Primax — Earnings Release 2018

Jun 26, 2018

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Primax Electronics (4915 TT)
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1Q18 Earnings Conference

27 Apr 2018

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1Q18 Result

**18 Result **
Amount：NTD M	Q1 18	Q4 17 Q1 17 QoQ YoY
Net Sales	11,884	19,028 12,881 -37.5% -7.7%
COGS Gross Profit	10,423	16,927 11,266 2,101 1,615
	1,460
Gross Margin	12.3%	11.0% 12.5% 1.2% -0.2%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	1,216	1,626 1,082 8.5% 8.4% 1.7% 1.8% 475 534 -48.6% -54.2% 2.5% 4.1% -0.4% -2.0% 211 56 687 590 -34.0% -23.2% 109 138
	10.2% 244
	2.1% 208
	453
	107
Net Income (Loss) from Continuing Operation	346	578 452 -40.1% -23.5%
Income (Loss) from Discontinued Operations	0	0 0
Net Income	346	578 452 -40.1% -23.5%
Net Margin Net income attributed to Primax EPS (NT$)	2.9% 352 0.80	3.0% 3.5% -0.1% -0.6% 558 418 -36.9% -15.8% 1.27 0.95

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Quarterly Sales

Amount ： NTD M

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20,000
19,028
18,488
17,535
18,000
16,000
14,997
14,900
13,835
14,000 13,405
12,881
11,884
12,000
10,000
8,000
6,000
4,000
2,000
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
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、 Gross Profit Gross Margin

Gross Profit

Gross Margin

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Amount ： NTD M
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2,400
2,193
2,105 2,101
2,100
1,981
1,783
1,800
1,618
1,561
1,500 1,460
1,408
1,200
900
600
300
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
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16.0%
15.0%
14.0%
13.2%
12.9%
13.0%
12.3%
12.0% [12.5% ]
11.9%
12.0% 11.0%
11.0% 10.5% [10.5% ]
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
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、 Operating Profit Operating Margin

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Operating Profit Operating Margin
Amount ： NTD M
8.0%
1,000
7.0%
900
842
6.0%
800
4.6%
5.0% 4.3%
4.2%
3.9% 4.0%
678
700
4.0%
599 3.0% 2.8%
592
600 3.0% 2.5%
536 2.1%
2.0%
500 475
423
398 1.0%
400
0.0%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
300
244 -1.0%
200 -2.0%
-3.0%
100
-4.0%
0
-5.0%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
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EPS

Amount ： NTD

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1.60
1.40
1.40
1.28 1.27
1.19
1.20
1.05
1.02
1.00 0.95
0.91
0.80
0.80
0.60
0.40
0.20
0.00
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
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1Q18 Balance Sheet

Selected items from Balance Sheet (Amount：NTD M) Cash Notes and Accounts receivable Inventory Total Current Assets Fixed Assets Total Assets Notes and Accounts Payable S-T Borrowings CPLTD Total Current Liabilities L-T Borrowings Total Liabilities Total Equity	2018/3/31	2018/3/31		2017/03/31
	Amt 4,524 8,950 6,013 20,770 4,400	%		Amt % 4,884 16% 10,121 34% 5,397 18% 21,176 70% 4,370 15%
		15% 29% 20% 68% 14%
	30,721	100%		30,111 100%
	10,832 765 56 15,692 56	35% 2% 0% 51% 0%		11,267 37% 0 0% 216 1% 15,962 53% 111 0%
	17,251 13,471	56% 44%		17,843 59% 12,267 41%
Key Indices AR Turnover (days) AP Turnover (days) Inventory Turnover (days) Cash Conversion Cycle (days) Current Ratio (%) Total Liabilities-to-Assets Ratio (%) Return on Equity (%) (annualized)	74 113 50 11 132.4 56.2 10.4%			72 116 46 2 132.7 59.3 14.8%

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1Q18 Cash Flow

Amount：NTD M	Q1 18	Q1 17
From Operation	(1,340)	(699)
Continuing operation income before tax Discontinued operation income before tax - Income before tax - Depreciation and amortization - Notes and Accounts receivable - Notes and Accounts payable - Inventory - Other Operating Sources / (Uses)	453 0 453 390 4,117 (5,518) 755 (1,537)	590 0
		590 371 3,536 (5,626) 1,172 (742)
From Investment	(1,733)	(337)
- Fixed Assets - Changes in Equity investments under equity method - Other Investing Sources / (Uses)	(328) (1,429) 23	(300) 0 (37)
From Financing	(291)	(250)
- S-T Borrowings - L-T Borrowings - Other Financing Sources / (Uses)	(231) (108) 47	0 (274) 24
Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year	(3,365) 67 7,821	(1,286) (190) 6,360
Ending Cash Balance	4,524	4,884

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、
2Q18 2018 Outlook
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• QoQ Top-line growth

• Tymphany – Continuous growth momentum

 Expect to see Automotive new project awarded

• 2018 Upward topline trend and stabilize earnings

• structure

• Tymphany - Premium、Consumer Audio well-balanced Another record 2H

• More non-smartphone camera applications

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Thank you!
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Note

 All figures stated above are unaudited and subject to audit amendments  All number has reflected Global Tek restatement

 Record Quarter  Historical Record High

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Safe Harbor Notice
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• 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 forward-looking 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 forward-looking statements.

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