Slides
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2026 Second Half Institutional Investor Conference August 18, 2026
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Disclaimer 1 Innolux Corporation’s statements of its current expectations and estimates are forward-looking statements subject to significant known and unknown risks and uncertainties and actual results may differ materially from those contained or implied in the forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore one should not place undue reliance on them. Except as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
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Agenda Market Overview Corporate Strategies Financial Results Q&A 2
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Executive Summary 3 Market Outlook • DISPLAY business continue to be affected by consumer sentiment and component cost hikes • NON-DISPLAY business grows steadily Market Consensus- Stable EPS • Market consensus for Innolux earning estimates (EPS NT$) remain positive throughout FY 2026 to FY 2028
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Key Product Application Highlights TV Monitor 4 • TV panel shipment area grows while volume declines, as China makers leverage High-gen lines for larger-size products • Enforcing strict cost controls and a differentiated strategy from China makers, Innolux focuses on the 50-inch and below segments •High-end gaming and OLED models are the key pillars supporting shipment momentum •Higher component costs inflate retail prices, prompting cautious brand procurement to protect profitability
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Key Product Application Highlights Notebook Non - commodity (Industrial) •Edge AI drives surging demand in industrial, healthcare, avionics, and marine sectors, boosting high-margin niche product shipments •System integration elevates display value, targeting high-end markets (Naked-eye 3D, Kirameki, InnoGallery) 5 •Brands built defensive inventories and consumers bought in early in H1 to hedge against the expected component shortage, price hikes and extended lead times •AI PC wave drives long-term demand and display upgrades, triggering a new refresh cycle •Brands built defensive inventories and consumers bought in early in H1 to hedge against the expected component shortage, price hikes and extended lead times •AI PC wave drives long-term demand and display upgrades, triggering a new refresh cycle
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Agenda Market Overview Corporate Strategies Financial Results Q&A 6
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Long-Term Strategy to Create Shareholder Value Agile Product Mix Capacity Converg ence High -Margin Business Optimized Supply Chain Management Increasing ROE & Capital Allocation Lean Capex Competitive Core Fabs Optimal Asset Utilization Facility Capacity Profitability Return Asset- Light Maximize Shareholder Return 7
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> 3 Years Approaches to Increase ROE Growth driver: High-margin business with high entry barrier SEMICONDUCTOR Smart cockpit solution provider Pioneering in-Car user eXperience 1 to 3 Years Increase high-margin business revenue contribution Reduce maintenance cost and capex • Diversification for NON-COMMODITY • Strategic margin expansion within COMMODITY • Bigger contribution of NON-DISPLAY ROE 8
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9 Advanced IC packaging transformation strategy TGV(Through-Glass-Via) Key strategic focus: Glass core substrate (Glass Part) Metallization Glass core with TGV & Metal Combined structure as substrate for high-end packaging Glass core Substrate Scalability Excellent Electrical Performance High-Density Interconnection Thermal Efficiency Mature Chip-First Innolux’s Role (Existing) Chip-First Process Mature IC Packaging (Panel - Level) Market Position RDL-First Process Fine-Pitch Connections Key Advantages for High-End Solutions
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10 Advanced Package Cooling & Warpage Comparison Flip-Chip with ABF substrate DIE Molding Compound Bumps ABF Substrate Cooling Efficiency : Poor DIE Soft ABF substrate susceptible to CTE mismatch stress Warpage Problem : High CTE of ‘Soft ABF’ Other Materials Warpage Heat trapped by molding compound & substrate. Limited thermal paths RDL-First Package Molding (Thinned) Exposed DIE RDL DIE Cooling Efficiency : Excellent DIE Direct Thermal path Warpage Problem : Low DIE Thinner molding & rigid RDL structure reduce thermal stress PROCESS THIN CLOTHING RIGID MATERIAL
