Compal — Interim / Quarterly Report 2021

Jul 13, 2021

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

July 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% Source: TDCC IR Platform (2021.07)

ESG Commitment

Despite the harsh environment caused by the COVID-19 pandemic, Compal continued to devote ourselves to 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 energy saving and carbon reduction.

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

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2010…. 2017 2018 2019
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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		1Q 2021	1Q 2021		4Q 2020	4Q 2020		1Q 2020	1Q 2020			2020	2020		2019	2019	YoY
Net Sales		269,992	100.0%		333,987	100.0%		182,047	100.0%			1,048,929	100.0%		980,442	100.0%	7%
Gross Margin		9,602	3.6%		12,250	3.7%		5,946	3.3%			35,459	3.4%		33,909	3.5%	5%
OperatingExp		6,327	2.3%		7,096	2.1%		5,040	2.8%			23,966	2.3%		23,323	2.4%
Operating Margin		3,275	1.2%		5,154	1.5%		906	0.5%			11,493	1.1%		10,586	1.1%	9%
Non-OperatingItems		394	0.1%		823	0.2%		183	0.1%			1,630	0.2%		-578	-0.1%
Pre-Tax Income		3,669	1.4%		5,977	1.8%		1,089	0.6%			13,123	1.3%		10,008	1.0%	31%
Income Tax		760	0.3%		1,082	0.3%		318	0.2%			2,713	0.3%		2,112	0.2%
Net Income		2,909	1.1%		4,895	1.5%		771	0.4%			10,410	1.0%		7,896	0.8%
Net Income to Parent		2,620	1.0%		4,582	1.4%		605	0.3%			9,362	0.9%		6,956	0.7%	35%
Minority		289	0.1%		313	0.1%		166	0.1%			1,048	0.1%		940	0.1%
EPS(NT$)		0.60			1.05			0.14				2.15			1.60

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

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Cons. Balance Sheet

NT$ Million		1Q 2021	1Q 2021		4Q 2020	4Q 2020		1Q 2020	1Q 2020
Cash and Cash Equivalents		84,468	19%		89,127	19%		64,247	18%
Account Receivable		215,868	48%		232,210	50%		154,493	44%
Inventories		91,460	21%		96,152	21%		88,010	25%
Current Assets		401,593	90%		424,461	91%		316,195	89%
Total Assets		446,141	100%		466,926	100%		354,938	100%
Accounts Payable		181,794	41%		199,726	43%		142,195	40%
Current Liabilities		319,500	72%		335,525	72%		233,467	66%
Total Liabilities		334,783	75%		350,936	75%		245,746	69%
Shareholders' Equity		111,358	25%		115,990	25%		109,191	31%
BVPS - Parent(NT$)		23.3 $			24.2 $			22.9 $
AR days		73			63			77
Inventorydays		32			27			46
AP days		64			57			74
CCC days		41			34			49

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 has been approved by BOD in Mar and cash distribution has been paid out on May 21, 2021.

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