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COSMO Investor Presentation 2023

Dec 7, 2023

52104_rns_2023-12-07_003fd1e0-8220-41b5-b7d4-2b7edc3234a9.pdf

Investor Presentation

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Cosmo Electronics Corp. Investor Conference December 7[th] , 2023 : 【 stock symbol 2466

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Disclaimers

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 This report might contain forward-looking statements which are based on the expectation that is reasonable when made. However, these statements are not guarantees and are subject to known, unknown risks or the uncertainties that are difficult to predict. The results may not prove to be accurate.

  • Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

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Agenda

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 Company overview

  • Product lines

  • Financial Results

 Strategy & Prospect

  • Q&A

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Company Overview

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  • Founded on May 25[th] , 1981

  • Paid-in Capital :NT $ 1,714,586,970

  • Cosmo was listed on TWSE in 2001

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Product Lines

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LED decoration

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U.S.A Indonesia China

Optoelectronic device

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Taiwan China Indonesia

Indonesia development zone

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Biomass Fuel/steam

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Indonesia

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Indonesia

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Optoelectronic Device —Production Milestones

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Optoelectronic Device — Factory Sites

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Taiwan Headquarter (New Taipei City) Taiwan factory 1 (Yilan) Taiwan factory 2 (Yilan)

Indonesia

China

China factory 1 (Kunshan) Indonesia factory China Business Operation ( Sukabumi ) Office (Dongguan)

Channel flows Asia / Europe /Americas Africa / Oceania

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Optoelectronic Products Application

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  • O/A machine LED lighting

  • Power switchsensorcontroller

  • charger • • factory Battery

  • appliance automation control Management system

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Certificate for Safety Regulations

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Decorative Lights—Factory Sites

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Europe
Asia
Americas
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Decorative Lights Factory in Indonesia

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Decorative Lights Factory in Indonesia

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  • Land area: about 12 hectares

  • Factory area: about 8 hectares

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Christmas

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Halloween/Harvest

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Spring/Wedding

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Financial Results

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Financial Results

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Financial Results

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Analysis of revenue by products

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Analysis of revenue by region

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Financial results

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Strategy & ProspectOptoelectronic component

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 Increase orders in the industrial control system, AI and Electric vehicle markets

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  • Tap into 5G and automotive markets as

  • business layout

  • Improving manufacturing process to increase

  • profit

  • Invest in R&D of high-end products to increase

  • the market share

  • Obtain more OEM orders from famous brand

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  • Indonesia factory has started the first phase of

  • production in Q2 2023

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Strategy & Prospect- decorative lights

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  • Develop new products for diversification

  • Develop outdoor Christmas lightings with

  • strong sense of design and exquisiteness

  • Improve service quality

 Acquire new projects from customers

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Investment Environment in Indonesia

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Economic scale

Gross domestic profit (GDP) in Indonesia reach about 1.06 trillion U.S. Dollars, as the largest economy in ARF, the 16th largest in the world.

Population

Indonesia’s population is recorded as 270 million, the median age of the Indonesian population is around 30 years old. It is estimated to have large consuming capacity because of the tremendous domestic market and the high demographic dividend. Indonesia has huge potential in economic and trade investment.  Policy Support

  • ˙ 2020 Omnibus Law:

  • ˙ Pioneer Industry tax relief

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Indonesia Industrial Park - Location

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 Located in the southern part of West Java Province

 It takes about 2 hours to get to central Jakarta.

 It takes about 2.5 hours to reach Jakarta Soekarno-Hatta International Airport.

 It takes about 2 hours and 15 minutes to the largest commercial export port in Jakarta - Tanjung-Priok.

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【Export port】
Tanjung-Priok
130 km
[location]
Jawa
Barat,Sukabumi,
Cikembar
Industrial zone
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Panorama of development zone

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Project progress—set up fence

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Transportation Construction

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●The expressway was originally built to Ciawi. + ●The first section to + Cigombong was opened at the end of 2019. A ●The section to Parungkuda was opened in August 2023. B length: 54km Overall phase: 4 (second phase Cigombong – Cikembar Cibadak 12 m,predict to complete the construction in early of 2023 28

District Planning
The development zone is located
in
Zhikenbar
Town,
Sukabumi
County, West Java Province,
Indonesia.
( INDONESIA
Jawa
Barat
Sukabumi
Cikembar
)
The
average
temperature
throughout
the
year
is
25
degrees
Celsius,
and
the
rainy
season
is
from
September
to
April
of
the
following
year
(it
drizzling
every
day
during
the
rainy
season,
usually
stopped
within
30
to
50
minutes)
.
The
development
zone
will
be
separated
into
commercial
areas,
factory
areas,
commercial
areas
and
residential
areas
;
2
to
4
lanes
road
will
be
built
between
the
areas
for
transportation
.

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Advantage 1

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  • Qualifications for applying industrial or manufacturing production parks with moderate or above pollution permit.

  • Plan to build secondary industrial wastewater treatment equipment and clean water reservoir in the industrial zone that comply with national environmental standards.

