INVENTEC — Call Transcript 2025

Jan 15, 2025

Inventec Corporation and Subsidiaries Investor Conference

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Inventec Confidential

Safe Harbor Notice

Inventec’s statements of its current are expectations forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. Except as required by law, we undertake no obligation to whether as a update any forward-looking statement, result of new information, future events, or otherwise.

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Consolidated Statements of Com rehensive Income p

NT$ Million	2024 Year-to-Q3		2023 Year-to-Q3	YoY %
Sales Revenue	448,480 100.0%		386,675 100.0%	16%
Gross Profit	23,262 5.2%		19,023 4.9%	22%
Operating Expense	15,363 3.4%		14,110 3.6%	9%
Operating Profit	7,899 1.8%		4,913 1.3%	61%
Non Operating Income and Expenses	(1,676) -0.4%		348 0.1% -582%
Profit Before Income Tax	6,223 1.4%		5,261 1.4% 18%
Profit for the Period	4,894 1.1%		4,089 1.1% 20%
Total Comprehensive Income	11,510 2.6%		6,427 1.7% 79%
Profit Attributable to
Owners of the Parent	4,897 1.1%		4,144 1.1%
Non-Controlling Interest	(3) -0.0%		(55) -0.0%
Total Comprehensive Income Attributable to
Owners of the Parent	11,503 2.6%		6,476 1.7%
Non-Controlling Interest	7 0.0%		(49) -0.0%
EPS (NT$)	1.37		1.16

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Consolidated Statements of Comprehensive Income

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2024 2024 QoQ 2023 YoY
NT$ Million
Q3 Q2 % Q3 %
Sales Revenue 163,815 100.0% 154,159 100.0% 6% 135,841 100.0% 21%
Gross Profit 8,634 5.3% 7,747 5.0% 11% 7,083 5.2% 22%
Operating Expense 5,473 3.4% 5,146 3.3% 6% 4,932 3.6% 11%
Operating Profit 3,161 1.9% 2,601 1.7% 22% 2,151 1.6% 47%
Non Operating Income and Expenses (646) -0.4% (420) -0.3% 54% 218 0.1% -396%
Profit Before Income Tax 2,515 1.5% 2,181 1.4% 15% 2,369 1.7% 6%
Profit for the Period 1,999 1.2% 1,812 1.2% 10% 1,841 1.4% 9%
Total Comprehensive Income 5,696 3.5% 1,656 1.1% 244% 3,534 2.6% 61%
Profit Attributable to
Owners of the Parent 1,997 1.2% 1,811 1.2% 1,873 1.4%
Non-Controlling Interest 2 0.0% 1 -0.0% (32) -0.0%
Total Comprehensive Income
Attributable to
Owners of the Parent 5,696 3.5% 1,653 1.1% 3,554 2.6%
Non-Controlling Interest 0 0.0% 3 0.0% (20) -0.0%
EPS (NT$) 0.56 0.50 0.52
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Consolidated Sales Revenue

(Consolidated Sales Revenue) Unit: NT$ one hundred million

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1,638
1,800
1,542
1,600 1-5% 1,358
1-5% 1,305 1,307
1,281
1,400 1,202
6-10%
1-5% 1-5%
1,200 41-45% 6-10%
1-5%
46-50%
1,000 41-45% 41-45%
41-45% 36-40%
36-40%
800
600
51-55%
400 46-50% 51-55% 51-55% 51-55% 56-60% 56-60%
200
0
24Q3 24Q2 24Q1 23Q4 23Q3 23Q2 23Q1
Smart Device Server PC Sales Revenue
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Financial Trend Analysis

