UNEEC — Interim / Quarterly Report 2018

Nov 12, 2018

==> picture [386 x 48] intentionally omitted <==

==> picture [494 x 107] intentionally omitted <==

3Q 18 Earnings Results

2018/11/12

Agenda

Corporate Profile P1~P2 Product Description P3~P8 Operational Overview P9~P18

Q&A

==> picture [490 x 109] intentionally omitted <==

Corporate Profile

． Stock Code ： 3013

． Main Products

• ． Paid-in Capital ：NT$1.69 Bn

1. Sever chassis

． Chairman ： James Lin

2. Mobile device components

• ． President ：Charles Lo

3. Computer peripherals

• ． Production Base ：

4. Mold

Dong-guan, Guangdong Ningbo, Zhejiang

1

Corporate History

==> picture [72 x 85] intentionally omitted <==

==> picture [678 x 284] intentionally omitted <==

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

•
The introduction of NMT
& MIM manufacturing
• Set up Donguan
and Ningbo Plants.
•
Development of
• CNC process.
Manufacturing and
•
Manufacturing and
design of sever
designing computer chassis. • Intelligent Manufacturing
chassis.
• and management.
Founded in 1970, • The application of
tooling design and
listing has been
manufacturing
approved.
----- End of picture text -----

2

Product Description

==> picture [24 x 9] intentionally omitted <==

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

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

==> picture [667 x 280] intentionally omitted <==

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

Smart Phone
 Assembly Integrated Rack  SIM Tray
Data Center
 Audio/USB Ring
 Function Key
 Metal Logo
Handheld Device
Cloud Computing
Data Center/Server
Anytime Anywhere Handheld Device
 Customized
 Metal housing
1U/2U/3U/4U/..
Computers Note Book Tablet
DT
 One-stop shop  Metal cover  Metal cover
 Mechanical solution  Function key  Function key
----- End of picture text -----

3

Products-Data Center & DT Sever chassis & Desktop peripherals

 Integrated process of manufacturing service

==> picture [378 x 187] intentionally omitted <==

Precision Mold

Stamping

Injection

Painting

Assembly

4

Products-Data Center & DT Sever chassis & Desktop peripherals

 Process

==> picture [490 x 109] intentionally omitted <==

==> picture [308 x 177] intentionally omitted <==

==> picture [251 x 132] intentionally omitted <==

==> picture [8 x 10] intentionally omitted <==

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

5
----- End of picture text -----

Products-Data Center & DT

Sever chassis & Desktop peripherals

 Category of products

==> picture [177 x 194] intentionally omitted <==

==> picture [455 x 307] intentionally omitted <==

6

Products-Mobile Device

MIM

 Process

==> picture [490 x 109] intentionally omitted <==

7

Products-Handheld Device

MIM

 The comparison between MIM technique and traditional metal manufacturing technique.

==> picture [576 x 263] intentionally omitted <==

8

3Q/2018 Income Statement

						In	NT$ millions	NT$ millions
	3Q18	%	2Q18	%	QoQ(%)	3Q17	%	YoY(%)
Net sales revenue	$2,044	100	$1,377	100	48.4%	$1,276	100	60.2%
Cost of sales	1,831	90	1,356	98	35.0%	1,054	83	73.7%
Gross profit	213	10	21	2	914.3%	222	17	-4.1%
Operating expenses	106	5	84	6	26.2%	88	7	20.5%
Net operating income	107	5	(63)	(5)		134	11	-20.1%
Non-operating income and expenses：	50	2	65	5		(5)	(0.4)
Profit before tax	157	8	2	0.1	7750.0%	129	10	21.7%
Income tax expenses	25	1	11	1	127.3%	14	1	78.6%
Profit	$132	6	($9)	(1)		$115	9	14.8%
Profit belongs to：							$0
Parent entity	$106	5	($12)	(1)		$111	9	-4.5%
Non-controlling interests EPS	$26 0.63	1.3	$3 (0.07)	0.2		$4 0.65	0.3	-3.5%

9

Income Statement

In NT$ millions

==> picture [590 x 334] intentionally omitted <==

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

2018.1~9 % 2017.1~9 % YoY(%)
Net sales revenue $4,507 100 $3,527 100 27.8%
Cost of sales 4,209 93 3,019 86 39.4%
Gross profit 298 7 508 14 -41.3%
Operating expenses 275 6 247 7 11.3%
Net operating income 23 1 261 7 -91.2%
Non-operating income and 83 2 (34) (1)
expenses：
Profit before tax 106 2 227 6 -53.3%
Income tax expenses 26 1 28 1
2 6 -
Profit $80 $199 59.8%
Profit belongs to：
Parent entity $60 1 $167 5 -64.1%
Non-controlling interests $20 0 $32 1
EPS 0.35 0.98 -64.3%
----- End of picture text -----

