Compal — Interim / Quarterly Report 2021

Sep 14, 2021

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Compal Electronics, Inc. Worldwide Leading Design & Manufacturing Service Company

Sep 2021

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Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this presentation are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. These forward looking statements are not based on historical facts but rather on management’s expectations regarding future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Statements in this presentation about our future plans and intentions, results, level of activities, performance, goals or achievements or other future events constitute forward looking statements. Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, or the negative or other variations of statements reflect management’s current beliefs and assumptions and are based on the information currently available to our management.

Investors are cautioned not to place undue reliance on these forward looking statements, which are made as of the date of this presentation, and we assume no obligation to update or revise any forward looking statements.

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Company Overview

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Note: Compal is publicly traded in TWSE (Ticker: 2324 TW) and GDR listed in Luxembourg

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ESG Performance

Sustainalytics MSCI FTSE Russell ISS Environment ISS Social TWSE ESG Risk Rating ESG Rating ESG Rating Rating Rating CG Ranking (100-0, 0 is best) (CCC-AAA) (0-5, 5 is best) (1-10, 1 is best) (1-10, 1 is best) (Top 5% is best) 19.53 Low Risk BBB 3.9 1 3 6%~20%

ESG Commitment

Source: TDCC IR Platform (2021.08)

Despite the harsh environment caused by the COVID-19 pandemic, Compal continued to devote ourselves strengthening ESG performance. Our emphasis earned us a Platinum Award in the Corporate Sustainability Report Awards from the 2020 Taiwan Corporate Sustainability Awards (TCSA); We have also been selected as a constituent of the FTSE4GOOD Index and FTSE4GOOD TIP Taiwan ESG Index for the past several years. Furthermore, facing the environmental impacts of climate change, we have increasingly committed resources in green product design as well as carbon and waste reduction.

Since 2010, Compal had published Corporate Social Responsibility (CSR) reports annually and disclosed the reports on Compal website.

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2010…. 2018 2019 2020
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Business Scope

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Sales Revenue (NT$M)

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Revenue & Gross Profit

Gross Profit (NT$M)

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Operating Profit (NT$M)

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Operating Profit & EPS

Earning Per Share (NT$)

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Cons. Income Statement

NT$ Million	2Q 2021	2Q 2021	1Q 2021	1Q 2021	2Q21 vs. 1Q21	2Q 2020	2Q 2020	2Q21 vs. 2Q20		1H 2021	1H 2021	1H 2020	1H 2020	1H21 vs. 1H20
Net Sales	260,994	100.0%	269,992	100.0%	-3%	263,654	100.0%	-1%		530,986	100.0%	445,701	100.0%	19%
Gross Margin	8,771	3.4%	9,602	3.6%	-9%	8,269	3.1%	6%		18,373	3.5%	14,215	3.2%	29%
Operating Exp	6,222	2.4%	6,327	2.3%		5,887	2.2%			12,549	2.4%	10,928	2.5%
Operating Margin	2,549	1.0%	3,275	1.2%	-22%	2,382	0.9%	7%		5,824	1.1%	3,287	0.7%	77%
Non-Operating Items	900	0.3%	394	0.1%		463	0.2%			1,293	0.2%	647	0.1%
Pre-Tax Income	3,449	1.3%	3,669	1.4%	-6%	2,845	1.1%	21%		7,117	1.3%	3,934	0.9%	81%
Income Tax	729	0.3%	760	0.3%		659	0.2%			1,488	0.3%	977	0.2%
Net Income	2,720	1.0%	2,909	1.1%		2,186	0.8%			5,629	1.1%	2,957	0.7%
Net Income to Parent	2,467	0.9%	2,620	1.0%	-6%	1,987	0.8%	24%		5,087	1.0%	2,592	0.6%	96%
Minority	253	0.1%	289	0.1%		199	0.1%			542	0.1%	365	0.1%
EPS (NT$)	0.57		0.60			0.46				1.17		0.59

Note: All figures in million of NT$ except for earnings per share; Financial data is IFRS adoption

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Cons. Balance Sheet

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NT$ Million		2Q 2021	2Q 2021		1Q 2021	1Q 2021		2Q 2020	2Q 2020
Cash and Cash Equivalents		79,470	17%		84,468	19%		58,264	14%
Account Receivable		205,279	45%		215,868	48%		218,059	54%
Inventories		118,680	26%		91,460	21%		86,518	21%
Current Assets		411,984	90%		401,593	90%		368,502	90%
Total Assets		457,656	100%		446,141	100%		407,319	100%
Accounts Payable		180,106	39%		181,794	41%		167,403	41%
Current Liabilities		331,988	73%		319,500	72%		282,992	69%
Total Liabilities		344,907	75%		334,783	75%		297,284	73%
Shareholders' Equity		112,749	25%		111,358	25%		110,036	27%
BVPS - Parent(NT$)		23.6 $			23.3 $			23.0 $
AR days		72			73			75
Inventorydays		43			32			31
AP days		65			64			60
CCC days		50			41			47

Note: All figures in million of NT$ except for book value per share; Financial data is IFRS adoption

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Earning Distribution

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Note: 2020 earning distribution was approved by BOD in Mar and cash payment was made on May 21, 2021.

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