Elan Microelectronics Corp. · TWSE:2458

Elan Microelectronics — Q4 2018 Earnings Presentation

15 slides from Elan Microelectronics's earnings presentation, Feb 26, 2019

1. Slide 1: ELAN Microelectronics Corp. 4Q18 Investor Conference

   義隆電子 ELAN Microelectronics Corp. ELAN Microelectronics Corp. 4Q18 Investor Conference 2019/02/26

2. Slide 2: Sales Breakdown by Product Line

   義隆電子 ELAN Microelectronics Corp. Sales Breakdown by Product Line (Consolidated) Sales: NT$M 7,503 8,651 1,589 1,867 2,160 1,887 1,779 2,104 2,484 2,284 • Touch: Touchscreen Controller, Touchpad, Biometrics • Non-Touch: MCU, Pointing Stick, Affiliated Co. Products

3. Slide 3: 4Q18 Income Statement YoY Comparison (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 4Q18 Income Statement YoY Comparison (Consolidated) NT$M 4Q18 % 4Q17 % YoY(%) Sales 2,284 100.0 1,887 100.0 21.0 Gross profit 1,060 46.4 826 43.8 28.3 Sales expense 80 3.5 80 4.2 G&A expense 85 3.7 71 3.8 R&D expense 407 17.8 351 18.6 Operating profit 488 21.4 324 17

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

   義隆電子 ELAN Microelectronics Corp. 4Q18 Income Statement QoQ Comparison (Consolidated) NT$M 4Q18 % 3Q18 % QoQ(%) Sales 2,284 100.0 2,484 100.0 (8.1) Gross profit 1,060 46.4 1,146 46.1 (7.5) Sales expense 80 3.5 97 3.9 G&A expense 85 3.7 86 3.5 R&D expense 407 17.8 396 15.9 Operating profit 488 21.4 56

5. Slide 5: 2018 Income Statement YoY Comparison (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 2018 Income Statement YoY Comparison (Consolidated) NT$M 2018 % 2017 % YoY(%) Sales 8,651 100.0 7,503 100.0 15.3 Gross profit 3,944 45.6 3,348 44.6 17.8 Sales expense 352 4.1 310 4.1 G&A expense 331 3.8 301 4.0 R&D expense 1,531 17.7 1,387 18.5 Operating profit 1,730

6. Slide 6: 1Q18~4Q18 Income Statement (Consolidated)

   義隆電子 ELAN Microelectronics Corp. 1Q18~4Q18 Income Statement (Consolidated) NT$M 1Q18 % 2Q18 % 3Q18 % 4Q18 % 1Q18~4Q18 % Sales 1,779 100.0 2,104 100.0 2,484 100.0 2,284 100.0 8,651 100.0 Gross profit 790 44.4 948 45.1 1,146 46.1 1,060 46.4 3,944 45.6 Sales expense 72 4.0 103 4.9 97 3.9 80 3.5 352 4.1

7. Slide 7: Balance Sheets

   義隆電子 ELAN Microelectronics Corp. Balance Sheets December. 31, 2018 (Consolidated) NT$M Current assets 7,438 Cash and cash equivalents 2,076 Current financial assets 655 A/R&A/N 1,753 Inventory 1,156 Other current assets 39 Other current financial assets 1,759 Non-current financial assets 1,307 Fixed

8. Slide 8: Cash Flow Statement

   義隆電子 ELAN Microelectronics Corp. Cash Flow Statement December. 31, 2018 (Consolidated) NT$M Income before tax 1,870 Dep & Amort. 96 Inc. of A/R & N/R (169) Inc. of inventory (96) Inc. of A/P & N/P 80 Others 42 Operating cashflow 1,848 Inc.F/A (249) Dec. of investments 73 Dec.Time deposit with maturi

9. Slide 9: 1Q19 Guidance

   義隆電子 ELAN Microelectronics Corp. 1Q19 Guidance Based on Current Assumptions of Future Prospects, ELAN Expects: • Consolidate Revenue to be Approximately between NT$ 1.96Billion and NT$ 2.08 Billion • Gross Margin to be about 46% to 47% • Operating Income Rate to be about 18.1% to 20.7%

10. Slide 10: Touchscreen with Stylus Support Shipment

    義隆電子 ELAN Microelectronics Corp. Touchscreen with Stylus Support Shipment Touchscreen Pen % 20000 60% 18000 50% 16000 48% 14000 40% 12000 36% 10000 30% 8000 23% 23% 20% 6000 4000 10% 2000 4% 0 0% 2014 2014 2015 2015 2016 2016 2016 2017 2017 2018 2018

11. Slide 11: Touchpad for Commercial Market Shipment

    義隆電子 ELAN Microelectronics Corp. Touchpad for Commercial Market Shipment Touchpad Commercial % 70000 12% 60000 10% 10% 50000 8% 40000 6% 30000 6% 4% 20000 4% 10000 2% 2% 0 0% 2015 2015 2016 2016 2016 2017 2017 2018 2018

12. Slide 12: Notable Devices with ELAN Touchscreen Solution

    義隆電子 ELAN Microelectronics Corp. Notable Devices with ELAN Touchscreen Solution 2019 CES Announced DELL Inspiron 7000 2-in-1s Acer Chromebook 315 HP Spectre x360 15 with MSFT Pen with Chrome OS Touch on OLED with MSFT Pen Dell XPS 15 Dell XPS 13 HP Chromebook X360 14 G1 Asus Chromebook Flip C434 on

13. Slide 13: Notable Devices with ELAN Touchpad Solution

    義隆電子 ELAN Microelectronics Corp. Notable Devices with ELAN Touchpad Solution 2019 CES Announced Asus Zenbook 14 UX431 Asus Zenbook S13 UX392 HP Chromebook X360 14 G1 with Number Pad with Fingerprint Sensor with Chrome OS Touchpad Asus Chromebook Flip C434 DELL Inspiron 7000 2-in-1s Razer Blade 15 EL

14. Slide 14: Matebook 13 and Matebook 14

    義隆電子 ELAN Microelectronics Corp. Matebook 13 and Matebook 14 2019 MWC Announced 13” 14” HUAWEI MateBook HUAWEI MateBook 13 14 Brilliant Screen-to-body Starting Price: Ratio MateBook 13 - €999 MateBook 13 - 88% MateBook 14 - €1199 MateBook 14 - 90%

15. Slide 15: Q & A

    義隆電子 ELAN Microelectronics Corp. Q&A Q&A AI enables Intelligent Traffic 智慧交通監控方案

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