10

Operating Revenue during 2016-2018

==> picture [534 x 319] intentionally omitted <==

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

In NT$ millions
2200
2044
2000
1800
1600
1400 1270 1276 1312 1377
1197 1180
1200
1078 1072 1086
1000
800 730
600
400
200
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
----- End of picture text -----

11

Operating Revenue by Products during 2016-2018

In NT$ millions

==> picture [590 x 275] intentionally omitted <==

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

2200
2000
228
1800
326
1600
1400
100
1200 44 88 40 64 214 506 模具
122 252 221
1000 85 253 237 6 158 41 DT
230 269 311 196 305 行動狀置
800 322 335 320 364 183 SEVER
56 209
600 260
245
984
400 171 578 610 588 580 620 716 666 758
503
200
258
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
----- End of picture text -----

12

Gross Profit during 2016-2018

Gross Profit

In NT$ millions

==> picture [505 x 225] intentionally omitted <==

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

250
224 222
213
195
200
154
149 147
150 139
100
66
50 41
21
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
----- End of picture text -----

13

Operating Profit during 2016-2018

Operating Profit

In NT$ millions

==> picture [537 x 264] intentionally omitted <==

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

150
134
130
109
106
110 101
90
74
67
70 61 59
50
30
10
-10 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
-30 -23 -21
-50 -42
----- End of picture text -----

14

EPS during 2016-2018

==> picture [540 x 290] intentionally omitted <==

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

0.7
0.65
0.63
0.61
0.6
0.5
0.45
0.4
0.3 0.27 0.27
0.25
0.2
0.1 0.06
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
-0.1 -0.07
-0.2 -0.17 -0.2
----- End of picture text -----

15

3Q/2018 Balance Sheet

In NT$ millions

Assets		Amount % 2018.09.30	Amount % 2018.09.30	2017.09.30	2017.09.30
		Amount		Amount	%
Current assets： Cash and cash equivalents Notes and Accounts receivable, net Inventories, net Other current financial assets Subtotal Property, plant and equipment Other non-current assets		$269 2,189 928 86 3,472 1,128 534	5% 43% 18% 2% 68% 22% 10%	$347 1,379 618 78 2,422 1,153 527	8% 34% 15% 2% 59% 28% 13%
Total assets		$5,134	100%	$4,102	100%
Current liabilities Short-term loans Notes and Accounts payable Other current liabilities Subtotal Non-Current liabilities Long-term loans Other non-current liabilities		$300 1,574 368 2,242 289 12	6% 31% 7% 44% 6% 0%	$150 808 338 1,296 217 14	4% 20% 8% 32% 5% 0%
Total liabilities Total equity		2,543 $2,591	50% 50%	1,527 2,493	37% 61%
AR turnover days Inventory turnover days Current ratio Debt ratio		111 55 2 50%		98 57 2 37%

16

3Q/2018 Statements of Cash Flows

	In NT$ millions
	3Q 18 3Q 17
Cash flows from (used in) operating activities	(164) 144
Profit before tax Depreciation expense Decrease (increase) in notes receivable Decrease in inventories Decrease (increase) in inventories Other	106 227 183 152 (726) (216) (153) 12 378 (1) 48 (30)
Cash flows from (used in) investing activities	(173) (292)
Acquisition of property, plant and equipment Acquisition of subsidiary (After deducting the cash received) Others	(140) (119) 0 (153) (33) (20)
Cash flows from (used in) financing activities	91 (103)
Increase in short-term loans Decrease in other borrowings Payments to acquire treasury shares Cash dividends paid Others Net increase (decrease) in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period	150 10 79 (21) 0 - (85) (85) (53) (7) (246) (251) (19) (7) 534 605
Cash and cash equivalents at end of period	269 347

17

Business Prospect

※ Steady growth of operating income.

※ Strengthen the profitable portfolio.

※ Optimization of intelligent manufacturing.

※ Enhancement of corporate social responsibility and corporate governance.

18

THANK YOU

Better life through creative innovations Q & A

19