Primax — Interim / Quarterly Report 2016

Nov 10, 2016

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Primax Electronics (4915 TT)
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3Q16 Earnings Conference

10 Nov 2016

1

3Q16 Result

、 、 Record Q3 Topline Record GP OI

Amount：NTD M	Q3 16		Q2 16		Q3 15	QoQ YoY 24.1% 7.4% 1.4% 1.1% -0.3% 0.1%
Net Sales	18,488		14,900		17,221
COGS Gross Profit	16,295		13,340		15,375 1,845
	2,193		1,561
Gross Margin	11.9%		10.5%		10.7%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	1,351		1,138		1,249 7.3% 597 3.5% 109 705 217
	7.3%		7.6% 423
	842					99.1% 41.2%
	4.6%		2.8% 176			1.7% 1.1% 32.9% 12.9% 34.8% 19.4% 31.2% 17.8% 0.2% 0.3%
	(46)
	797		599 167
	214
Net Income (Loss) from Continuing Operations	583		432		488
Income (Loss) from Discontinued Operations	50		50		49
Net Income	633		483		537
Net Margin Net income attributed to Primax EPS (NT$)	3.4%		3.2% 447 1.02		3.1% 501 1.15
	562
	1.28

2

Quarterly Sales

Amount ： NTD M

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25,000
N$100bn Revenues
19,734
20,000
18,488
17,221
14,900
15,000 13,996
13,622 13,435 13,405
12,588
10,000
5,000 1 2 3
0
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
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3

、 Gross Profit Gross Margin

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Gross Profit Gross Margin
Amount ： NTD M
2,400
14.5%
2,193
2,085
2,100
13.5%
1,845
1,800
1,626 1,586 1,561 12.5%
1,447 11.9% 11.8% 11.9%
1,500
1,367 1,408
11.5%
10.9%
10.5%
1,200 10.7%
10.6% 10.5%
10.3%
10.5%
900
9.5%
600
8.5%
300
0 7.5%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
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4

、 Operating Profit Operating Margin

Operating Profit

Operating Margin

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Amount ： NTD M
6.0%
900
842
800 759
5.0%
4.6%
700
597 3.9%
600 4.0% 3.8%
3.5%
522
383 3.0% 2.8%
500
2.9% 2.7%
368 398 423 3.0% 2.4%
400 323
300 2.0%
200
1.0%
100
0 0.0%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
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5

EPS

Amount ： NTD

1.28 1.30 1.15 1.15 1.10 1.10 1.02 0.91 0.91 0.90 0.85 0.76 0.70 0.50 0.30 0.10 -0.10 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

6

3Q16 Balance Sheet

Selected items from Balance Sheet (Amount：NTD M) Cash Notes and Accounts receivable Inventory Non-Current Assets Held for Sale Total Current Assets Fixed Assets Total Assets Notes and Accounts Payable S-T Borrowings CPLTD Liabilities included in disposal groups classified as held for sale Total Current Liabilities L-T Borrowings Total Liabilities Total Equity	2016/9/30	Amt % 7,949 19% 13,682 33% 7,294 18% 0 0% 30,120 74% 6,129 15% 2015/9/30
	Amt % 6,701 16% 14,593 35% 6,449 16% 3,660 9% 32,093 78% 4,760 12%
	41,241 100%	40,960 100%
	16,158 39% 2,892 7% 716 2% 1,711 4% 25,991 63% 219 1%	16,453 40% 4,087 10% 680 2% 0 0% 26,055 64% 1,057 3%
	28,055 68% 13,185 32%	28,668 70% 12,292 30%
Key Indices AR Turnover (days) AP Turnover (days) Inventory Turnover (days) Cash Conversion Cycle (days) Current Ratio (%) Total Liabilities-to-Assets Ratio (%)	83 107 45 21 123.5 68.0	75 98 42 19 115.6 70.0

7

3Q16 Cash Flow

Amount：NTD M	Q3 16 YTD	Q3 15 YTD
From Operation	(333)	1,840
- Income before tax - Depreciation and amortization - Notes and Accounts receivable - Notes and Accounts payable - Inventory - Other Operating Sources / (Uses)	2,194 1,231 (959) (2,009) (275) (515)	1,738 1,069 (2,611) 3,427 (2,289) 505
From Investment	(863)	(1,347)
- Fixed Assets - Cash from Non-Current Assets Held for Sale - Proceeds from disposal of available-for-sale financial assets - Acquisition of subsidiaries' shareholding - Other Investing Sources / (Uses)	(634) (440) 220 0 (9)	(1,282) 0 0 (39) (26)
From Financing	510	584
- S-T Borrowings - L-T Borrowings - Cash Dividend - Exercise of ESOP - Other Financing Sources / (Uses)	1,909 (418) (928) 16 (70)	1,636 (203) (791) 17 (76)
Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year	(686) (237) 7,623	1,077 58 6,814
Ending Cash Balance	6,701	7,949

8

4Q16 & 2017 Outlook

 Over the ear headphone MP

• Continuous Audio topline upward trend

• Better earnings structure

• 2017 continuous topline growth trend

• Better earnings structure

• Increasing Duo-camera contribution

• More headphone projects

• More gaming contribution

• Significant Audio growth followed by Mobile Device

9

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Thank you!
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10

Note

 All number has reflected Global Tek restatement

 Record Quarter  Historical Record High

11

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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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