TPK — Interim / Quarterly Report 2015

Apr 28, 2016

TPK Proprietary & Copyright © All Rights Reserved

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.

==> picture [92 x 38] intentionally omitted <==

TPK Proprietary & Copyright © All Rights Reserved

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

==> picture [92 x 38] intentionally omitted <==

TPK Proprietary & Copyright © All Rights Reserved

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.

==> picture [92 x 38] intentionally omitted <==

1

TPK Proprietary & Copyright © All Rights Reserved

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

==> picture [92 x 38] intentionally omitted <==

2 TPK Proprietary & Copyright © All Rights Reserved

TPK Proprietary & Copyright © All Rights Reserved

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%)

==> picture [92 x 38] intentionally omitted <==

3

TPK Proprietary & Copyright © All Rights Reserved

2015 Profit & Loss

2015年損益表

==> picture [92 x 38] intentionally omitted <==

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%)

4

TPK Proprietary & Copyright © All Rights Reserved

2015 & 2014 Sales Mix

2015及2014年營收結構

==> picture [329 x 329] intentionally omitted <==

==> picture [329 x 329] intentionally omitted <==

==> picture [92 x 38] intentionally omitted <==

5 TPK Proprietary & Copyright © All Rights Reserved

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%)

==> picture [92 x 38] intentionally omitted <==

6

TPK Proprietary & Copyright © All Rights Reserved

Quarterly Sales

季營收

==> picture [53 x 38] intentionally omitted <==

==> picture [617 x 407] intentionally omitted <==

----- Start of picture text -----

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
7
TPK Proprietary & Copyright © All Rights Reserved
----- End of picture text -----

Gross Profits (pre key write-off)

營業毛利 (3Q15與4Q15為擬制數)

==> picture [585 x 377] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

==> picture [92 x 38] intentionally omitted <==

8

TPK Proprietary & Copyright © All Rights Reserved

Operating Profits (pre key write-off)

營業利益 (3Q15與4Q15為擬制數)

==> picture [583 x 377] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

==> picture [92 x 38] intentionally omitted <==

9

TPK Proprietary & Copyright © All Rights Reserved

Sales by Form Factors

營收結構

==> picture [586 x 383] intentionally omitted <==

==> picture [92 x 38] intentionally omitted <==

10

TPK Proprietary & Copyright © All Rights Reserved

4Q15 Balance Sheet

資產負債表

==> picture [92 x 38] intentionally omitted <==

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.

TPK Proprietary & Copyright © All Rights Reserved

11

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)

==> picture [92 x 38] intentionally omitted <==

12 TPK Proprietary & Copyright © All Rights Reserved

TPK Proprietary & Copyright © All Rights Reserved

==> picture [99 x 55] intentionally omitted <==

FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2015

Taipei, Taiwan, February 18[th] , 2016 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2015 fourth quarter operating results. Company reported net profit of NT$1.0 billion, or earnings per share of NT$2.12. For the full year of 2015, Company’s total revenues were NT$121.4 billion, with net loss of NT$20.0 billion.

2015 Fourth Quarter Operating Results

Consolidated revenues in 4Q15 were NT$34,438 million, remained flat versus previous quarter, and down 13.0% versus same period last year. Despite the fourth quarter being the traditional strong season, actual revenues fell slightly short of original forecast, which is primarily attributable to weaker demand on smartphone. Volume for smart wearable device also decreased significantly versus previous quarter. Gross profit reached NT$2,314 million, and gross margin was 6.7%. Within the cost-of-goods-sold items, raw material costs were NT$25.5 billion, up slightly from NT$25.0 billion in the previous quarter, due to changes in product mix. Labor cost amounted to NT$2.8 billion, flat from 3Q15. Depreciation expenses totaled to NT$1.7 billion, down from NT$2.2 billion as a result of the asset impairment write-off in 3Q.

