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Report Date : 2007.04.30. 2 Safe Harbor Notice The forward-looking statements in this press...

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Report Date 2007.04.30
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Report Date: 2007.04.30

2

Safe Harbor Notice

The forward-looking statements in this press release

reflect the current belief of Optimax Technology

Corporation as of the date of this press release,

although we make no guarantees as to our future

results or the events set forth herein, except as

required by law, Optimax Technology Corporation

undertakes no obligation to update these forecasts

and forward-looking statements.

3

Agenda

1. 2006 Finance Results

2. 2007Q1 Finance Results

3. Capacity & Capex Plans

4. LCD Market Trend

4

2006 Income Statement – QoQ Comparison

Unit: NT$ Million (Except Per Share Data)

QoQChange %

Net Sales 6,425 100.0% 5,139 100.0% 4,439 100.0% 5,324 100.0% 19.9%

Cost of Goods Sold (5,300) (82.5%) (4,388) (85.4%) (4,324) (97.4%) (5,362) (100.7%) 24.0%

Gross Profit 1,125 17.5% 751 14.6% 115 2.6% (38) (0.7%) (133.0%)

Operating Expenses (409) (6.4%) (464) (9.0%) (434) (9.8%) (465) (8.7%) 7.1%

Operating Income (Loss) 716 11.1% 287 5.6% (319) (7.2%) (503) (9.4%) 57.7%

Net Non-operating (Expense) (200) (3.1%) (635) (12.4%) 179 4.0% (894) (16.8%) (599.4%)

Income (Loss) before Tax 516 8.0% (348) (6.8%) (140) (3.2%) (1,397) (26.2%) 897.9%

Income Tax Benefit (Expense) (57) (0.9%) 78 1.5% 2 0.0% (57) (1.1%) (2950.0%)

Cumulative effect on change

in acounting principle 12 0.2% - - - - - - 0.0%

Net Income (Loss) 471 7.3% (270) (5.3%) (138) (3.1%) (1,454) (27.3%) 953.6%

Basic EPS (NT$)(a) 0.95 (0.55) (0.27) (2.91) 977.8%

Depreciation & Amortization 384 6.0% 403 7.8% 414 9.3% 421 7.9% 1.7%

EBITDA (Operating Income + D&A)

1,100 17.1% 690 13.4% 95 2.1% (82) -1.5% (186.3%)

(a) Basic EPS of Q1'06~Q4'06 were calculated based on total weighted average outstanding shares of 494 million, 497 million, 499 million, and 501 million

Q1'06 Q2'06 Q3'06 Q4'06

5

2006 Income Statement – YoY Comparison

Unit: NT$ Million (Except Per Share Data)

YoYChange %

Net Sales 21,762 100.0% 21,327 100.0% (2.0%)

Cost of Goods Sold (17,951) (82.5%) (19,374) (90.8%) 7.9%

Gross Profit (Loss) 3,811 17.5% 1,953 9.2% (48.8%)

Operating Expenses (1,931) (8.9%) (1,772) (8.3%) (8.2%)

Operating Income (Loss) 1,880 8.6% 181 0.8% (90.4%)

Net Non-operating Income (Exp.) (3,970) (18.2%) (1,550) (7.3%) (61.0%)

Income (Loss) before Tax (2,090) (9.6%) (1,369) (6.4%) (34.5%)

Income Tax Benefit (Expense) 229 1.0% (34) (0.2%) (114.8%)

Cumulative effect on change

in acounting principle - - 12 0.1% 100.0%

Net Income (Loss) (1,861) (8.6%) (1,391) (6.5%) (25.3%)

Basic EPS (NT$)(a) (3.98) (2.78) (30.2%)

Depreciation & Amortization 1,114 5.1% 1,622 7.6% 45.6%

EBITDA (Operating Income + D&A)

2,994 13.8% 1,803 8.5% (39.8%)

(a) Basic EPS of FY05 and FY06 were calculated based on total weighted average outstanding shares of 468 million.

and 501 million

2005 2006

6

2006 Balance Sheet Highlights

Unit : NT$ Million

2005 Q1'06 Q2'06 Q3'06 Q4'06YoY

Change %

Cash 2,275 2,554 1,744 1,659 2,121 (6.8%)

