CHICONY — Interim / Quarterly Report 2021

Nov 5, 2021

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CHICONY ELECTRONICS

3Q21 Financial Results November 5, 2021

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Safe Harbor Notice

Chicony’s statement of its current expectations are forwardlooking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those . contained in any forward-looking statements

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Sustainability Snapshot

Corporate Governance Performance

• Included in TWSE’s "Taiwan High Compensation 100 Index"

• Listed in TWSE’s "Taiwan Sustainability Value Index"

• Selected as a constituent of "TIP Taiwan Market CSR Small/Mid-Cap Index“

• Included in FTSE4 Good Index

Sustainable Value Chain Performance

• Started increasing the use of recycled plastics, around 10%~30%, in production for input device products and mobile keyboard modules

• All suppliers have signed “Commitment Statement on RBA Code of Conduct”, “Letter of Undertaking of Integrity for Suppliers” and “Declaration of Conflict-free Minerals”

• To reduce carbon emissions from transportation in Chicony’s factories, local procurement reached an average of 76% except for the new Thailand factory

Environmental Protection and Sustainability Performance

• The SBTi and TCFD projects were introduced in 2020 for the regular inventory and disclosure of climate change risk and opportunity management

• The Headquarters and factories in China and Thailand all completed ISO 140641:2018 validation and verification, which shall be the basis for the implementation of SBTi reduction

• In order to work with the "Three-Year Action Plan for Winning the Blue Sky Defense Battle", the company’s factories in China conducted a survey on raw material suppliers. Raw materials not complying with standards were all replaced

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Chicony’s Global Manufacturing Network

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Taipei HQ
Wujiang
Thailand Chongqing Dongguan
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Positioned as Number 1 Global Market Leader

Chicony Continued to Achieve Leading Market Share

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38%
NB Keyboard
41%
DT Keyboard
Number #1
Market
43%
Share in NB Camera Module
2020
48%
NB Adaptor
25%
IP Cam
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Consistent Dividend Pay-Out Policy to Reward Investors

Chicony	2016	2017	2018	2019	2020
EPS	5.24	5.9	5.22	8.45	7.80
Cash Dividend	4.25	4.45	3.80	5.90	5.50
Stock Dividend	0.05	0.05	0	0	0
Dividend Payout %	82%	76%	73%	70%	71%
Cash Yield Rate %	5.25	6.1%	4.8%	7.1	5.2

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Record High 3Q21 Revenue Driven by Strong Demand

2019~2021 Quarterly Revenue

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Unit: NT$M 2019 2020 2021
27,349
25,137 25,293
1Q 2Q 3Q 4Q
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3Q21 Operating Margin Beat Expectation

Million NT$	3Q 2021 2Q 2021 QoQ %3Q 2020 YoY %
Net Sales	27,349 100.0 25,293 100.0 8.1 26,421 100.0 3.5
COGS	(22,498) (82.3)(20,892) (82.6) (20,981) (79.4)
Gross Profit	4,851 17.7 4,401 17.4 10.2 5,440 20.6 -10.8
Operating Expense	(2,402) (8.8) (2,554) (10.1) (2,689) (10.2)
Operating Profit	2,449 9.0 1,847 7.3 32.6 2,751 10.4 -11.0
Other Income/Expense	1 0.0 177 0.7 (54) (0.2)
Profit Before Tax	2,450 9.0 2,025 8.0 21.0 2,697 10.2 -9.1
Tax	(459) (1.7) (388) (1.5) (535) (2.0)
Net Income	1,596 5.8 1,323 5.2 20.7 1,787 6.8 -10.7
After Tax EPS	2.25 1.87 20.3 2.55 -11.8

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Million NT$	1~3Q 2021 1~3Q 2020 YoY %
Net Sales	77,779 100.0 69,628 100.0 11.7
COGS	(64,131) (82.5) (56,339) (80.9)
Gross Profit	13,648 17.5 13,288 19.1 2.7
Operating Expense	(7,503) (9.6) (6,947) (10.0)
Operating Profit	6,145 7.9 6,342 9.1 -3.1
Other Income/Expense	682 0.9 (266) (0.4)
Profit Before Tax	6,827 8.8 6,076 8.7 12.4
Tax	(1,312) (1.7) (1,056) (1.5)
Net Income	4,488 5.8 4,216 6.1 6.5
After Tax EPS	6.35 6.02 5.5

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In 2021, EPS and Profit Margins All Peaked in 3Q

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NT$M

NT$

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Record High Revenue YTD with NT$6.35 EPS

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EPS
Revenue
NT$M NT$
95,082 8.45
92,552
7.80
4Q
4Q 4Q
4Q
3Q 3Q
3Q 3Q 3Q
3Q
67,914 69,628 2Q 77,779 2Q 6.65 6.02 2Q 6.35
2Q 2Q
2Q
1Q 1Q 1Q
1Q 1Q
2019 2020 2021 2019 2020 2021
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