LTC — Interim / Quarterly Report 2020

Mar 29, 2021

4Q20 Earnings Conference 2006 IR Strategy

February 25[th] , 2021

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 and have been audited by an independent certified public accountant.

4Q20 Results

In NT Millions	4Q20	QoQ YoY 3Q20 4Q19
	Amount %	Amount % % Amount % %
Net Sales	41,436 100.0	41,326 100.0 0 44,155 100.0 -6
COGS Gross Profit Operating Expense Operating Profit	34,726 83.8 6,709 16.2 4,889 11.8 1,820 4.4 676 1.6 *	33,482 81.0 4 37,014 83.8 -6 7,844 19.0 -14 7,141 16.2 -6 3,856 9.3 27 4,571 10.4 7 3,987 9.6 -54 2,571 5.8 -29 -75 -0.2 - 607 1.4 11
Other Income/ Expense
Profit Before Tax	2,496 6.0	3,913 9.5 -36 3,177 7.2 -21
Income Tax Expense	449 1.1	900 2.2 -50 752 1.7 -40
Non-Controlling Interest	40 0.1	22 0.1 82 18 0.0 121
Profit Attributable to Parent	2,008 4.8	2,991 7.2 -33 2,407 5.5 -17
After Tax EPS Shares (mm shares)	0.86 2,324	1.29 1.03 2,324 2,324

• The Group recognized the lifetime expected credit impairment loss amounting to NT$905 million mainly due to the credit risk of partial other receivables NT$1,500 million from the disposal of Mobile Mechanics Business in 2018. The Group has taken legal measures based on the contracts and regulations to protect The Group and shareholders’ interests.

2020 Results

0 Results
In NT Millions	2020	YoY 2019
	Amount %	Amount % %
Net Sales	157,134 100.0	177,954 100.0 -12
COGS	129,750 82.6	150,617 84.6 -14
Gross Profit	27,384 17.4	27,338 15.4 0
Operating Expense Operating Profit	17,178 10.9 10,206 6.5	17,992 10.1 -5 9,345 5.3 9 3,019 1.7 -21 12,364 6.9 2 2,958 1.7 -6 31 0.0 -
Other Income/ Expense	2,396 1.5
Profit Before Tax	12,602 8.0 2,773 1.8 -187 -0.1
Income Tax Expense
Non-Controlling Interest
Profit Attributable to Parent	10,016 6.4	9,375 5.3 7
After Tax EPS Shares (mm shares)	4.31 2,324	4.03 2,324

Revenue Contribution by Segment

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4Q20 4Q19
Others
Others
4%
4% Opto-
Opto-
electronics
electronics
18%
20%
Information &
Information &
Communication
Communication
Technologies
Technologies
78%
76%

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Opto-electronics	LED Components & Lighting Products, Camera Modules and Automotive Electronics
Information & Communication Technologies	Products used in Server, Networking Devices, NB, Tablets, DT, 5G, AIoT, and Multifunction Peripheral, and Optical Disk Drives
Others	Other products not yet reaching quantitative thresholds

• SSD has been transferred since 3Q20, before then, it was inclusive of ICT revenue.

Revenue by Segment

In NT Millions	In NT Millions	In NT Millions
Revenue By Segment	4Q20	4Q19 YoY
Opto-electronics	8,279	7,842 6%
Information & Communication Technologies	31,507	34,617 -9% *
Others	1,650	1,696 -3%

• SSD has been transferred since 3Q20, before then, it was inclusive of ICT revenue.

Operating Profit by Segment

In NT Millions	In NT Millions	In NT Millions
OP by Segment	4Q20	4Q19 YoY
Opto-electronics	818	624 31%
Information & Communication Technologies	2,226	2,412 -8% *
Others	(833)	(102) -

• SSD has been transferred since 3Q20, before then, it was inclusive of ICT revenue.

Robust Balance Sheet

In NT millions	4Q20	3Q20 4Q19
	Amount %	Amount % Amount %
Cash & Equivalent	71,508 41%	68,629 39% 67,639 36%
Accounts Receivable	35,990 20%	36,029 20% 38,079 20%
Inventories	24,669 14%	24,447 14% 23,647 13%
Current Assets	140,584 80%	140,747 80% 146,853 79%
Intangible Assets *	4,841 3%	5,184 3% 5,948 3%
Total Assets	176,067 100%	176,675 100% 186,633 100%
Short Term Debt	24,892 14%	26,438 15% 30,434 16%
Accounts Payable	42,622 24%	42,458 24% 44,304 24%
Current Liabilities	99,599 57%	100,351 57% 109,398 59%
Long Term Debt	0 0%	0 0% 0 0%
Total Liabilities	101,926 58%	102,885 58% 111,991 60%
Equities	74,142 42%	73,789 42% 74,641 40%
Key Indices Current Ratio (x) 1.41 1.40 1.34 Quick Ratio (x) 1.16 1.17 1.13 Net Cash (NT Millions) 46,616 42,191 37,205

• Intangible Assets of NT$4.8 billion on December 31, 2020, decreased by NT$1.1 billion YoY. The Group evaluates assets with conservatism principle in accordance with the IFRS.

Strong Commitment to Shareholders’ Value

• BOD approved its 2020 NT$3.4 cash dividend per share, a record DPS, with payout ratio of 79%, attributable to the improvement of LITEON’s profitability.

• LITEON is committed to maintaining a generous and stable cash dividend.

Historical Dividend Per Share

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NTD 3.5
3.0
2.5
2.0
≈
0
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0
					*
NTD	2014	2015	2016	2017		2018	2019	2020
EPS	2.8	3.11	4.05	1.13		3.42	4.03	4.31
DPS	2.02	2.24	2.92	2.92		2.92	3.2	3.4
Payout Ratio	72 %	72 %	72 %	258 %		85%	79%	79%

• 2017 NT$2.92 cash dividend per share including NT$0.41 and NT$2.51 from retained earnings and additional paid-in capital respectively.

Business Re-Segmentation from 2021

Opto-electronics	Optoelectronics Product Solutions, Outdoor Lighting Solution and Automotive Electronics
Information Technology & Intelligent Peripherals	NB, Tablets, DT, Gaming, Consumer Electronics and Multifunction Peripherals applications
Cloud & AIoT	Datacenter, Server, Networking, AIoT, Smart Devices and Video Intelligence Solutions

Note: Silitech has become an unconsolidated entity from 1Q21.

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 with the base year

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

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