Elan Microelectronics Corp. · TWSE:2458

Elan Microelectronics — Q1 2018 Earnings Presentation

17 slides from Elan Microelectronics's earnings presentation, May 2, 2018

1. Slide 1: ELAN Microelectronics Corp. 1Q18 Investor Conference

   義隆電子 ELAN Microelectronics Corp. ELAN Microelectronics Corp. 1Q18 Investor Conference 2018/5/2

2. Slide 2: Sales Breakdown by Product Line

   義隆電子 ELAN Microelectronics Corp. Sales Breakdown by Product Line (Consolidated) Sales: NT$M 6,559 7,503 1,589 1,867 2,160 1,887 1,779 • Touch: Touchscreen Controller, Touchpad, Biometric • Non-Touch: MCU, Pointing Stick, Affiliated Co. Products

3. Slide 3: 1Q18 Income Statement YoY Comparison (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 1Q18 Income Statement YoY Comparison (Consolidated) NT$M 1Q18 % 1Q17 % YoY(%) Sales 1,779 100.0 1,589 100.0 12.0 Gross profit 790 44.4 697 43.9 13.3 Sales expense 72 4.0 66 4.2 G&A expense 78 4.4 73 4.6 R&D expense 352 19.8 331 20.8 Operating profit 288 16.2 227 14.3

4. Slide 4: 1Q18 Income Statement QoQ Comparison (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 1Q18 Income Statement QoQ Comparison (Consolidated) NT$M 1Q18 % 4Q17 % QoQ(%) Sales 1,779 100.0 1,887 100.0 (5.7) Gross profit 790 44.4 824 43.7 (4.1) Sales expense 72 4.0 80 4.2 G&A expense 78 4.4 71 3.8 R&D expense 352 19.8 351 18.6 Operating profit 288 16.2 322 17

5. Slide 5: Balance Sheets

   義隆電子 ELAN Microelectronics Corp. Balance Sheets Mar. 31, 2018 (Consolidated) NT$M Current assets 8,029 Cash and cash equivalents 1,932 Current financial assets 750 A/R&A/N 1,320 Inventory 1,100 Other current assets 68 Other current financial assets 2,859 Non-current financial assets 1,305 Fixed asse

6. Slide 6: Cash Flow Statement

   義隆電子 ELAN Microelectronics Corp. Cash Flow Statement Mar. 31, 2018(Consolidated) NT$M Income before tax 328 Dep & Amort. 24 Dec.(Inc.) of A/R & N/R 66 Dec.(Inc.) of inventory 43 Inc.(Dec.) of A/P & N/P (161) Others (12) Operating cashflow 288 Inc.F/A (25) Dec.(Inc.)Time deposit with maturity over th

7. Slide 7: 2Q18 Guidance

   義隆電子 ELAN Microelectronics Corp. 2Q18 Guidance Based on Current Assumptions of Future Prospects, ELAN Expects: • Consolidate Revenue to be Approximately between NT$ 2 Billion and NT$ 2.1 Billion • Gross Margin to be about 43.6% to 45.2% • Operating Income Rate to be about 17% to 20%

8. Slide 8: ELAN Always Leading Microsoft Certification

   義隆電子 ELAN Microelectronics Corp. ELAN Always Leading Microsoft Certification WW #1 Pass Windows 8 WW #1 Pass Windows 10 Demo Demo WW #1 Pass Win 10 MPP1.5/1.51 WW #1 Pass Win 10 MPP2.0

9. Slide 9: Pen on Touchscreen Era is Coming !

   義隆電子 ELAN Microelectronics Corp. Pen on Touchscreen Era is Coming ! The Always Connected PC Windows on Qualcomm 835 with 20 hour Battery Life HP Envy X2 ASUS NovaGo 12.3” WUXGA+ with Corning GG4 Lenovo Miix 630 13.3” FHD LTPS 12.3” WUXGA+ ELAN Smart-TouchscreenTM Inside!

10. Slide 10: Pen on Touchscreen Era is Coming ! Windows Ink Badging

    義隆電子 ELAN Microelectronics Corp. Pen on Touchscreen Era is Coming ! Windows Ink Badging Windows Ink 2017 ELAN Shipping Record Pen on Touchscreen Penetration More Than 50%

11. Slide 11: The New Apple 9.7-inch iPad

    義隆電子 ELAN Microelectronics Corp. The New Apple 9.7-inch iPad Logitech Crayon $49 Apple Pencil $99

12. Slide 12: iPad with Pencil Support Trend

    義隆電子 ELAN Microelectronics Corp. iPad with Pencil Support Trend From $799 From $649 From $329 ($299 for EDU)

13. Slide 13: More Inking Integrations with Chrome OS

    義隆電子 ELAN Microelectronics Corp. More Inking Integrations with Chrome OS Source: Google

14. Slide 14: The World 1st Chromebook Tablet is Here!

    義隆電子 ELAN Microelectronics Corp. The World 1st Chromebook Tablet is Here! Acer Chromebook Tab 10 has a 9.7” 2048 x 1536 Display for 329 USD With ELAN Smart-TouchscreenTM Inside! Reference: https://www.theverge.com/circuitbreaker/2018/3/26/17157444/acer-chromebook-tab-10-first-chrome-os-tablet-announ

15. Slide 15: Tablet PC Brand Shipments and Sales Targets

    義隆電子 ELAN Microelectronics Corp. Tablet PC Brand Shipments and Sales Targets Unit: Millions Brand 2016 2017 2018 2017 Y/Y 2018 Y/Y Shipments (Actual) (Forecast) (Forecast) (Forecast) (Forecast) Apple 42.4 46.9 47.0 10.7% 0.2% Samsung 28.8 25.4 25.0 -11.8% -1.6% Huawei 9.7 13.0 16.5 33.4% 26.9% Amazo

16. Slide 16: AMOLED w/ ELAN Smart-Touchscreen Inside

    義隆電子 ELAN Microelectronics Corp. AMOLED w/ ELAN Smart-TouchscreenTM Inside A company B company C company 5.89” Rigid AMOLED 6.01” Rigid AMOLED 6.01” Rigid AMOLED

17. Slide 17: ELAN Microelectronics Corp. Q & A

    義隆電子 ELAN Microelectronics Corp. Q&A

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