Inventory 5,947 6,224 5,999 5,872 5,787 (2.7%)

Short Term Debt(a) 2,895 3,142 3,230 3,465 3,581 23.7%

Long Term Debt 10,082 10,604 9,971 9,347 10,092 0.1%

Equity 11,239 11,748 11,661 11,573 10,126 (9.9%)

Total Assets 28,778 29,343 27,646 27,311 28,214 (2.0%)

Inventory Turnover (Days)(b) 121 107 125 124 98

Total Liability to Total Assets 61% 60% 58% 58% 64%

Debt to Equity 115% 117% 113% 111% 135%

Net Debt to Equity 95% 95% 98% 96% 114%

(a) Short term debt refersto all interest bearing debt maturing within one year

Q4'06 Short term debt were included 3,538 million borrowings maturing within one year and 43 million converted bond

(b) Annualized, calculated by dividing the inventory into the cost of goods sold during such period, then multiplying by 365 days

7

2006 Cash Flow Highlights

Unit: NT$ Million

2005 Q1'06 Q2'06 Q3'06 Q4'06 2006QoQ

Change %

From Operating 1,234 55 (326) 675 (46) 358 106.8%

Net Profit (Loss) (1,861) 471 (270) (138) (1,454) (1,391) (953.6%)

Depreciation & Amortization 1,114 384 403 414 421 1,622 (1.7%)

From Investment (4,691) (580) (122) (416) (361) (1,479) 13.2%

Capital Expenditure (4,458) (391) (147) (377) (368) (1,283) 2.4%

From Financing 3,674 804 (362) (344) 869 967 352.6%

Repayment of Long Term Debt (4,176) (3,202) (1,277) (3,202) (1,377) (9,058) 57.0%

Long Term Debt 8,200 3,950 700 2,800 1,900 9,350 32.1%

Short Term Debt (1,526) 52 201 53 344 650 549.1%

Free Cash Flow (3,457) (525) (448) 259 (407) (1,121)

8

Agenda

1. 2006 Finance Results

2. 2007 Q1 Finance Results

3. Capacity & Capex Plans

4. LCD Market Trend

9

2007 Income Statement – QoQ Comparison

QoQChange %

Net Sales 4,455 100.0% 5,324 100.0% (16.3%) 6,425 100.0%

Cost of Goods Sold (4,526) (101.6%) (5,362) (100.7%) (15.6%) (5,300) (82.5%)

Gross Profit(Loss) (71) (1.6%) (38) (0.7%) 86.8% 1,125 17.5%

Operating Expenses (299) (6.7%) (465) (8.7%) (35.7%) (409) (6.4%)

Operating Income (Loss) (370) (8.3%) (503) (9.4%) (26.4%) 716 11.1%

Net Non-operating Income (Exp.) (107) (2.4%) (894) (16.8%) (88.0%) (200) (3.1%)

Income (Loss) before Tax (477) (10.7%) (1,397) (26.2%) (65.9%) 516 8.0%

Income Tax Benefit (Expense) 27 0.6% (57) (1.1%) (147.4%) (57) (0.9%)

Cumulative effect on change

in acounting principle - - - - 0.0% 12 0.2%

Net Income (Loss) (450) (10.1%) (1,454) (27.3%) (69.1%) 471 7.3%

Basic EPS (NT$)(a) (0.89) (2.91) (69.4%) 0.95

Depreciation & Amortization 410 9.2% 421 7.9% (2.6%) 384 6.0%

EBITDA (Operating Income + D&A)

40 0.9% (82) -1.5% (148.8%) 1,100 17.1%

(a) Basic EPS of Q1'06、Q4'06、Q1'07 were calculated based on total weighted average outstanding shares of 494 million,

501 million, and 506 million

Q1'07 Q4'06

Unit: NT$ Million (Except Per Share Data)

Q1'06

10

2007 Balance Sheet Highlights

Q1'07 Q4'06QoQ

Change %Q1'06

Cash 2,066 2,121 (2.6%) 2,554

Inventory 4,735 5,787 (18.2%) 6,224

Short Term Debt(a) 3,831 3,581 7.0% 3,142

Long Term Debt 9,914 10,092 (1.8%) 10,604

Equity 9,696 10,126 (4.2%) 11,748

Total Assets 26,378 28,214 (6.5%) 29,343

Inventory Turnover (Days)(b) 95 98 107

Total Liability to Total Assets 63% 64% 60%

Debt to Equity 142% 135% 115%

Net Debt to Equity 120% 114% 95%

(b) Annualized, calculated by dividing the average inventory into the cost of goods sold during such period, then

multiplying by 365 days.

