TPK — Interim / Quarterly Report 2019

Aug 30, 2019

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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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2Q19 Result Summary 2019年第二季營運簡報

NT$	Revenues	Net Profits	EPS
2Q19	28.5 bn	54 mn	0.13

• Revenues were better-than-expected in the backdrop of strong smartphone and notebook demand

• Operating performance was negatively affected due to lower business scale and unfavorable product mix

• Operating expenses of NT$1.2 bn, 4.3% of sales

• Strong EBITDA at NT$2.4 billion

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Financials

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2Q19 Profit & Loss

2019年第二季損益表

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Quarterly Sales by Form Factors 季營收結構

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2Q19 Balance Sheet 2019年第二季資產負債表

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Note: PP&E includes prepayments.

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July 2019 Sales 2019年7月營收

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FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2019

Taipei, Taiwan, August 5[th] , 2019 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2019 second quarter unaudited operating results. Company reported net profits of NT$54 million, or earnings per share of NT$0.13 for the quarter. For the first six months of 2019, net profit totaled NT$79 million, or earnings per share of NT$0.19.

2Q19 Operating Results

Second quarter revenues were NT$28,452 million, up 59.9% year-on-year in the backdrop of robust smartphone and tablet shipments compared to the same period last year, but down 8.7% quarter-on-quarter due to production transition and seasonal weakness. In spite of lower utilization rate and unfavorable product mix, gross margin improved slightly from 3.9% in the previous quarter to 4.2% in the second quarter by virtue of production yield enhancement and effective cost management.

In terms of COGS, raw material cost as a percentage of sales reduced from 82.0% in 1Q19 to 80.9% in 2Q19, which was attributable to yield rate enhancement and product mix change. Labor cost also reduced from 5.7% of revenues in the quarter earlier, to 5.5% in this quarter, owing to effective headcount management. On the other hand, depreciation cost remained flattish sequentially, but soared from 6.1% of sales in the first quarter to 6.6% given lower business scale in the second quarter.

Operating expenses increased slightly to NT$1,210 million in Q2 from NT$1,094 million in the last quarter. In conjunction with decreased business scale, operating result was barely breaking even with an operating loss of NT$14 million for the quarter. 2Q19 net interest expenses were NT$57 million, down from NT$86 million in Q1. The Company also recorded foreign exchange gain of NT$109 million for the quarter. As of June 30[th] 2019, total number of employees was 22,902.

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Balance Sheet & Cash Flow

As of June 30[th] 2019, cash & cash equivalent and financial assets totaled NT$24.3 billion, up from NT$22.9 billion at the end of first quarter. Capital expenditure for the quarter was NT$1,009 million on accrual basis, primarily for new equipment for SNW capacity. Total bank borrowings, as end of this quarter, totaled NT$21.2 billion, down from NT$23.5 billion in 1Q19. 2Q19 EBITDA amounted to NT$2.4 billion. EBITDA for the first half of 2019 amounted to NT$4.8 billion.

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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2Q19 PROFIT & LOSS

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2Q19 BALANCE SHEET

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Note: PP&E includes prepayments.

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