TPK — Interim / Quarterly Report 2018

May 22, 2018

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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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1Q18 Result Summary

2018年第一季營運簡報

NT$	Revenues	Net Profits	EPS
1Q18	20.9 bn	68 mn	0.17

• Revenues in line with expectation, reflecting cross the board seasonal declines in all product segments post seasonal demand and fewer working days in the first quarter

• Profitability remained flattish year-on-year, but was negatively affected sequentially due to lower capacity utilization rate

• Expect revenues in 2018 to be back-end loaded

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1Q18 Profit & Loss

2018年第一季損益表

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Profit & Loss	QoQ 1Q17 YoY 1Q18 4Q17
(NT$ million) Revenues COGS Gross Profits Operating Expenses SG&A R&D Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	(36.6%) 21,415 (2.6%) (20,215) (44.3%) 1,200 2.6% (1,080) (877) (203) (68.9%) 120 85.5% 621 (235) (100) 955 (71.4%) 741 (67.0%) (122) 616 (88.9%) 1.78 (90.4%) 3,290 (19,622) (30,664) 20,854 32,873 1,231 2,209 (1,008) (1,491) (761) (1,195) (247) (295) 223 718 22 137 (41) (53) (68) (64) 131 254 245 855 (179) (242) 68 591 0.17 1.53 2,248 2,969
Margin: GM OM NM OpExp	5.6% 0.6% 2.9% (5.0%) 5.9% 6.7% 1.1% 2.2% 0.3% 1.8% (4.8%) (4.5%)

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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%
20%
19%
24%
80% 28%
29%
21%
25%
60%
26% 20%
28%
40%
56%
51%
47%
44%
20%
36%
0%
1Q17 2Q17 3Q17 4Q17 1Q18
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1Q18 Balance Sheet

2018年第一季資產負債表

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Balance Sheet	3/31/2018 12/31/2017
(NT$ million) Cash Equivalents Debt Inv with no active market Receivables Inventories Current Assets Long-term Investments PP&E Total Assets ST Loans Payables Current Liabilities LT Loans Total Liabilities Common Shares Total Shareholder's Equities	21,609 19,402 4,992 5,535 5,386 5,331 5,609 7,298 38,829 44,680 253 256 32,349 34,211 75,045 82,978 17,653 14,046 8,860 18,513 32,430 39,908 3,756 3,500 38,603 45,808 4,067 4,067 36,442 37,171
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	1.02 1.11 1.20 1.33 0.7% 7.3% Net Cash Net Cash

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Note: PP&E includes prepayments.

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FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2018

Taipei, Taiwan, May 3[rd] , 2018 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2018 first quarter operating results. Company reported net profit of NT$68 million, or earnings per share of NT$0.17.

Operating Results

The Company’s first quarter revenues were NT$20,854 million, down 2.6% year-on-year and down 36.6% quarter-on-quarter. The decline in revenue was primarily due to reduced production volume post seasonal demand and fewer working days in the first quarter. Gross profits amounted to NT$1,231 million, remained flattish versus year ago quarter and down 44.3% sequentially. Gross margin decreased from 6.7% to 5.9%, primarily due to lower capacity utilization rate.

Despite favorable product mix which reduced raw material cost from 78.2% of the quarterly sales in 4Q17 to 76.1% in this quarter, the lower capacity utilization rate lifted up depreciation cost as a percentage of revenues from 5.6% in 4Q17 to 8.3% in 1Q18. Labor cost was 6.5% of the first quarter sales and remained flattish quarter-on-quarter, reflecting our successful control of headcount during slow season.

1Q18 operating expenses moved alongside revenues and decreased 32.4% sequentially from NT$1.5 billion in 4Q17 to NT$1.0 billion in 1Q18. Apart from the reduction in sales related expenses in 1Q18, the difference mainly stemmed from accrued expenses for incentive bonus and employees purchasing treasury stocks in 4Q17. Net interest expenses for the quarter totaled NT$41 million. The Company recorded foreign exchange loss of NT$68 million in this quarter due to weakening USD versus RMB and NTD. As of March 31[st] 2018, total number of employees was 22,317, down from 26,177 on December 31[st] 2017.

Balance Sheet & Cash Flow

As of March 31[st] 2018, Company had cash and cash equivalent of NT$21.6 billion, up from NT$19.4 billion at the end of fourth quarter last year. Total bank borrowings and convertible bonds totaled

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NT$21.4 billion. The outstanding Convertible bonds of NT$6.1 billion has been fully repaid on April 8[th] 2018. As of March 31[st] 2018, TPK was in net-cash position with current ratio of 1.20 and quick ratio of 1.02. 1Q18 EBITDA amounted to NT$2.2 billion. Capital expenditures during the first quarter were NT$618 million on an accrual basis.

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

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

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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.

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1Q18 PROFIT & LOSS

1Q18 PROFIT & LOSS
Profit & Loss	QoQ 1Q17 YoY 1Q18 4Q17
(NT$ million) Revenues COGS Gross Profits Operating Expenses SG&A R&D Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	(36.6%) 21,415 (2.6%) (20,215) (44.3%) 1,200 2.6% (1,080) (877) (203) (68.9%) 120 85.5% 621 (235) (100) 955 (71.4%) 741 (67.0%) (122) 616 (88.9%) 1.78 (90.4%) 3,290 0.17 1.53 2,248 2,969 245 855 (179) (242) 68 591 (41) (53) (68) (64) 131 254 (247) (295) 223 718 22 137 1,231 2,209 (1,008) (1,491) (761) (1,195) (19,622) (30,664) 20,854 32,873
Margin: GM OM NM OpExp	5.6% 0.6% 2.9% (5.0%) 1.1% 2.2% 0.3% 1.8% (4.8%) (4.5%) 5.9% 6.7%

1Q18 BALANCE SHEET

1Q18 BALANCE SHEET
Balance Sheet	3/31/2018 12/31/2017
(NT$ million) Cash Equivalents Debt Inv with no active market Receivables Inventories Current Assets Long-term Investments PP&E Total Assets ST Loans Payables Current Liabilities LT Loans Total Liabilities Common Shares Total Shareholder's Equities	21,609 19,402 4,992 5,535 5,386 5,331 5,609 7,298 38,829 44,680 253 256 32,349 34,211 75,045 82,978 17,653 14,046 8,860 18,513 32,430 39,908 3,756 3,500 38,603 45,808 4,067 4,067 36,442 37,171
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	1.02 1.11 1.20 1.33 0.7% 7.3% Net Cash Net Cash

Note: PP&E includes prepayments.

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