TECO Electric & Machinery Co., Ltd.

5F, 19-9, San Chong Road, Nan-Kang, Taipei 115, Taiwan

Tel: (8862) 2655-3333 | Fax: (8862) 2655-2259 | http://www.teco.com.tw

TECO Announces 1Q 2015 Results

Taipei, Taiwan, May 15th 2015 - TECO Electric and Machinery Co., Ltd., a leading manufacturer and service provider of motors, home appliances and information technology, today announced its financial results for 1Q 2015.

Consolidated Basis Unit: NT$1,000

Period

Item

1Q 2015

vs. 1Q 2014

(+/-%)

vs. 4Q 2014

(+/-%)

Operating Revenue

11,716,314

-13.4%

-7.0%

Gross Profit, net

3,057,061

-7.1%

-1.5%

Operating Profit

986,683

-17.0%

26.5%

Income Tax Expense

287,384

-22.8%

46.7%

Net Income(1)

737,106

-14.4%

5.1%

EPS(NT$)

0.37

(1) Excluding non-controlling interests.

Please find the details in the following pages.

1

For the first quarter of 2015, net revenue totaled NT$11,716 million and gross profit was NT$3,057 million. Operating profit came in at NT$987 million and net income was NT$737 million. Earnings per share was reported as NT$0.37.
Recurring operating revenue decreased by 13.5% as opposed to 1Q'14. Gross profit and operating profit decreased by 7.1% and 17.0% respectively. Net income decreased by 14.4%. The decrease in non-operating income was mainly due to the increase in "Net currency exchange losses" in 1Q15. (See table 1)

Table 1

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1Q ' 15 (3) 1Q ' 14 (3)

YoY %

Amount % Amount %

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

11,716,314 100.0% 13,524,627 100.0% -13.4%

11,611,465 99.1% 13,429,014 99.3% -13.5%

104,849 0.9% 95,613 0.7% 9.7% (8,665,295) -74.0% (10,233,565) -75.7% -15.3%

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

3,057,061 26.1% 3,291,593 24.3% -7.1%

(2,070,378) -17.7% (2,103,424) -15.6% -1.6%

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

986,683 8.4% 1,188,169 8.8% -17.0%

122,264 1.0% 135,470 1.0% -9.7%

182,502 1.6% 111,856 0.8% 63.2% (59,340) -0.5% 5,479 0.0% - (47,709) -0.4% (60,598) -0.4% -21.3%

46,811 0.4% 78,733 0.6% -40.5%

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1,108,947 9.5% 1,323,639 9.8% -16.2%

(287,384) -2.5% (372,495) -2.8% -22.8%

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

737,106 6.3%861,255 6.4% -14.4%

(In NT$1,000, except EPS)

Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

0.37 0.44

Note:

(1) Unrealized / realized gain on inter-affiliate accounts included. (2) Excluding non-controlling interests.

(3) Comply with IFRS.

2

Recurring operating revenue for 1Q'15 decreased 7.4% over 4Q'14. Gross profit decreased by 1.5% while operating profit increased by 26.5%. Net income increased by 5.1%. The main reason results in decreasing Non- operating Income is the decrease of "Other Non-Operate Income" from Other Income.

Table 2

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1Q ' 15 (3) 4Q ' 14 (3)

Amount % Amount %

11,716,314 100.0% 12,596,314 100.0%

11,611,465 99.1% 12,537,886 99.5%

104,849 0.9% 58,428 0.5% (8,665,295) -74.0% (9,492,627) -75.4%

3,057,061 26.1% 3,102,880 24.6%

(2,070,378) -17.7% (2,322,863) -18.4%

986,683 8.4% 780,017 6.2%

122,264 1.0% 176,949 1.4%

182,502 1.6% 418,791 3.3% (59,340) -0.5% (152,294) -1.2% (47,709) -0.4% (55,116) -0.4%

46,811 0.4% (34,432) -0.3%

1,108,947 9.5% 956,966 7.6% (287,384) -2.8% (195,929) -1.6%

YoY %

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1Q ' 15 (3) 4Q ' 14 (3)

Amount % Amount %

11,716,314 100.0% 12,596,314 100.0%

11,611,465 99.1% 12,537,886 99.5%

104,849 0.9% 58,428 0.5% (8,665,295) -74.0% (9,492,627) -75.4%

3,057,061 26.1% 3,102,880 24.6%

(2,070,378) -17.7% (2,322,863) -18.4%

986,683 8.4% 780,017 6.2%

122,264 1.0% 176,949 1.4%

182,502 1.6% 418,791 3.3% (59,340) -0.5% (152,294) -1.2% (47,709) -0.4% (55,116) -0.4%

46,811 0.4% (34,432) -0.3%

1,108,947 9.5% 956,966 7.6% (287,384) -2.8% (195,929) -1.6%

-7.0%

-7.4%

79.4%

-8.7%

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1Q ' 15 (3) 4Q ' 14 (3)