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Glass Core Substrate —Enhanced Power Delivery Performance per Unit Area 11 Organic Substrate (Current) DIE Organic Substrate Current industry-standard material Glass Substrate (Next-Gen) DIE Glass Substrate Emerging alternative material PROCESS Risk of Warpage Mechanical Benefits Flatter, stiffer material — less warping in manufacturing Better heat resistance — more stable under high temperatures Fewer surface defects — higher yield and reliability Electrical Benefits Lower electrical resistance in circuit connections Cleaner signal paths with less interference Better support for high-power, high-speed chips (e.g. AI processors) Continued R&D : Material Exploration + Large Panel Design for future large size chip packages
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12 FOPLP and GSP (Glass Substrate Packaging) Market Growth & Key Drivers Market Revenue (USD) 2024 2030 $ 650 Million $ 8 Billion Key growth drivers AI & HPC applications Largest contributors to market growth 45.6% of total FOPLP market revenue by 2030 AI accelerator adoption Increasing demand from AI accelerators & advanced processors Glass substrate advantages Superior interconnect density, dimensional stability & warpage control vs. organic materials Source: Counterpoint Research, 2026
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Agenda Market Overview Corporate Strategies Financial Results Q&A 13
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Operation Performance by Domain Revenue share by domain Gross margin by domain 14 Product Type Revenue (NT$ million) Average GM 1H26 % share 1H26 Non-display 54,746 42% 11-15% Non-commodity 17,215 13% 16-20% Commodity 58,284 45% 6-10% 68% 63% 57% 53% 45% 8% 12% 16% 16% 13% 24% 25% 26% 31% 42% 0% 20% 40% 60% 80% 100% 1H24 2H24 1H25 2H25 1H26 Non-display (X-ray, automotive,FOPLP) Non-commodity (commercial products) Commodity (TV, IT, Tablet, MP)
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Statements of Comprehensive Income Highlights 15 Notes: 1. Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares 2. Capital Stock (common): NT$79.9billion as of June 30, 2026 3. EBITDA = Operating Income + Depreciation & Amortization 4. All figures are prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in TIFRS. (NT$ million) 2Q 2026 1Q 2026 QoQ % 2Q 2025 Net Sales 63,700 100.0% 66,645 100.0% -4.4% 56,231 100.0% Cost of Goods Sold 54,424 85.4% 57,026 85.6% -4.6% 51,519 91.6% Gross Profit 9,275 14.6% 9,619 14.4% -3.6% 4,712 8.4% Operating Expenses 7,642 12.0% 8,120 12.2% -5.9% 5,490 9.8% Operating Profit (Loss) 1,633 2.6% 1,498 2.2% 9.0% (778) -1.4% Net Non-operating Income (Exp.) 173 0.3% 909 1.4% -81.0% 244 0.4% Profit (Loss) before Tax 1,806 2.8% 2,408 3.6% -25.0% (534) -1.0% Net Profit (Loss) 4,654 7.3% 1,792 2.7% 159.7% (677) -1.2% Net Profit (Loss) Attributable to Owners of Company 4,532 7.1% 1,630 2.4% 178.1% (761) -1.4% Basic EPS (NT$)(1)(2) 0.57 0.20 (0.10) EBITDA(3) 9,104 14.3% 9,425 14.1% -3.4% 6,623 11.8% Depreciation & Amortization 7,471 7,926 7,401 Capital Expenditure 2,349 2,846 3,255
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Consolidated Balance Sheet Highlights 16 Notes: 1. Short term debt = short-term bank loan + current portion of long term loan 2. Capital Stock (common): NT$79.9 billion; Book value per common stock: NT$ 28.17 as of June 30, 2026 3. Net debt to equity = (short term debt + long term debt – cash & short term investment) / total equity 4. All figures are prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in T -IFRS (NT$ million) 2026.6.30 2026.3.31 2025.6.30 Cash & Short Term Investment 84,408 58,552 39,280 Inventory 46,883 46,701 37,549 Total Assets 402,705 387,254 317,451 Short Term Debt (1) 34,452 33,378 18,259 Long Term Debt 26,558 18,391 3,974 Total Equity (2) 227,430 229,085 214,964 Current Ratio 151% 146% 154% Debt to Equity 27% 23% 10% Net Debt to Equity -10% -3% -8%
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