Primax — Earnings Release 2020

Oct 29, 2020

Primax Electronics 4915 TT

29 Oct 2020

==> picture [234 x 215] intentionally omitted <==

3Q20 Earnings Conference

==> picture [147 x 52] intentionally omitted <==

3Q20 Result

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

、 、 Record EPS 2[nd] High GM OPM

Amount：NTD M	Q3 20		Q2 20	Q3 19	QoQ	QoQ	QoQ	YoY
Net Sales	18,907		16,251	25,291	16.3%			-25.2%
COGS Gross Profit	16,452		14,410 1,842	22,280 3,010		33.3%
	2,454							-18.5%
Gross Margin	13.0%		11.3%	11.9%		1.6%		1.1%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	1,558		1,444 8.9% 398 2.4% 204 602 132	1,799 7.1% 1,212 4.8% (45) 1,167 263		-0.6% 125.1% 2.3% 76.6%
	8.2% 896							1.1% -26.1%
	4.7% 168							-0.1%
	1,063							-8.9%
	235
Net Income	828		470	904		76.1%		-8.3%
Net Margin Net income attributed to Primax EPS (NT$)	4.4% 773 1.73		2.9% 503 1.13	3.6% 764 1.72	1.5% 53.7%			0.8% 1.2%

==> picture [89 x 31] intentionally omitted <==

3Q20 YTD Result

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

**0 YTD Result **
Amount：NTD M	Q3 20 YTD		Q3 19 YTD	YoY
Net Sales	48,682		55,636	-12.5%
COGS Gross Profit	42,861		49,141 6,495
	5,821			-10.4%
Gross Margin	12.0%		11.7%	0.3%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	4,322		4,667 8.4% 1,828 3.3% 204 2,032 458
	8.9% 1,499			0.5% -18.0%
	3.1% 432			-0.2%
	1,931 425			-4.9%
Net Income	1,506		1,574	-4.3%
Net Margin Net income attributed to Primax EPS (NT$)	3.1% 1,552 3.48		2.8% 1,533 3.45	0.3% 1.3%

==> picture [89 x 31] intentionally omitted <==

Quarterly Sales

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

Amount：NTD M

==> picture [699 x 341] intentionally omitted <==

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

30,000
25,291
25,014
25,000
19,608
20,000 18,907
18,522
16,704
16,251
15,000 13,641
13,524
10,000
5,000
0
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
----- End of picture text -----

==> picture [89 x 31] intentionally omitted <==

、 Gross Profit Gross Margin

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

==> picture [738 x 409] intentionally omitted <==

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

Gross Profit Gross Margin
Amount：NTD M ：NTD M NTD M
3,500
16.0%
3,010
2,936
3,000
14.0%
13.0%
2,500 2,454 12.3%
2,342 2,271 11.9% 11.8% 11.9% 11.7%
12.0% 11.2% 11.3% [11.3% ]
2,000 1,871
1,842
1,614 10.0%
1,525
1,500
8.0%
1,000
6.0%
500
0 4.0%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
----- End of picture text -----

Amount：NTD M ：NTD M NTD M

==> picture [89 x 31] intentionally omitted <==

、 Operating Income Operating Margin

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

==> picture [747 x 407] intentionally omitted <==

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

Operating Income Operating Margin
Amount：NTD M
7.0%
1,300
1,212
1,200
6.0%
1,100
1,000
934 4.8%
896 5.0% 4.7%
900
800 732
4.0% 3.7% 3.7%
700
3.1%
570
600
3.0% 2.4%
2.4%
500
396 398
1.6%
400 1.5%
2.0%
300
221 205
200
1.0%
100
0
0.0%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
----- End of picture text -----

==> picture [89 x 31] intentionally omitted <==

EPS

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

Amount：NTD

==> picture [691 x 389] intentionally omitted <==

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

1.80 1.72 1.73
1.60
1.50
1.35
1.40
1.20 1.13
1.06
1.00 0.93
0.80
0.80
0.62
0.60
0.40
0.20
0.00
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
----- End of picture text -----

==> picture [89 x 31] intentionally omitted <==

3Q20 Balance Sheet

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

	Selected items from Balance Sheet (Amount：NTD M) Cash Notes and Accounts receivable Inventory Total Current Assets Fixed Assets	2020/9/30	2020/9/30		2019/9/30
		Amt 10,839 14,807 8,790 37,470 6,505	%		Amt % 7,109 13% 23,662 42% 10,223 18% 43,243 77% 6,469 12%
			22% 30% 18% 75% 13%
	Total Assets	50,179	100%		55,984 100%
	Notes and Accounts Payable S-T Borrowings CPLTD Total Current Liabilities L-T Borrowings	17,114 6,530 0 31,201 364	34% 13% 0% 62% 1%		22,539 40% 8,315 15% 28 0% 37,758 67% 0 0%
	Total Liabilities Total Equity	35,403 14,776	71% 29%		41,959 75% 14,024 25%

==> picture [89 x 31] intentionally omitted <==

3Q20 Cash Flow

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

0 Cash Flow
Amount：NTD M	Q3 20 YTD	Q3 19 YTD
From Operation	2,049	(704)
- Income Before Tax - Depreciation and Amortization - Notes and Accounts Receivable - Notes and Accounts Payable - Inventory - Other Operating Sources / (Uses)	1,931 1,682 4,413 (6,630) 1,416 (763)	2,032 1,640 (7,542) 4,244 (2,892) 1,814
From Investment	(2,131)	(3,219)
- Fixed Assets - Other Investing Sources / (Uses)	(2,008) (123)	(3,168) (51)
From Financing	4,330	6,020
- S-T Borrowings - L-T Borrowings - Cash Dividend - Other FinancingSources/ (Uses)	5,438 186 (1,077) (216)	7,348 (63) (1,095) (171)
Net Cash Position Change Effect of Foreign Currency Exchange Translation Cash at Beginning of Year	4,247 (109) 6,701	2,097 22 4,990
Ending Cash Balance	10,839	7,109

==> picture [89 x 31] intentionally omitted <==

4Q20 Outlook

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

 Stable Topline Outlook

• Home Audio New Project Go MP

• StreamCam New Project Go MP

• Solid Financial Management to Mitigate FX Risk

==> picture [89 x 31] intentionally omitted <==

2021 Outlook

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

• Covid-Deferred New Projects to Contribute Revenues and Profits

• Tymphany Profit Recovery : New Headphone & Premium Audio

• New Visual Technology :

、 、 Automotive Conference IoT

• Stable PC Cash Cow :

、 Smart Home Dockings to Contribute New Revenues

• Thailand Manufacturing Site Diversifying Concentration Risk

==> picture [89 x 31] intentionally omitted <==

Note

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

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

– Quarter Record Historical Record High

==> picture [89 x 31] intentionally omitted <==

Safe Harbor Notice

==> picture [34 x 36] intentionally omitted <==

==> picture [35 x 38] intentionally omitted <==

==> picture [33 x 32] intentionally omitted <==

– 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.

==> picture [89 x 31] intentionally omitted <==