TPK — Interim / Quarterly Report 2016

Jul 28, 2016

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Disclaimer Statement

This presentation and release may contain ‘forward-looking statements’ which may include projections on future results of operations, financial condition and business prospects based on our own information and other sources.

The actual results of operations, financial condition and business prospects may differ from those explicitly or implicitly indicated in those forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, supply chain issues, global economic conditions, exchange rate fluctuation and other risks and factors beyond TPK’s controls.

The forward-looking statements in this presentation, if any, only reflect the current view of TPK Holding Co., Ltd. as of the date of its release. TPK undertakes no obligation to update those forward-looking statements for events or circumstances that occur subsequently.

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Disclosure Notice

公告原則

 All financial numbers are prepared in accordance with IFRS which is approved by regulators in Taiwan

• All financial numbers are unaudited

• 本公司財務報表係依照臺灣主管機關認可之國際財務報 導準則編製

• 所有財務數字均為本公司自結數

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2Q16 Result Summary

2016年第二季營運簡報

NT$	Revenues	Net Profits/Loss	EPS
2Q16	17.1 bn	(2,499 mn)	(7.28)

• 2Q sequential revenue decline was primarily attributed to seasonal weakness and customer’s inventory adjustment prior to new product launches.

• Operating loss caused by low utilization and higher startup cost

• prior to new product mass production.

• Overall performance shall significantly improve in 2H driven by

• new product launches and seasonal demand.

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2Q16 Profit & Loss

2016年第二季損益表

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季損益表
Profit & Loss	QoQ 2Q15 YoY 2Q16 1Q16
(NT$ million) Revenues COGS Gross Profits Operating Expenses SG&A R&D Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Invest Inc/(Loss) Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	(19.6%) 23,741 (28.0%) (23,240) (260.2%) 501 (416.6%) (1,616) (1,368) (248) (1,115) 211 (106) 69 (52) 300 (904) 289 (618) (1.77) 1,876 (2,499) 52 (7.28) 0.15 (259) 2,443 131 524 (2,675) (76) 161 92 (192) (182) 60 (114) 69 52 (211) (219) (2,743) (357) 68 280 (1,588) 991 (1,155) (1,348) (944) (1,128) (18,673) (20,248) 17,085 21,239
Margin: GM OM NM OpExp	2.1% (4.7%) (2.6%) (6.8%) (6.8%) (6.3%) (9.3%) 4.7% (16.1%) (1.7%) (14.6%) 0.2%

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Quarterly Sales

季營收

NT$ mm 50,000 39,581 40,000 34,235 34,438 30,704[32,613 ] 28,949 30,000 26,618 23,741 21,239 20,000 17,085 10,000 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

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Sales by Form Factors

營收結構

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＜ 7" 7" ≦ X 11" 11" ≦ X 16" X ≧ 16" Others
100%
5%
11%
14% 15% 17% 17%
80% 18% 26%
30% 33%
21%
16%
42%
27% 24%
60% 31%
25%
18%
24%
29%
40%
61% 61%
51% 51% 49%
44% 47% 45%
20%
34%
30%
0%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
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2Q16 Balance Sheet

2016年第二季資產負債表

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alance Sheet 季資產負債表
Balance Sheet	2016/6/30 2016/3/31
(NT$ million) Cash Equivalents Debt Inv with no active market Receivables Inventories Current Assets Long-term Investments Property, Plant and Equipment Total Assets ST Loans Payables Current Liabilities Convertible Bonds LT Loans Total Liabilities Common Shares Non-Controlling Interest Total Shareholder's Equities	18,022 15,165 2,065 5,222 7,050 6,752 6,598 8,051 36,462 39,276 503 376 45,771 47,265 87,515 91,616 33,935 33,722 8,216 9,579 48,043 49,338 6,489 6,519 1,955 2,457 58,910 60,732 3,466 3,466 514 412 28,605 30,884
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	0.62 0.63 0.76 0.80 (16.5%) 0.7% 0.85 0.89

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Note: PP&E includes prepayments.

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Strengthen balance sheet structure 強化債務結構及拓展資本管道

• Issuance of RMB 500 million short-term bond

• Issuance date: 2016/07/26

• Maturity date: 2017/07/26

• Interest rate: 5.10%

• Expand funding sources to tape into Chinese debt market

• Establish RMB liability exposure to hedge FX risk

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新聞稿

TPK 公告 2016 年第二季自結營運成果

中華民國，台灣，台北，2016 年 7 月 28 日 – TPK Holding Co., Ltd. 宸鴻科技（TWSE: 3673）（“宸鴻” 或 “本公司”）今日公告 2016 年第二季自結營運成果。本季自結稅後淨 損為新台幣 24 億 9 仟 9 佰萬元，稅後稀釋每股虧損為新台幣 7.28 元。

