INVENTEC — Investor Presentation 2023

Mar 14, 2023

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Inventec Corporation and Subsidiaries 2022 Fourth Quarter Investor Conference

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Safe Harbor Notice

• Inventec’s statements of its current are expectations

• forward looking statements subject to significant risks and uncertainties and actual results differ may

• materially from those contained in the forward-looking statements.

• as we undertake no

• Except required by law, obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

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Inventec Confidential

Consolidated Statements of Com rehensive Income p

NT$ Million	2022 Year-to-Q4		2021 Year-to-Q4	YoY %
Sales Revenue	541,751 100.0%		519,732 100.0%	4%
Gross Profit	26,003 4.8%		22,295 4.3%	17%
Operating Expense	19,334 3.6%		17,570 3.4%	10%
Operating Profit	6,669 1.2%		4,725 0.9%	41%
Non Operating Income and Expenses	508 0.1%		2,974 0.6% -83%
Profit Before Income Tax	7,177 1.3%		7,699 1.5% -7%
Profit for the Period	6,062 1.1%		5,947 1.1% 2%
Total Comprehensive Income	7,430 1.4%		5,144 1.0% 44%
Profit Attributable to
Owners of the Parent	6,129 1.1%		6,538 1.2%
Non-Controlling Interest	(67) -0.0%		(591) -0.1%
Total Comprehensive Income Attributable to
Owners of the Parent	7,491 1.4%		5,737 1.1%
Non-Controlling Interest	(61) -0.0%		(593) -0.1%
EPS (NT$)	1.71		1.82

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Consolidated Statements of Comprehensive Income

NT$ Million	2022 Q4		2022 Q3	QoQ %		2021 Q4	YoY %
Sales Revenue	134,757 100.0%		142,452 100.0%	-5%		148,001 100.0%	-9%
Gross Profit	7,009 5.2%		7,340 5.2%	-5%		6,119 4.1%	15%
Operating Expense	5,288 3.9%		5,100 3.6%	4%		4,911 3.3%	8%
Operating Profit	1,721 1.3%		2,240 1.6%	-23%		1,208 0.8%	42%
Non Operating Income and Expenses	(300) -0.2%		53 0.0% -666%			344 0.2% -187%
Profit Before Income Tax	1,421 1.1%		2,293 1.6% -38%			1,552 1.0% -8%
Profit for the Period	1,372 1.0%		1,741 1.2% -21%			1,169 0.8% 17%
Total Comprehensive Income	548 0.4%		2,866 2.0% -81%			1,721 1.2% -68%
Profit Attributable to
Owners of the Parent	1,393 1.0%		1,749 1.2%			1,460 1.0%
Non-Controlling Interest	(21) -0.0%		(8) -0.0%			(291) -0.2%
Total Comprehensive Income Attributable to
Owners of the Parent	573 0.4%		2,871 2.0%			2,008 1.4%
Non-Controlling Interest	(25) -0.0%		(5) -0.0%			(287) -0.2%
EPS (NT$)	0.39		0.49			0.40

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Consolidated Sales Revenue

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

1,800 1,480 1,600 1,425 1,451 1,348 1,357 1,288 1,400 7% 6% 1,148 9% 1,118 1,200 6% 5% 5% 6% 1,000 5% 800 93% 94% 600 94% 91% 95% 95% 94% 95% 400 200 0 22Q4 22Q3 22Q2 22Q1 21Q4 21Q3 21Q2 21Q1 Smart Device PC, Server Sales Revenue

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Financial Trend Analysis

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Sales revenue
Gross Profit Margin (%)
NT$ one hundred million
5.2 5.2
2,000
4.6
1,800 4.4 4.4 4.5 5.0
4.1 4.1
1,600
4.0
1,400 7%
6%
9%
6% 5%
1,200 5%
3.0
6% 5%
1,000
800
2.0
94% 91% 95% 93% 94%
600 95%
94% 95%
400
1.0
200
0 0.0
22Q4 22Q3 22Q2 22Q1 21Q4 21Q3 21Q2 21Q1
Smart Device PC, Server Gross Profut Margin (%)
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Financial Trend Analysis

