TXC - Investor Presentation 2017 | FinancialReports.eu

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Investor Conference May 10[th] 2017

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TXC Confidential and Proprietary

Disclaimer

Except for statements in respect of historical matters, the statements in this release are forwardlooking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance, financial condition or results of operations of TXC to be materially different form what may be implied by such forwardlooking statements.
The financial forecasts and forward-looking statements in the release reflect the current belief of TXC as of the date of this release and TXC undertakes no obligation to update these forecasts and forward-looking statements for events or circumstances that occur subsequent to such date.
The statements in respect of historical matters may contain unaudited information, which may have certain deficiency or weakness so as not to fairly present financial condition or the results of operations of TXC.

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TXC Confidential and Proprietary

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Topic Presenter
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Agenda 14:00~15:00

Topic	Presenter
Introduction	Peter Lin, President
Financial Performance	Vivien Hung, Chief Financial Officer
Roads to New Growth Trend, Opportunity & Growth	Hanlim Lee, Marketing Director
Business Summary	Hanlim Lee, Marketing Director
Q & A

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TXC Confidential and Proprietary

Financial Performance P&L, EPS, DPS, CAPEX

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TXC Confidential and Proprietary

Quarterly Performance Stable Growth Benefited from various of markets penetration

Unit: $NT in Million

2014: 9,526	2015: 9,266
(yoy +0.23%)	(yoy -2.73%)

2016: 9,637 (yoy +4.00%)

	14.Q1	14.Q2	14.Q3	14.Q4	15.Q1	15.Q2	15.Q3	15.Q4	16.Q1	16.Q2	16.Q3	16.Q4	17.Q1
Revenue(QoQ)	-9.8%	8.9%	6.8%	-1.4%	-14.0%	4.0%	8.9%	3.2%	-15.4%	8.3%	13.9%	1.7%	-19.3%
Revenue(YoY)	-6.9%	1.2%	3.0%	3.5%	-1.4%	-5.9%	-4.1%	0.5%	-1.2%	2.9%	7.6%	6.0%	1.1%

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TXC Confidential and Proprietary

Quarterly Performance Gain in Gross Profit

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Gross
Margin(%)
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Contributed by new products, new customers and product mix strategy

Unit: $NT in Million

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Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%	Gross Profit 2015: 2,235 (yoy -4.12%) 2016: 2,554 (yoy +14.27%) 2014: 2,331 (yoy +6.24%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Gross Profit(QoQ) -7.3% 13.8% 5.2% 4.1% -15.9% -8.0% 18.4% 8.6% -3.3% -7.3% 20.0% 3.2% -13.9% Gross Profit(YoY) -2.5% 2.3% 9.3% 15.5% 4.8% -15.3% -4.6% -0.5% 14.4% 15.2% 16.8% 11.0% -1.1%
	14.Q1	14.Q2	14.Q3	14.Q4	15.Q1	15.Q2	15.Q3	15.Q4	16.Q1	16.Q2	16.Q3	16.Q4	17.Q1
Gross Profit(QoQ)	-7.3%	13.8%	5.2%	4.1%	-15.9%	-8.0%	18.4%	8.6%	-3.3%	-7.3%	20.0%	3.2%	-13.9%
Gross Profit(YoY)	-2.5%	2.3%	9.3%	15.5%	4.8%	-15.3%	-4.6%	-0.5%	14.4%	15.2%	16.8%	11.0%	-1.1%

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TXC Confidential and Proprietary

Quarterly Performance Gain in Net Profit

Net Margin%

Resulted from overall costs control, high-end product sales

Unit: $NT in Million

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Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%	Net Profit 2016: 1,016 (yoy +8.31%) 2015: 938 (yoy -5.72%) 2014: 995 (yoy +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0%
	14.Q1	14.Q2	14.Q3	14.Q4	15.Q1	15.Q2	15.Q3	15.Q4	16.Q1	16.Q2	16.Q3	16.Q4	17.Q1
Net Profit(QoQ)	-8.3%	9.0%	10.7%	-1.9%	-15.9%	-19.9%	61.5%	-11.0%	-11.1%	-6.3%	27.3%	14.3%	4.1%
Net Profit(YoY)	6.2%	10.0%	1.5%	8.7%	-0.4%	-26.9%	6.7%	-3.3%	2.3%	19.7%	-5.6%	21.3%	42.0%

