Delta Electronics, Inc. · TWSE:2308

Delta Electronics — Q3 2017 Earnings Presentation

44 slides from Delta Electronics's earnings presentation, Oct 31, 2017

1. Slide 1: Delta Electronics, Inc. 3Q 2017 Results Analyst Meeting

   台達電子2017年第三季財報法人說明會 Delta Electronics, Inc. 3Q 2017 Results Analyst Meeting 31 Oct 2017

2. Slide 2: Financial numbers based on IFRS

   • 本簡報財務數字係根據國際財務報導準則編製 The financial numbers hereby are based on International Financial Reporting Standards (IFRS) • 合併數字係經由會計師核閱簽證 Cumulative consolidated numbers were reviewed by CPA 2 Delta Confidential

3. Slide 3: 2017 Third Quarter Results

   2017年第三季結算數字 2017 Third Quarter Results 3 Delta Confidential

4. Slide 4: Sales Revenue

   合併營收 Sales Revenue QoQ 單位：新台幣十億元 +12% Unit: NT$ billion YoY +5% 57.0 57.1 59.8 53.5 48.9 3Q16 4Q16 1Q17 2Q17 3Q17 4 Delta Confidential

5. Slide 5: Sales Revenue by Business (QoQ)

   業務分類 (季對季) Sales Revenue by Business (QoQ) 2Q17 3Q17 電源及零組件 電源及零組件 Power Power Electronics Electronics 52% 55% 自動化 自動化 Automation 其他 Automation 16% Others 其他 基礎建設 14% 0% 基礎建設 Others Infrastructure Infrastructure 1% 31% 31% 5 Delta Confidential

6. Slide 6: Sales Revenue by Business (QoQ), NT$ million

   業務分類 (季對季) Sales Revenue by Business (QoQ) 單位：新台幣百萬元 Unit: NT$ million 2Q17 3Q17 Change 電源及零組件 27,832 32,641 17% Power Electronics 自動化 8,284 8,342 1% Automation 基礎建設 16,757 18,315 9% Infrastructure 6 Delta Confidential

7. Slide 7: Sales Revenue by Business (YoY)

   業務分類 (年對年) Sales Revenue by Business (YoY) 3Q16 3Q17 電源及零組件 電源及零組件 Power Power Electronics Electronics 55% 58% 自動化 自動化 其他 Automation Automation Others 基礎建設 14% 其他 0% 基礎建設 12% Others Infrastructure Infrastructure 1% 29% 31% 7 Delta Confidential

8. Slide 8: Sales Revenue by Business (YoY), NT$ million

   業務分類 (年對年) Sales Revenue by Business (YoY) 單位：新台幣百萬元 Unit: NT$ million 3Q16 3Q17 Change 電源及零組件 32,826 32,641 -1% Power Electronics 自動化 6,994 8,342 19% Automation 基礎建設 16,819 18,315 9% Infrastructure 8 Delta Confidential

9. Slide 9: Gross Profit

   營業毛利 Gross Profit 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +10% YoY -1% 16.4 15.5 16.2 13.3 14.7 28.7% 27.3% 27.2% 27.5% 27.1% 3Q16 4Q16 1Q17 2Q17 3Q17 9 Delta Confidential

10. Slide 10: R&D Expenses

    研發費用 R&D Expenses 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +13% YoY +18% 4.3 4.0 4.5 3.8 3.7 7.5% 7.6% 7.5% 7.5% 6.7% 3Q16 4Q16 1Q17 2Q17 3Q17 10 Delta Confidential

11. Slide 11: SG&A Expenses

    銷管費用 SG&A Expenses 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +2% YoY +1% 6.2 5.9 5.6 6.1 6.2 10.8% 11.5% 11.4% 10.4% 10.3% 3Q16 4Q16 1Q17 2Q17 3Q17 11 Delta Confidential

12. Slide 12: Total Operating Expenses

    總營業費用 Total Operating Expenses 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +6% YoY +8% 10.0 10.2 9.3 10.1 10.7 19.1% 18.9% 17.5% 17.8% 18.0% 3Q16 4Q16 1Q17 2Q17 3Q17 12 Delta Confidential

13. Slide 13: Operating Profit

    營業淨利 Operating Profit 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +20% YoY -14% 6.4 5.4 5.4 4.0 4.6 11.2% 9.4% 8.5% 9.0% 8.1% 3Q16 4Q16 1Q17 2Q17 3Q17 13 Delta Confidential

