Primax — Interim / Quarterly Report 2015

Mar 24, 2016

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Primax Electronics Ltd. (4915 TT) 3Q15 Earnings Conference Call

CEO Brian Yang CFO Yi Pin Lee

13 Nov 2015

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3Q15 Result Record Quarterly Revenue & EPS

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Amount ： NTD M Q3 15 Q2 15 Q3 14 QoQ YoY
Net Sales 17,783 14,540 13,622 22.3% 30.5%
COGS 15,799 12,994 11,996
Gross Profit 1,984 1,546 1,626
Gross Margin 11.2% 10.6% 11.9% 0.5% -0.8%
Operating Expense 1,342 1,153 1,104
Operating Expense % 7.5% 7.9% 8.1% -0.4% -0.6%
Operating Income 642 392 522 63.6% 23.0%
Operating Margin 3.6% 2.7% 3.8% 0.9% -0.2%
Non-operating Items 119 92 106
Income before Tax 761 485 628 57.0% 21.3%
Income Tax 224 95 130
Net Income 537 390 497 37.8% 8.0%
Net Margin 3.0% 2.7% 3.7% 0.3% -0.6%
Net income attributed to Primax 501 399 478
EPS (NT$) 1.15 0.91 1.10
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Quarterly Sales

Amount ： NTD M

Record YoY Record High

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Gross Profit

Record YoY Record High

Amount ： NTD M

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Gross Margin

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Operating Profit

Amount ： NTD M

Record YoY Record High

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Operating Margin

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EPS

Record YoY Record High

Amount ： NTD

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3Q15 Balance Sheet

Selected items from Balance Sheet (Amount：NTD M) Cash Accounts receivable Inventory Total Current Assets Fixed Assets	2015/9/30	2015/9/30		2014/9/30
	Amt 7,949 13,682 7,294 30,120 10,839	%		Amt % 6,779 23% 10,245 34% 4,667 16% 22,648 76% 7,021 24%
		20% 34% 18% 74% 26%
Total Assets	40,960	100%		29,669 100%
Accounts Payable S-T Borrowings CPLTD Total Current Liabilities L-T Borrowings	16,453 4,087 680 26,055 1,057	40% 10% 2% 64% 3%		11,503 38% 3,208 11% 600 2% 18,722 63% 900 3%
Total Liabilities Total Equity	28,668 12,292	70% 30%		20,036 68% 9,633 32%
Key Indices AR Turnover (days) AP Turnover (days) Inventory Turnover (days) Cash Conversion Cycle (days) Current Ratio (%) Total Liabilities -to-Assets Ratio (%)				62 82 36 17 121.0 67.5
	72
	95
	41
	18
	115.6
	70.0

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3Q15 Cash Flow

	Amount：NTD M	Q3 15 YTD	Q3 14 YTD 1,553 1,622 896 (1,193) (156) 345 40 (2,884) (551) (2,330) (3) 3,288 2,143 1,420 (347) 10 62 1,957 36 4,787 6,779
	From Operation	1,840
	- Income before tax - Depreciation and amortization - Notes and Account receivable - Notes and Account payable - Inventory - Other Operating Sources / (Uses)	1,738 1,069 (2,611) 3,427 (2,289) 505
	From Investment	(1,347)
	- Fixed Assets - Acquisition of subsidiaries' shareholding - Other Investing Sources / (Uses)	(1,282) (39) (26)
	From Financing	584
	- S-T Borrowings - L-T Borrowings - Cash Dividend - Exercise of ESOP - Other Financing Sources / (Uses)	1,636 (203) (791) 17 (76) 1,077 58 6,814
	Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year
	Ending Cash Balance	7,949

4Q15 & 2016 Outlook

• Q4 revenues to another record high

• Product Mix：

  • Higher percentage on Audio and PC Peripheral

  • Revenues maintained on Mobile Device and Business Equipment

• Will maintain double-digit growth in 2016

• More applications for camera modules, audio products, and gaming peripherals

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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 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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