LTC — Interim / Quarterly Report 2021

Dec 14, 2021

3Q21 Earnings Conference LITEON Technology

October 18[th] , 2021

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SAFE HARBOR NOTICE

• LITEON Technology’s statement of its current expectations are forwardlooking 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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3Q21 RESULTS

In NT Millions	3Q21	QoQ YoY 2Q21 3Q20
	Amount %	Amount % % Amount % %
Net Sales	41,864 100.0	40,677 100.0 3 41,326 100.0 1
COGS	33,780 80.7	32,684 80.3 3 33,482 81.0 1
Gross Profit	8,084 19.3	7,994 19.7 1 7,844 19.0 3
Operating Expenses *	4,562 10.9	4,193 10.3 9 3,856 9.3 18
Operating Profit	3,522 8.4	3,801 9.3 -7 3,987 9.6 -12
Other Income/ Expense	351 0.8	1,314 3.2 -73 -75 -0.2 -
Profit Before Tax	3,872 9.2	5,115 12.6 -24 3,913 9.5 -1
Income Tax Expense	782 1.9	1,067 2.6 -27 900 2.2 -13
Non-Controlling Interests	10 0.0	14 0.0 -25 22 0.1 -52
Profit Attributable to Parent	3,080 7.4	4,034 9.9 -24 2,991 7.2 3
After Tax EPS Shares:(mm shares)	1.33 2,313	1.74 1.29 2,324 2,324

• The Group recognized the expected credit loss of NT$396 million mainly due to the credit risk of overdue receivables from the street light bid. The Group has taken legal measures based on the contracts and regulations. Excluding this, the Opex% was 10%, Operating Profit margin was 9.2%, and EPS was NT$1.45 in 3Q21.

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GPM HIT 3Q RECORD HIGHS

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NT$2.5 20%
19.3%
19.0%
15.8%
2.0 16.2% 16%
14.6%
12.9%
1.5 12%
12.3%
1.37 1.34 1.33
1.29
1.14
1.0 9.7% 8%
8.4%
6.3%
6.7%
0.71
6.2%
0.5 4.3% 4%
3.2%
-1.47
0.0 0%
3Q15 3Q16 3Q17 3Q18 3Q19 3Q20 3Q21
EPS GP% OP%
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• The Group recognized the expected credit loss of NT$396 million in 3Q21. Excluding this, the Operating Profit margin was 9.2%,

• 4 and EPS was NT$1.45, both hitting 3Q record high.

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Revenue Contribution b Se ment y g

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3Q21 3Q20
Opto-
Opto- electronics
electronics
19%
20%
Information
Information
Technology &
Technology &
Consumer
Consumer
Electronics
Electronics
55%
52% Cloud & AIoT Cloud & AIoT
28% 26%
Optoelectronics Product Solutions, Outdoor Lighting Solution and
Opto-electronics
Automotive Electronics
Datacenter, Server, Networking, AIoT, Smart Devices and Video
Cloud & AIoT
Intelligence Solutions
Information Technology NB, Tablets, DT, Gaming, Consumer Electronics and Multifunction
& Consumer Electronics Peripherals applications
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Stable Growth in Sales and Profit from Each Segment in 3Q21

Gross Profit Operating NT$Mln Sales YoY Sales % YoY Margin Range Profit * Opto-electronics 8,379 7% 20% 22%~32% 634 -43% Cloud & AIoT 11,918 13% 28% 15%~25% 963 24% Information Technology & 21,566 -6% 52% 12%~18% 2,358 -5% Consumer Electronics

• The Operating Profit declined YoY in Opto-electronics Segment due to the expected credit loss of NT$396 million in 3Q21.

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9M21 RESULTS

In NT Millions	9M21	YoY 9M20
	Amount %	Amount % %
Net Sales	120,259 100.0	115,698 100.0 4
COGS	97,464 81.0	95,023 82.1 3
Gross Profit	22,795 19.0	20,674 17.9 10
Operating Expenses Operating Profit Other Income/ Expense Profit Before Tax *	13,366 11.1 9,429 7.8 5,046 4.2 14,475 12.0	12,288 10.6 9 8,386 7.2 12 1,720 1.5 193 10,106 8.7 43
Income Tax Expense	3,061 2.5	2,324 2.0 32
Non-Controlling Interests	36 0.0	-226 -0.2 -
Profit Attributable to Parent After Tax EPS Shares:(mm shares)	11,377 9.5 4.90 2,320	8,008 6.9 42 3.45 2,324

• The Group recognized the expected credit loss of NT$396 million in 3Q21. The Group has taken legal measures based on the contracts and regulations. Excluding this, the Opex% was 10.8%, Operating Profit margin was 8.1%, and EPS was NT$5.02 in 9M21.

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Revenue Contribution b Se ment y g

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9M21 9M20
Opto- Opto-
electronics electronics
21% 18%

Information Information
Technology &
Technology &
Consumer
Consumer
Cloud & AIoT
Cloud & AIoT Electronics
Electronics
25%
27% 57%
52%
Optoelectronics Product Solutions, Outdoor Lighting Solution and
Opto-electronics
Automotive Electronics
Datacenter, Server, Networking, AIoT, Smart Devices and Video
Cloud & AIoT
Intelligence Solutions
Information Technology NB, Tablets, DT, Gaming, Consumer Electronics and Multifunction
& Consumer Electronics Peripherals applications
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*SSD has been transferred since 3Q20. Silitech has become an unconsolidated entity from 1Q21. Before then, they were inclusive of ITCE revenue.

P. 8

Stable Growth in Sales and Profit from Each Segment in 9M21

Gross Profit Operating NT$Mln Sales YoY Sales % YoY Margin Range Profit * Opto-electronics 24,961 19% 21% 22%~32% 2,772 5% Cloud & AIoT 32,389 10% 27% 15%~25% 2,107 19% Information Technology & 62,909 -4% 52% 12%~18% 5,841 -13% Consumer Electronics **

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• The Operating Profit declined YoY in Opto-electronics Segment due to the expected credit loss of NT$396 million in 3Q21. Excluding

• this, the Operating Profit was NT$317 million, up 20% YoY in 9M21.

• ** SSD has been transferred since 3Q20. Silitech has become an unconsolidated entity from 1Q21. Before then, they were inclusive of ITCE revenue. Excluding these, ITCE revenue was up 4% YoY in 9M21.

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Robust Balance Sheet

In NT millions	3Q21	2Q21 3Q20
	Amount %	Amount % Amount %
Cash & Equivalent	69,459 38%	65,612 37% 68,629 39%
Accounts Receivable	38,737 21%	36,448 21% 36,029 20%
Inventories	30,791 17%	28,646 16% 24,447 14%
Current Assets	144,513 80%	138,492 79% 140,747 80%
Total Assets	181,365 100%	175,149 100% 176,675 100%
Short Term Debt	31,349 17%	16,643 10% 26,438 15%
Accounts Payable	44,976 25%	42,477 24% 42,458 24%
Current Liabilities	108,779 60%	98,641 56% 100,351 57%
Equities	70,098 39%	74,291 42% 73,789 42%
Key Indices Current Ratio (x) Quick Ratio (x) Net Cash (NT Millions)	1.33 1.05 38,110	1.40 1.40 1.12 1.16 48,969 42,191

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LITEON ESG UPDATE
2020
Sustainability
Report
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LITEON Received The 2021 TSAA Sustainability Action GOLD Award For Its Unique Marine Waste Solution

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• Raising Ocean Awareness With A Special Beach Clan-up Model

• Design For SDG14: Green Talent Cultivation

• Rethinking Plastic: A Win-win Solution For Blue Circular Economy

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