WPG Holdings Ltd.(3702.TT/3702.TW)

1Q12 Earning Release1Q12 Earning Release

Apr. 27th, 2012

� These forward-looking statements, which may include statements regarding WPG’ future results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WPG’ current expectations.

� Actual results may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including, among other things: the cyclical nature of our industry; our dependence on introducing new products on a timely basis; our dependence on growth in the demand for our products; our ability to compete effectively; our ability to successfully expand our capacity; our dependence on key personnel; general economic and political conditions, including those related to the IC industry; possible disruptions in commercial activities caused by natural and human-induced

Safe Harbor Notice

disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.

� In addition, any financial information contained here within is presented in conformity with accounting principles generally accepted in the Republic of China (“ROC GAAP”).

� Our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure beyond that which is imposed by law, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.

Welcome Kathryn Chen

1Q12 Financial Highlights & 2Q12 Outlook Cliff Yuan

Q&A Simon Huang/

Agenda

Q&A Simon Huang/

Scott Lin/

Cliff Yuan

Result HighlightsUnit:NT$million

item 1Q121Q12

Guidance4Q11 1Q11 QoQ(%) YoY(%)

Net Sales 80,897 75~79B 82,107 79,776 (1.5) 1.4

Gross Margin 5.15% 5.3% ~ 5.5% 5.08% 5.46% +7 bp -31 bp

Operating Expenses (2,892) (2,859) (2,724) 1.2 6.2

Operating Income 1,276 1,315 1,634 (3.0) (21.9)

Operating Margin 1.58% 1.4% ~ 1.6% 1.60% 2.05% -2 bp -47 bp

Net Income 939 922 1,318 1.8 (28.7)

EPS (NT$)(1) 0.58 0.58 0.83

Net Book Value (NT$)(1) 24.59

Total Assets 117,584 109,021 103,261Total Assets 117,584 109,021 103,261

Total Liabilities 77,305 71,208 67,761

Total Equity 40,280 37,813 35,500

Net Working Capital 54,381 52,647 46,380

Free Cash Flow 1,325 8,562 (3,437)

KEY Indices(2)

ROWC 9.6% 10.0% 14.1% -41 bp -450 bp

NWC/Sales 0.17 0.16 0.15

ROE 10.1% 10.4% 15.2% -32 bp -514 bp

Gearing 0.63 0.67 0.52

(1).Weighted average shares outstanding

(2).Annualized

Income StatementsUnit:NT$million

Item 1Q12 4Q11 QoQ(%) 1Q11 YoY(%)

Net operating Revenue 80,897 82,107 (1.5) 79,776 1.4

COGS (76,729) (77,933) (1.5) (75,418) 1.7

Gross Profit 4,169 4,174 (0.1) 4,358 (4.3)

Gross Margin 5.15% 5.08% 5.46%

Operating Expenses (2,892) (2,859) 1.2 (2,724) 6.2

Operating Income 1,276 1,315 (3.0) 1,634 (21.9)

Operating Margin 1.58% 1.60% 2.05%

Net Non-operating Items (169) (114) 47.4 (34) 397.3Net Non-operating Items (169) (114) 47.4 (34) 397.3

Net Financing costs (192) (213) (10.0) (135) 42.3

Others 23 99 101

Profit Before Tax/Minority 1,108 1,201 (7.8) 1,600 (30.8)

Tax (177) (285) (37.7) (278) (36.2)

Minority/Accounting Principle Change 9 6 (4)

Profit After Tax/Minority 939 922 1.8 1,318 (28.7)

Net Margin 1.16% 1.12% 1.65%

EPS (NTD)(1) 0.58 0.58 0.83

Tax % 16% 24% 17%

(1).Weighted average shares outstanding

Balance SheetUnit:NT$million

item Amount % Amount % Amount %

Cash &Marketable Securities 8,362 7 7,921 7 7,670 7

Accounts Receivable - Trade 51,752 44 47,166 43 44,024 43

Inventory 36,590 31 34,032 31 33,616 33

Current Assets 105,339 90 97,956 90 93,241 90

Others 12,246 10 11,066 10 10,020 10

Total Assets 117,584 100 109,021 100 103,261 100

Current Interest-bearing Debt 32,442 28 31,940 29 26,908 26

Accounts Payble 33,961 29 28,551 26 31,260 30

Accured Liabilities and Others 6,050 5 6,188 6 7,022 7

Current Liabilities 72,453 62 66,680 61 65,190 63

1Q12 4Q11 1Q11

Current Liabilities 72,453 62 66,680 61 65,190 63

Long-term Interest-bearing Debt 4,276 4 3,978 4 1,938 2

Others 575 0 551 1 633 1

Total Liabilities 77,305 66 71,208 65 67,761 66

Total Equity 40,280 34 37,813 35 35,500 34

KEY Indices(1)