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TXC Confidential and Proprietary

Income Statement

Summary

Unit：$NT in thousand	2015	2016	YoY	Q1 2016	Q1 2017	Growth%
Net Revenue	9,265,656	9,637,101	4.0%	2,108,973	2,132,930	1.1%
Gross Profit	2,235,175	2,554,069	14.3%	610,015	603,099	-1.1%
Operating Profit	908,335	1,114,394	22.7%	280,581	263,674	-6.0%
Income before tax	1,087,610	1,192,272	9.6%	256,887	367,879	43.2%
Net Income	938,203	1,016,164	8.3%	226,166	321,133	42.0%

Gross Margin(%)	24.1%	26.5%	-	28.9%	28.3%	-
Operating Margin(%)	9.8%	11.6%	-	13.3%	12.4%	-
Net Margin(%)	10.1%	10.5%	-	10.7%	15.1%	-

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TXC Confidential and Proprietary

Balance Sheet

Summary

Unit：$NT in thousand	Q1 2016	2016	Q1 2017
Current Assets	8,348,464	8,818,130	8,337,901
Fixed Assets	4,395,342	4,277,905	4,266,155
Total Assets	14,640,399	14,841,968	14,026,798
Current Liabilities	2,381,004	3,156,105	3,411,428
Long-term Liabilities	1,854,345	1,912,681	1,053,723
Total Liabilities	4,235,349	5,068,786	4,465,151
Shareholders' Equity	10,405,050	9,773,182	9,561,647

Debt Ratio(%)	28.9%	34.2%	31.8%
Current Ratio(%)	350.6%	279.4%	244.4%
Quick Ratio(%)	276.4%	227.5%	191.2%
Book Value Per Share($NT)	33.59	31.38	30.71

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EPS and DPS

Stable Profit Growth and High Payout Ratio

0 0.5 1 1.5 2 2.5 3 3.5 4	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT	2.2 2.2 2.2 2.5 2.5 2.8 Earnings Per Share Cash Dividends Per Share Unit: $NT
	2.2 2.2 2.2 2.5 2.5 2.8

YEAR 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
Earnings Per Share		3.48	3.79	3.02	3.21	3.03	3.28
Cash Dividends Per Share		2.2	2.2	2.2	2.5	2.5	2.8
Stock Price(Apr. end)		43.55	46	43.55	39.9	41.1	44.5
Payout Ratio(%)		63.22	58.05	72.84	77.88	82.51	85.37
Yields(%)		5.05	4.78	5.05	6.27	6.08	6.29

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TXC Confidential and Proprietary

Capital Expenditure Expand the Economy of Scale Capacity expansion for new products, and to satisfy market demands

Amount: $450M

Unit: $NT

TSX
Sensors

Amount: $250M

SMD Crystal
• Facility

Amount: $150M

SMD Crystal
ACAP Crystal
• Facility

Total Amount: $850M

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TXC Confidential and Proprietary

Roads to New Growth Trend, Opportunity, Growth

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TXC Confidential and Proprietary

To Lock and Unlock

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Today
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They are capable of these… Sense > Connect > Communication > Analytics > Actions > Value They built-in these…

Sensors Sensors Timing Timing (TXC) (TXC)

Technology (Wireless) 4G/5G BT, WiFi, etc

A.I. Lock/ Unlock Lock/ Unlock Real time, Security, etc. Clouds (TSE Solenoid) Software/Apps

(August)

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TXC Confidential and Proprietary

Trend

Digital is already here, and becoming Intelligent All things can sense, all things are connected, and all things are intelligent

The path to connect anything and anywhere is on going > Massive Internet of Things

New mission-critical control services being introduced > Mission-Critical Control

Moving into the era of immersive experiences, and hyper connectivity > Enhanced Mobile Broadband

(Qualcomm)

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TXC Confidential and Proprietary

Digital and Intelligent Data is growing every second, AI is taking place Changing the way we do things, machines do things

