Transcend — Interim / Quarterly Report 2018

Nov 9, 2018

Transcend Information, Inc. Investor Conference

【 Symbol: 2451 】

November 09,2018

Disclaimer

The predictive and financial information mentioned in the present briefing as promulgated simultaneously is based on the information obtained by the Company from internal and external sources. The actual operating result and financial condition might be different from the predictive information which is explicit or implicit. The reason may come from the various risks that the Company cannot control. The future outlook contained in the present briefing reflects the Company’s perspective to date. In case of a change or adjustment in the future, the Company assumes no responsibility to remind or update.

Agenda

 Company Overview

 Financial Information

 Q&A

Company Overview

Transcend at a Glance

==> picture [439 x 267] intentionally omitted <==

Top 20 Taiwan Global Brand

For the 11th consecutive year, Transcend is ranked in Interbrand’s BEST TAIWAN GLOBAL BRANDS with a brand value of USD $138 million in 2017

Award Records

==> picture [534 x 138] intentionally omitted <==

Media

Recommendations

==> picture [110 x 56] intentionally omitted <==

==> picture [83 x 78] intentionally omitted <==

==> picture [66 x 66] intentionally omitted <==

==> picture [58 x 58] intentionally omitted <==

==> picture [41 x 61] intentionally omitted <==

==> picture [47 x 55] intentionally omitted <==

==> picture [97 x 43] intentionally omitted <==

==> picture [75 x 59] intentionally omitted <==

==> picture [51 x 60] intentionally omitted <==

Global Network 14 offices & 1 factory

==> picture [704 x 403] intentionally omitted <==

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

United Shanghai, Shenzhen, Beijing, Korea Japan Silicon
Kingdom China China China (2008) (1997) Valley, USA
(2005) (2001) (2002) (2000) (2013)
The Maryland,
Netherlands USA
(1996) (2005)
Hong Kong Taiwan HQ Taipei LA, Miami,
Germany
(1992) (2000) (1988) Factory USA USA
(2011) (1990) (2011)
----- End of picture text -----

A Wide Product Portfolio 2,000+ products sold in 140+ countries from consumer electronics products to embedded solutions

==> picture [469 x 317] intentionally omitted <==

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

Consumer
Products
Solid State Drives Dashcams Body Cameras Apple Solutions
Memory Cards USB Flash Drives External storage Personal Cloud Storage
----- End of picture text -----

==> picture [214 x 154] intentionally omitted <==

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

Embedded
Products
SSD Solutions Flash Solutions
----- End of picture text -----

==> picture [214 x 79] intentionally omitted <==

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

Memory Cards DRAM Modules
----- End of picture text -----

Product Launch

Consumer Products

==> picture [109 x 109] intentionally omitted <==

SDXC/SDHC 500S

Perfect for advanced camcorders and DSLR cameras

==> picture [75 x 75] intentionally omitted <==

==> picture [46 x 46] intentionally omitted <==

microSDXC/SDHC 500S For action cameras and drone cameras

==> picture [114 x 115] intentionally omitted <==

SDXC/SDHC 300S

Perfect for digital cameras and camcorders

==> picture [80 x 80] intentionally omitted <==

==> picture [48 x 48] intentionally omitted <==

microSDXC/SDHC 300S For mobile devices

Product Launch

Dashcams & Body

DrivePro™

==> picture [171 x 95] intentionally omitted <==

==> picture [171 x 121] intentionally omitted <==

==> picture [193 x 134] intentionally omitted <==

DrivePro 110 Dashcam High-sensitivity image sensor

DrivePro™ Body

==> picture [184 x 129] intentionally omitted <==

DrivePro Body 30 Body Camera Supports Bluetooth and Wi-Fi connection

DrivePro 230 Dashcam

DrivePro 550 Dashcam Dual lens camera

Comprehensive protection of your on-road safety

==> picture [282 x 194] intentionally omitted <==

==> picture [179 x 120] intentionally omitted <==

DrivePro Body 60 Body Camera

Separate camera unit for flexible deployment

Product Launch

Apple Solutions

SSD Upgrade Kits for Mac

JetDrive 855

Thunderbolt PCIe portable SSD for Mac

JetDrive 850

NVMe PCIe Gen3 x4 SSD for Mac

JetDrive 825

Thunderbolt PCIe portable SSD for Mac

Portable Storage for Mac

StoreJet 200 for Mac USB Type-C portable hard drive

StoreJet 600 for Mac Equipped with USB 3.1 Gen 2 and Type-C interfaces

Financial Information

2018~Q3 Consolidated I/S

			Unit: NTD$ million (Except EPS)	Unit: NTD$ million (Except EPS)	Unit: NTD$ million (Except EPS)
	2018~Q3		2017~Q3		YoY
Sales Cost ofgoods sold	Amount	%	Amount 16,147 11,855 4,292 1,168 3,124 (555)	%	%
	13,643 10,847	100.0 79.5		100.0 73.4	-15.5 -8.5
Sales Margin OperatingExpenses	2,796 1,089	20.5 8.0		26.6 7.2	-34.9 -6.8
Operating Income Non-OP Income &Exp.	1,707 422	12.5 3.1		19.3 -3.4	-45.4 176.1
Income Before Tax Net Income	2,129 1,691	15.6 12.4	2,569 2,060 4.78	15.9 12.8	-17.1 -17.9
Earnings Per Share	3.93

