AVC — Interim / Quarterly Report 2023

Aug 9, 2023

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Q2’23 Results Analyst Meeting

August 09, 2023

AVC Confidential

Disclaimer

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The above statements that pertain to future projections constitute the expectations, opinions, outlooks, or predictions of our company and its affiliates based on information available at the time the statements were made. Such statements may be affected by known and unknown risks and inherent uncertainties, the existence or emergence of facts or factors that differ from the assumptions, suppositions, or judgments of the Company, or other factors. Consequently, there may be significant discrepancies between actual results pertaining to the Company's future earnings, management results, financial conditions, and other matters as explicitly or implicitly referred to in the statements and the content of such statements.

The presentation is run exclusively for the purpose of providing information and not for the purpose of soliciting investments or recommending the buying or selling of specific shares or products. Company makes no warranty concerning the accuracy or completeness of the information and will not be liable for any damages arising out of use of the Information thereof.

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 Briefing Statements of Comprehensive Income

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Items	2023.Q2	2023.Q1	QoQ	QoQ	2022.Q2	YoY	YoY
Sales Revenue	14,871	11,835	3,036	25.66%	13,764	1,107	8.04%
Gross Margin	2,991	2,336	655	28.03%	2,766	225	8.12%
Gross Margin %	20.11%	19.74%	0.37%	1.89%	20.10%	0.01%	0.07%
OPEX	1,444	984	460	46.73%	1,238	206	16.60%
OPEX %	9.71%	8.31%	1.39%	16.77%	9.00%	0.71%	7.92%
OperatingIncome	1,547	1,352	195	14.43%	1,528	19	1.25%
OperatingIncome %	10.41%	11.43%	-1.02%	-8.93%	11.10%	-0.70%	-6.28%
Net Non-operatingitems	330	85	245	288.09%	150	179	119.44%
Pretax Income	1,877	1,437	440	30.61%	1,678	199	11.83%
Income Tax	532	369	163	44.03%	479	52	10.89%
Net Income_Parent Company	1,201	1,007	195	19.36%	1,096	105	9.62%
Net Income %	8.08%	8.51%	-0.43%	-5.01%	7.96%	0.12%	1.46%
EPS(NT in Dollar)	3.18	2.85	0.33	11.62%	3.09	0.09	2.91%

＊ All the figures are audited/ reviewed by CPA; Currency is shown as NTD in million

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 Briefing Statements of Comprehensive Income

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Items H1'23 H1'22 YoY
Sales Revenue 26,705 26,357 349 1.32%
Gross Margin 5,327 5,035 292 5.80%
Gross Margin % 19.95% 19.10% 0.84% 4.41%
OPEX 2,427 2,171 256 11.79%
OPEX % 9.09% 8.24% 0.85% 10.34%
Operating Income 2,900 2,864 36 1.25%
- -
Operating Income % 10.86% 10.87% 0.01% 0.07%
-
Net Non operating items 415 42 373 884.64%
Pretax Income 3,314 2,906 408 14.05%
Income Tax 901 827 74 8.96%
Net Income_Parent Company 2,208 1,842 366 19.87%
Net Income % 8.27% 6.99% 1.28% 18.30%
EPS (NT in Dollar) 6.03 5.21 0.82 15.74%
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＊ All the figures are audited/ reviewed by CPA; Currency is shown as NTD in million

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AVC Confidential

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 Product Mix

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Currency: NTD in Million

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 Product Mix

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Currency: NTD in Million

Product	1H'23	1H'23	1H'22	1H'22	YoY	YoY
	Amount	%	Amount	%	Amount	%
Thermal Products	15,473	58%	14,958	57%	515	3%
Chassis	3,587	13%	3,517	13%	70	2%
Subtotal for TMG	19,060	71%	18,475	70%	585	3%
System Integration Products	5,344	20%	5,171	20%	172	3%
Fositek(Hinge)	2,302	9%	2,711	10%	(409)	-15%
Total Revenue	26,705	100%	26,357	100%	349	1%

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AVC Confidential

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 Non-operating Breakdown

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	Items	Q2'23			Q1'23			QoQ	QoQ		Q2'22			YoY	YoY
	Net Interest revenue(Expenses)		16		(70)			87	-123.19%			(39)		55	-141.80%
	Investment Revenue(Loss)		26		14			12	85.32%			9		17	178.91%
	Gain(Loss)on Disposal of Fixed Assets			8	1			7	655.15%			(36)		44	-121.58%
	Exchange Income(Loss)		178		(67)			245	-365.24%			103		75	72.36%
	Impairment loss		(13)		(13)			0	-1.52%			(13)		0	-1.61%
	Others		114		220			(106)	-48.31%			126		(12)	-9.45%
	Total		330		85			245	288.09%			150		179	119.44%
	Items				1H'23			1H'22					YoY
Net Interest revenue (Expenses)					(54)				(71)				(65)		53.93%
Investment Revenue (Loss)					40				6				22		130.49%
Gain (Loss) on Disposal of Fixed Assets							9		(149)			(161)			129.06%
Exchange Income (Loss)					111				59				105		-279.33%
Impairment loss					(26)				(26)				24		-23.71%
Others					334				224				316		102.13%
Total					415				42				242		-410.21%

