Weltrend — Interim / Quarterly Report 2018

Nov 15, 2018

偉詮電子股份有限公司 Weltrend Semiconductor, Inc. Investor Conference

Cindy Guo Tony Lin CFO and Spokesperson Executive Assistant to CEO Finance Division CEO’s Office

Nov 15, 2018

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Weltrend Semiconductor, Inc.
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P1

Safe Harbor Notice

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Forward-looking Statements

Weltrend’s statements and any others in this release that refer to business outlook, future plans, and expectations are forward-looking statements that involve a number of risks and uncertainties. Statements that refer to or are based on projections, uncertain events or assumptions also identify forwardlooking statements. Such statements are based on management's expectations as of the date of this earnings release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Weltrend presently considers the following to be important factors that could cause actual results to differ materially from the company's expectations.

~~Weltrend Semiconductor, Inc.~~

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Copyright © Weltrend 2018, All Rights Reserved

1Q18~3Q18 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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2018/1~9 % 2017/1~9 % YoY %	2018/1~9 % 2017/1~9 % YoY %	2018/1~9 % 2017/1~9 % YoY %	2018/1~9 % 2017/1~9 % YoY %	2018/1~9 % 2017/1~9 % YoY %	2018/1~9 % 2017/1~9 % YoY %
Net sales	1,948,971	100	1,740,977	100	11.95
Cost of good sold	(1,468,264)	(75)	(1,304,589)	(75)	12.55
Gross Profit	480,707	25	436,388	25	10.16
Operating Exp.	(366,057)	(19)	(352,272)	(20)	3.91
Selling & Adm.	(158,727)	(8)	(150,860)	(9)	5.21
R & D Exp.	(207,330)	(11)	(201,412)	(11)	2.94
Operating Income	114,650	6	84,116	5	36.30
Net Non-Operating Income	186,567	9	109,418	6	70.51
Income Before Tax	301,217	15	193,534	11	55.64
Income Tax Exp.	(57,871)	(3)	(24,293)	(2)	138.22
Net Income	243,346	12	169,241	9	43.79
EPS	1.14		0.76

~~Weltrend Semiconductor, Inc.~~

P3

Copyright  Weltrend 2018, All Rights Reserved

3Q18 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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3Q18 % 3Q17 % YoY %	3Q18 % 3Q17 % YoY %	3Q18 % 3Q17 % YoY %	3Q18 % 3Q17 % YoY %	3Q18 % 3Q17 % YoY %	3Q18 % 3Q17 % YoY %
Net sales	691,305	100	685,847	100	0.80
Cost of good sold	(510,251)	(74)	(509,487)	(74)	0.15
Gross Profit	181,054	26	176,360	26	2.66
Operating Exp.	(118,053)	(17)	(132,733)	(20)	-11.06
Selling & Adm.	(52,568)	(8)	(57,251)	(9)	-8.18
R & D Exp.	(65,485)	(9)	(75,482)	(11)	-13.24
Operating Income	63,001	9	43,627	6	44.41
Net Non-Operating Income	4,259	1	79,423	12	-94.64
Income Before Tax	67,260	10	123,050	18	-45.34
Income Tax Exp.	(13,447)	(2)	(9,081)	(1)	48.08
Net Income	53,813	8	113,969	17	-52.78
EPS	0.27		0.51

~~Weltrend Semiconductor, Inc.~~

P4

Copyright  Weltrend 2018, All Rights Reserved

3Q18 Consolidated Income Statement (QoQ)

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(Expressed in NT$K)

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3Q18 % 2Q18 % QoQ %	3Q18 % 2Q18 % QoQ %	3Q18 % 2Q18 % QoQ %	3Q18 % 2Q18 % QoQ %	3Q18 % 2Q18 % QoQ %	3Q18 % 2Q18 % QoQ %
Net sales	691,305	100	667,640	100	3.54
Cost of good sold	(510,251)	(74)	(504,224)	(76)	1.20
Gross Profit	181,054	26	163,416	24	10.79
Operating Exp.	(118,053)	(17)	(136,552)	(20)	-13.55
Selling & Adm.	(52,568)	(8)	(58,235)	(8)	-9.73
R & D Exp.	(65,485)	(9)	(78,317)	(11)	-16.38
Operating Income	63,001	9	26,864	4	134.52
Net Non-Operating Income	4,259	1	155,853	23	-97.27
Income Before Tax	67,260	10	182,717	27	-63.19
Income Tax Exp.	(13,447)	(2)	(37,117)	(5)	-63.77
Net Income	53,813	8	145,600	22	-63.04
EPS	0.27		0.66

