Primax — Interim / Quarterly Report 2016

Apr 28, 2017

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Primax Electronics (4915 TT)
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4Q16 Earnings Conference

7 Mar 2017

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2016 Result

、 、 、 Record Topline GP OI EPS

Amount：NTD M	2016			2015	YoY
Net Sales	64,329			63,538	1.2%
COGS Gross Profit	57,062			56,795 6,743
	7,267
Gross Margin	11.3%			10.6%	0.7%
Operating Expense Operating Expense % Operating Income Operating Margin Non-operating Items Income before Tax Income Tax	4,894			4,636 7.3% 2,107 3.3% 311 2,418 631	0.3% 12.7% 0.4% 14.3%
	7.6%
	2,373
	3.7%
	391
	2,764
	778
Net Income (Loss) from Continuing Operations	1,987			1,787	11.2%
Income (Loss) from Discontinued Operations	62			30
Net Income	2,049			1,817	12.8%
Net Margin Net income attributed to Primax EPS (NT$)	3.2%			2.9% 1,773 4.06	0.3% 9.1%
	1,934
	4.40

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Product Mix
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Revenue PBT
：NTD M NTD M
70,000 3,000
60,000
2,500
50,000 44%
30%
52% 2,000
60%
40,000
1,500
Non-PC
30,000
PC
1,000
20,000 70%
56%
48%
40%
500
10,000
0 0
2015 2016 2015 2016
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Amount：NTD M NTD M
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Quarterly Sales

Amount ： NTD M

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25,000
19,734
20,000
18,488
17,535
17,221
14,900
13,996
15,000
13,435 13,405
12,588
10,000
5,000 1 2 3
0
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
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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
14.5%
2,193
2,085 2,105
2,100
1,845 13.5%
1,800
12.5%
1,586
1,561 12.0%
1,500 1,447 1,408 11.8% 11.9%
1,367
11.5%
10.9%
1,200 10.7% 10.6% 10.5%
10.3% 10.5%
10.5%
900
9.5%
600
8.5%
300
0 7.5%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
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、 Operating Profit Operating Margin

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Operating Profit Operating Margin
Amount ： NTD M
6.0%
900
842
800 759
5.0%
711 4.6%
700
4.1%
3.9%
597
600 4.0% 3.5%
3.0%
500 2.8%
423 3.0% 2.9% 2.7%
383
398
400 368 2.4%
323
300 2.0%
200
1.0%
100
0 0.0%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
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EPS

Amount ： NTD

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1.28
1.30
1.19
1.15 1.15
1.10
1.02
0.91 0.91
0.90 0.85
0.76
0.70
0.50
0.30
0.10
-0.10 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
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4Q16 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	2016/12/31	Amt % 7,623 18% 14,425 35% 7,351 18% 30,413 73% 6,284 15% 2015/12/31
	Amt % 6,360 17% 13,604 37% 6,671 18% 27,800 75% 4,717 13%
	37,122 100%	41,732 100%
	16,893 46% 0 0% 382 1% 22,801 61% 219 1%	18,724 45% 1,351 3% 622 1% 26,155 63% 1,055 3%
	24,878 67% 12,244 33%	28,815 69% 12,917 31%
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 (%)	78 113 44 9 121.9 67.0 16.3	70 99 38 9 116.3 69.0 15.7

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4Q16 Cash Flow

16 Cash Flow
Amount：NTD M	2016	2015
From Operation	2,283	5,022
Continuing operation income before tax Discontinued operation income before tax - Total income before tax - Depreciation and amortization - Notes and Accounts receivable - Notes and Accounts payable - Inventory - Other Operating Sources / (Uses)	2,764 105 2,870 1,650 (1) (1,271) (692) (273)	2,418 55
		2,473 1,473 (3,356) 5,699 (2,536) 1,269
From Investment	(732)	(1,975)
- Fixed Assets - Proceeds from disposal of available-for-sale financial assets - Cash related to acquisition/sale of subsidiaries' shareholding - Other Investing Sources / (Uses)	(1,034) 220 109 (27)	(1,898) 0 (39) (37)
From Financing	(2,615)	(2,228)
- S-T Borrowings - L-T Borrowings - Cash Dividend - Exercise of ESOP - Other Financing Sources / (Uses)	(974) (759) (928) 19 28	(1,101) (261) (791) 33 (107)
Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year	(1,064) (199) 7,623	820 (10) 6,814
Ending Cash Balance	6,360	7,623

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1Q17 & 2Q17 Outlook
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Stable topline outlook

Better earnings structure

New gaming account addition

• Increasing duo-camera contribution

Continuous Tymphany topline upward trend

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2012 - 2016 Dividend Payout
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( NT$ million ) 2012 2013 2014 2015 2016 Net income 1,183 669 1,545 1,773 1,934 Cash dividend 647 347 791 928 1,112 Dividend p/s 1.5 0.8 1.8 2.1 2.5 (NT$) Payout ratio (%) 55% 52% 51% 52% 57%

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Thank you!
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Note

 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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