2014 Second Quarter Results Aug. 7, 2014 Consolidated Income Statements I Q2/14 Q1/14 Q2/13 1,264,801 1,198,452 1,168,218 5.5% 8.3% COGS 699,533 662,633 690,001 5.6% 1.4% Gross Profit 565,268 535,819 478,217 5.5% 18.2% Gross Margin 44.7% 44.7% 40.9% Operating Expense 436,977 447,767 424,441 -2.4% 3.0% Operating Income 128,291 88,052 53,776 45.7% 138.6% 10.1% 7.3% 4.6% Non-Operating Income & Expense (14,864) 12,136 19,682 Income before Tax 113,427 100,188 73,458 13.2% 54.4% 9,507 8,353 10,115 103,920 91,835 63,343 13.2% 64.1% 8.2% 7.7% 5.4% 109,243 95,645 63,107 (5,323) (3,810) 236 103,920 91,835 63,343 0.86 0.75 0.50 127,586 127,367 127,144 Unit: In thousand NTD except EPS Net Sales Operating Margin Income Tax Expense (Benefit) Net Income Net Margin Attributable to: Shareholders of the parent Minority interests Consolidated net income Net income attributable to shareholders of the parent Weighted Avg. Outstanding shares 2 QoQ YoY Consolidated Income Statements II H1/14 Unit: In thousand NTD except EPS H1/13 YoY Net Sales 2,463,253 2,078,694 18.5% COGS 1,362,166 1,230,606 10.7% Gross Profit 1,101,087 848,088 29.8% Gross Margin 44.7% 40.8% Operating Expense 884,744 803,840 10.1% Operating Income 216,343 44,248 388.9% 8.8% 2.1% (2,728) 45,571 Operating Margin Non-Operating Income & Expense Income before Tax Income Tax Expense (Benefit) Net Income Net Margin 213,615 89,819 17,860 13,029 195,755 76,790 7.9% 3.7% 204,888 76,698 (9,133) 92 195,755 76,790 1.61 0.60 127,477 127,144 Attributable to: Shareholders of the parent Minority interests Consolidated net income Net income attributable to shareholders of the parent Weighted Avg. Outstanding shares 3 137.8% 154.9% Consolidated Balance Sheets Condensed Balance Sheets Amount: NT$ thousand Q2/14 Q1/14 Q2/13 Cash and Cash Equivalents 4,152,238 4,212,238 4,178,324 Accounts Receivable 845,118 722,175 848,626 Inventory 462,819 485,638 306,798 Total Current Assets 5,531,005 5,532,593 5,388,064 Noncurrent Assets 1,257,701 1,311,969 1,248,906 Total Assets 6,788,706 6,844,562 6,636,970 Short-Term Loans 50,000 127,000 Accounts Payable 333,220 407,558 384,841 Other payable 749,779 478,127 752,141 Total Liabilities 1,171,462 1,084,204 1,222,301 Total shareholders' equity 5,617,244 5,760,358 5,414,669 4 - Revenue Breakdown by Application 100% 80% 60% 40% 20% 0% Others Game Mouse 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 8 1 91 15 11 74 9 7 84 8 2 90 14 1 85 5 END www.PixArt.com [email protected]