2018Q3 Consolidated B/S

			Unit: NTD$ million	Unit: NTD$ million	Unit: NTD$ million
	2018Q3		2017Q3		YoY
Total Assets Current Assets Cash & cash equivalnets Accounts Receivable Inventory Property, plant and equipment Total Liabilities Current Liabilities Accounts Payable Total Equities Financial Ratio Return on Equity Return on Assets	Amount	%	Amount 22,443 18,803 1,975 3,010 5,662 2,934 2,578 2,390 1,733 19,865 13.83 12.24	%	%
	21,139	100.0		100.0	5.8 -
	15,288 1,145 2,489 4,151 5,254 1,559	72.3 5.4 11.8 19.6 24.9 7.4		83.8 8.8 13.4 25.2 13.1 11.5	18.7 - 42.0 - 17.3 - 26.7 - 79.1 39.6 -
	1,325 990 19,580	6.3 4.7 92.6		10.6 7.7 88.5	44.6 - 42.9 - 1.4 -
	11.52 10.67

2018Q3 Consolidated Cash flow

Unit: NTD$ million

Consolidated income before income tax

Adjustment

Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities

Effect of foregin exchange rate change

Increase in cash and cash equivalnets Cash and cash equivalnets at beginning of the year

Cash and cash equivalnets at end of the

==> picture [342 x 321] intentionally omitted <==

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

||||
|---|---|---|
|2018Q3|2017Q3|YoY|
|Amount|Amount|%|
|- 17.1|
|2,129|2,569|
|(213)|(882)|75.8|
|1,916|1,687|13.6|
|(1,818)|1,038|- 275.2|
|-|
|(2,585)|(2,585)|
|(14)|(8)|- 79.5|
|(2,501)|132|- 1,993.9|
|3,646|1,843|97.9|
|1,145|1,975|- 42.0|

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

Product Mix from 2016 to 2018Q3

==> picture [690 x 326] intentionally omitted <==

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

12.7%
17.5% 18.2%
19.2%
19.7% 19.2%
18.9% 18.8% 31.3%
43.9% 43.9%
36.9%
2018Q3 2017 2016
----- End of picture text -----

Industrial Products Consumer Flash Products Strategic Products STD DRAM Module Products

Territories from 2016 to 2018Q3

==> picture [720 x 311] intentionally omitted <==

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

2018Q3 2017 2016
5.3% 4.8%
5.5%
22.2%
25.7% 27.0%
24.2%
23.9%
25.2%
9.0% 11.1%
9.0%
37.8%
34.6%
34.8%
台灣 亞洲 美洲 歐洲 其他
----- End of picture text -----

2013-2018Q3 EPS by Quarter

	**Q1 **	**Q2 **	**Q3 **	**Q4 **
2013	2.02	2.33	1.44	1.64
2014	2.09	1.95	2.24	2.39
2015	1.94	1.14	2.52	1.88
2016	1.45	1.77	1.10	2.37
2017	1.33	1.80	1.65	1.39
2018	1.11	1.68	1.13

From 2013 to date, the average Quarterly EPS is above $1.

Note: Outstanding shares: 2013~2018Q3 431 million shares

Dividend Pay-out 2013-2017

==> picture [653 x 454] intentionally omitted <==

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

Payout Ratio
90.9% 97.2%
90.2% 90.0%
89.7%
8.67
7.43 7.48
6.69
6.17
0.25 0.20
7.80
6.70 6.80
5.75 5.80
2013 2014 2015 2016 2017
EPS Cash Dividend Capital Surplus
----- End of picture text -----

Dividend Yield 2013-2017

==> picture [681 x 411] intentionally omitted <==

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

7.86%
7.42%
7.16%
6.72%
6.56% (1)
4.60%
4.35%
3.95%
3.55%
3.26%
2013 2014 2015 2016 2017
Transcend Taiwan Stock Exchange (2)
----- End of picture text -----

Note:

(2) Data from TWSE statistics of securities market

(1) Based on average market price

Q & A

Thank You