TPK — Interim / Quarterly Report 2015

Apr 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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4Q15 Result Summary

2015年第四季營運簡報

NT$	Revenues	Net Profits/Loss	EPS
4Q15	34.4 bn	1.0 bn	2.12
FY2015	121.4 bn	-20.0 bn	-57.86

• 4Q Revenues slightly below original guidance of 5% QoQ, primarily attributed to weaker demand in smart phone and wearable device.

• Margin also below plan due to lower utilization and unfavorable product mix change.

• Write off all remaining investment and associated liabilities in Cando Technology.

• Conclude insurance claim.

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Looking ahead to 2016 2016年營運展望

• Continue to streamline operation and customer composition.

• Focus on efficiency improvement, yield enhancement and cost control.

• Emphasize on growing revenue with “quality”

• Go back to “Basics”:

• Advance technology

 Blue-chip customers

• Total touch solution

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4Q15 Profit & Loss

2015年第四季損益表

Profit & Loss	QoQ 4Q14 YoY 4Q15 3Q15 Notes
(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) Impairment Loss Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	0.6% 39,581 (13.0%) (36,674) n.m. 2,907 (20.4%) (2,837) (1,528) (1,309) n.m. 70 401.8% 499 (45) 288 (27) ‐ 284 569 (387) 66 0.20 3,207 2,172 n.m. 1,268 (709) 1,016 (19,390) 2.12 (55.15) (1,406) (765) 1,075 3 (265) (18,748) Others: $67 mn Fire claims: $942 mn (119) (104) (232) (153) 67 (50) Cando: $1,339 mn (218) (553) 350 (17,680) (615) (1,068) 2,314 (11,272) (1,964) (6,408) (1,745) (5,855) Cando: $104 mn (32,123) (45,508) 34,438 34,235
Margin: GM OM NM Op Exp	7.3% 0.2% 0.2% (7.2%) 6.7% (32.9%) 1.0% (51.6%) 2.9% (5.7%) (56.6%) (18.7%)

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2015 Profit & Loss

2015年損益表

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Profit & Loss	2015 2014 YoY
(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) Impairment Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent)	121,364 129,517 (6.3%) (127,925) (119,035) (6,561) 10,482 (11,793) (10,337) (10,467) (5,354) (1,326) (4,983) (18,354) 145 (2,665) 431 (358) (120) (322) 219 (89) (389) (2,170) (291) 274 1,011 (21,019) 575 943 (8) (20,007) 277 (57.86) 0.84
Margin: GM OM NM Op Exp	(5.4%) 8.1% (15.1%) 0.1% (16.5%) 0.2% (9.7%) (8.0%)

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2015 & 2014 Sales Mix

2015及2014年營收結構

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2015 Pre & Post Key W/O P&L

2015年擬制數與自結數

2015 Profit & Loss	Pre Post	Notes
(NT$ million) Revenues COGS Gross Profits Operating Expenses Operating Profits Non‐Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Invest Inc/(Loss) Impairment Others Earnings Before Tax	121,364 121,364 (114,315) (127,925) 7,048 (6,561) (7,098) (11,793) (50) (18,354) (242) (2,665) (358) (358) (322) (322) (89) (89) ‐ (2,170) 527 274 (292) (21,019)	Write‐off: $13,610 mn Write‐off: $4,591 mn; Bad debts: $104 mn Cando: $2,103 mn; Others: 67 mn Fire loss: $1,195 mn; Claims: $942 mn
Margin: GM OM Op Exp	5.8% (5.4%) (0.0%) (15.1%) (5.8%) (9.7%)

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Quarterly Sales

季營收

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NT$ mm
50,000
39,581
40,000
34,235 34,438
30,704 [32,613 ]
28,949
30,000
26,618
23,741
20,000
10,000
0
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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Gross Profits (pre key write-off)

營業毛利 (3Q15與4Q15為擬制數)

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NT$ mm GP GP (excl one‐time) GM GM (excl one‐time)
5,000 12%
4,500
10.0%
10%
4,000 8.9% 8.8%
3,500 7.3%
8%
3,000 6.6% 6.5%
6.8%
2,500 6%
2,000
4%
1,500 2,907 2,997
2,669 2,738
2,168 2.1% 2,314
1,000
1,895
2%
500
501
0 0%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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Operating Profits (pre key write-off)

營業利益 (3Q15與4Q15為擬制數)

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NT$ mm OP OP (excl one‐time) OM OM (excl one‐time)
1,500 4%
3.4%
1,000
2%
1.3%
1.1%
1,179
0.3% 0.3%
500 0.2%
290
0%
454
98 70 90
0
(1.0%)
‐2%
(313)
(500) (1,115)
‐4%
(1,000)
(4.7%)
(1,500) ‐6%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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Sales by Form Factors

