CHICONY — Interim / Quarterly Report 2020

Feb 19, 2021

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CHICONY ELECTRONICS

3Q20 Financial Results November 5, 2020

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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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Chicony’s Global Manufacturing Network

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Taipei HQ
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Wujiang
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Dongguan
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Chongqing

Thailand

• Leased facility started mass production in 4Q19

• New factory construction completed in 4Q20, ready to move in production lines from leased facility by year end

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Positioned as Number 1 Global Market Leader

Chicony Continued to Achieve Leading Market Share

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37%
NB Keyboard
32%
DT Keyboard
Number #1
Market
42%
Share in NB Camera Module
2019
47%
NB Adaptor
30%
IP Cam
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Consistent Dividend Pay-Out Policy to Reward Investors

Chicony	2015	2016	2017	2018	2019
EPS	5.79	5.24	5.9	5.22	8.45
Cash Dividend	4.3	4.25	4.45	3.80	5.90
Stock Dividend	0.05	0.05	0.05	0	0
Dividend Payout %	75%	82%	76%	73%	70%
Cash Yield Rate %	5.79	5.25	6.1%	4.8%	7.1

Source: CMoney

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3Q20 Revenue Increased 5.3% QoQ / 0.9% YoY

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NT$M 2018~2020 Quarterly Revenue
2018 2019 2020
30,000
26,421
25,096
25,000
19,177
20,000
18,111
17,574
15,000
10,000
5,000
0
1Q 2Q 3Q 4Q
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3Q20 Operating Margin Reached 10.4%

Million NT$	3Q 2020 2Q 2020 QoQ %3Q 2019 YoY %
Net Sales	26,421 100.0 25,096 100.0 5.3 26,186 100.0 0.9
COGS	(20,981) (79.4) (20,062) (79.9) (21,177) (80.9)
Gross Profit	5,440 20.6 5,034 20.1 8.1 5,009 19.1 8.6
Operating Expense	(2,689) (10.2) (2,729) (10.9) (2,501) (9.6)
Operating Profit	2,751 10.4 2,305 9.2 19.4 2,508 9.6 9.7
Other Income/Expense	(54)1 (0.2) 9511 3.8 (75) (0.3)
Profit Before Tax	2,697 10.2 3,256 13.0 -17.2 2,433 9.3 10.8
Tax	(535) (2.0) (478) (1.9) (394) (1.5)
Net Income	1,787 6.8 2,389 9.5 -25.2 1,655 6.3 8.0
After Tax EPS	2.55 3.40 -25.0 2.40 6.3

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1~3Q20 Operating Profit Increased 37% YoY

Million NT$	1~3Q 2020 1~3Q 2019 YoY %
Net Sales	69,628 100.0 67,914 100.0 2.5
COGS	(56,339) (80.9) (56,195) (82.7)
Gross Profit	13,288 19.1 11,719 17.3 13.4
Operating Expense	(6,947) (10.0) (7,099) (10.5)
Operating Profit	6,342 9.1 4,621 6.8 37.2
Other Income/Expense	(266) (0.4) 1,791 2.6
Profit Before Tax	6,076 8.7 6,412 9.4 -5.2
Tax	(1,056) (1.5) (1,075) (1.6)
Net Income	4,216 6.1 4,587 6.8 -8.1
After Tax EPS	6.02 6.65 -9.5

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Substantial Improvements for Both Gross Margin and Operating Margin in 3Q20 and 1~3Q20

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Gross Margin 20-year Operating Margin 13-year
high high
3Q20 10.4%
3Q20 20.6%
3Q19 9.6%
3Q19 19.1%
9% 9% 10% 10% 10% 10% 10% 11%
18% 19% 19% 20% 20% 21% 21%
Record 13-year
Gross Margin Operating Margin
high high
1~3Q20 19.1% 1~3Q20 9.1%
1~3Q19 17.3% 1~3Q19 6.8%
16% 17% 17% 18% 18% 19% 19% 20% 0% 2% 4% 6% 8% 10%
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