LTC — Call Transcript 2022

Aug 11, 2022

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2Q22 Earnings Conference LITEON Technology July 19[th] , 2022

© LITE-ON Technology Corporation All rights reserved

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LITEON 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.

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© LITE-ON Technology Corporation All rights reserved

				QoQ YoY Amount % % Amount % % 41,230 100.0 4 40,677 100.0 6 34,163 82.9 0 32,684 80.3 5 7,067 17.1 24 7,994 19.7 10 4,086 9.9 8 4,193 10.3 5 2Q21 1Q22
	In NT Millions 2Q22
		2Q22
		Amount %
	Net Sales	42,957 100.0
	COGS	34,180 79.6
	Gross Profit	8,777 20.4
	Operating Expenses	4,407 10.3
© LITE-ON Technology Corporation All rights reserved Operating Profit 4,370 10.2 Other Income/ Expense 623 1.5 Profit Before Tax 4,993 11.6 Income Tax Expense 1,024 2.4 Non-Controlling Interests 10 0.0 Profit Attributable to Parent 3,960 9.2 After Tax EPS 1.74	Operating Profit	4,370 10.2		3 2,981 7.2 47 3,801 9.3 15 -324 -0.8 - 1,314 3.2 -53 2,657 6.4 88 5,115 12.6 -2 545 1.3 88 1,067 2.6 -4 8 0.0 13 14 0.0 -32 2,104 5.1 88 4,034 9.9 -2 0.92 1.74
	Other Income/ Expense	623 1.5
	Profit Before Tax	4,993 11.6
	Income Tax Expense	1,024 2.4
	Non-Controlling Interests	10 0.0
	Profit Attributable to Parent	3,960 9.2
		1.74

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NT$M50,000 25%
20.4%
19.8% 19.7%
19.4%
20%
19.0% 17.3%
45,000 17.8% 44,569
17.1%
16.2%
42,957
14.5% 41,796 41,864
41,326 41,436 41,230 15%
40,677
40,000
10.2%
9.7%
37,718 9.3% 9.4%
10%
8.7%
8.1%
7.2%
5.6%
35,000 4.4%
5%
32,576
≈ 2.3%
30,000 0%
0
1Q20 2Q20 * 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Revenue GP% OP%
© LITE-ON Technology Corporation All rights reservedSSD has been transferred at the end of 2Q20. 4
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			YoY nt % Amount % % 7 100.0 78,395 100.0 7 3 81.2 63,684 81.2 7 4 18.8 14,711 18.8 8 3 10.1 8,804 11.2 -4 22 1H21
	In NT Millions	1H	22
		Amou	nt %
	Net Sales	84,18	7 100.0
	COGS	68,34	3 81.2
	Gross Profit	15,84	4 18.8
	Operating Expense	8,49	3 10.1
© LITE-ON Technology Corporation All rights reserved Operating Profit 7,35 Other Income/ Expense 2 Profit Before Tax 7,65 Income Tax Expense 1,5 Non-Controlling Interests Profit Attributable to Parent 6,06 After Tax EPS 2.6
	Operating Profit	7,35	1 8.7
	Other Income/ Expense	2	99 0.4
	Profit Before Tax	7,65	0 9.1
	Income Tax Expense	1,5	68 1.9
	Non-Controlling Interests		18 0.0
	Profit Attributable to Parent	6,06	4 7.2
		2.6	6

	2Q22 Opto- electronics 20% Cloud & AIoT Information Technology & Consumer Electronics 47%	2Q22 Opto- electronics 20% Cloud & AIoT Information Technology & Consumer Electronics 47%	2Q21* Opto- electronics 21% Cloud & AIoT Information Technology & Consumer Electronics
© LITE-ON Technology Corporation All rights reserved Opto-electronics Optoelectronics Pr Outdoor Lighting S Cloud & AIoT Datacenter, Server, Intelligence Soluti Information Technology & Consumer Electronics NB, Tablets, DT, Ga Peripherals applica 33%	33%		6 oduct Solutions, Automotive Electronics and olution Networking, AIoT, Smart Devices and Video ons ming, Consumer Electronics and Multifunction tions 31% 48%
	Opto-electronics	Optoelectronics Pr Outdoor Lighting S	oduct Solutions, Automotive Electronics and olution
	Cloud & AIoT	Datacenter, Server, Intelligence Soluti	Networking, AIoT, Smart Devices and Video ons
	Information Technology & Consumer Electronics	NB, Tablets, DT, Ga Peripherals applica	ming, Consumer Electronics and Multifunction tions