Mobile data will Data Storage will Big Data 6.4M Apps 30B grow grow to 1.8 volumes will reach available as of connected devices 18-fold in 5 years Zettabyte (1000[7] ) 247 Exabyte today, by 2020 (Cisco) By 2020, (1000[6] ) by 2020, CAGR 40% (IDC) CAGR 40% CAGR 58% (Statista) (Cisco) (Cisco) Mobility Cloud Big Data Apps Internet of Things

Intelligent Networks

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TXC Confidential and Proprietary

High Data Rate, High Traffic Accelerate the path to 5G Market is scalable to an extreme variation of requirements

Multiple networks Multiple RATs Tough to have one-for-all Scalability Cost-efficiency Reduced latency Automated system management Coverage (<1 ms)HetNets Green networks – low power Virtualized networks

Smart grid and monitoring Higher system capacity Smart cities (1000x capacity/km[2 ] mHealth Automotive Fitness Energy savings, High resolution video/ Games/ Entertainment cost reductions Public safety Tight sync for OFDM-based radio Too much overhead for some traffic types Cell edge problems 5G Reliability Latency reductio ~~n~~ Mission critical integration Targets Uplink too thin Higher data rate 4G  5G Integration of overlaying cells More interferences Higher mobility (100x typical data rate) Many applications each with different set of QoE Higher throughputs for some apps: 100x Lower latency for other apps: <1 ms Higher netwrok capacity: 1000x TXC

IoT=Everything connected Low power Mobility D2D=Direct Communication between devices Massive device connectivity Universal software

(100x connected devices )

Unsynchronized assignment for some apps Base station still close to UE Non-orthogonal signaling for some aps but still equalization in frequency domain Massive MIMO = more MIMO More Carrier Aggregation More interference coordination or cancelation (simultaneous TX/RX) More internode coordination Beamforming Network coding

Many applications each with different set of QoE Higher throughputs for some apps: 100x Lower latency for other apps: <1 ms Higher netwrok capacity: 1000x Massive device connectivity: 100x

Become the leader in 5G by delivering high quality, high performance, highly integrated timing and sensing solutions – zero risk concept

(Qualcomm, IS Wireless)

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TXC Confidential and Proprietary

4G, 5G and other Wireless

Will co-exists Various of standards to meet different application needs

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(IS Wireless)

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TXC Confidential and Proprietary

Opportunity Everything Connected, Everything Sense Create endless possibilities

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Drive the Timing and Sensing growth vs. Time for market adoption, change, regulation, etc.

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(Qualcomm)

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Everything Connected Connectivity needs Timing (Crystal & Oscillator)

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(IDC)
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TXC #3 in Global Timing Market

Total Timing solutions provider
• Market leader in product miniaturization and integration

Coming in 2017

Miniature Crystals & Oscillators
Wide Temperature Range Crystals & Oscillators
High Frequency & Ultra Stability Oscillators

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TXC Confidential and Proprietary

Everything Sense Sensing needs Sensors

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(IDC)
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TXC #1 to launch

Smallest & High Performance

Ambient Light + Proximity Sensor in 2.5x2.0mm ceramic package

Coming in 2017

Color + Proximity Sensor
• PM2.5 Sensor Module

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TXC Confidential and Proprietary

Market Forecast Timing and Sensing are forecasted at stable growth

Global Timing Market

Estimated to reach US$3.8 billion by 2020 CAGR 4.2% (2015~2020)

TXC YoY 4% (NT$)

Forecasted 28 billion units by 2020 CAGR 8.5% (2015~2020)

TXC YoY (12%)

Source: CS&A, TXC

Cons:

MCU and AP integration will reduce the use of timing

Pros:

Global Light Sensor (Ambient, Color, Proximity) Market in Smartphone, NB, Tablets, Wearables

Estimated to reach US$ 2.14 billion by 2022 CAGR 9.3% (2016 and 2022)

TXC great opportunity to grow

Forecasted 6 billion units by 2022 CAGR 18% (2016~2022)

Source: IHS, Yole, TXC

Cons:

Sensors integration will reduce the use of standalone sensor

Everything connected is driving the timing growth

Pros:

Everything sense is driving the sensors growth

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TXC Confidential and Proprietary

