Primax — Earnings Release 2019

Sep 27, 2019

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Primax Electronics (4915 TT)
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2Q19 Earnings Conference

31 Jul 2019

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1Q19 Result

Record Q2 Topline

Amount：NTD M	Q2 19		Q1 19	Q2 18	QoQ	YoY 12.9% -0.4% -0.1% -0.1% -0.3% 10.1% 7.6% -0.1% 22.0%
Net Sales	16,704		13,641	14,798	22.5%
COGS Gross Profit	14,833		12,028 1,614	13,081 1,716
	1,871
Gross Margin	11.2%		11.8%	11.6%	-0.6%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	1,475		1,393 10.2% 221 1.6% 156 377 85	1,320 8.9% 396 2.7% 47 443 92	-1.4%
	8.8% 396
					79.2%	-0.1%
	2.4% 92
					0.8% 29.2%
	488
	110
Net Income	378		293	351	28.9%
Net Margin Net income attributed to Primax EPS (NT$)	2.3% 413 0.93		2.1% 356 0.80	2.4% 339 0.76	0.1% 16.1%

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Quarterly Sales

Amount ： NTD M

25,000

20,000

15,000

10,000

5,000

0

13,835

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14,997

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19,028

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11,884

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14,798

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19,608

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18,522

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13,641

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16,704

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2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

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、 Gross Profit Gross Margin

Gross Profit

Gross Margin

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Amount ： NTD M
2,400 2,342
2,271
2,101
2,100
1,981
1,871
1,783
1,800
1,716
1,614
1,460
1,500
1,200
900
600
300
0
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
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16.0%
15.0%
14.0%
12.9% [13.2% ]
13.0%
12.3%
11.9% [12.3% ]
11.8%
12.0% 11.0% 11.6%
11.2%
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
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4

、 Operating Income Operating Margin

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Operating Income Operating Margin
Amount ： NTD M
8.0%
1,000
7.0%
900
6.0%
800
732 5.0% 4.3%
4.0%
700 3.7%
4.0%
3.1%
592 599
600 570 3.0% 2.5% 2.1% 2.7% 2.4%
1.6%
2.0%
500 475
1.0%
396 396
400
0.0%
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
300
244 -1.0%
221
200 -2.0%
-3.0%
100
-4.0%
0
-5.0%
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
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5

EPS

Amount ： NTD

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1.60
1.50
1.40
1.40
1.27
1.20
1.05 1.06
1.00 0.93
0.80 0.80
0.76
0.80
0.60
0.40
0.20
0.00
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
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2Q19 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	2019/6/30	Amt % 3,537 10% 12,939 36% 6,827 19% 25,447 70% 4,945 14% 2018/6/30
	Amt % 4,333 10% 14,325 32% 8,169 18% 30,045 68% 6,688 15%
	44,271 100%	36,432 100%
	14,592 33% 3,642 8% 68 0% 25,685 58% 205 0%	13,576 37% 689 2% 66 0% 20,718 57% 265 1%
	29,587 67% 14,684 33%	22,666 62% 13,766 38%

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2Q19 Cash Flow

Amount：NTD M	Q2 19YTD	Q2 18 YTD
From Operation	(962)	(1,989)
From Investment	(2,124)	(1,782)
From Financing	2,260	(555)
Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year	(826) 168 4,990	(4,326) 42 7,821
Ending Cash Balance	4,333	3,537

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3Q19 Outlook
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 Strong Topline Growth with Improving Earnings Structure

 Tymphany : Continuous Growth Momentum Leading by Major Headphone Projects Another Record 2H

 New Smartphone 3D Sensing Camera Module

 More New Automotive Camera Projects

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Thank you!
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10

Note

 All figures stated above are unaudited and subject to audit amendments

 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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