Elan Microelectronics Corp. · TWSE:2458

Elan Microelectronics — Q3 2016 Earnings Presentation

17 slides from Elan Microelectronics's earnings presentation, Nov 16, 2016

1. Slide 1: ELAN Microelectronics Corp. 3Q16 Investor Conference

   義隆電子 ELAN Microelectronics Corp. ELAN Microelectronics Corp. 3Q16 Investor Conference 2016/11/16 1

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 1,684 1,519 1,683 1,719 1,400 1,552 1,959 • Touch: Touchscreen Chip, Touchpad, Fingerprint ID • Non-touch: MCU, PC Peripheral , Consumer, Pointing Stick, Affiliated Co. Products 2

3. Slide 3: 3Q16 Income Statement YoY Comparison

   義隆電子 ELAN Microelectronics Corp. 3Q16 Income Statement YoY Comparison (Consolidated) NT$M 3Q16 % 3Q15 % YoY(%) Sales 1,959 100 1,683 100 16 Gross profit 814 42 684 41 19 Sales expense 91 5 79 5 G&A expense 71 4 77 5 R&D expense 339 17 331 20 Operating profit 313 16 197 11 59 Non-operating income & e

4. Slide 4: 3Q16 Income Statement QoQ Comparison

   義隆電子 ELAN Microelectronics Corp. 3Q16 Income Statement QoQ Comparison (Consolidated) NT$M 3Q16 % 2Q16 % QoQ(%) Sales 1,959 100 1,552 100 26 Gross profit 814 42 632 41 29 Sales expense 91 5 73 5 G&A expense 71 4 75 5 R&D expense 339 17 332 21 Operating profit 313 16 152 10 106 Non-operating income &

5. Slide 5: Balance Sheets

   義隆電子 ELAN Microelectronics Corp. Balance Sheets September. 30, 2016 (Consolidated) NT$M Current assets 7,732 Cash and cash equivalents 1,713 Current financial assets 1,135 A/R&A/N 1,609 Inventory 922 Other current assets 34 Other current financial assets 2,319 Non-current financial assets 1,270 Fixe

6. Slide 6: Cash Flow Statement

   義隆電子 ELAN Microelectronics Corp. Cash Flow Statement September. 30, 2016 (Consolidated) NT$M Income before tax 544 Dep & Amort. 114 Dec.(Inc.) of A/R & N/R (315) Dec.(Inc.) of inventory 136 Dec.(Inc.) of investments-trading (403) Inc.(Dec.) of A/P & N/P 9 Others 123 Operating cashflow 208 Inc.F/A (1

7. Slide 7: 4Q16 Revenue Forecast

   義隆電子 ELAN Microelectronics Corp. 4Q16 Revenue Forecast Based on current assumptions of future prospects, ELAN expects: • Consolidate revenue to be approximately between NT$1.6 billion and NT$1.65 billion • Gross margin to be about 41% to 42% • Operating income rate to be about 10% to 12% 7

8. Slide 8: ELAN's Smart-Touchscreen Essential Patents

   義隆電子 ELAN Microelectronics Corp. ELAN’s Smart-TouchscreenTM Essential Patents A Company B Company C Company 8

9. Slide 9: ELAN's Smart-Touchscreen Essential Patents

   義隆電子 ELAN Microelectronics Corp. ELAN’s Smart-TouchscreenTM Essential Patents ELAN Takes IP Protection Extremely Serious! 9

10. Slide 10: ELAN Smart-ID Solutions Update

    義隆電子 ELAN Microelectronics Corp. ELAN Smart-IDTM Solutions Update Coating Solutions Cover Solutions Matt Glossy Ceramic Schott Glass Complete MP MP Smartphone Engineering Samples under Sample Verification by Tier 1 Brands 10

11. Slide 11: ELAN Smart-ID MP in Smartphone & NB

    義隆電子 ELAN Microelectronics Corp. TM ELAN Smart-ID MP in Smartphone & NB ASUS ZenBook 3 ASUS Transformer 3 ASUS Transformer Mini Micromax Sharp Z2 Canvas Unite 4 Wiko 11

12. Slide 12: 8" Wafer Foundry Shortage Issue

    義隆電子 ELAN Microelectronics Corp. 8” Wafer Foundry Shortage Issue 12

13. Slide 13: 8" 0.18um Wafer Foundry Shortage Issue

    義隆電子 ELAN Microelectronics Corp. 8” 0.18um Wafer Foundry Shortage Issue ELAN 8” 0.35um Wafer Foundry in UMC & Magnachip Company Foundry Inch Node Apple TSMC 12" 65nm FPC SMIC 8" 0.18um FPC SMIC 12" (?) FPC TSMC 8" 0.18um Synaptic TSMC 8" 0.18um Goodix X Fab 8" 0.35um Goodix TSMC 8" 0.18um/0.25um Egi

14. Slide 14: Samsung Licenses Precise Biometrics Algorithm

    義隆電子 ELAN Microelectronics Corp. Samsung Licenses Precise Biometrics Algorithm 14

15. Slide 15: System Method for Checking Fingerprints

    義隆電子 ELAN Microelectronics Corp. System Method for Checking Fingerprints Filing Date: 2000/02/11; Issued Date: 2004/12/29 Assignee: Precise Biometrics AB Claim 7 of EP 1150608 Patent • A method of checking fingerprints, comprising the steps of – recording merely a partial test fingerprint which repr

16. Slide 16: ELAN Smart-ID Provides Most Cost-Effective Solutions for China Market

    義隆電子 ELAN Microelectronics Corp. ELAN Smart-IDTM Provides Most Cost-Effective Solutions for China Market • The World Smallest Sensor Sizes • Acceptable Performance (i) FRR=3% ; (ii) FRR=5% @ FAR=1/50000 • Low Cost Algorithm By Local Vendor • Keep Best Cost Structure and Supply Chain Advantage with 0

17. Slide 17: Q&A

    義隆電子 ELAN Microelectronics Corp. Q&A

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