~~Weltrend Semiconductor, Inc.~~

P5

Copyright  Weltrend 2018, All Rights Reserved

Balance Sheet Summary

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	2018/9/30 2017/12/31 Cash & Financial Assets - current 2,419,761 2,616,290 Notes & Accounts receivable 861,503 784,549 Inventories 539,242 424,677 Property, Plant and Equipment 209,409 202,369 Other assets 100,590 224,828 Total assets 4,130,505 4,252,713 Notes & Accounts payable 383,147 342,599 Other current liabilities 704,428 539,375 Noncurrent liabilities 80,636 76,521 Stockholders’ equity 2,962,294 3,294,218 (Expressed in NT$K)	2018/9/30 2017/12/31 Cash & Financial Assets - current 2,419,761 2,616,290 Notes & Accounts receivable 861,503 784,549 Inventories 539,242 424,677 Property, Plant and Equipment 209,409 202,369 Other assets 100,590 224,828 Total assets 4,130,505 4,252,713 Notes & Accounts payable 383,147 342,599 Other current liabilities 704,428 539,375 Noncurrent liabilities 80,636 76,521 Stockholders’ equity 2,962,294 3,294,218 (Expressed in NT$K)	2018/9/30 2017/12/31 Cash & Financial Assets - current 2,419,761 2,616,290 Notes & Accounts receivable 861,503 784,549 Inventories 539,242 424,677 Property, Plant and Equipment 209,409 202,369 Other assets 100,590 224,828 Total assets 4,130,505 4,252,713 Notes & Accounts payable 383,147 342,599 Other current liabilities 704,428 539,375 Noncurrent liabilities 80,636 76,521 Stockholders’ equity 2,962,294 3,294,218 (Expressed in NT$K)
	2018/9/30 2017/12/31
	Cash & Financial Assets - current	2,419,761	2,616,290
	Notes & Accounts receivable	861,503	784,549
	Inventories	539,242	424,677
	Property, Plant and Equipment	209,409	202,369
	Other assets	100,590	224,828
	Total assets	4,130,505	4,252,713
	Notes & Accounts payable	383,147	342,599
	Other current liabilities	704,428	539,375
	Noncurrent liabilities	80,636	76,521
	Stockholders’ equity	2,962,294	3,294,218

~~Weltrend Semiconductor, Inc.~~

P6

Copyright  Weltrend 2018, All Rights Reserved

A 29-year IC Design Company

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• Founded Founded in the Hsinchu Science Park in July, 1989 NT$1.78 billion (US$59.3 millions)

• Capital

• Headcount 280 (as the end of 3Q18)  Self-owned brand IC product development and sales

• Main Business  ASIC product development and sales

• Value-added resale (VAR) for international name brand components (ex. ROHM)

• In 1995, awarded with Taiwan’s 4th National Award of Outstanding Small &

• Honors Medium Enterprises, being the first company from Science Park to win the title.

• First listed on Taiwan OTC market in 1997 and then subsequently listed on Taiwan's mainboard, TAIEX, in 2000 (Ticker 2436).

• Awarded with “Taiwan Technology Fast 50” by Deloitte and named multiple times as one of companies with best ROE and ROI by renowned financial magazines in Taiwan.

• ADAS R&D Team Awarded with the 17th Annual Technology Management Award by CSMOT.

• Ranked Top 20% in 2016 Corporate Governance Evaluation and Awarded Most Improved Company.

~~Weltrend Semiconductor, Inc.~~

P7

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Q & A

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www.weltrend.com.tw

~~Weltrend Semiconductor, Inc.~~

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Copyright © Weltrend 2018, All Rights Reserved

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THANK YOU!

~~Weltrend Semiconductor, Inc.~~

P9

Copyright © Weltrend 2018, All Rights Reserved