＊ All the figures are audited/ reviewed by CPA; Currency is shown as NTD in million

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 Briefing Consolidated B/S

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Account Item	2023.06.30	2023.03.31	QoQ	QoQ	2022.06.30	YoY	YoY
Cashand Cash in Bank	20,955	22,048	(1,093)	-4.96%	16,766	4,189	24.99%
Accountsreceivable	4,871	4,060	812	19.99%	5,901	(1,030)	-17.45%
Inventory	15,243	16,780	(1,538)	-9.16%	20,062	(4,819)	-24.02%
CurrentAssets	45,123	44,958	165	0.37%	45,815	(692)	-1.51%
Property,Plant andEquipment	10,929	10,550	379	3.59%	8,441	2,488	29.47%
Non-current assets	15,841	15,470	372	2.40%	13,492	2,349	17.41%
Total Assets	60,965	60,427	537	0.89%	59,307	1,657	2.79%
Short-Term Loans	6,720	7,842	(1,122)	-14.31%	6,937	(217)	-3.13%
AccountsPayable	13,500	12,610	890	7.06%	18,589	(5,089)	-27.37%
CurrentLiabilities	31,337	32,111	(775)	-2.41%	35,385	(4,048)	-11.44%
Corporate bonds payable	2,400	2,400	0	0.00%	2,400	0	0.00%
Long-Term Loans	3,163	4,441	(1,277)	-28.76%	3,201	(38)	-1.18%
OtherNon-CurrentLiabilities	2,550	2,597	(47)	-1.83%	2,376	174	7.33%
Non-currentLiabilities	9,124	10,449	(1,325)	-12.68%	9,092	32	0.35%
Total Liabilities	40,461	42,560	(2,099)	-4.93%	44,477	(4,016)	-9.03%
Total Equity	20,504	17,867	2,636	14.76%	14,830	5,673	38.26%
The Net Asset Value of Each Share (NT in Dollar)	48.57	43.92	4.64	10.57%	37.13	11.43	30.79%

＊ All the figures are audited/ reviewed by CPA; Currency is shown as NTD in million

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AVC Confidential

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 Briefing Cash Flows

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Items	1H'23	1H'22	YoY	YoY
Depreciation and Amortization expense	905	843	62	7.35%
Cash flows from (used in) operatingactivities (A)	2,673	3,393	(720)	-21.21%
Capital Expenditures (B)	(2,137)	(1,421)	(716)	50.40%
Net cash flows from (used in) investingactivities	(1,761)	(1,857)	96	-5.15%
Cash Capital Increased	2,850	0	2,850	-
Net cash flows from (used in) financingactivities	385	1,858	(1,473)	-79.26%
Cash and cash equivalents at end ofperiod	20,955	16,766	4,189	24.99%
Free cash Flow(A)-(B)	536	1,972	(1,436)	-72.81%

＊ All the figures are audited/ reviewed by CPA; Currency is shown as NTD in million

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AVC Confidential

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 Key Financial Index

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Key Index	**2023.06.30 **	2023.03.31	QoQ	QoQ	2022.06.30	YoY	YoY
Current Ratio	143.99%	140.01%	3.99%	2.85%	129.48%	14.52%	11.21%
Quick Ratio	93.21%	86.07%	7.14%	8.29%	69.41%	23.80%	34.29%
Debt Ratio	66.37%	70.43%	-4.06%	-5.77%	74.99%	-8.63%	-11.50%
AR turnover days	33	34	(1)	-2.94%	42	(9)	-21.43%
Inventoryturnover days	138	162	(24)	-14.81%	151	(13)	-8.61%

＊ All the figures are audited/ reviewed by CPA; Currency is shown as NTD in million

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AVC Confidential

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 Resolution of the Board of Directors

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• To Set a cash dividend (approximately NT$4.9958 per share) on the basis date for distribution.

• (1) Ex-dividend trading date: August 25, 2023. (2) Last transfer date: August 28, 2023.

• (3) Stock suspension period: August 29, 2023 to September 2, 2023.

• (4) Ex-dividend base date: September 2, 2023. (5) Cash dividend payment date: September 20, 2023.

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AVC Confidential

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http://www.avc.co

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AVC Confidential

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IR Contact information Deputy Spokesperson:Patty Kuo Email:patty_kuo@avc.co TEL:+886-2-22996930 Ext.7210

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