Primax — Call Transcript 2015

May 13, 2015

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Primax Electronics Ltd. (4915 TT)

1Q 2015 Earnings Conference Call

CFO Yi Pin Lee

13 May 2015

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1Q15 Result

Amount�NTD M	Q1 15		Q4 14	Q1 14	QoQ	YoY
Net Sales	12,958		13,435	11,603	-3.6%	11.7%
COGS Gross Profit	11,526		11,849 1,586	10,178 1,425
	1,432
Gross Margin	11.1%		11.8%	12.3%	-0.8%	-1.2%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	1,059		1,263 9.4% 323 2.4% 102 425 85	927 8.0% 497 4.3% (51) 446 101	-1.2% 15.5% 0.5% 15.6%
	8.2%					0.2% -24.9%
	373
	2.9%					-1.4%
	118
	492					10.1%
	114
Net Income	378		340	345	11.1%	9.5%
Net Margin Net income attributed to Primax EPS (NT$)	2.9%		2.5% 332 0.76	3.0% 323 0.75	0.4%	-0.1%
	368
	0.85

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1Q15 Statement of Financial Position

	Selected items from Balance Sheet (Amount�NTD M) Cash Accounts receivable Inventory Total Current Assets Fixed Assets Total Assets Accounts Payable S-T Borrowings CPLTD Total Current Liabilities L-T Borrowings Total Liabilities Total Equity	1Q15	1Q15		Amt % 6,264 24% 7,682 29% 4,413 17% 19,272 73% 3,479 13% 26,546 100% 9,687 37% 2,926 11% 600 2% 15,990 60% 1,200 5% 17,514 66% 9,032 34% 56 80 38 14 120.5 66.0 18.27 1Q14
		Amt 6,864 10,299 5,534 24,201 5,016	%
			20% 30% 16% 71% 15%
		33,919	100%
		11,707 4,209 604 19,933 1,328	35% 12% 2% 59% 4%
		21,984 11,935	65% 35%
	Key Indices AR Turnover (days) AP Turnover (days) Inventory Turnover (days) Cash Conversion Cycle (days) Current Ratio (%) Total Liabilities -to-Assets Ratio (%) Book Value Per Share (NT$)	63 85 39 18 121.4 64.8 21.64

1Q15 Statement of Cash Flows

	Amount�NTD M	1Q15	1Q14 342 446 295 1,399 (1,973) 601 (427) (2,474) (142) (2,330) (2) 3,579 1 1,861 1,720 (2) 1,447 (3) 4,787 6,230
	From Operation	(1,149)
	- Income before tax - Depreciation and amortization - Notes and Account receivable - Notes and Account payable - Inventory - Other Operating Sources / (Uses)	492 340 759 (1,307) (310) (1,123)
	From Investment	(580)
	- Fixed Assets - Acquisition of Tymphany's 70% shareholding - Other Investing Sources / (Uses)	(540) (39) (1)
	From Financing	1,803
	- Exercise of ESOP - S-T Borrowings - L-T Borrowings - Other Financing Sources / (Uses)	14 1,754 (7) 41 73 (16) 6,814
	Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year
	Ending Cash Balance	6,871

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Thank you!

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Safe Harbor Notice

– We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding, among other things, our financial conditions, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties, and assumptions about us

– We undertake no obligation to publicly update or revise any forwardlooking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forwardlooking statements.

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