4Q18 Operating Results M arch 18, 2019 Financial Review 4 Q1 8 I - PowerPoint PPT Presentation

4Q18 Operating Results M arch 18, 2019

Financial Review

4 Q1 8 I ncom e Statem ent & QoQ/ YoY Com parison 3Q18 4Q17 4Q18 YoY % QoQ % Change Change % % % AMT AMT AMT Unit: NT$ m illion 5,007 4,604 4,593 100.0 100.0 (8.1) 100.0 0.2 Net Sales 3,225 3,615 3,275 72.2 (10.8) 71.3 70.1 (1.5) Cost of Goods Sold - Product 1,379 1,392 1,318 27.8 (0.9) 29.9 28.7 4.6 Gross Profit 1 29 (33) 0.6 22 0.5 (0.7) I nventory Related Gain/ ( Loss) 1,421 1,346 28.4 1,340 29.2 (5.3) Gross Profit 2 29.2 0.4 1,407 1,287 1,266 28.1 27.6 (8.5) Operating Expenses 28.0 1.7 58 14 314.0 74 0.3 Operating I ncom e 1.6 1.3 (21.4) 123 146 2.5 Total Non-Op. I nc. ( Loss) (1) 3.2 (0.0) 137 I ncom e Before Tax 204 2.8 73 4.4 1.6 (44) Tax ( Exp.) / I ncom e (45) (45) (0.9) (1.0) (1.0) Net I ncom e 93 159 29 1.9 0.6 3.4 Non- controlling I nterests (17) (20) (23) (0.4) (0.5) (0.3) 142 73 Consolidated I ncom e 6 1.5 0.1 3.1 0.21 0.11 0.01 EPS ( NT$ ) - Per W eighted-Avg. Capital of NT$ 6 ,5 0 7M * The numbers are consolidated and the net income is audited/ reviewed. * * Weighted-Avg. Capital adjusted for treasury shares. 2

4 Q1 8 Non-op I ncom e/ Loss & QoQ Com parison 4 Q1 8 3 Q1 8 Unit : NT$ m illion 1 1 8 ( 1 5 ) I nvestm ent I ncom e 1 6 ( 6 ) Sub./ Aff. 1 0 2 ( 9 ) Capital Gain FX Gain/ ( Loss) 1 3 4 Fin. I ncom e/ ( Exp.) & Other 1 5 1 1 Total Non- op I ncom e/ Loss 1 4 6 ( 1 ) * The numbers are consolidated and the net income is audited/ reviewed. 3

2 0 1 8 I ncom e Statem ent & YoY Com parison 2017 2018 YoY % % Unit: NT$ m illion Change % AMT AMT 100.0 0.3 Net Sales 19,383 100.0 19,316 Cost of Goods Sold - Product 73.4 (3.2) 13,724 70.8 14,178 26.6 Gross Profit 1 29.2 10.1 5,659 5,138 I nventory Related Gain/ ( Loss) 0.3 (0.3) 60 (57) Gross Profit 2 26.9 7.8 28.9 5,199 5,602 Operating Expenses 29.3 (5.4) 5,353 27.6 5,656 Operating I ncom e (2.4) 249 1.3 (458) Total Non-Op. I nc. ( Loss) 1.7 0.2 332 48 I ncom e Before Tax (0.7) 1.5 (125) 297 Tax ( Exp.) / I ncom e (0.2) (0.8) (47) (152) Net I ncom e (0.9) 145 0.7 (172) Minority I nterest (0.1) (39) (0.2) (21) Consolidated I ncom e (1.0) 106 0.5 (193) EPS ( NT$ ) - Per W eighted-Avg. Capital of NT$ 6 ,5 0 7M 0.16 (0.3) The numbers are based on consolidated numbers and the net income is audited/ reviewed. 4

1 2 / 3 1 / 2 0 1 8 Balance Sheet & QoQ Com parison QoQ % 12/31/18 (*) 9/30/18 (*) % % Unit: NT$ m illion Change AMT AMT Cash & S-T Investment 4,433 25.2 33.2 3,328 19.4 Account Receivable 4,279 24.3 (16.1) 5,100 29.7 Inventory 3,112 17.7 3.5 3,008 17.5 Long-term Investments 2,690 15.3 (1.8) 2,738 16.0 Total Assets 17,607 100.0 2.7 17,147 100.0 Accounts Payable 3,522 20.0 (5.1) 3,711 21.6 Current Liabilities 43.5 4.2 7,663 7,351 42.9 Common Stock 37.0 0.0 6,520 6,520 38.0 Stockholders’ Equity 52.2 1.2 9,199 9,089 53.0 * Adjusted based on IFRS15. * The numbers are consolidated and the net income is audited/ reviewed. * * Weighted-Avg. Capital adjusted for treasury shares. 5

Key Financial Ratios 1Q18 (*) Unit: % , days 2Q18 (*) 4Q17 4Q18 (*) 3Q18 (*) 80 88 83 87 84 ** Days A/ R 83 84 73 ** 81 81 Days Inventory 91 96 ** 89 105 93 Days A/ P 72 76 68 63 72 Cash Cycle 1.61 1.61 1.59 1.57 1.56 Current Ratio 0.87 0.84 0.83 Debt/ Equity Ratio 0.87 0.90 *** Net Debt/ Equity Ratio 0.39 0.48 0.47 0.45 0.52 ROE 6.16 0.24 0.6 3.2 -2.4 The numbers are based on consolidated numbers and the net income is audited. * Adjusted based on IFRS15. * * Annualized * * * Net of Cash & S-T investment 6

Quarterly Revenue by Region I n NT$ , up 0 .2 % QoQ, dow n 8 .1 % YoY I n US$ , dow n 0 .2 % QoQ, dow n 1 0 .4 % YoY � N.A. down 2.3% QoQ, down 11.8% YoY � N.A. down 2.8% QoQ, down 13.6% YoY � Europe down 3% QoQ, down 19.9% YoY � Europe down 3.2% QoQ, down 22.5% YoY � Emerging Mkts & APac up 1.8% QoQ, down 2.4% YoY � Emerging Mkts & APac up 1.3% QoQ, down 4.7% YoY NT$ mln 6,000 10% 9% 12% 12% 11% 4,000 35% 26% 31% 23% 24% 2,000 62% 66% 60% 65% 55% 0 4Q17 1Q18 2Q18 3Q18 4Q18 Emerging M arkets & AsiaPac Europe North America 7

Quarterly Revenue by Product I n NT$ term s: I n US$ term s: � Switch up 4% QoQ, down 16% YoY � Switch up 3.7% QoQ, down 18.1% YoY � Wireless down 20.7% QoQ, down 3.1% YoY � Wireless down 21% QoQ, down 5.5% YoY � B.B. up 10% QoQ, down 55.8% YoY � B.B. up 10.2% QoQ, down 56.7% YoY � D.H. up 33.5% QoQ, up 6.8% YoY � D.H. up 33% QoQ, up 4% YoY 6,000 14% 13% 16% 6% 18% 7% 21% 4,000 5% 10% 14% 7% 14% 9% 6% 6% 26% 38% 30% 35% 28% 2,000 40% 35% 32% 36% 35% 0 4Q17 1Q18 2Q18 3Q18 4Q18 Switch Wireless Broadband Digital Home Others 8

Safe Harbor Statem ent All num bers are consolidated. Except for statem ents in respect of historical matters, the statements contained in this release are "forward-looking statem ents" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of D-Link Corporation to be materially different from any future perform ance, financial condition or results of operations implied by such forward-looking statements.