Operating expenses totaled NT$2.0 billion, including NT$104 million of bad debts with respect to the wind-down of Cando Technology. Despite the inclusion of one-time bad debt charge, 4Q15 operating expenses was 30.8% lower than NT$2.8 billion in 4Q14, reflecting our effective control on expenses. As of December 31 2015, total number of employees was 37,478, down from 42,429 in the previous quarter and 49,089 as of year-end 2014.

Net interest expenses for the quarter totaled NT$119 million. Company recorded NT$232 million in foreign exchange losses, mainly caused by RMB depreciation. As Cando had filed for bankruptcy on November 5[th] , 2015, we took a charge of all the remaining long-term investment, inter-company loan and guarantee obligations to Cando, totaled NT$1,339 million. We also concluded the insurance claim with respect to the fire accident occurred in January 2015 with total settlement amount of NT$942 million. Total tax benefit was NT$1,268 million, primarily due to a reversal on accrued tax after “TPK Advance Solutions”, one of major manufacturing entities, being granted with “High-tech” status for preferred tax treatment. Net income for the fourth quarter of 2015 was NT$1,016 million, or earnings per share of NT$2.12. EBITDA for 4Q15 amounted to NT$2.2 billion.

1

==> picture [99 x 55] intentionally omitted <==

2015 Full-year Operating Results

2015 full year unaudited consolidated revenues were NT$121,364 million, down 6.3% year-on-year. Total touch module shipment was 159 million units, up 55% versus 2014. Revenues from small-sized products (below 7-inch) accounted for 55% of total revenues and grew 6% YoY. Tablet-sized products (7 to 11 inch) contributed 19% of total revenues and declined 44% compared with 2014. Benefited from the large-sized tablet trend, revenue from 11-to-16 inch products increased 19% yoy, representing 18% of total revenues in 2015, up from 13% in 2014 although year-on-year unit shipment remained relatively flat.

Major one-time charges recorded in 2015 include fixed asset and intangible impairment loss of NT$18.2 billion, Cando related expenses of NT$2.2 billion and 1Q15 fire loss of NT$1.2 billion, in which NT$942 million was recovered from insurance claims in 4Q15. Excluding operating related one-time charges, Company’s operating loss was NT$50 million, down from previous year of NT$145 million.

Balance Sheet and Cash flow

Capital expenditures during the fourth quarter amounts to NT$337 million. Total capital expenditures in 2015 amounts to NT$3.9 billion, which is lower than the original budget of NT$4.5 billion.

As of December 31, 2015, Company had cash or cash equivalent of NT$16.4 billion. Total bank borrowings totaled NT$51.6 billion, of which NT$46.7 billion was short-term bank loans, NT$4.8 billion was long-term bank loans and NT$7.9 billion was from convertible bond due 2020. Total unused bank facilities amount to NT$50.4 billion.

Note: All financial numbers are prepared in accordance with IFRS which is approved by regulators in Taiwan.

IR Contact: Freddie Liu, Chief Financial Officer Kevin Wang, Director Tel: +886.2.7727.1196 ir@tpk.com

---

ABOUT TPK

TPK was founded solely for touch solutions in 2003. We are the inventor of transparent glass-based projected capacitive (P-Cap) touch solutions and the first company for mass production. Since 2Q 2010, TPK has expanded its touch product offering into PET-film based solutions. Our production sites are located in Xiamen City of Fujian Province, China. TPK is completely and vertically integrated for one-stop shopping for touch solutions.

2

==> picture [99 x 55] intentionally omitted <==

4Q15 PROFIT & LOSS

4Q15 PROFIT & LOSS
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 PROFIT & LOSS

2015 PROFIT & LOSS
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%)

3

==> picture [99 x 55] intentionally omitted <==

2015 PROFIT & LOSS (pre major one-time charges)

2015 PROFIT & LOSS	(pre major one-time charges)
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%)

4Q15 BALANCE SHEET

4Q15 BALANCE SHEET
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.

4