(a) Including below items: (1) NT$2,864M current payable of L/T debt. (2) NT$31M CB. (3) NT$936M S/T debt

Unit : NT$ Million

11

2007 Cash Flow Highlights

Q1'07 Q4'06QoQ

Change %Q1'06

From Operating 240 (46) 621.7% 55

Net Profit (Loss) (450) (1,454) 69.1% 471

Depreciation & Amortization 410 421 (2.6%) 384

From Investment (380) (361) (5.3%) (580)

Capital Expenditure (309) (368) 16.0% (391)

From Financing 84 869 90.3% 804

Repayment of Long Term Debt (3,203) (1,377) (132.6%) (3,202)

Long Term Debt 3,000 1,900 (57.9%) 3,950

Short Term Debt 286 344 (16.9%) 52

Free Cash Flow (140) (407) (525)

Unit: NT$ Million

12

Optimax Monthly Sales Revenue

Unit : Mil. NT$

1,454

1,321

1,680

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

1 2 3 4 5 6 7 8 9 10 11 12

2007

2006

2005

2004

2003

2002

2001

2000

13

Agenda

1. 2006 Finance Results

2. 2007 Q1 Finance Results

3. Capacity & Capex Plans

4. LCD Market Trend

14

Optimax’s Capacity

Start Completion

#1 1998/7 1999/3 1999/5 300 K M2/month 1080mm For TN/STN

#2 2001/5 420 K M2/month 1330mm For TFT

#3 2002/3 420 K M2/month 1330mm For TFT

#4 2003/5 2003/11 2003/12 580K M2/month 1330mm For TFT

#5- -

2004/7 640K M2/month 1470mm For TFT

#6- -

2004/11 640K M2/month 1470mm For TFT

Tainan #8 2005/12 640K M2/month 1470mm For TFT

Tainan #9 2007/Q2 1280K M2/month 1470mm For TFT

MassProduction

Capacity Film Width Application

2004/7 2005/3

Construction

Line

2000/7 2001/3

Place

Ping Chen,Taoyuan

15

2007 Capex Plans

China Back-End Plant

-Location: Suzhou

-Mass Production: Q4/2007

Line #9 & CCD Facility Set-up

-Location :Tainan & Ping-Chen

16

Agenda

1. 2006 Finance Results

2. 2007 Q1 Finance Results

3. Capacity & Capex Plans

4. LCD Market Trend

17

Large Size TFT-LCD Panel Shipment

Unit: K sets

Source: Display Search (2007/04/01)

-50,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

Notebook 63,500 79,800 97,800 112,500 128,950 147,900

Monitors 118,200 140,100 160,000 175,300 186,000 194,800

TV 28,500 54,100 81,700 104,300 123,100 137,800

2005 2006 2007(E) 2008(E) 2009(E) 2010(E)

18

LCD Market Trend

• LCD-TV Remain as the Driving Force

• Profitless Leads to Capex Cuts

• 1H07 at Bottom, 2H07 Rebound

• Price Decline may End in Q207

19

LCD Market Trend vs. Optimax Strategy

LCD Market• LCD-TV Remain as the

Driving Force

• Profitless Leads to Capex Cuts

• 1H07 at Bottom, 2H07 Rebound

• Price Decline may End in Q207

Optimax• LCD-TV & Large Size

Monitor as main product mix

• Capacity Enhanced by Production Efficiency

• Margin Oriented by Products / Clients / Areas

• Reasonable Price Raise

For further information, please visit our website at :

www.optimax.com.tw

Contact Investor Relations at :

Phone: +886 (3) 460-6677 Ext. 1366

Email: [email protected]


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