Net Working Capital ($) 54,381 52,647 46,380

AR Turnover (Days) 55 46 46

Inventory Turnover (Days) 41 37 38

AP Turnover (Days) 37 31 34

Average Collection Periods (Days) 60 51 50

Current Ratio 145% 147% 143%

Gearing Ratio 0.63 0.67 0.52

(1).Annualized

Cash FlowsUnit:NT$million 1Q12 4Q11 1Q11

-Net Income(1) 930 916 1,322

-Changes of NWC 325 8,172 (6,403)

-Adjustment & Others 69 (526) 1,643

From Operation 1,325 8,562 (3,437)

-Financial Instrument 383 676 1,289

-Capital Expenditure (918) (178) (50)

-Others (110) (148) 72

From Investment (646) 349 1,312From Investment (646) 349 1,312

-Financial Debt (64) (8,700) 1,837

-Others 23 (68) 28

From Financing (41) (8,769) 1,864

Effect on changes of consolidated subsidiaries 398 - 48

Cumulative translation adjustments (651) 78 59

Net Cash Position Change 385 220 (154)

Ending Cash Balance 8,171 7,786 7,419(1).Minority interest is included.

Unit: NT$million

Consolidated Revenue

60,000

70,000

80,000

90,000

0

10,000

20,000

30,000

40,000

50,000

60,000

1Q11 2Q11 3Q11 4Q11 1Q12

79,776 82,524 87,917 82,107 80,897

0%

20%

40%

60%

80%

100%

1Q11 2Q11 3Q11 4Q11 1Q12

16% 17% 15% 14% 16%

75% 73% 75% 77% 76%

6% 6% 7% 7% 6%3% 4% 3% 2% 2%

Others

ASEAN

CN/HK

TWN

Sales breakdown by Geography/ Customer

1Q11 2Q11 3Q11 4Q11 1Q12

0%

20%

40%

60%

80%

100%

1Q11 2Q11 3Q11 4Q11 1Q12

51% 51% 48% 47% 46%

41% 40% 42% 44% 45%

8% 9% 10% 9% 9%MNC / Others

CBM

TBM

TBM：Taiwan-Based CustomersCBM：China Based Customers

Sales breakdown by Application/ Device Type

0%

25%

50%

75%

100%

1Q11 2Q11 3Q11 4Q11 1Q12

39% 40% 39% 41% 41%

23% 22% 23% 24% 24%

18% 19% 18% 17% 18%4% 6% 8% 7%1%1% 2% 2% 2%19% 14% 12% 8% 8%

Others

Automotive

Industry

Consumer

Communication

Computer

0%

25%

50%

75%

100%

1Q11 2Q11 3Q11 4Q11 1Q12

32% 32% 33% 33% 32%

16% 16% 16% 17% 16%

17% 18% 15% 15% 14%

14% 14% 13% 12% 15%

5% 5% 6% 7% 7%7% 7% 8% 9% 10%9% 8% 9% 7% 6%

Others

Optical

PEMCO

Memory

Discrete & Logic

Analog & Mixed Signal IC

Core Component

1Q11 2Q11 3Q11 4Q11 1Q12

14.1% 13.7%12.0%

10.0% 9.6%

12.9%11.5%

12.7%

0.10

0.15

0.20

10%

15%

20%NWC/Sales(Q) ROWC(Q) ROWC(YTD)

ROWC vs. NWC/Sales

0.15 0.16 0.18 0.16 0.170.00

0.05

0.10

0%

5%

10%

1Q11 2Q11 3Q11 4Q11 1Q12Note：Annualized

15.2%

17.7%

15.5%

10.4% 10.1%16.7%

15.8%

14.3%

15%

20%

0.6

0.8

1.0

NT$EPS(Q) ROE(Q) ROE(Ytd)

