Twinhead — Interim / Quarterly Report 2017

Dec 1, 2017

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Twinhead International Corp. Investor Conference

Date：December 1,2017

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Disclaimer

The information presented and referred herein are based upon the information obtained internally and externally from our company. In light of the forward-looking operational results, financial condition and business results, they might be different from those information expressly or impliedly presented herein due to various factors, including but not limited to market risks, supply chains, market demand and our upcoming high-quality products.

We undertake no obligation to publicly update or revise any statements regarding those information presented and referred herein in the event of any further changes or updates to the information presented herein.

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Agenda

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1 Company Overview
2 Business Profile
3 Financial Report
4 Q&A
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1 Com an Overview p y

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Basic Information(1)

Established 1984 IPO 1997 Paid-in Capital NTD1,989 million Chairman Yu-Jen Kao GM Su-Fu Kao

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Basic Information(2)

HQ Taiwan(Neihu,Taipei) Manufacturing Taiwan(Kaoshiang)、 Location China(Kunshan) Employee 220 Main Product Rugged NB & Tablet

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Group Organization Chart
倫飛電腦
Twinhead International Corp.
100% 99% 99%
倫飛 ( 亞洲 ) 倫翔科技 育豐科技
Twinhead(Asia) Twintek Yu Feng
23.6% 17%
100% 100% 100%
倫飛 (BVI) 倫飛電腦 ( 昆山 ) 昆山倫騰電子 美國倫飛
Twinhead(BVI) Twinhead(Kunshan) Kunshan Lun Teng Gammatech
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59.4%

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2 Business Profile

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Core Business Introduction

• Core Business : Design/Manufacturing/Sales of Rugged Mobile Devices

• Business Model : Brand Durabook 60% ODM/Others 40%

• Major Application Market : Defense Public Safety(Police Fire Fighter Ambulance) Industries in Hazardous/Explosive Environment (Utility Oil/Gas Food Processing)

• Sales Model : Projects, Run-rate

• Channel Structure : System Integrator, Distributor/Re-seller

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Durabook Key Initiatives

• Expedite localization in major markets(Sales, Marketing, Services)

• Enhance/re-new core product offering

• • Strengthen capability to customize core products

• Enrich solution/peripherals to compliment core products

• Optimize supply chain

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Revenue Ratio by Product

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Revenue Ratio by Region

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3 Financial Re ort p

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Consolidated Revenue

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Consolidated Revenue-by Year Consolidated Revenue-by Quarter
178
174
162
846
825
139 136
450
2015 2016 2017Q1-3
Unit：NTD M
Unit：NTD M
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Consolidated Income Statements(1)

Consolidated Income Statements(1)	Consolidated Income Statements(1)	Consolidated Income Statements(1)	Consolidated Income Statements(1)	Consolidated Income Statements(1)	Consolidated Income Statements(1)
Unit：NTD K
	2016		2017	QoQ	YoY
	Q3	Q2	Q3	％	％
Operatingrevenue	161,768	136,314	173,887	27.6%	7.5%
Gross profit	20,462	28,013	37,417	33.6%	82.9%
GP ratio(%)	12.65	20.55	21.52
Operatingexpenses	81,420	63,049	65,996	4.7%	-18.9%
Expenses ratio(%)	50.33	46.25	37.95
Operatingloss	(60,958)	(35,036)	(28,579)	18.4%	53.1%
Non-operating income and expenses	(17,369)	11,263	5,064	-55.0%	129.2%
Net loss before tax	(78,327)	(23,773)	(23,515)	1.1%	70.0%
Net loss	(78,424)	(23,774)	(23,481)	1.2%	70.1%
EPS(NTD)	(0.86)	(0.16)	(0.16)	0.0%	81.4%

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Consolidated Income Statements(2)

Unit：NTD K	Unit：NTD K	Unit：NTD K	Unit：NTD K	Unit：NTD K
	2016	2017	QoQ Yo	YoY Y
	Q1-3	Q1-3	Amount	％
Operatingrevenue	668,385	449,648	(218,737)	-32.73%
Gross profit	137,361	102,072	(35,289)	-25.69%
GP ratio(%)	20.55	22.70
Operatingexpenses	250,338	196,023	(54,315)	-21.70%
Expenses ratio(%)	37.45	43.59
Operatingloss	(112,977)	(93,951)	19,026	16.84%
Non-operating income and expenses	(25,073)	(13,558)	11,515	45.93%
Net loss before tax	(138,050)	(107,509)	30,541	22.12%
Net loss	(139,293)	(107,556)	31,737	22.78%
EPS(NTD)	(1.53)	(0.76)	0.77	50.33%