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Advantage 2 The cost for human resources in west Java region

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Advantage 3

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 The government has regulated the development zone where we located as an industrial zone. The total area is approximately 300 hectares.

 The development zone owned by us covers an area of 187 hectares currently.

  • GSI which is a branch of POU CHEN Group needs to pass through here.

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Advantage 4

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0.072

The cost of electricity in Indonesia is low : https://www.globalpetr olprices.com/Indonesia /electricity_prices/

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Advantage 5 Experience

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  • Learn from the experience of PT Cosmo Technology, a subsidiary of Cosmo Electronics Corp.

  • The cost for human resources is considerably low in Southeast Asian countries, and the worker is hard-working and highly obedient.

  • Recruitment is easy.

  • The Employee Turnover is low. Many employees have been in the factory since opened.

  • The employees are loyal in both work and personality, and our core technology is not easy to leak out after technical management.

  • The enterprises are mainly Taiwan-funded and also listed in Taiwan, which are relatively secure for Taiwanese businessmen.

  • The relationship with the local government and military is stable and close, safety is guaranteed, and the official business is processed quickly.

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Advantage 6 initial setup assistance

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  • PT Cosmo Technology has set up local factories for many years and is able to assist with setting up factory operation models and share experiences

  • Experiences of applying local required documents and the operations of corresponding government system

  • Systems (such as payroll and Customs systems)

  • Certificate Application

  • Recruitment

  • Tax declarations

  • Set up factory

  • Customs clearance

  • Ocean freight

  • Set up low-tax area

  • Learning local cultures

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Advantage 7

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Flexibility and customization on land size
as below:
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Shipping fees

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Type Items Statements Indonesian Price(Rp) Price(US
D)
Total(USD)
Import
40FT
Fees for
land freight
Cartage fees Truking 3,800,000 253.33 591.04
Customs fees: Document fees x
number of documents
Jasa EMKL 200,000 13.33
Administrative fees Administrasi 100,000 6.67
Security fees Kawalan 150,000 10.00
Tax PPN 11% 49,500 3.30
Shipping
Company
Unloading containers & terminal
operating fees & others
THC & Others 3,003,930 200.26
Terminal
company
Terminal Handling Charge&
Others(load on container truck)
Lift On/Penumpukan 507,649 33.84
Container
Yard
Terminal Handling Charge&
Others(unload container truck)
Lift Off/ Kumpulkan wadah
kosong
1,054500 70.30
Export
40FT
Fees for
land freight
Cartage fees Truking 3,800,000 253.33 850.82
Customs fees: Document fees x
number of documents
Jasa EMKL 200,000 13.33
Administrative fees Administrasi 100,000 6.67
Security fees Kawalan 150,000 10.00
Tax PPN 11% 49,500 3.30
Container
Yard
Terminal Handling Charge and
others(load on container truck)
Lift On/Penumpukan 999,930 66.60
Terminal
company
Terminal Handling Charge&
Others(unload container truck)
Lift Off/Kumpulkan wadah
kosong
595,238 39.68
Shipping
Company
Container Handling Charge and
others
Biaya Forward 6,868,542 457.90

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Project progress—related certificate in industrial zone

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project progress progress
OSS system(essential certificate) Completed
SPPL(land usage permit) Completed
Mater Plan Completed
Environmental assessment Completed
Traffic assessment Completed
PKS or MOU(cooperation agreement) Completed
Land appraisal Completed
Locationpermission Completed
IPPT(usage permit of land allocation/permission of break
ground)
Completed
Certificate of industrial zone Completed
Permission of highway exists Completed
tree-felling permission Completed
Permission of release the sewage Completed

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The Indonesian issued a regulation that factories are required to be located in industrial zones

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SUKABUMI issued a regulation that factories are required to be located in industrial zones

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Tax Induction as below:

Tax Incentive

Investment
amount
(Indonesian
Rupiah)
Investment
amount
(Millions of
USD)
Exemption
period
Tax
benefits
Tax benefits
within two
years after
exemption
period
One
hundred
billion
7.08 Five years 50% income
tax
deduction
25% tax
deduction
Five
hundred
billion
35.4 Five years 100%
income tax
deduction
50% tax
deduction
One trillion 70.8 Seven years 100%
income tax
deduction
50% tax
deduction
Five trillion 354 Ten years 100%
income tax
deduction
50% tax
deduction
Fifteen
trillion
1,062 Fifteen years 100%
income tax
deduction
50% tax
deduction


Thirty
trillion
2,124 Twenty years 100%
income tax
deduction
50% tax
deduction

Omnibus Law in 2020: Indonesian

government announced that Omnibus Law is enacted in November 2020 to attract foreign investment, create jobs and promote economic growth.

Tax Induction in : Pioneer Industry

Pioneer industry include: upstream basic metal (non-steel) industry, petrochemical industry, inorganic chemical industry, agricultural chemicals industry, pharmaceutical industry, components industry of semiconductor, computer parts, key communication equipment, health care equipment and machinery-related.

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Strategy & prospect- development

area

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  • Choose the suitable and reputable clients.

  • The amount of land available for sale in the industrial

zone has reached approximately 40 hectares.

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