Primax — Interim / Quarterly Report 2018

Nov 13, 2018

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Primax Electronics (4915 TT)
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3Q18 E arn ngs oni C ference 31 Oct 2018

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3Q18 Result

、 、 Record Q3 REVENUES GP EPS

Amount：NTD M Net Sales COGS Gross Profit Gross Margin Operating Expense Operating Expense % Operating Income Operating Margin Non‐operating Items Income before Tax Income Tax Net Income Net Margin Net income attributed to Primax EPS (NT$)	Q3 18		Q2 18	Q3 17	QoQ	YoY 30.7% ‐1.3% 1 0% ‐ . 22.1% ‐0.3% ‐17.6% ‐4.3% ‐1.1% 7.4%
	19,608		14,798	14,997	32.5%
	17,266		13,081 1,716	13,016 1,981
	2342
	,
	11.9%		11.6%	13.2%	0.3%
	1,610		1,320 8 9% . 396 2.7% 47 443 92	1,382 9 2% . 599 4.0% 292 891 249	0 7% ‐ . 84.6% 1.1% 65.8%
	8 2% . 732
	3.7%
	3
	735
	120
	615		351	642	75.2%
	3.1% 665		2.4% 339 0.76	4.3% 619 1.40	0.8% 96.2%
	1.50

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Quarterly Sales

Amount ： NTD M

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25,000
19,608
20,000 19,028
18,488
17 535,
14,997
14,798
15,000 13,835
12,881
11 884,
10,000
5,000
0
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
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、 Gross Profit Gross Margin

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Gross Profit
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Gross Margin
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Amount ： NTD M

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2,400 2,342
2,193
2,105 2,101
2,100
1 981,
1,783
1,800 1,716
1,615
1,500 1,460
1,200
900
600
300
0
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
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16.0%
15.0%
14.0%
12.9% 13.2%
13.0% 11.9% [12.0%] [12.5%] 12.3%
11.0% 11.6% 11.9%
12 0%.
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
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、 Operating Profit Operating Margin

Operating Profit

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Operating Margin
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Amount ： NTD M

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8.0%
1,000
7.0%
900 842
6.0%
4.6%
800
732 5.0%
711 4.1% 4.1% [4.3%] 4.0%
700 3.7%
4.0%
592 599 2 7%.
2.5%
600 3.0% 2.1%
534
2.0%
500 475
1.0%
396
400
0.0%
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
300 244 ‐1.0%
200 ‐2 0%.
‐3.0%
100
‐4.0%
0
‐5.0%
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
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EPS

Amount ： NTD

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1.60
1.50
1.40
1.40
1.28 1.27
1.19
1 20.
1.05
1.00 0.95
0.80
0.76
0.80
0.60
0.40
0.20
0.00
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
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3Q18 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	Amt % 3,881 9% 2018/9/30 17,859 42% 7,838 18% 31,640 74% 4,968 12%	Amt % 3,881 9% 2018/9/30 17,859 42% 7,838 18% 31,640 74% 4,968 12%	Amt % 3,881 9% 2018/9/30 17,859 42% 7,838 18% 31,640 74% 4,968 12%	Amt % 5,860 16% 2017/9/30 12,205 34% 7,087 20% 26,928 74% 4,535 13% 36,206 100% 14,386 40% 1,983 5% 136 0% 21,868 60% 83 0% 23,499 65% 12,706 35% 71 114 46 3 123.1 64.9 17.1%
		2018/9/30
		Amt 3,881 17,859 7,838 31,640 4,968	%
			9% 42% 18% 74% 12%
		42,618	100%
		18,505 2,366 67 26,481 234	43% 6% 0% 62% 1%
		28,263	66%
		14,354	34%
	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‐annualized (%)	76 117 47 7 119.5 66.3 16.3%

3Q18 Cash Flow

	Amount：NTD M	Q3 18 YTD	Q3 17 YTD 524 2,161 1,122 1,849 (2,821) (142) (1,645) (1,488) (830) (606) 0 (52) 509 1,983 (382) (1 112) , 20 (455) (45) 6,360 5,860
	From Operation	(1,171)
	‐ Income before tax ‐ Depreciation and amortization ‐ Notes and Accounts receivable ‐ Notes and Accounts payable ‐ Inventory ‐ Other Operating Sources / (Uses)	1,734 1,190 (4,388) 2,002 (801) (908)
	From Investment	(2,177)
	‐ Fixed Assets ‐ Acquisition/sale of subsidiaries' shareholding ‐ Changes in Equity investments under equity method ‐ Other Investing Sources / (Uses)	(1,275) 0 (982) 80
	From Financing	(376)
	‐ S‐T Borrowings ‐ L‐T Borrowings Cash Dividend ‐ ‐ Other Financing Sources / (Uses)	1,173 (138) (1 430) , 20
	Net Cash Position Change Effect of foreign currency exchange translation Cash at beginning of year	(3,724) (216) 7,821
	Ending Cash Balance	3,881
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、
4Q18 2019 Outlook
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 Stabilizing Earnings Structure  Tymphany ‐ Prem um Acoust cs Consumer i i &

Smart Audio well‐balanced

• 2019 Upward Toplines Trend and Improving Earnings Structure

• Tymphany ‐ Continuous Growth Momentum

Higher Headphones Contribution

• More Non‐Smartphone Camera Applications

• Optical & Acoustic Integration Opportunities

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Thank you!
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10

Note

 All fi ures stated above are unaudited and sub ect to audit g j amendments  Record Quarter  Historical Record High

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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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