NT$Mln Amount YoY Opto-electronics 8,741 4% Cloud & AIoT 14042 10% Revenue	NT$Mln Amount YoY Opto-electronics 8,741 4% Cloud & AIoT 14042 10% Revenue	% Gross Profit Margin Range	% Gross Profit Margin Range	Amount YoY 1,149 4% 1310 60% Operating Profit	Amount YoY 1,149 4% 1310 60% Operating Profit
	Opto-electronics 8,741 4% Cloud & AIoT 14042 10%	20% 33%	22%~32% 15%~26%		1,149 4% 1310 60%
© LITE-ON Technology Corporation All rights reserved , Information Technology & Consumer Electronics 20,174 4%	,				,
		47% 13%~18%

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25%
Revenue Growth in 2Q22 YoY Growth in 2Q22
NT$ Mn 25,000 20%
15%
20,000
10%
5%
15,000
0%
Opto- Automotive
semiconductor
Electronics
Photocoupler
10,000
20%
5,000 15%
10%
-
5%
0%
AIoT Cloud Computing
雲端及物聯網部門Cloud & AIoT 光電部門Opto-electronics
Power
© LITE-ON Technology Corporation All rights reserved 8
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			% Amount % Amount % % 68,517 37% 65,612 37% % 38,099 20% 36,448 21% % 31,307 17% 28,646 16% % 150,602 81% 138,492 79% 1Q22 2Q21
	In NT millions	2Q22
		Amount	%
	Cash & Equivalent	70,468 36	%
	Accounts Receivable	41,528 21	%
	Inventories	30,738 16	%
	Current Assets	157,965 82	%
© LITE-ON Technology	Short Term Debt	38,386 20	%
	Accounts Payable	42,340 22	%
	Current Liabilities	114,092 59	%
	Equities	76,151 39	%
	Key Indices Quick Ratio (x) Net Cash (NT Millions)	1.12 32,082
	Corporation All rights reserved

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• 2Q22 consolidated sales of NT$ 43 billion, up 4% QoQ, hitting second quarter record high in 3 consecutive years, despite the global supply chain and logistics being affected by the pandemic.

• GPM 20.4%, +3.3ppt QoQ, and OPM 10.2%, 2.9ppt QoQ, both hitting record and reaching the long-term profitability goal of GPM 20%/ OPM 10%

• Continuing profitable growth thanks to product mix optimization, flexible global manufacturing and procurement as well as operational resilience and efficiency

• Opto-electronics segment and Cloud & AIoT segment accounted for 53% of total revenue, higher than last quarter

• 1H22 consolidated sales of NT$ 84 billion, up 7% YoY, also hitting first half record high in 3 consecutive years

• GPM 18.8% and OPM 8.7%; OPM up 1.2ppt YoY, hitting first half record

• Gross profit up by 8% YoY and Operating profit up by 24%, achieving profitable growth

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© LITE-ON Technology Corporation All rights reserved

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• Stable profit and sales growth from core businesses is expect, under the assumption that the global supply chain and logistics getting stable

• Key growth drivers: Cloud computing, Automotive electronics, and Opto semiconductor IR products for green energy and industrial automation.

• ITCE sustainable growth thanks to product-mix, supply chain management and customer relations continuously improvement

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© LITE-ON Technology Corporation All rights reserved

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14 Years Of Continued Commitment To ESG Transparency

TCFD

Enhancing The Climate Risk Assessment

• Further enhanced the information disclosure of TCFD (Task Force on Climate-related Financial Disclosures)

• 8 climate opportunities and 10 climate risks clearly identified

• Systematically improved operational resilience and pre-built the capacity to cope with climate change

SASB

Demonstrating Comprehensive ESG Management

• Voluntarily disclosed according to the SASB (Sustainability Accounting Standards Board) metrics

• Provided a clearer look at LITEON’s ESG management and initiatives, including product safety, employee diversity and inclusion, product life cycle, supply chain management, material procurement, and other aspects.

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© LITE-ON Technology Corporation All rights reserved

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光電節能環境永續

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https://www.liteon.com/en-us liteontech.ir@liteon.com

®

© LITE-ON Technology Corporation All rights reserved