營收結構

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4Q15 Balance Sheet

資產負債表

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Balance Sheet	2015/12/31 2014/12/31
(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 Retained Earnings Non‐Controlling Interest Total Shareholder's Equities	16,393 29,540 16,787 16,737 12,270 13,810 8,737 7,180 61,034 74,648 326 1,162 49,282 71,573 114,964 152,723 46,740 65,252 14,956 20,540 68,417 95,306 7,850 ‐ 4,829 7,928 83,437 106,571 3,516 3,313 2,791 22,956 423 818 31,527 46,151
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity Book Value per share	0.76 0.71 0.89 0.78 (52.3%) 0.6% 1.36 0.95 89.66 139.31

Note: PP&E includes prepayments.

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4Q15 Cash Flow

現金流量表

Cashflow Statement	4Q15 3Q15
(NT$ million) Operating Cashflows: Earning Before Tax Depreciation & Amortization Net Inc/(Dec) Working Capital Other Operating Cash Flow Cash Flow from Operations Investing Cashflows: Capital Expenditures Acquisitions Others Cash Flow from Investments Financing Cashflows: Inc/(Dec) in Debts Capital Injection Treasury Stock Others Cash Flow from Financing FX Adjustments Total Cash Flow	(265) (18,748) 2,139 2,712 (1,260) 465 721 19,755 1,336 4,183 (1,043) (1,082) (89) (138) (1,236) (3,569) (2,367) (4,789) (9,260) (3,006) ‐ ‐ (433) ‐ (201) (414) (9,894) (3,420) 94 2,847 (10,831) (1,179)

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新聞稿

TPK 公告 2015 年第四季自結營運成果

中華民國，台灣，台北，2016 年 2 月 18 日 – TPK Holding Co., Ltd. 宸鴻科技（TWSE: 3673）（“宸鴻” 或 “本公司”）今日公告 2015 年第四季自結營運成果。本季自結稅後淨 利為新台幣 10.2 億元，稅後稀釋每股獲利為新台幣 2.12 元。2015 年全年營收達新台 幣 1,213.6 億元，稅後淨損為新台幣 200.1 億元。

2015 年第四季營運成果分析

2015 年第四季自結合併營收為新台幣 344.4 億元，與前一季相當，較 2014 年第四季 減少 13.0%。第四季雖為傳統旺季，但受到全球經濟成長趨緩，導致智慧型手機需求不 如預期，以至於本季營收較當初預期為低；此外，穿戴式裝置出貨量與前一季相比，亦 顯著減少。本季營業毛利為新台幣 23.1 億元，營業毛利率為 6.7%。在銷售成本結構方 面，由於產品組合變化，原料成本由第三季新台幣 249.8 億元略增為約新台幣 255.2 億 元。本季人工成本為新台幣 27.9 億元，與上一季相當。受惠於第三季的資產減損提列， 第四季折舊攤提費用由前一季的新台幣 22.1 億元下降至新台幣 17.3 億元。

第四季營業費用為新台幣 19.6 億元，其中包含認列與達鴻之間的呆帳約新台幣 1.0 億 元。儘管本季認列了一次性呆帳費用，營業費用仍較 2014 年第四季新台幣 28.4 億元 減少 30.8%，反映本公司於成本及費用控管上之成效。截至 2015 年 12 月 31 日，本公 司員工總人數為 37,478 人，較前一季底 42,429 人及 2014 年底 49,089 人減少。

本季淨利息費用約新台幣 1.2 億元。然因人民幣貶值，2015 年第四季外幣兌換損失約 為新台幣 2.3 億元。由於達鴻已於 2015 年 11 月 5 日申請重整，故本公司於第四季提 列相關費用，包含本公司對達鴻持有之剩餘長期股權投資、對達鴻之資金貸與及公司債 保證，合計共約新台幣 14.0 億元。此外，針對本公司 2015 年 1 月之火災事故，已與 保險公司達成協議並於本季認列保險理賠金額新台幣 9.4 億元。本季所得稅利益新台幣 12.7 億元，主要係因本公司重要營運子公司之一的宸美（廈門）光電有限公司取得高 新科技公司之資格並享有稅賦優惠，故本季迴轉前三季認列之所得稅費用。2015 年第 四季稅後淨利新台幣 10.2 億元，稅後稀釋每股獲利為新台幣 2.12 元。本季 EBITDA 約 新台幣 21.7 億元。