Amount % Amount %

11,716,314 100.0% 12,596,314 100.0%

11,611,465 99.1% 12,537,886 99.5%

104,849 0.9% 58,428 0.5% (8,665,295) -74.0% (9,492,627) -75.4%

3,057,061 26.1% 3,102,880 24.6%

(2,070,378) -17.7% (2,322,863) -18.4%

986,683 8.4% 780,017 6.2%

122,264 1.0% 176,949 1.4%

182,502 1.6% 418,791 3.3% (59,340) -0.5% (152,294) -1.2% (47,709) -0.4% (55,116) -0.4%

46,811 0.4% (34,432) -0.3%

1,108,947 9.5% 956,966 7.6% (287,384) -2.8% (195,929) -1.6%

-1.5%

-10.9%

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1Q ' 15 (3) 4Q ' 14 (3)

Amount % Amount %

11,716,314 100.0% 12,596,314 100.0%

11,611,465 99.1% 12,537,886 99.5%

104,849 0.9% 58,428 0.5% (8,665,295) -74.0% (9,492,627) -75.4%

3,057,061 26.1% 3,102,880 24.6%

(2,070,378) -17.7% (2,322,863) -18.4%

986,683 8.4% 780,017 6.2%

122,264 1.0% 176,949 1.4%

182,502 1.6% 418,791 3.3% (59,340) -0.5% (152,294) -1.2% (47,709) -0.4% (55,116) -0.4%

46,811 0.4% (34,432) -0.3%

1,108,947 9.5% 956,966 7.6% (287,384) -2.8% (195,929) -1.6%

26.5%

-30.9%

-56.4%

-61.0%

-13.4%

-236.0%

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

1Q ' 15 (3) 4Q ' 14 (3)

Amount % Amount %

11,716,314 100.0% 12,596,314 100.0%

11,611,465 99.1% 12,537,886 99.5%

104,849 0.9% 58,428 0.5% (8,665,295) -74.0% (9,492,627) -75.4%

3,057,061 26.1% 3,102,880 24.6%

(2,070,378) -17.7% (2,322,863) -18.4%

986,683 8.4% 780,017 6.2%

122,264 1.0% 176,949 1.4%

182,502 1.6% 418,791 3.3% (59,340) -0.5% (152,294) -1.2% (47,709) -0.4% (55,116) -0.4%

46,811 0.4% (34,432) -0.3%

1,108,947 9.5% 956,966 7.6% (287,384) -2.8% (195,929) -1.6%

15.9%

46.7%

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

737,106 6.4%701,312 5.6% 5.1%

(In NT$1,000, except EPS) Operating Revenue

Recurring Operating Revenue

Gain on Sales of Financial Assets

Operating Costs

Gross Profit, net (1)

Operating expenses

Operating Profit

Non-operating Income (Expense) Other Income

Other Gains and Losses

Financial Costs

Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method

Income before Tax

Income Tax Expense

Net Income (2)

EPS

0.37 0.35

Note:

(1) Unrealized / realized gain on inter-affiliate accounts included. (2) Excluding non-controlling interests.

(3) Comply with IFRS.

3

Table 3

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

Mar 31, 2014

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

14,511,064

12,345,072

11,111,906

2,820,210

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

40,788,252

11,699,901

5,262,188

20,395,913

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

37,358,002

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

78,146,254

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

19,097,444

1,470,000

4,431,884

4,093,033

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

9,994,917

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

29,092,361

Mar 31, 2015 Dec 31, 2014 (In NT$1,000)

Cash & Cash Equivalents 15,089,115 17,201,690

Receivables 11,695,759 11,817,073

Inventories 11,346,602 11,539,306

Other Current Assets 3,276,139 2,717,265

Total Current Assets 41,407,615 43,275,334

Financial Assets

Available for sale - Non Current 12,796,759 14,155,901

Long-Term Investments

Under Equity Method 5,244,017 5,352,012

Other Non-Current Assets 19,666,389 19,929,798

Total Non-Current Assets 37,707,165 39,437,711

Total Assets 79,114,780 82,713,045

Current Liabilities 16,267,582 18,075,827

Bonds Payable 1,513,200 1,527,600

Long-Term Borrowings 4,333,160 5,474,646

Other Non-Current Liabilities 4,276,025 4,346,250

Total Non-Current Liabilities 10,122,385 11,348,496

Total Liabilities 26,389,967 29,424,323

Total Shareholders' Equity(1) 52,724,813 53,288,722

49,053,893

(1) Including non-controlling interests.

About TECO Electric & Machinery Co., Ltd.

TECO Electric & Machinery Co., Ltd. (TSE 1504) was founded in 1956 and has since been well known as one of world's leading motor-manufacturers. For 50 years and running, TECO has now engaged in various business sectors ranging from Industrial Products, Home Appliances, Mechanical and Electrical Construction, Key Components Manufacturing and Information Technology. Teco's consolidated revenue was NT$53.8 Billion for the 2014 fiscal year. More information is available at http://www.teco.com.tw

Investor Relations Contact PR Contact

Andy Chien Karen Lee

IR Manager PR Manager

Phone : 886-2-2655-3333 Ext. 3542 Phone : 886-2-2655-3333 Ext. 3579

Fax : 886-2-26552239 Fax : 886-2-2655-2261

Email : andy.chien@teco.com.twEmail : karen.lee@teco.com.tw

4

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