Slide 1: 3Q20 Investor Conference
3Q20 Investor Conference 2020/10/28 ELAN Microelectronics Corporation
Slide 2: Sales Breakdown by Product Line (Consolidated)
Sales Breakdown by Product Line (Consolidated) Sales: NT$M 8,651 9,488 1,881 2,181 2,713 2,713 2,206 3,539 4,708 • Touch: Touchscreen Controller, Touchpad, Biometrics • Non-Touch: MCU, Pointing Stick, Affiliated Co. Products
Slide 3: 3Q20 Income Statement: YoY Comparison
3Q20 Income Statement YoY Comparison (Consolidated) NT$M 3Q20 % 3Q19 % YoY(%) Sales 4,708 100.0 2,713 100.0 73.5 Gross profit 2,143 45.5 1,286 47.4 66.6 Sales expense 138 2.9 116 4.3 G&A expense 128 2.7 91 3.4 R&D expense 507 10.8 428 15.7 OPEX 773 16.4 635 23.4 21.7 Operating profit 1,370 29.1 651
Slide 4: 3Q20 Income Statement: QoQ Comparison
3Q20 Income Statement QoQ Comparison (Consolidated) NT$M 3Q20 % 2Q20 % QoQ(%) Sales 4,708 100.0 3,539 100.0 33.0 Gross profit 2,143 45.5 1,684 47.6 27.3 Sales expense 138 2.9 132 3.7 G&A expense 128 2.7 101 2.9 R&D expense 507 10.8 479 13.5 OPEX 773 16.4 712 20.1 8.6 Operating profit 1,370 29.1 972
Slide 5: 1Q20~3Q20 Income Statement
1Q20~3Q20 Income Statement YoY Comparison (Consolidated) NT$M 1Q20 % 2Q20 % 3Q20 % 1Q20~3Q20 % Sales 2,206 100.0 3,539 100.0 4,708 100.0 10,453 100.0 Gross profit 1,043 47.3 1,684 47.6 2,143 45.5 4,870 46.6 Sales expense 102 4.6 132 3.7 138 2.9 372 3.6 G&A expense 70 3.2 101 2.9 128 2.7 299 3.0 R&D
Slide 6: Balance Sheets
Balance Sheets September 30, 2020 (Consolidated) NT$M Current assets 10,046 Cash and cash equivalents 1,817 Current financial assets 1,015 A/R&A/N 3,907 Inventory 1,784 Other current assets 35 Other current financial assets 1,488 Non-current financial assets 1,612 Fixed assets 855 Other non-current
Slide 7: Cash Flow Statement
Cash Flow Statement September 30, 2020 (Consolidated) NT$M Income before tax 2,496 Dep & Amort. 137 Inc. of A/R & N/R (1,049) Inc. of inventory (453) Net loss (gain) on financial assets at fair value through 372 Inc. of A/P & N/P 772 Others (340) Operating cashflow 1,935 Inc. F/A (108) Dec. F/A 1 Di
Slide 8: Fair Value of ELAN's holdings in FineMat
Fair Value of ELAN’s holdings in FineMat/旭暉評價調整說明 義隆電子是旭暉應材(6698)持股超過10%的大股東，旭暉掛牌上市時，本公司相關持股須強制集保， 所以會計處理依相關規定在評價時將流動性受限制部分折價認列。流動性折價因子係委託獨立單位 提供鑑價報告。 As ELAN has more than 10% of shareholdings of FineMat, ELAN’s stake in FineMat has been placed in central custody and is restricted for disposal afte
Slide 9: 4Q20 Guidance
4Q20 Guidance Based on Current Assumptions of Future Prospects, ELAN Expects: • Consolidate Revenue to be Approximately between NT$ 4.55Billion and NT$ 4.75Billion • Gross Margin to be about 46% to 47% • Operating Income Rate to be about 29% to 31% • ELAN’s forward-looking statements are subject to
Slide 10: ELAN's Sales & Profitability Outperforms Market Growth
ELAN’s Sales & Profitability Outperforms Market Growth Strong Growth in Market Share & ASP 2016 2017 2018 2019 2020F ELAN Rev YoY -1% 14% 15% 10% >55% Global NB Shipment YoY -2% 2% -1% -2% >15%
Slide 11: ELAN's Increasing ROE Trend
I ELAN's Increasing ROE Trend NT$ M teaSales ——ROE 50.0% 16,000 + 40.0% 34.9% 12,000 + 30.0% 22.3Y 8,000 + 20.0% 4,000 _ 10.0% - T 0.0% 2016 2017 2018 2019 2020 F
Slide 12: Rapid Growth in Active Pen Market
Rapid Growth in Active Pen Market
Slide 13: NB Touchpad and Fingerprint Update
NB Touchpad and Fingerprint Update
Slide 14: Surface Laptop Go
Surface Laptop Go ELAN Launches in Surface’s 2nd Series ELAN’s Fingerprint ELAN’s Total Solution ELAN’s Keyboard Controller Precision Trackpad with 2.5D Anti-Spoof on Power Button 12.4” In-Cell 10th Gen Intel® Starting at $549.99 Touchscreen Core™ i5 Processor
Slide 15: Surface Laptop Go
Surface Laptop Go ELAN’s Fingerprint Total Solution with 2.5D Anti- Spoof on Power Button ELAN’s Precision Trackpad Up to 13 hours of typical device usage
Slide 16: ELAN's Support for the Latest Windows Hello Spec 20H1
ELAN’s Support for the Latest Windows Hello Spec 20H1 Tightening of FRR Requirement while requesting for Enhanced Anti-Spoofing Feature Spec SAR FAR FRR Attacks covered Justification Requirement (Mandatory) A printed image is extremely Presentation attacks that Presentation attacks based easy to obt
Slide 17: Q&A Thank You
Q&A T h a n k Yo u ELAN Microelectronics Corporation