Elan Microelectronics Corp. · TWSE:2458

Elan Microelectronics — Q4 2016 Earnings Presentation

17 slides from Elan Microelectronics's earnings presentation, Feb 22, 2017

1. Slide 1: ELAN Microelectronics Corp. 4Q16 Investor Conference

   義隆電子 ELAN Microelectronics Corp. ELAN Microelectronics Corp. 4Q16 Investor Conference 2017/02/22

2. Slide 2: Sales Breakdown by Product Line

   義隆電子 ELAN Microelectronics Corp. Sales Breakdown by Product Line (Consolidated) Sales: NT$M 6,605 6,559 1,400 1,552 1,959 1,648 • Touch: Touchscreen Chip, Touchpad, Fingerprint ID • Non-touch: MCU, PC Peripheral , Consumer, Pointing Stick, Affiliated Co. Products

3. Slide 3: 4Q16 Income Statement YoY Comparison (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 4Q16 Income Statement YoY Comparison (Consolidated) NT$M 4Q16 % 4Q15 % YoY(%) Sales 1,648 100 1,719 100 (4) Gross profit 696 42 705 41 (1) Sales expense 92 5 93 5 G&A expense 77 5 75 4 R&D expense 359 22 354 21 Operating profit 168 10 183 11 (8) Non-operating income

4. Slide 4: 4Q16 Income Statement QoQ Comparison (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 4Q16 Income Statement QoQ Comparison (Consolidated) NT$M 4Q16 % 3Q16 % QoQ(%) Sales 1,648 100 1,959 100 (16) Gross profit 696 42 814 42 (14) Sales expense 92 5 91 5 G&A expense 77 5 71 4 R&D expense 359 22 339 17 Operating profit 168 10 313 15 (46) Non-operating inco

5. Slide 5: Balance Sheets

   義隆電子 ELAN Microelectronics Corp. Balance Sheets December. 31, 2016 (Consolidated) NT$M Current assets 7,015 Cash and cash equivalents 1,844 Current financial assets 735 A/R&A/N 1,296 Inventory 1,054 Other current assets 29 Other current financial assets 2,057 Non-current financial assets 1,237 Fixed

6. Slide 6: Cash Flow Statement

   義隆電子 ELAN Microelectronics Corp. Cash Flow Statement December. 31, 2016 (Consolidated) NT$M Income before tax 725 Dep & Amort. 148 Dec.(Inc.) of A/R & N/R (69) Dec.(Inc.) of inventory (39) Dec.(Inc.) of investments-trading 5 Inc.(Dec.) of A/P & N/P (2) Others 201 Operating cashflow 969 Inc.F/A (35)

7. Slide 7: 1Q17 Revenue Forecast

   義隆電子 ELAN Microelectronics Corp. 1Q17 Revenue Forecast Based on Current Assumptions of Future Prospects, ELAN Expects: • Consolidate Revenue to be Approximately between NT$1.5 Billion and NT$1.55 Billion • Gross Margin to be about 43% to 44% • Operating Income Rate to be about 9% to 11%

8. Slide 8: 2017 ELAN Growth Factors

   義隆電子 ELAN Microelectronics Corp. 2017 ELAN Growth Factors 1. ELAN Smart-TouchscreenTM Controller • Leading Microsoft Pen Evolution in 2-in-1 NB • Leading Chromebook with Pen for Educational Segment • On-Cell Touch (OTP) for Clamshell Devices 2. ELAN Smart-TouchpadTM • Leading Chromebook • Tier 1 Cus

9. Slide 9: Microsoft Pen Protocol Devices on the Market

   義隆電子 ELAN Microelectronics Corp. Microsoft Pen Protocol Devices on the Market Asus Transformer T102 Asus Transformer T305 Asus Transformer T303 10.1” 12.6” 3k 12.6” 3k Starting at $399 Starting at $799 Starting at $899 Emdoor EM-H8911C (CTE) IP3 S01-2 (CTE) Eve-Tech (CTE) 11.6” 11.6” 12.3” IGZO 3K S

10. Slide 10: 2017 HP Launches with Microsoft Pen

    義隆電子 ELAN Microelectronics Corp. 2017 HP Launches with Microsoft Pen ELAN Inside with Microsoft Pen Protocol 13.3” or 15.6” Up to 4K Resolution 4.65mm Bezels 2017 Outlook:

11. Slide 11: ELAN Touchpad Inside for Chromebook Market

    義隆電子 ELAN Microelectronics Corp. ELAN Touchpad Inside for Chromebook Market Over 10 Million Shipped for Chromebook in 2016!

12. Slide 12: 2016 Smart-Touchscreen Launched on Chromebooks

    義隆電子 ELAN Microelectronics Corp. 2016 Smart-TouchscreenTM Launched on Chromebooks Chromebook 13 R11 Chromebook Flip Chromebook 11 Chromebook 14

13. Slide 13: 2017 Chromebook for Educational Market (Asus & Acer)

    義隆電子 ELAN Microelectronics Corp. 2017 Chromebook for Educational Market (Asus & Acer) ELAN Touch IC + EMR Pen Acer Chromebook Spin 11

14. Slide 14: ELAN has Full Coverage of 2-in-1/Clamshell Market

    義隆電子 ELAN Microelectronics Corp. ELAN has Full Coverage of 2-in-1/Clamshell Market ClamShell/ Gaming UltraSlim Convertible Detachable / Tablet ” ” Premium $799 Mainstream $399 ” Essential Touch Ready Pen Ready

15. Slide 15: ASUS ZenFone with ELAN Inside

    義隆電子 ELAN Microelectronics Corp. ASUS ZenFone with ELAN Inside

16. Slide 16: ELAN Smart-ID Smart Card Leader and Production in 2017

    義隆電子 ELAN Microelectronics Corp. TM ELAN Smart-ID Smart Card Leader and Production in 2017 Battery-powered Smart Card Fully Compatible with Existing System Pass ISO7816 Smart Card Standard:  Smart Card Thickness 0.8mm, Fingeprint PKG thickness 0.42mm  Pass RA test with Bending, Torsion, ESD, High/

17. Slide 17: Q&A

    義隆電子 ELAN Microelectronics Corp. Q&A

ELAN Microelectronics — Q4 2016 Earnings Presentation on 6ix