14. Slide 14: Operating Profit by Sector

    主要部門營業淨利 Operating Profit by Sector 單位：新台幣百萬元 Unit: NT$ million 3Q16 2Q17 3Q17 電源及零組件 4,912 3,107 4,049 Power Electronics 自動化 1,308 1,602 1,221 Automation 基礎建設 1,317 1,034 1,570 Infrastructure 14 Delta Confidential

15. Slide 15: Non-Operating Profit

    業外損益 Non-Operating Profit 單位：新台幣十億元及營收百分比 QoQ Unit: NT$ billion & % of sales +71% YoY +94% 1.2 1.5 1.0 0.9 0.8 2.1% 2.5% 2.0% 1.4% 1.6% 3Q16 4Q16 1Q17 2Q17 3Q17 15 Delta Confidential

16. Slide 16: Non-Operating Profit Breakdown

    業外損益細項 Non-Operating Profit Breakdown 單位：新台幣百萬元 Unit: NT$ million NTD$M元 3Q16 2Q17 3Q17 處分投資 Investment disposal 61 113 47 採權益法之投資損益 Investment income under equity method 232 25 249 利息收益淨額 Interest income 38 89 66 滙兌損益 FX income (63) 10 46 其他 Others 508 644 1,097 合計 Total 776 881 1,505 16 Delta Conf

17. Slide 17: Profit before Income Tax

    稅前淨利 Profit before Income Tax 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +28% YoY -3% 7.2 6.6 7.0 5.0 5.4 12.5% 11.5% 11.6% 10.2% 10.2% 3Q16 4Q16 1Q17 2Q17 3Q17 17 Delta Confidential

18. Slide 18: EBITDA

    息稅折舊及攤銷前利潤 EBITDA 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +18% YoY +0% 9.6 9.0 9.6 7.3 8.1 16.8% 15.8% 15.0% 16.0% 15.2% 3Q16 4Q16 1Q17 2Q17 3Q17 18 Delta Confidential

19. Slide 19: Income Tax & Non-Controlling Interest

    所得稅與非控制權益 Income Tax & Non-Controlling Interest 單位：新台幣百萬元 Unit: NT$ million 3Q16 2Q17 3Q17 稅前淨利 Profit before income tax 7,154 5,441 6,964 所得稅 Income tax (1,377) (1,138) (1,389) 非控制權益 Non-controlling interest (111) (70) (109) 稅後淨利 Net profit after tax 5,666 4,233 5,466 19 Delta Confidential

20. Slide 20: Net Profit after Tax

    稅後淨利 Net Profit after Tax 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales QoQ +29% YoY -4% 5.7 5.5 5.0 3.9 4.2 9.9% 8.7% 8.0% 9.1% 7.9% 3Q16 4Q16 1Q17 2Q17 3Q17 20 Delta Confidential

21. Slide 21: EPS (unit: NT$)

    每股淨利(新台幣元) EPS (unit: NT$) 2.18 2.10 1.91 1.63 1.51 3Q16 4Q16 1Q17 2Q17 3Q17 *每股盈餘之設算基於在外流通股數25.98億股。 *EPS based on shares outstanding of 2,598 million. 21 Delta Confidential

22. Slide 22: 2017 Year-to-3Q Accumulated Results

    2017年前三季結算數字 2017 Year-to-3Q Accumulated Results 22 Delta Confidential

23. Slide 23: Sales Revenue YT3Q

    合併營收 Sales Revenue 單位：新台幣十億元 Unit: NT$ billion 157.3 +3% 162.2 YT3Q16 YT3Q17 23 Delta Confidential

24. Slide 24: Sales Revenue by Business

    業務分類 Sales Revenue by Business YT3Q16 YT3Q17 電源及零組件 電源及零組件 Power Power Electronics Electronics 56% 53% 自動化 自動化 Automation Automation 15% 其他 12% 其他 基礎建設 基礎建設 Others Others Infrastructure Infrastructure 1% 1% 31% 31% 24 Delta Confidential

25. Slide 25: Revenues by Business, NT$ million

    業務分類 Revenues by Business 單位：新台幣百萬元 Unit: NT$ million YT3Q16 YT3Q17 Change 電源及零組件 87,594 86,547 -1% Power Electronics 自動化 19,789 23,533 19% Automation 基礎建設 48,696 50,368 3% Infrastructure 25 Delta Confidential

26. Slide 26: Gross Profit

    營業毛利 Gross Profit 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales +1% 44.0 44.2 27.9% 27.2% YT3Q16 YT3Q17 26 Delta Confidential

27. Slide 27: R&D Expenses

    研發費用 R&D Expenses 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales +9% 11.2 12.2 7.1% 7.5% YT3Q16 YT3Q17 27 Delta Confidential