ROE vs. EPS

0.83 0.93 0.86 0.58 0.580%

5%

10%

0.0

0.2

0.4

1Q11 2Q11 3Q11 4Q11 1Q12Note：Annualized

Gross Margin vs. Operating Margin

4,358 4,730 4,768

4,174 4,169

5.46% 5.73%5.42%

5.08% 5.15%

4%

5%

6%

7%

3,000

4,000

5,000NT$million

Gross Profit Operating Income Operating Margin Gross Margin

1,6341,852 1,861

1,315 1,276

2.05% 2.24% 2.12%1.60% 1.58%

0%

1%

2%

3%

4%

0

1,000

2,000

3,000

1Q11 2Q11 3Q11 4Q11 1Q12

Operating Cash Cycle

50 53 56

51

60

30

40

50

60

0

10

20

1Q11 2Q11 3Q11 4Q11 1Q12

AR in Days Inventory in Days

AP in Days Net Cash Operating Cycle(Days)

Based on our current business outlook,management expects：：：：

� Revenues to be between NT$ 90 billion and NT$ 94 billion at a forecast FX rate of 29.5 NT dollars to 1 US dollar averaged over 2Q12.

2Q12 Guidance

to 1 US dollar averaged over 2Q12.

� Gross profit margin to be between 5.1% and 5.3%

� Operating profit margin to be between 1.6% and1.8%

� 26 Solutions Launched in 1Q12：：：：

Recap of Recent Major Events

���� 推出多連網模式 TV 機頂盒 2012-03-07

���� 推出多媒體播放器整體方案 2012-03-07

���� 推出多媒體盒主、被動組件最佳解決方案 2012-03-07

���� 力推於多媒體盒的應用方案 2012-03-07

���� 推出多媒體盒上的解決方案 2012-03-07

���� 力推多媒体播放器方案 2012-03-07

���� 推出 MID 解决方案 2012-03-07

���� 推出高度整合的單晶片無線接收器解決方案 2012-03-21

���� 推出節能型 IEEE 802.11n 無線區域網路路由器解決方案 2012-03-21

���� 推出無線接取器之主、被動元件解決方案 2012-03-21

���� 力推無線接取器方案 2012-03-21

���� 力推无线基站用高能效 LDMOS 射频功率晶体管 2012-03-21

���� 推出電源效率與高效能絕佳均衡之平台智慧型手機方案 2012-02-15

���� 力推智慧型手機方案 2012-02-15

http://www.WPGholdings.com/wpgtechonline.php

Solar charging Beacon system Car-CD MP3

Solution

LED Lighting with Dimming

Car TV

GPS Solution GPS

推出 MID 解决方案 2012-03-07

���� 推出機頂盒方案 2012-01-11

���� 推出機上盒整體方案 2012-01-11

���� 推出高性價比高清有線數字電視機頂盒解決方案 2012-01-11

���� 推出 Set Top Box 主、被動解決方案 2012-01-11

���� 力推大眾化機上盒(iTV-Box)方案 2012-01-11

���� 推出業界最新的 DVB-T2 機上盒 2012-01-11

���� 力推高清数字机顶盒方案 2012-01-11

力推智慧型手機方案 2012-02-15

���� 推出智慧手機單晶片解決方案 2012-02-15

���� 推出智慧型手機之主、被動組件最佳解決方案 2012-02-15

���� 力推應用於智能手機方案 2012-02-15

���� 力推於智能手機上的運用 2012-02-15

���� 力推 3G 平台在 Smart Phone 应用 2012-02-15

More Solutions Launched …

9

1710

1710

9

1

30

40

50

60

Others

Automotive

Industry

http://www.WPGholdings.com/wpgtechonline.php

13 1421

5

13

12

8

4015

148

10

0

10

20

30

1Q11 2Q11 3Q11 4Q11 1Q12

Industry

Consumer

Communication

Computer

� Closing announcement of AECO acquisition (2012/3/1)

� WPI, subgroup of WPG, Proposes Long-Think business acquisition in Cash (2012/04/11)

� WPG Holdings ranked “2012 The Forbes Global 2000 List No.1944” by Forbes (2012/04/18)

Recap of Recent Major Events

� WPG Board of Directors Proposes NT$2.6 Cash Dividend Per Share (2012/04/24)

http://www.WPGholdings.com