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Consolidated Balance Sheets

				2016 9/30 12/31 590,000 535,000 560 179 86,223 75,130 62,618 60,582 4,708 5,125 38,547 58,962 782,656 734,978 3,533 3,532 2,249 2,789 5,782 6,321 788,438 741,299 939,398 1,189,398 - - (343,159)(577,608) 24,125 25,872 (202,059)(202,059) 121 121 418,426 435,724 1,206,864 1,177,023 2017 9/30 475,000 195 86,404 44,079 4,993 36,079 646,750 3,268 2,283 5,551 652,301 1,989,398 - (1,322,114) 27,758 (202,059) 121 493,104 1,145,405 Unit：NTD K Liabilities Current liabilities Short-term borrowings Notespayable Accountspayable Otherpayables Provisions-current Other current liabilities Total current liabilities Non-current liabilities Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Capital surplus Accumulated deficits Financial statements translation differences Treasuryshares Non-controllinginterests Total equity Total liabilities and equity	2016 9/30 12/31 590,000 535,000 560 179 86,223 75,130 62,618 60,582 4,708 5,125 38,547 58,962 782,656 734,978 3,533 3,532 2,249 2,789 5,782 6,321 788,438 741,299 939,398 1,189,398 - - (343,159)(577,608) 24,125 25,872 (202,059)(202,059) 121 121 418,426 435,724 1,206,864 1,177,023 2017 9/30 475,000 195 86,404 44,079 4,993 36,079 646,750 3,268 2,283 5,551 652,301 1,989,398 - (1,322,114) 27,758 (202,059) 121 493,104 1,145,405 Unit：NTD K Liabilities Current liabilities Short-term borrowings Notespayable Accountspayable Otherpayables Provisions-current Other current liabilities Total current liabilities Non-current liabilities Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Capital surplus Accumulated deficits Financial statements translation differences Treasuryshares Non-controllinginterests Total equity Total liabilities and equity	2016 9/30 12/31 590,000 535,000 560 179 86,223 75,130 62,618 60,582 4,708 5,125 38,547 58,962 782,656 734,978 3,533 3,532 2,249 2,789 5,782 6,321 788,438 741,299 939,398 1,189,398 - - (343,159)(577,608) 24,125 25,872 (202,059)(202,059) 121 121 418,426 435,724 1,206,864 1,177,023 2017 9/30 475,000 195 86,404 44,079 4,993 36,079 646,750 3,268 2,283 5,551 652,301 1,989,398 - (1,322,114) 27,758 (202,059) 121 493,104 1,145,405 Unit：NTD K Liabilities Current liabilities Short-term borrowings Notespayable Accountspayable Otherpayables Provisions-current Other current liabilities Total current liabilities Non-current liabilities Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Capital surplus Accumulated deficits Financial statements translation differences Treasuryshares Non-controllinginterests Total equity Total liabilities and equity	2016 9/30 12/31 590,000 535,000 560 179 86,223 75,130 62,618 60,582 4,708 5,125 38,547 58,962 782,656 734,978 3,533 3,532 2,249 2,789 5,782 6,321 788,438 741,299 939,398 1,189,398 - - (343,159)(577,608) 24,125 25,872 (202,059)(202,059) 121 121 418,426 435,724 1,206,864 1,177,023 2017 9/30 475,000 195 86,404 44,079 4,993 36,079 646,750 3,268 2,283 5,551 652,301 1,989,398 - (1,322,114) 27,758 (202,059) 121 493,104 1,145,405 Unit：NTD K Liabilities Current liabilities Short-term borrowings Notespayable Accountspayable Otherpayables Provisions-current Other current liabilities Total current liabilities Non-current liabilities Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Capital surplus Accumulated deficits Financial statements translation differences Treasuryshares Non-controllinginterests Total equity Total liabilities and equity
	2016		2017		2016		2017
	9/30	12/31	9/30		9/30	12/31	9/30
Assets				Liabilities
Current assets				Current liabilities
Cash and cash equivalents	127,055	133,050	132,779	Short-term borrowings	590,000	535,000	475,000
Notes receivable	6,122	3	715	Notespayable	560	179	195
Accounts receivable, net	89,116	87,026	62,774	Accountspayable	86,223	75,130	86,404
Other receivables	58	66	24	Otherpayables	62,618	60,582	44,079
Inventories	231,194	212,172	226,430	Provisions-current	4,708	5,125	4,993
Other current assets	18,172	18,938	14,468	Other current liabilities	38,547	58,962	36,079
Total current assets	471,717	451,255	437,190	Total current liabilities	782,656	734,978	646,750
Non-current assets				Non-current liabilities
Financial assets at cost	35,890	35,890	44,859	Guarantee deposits received	3,533	3,532	3,268
Property, plant and equipment	459,102	452,004	434,176	Other non-current liabilities	2,249	2,789	2,283
Investment property, net	150,131	149,781	148,728	Total non-current liabilities	5,782	6,321	5,551
Deferred tax assets	53,051	52,668	51,516	Total liabilities	788,438	741,299	652,301
Refundable deposits	7,204	7,052	6,970	Equity
Other non-current assets	29,769	28,373	21,966	Share capital	939,398	1,189,398	1,989,398
Total non-current assets	735,147	725,768	708,215	Capital surplus	-	-	-
				Accumulated deficits	(343,159)	(577,608)	(1,322,114)
				Financial statements translation differences	24,125	25,872	27,758
				Treasuryshares	(202,059)	(202,059)	(202,059)
				Non-controllinginterests	121	121	121
				Total equity	418,426	435,724	493,104
Total assets	1,206,864	1,177,023	1,145,405	Total liabilities and equity	1,206,864	1,177,023	1,145,405
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4 Q&A

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The End

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