28. Slide 28: SG&A Expenses

    銷管費用 SG&A Expenses 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales 17.3 +4% 18.0 11.0% 11.1% YT3Q16 YT3Q17 28 Delta Confidential

29. Slide 29: Total Operating Expenses

    總營業費用 Total Operating Expenses 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales 28.5 +6% 30.2 18.1% 18.6% YT3Q16 YT3Q17 29 Delta Confidential

30. Slide 30: Operating Profit

    營業淨利 Operating Profit 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales 15.5 -9% 14.0 9.8% 8.6% YT3Q16 YT3Q17 30 Delta Confidential

31. Slide 31: Operating Profits by Sector

    主要部門營業淨利 Operating Profits by Sector 單位：新台幣百萬元 Unit: NT$ million YT3Q16 YT3Q17 電源及零組件 11,934 10,111 Power Electronics 自動化 3,516 3,990 Automation 基礎建設 3,454 3,576 Infrastructure 31 Delta Confidential

32. Slide 32: Non-Operating Profit

    業外損益 Non-Operating Profit 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales +22% 3.4 2.8 2.1% 1.8% YT3Q16 YT3Q17 32 Delta Confidential

33. Slide 33: Non-Operating Income Breakdown

    業外損益細項 Non-Operating Income Breakdown 單位：新台幣百萬元 Unit: NT$ million NTD$M元 YT3Q16 YT3Q17 處分投資 (Investment disposal) 175 243 採權益法之投資損益 (Investment income under equity method) 669 480 利息收益淨額 (Interest income) 171 191 滙兌損益 (FX income) 46 199 其他 (Others) 1,719 2,272 合計 (Total) 2,780 3,385 33 Delta Confide

34. Slide 34: Profit before Income Tax

    稅前淨利 Profit before Income Tax 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales 18.2 -5% 17.4 11.6% 10.7% YT3Q16 YT3Q17 34 Delta Confidential

35. Slide 35: EBITDA

    息稅折舊及攤銷前利潤 EBITDA 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales -1% 25.3 25.0 16.1% 15.4% YT3Q16 YT3Q17 35 Delta Confidential

36. Slide 36: Taxes & Non-controlling Interests

    所得稅與非控制權益 Taxes & Non-controlling Interests 單位：新台幣百萬元 Unit: NT$ million YT3Q16 YT3Q17 稅前淨利(Net income before tax) 18,231 17,371 所得稅(Tax) (4,041) (3,520) 非控制權益(Non-controlling interest) (344) (233) 稅後淨利(Net income after tax) 13,846 13,618 36 Delta Confidential

37. Slide 37: Net Profit after Tax

    稅後淨利 Net Profit after Tax 單位：新台幣十億元及營收百分比 Unit: NT$ billion & % of sales 13.8 -2% 13.6 8.8% 8.4% YT3Q16 YT3Q17 37 Delta Confidential

38. Slide 38: EPS (unit: NT$)

    每股淨利(新台幣元) EPS (unit: NT$) 5.33 5.24 YT3Q16 YT3Q17 *每股盈餘之設算基於在外流通股數25.98億股。 *EPS based on shares outstanding of 2,598 million. 38 Delta Confidential

39. Slide 39: Business Categories

    業務分類 Business Categories 39 Delta Confidential

40. Slide 40: Business Categories

    Business Categories • Power Supplies • Industrial Automation • ICT Infrastructure • Components • Building Automation • Energy Infrastructure • Fans & Thermal Mgmt. • Automotive Electronics 40 Delta Confidential

41. Slide 41: Power Electronics

    Power Electronics Power Supplies Components Components Power chokes Power supplies for • PCs, NBs, servers, switches, Power modules game consoles, medical equipment, industrial equipment Optical transceivers and home appliances Resistors Display projector RF modules Fans & Thermal Automotive Electro

42. Slide 42: Automation

    Automation Industrial Automation Components Building Automation Manufacturing Data Management • Manufacturing Execution System Building management system Network • IoT industrial cloud router Energy system Control • PLC • HMI • CNC controller HVAC system • PC-based motion controller Drive & Motion •

43. Slide 43: Infrastructure

    Infrastructure ICT Infrastructure Components Energy Infrastructure EV charging • DC chargers (150kW/50kW/25kW) Telecom power • AC residential charger • Site management system Renewable energy Networking • Solar inverters for residential/ • Switches commercial/utilities • Routers • Wind turbine conve

44. Slide 44: Smarter. Greener. Together.

    Smarter. Greener. Together. To learn more about Delta, please visit www.deltaww.com

Delta Electronics — Q3 2017 Earnings Presentation on 6ix