Market Leader TXC #3 in Global, #1 in China

2015 Rank	2016 Rank	Company Name	Revenue (M)	Revenue (M)	Revenue (M)	Market Share (%)	Market Share (%)
			2015	2016	Percent Change	2015	2016
1	1	Seiko Epson	$427	$409	-4.2%	13.8%	12.9%
2	2	NDK	$338	$357	5.4%	10.9%	11.3%
3	3	TXC	$302	$310	2.8%	9.7%	9.8%
4	4	KCD	$301	$287	-4.5%	9.7%	9.1%
5	5	KDS	$201	$212	5.5%	6.5%	6.7%
6	6	Vectron	$163	$160	-2.0%	5.3%	5.1%
7	7	SIWARD	$95	$103	8.8%	3.1%	3.3%
8	8	Hosonic	$91	$94	2.8%	2.9%	3.0%
N/A	9	MegaChips	$35	$73	108.6%	1.1%	2.3%
10	10	Murata	$69	$72	5.0%	2.2%	2.3%
		Others	$1,080	$1,088	0.7%	34.8%	34.2%
		Total Revenue	$3,102	$3,165	2.0%

TXC started to gain Ambient Light Sensors market share, shipped over 120M units to Tier 1 Smartphones

Top 4 Suppliers for high-end smartphone AMS (TAOS, Heptagon) Broadcom (Avago) ROHM

TXC

TXC great opportunity to grow

(CS&A)

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New Growth Everything Connected and Sense Key growth products (Miniature, High Stability, Wide Temperature Range)

NFC, BT, ZigBee, RF4CE Miniature Xtal (1210) Low package profile, low ESR

WiFi Module Low Profile Xtal (1210) High drive, low ESR, wide temp (105C)

Wireless Module

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Optical Sensor Module Miniature ALS+PS (2520) Single aperture and slim bezel smartphone Miniature Color+PS (2520) Single aperture and slim bezel smartphone

GNSS Module Miniature TCXO (1612) Low profile, low voltage, wide temp (105C)

5G Modem

Miniature TSX (1612) High frequency, high drive level Miniature VCTCXO (1612) High stability, wide temp (105C)

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Particulate Matter Sensor Module Miniature PM2.5 Sensor Module

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High accuracy, integrated humidity and temperature sensors for environment monitor and control

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TXC Confidential and Proprietary

New Growth 5G Base Station, Small Cell & Networking Key growth products (Ultra Stability, Ultra Low Noise, High Frequency, High Reliability, Zero Defect Risk)

5G & Synchronization RRU (Radio Remote Unit) Close-in Ultra Low Phase Noise VCXO (3225) BBU (Baseband Unit) Ultra Stability OCXO (1409, 9775) Ultra stability Stratum 3 TCXO (5032) High Freq. Stratum 3 TCXO (1409)

Data Center & Synchronization High Freq. up to 2.1GHz & Ultra Low Jitter XO and VCXO (7050)

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New Growth

New in Automotive Applications Key growth products (High Reliability, Wide Temperature Range, Zero Defect Risk)

Infotainment & Telematics

Car audio Glass AR(2016) WiFi/BT combo Seam AJ(1612) GPS TSX AF(2016) GPS/WiFi/BT TCXO AK(2016)

ADAS, V2X, Self-Driving Surround View XO AW(2520) Rear/Front View XO AN(2016) Radar (LR/SR) TCXO AL(2520)

Security Electronic System

BCM(MCU) Glass AX(8045) BCM(MCU) Glass AV(3225) Cluster XO AW(2520)

Safety Electronic System TPMS Seam AJ(1612) BMS XO AU(3225)

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ADAS

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New Highlights Smallest, Innovative and Highest Integration

Highly Integrated, Smallest, Ultra Stability Oven Controlled Crystal Oscillator (OCXO) integrated in 9x7mm SMD package (Heater Ceramic Package Patented)

Highly Integrated, Smallest, High Performance Color+Proximity Sensor integrated in 2.5x2.0mm ceramic package (3D Stacking Ceramic Package Patented)

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Baseband Radio Access Network, mall Cell, Synchronous Networks (IEEE 1588, SyncE)

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Smartphone, Tablet, Wearables, Camera, IoT

