LTC — Investor Presentation 2025

Mar 3, 2025

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

LITEON Technology IR Presentation M a r c h 2 0 2 5

Strategic Transformation since 2018

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1975 LITEON Electronics was established and initiated its first LED production with NT$1M paid-in capital
1983 LITEON Electronics went public as the first technology firm listed on Taiwan Stock Exchange
2002 LITEON Technology, LITE-ON Electronics, Silitek and GVC merged to become LITEON Technology Corp.
2008 Disposing of the Display BU to Wistron, focusing as a component powerhouse.
2011~ Selected as the member of DJSI for 9 years in a row
2013 LITEON Technology finished the cash tender offer for LOIT
Consolidating subsidiaries to become One LITEON (9-in-1)
2014~
Selected in Constituent MSCI ESG Leaders Indexes for 7 years in a row
Selected in 2018 Thomson Reuters TOP 100 Global Tech Leaders
2018
Disposing of the handset Camera Module and Mobile Mechanical Business to LuxVisions Innovation
2019 Limited and Zhejiang Firstar Panel Technology respectively
Selected as top 5% listed companies of the 5 [th] Corporate Governance Evaluation by Taiwan Stock Exchange
2020 Certified as a constituent company in the FTSE4Good Taiwan Index Plus (TIP) Taiwan ESG Index for 2 years in a row
Disposing of the SSD Business to KIOXIA Corporation
2021 Silitech became an unconsolidated entity
2022 Disposing of the Image department’s business (MFP), which is fully unconsolidated in our 2023 results
2024 Strategic investment to acquire a ~20% stake in COSEL, a leading Japanese industrial power supply player
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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

Increased ROIC for years

• 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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LITEON AI Server Power Management & Liquid Cooling Solution

6

System Integrator Leader in Cloud Infrastructure Power and Rack-Level Cooling Solution

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Enterprise
Server/Storage/Switch/Networking
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• Enterprise Datacenter Server/Storage/Switch/Networking 4 3

• 1

• 1 PSU & • Power Density > 100W/in3 2

• • Efficiency > 97.5%

• Power Shelf • Proven & Established Market Position : >3kW products and tier-1 customers

• 2 BBU • Full-power backup >3 minutes during AC power loss 4 •

• 3 Cooling Entire liquid cooling solution , rack level • 1 ORv3 compatible

• • BBU backup

• • Multiplex controller module , MCU-based controller

• • Pump redundant

• 4 Enclosure • 3

• 4 Enclosure • Global Top Vendors with completed product line : & Rack products covers from rack and mechanical modules.

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LITEON empowers next-gen AI servers with advanced power solution

Server power architecture evolution from 2023 – 2026

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2023 2026
Separate from IT rack
Power Rack
In-rack
Power Rack
Power Shelf Power Shelf
BBU Shelf
In-server
Supercapa-
citor Shelf
Embedded
• •
Power shelf 33KW - 72kW Power Rack 500kW - 1MW
Power
• •
50V HVDC Out +/- 400V
•
PSU 3.2KW - 5.5KW
Architectural change Architectural change
from 12V to 50V
PSUs relocated from servers to Power moved out of IT rack
centralized power shelf
Key driver
Key driver
Data centers' continued demand for
Server power consumption higher wattage, high power, and high
increases driven by AI applications density servers
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LITEON Rack-level solutions encompass five core capabilities - power supply, liquid cooling, mechanism, software and system integration

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Cooling Solution
Canister
Bus Bar
Manifold
Rack
AC Whip
PSU Shelf * 4
AI Server Rack Cold Plate
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LITEON’s core thermal technology in the full-range solutions

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Immersion

Liquid to Air

Liquid to Liquid

Cooling 150KW-300KW Capacity

100KW-150KW

600KW-1.3MW

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LITEON's four key advantages of the comprehensive liquid cooling solutions for datacenters

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Accurate and reliable fully active digital control with MCU

Exclusive patented technology - active cooling management based on load

Integration of power supply, liquid cooling, mechanism, software, and system integration solutions

Fast global manufacturing and deployment capabilities

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Opto-semiconductors:

~50yr Experience/ Global Customer Base/ Product Leading Position

Consumer Electronics Mobile & Wearable Device Power Products

Industrial Automation

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Advanced multi color LED, LED display, and graphic display

#1

LED Display SMD LED Visible LED

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Smartphone and wearable device optical sensors and IR LED

#3

Multiple LED, Optical Sensors Proximity & Ambient Light Sensors IR LED

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Global #1 photocoupler shipments #1

General Purpose Photocouplers IR LED (Photocoupler)

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Industrial and IoT IR sensing components

#2

High Power IR LED

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IR LED
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Announcement on the strategic investment and alliance

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Strategic Investment in COSEL

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+

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• Investment amount: NTD 2.53 billion

• Purchase shares: 8,221k

• Shareholding: 19.99%[1]

• Board seats: rights of nomination and suggestion for one director and one independent director respectively.

