LTC — Call Transcript 2020

Aug 18, 2020

2Q20 Earnings Conference 2006 IR Strategy

July 30[th] , 2020

Safe Harbor Notice

• LITE-ON Technology’s statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements.

• The numbers of the presentation are prepared under IFRS.

2Q20 Results

In NT Millions	2Q20	QoQ YoY 1Q20 2Q19
	Amount %	Amount % % Amount % %
Net Sales	41,796 100.0	32,576 100.0 28 44,468 100.0 -6
COGS	33,682 80.6	27,859 85.5 21 37,469 84.3 -10
Gross Profit	8,114 19.4	4,717 14.5 72 7,000 15.7 16
Operating Expense	4,467 10.7	3,965 12.2 13 4,627 10.4 -3
Operating Profit	3,646 8.7	752 2.3 385 2,373 5.3 54
Other Income/ Expense	834 2.0	960 2.9 -13 764 1.7 9
Profit Before Tax	4,481 10.7	1,713 5.3 162 3,137 7.1 43
Income Tax Expense	1,030 2.5	394 1.2 162 754 1.7 37
Non-Controlling Interest	6 0.0	-254 -0.8 - -12 0.0 - 1,572 4.8 119 2,394 5.4 44
Profit Attributable to Parent	3,445 8.2
After Tax EPS Shares (mm shares)	1.48 2,324	0.68 1.03 2,324 2,324

1H20 Results

0 Results
In NT Millions	1H20	YoY 1H19
	Amount %	Amount % %
Net Sales	74,372 100.0	85,641 100.0 -13
COGS	61,541 82.7	73,235 85.5 -16
Gross Profit	12,831 17.3	12,406 14.5 3
Operating Expense	8,432 11.3	8,879 10.4 -5
Operating Profit	4,399 5.9	3,527 4.1 25
Other Income/ Expense	1,795 2.4	1,546 1.8 16
Profit Before Tax	6,193 8.3	5,074 5.9 22
Income Tax Expense	1,424 1.9	1,219 1.4 17
Non-Controlling Interest	-248 -0.3	-5 0.0 -
Profit Attributable to Parent	5,017 6.7	3,859 4.5 30
After Tax EPS Shares (mm shares)	2.16 2,324	1.66 2,324

Other Incomes/ Other Expenses

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In NT$ Millions 2Q20 1H20
Net Interest 297 577
303 631
FX
Others 234 587
Total OIOE 834 1,795
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Revenue Contribution by Segment

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2Q20 1Q20
Others
Others
4%
5%
Storage Opto- Opto-
11% electronics Storage electronics
11%
17% 19%
Information Information
Technologies Technologies
68% 65%
LED Components & Lighting Products, Camera Modules and
Opto-electronics
Automotive Electronics
Products used in Server, Networking Devices, NB, Tablets, DT and
Information Technologies
Multifunction Peripheral
Storage Optical Disk Drives and Solid State Drives
Others Other products not yet reaching quantitative thresholds
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Revenue by Segment

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In NT Millions
Revenue By Segment 2Q20 1Q20 QoQ
Opto-electronics 6,998 6,272 12%
Information Technologies 28,504 21,208 34%
Storage 4,623 3,375 37%
Others 1,671 1,721 -3%
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Operating Profit by Segment

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In NT Millions
OP by Segment 2Q20 1Q20 QoQ
Opto-electronics 1,038 614 69%
Information Technologies 2,918 936 212%
-
Storage 389 (61)
Others (426) (194) -120%
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Revenue Contribution by Segment

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1H20 1H19
Others
Others
4%
5%
Opto- Opto-
Storage
11% electronics Storage electronics
18% 14% 16%
Information
Information
Technologies
Technologies
67%
65%
LED Components & Lighting Products, Camera Modules and
Opto-electronics
Automotive Electronics
Products used in Server, Networking Devices, NB, Tablets, DT and
Information Technologies
Multifunction Peripheral
Storage Optical Disk Drives and Solid State Drives
Others Other products not yet reaching quantitative thresholds
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Revenue by Segment

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In NT Millions
Revenue By Segment 1H20 1H19 YoY
Opto-electronics 13,270 13,634 -3%
Information Technologies 49,712 56,100 -11%
Storage 7,998 11,593 -31%
Others 3,391 4,315 -21%
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Operating Profit by Segment

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In NT Millions
OP by Segment 1H20 1H19 YoY
Opto-electronics 1,652 519 218%
Information Technologies 3,854 3,534 9%
Storage 328 514 -36%
Others (620) (330) -88%
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Balance Sheet

In NT millions	2Q20	1Q20 2Q19
	Amount %	Amount % Amount %
Cash & Equivalent	66,381 37%	72,491 41% 65,796 35%
Accounts Receivable	34,448 19%	27,622 16% 41,068 22%
Inventories	23,360 13%	21,269 12% 25,415 13%
Current Assets	139,831 78%	135,928 78% 148,175 78%
Total Assets	178,895 100%	175,124 100% 190,204 100%
Short Term Debt	30,242 17%	31,946 18% 28,997 15%
Accounts Payable	36,859 21%	35,615 20% 40,853 21%
Current Liabilities	105,855 59%	105,007 60% 114,977 60%
Long Term Debt	0 0%	0 0% 0 0%
Total Liabilities	108,295 61%	107,348 61% 117,591 62%
Equities 70,601 39% 67,776 39% 72,613 38% Key Indices Current Ratio (x) 1.32 1.29 1.29 Quick Ratio (x) 1.10 1.10 1.07 Net Cash (NT Millions) 36,139 40,545 36,799	70,601 39%

Business Re-Segmentation from 3Q20

Current

Current
Opto-electronics	LED Components & Lighting Products, Camera Modules and Automotive Electronics
Information Technologies	Products used in Server, Networking Devices, NB, Tablets, DT and Multifunction Peripheral
Storage	Optical Disk Drives and Solid State Drives
Others	Other products not yet reaching quantitative thresholds

From 3Q 2020

From 3Q 2020
Opto-electronics	LED Components & Lighting Products, Camera Modules and Automotive Electronics
Information &Communication Technologies	Products used in Server, Networking Devices, NB, Tablets, DT,5G, AIoT, Optical Disk Drivesand Multifunction Peripheral,
Others	Other products not yet reaching quantitative thresholds

Thank You!