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Sales Revenue Gross Profit Margin
NT$ one hundred million (%)
5.7
2,000 6.0
5.3 5.3 5.2
5.0
4.9
1,800
4.6
5.0
1,600 1-5%
1-5%
1,400
4.0
1-5%
1-5% 1-5%
1,200 41-45% 6-10%
1-5%
46-50%
1,000 41-45% 41-45% 3.0
41-45% 36-40%
36-40%
800
2.0
600
51-55%
400
46-50% 51-55% 51-55% 56-60% 56-60% 56-60% 1.0
200
0 -
24Q3 24Q2 24Q1 23Q4 23Q3 23Q2 23Q1
Smart Device Server PC Gross Profut Margin (%)
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Financial Trend Analysis

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Operating Expense Sales Revenue
NT$ one hundred million NT$ one hundred million
90 1,638 1,800
1,542
80 1,600
1,358
70 1,305 1,281 1,307 1,400
1,202
54.7
60 51.5 1,200
49.3
47.4 47.7 45.4 46.4
50 1,000
40 800
30 600
20 400
10 200
0 0
24Q3 24Q2 24Q1 23Q4 23Q3 23Q2 23Q1
Operating Expense Sales Revenue
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Financial Trend Analysis

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Sales Revenue
Operating Profit Margin
NT$ one hundred million
(%)
2.0
1.9
2,000 1.7 1.6 1.6 2.0
1,800 1.1
1.1
1,600 1-5%
1.0
1-5%
1,400
6-10%
1-5% 1-5%
1,200 41-45% 6-10%
1-5% -
46-50%
1,000 41-45% 41-45%
41-45% 36-40%
36-40%
800
-1.0
600
51-55%
400 46-50% 51-55% 51-55% 51-55% 56-60% 56-60% -2.0
200
0 -3.0
24Q3 24Q2 24Q1 23Q4 23Q3 23Q2 23Q1
Smart Device Server PC Operating Profit Margin
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Non-Operating Income and Expense

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2024 2023 2024 2023
NT$ Million
Q3 Q3 Year-to-Q3 Year-to-Q3
Interest Income 727 728 2,166 2,089
Other Income 29 56 336 252
Foreign Exchange Gain (Loss)
115 319 47 563
(Realized and Unrealized)
Other Gains and Losses 106 340 105 906
Finance Cost (1,624) (1,223) (4,315) (3,448)
Share of the Profit or Loss of
Associates and JV Accounted for 1 (2) (15) (14)
Using the Equity Method
Total Non-Operating
(646) 218 (1,676) 348
Income and Expense
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Consolidated Balance Sheets

NT$ Million	2024/9/30		2023/12/31		2023/9/30
Cash	33,243		28,133		36,373
Current financial assets at fair value through profit or loss	2,850		278		227
Accounts Receivable	118,330		92,207		107,023
Inventories	76,866		59,896		53,759
Other Current Assets	29,270		11,692		8,542
Non-Current Assets	57,843		47,502		47,335
Total Assets	318,402		239,708		253,259
Short-term borrowings	58,644		43,465		44,892
Accounts payable	132,379		81,307		92,662
Other Current Liabilities	43,780		44,531		45,621
Non-Current Liabilities	17,214		10,147		10,232
Total Liabilities	252,017		179,450		193,407
Total Equity	66,385		60,258		59,852

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Financial Ratio Analysis

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% 2024/9/30 2023/9/30
Current Ratio 111.0% 112.4%
Debt Ratio 79.2% 76.4%
2024 2023
%
Year-to-Q3 Year-to-Q3
ROA 4.0% 3.7%
ROE 10.3% 9.2%
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Note1: ROA and ROE have been converted into yearly values.

Note2: ROA={[Year-to-Q3 accumulated net income (loss)+Year-to-Q3 accumulated interest expense×(1-Tax rate)]/Year-to-Q3 accumulated average total assets}×(4/3)

Note3: ROE=(Year-to-Q3 accumulated net income (loss)/Year-to-Q3 accumulated net average shareholders' equity)×(4/3)

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Products Market Prospect

(Q&A)

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https://www.inventec.com iec@inventec.com

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Thank You

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