• Valuation: P/E 9.14x[2]

Note 1: Calculation excludes treasury shares. Note 2. Based on COSEL’s EPS in the last 4 quarters (FY22Q4, FY23Q1-Q3). FY2022 means 2022/5 - 2023/5, FY2023 means 2023/5-2024/5

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Unlock the global power supply solution by strategic partnership

Accelerates mutual growth in niche power markets

Enhances ability to capture TAM together

Solid Financial opportunity

• Synergies from advanced AC/DC power supply and DC/DC converter are pivotal in power supply markets, enhancing business capabilities through overseas distributions and sales channels.

• COSEL stands out as a robust partner for LITEON in global power supply solutions, possessing a leading market position in the industrial SPS, a sound financial structure, and sustained profitability.

• Strategic cooperation in product development, manufacturing, geographic footprint, market expansion and leading technology

• Engaging new markets in industrial, semi-conductor equipment, medical, networking, transportation and renewable energy sectors, with a total addressable market (TAM) of NTD 400 billion.

• Increase profitable growth in power supply solution profile

• Substantial operating efficiencies

• Expected to be accretive to Operating Profit and Investment Income.

• COSEL financial performance in 3 years

Unit: JPY bn	FY2021	FY2022	FY2023
Sales	28.1	35.3	41.4
GPM	28.3%	30.1%	33.2%
OPM	10.0%	14.0%	16.7%
NI	1.9	3.2	5.2

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Automotive Electricity and ADAS Solutions

ADAS

• Around View Camera

• • Rear View Camera • Front Sensing Camera

• • Head-up Display

• • AI Imagine Algorithm

DMS

• Driver Monitor Camera

• • AI Imagine Algorithm

• • Infrared LED

• Interior LED Lighting

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• Ambient light

• • LED Traction Battery Pack

• Exterior LED •

• Lighting Optocoupler

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• DRL Light

• • Front Light

• • Rear Light

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• Side Lighting

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EV Charger
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• Travel Cord

• • AC L2 Charger

• • DC Fast Charger

• • Wireless Charger

• • Optocoupler

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Full range products of EV Fast Chargers – 30kW & 60kW

Key features & benefits

Leveraging LITEON’s core power module technology (dual inputs, 97% efficiency, 1M+ hrs. MTBF )

Highly flexible voltage input w/o bulky step-up transformer and no de-rating

Field-replaceable power modules and continuous operations even if loss of modules

Faster installation , greater application flexibility, and lower TCO

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30kW Wall-Mount

30kW Pedestal

60kW Pedestal

BABA Compliant Version Available

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Strong Global Footprint of Manufacturing and Strategic Operation Expansion in Taiwan, ASEAN & NA

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UK Germany
Korea
China Japan
Jordan
USA
HK Taiwan
India
Mexico
Thailand
Vietnam
Singapore
Brazil
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LITEON will develop integrated portfolios on “energy efficiency”

Focus on “energy efficiency”

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1 Green Data Centers
2.7T 17%
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Total data center solutions with modular solutions and systemlevel energy optimization

2030 market size[1] , NTD 22-30 market CAGR , % Key building blocks

Build on core competence in power,

optoelectronics, connectivity, and software Provide services in E2E energy applications to

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3 Efficient infrastructure
1.0T 22%
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build “Internet of Energy”

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2 Clean mobility
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18%
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Software-infused, integrated energy storage solution for home and C&I use

2.2T

IoE Power Software Optoelectronics Connectivity / edge Efficient power control Total solution with LED, Infrared, IoT platform and and supply unit HW+SW and applied AI surveillance camera, application based on 5G silicon photonics small cell + WiFi 6/7

Integrated and efficient EV on/off-board power and charging solutions

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20

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2121

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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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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