LTC — Call Transcript 2025

Feb 26, 2025

Powering a Bright and Sustainable Future Together 永續共好．光耀未來

4Q24 Earnings Conference LITEON Technology

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法說會議程

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• Host, 4Q24 Results Julia Wang, IR Senior Director

• Operation Plan and Growth Strategy Anson Chiu, President

• Q&A

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

2024 Product Mix

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300,000 25.0%
20%
22.0%
21.6%
250,000 18.5% 19.2% 20.0% 43% 57%
$137,134
NT$mn
200,000
173,456
164,828 15.0%
37%
148,333
150,000 137,134
9.8% 9.4%
8.7%
10.0%
7.9%
Revenue
100,000
GP%
5.0% OP% 2021 Product Mix
50,000
20%
- 0.0%

2021 2022 2023 2024
不含影像事業部Excludes Image department business 49% $164,828
51%
NT$mn
停產部分消費性及代工產品Discontinued some consumer and OEM products
31%
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Enhanced ROIC yearly for future investment strategy

Increase of ROIC

• Higher proportion from high growth & high value business

• Aggressive working capital management

• Continuous improvement of invested capital and operational efficiency

Investment strategy for top-line growth, margin expansion and global footprint :

• Global footprint and flexible manufacturing capabilities

• Business continuity in global operations

• Strategic investments for profitable growth

AVG 35%

• ROIC: Operating Profit after tax / Average [Net Working Capital + Net PP&E + Right-of-use Assets + Intangible Assets]

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4Q24 & 2024 Executive Summary

【 4Q24 】 :

• Q4 consolidated sales of NT$38.3 billion, up 4% yoy, attributable to more than 20% yearly growth from Cloud&AIoT, driving overall revenue to a positive yearly growth.

• Gross Profit and Operating Profit increased slightly year-on-year. Gross Profit and Operating Profit were 21.3% and 9.1% respectively.

• RD expenses accounted for 5.1% of Q4 sales, reflecting steady investment in cloud, opto-electronics, 5G and new business.

• Q4 Net profits reached NT$3.05 billion and EPS of NT$1.33.

【2024】:

• 2024 consolidated sales reached 137.1 billion; Gross Profit and Operating Profit were 21.6% and 9.4%; EPS of NT$5.21.

• ，

• ROIC reached 49% focusing on long-term growth and strategic investments in the future.

【 Core Business】

• Thanks to model upgrade on AI server and increased shipments, high-end power solutions in cloud computing delivered yearly growth.

• Portfolio optimization in IT&CE, coupled with higher shipments of LEO satellite power supplies and intelligent input peripherals.

• Core application in Opto-electronics enhanced continuously, mainly from visible Mini LED and invisible LED.

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Dividend policy

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• BOD approved the fourth quarter of 2024 cash dividend of NT$2.5 per share.

• Including the NT$2 cash dividend per share in the first half of 2024, the cash dividend of 2024 FY reaches NT$4.5 per share.

• LITEON’s dividend policy will be flexible, considering financial, business and operational plans.

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CEO of AIG Taiwan VP of AIG APAC Chief Advisor at Rockgroup Independent Board Director of Hotai Singapore Chartered Accountant

Profound expertise in multinational financial management Specialized in corporate finance, investment, actuarial science, M&A, risk and stakeholder management

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© LITE-ON Technology Corporation. All Rights Reserved.

Operation Plan and Growth Strategy

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Growth strategy and milestones

• With new generation of AI server, growth mainly comes from high-end power shelves over 33kW and BBU, the power solutions in cloud computing. At 2025 GTC, we will reveal customer’s high-performance computing, power solutions and system integration.

• At 2025 MWC, the latest 5G private network small cells will be displayed thanks to the collaboration with leading customer to combine AI image recognition and advanced network communications. We also partner with 8 Japanese telecom companies to complete the deployment of private network applications.

• Enhance high-value automotive electronic by integrating optical, imaging, and energy management core capabilities. Provide integrated solutions for interior and exterior LED lighting, sensing and autonomous driving system image recognition, as well as energy management systems for EV charging stations, laying the core foundation for smart grids.

• Accelerate global expansion, diversify manufacturing sites, and provide an efficient local operational network and product services to global customers, enhancing operational resilience.

Outlook for 1Q25

• Yearly growth from core business, mainly driven by accelerated shipments of high-end cloud computing and opto-semiconductors.

• In cloud computing, the shipment momentum of new generation AI server power solution has increased, and expansion with customers is well on schedule.

• Opto-semiconductors will deliver sequential growth, focusing on high-end machine vision as well as industry and renewable energy in photo-couplers.

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Powering a Bright and Sustainable Future Together

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