LTC — Call Transcript 2024

Aug 9, 2024

2Q24 Earnings Conference LITEON Technology 2 0 2 4 / 0 7 / 3 1

法說會議程

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• Host, 2Q24 Results Julia Wang, IR Senior Director

• Operation Plan and Growth Strategy Anson Chiu, President

• Q&A

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Safe Harbor Notice

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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Information
Opto- Cloud & Technology &
electronics AIoT Consumer
Electronics
Opto-semiconductors, Datacenter, Server, NB, Workstations,
Automotive Electronics, Networking, AIoT, Tablets, DT,
Intelligent Transportation Smart Devices,
Gaming,
Lighting Solutions Video Intelligence
Consumer Electronics
Solutions
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Core Business & Profit expansion by high value business since 2021

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NT$ Mn

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NT$ Mn 1H24 Product Mix
300,000 25.0%
22.0%
22%
19.2% 21.3%
250,000
18.5% 20.0%
42% 58%
$62,061
200,000 NT$mn
164,828 173,456 15.0%
148,333
150,000
36%
9.8%
7.9% 8.7% 10.0%
8.9%
100,000
62,061
Revenue
5.0%
1H21 Product Mix
50,000 GP%
OP%
- 0.0% 21%

2021 2022 2023 1H 2024
Excludes Image department business 49% $78,395
51%
NT$mn
Discontinued some consumer and OEM products
30%
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51%
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2Q24 & 1H24 Executive Summary

【 2Q24 】

• 2Q24 consolidated sales reached NT$33.3 billion. Gross Margin and Operating Margin reached 22.2% and 9.9%, up 1.9 ppt and 2.1 ppt QoQ respectively, attributable to synergies of enhanced high-value business, product-mix optimization, implementation of AI and digitalized operational management.

• RD expense accounted for 5.5% of 2Q sales, up nearly 10% QoQ, reflecting steady investment in cloud, opto-electronics, 5G and new business.

• 2Q Net profits reached NT$3.1 billion and EPS of NT$1.36, up 30% QoQ.

【 1H24 】

• 1H24 consolidated sales reached NT$62.1 billion; Gross margin and Operating margin were 21.3% and 8.9%; EPS of NT$2.4.

• BOD approved the cash dividend of NT2 per share in the second quarter of 2024.

【 Core businesses 】

• Power Management in Cloud computing grew over 10% YoY, benefited from model upgrade on AI server and cloud computing products.

• Product-mix optimization in IT&CE , coupled with increased shipments of high-end power supplies and intelligent input peripherals.

• Core application in Opto-electronics enhanced continuously, including automotive lighting and Infrared sensing applications.

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© LITE-ON Technology Corporation. All Rights Reserved.

Operation Plan and Growth Strategy

Growth strategy and milestones

• The lean focus initiative is complete, with resources now direct towards R&D to pioneer new avenues. The emphasis is on sectors with substantial growth potential and high entry barriers, including green data centers, clean mobility, and efficient infrastructure within the IoE domain.

• By introducing new business to increase profits and reinvesting in R&D, we create a positive cycle. As a result, our business territory expands, leading to stable profit growth.

• Our strategic investment targets highly complementary our products and tracks, aiming to enhance business scale, systematically integrate products and technologies, strengthen intellectual property rights, and create transformative synergies.

• Operating performance of three business segments is expected to grow compared to 2Q, mainly driven by stronger shipments in high-value core business, such as cloud computing power solutions, optoelectronic semiconductors, as well as the high-end power supplies for IT applications, and smart input peripherals.

• Development of new clients and products for cloud power solutions and liquid cooling systems is well on schedule.

• Opto-Semiconductor will deliver sequential growth, with the focus on high-end applications of AI machine vision, automotive lighting and sensing, as well as industrial and renewable energy.

• Solid demand for high-end IT products, including IT power supplies, Mini LED backlit keyboards, driven by AI PCs. Meanwhile, shipments of power supplies for LEO satellites, industrial and game consoles are increasing.

Outlook for 2024

• The high-value engines are expected to expand, resulting in the sequential revenue growth, coupled with the profit and operational optimization.

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LEOTEK Acquires Traffic Business from LED Giant Dialight

Leading Traffic Signal Provider in the Americas

Driving Digital & Sustainable Transformation

New Strategic Layout in Intelligent Transportation

• With this acquisition, LEOTEK has elevated its traffic signal services to a global leadership position, marking a significant step in AI-driven traffic innovation.

• By combining field expertise and developing an AI management platform, LEOTEK aims to enhance urban traffic automation, ensuring safety and operational efficiency.

In pursuit of urban carbon reduction, LEOTEK is investing in traffic infrastructure and management. By integrating intelligent traffic surveillance and EV charging solutions, the company is creating an intelligent service network for autonomous vehicles, promoting safe and eco-friendly transportation.

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• LEOTEK, a subsidiary of LITEON, based in Silicon Valley, is a leading provider of AI traffic maintenance services in North America, serving over 30 countries and thousands of entities.

• Dialight, a global leader in LED industrial lighting listed on the London Stock Exchange (LSE: DIA.L), focuses on aerospace and rugged LED products.

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光電節能 環境永續 Empowering A Green Future https://www.liteon.com/en-us liteontech.ir@liteon.com