2016 年第二季營運成果分析

第二季受到傳統淡季及客戶於新產品推出前之庫存調整影響，自結合併營收為新台幣 170.8 億元，較去年同期減少 28.0%，亦較上季減少 19.6%。2016 年第二季營業毛損 為新台幣 15.9 億元，主要係生產規模下降，導致主要產品線之稼動率低於損益兩平水 準，加上本公司對客戶下半年即將推出之新產品的初始成本已開始投入，故使本季營業 毛利率下降至-9.3%。

在銷售成本結構方面，由於銷售金額的減少，本季原料及人工成本由第一季新台幣 152.4 億元及 18.5 億元，分別減少至新台幣 138.2 億元及 17.4 億元。本季折舊攤提費 為新台幣 20.6 億元。

本季營業費用為新台幣 11.6 億元，較上季新台幣 13.5 億元減少 14.3%，主要反映本公 司持續強化成本及費用控管上之成果。本季淨利息費用約為新台幣 1.9 億元。此外，本 公司 2016 年第二季認列外幣兌換收益約為新台幣 6,000 萬元。截至 2016 年 6 月 30 日，本公司員工總人數為 29,737 人，較前一季底 31,357 人減少。

資本結構及資本支出

本季資本支出約為新台幣 5.8 億元，較上季新台幣 11.7 億元減少。截至 2016 年 6 月 30 日，本公司帳上現金餘額為新台幣 180.2 億元。銀行借款餘額為新台幣 358.9 億元， 其中短期銀行借款為新台幣 339.3 億元（含一年內到期之長期借款），長期銀行借款為 新台幣 19.5 億元，另應付海外可轉換公司債餘額為新台幣 64.9 億元（到期日為 2020 年），本公司未使用銀行額度約為新台幣 516.5 億元。

本公司的主要營運子公司之一：宸鴻科技（廈門）有限公司，已於 2016 年 7 月 26 日 完成發行總金額人民幣 5 億元之一年期人民幣債券，其利率為 5.1%，主要用途為支應 公司營運週轉，而人民幣借款亦可對人民幣匯率波動產生避險之效用。

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註：本公司之財務數字係依照臺灣主管機關認可之國際財務報導準則編製。

投資人關係聯絡人：

劉詩亮，財務長

王凱論，財務處長

Tel: +886.2.7727.1196 ir@tpk.com

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關於 TPK 宸鴻科技

TPK 為專業的觸控技術應用領導廠商，透過垂直整合的生產製程提供客戶全方位的觸控技術應 用解決方案，包括產品設計、研發到量產。公司持續專注於觸控技術的研發與創新，以維持技 術的領先地位，並透過新材質的開發、技術的提昇及製程的改善達到降低成本的效益，以期擴 大觸控技術在各種電子產品的應用並滿足客戶需求。本公司之主要生產基地位於中國廈門。

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2016 年第二季損益表

Profit & Loss	QoQ 2Q15 YoY 2Q16 1Q16
(NT$ million) Revenues COGS Gross Profits Operating Expenses SG&A R&D Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Invest Inc/(Loss) Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	(19.6%) 23,741 (28.0%) (23,240) (260.2%) 501 (416.6%) (1,616) (1,368) (248) (1,115) 211 (106) 69 (52) 300 (904) 289 (618) (1.77) 1,876 (2,499) 52 (7.28) 0.15 (259) 2,443 131 524 (2,675) (76) 161 92 (192) (182) 60 (114) 69 52 (211) (219) (2,743) (357) 68 280 (1,588) 991 (1,155) (1,348) (944) (1,128) (18,673) (20,248) 17,085 21,239
Margin: GM OM NM OpExp	2.1% (4.7%) (2.6%) (6.8%) (6.8%) (6.3%) (9.3%) 4.7% (16.1%) (1.7%) (14.6%) 0.2%

2016 年第二季資產負債表

2016 年第二季資產負債表
Balance Sheet	2016/6/30 2016/3/31
(NT$ million) Cash Equivalents Debt Inv with no active market Receivables Inventories Current Assets Long-term Investments Property, Plant and Equipment Total Assets ST Loans Payables Current Liabilities Convertible Bonds LT Loans Total Liabilities Common Shares Non-Controlling Interest Total Shareholder's Equities	18,022 15,165 2,065 5,222 7,050 6,752 6,598 8,051 36,462 39,276 503 376 45,771 47,265 87,515 91,616 33,935 33,722 8,216 9,579 48,043 49,338 6,489 6,519 1,955 2,457 58,910 60,732 3,466 3,466 514 412 28,605 30,884
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	0.62 0.63 0.76 0.80 (16.5%) 0.7% 0.85 0.89

Note: PP&E includes prepayments.

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