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TXC Confidential and Proprietary

Revenue by Market Segments Expand in the New Growth Opportunities Penetrate in various markets, minimize market uncertainties

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AUTOMOTIVE
OTHERS 6% Crystal
AUTOMOTIVE 5% IoT
OTHERS 5% LIGHTING 6%
LIGHTING 6% IoT 2%
5%
4%
MOBILE
COMMUNICATION
27%
2017
NETWORKING 2016
36% (F)
NETWORKING
37%
MOBILE
COMMUNICATION
Stratum 3 TCXO
MOBILE
HF VCXO 31%
COMPUTING
17%
Sensors, TSX ,
MOBILE TCXO
COMPUTING
13%
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TXC Confidential and Proprietary

Revenue by Product Types Extend Beyond Timing, Diversify More Sensing Sell more varieties in established bases, strategic product mix and bundle

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LIGHTING
OTHERS 2%
5%
LIGHTING
OTHERS 4%
6%
XO
XO 10%
10%
CRYSTAL
CRYSTAL 50%
TSX
57%
4%
GNSS, TSX
2017
2016
3G/4G 8%
TCXO
(F)
11%
GNSS,
TCXO
3G/4G
SENSOR
Small Cell 13%
8%
Networking
PS, SENSOR
ALS+PS 12%
Color+PS
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TXC Confidential and Proprietary

Business Summary Create Value for Customers and Achieve Growth

Key Business Segments

IoT
Automotive
• 5G and Networking

1. Focus on new growth to achieve sales

2. Collaboration to accelerate technology and innovation development to achieve time to market

3. Highly market-driven strategy and trend alignment to maintain market leadership

4. Product mix and bundle strategy to achieve greater profits

5. Investment in facilities, technologies, and employees are crucial to achieve high standard of quality & performance, zero defect risk, and professional

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TXC Confidential and Proprietary

Q & A Investor Conference

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TXC Confidential and Proprietary

AI assistant

TXC — Investor Presentation 2017

52274_rns_2017-05-10_4c34de6f-b863-4c51-8847-6f6388a11316.pdf

Disclaimer

Quarterly Performance Stable Growth Benefited from various of markets penetration

Quarterly Performance Gain in Gross Profit

Contributed by new products, new customers and product mix strategy

Quarterly Performance Gain in Net Profit

Net Margin%

Resulted from overall costs control, high-end product sales

Income Statement

Summary

Balance Sheet

Summary

EPS and DPS

Stable Profit Growth and High Payout Ratio

Capital Expenditure Expand the Economy of Scale Capacity expansion for new products, and to satisfy market demands

Amount: $450M

Amount: $250M

Amount: $150M

To Lock and Unlock

Trend

Digital and Intelligent Data is growing every second, AI is taking place Changing the way we do things, machines do things

Intelligent Networks

High Data Rate, High Traffic Accelerate the path to 5G Market is scalable to an extreme variation of requirements

4G, 5G and other Wireless

Opportunity Everything Connected, Everything Sense Create endless possibilities

Everything Connected Connectivity needs Timing (Crystal & Oscillator)

TXC #3 in Global Timing Market

Coming in 2017

Everything Sense Sensing needs Sensors

Market Forecast Timing and Sensing are forecasted at stable growth

Global Timing Market

Cons:

Pros:

Cons:

Pros:

Market Leader TXC #3 in Global, #1 in China

New Growth Everything Connected and Sense Key growth products (Miniature, High Stability, Wide Temperature Range)

Wireless Module

New Growth 5G Base Station, Small Cell & Networking Key growth products (Ultra Stability, Ultra Low Noise, High Frequency, High Reliability, Zero Defect Risk)

New Growth

Infotainment & Telematics

Security Electronic System

New Highlights Smallest, Innovative and Highest Integration

Revenue by Market Segments Expand in the New Growth Opportunities Penetrate in various markets, minimize market uncertainties

Revenue by Product Types Extend Beyond Timing, Diversify More Sensing Sell more varieties in established bases, strategic product mix and bundle

Business Summary Create Value for Customers and Achieve Growth

Key Business Segments

Q & A Investor Conference

More from TXC

TXC Investor Presentation 2017