2,920,965	2,868,633 2,920,965	2,868,633 2,920,965
2,415,1452,637,563 2,383,583
1,788,8412,174,224
58% 59% 63% 61% 63% 59%
57%

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Electronics Manufacturing Services

(Thousands of NTD)

- 500,000 1,000,000 1,500,000 2,000,000 2,500,000	1,349,8491,556,434 1,697,173 1,568,963 1,512,389 1,680,927 2,050,059 43% 42% 41% 37% 39% 37% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Revenue % of Total Revenue

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Semiconductor Group -Percentage of revenue by product application

0% 20% 40% 60% 80% 100%
		6%			6%			5%			5%			5%			4%			4%
		25%			25%			26%			19%			20%			17%			18%
		69%			69%			69%			76%			75%			79%			78%
	Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 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)	Q3/2019 1,192,186 146,772 683,598 6,469,990 16,481,453 2,306,724 1,325,069 1,266,110 10,434,467 6,046,986 733,223 63.31% 63Days 30Days	Q2/2019 980,380 394,454 667,938 7,303,202 16,673,869 3,108,250 1,462,964 1,494,267 11,150,158 5,523,711 650,796 64.90% 63Days 35Days	Variance 21.60% (62.79%) 2.34% (11.41%) (1.15%) (25.79%) (9.43%) (15.27%) (6.42%) 9.47% 12.67%

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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)	Q3/2019 1,192,186 146,772 683,598 6,469,990 16,481,453 2,306,724 1,325,069 1,266,110 10,434,467 6,046,986 733,223 63.31% 67Days 36Days	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 67.66% 69Days 40Days	Variance
			28.22% (59.52%) 58.80% (9.61%) (2.68%) (25.71%) (2.54%) (21.30%) (8.84%) 10.17% 105.08%

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Q&A

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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
Plasma Clean Molding Post Mold Curing Back Side
Marking
Top Side
Marking Laser Cutting V Saw Singulation
Memory Test Ship out
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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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