GEMTEK — Call Transcript 2023

Dec 5, 2023

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• 2023 Gemtek’s Earnings Call

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The New Era of Telecommunication

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China-United States Trade War

Since 2018…

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COVID-19 Pandemic

Since 2019…

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• COVID-19 Pandemic Pushes Up Internet Use

Mobile Broadband Penetration & Traffic

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88
912.6
86
84
748.6
82
80
560.7
78
419.4
76
74
72
70
68
2019 2020 2021 2022
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Fixed Broadband
Penetration & Traffic
4378.4
3964.3
3166.8
1990.8
2019 2020 2021 2022
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Russia-Ukraine War & Israel-Palestine Conflict

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Global Economic Downturn Impact

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The Reshaping of Global Supply Chain

Used to be…

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At present

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Key Elements of the New Business Model

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Gemtek’s Vision

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Global CPE shipments, 2023(e)-2025(f)
250
7%
200 4% 6%
6%
7%
10%
16%
17%
18%
150
100
71%
69%
68%
50
0
2023(e) 2024(f) 2025(f)
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Operations Report

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2022 Revenue : YoY +21.77%

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Consolidated Comprehensive Income (IFRS)
In NTD (Thousand) 1Q 2023 2Q 2023 3Q 2023 1Q-3Q 2023 1Q-3Q 2022
Operating Revenue 7,063,009 7,013,592 6,156,474 20,233,075 19,369,253
Operating Cost 6,422,753 6,144,100 5,514,104 18,080,957 17,619,981
Gross Profit 640,256 869,492 642,370 2,152,118 1,749,272
Operating Expenses 566,343 588,155 588,236 1,742,734 1,536,356
Operating Profit 73,913 281,337 54,134 409,384 212,916
Non-Operating Income and Expenses 2,723 93,797 381,384 477,904 369,427
Pre-Tax Profit 76,636 375,134 435,518 887,288 582,343
Net Income 45,765 304,410 346,971 697,146 447,369
Basic EPS (NTD) 0.16 0.79 0.9 1.85 0.66
In NTD (Thousand) Oct. 2023 Nov. 2023
Operating Revenue 1,821,600 1,906,562
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Consolidated Comprehensive Income (IFRS) In NTD (Thousand) 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Operating Revenue 5,172,589 6,492,947 7,703,717 8,530,737 7,063,009 7,013,592 6,156,474 Operating Cost 4,692,727 5,881,773 7,045,481 7,414,735 6,422,753 6,144,100 5,514,104 Gross Profit 479,862 611,174 658,236 1,116,002 640,256 869,492 642,370 Operating Expenses 478,269 514,173 543,914 600,561 566,343 588,155 588,236 Operating Profit 1,593 97,001 114,322 515,441 73,913 281,337 54,134 Non-Operating Income and 146,091 41,695 181,641 -178,451 2,723 93,797 381,384 Expenses Pre-Tax Profit 147,684 138,696 295,963 336,990 76,636 375,134 435,518 Net Income 126,663 89,423 231,283 471,964 45,765 304,410 346,971 Basic EPS (NTD) 0.17 0.14 0.57 0.82 0.16 0.79 0.9

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Gemtek’s Revenue Since 2022

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9000000
8530737
7703717
8000000
7063009
7013592
7000000
6492947
6156474
6000000
5172589
5000000
4000000
3000000
2000000
1000000
0
2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3
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Product Breakdown By Revenue Q1-Q3

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Integrated
51%
Connected Home
29%
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Asia
15%
America Europe
54%
31%
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Global Footprint
KS, China
Pilsen, Czech
Santa Ana, USA
Hsinchu, Taiwan
Tijuana, Mexico
Ha Nam, Vietnam
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Manufacturing Capacity

	Hsinchu, Taiwan		Ha Nam, Vietnam		Kunshan, China
	2022	2023	2022	2023	2022	2023
Capacity	≈ 12%	≈ 3%	≈ 38%	≈ 67%	≈ 50%	≈ 30%
Capacity	≈ 5%	≈ 5%	≈ 45%	≈ 65%	≈ 60%	≈ 30%
SMT	5	4	12	14	22	16

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