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Operating income
NT$ one hundred million NT$ one hundred million
45 1,800
1,480
40 1,425 1,451 1,600
1,348 1,357
35 1,288 1,400
1,148
1,118
30 1,200
22.4
25 1,000
17.2
20 15.8 800
15 11.3 [12.1 ] [15.1 ] 10.3 9.8 600
10 400
5 200
0 0
22Q4 22Q3 22Q2 22Q1 21Q4 21Q3 21Q2 21Q1
Operating Income Sales Revenue
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Sales revenue NT$ one hundred million

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Financial Trend Analysis

Operating Expense NT$ one hundred million											Operating Profit Margin(%)	Operating Profit Margin(%)	Operating Profit Margin(%)
52.9 51.0 1.3 1.6 0 10 20 30 40 50 60 70 80	43.5 1.2			46.0 0.9		49.1 0.8				44.0 1.0		41.2 41.4 0.9 0.9	(3.0) (2.5) (2.0) (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0
22Q4 22Q3	22Q2			22Q1		21Q4				21Q3		21Q2 21Q1
Operating	Expense							Operating Profit Margin

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Financial Trend Analysis

Non-operating income and expenses NT$ one hundred million

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Profit Attributable to Owners of the Parent Non-operating income and expenses
NT$ one hundred million NT$ one hundred million
45
50
20.3
40
7.8
0.5 (0.3) 3.4 1.8 4.2
(3.0)
35
28.0 0
30
25
(50)
20
13.9 [17.5 15.0 ] [14.9 ] [14.6 ]
11.3 11.4
15
10 (100)
5
0 (150)
22Q4 22Q3 22Q2 22Q1 21Q4 21Q3 21Q2 21Q1
Profit Attributable to Owners of the Parent
Non-Operating Income and Expense
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Non-Operating Income and Expense

NT$ Million	2022 Q4		2021 Q4		2022 Year-to-Q4		2021 Year-to-Q4
Interest Income	874		255		1,764		1,076
Other Income	52		40		263		378
Foreign Exchange Gain (Loss) (Realized and Unrealized)	(75)		318		668		(352)
Other Gains and Losses	375		(27)		858		2,572
Finance Cost	(1,518)		(229)		(3,035)		(738)
Share of the Profit or Loss of Associates and JV Accounted for Using the Equity Method	(8)		(13)		(10)		38
Total Non-Operating Income and Expense	(300)		344		508		2,974

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Consolidated Balance Sheets

NT$ Million	2022/12/31		2021/12/31
Cash	42,451		34,788
Current financial assets at fair value through profit or loss	891		1,344
Accounts Receivable	89,507		103,796
Inventories	51,005		62,417
Other Current Assets	6,341		5,278
Non-Current Assets	44,021		39,992
Total Assets	234,216		247,615
Short-term borrowings	48,334		54,695
Accounts payable	64,404		84,907
Other Current Liabilities	43,262		40,478
Non-Current Liabilities	19,410		11,137
Total Liabilities	175,410		191,217
Total Equity	58,806		56,398

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Financial Ratio Analysis

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% 2022/12/31 2021/12/31
Current Ratio 121.9% 115.3%
Debt Ratio 74.9% 77.2%
2022 2021
%
Year-to-Q4 Year-to-Q4
ROA 3.5% 2.8%
ROE 10.5% 10.4%
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Note1: ROA=[Net income (loss)+Interest expense×(1-Tax rate)]/Average total assets

Note2: ROE=Net income (loss)/Average shareholders' equity

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Shareholders' Meeting and Earning Distribution

◎ 2023/03/14 Board of Directors approves 2023 Annual Shareholders' Meeting Date of the shareholders' meeting : at 9:00 a.m., Tuesday, June 13, 2023 Location for convening the shareholders‘ meeting :

No.1, Sec. 4, Zhongshan N. Rd., Zhongshan District., Taipei City. (International Reception Room of Grand Hotel Taipei.)

• 2023/03/14 Board of Directors proposes Year 2022 Earnings Distribution Cash Dividend : NT$ 1.50 per share

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NT$ 2022 2021 2020
EPS 1.71 1.82 2.10
Cash Dividend 1.50 1.40 1.85
- - -
Stock Dividend
88% 77% 88%
Dividend Payout Ratio
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https://www.inventec.com

iec@inventec.com

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THANK YOU!

Questions and Answers

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