LTC — Interim / Quarterly Report 2020

Dec 9, 2020

3Q20 Earnings Conference 2006 IR Strategy

October 30[th] , 2020

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.

LITEON continuous efforts in ESG to achieve sustainability

Recognized by indicative organizations

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• Corporate Sustainability Committee reporting to BOD

• Thorough information security and privacy management

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• On ‘A list’ in 2019 CDP

• Ranked Top 5% in TWSE 2020 Corporate Governance evaluation

• Environmental targets approved by SBTi

• Greenhouse Gas Emissions ▼18%

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Environ
-ment
Govern-
ance
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• Waste generation ▼15%

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• Renewable energy usage ratio 13%

• Product green design

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• In compliance with Responsible Business Alliance (RBA) code of

• Social conduct in employee, health, safety and business ethics

• Year 2019 Result comparing the base year

Please visit our website for further info: http://www.liteon.com/en-us/globalcitizenship/365

3Q20 Results

In NT Millions	3Q20	QoQ YoY 2Q20 3Q19
	Amount %	Amount % % Amount % %
Net Sales	41,326 100.0	41,796 100.0 -1 48,158 100.0 -14
COGS	33,482 81.0	33,682 80.6 -1 40,368 83.8 -17
Gross Profit	7,844 19.0	8,114 19.4 -3 7,790 16.2 1
Operating Expense	3,856 9.3	4,467 10.7 -14 4,543 9.4 -15
Operating Profit	3,987 9.6	3,646 8.7 9 3,247 6.7 23
Other Income/ Expense	-75 -0.2	834 2.0 - 866 1.8 -
Profit Before Tax	3,913 9.5	4,481 10.7 -13 4,113 8.5 -5
Income Tax Expense	900 2.2	1,030 2.5 -13 987 2.1 -9
Non-Controlling Interest	22 0.1	6 0.0 279 17 0.0 26
Profit Attributable to Parent	2,991 7.2	3,445 8.2 -13 3,109 6.5 -4
After Tax EPS 1.29 1.48 1.34 Shares (mm shares) 2,324 2,324 2,324	1.29

9M20 Results

20 Results
In NT Millions	9M20	YoY 9M19
	Amount %	Amount % %
Net Sales	115,698 100.0	133,799 100.0 -14
COGS	95,023 82.1	113,603 84.9 -16
Gross Profit	20,674 17.9	20,196 15.1 2
Operating Expense Operating Profit	12,288 10.6 8,386 7.2	13,422 10.0 -8 6,775 5.1 24 2,412 1.8 -29 9,187 6.9 10 2,206 1.6 5 13 0.0 -
Other Income/ Expense	1,720 1.5
Profit Before Tax	10,106 8.7 2,324 2.0 -226 -0.2
Income Tax Expense
Non-Controlling Interest
Profit Attributable to Parent	8,008 6.9	6,968 5.2 15
After Tax EPS 3.45 3.00 Shares (mm shares) 2,324 2,324	3.45

Other Incomes/ Other Expenses

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In NT$ Millions 3Q20 9M20
Net Interest 269 846
268 899
FX

Others -612 -25
Total OIOE -75 1,720
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• In accordance with IAS 36 and periodic asset impairment tests, LITEON has

• recognized the goodwill impairment of ~NT$700 mn at ODD (optical disc drives) business after evaluating its current conditions and future prospects of the global ODD market in Sep. 2020.

It would cause no impact to cashflow and further strengthen a robust balance sheet and the corporate governance.

Revenue Contribution by Segment

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3Q20 2Q20
Others
Others
3%
4% Opto-
Opto- electronics
electronics
18%
20%
Information &
Information &
Communication
Communication
Technologies
Technologies
79%
76%
LED Components & Lighting Products, Camera Modules and
Opto-electronics
Automotive Electronics
Information & Communication Products used in Server, Networking Devices, NB, Tablets, DT, 5G, AIoT,
Technologies Optical Disk Drives, and Multifunction Peripheral
Others Other products not yet reaching quantitative thresholds
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• Note: SSD has been transferred since 3Q20, before then, it was inclusive of ICT revenue.

Revenue by Segment

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In NT Millions
Revenue By Segment 3Q20 2Q20 QoQ
Opto-electronics 8,272 7,278 14%

Information & Communication
31,487 33,128 -5%
Technologies
Others 1,566 1,391 13%
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• Note: SSD has been transferred since 3Q20, before then, it was inclusive of ICT revenue.

Operating Profit by Segment

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In NT Millions
OP by Segment 3Q20 2Q20 QoQ
Opto-electronics 1,161 994 17%

Information & Communication
3,204 3,308 -3%
Technologies
-
Others 31 (382)
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• Note: SSD has been transferred since 3Q20, before then, it was inclusive of ICT operating profit.

Balance Sheet

In NT millions	3Q20	2Q20 2Q19
	Amount %	Amount % Amount %
Cash & Equivalent	68,629 39%	66,381 37% 64,489 34%
Accounts Receivable	36,029 20%	34,448 19% 44,590 23%
Inventories	24,447 14%	23,360 13% 25,013 13%
Current Assets	140,747 80%	139,831 78% 149,814 78%
Total Assets	176,675 100%	178,895 100% 191,131 100%
Short Term Debt	26,438 15%	30,242 17% 30,887 16%
Accounts Payable	42,458 24%	36,859 21% 46,831 25%
Current Liabilities	100,351 57%	105,855 59% 115,763 61%
Long Term Debt	0 0%	0 0% 0 0%
Total Liabilities	102,885 58%	108,295 61% 118,340 62%
Equities 73,789 42% 70,601 39% 72,791 38% Key Indices Current Ratio (x) 1.40 1.32 1.29 Quick Ratio (x) 1.16 1.11 1.08 Net Cash (NT Millions) 42,191 36,139 33,601	73,789 42%

Thank You!