TPK — Interim / Quarterly Report 2017

Sep 26, 2017

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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.

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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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2Q17 Result Summary

2017年第二季營運簡報

2Q17	Revenues	Net Profits	EPS
NT$	22.4 bn	327 mn	0.95

• Healthy demand for smartphone, ramp-ups in new tablet products and increasing popularity of 2-in-1 laptops prevailed over conventional weaker seasonality in 2Q

• Targeted profitability achieved via efficiency enhancement and lower depreciation cost.

• Operating expenses remained at the lowest level in the past 7 years

• 2H outlook remains intact with new product ramp-ups and seasonality

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2Q17 Profit & Loss

2017年第二季損益表

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季損益表
Profit & Loss	QoQ 2Q16 YoY 2Q17 1Q17
(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	4.6% 17,085 31.2% (18,673) 26% (1,588) n.m. (1,155) (944) (211) 258% (2,743) n.m. 68 (192) 60 69 131 (2,675) 161 (2,499) (7.28) (259) 327 616 0.95 1.78 2,835 3,290 412 955 516 741 (176) (122) (203) (235) (124) (100) - - (205) (203) 430 120 85 621 1,510 1,200 (1,080) (1,080) (874) (877) (20,897) (20,215) 22,407 21,415
Margin: GM OM NM OpExp	(9.3%) (16.1%) (14.6%) (6.8%) (4.8%) (5.0%) 6.7% 5.6% 1.9% 0.6% 1.5% 2.9%

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Quarterly Sales

季營收

0 10,000 20,000 30,000 40,000 50,000 NT$ mm	28,949 23,741 34,235 34,438 21,239 17,085 26,16824,724 21,41522,407 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

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Quarterly Sales by Form Factors

季營收結構

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＜ 7" 7" ≦ X 11" 11" ≦ X 16" X ≧ 16" Others
100%
24%
80% 25%
27% 29%
30% 33%
60%
19%
26%
21%
28%
29% 24%
40%
50%
44% 44%
20%
36%
34%
30%
0%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
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2Q17 Balance Sheet

2017年第二季資產負債表

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alance Sheet 季資產負債表
Balance Sheet	2017/6/30 2017/3/31
(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	19,344 19,498 1,526 619 7,346 5,255 5,604 6,583 35,628 37,491 258 258 38,320 39,249 78,030 80,668 20,104 25,003 10,344 10,396 36,328 42,579 6,289 6,227 4,173 1,237 48,917 52,031 3,466 3,466 253 235 29,112 28,637
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	0.83 0.73 0.98 0.88 6.5% 8.6% 0.39 0.45

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Note: PP&E includes prepayments.

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新聞稿

TPK 公告 2017 年第二季自結營運成果

中華民國，台灣，台北，2017 年 8 月 3 日 – TPK Holding Co., Ltd. 宸鴻科技（TWSE: 3673）（“宸鴻” 或 “本公司”）今日公告 2017 年第二季自結營運成果。本季自結稅後淨 利為新台幣 3 億 2 仟 7 佰萬元，稅後稀釋每股淨利為新台幣 0.95 元。合計 2017 年上 半年稅後稀釋每股淨利為新台幣 2.75 元。

營運成果分析

本公司第二季自結合併營收為新台幣 224.1 億元，較去年同期成長 31.2%，亦較上季成 長 4.6%，主要係受惠於終端市場智慧型手機銷售情況平穩，平板電腦新產品開始出貨 且二合一筆電需求持續成長所致。第二季營業毛利為新台幣 15.1 億元。因生產效率提 升，加上折舊費用下降，第二季營業毛利率由前一季 5.6%提升至 6.7%。

在銷售成本結構方面，原料成本由第一季新台幣 157.7 億元，增加為新台幣 166.1 億元； 人工成本則由上季新台幣 17.9 億元減少為新台幣 16.6 億元。本季折舊攤提費用為新台 幣 19.1 億元，為自 2015 年第 4 季以來之最低水平。

第二季營業費用為新台幣 10.8 億元，與上季新台幣 10.8 億元相當，同為本公司近 7 年 來單季營業費用最低水位。本季淨利息費用約為新台幣 2.0 億元。另外，第二季認列外 匯損失約為新台幣 1.2 億元，主要係因人民幣兌美金升值。截至 2017 年 6 月 30 日，本 公司員工總人數為 29,429 人，與前一季底 28,489 人相當。

資本結構及資本支出

截至 2017 年 6 月 30 日，本公司帳上現金餘額為新台幣 193.4 億元，與第一季底新台 幣 195.0 億元約略相同。宸鴻持續致力於降低財務槓桿，本季底合計銀行借款餘額及人 民幣債券餘額由前季底新台幣 262.4 億元減少至新台幣 242.8 億元，淨負債權益比率亦 由上季底 0.45 降為 0.39。第二季 EBITDA 為新台幣 28.4 億元，資本支出則約為新台幣 10.4 億元。第二季營運活動所產生之現金流足以支應資本支出並協助公司持續降低負 債。

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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，財務處資深處長

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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2Q17 PROFIT & LOSS

Profit & Loss	QoQ 2Q16 YoY 2Q17 1Q17
(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	4.6% 17,085 31.2% (18,673) 26% (1,588) n.m. (1,155) (944) (211) 258% (2,743) n.m. 68 (192) 60 69 131 (2,675) 161 (2,499) (7.28) (259) (20,897) (20,215) 22,407 21,415 1,510 1,200 (1,080) (1,080) (874) (877) (205) (203) 430 120 85 621 (203) (235) (124) (100) - - 412 955 516 741 (176) (122) 327 616 0.95 1.78 2,835 3,290
Margin: GM OM NM OpExp	(9.3%) (16.1%) (14.6%) (6.8%) 6.7% 5.6% 1.9% 0.6% 1.5% 2.9% (4.8%) (5.0%)

2Q17 BALANCE SHEET

2Q17 BALANCE SHEET
Balance Sheet	2017/6/30 2017/3/31
(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	19,344 19,498 1,526 619 7,346 5,255 5,604 6,583 35,628 37,491 258 258 38,320 39,249 78,030 80,668 20,104 25,003 10,344 10,396 36,328 42,579 6,289 6,227 4,173 1,237 48,917 52,031 3,466 3,466 253 235 29,112 28,637
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	0.83 0.73 0.98 0.88 6.5% 8.6% 0.39 0.45

Note: PP&E includes prepayments.

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