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2015 年全年營運成果分析

2015 年全年自結合併營收為新台幣 1,213.6 億元，較前一年度減少 6.3%；全年觸控模 組出貨量為 1.6 億片，較 2014 年增加 55%。其中，小尺寸觸控模組佔 2015 年整體營 收之 55%，年成長率為 6%；7~11 吋產品佔 19%，較前一年度減少 44%； 11~16 吋 產品出貨量雖與 2014 年持平，但受惠於大尺寸平板電腦崛起之趨勢，營收較前一年成 長 19%，其整體營收佔比亦由 2014 年的 13%提升至 2015 年的 18%。

本年度主要一次性減損包括約新台幣 182.0 億元的固定資產與無形資產減損、新台幣 22.1 億元的達鴻相關費用之提列及第一季火災損失約新台幣 12.0 億元（已於第四季取 得保險理賠金額新台幣 9.4 億元）。排除營運相關之一次性減損，本公司 2015 年營運 虧損為新台幣 5,000 萬元，較 2014 年營業利益之新台幣 1.4 億元為低。

資本結構及資本支出

第四季資本支出約為新台幣 3.4 億元，2015 年全年資本支出則約為新台幣 38.5 億元， 較年初公司預算的新台幣 45 億元為低。

截至 2015 年年底，本公司帳上現金餘額為新台幣 163.9 億元。銀行借款餘額為新台幣 515.7 億元，其中短期銀行借款為新台幣 467.4 億元（含一年內到期之長期借款），長 期銀行借款為新台幣 48.3 億元，另應付海外可轉換公司債餘額為新台幣 78.5 億元。截 至 2015 年 12 月底，本公司未使用銀行額度約為新台幣 504.1 億元。

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 **************

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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2015 年第四季損益表

Profit & Loss	QoQ 4Q14 YoY 4Q15 3Q15 Notes
(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) Impairment Loss Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	0.6% 39,581 (13.0%) (36,674) n.m. 2,907 (20.4%) (2,837) (1,528) (1,309) n.m. 70 401.8% 499 (45) 288 (27) - 284 569 (387) 66 0.20 3,207 2,172 n.m. 1,268 (709) 1,016 (19,390) 2.12 (55.15) (1,406) (765) 1,075 3 (265) (18,748) Others: $67 mn Fire claims: $942 mn (119) (104) (232) (153) 67 (50) Cando: $1,339 mn (218) (553) 350 (17,680) (615) (1,068) 2,314 (11,272) (1,964) (6,408) (1,745) (5,855) Cando: $104 mn (32,123) (45,508) 34,438 34,235
Margin: GM OM NM OpExp	7.3% 0.2% 0.2% (7.2%) 6.7% (32.9%) 1.0% (51.6%) 2.9% (5.7%) (56.6%) (18.7%)

2015 年損益表

Profit & Loss	2015 2014 YoY
(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) Impairment Others Earnings Before Tax Income Tax Net Income (Parent) EPS(Parent)	121,364 129,517 (6.3%) (127,925) (119,035) (6,561) 10,482 (11,793) (10,337) (10,467) (5,354) (1,326) (4,983) (18,354) 145 (2,665) 431 (358) (120) (322) 219 (89) (389) (2,170) (291) 274 1,011 (21,019) 575 943 (8) (20,007) 277 (57.86) 0.84
Margin: GM OM NM OpExp	(5.4%) 8.1% (15.1%) 0.1% (16.5%) 0.2% (9.7%) (8.0%)

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2015 年損益表（2015 年擬制數與自結數）

2015 Profit & Loss	Pre Post	Notes
(NT$ million) Revenues COGS Gross Profits Operating Expenses Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Invest Inc/(Loss) Impairment Others Earnings Before Tax	121,364 121,364 (114,315) (127,925) 7,048 (6,561) (7,098) (11,793) (50) (18,354) (242) (2,665) (358) (358) (322) (322) (89) (89) - (2,170) 527 274 (292) (21,019)	Write-off: $13,610 mn Write-off: $4,591 mn; Bad debts: $104 mn Cando: $2,103 mn; Others: 67 mn Fire loss: $1,195 mn; Claims: $942 mn
Margin: GM OM OpExp	5.8% (5.4%) (0.0%) (15.1%) (5.8%) (9.7%)

2015 年第四季資產債表

2015 年第四季資產債表
Balance Sheet	2015/12/31 2014/12/31
(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 Retained Earnings Non-Controlling Interest Total Shareholder's Equities	16,393 29,540 16,787 16,737 12,270 13,810 8,737 7,180 61,034 74,648 326 1,162 49,282 71,573 114,964 152,723 46,740 65,252 14,956 20,540 68,417 95,306 7,850 - 4,829 7,928 83,437 106,571 3,516 3,313 2,791 22,956 423 818 31,527 46,151
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity Book Valueper share	0.76 0.71 0.89 0.78 (52.3%) 0.6% 1.36 0.95 89.66 139.31

Note: PP&E includes prepayments.

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