PARPRO — Interim / Quarterly Report 2024

Dec 10, 2024

==> picture [270 x 35] intentionally omitted <==

Partners in Production

==> picture [960 x 440] intentionally omitted <==

免責聲明

PARPRO 的簡報包含具有重大風險和不確定性的前瞻性聲明。前瞻性陳述通常與未來的 事件或未來的財務或經營業績有關。在這種情況下 , 您可以識別前瞻性語句 , 因為它們包 “ ” “ ” “ ” “ ” “ ” “ ” “ ” 、 、 、 、 、 、 、 含諸如 可能 ” 之類的單詞 , “ 將會 應該 預期 計畫 預測 可能 打算 “ ” “ ” “ ” “ ” “ ” “ ” “ ” 、 、 、 、 、 、 目標 專案 盤算 相信 估計 預估 潛在 或 “ 繼續 ”, 或這些詞或其他 類似的術語或這些意思相反或負面的詞 , 涵蓋我們的期望 , 策略 , 計畫或意圖。 由於一些重要因素造成的風險和不確定性 , 實際結果可能與前瞻性聲明中所包含的內容 有重大差異。這些因素包括但不限於 : 我們競爭激烈的環境 ; 我們業務的週期性性質 ; 我們 。 . 開發新產品的能力 ; 以及我們在新業務發展中的成功執行等等 本簡報中的所有前瞻性聲明都是根據截至目前可獲取資訊為基礎的 , 我們不承擔任何義 務更新這些前瞻性聲明 , 及更新未來的事件 , 同樣的 , 我們也不承擔任何義務更新實際結 果可能與前瞻性聲明中預期的內容有重大差異的原因 , 即使將來我們取得新的資訊 .

==> picture [198 x 26] intentionally omitted <==

AGENDA

==> picture [57 x 343] intentionally omitted <==

==> picture [464 x 404] intentionally omitted <==

==> picture [198 x 26] intentionally omitted <==

Income Statement (3Q,2024)

	NT$k		1Q~3Q24	1Q~3Q23	1Q~3Q23			YoY
	Revenue		2,762,417	2,527,954				9.27%
	Gross Profit		341,067		397,989			-14.30%
	OperatingProfit		38,212		161,196			-76.29%
	Non-operating profit (52,928)				13,623			-488.52%
	Pre tax Profit		(14,716)		174,819			-108.42%
	Net Profit		(64,467)		120,246			-153.61%
	Profitability
	Gross Margin		12.35%		15.74%
	OperatingMargin		1.38%		6.38%
	Pretax Margin		NA		6.92%
	Net Margin		NA		4.76%
	~~NT$k~~		~~1Q23~~ ~~1Q24~~		~~QoQ~~			~~2Q23~~	~~2Q24~~		~~QoQ~~	~~3Q23~~	~~3Q24~~	~~QoQ~~
	Revenue		830,490 969,950		16.79%			857,892	911,349		6.23%	839,572	881,118	4.95%
	Gross Profit		94,943 147,934		55.81%			144,572		38,894	-73.10%	158,474	154,239	-2.67%
	OperatingProfit		40,332 33,186		-17.72%			52,423	(62,549)		-219.32%	68,441	67,575	-1.27%
	Non-operating profit		(525) (17,028)		-3143.43%			9,968		(6,589)	-166.10%	4,180	(29,312)	-801.24%
	Pre tax Profit		39,807 16,158		-59.41%			62,391	(69,138)		-210.81%	72,621	38,263	-47.31%
	Net Profit		25,343 202		-99.20%			35,989	(90,852)		-352.44%	58,914	26,184	-55.56%
	~~Profitability~~
	Gross Margin		11.43% 15.25%					16.85%		4.27%		18.88%	17.50%
	OperatingMargin		4.86% 3.42%					6.11%		NA		8.15%	7.67%
	Pretax Margin		4.79% 1.67%					7.27%		NA		8.65%	4.34%
	Net Margin		3.05% 0.02%					4.20%		NA		7.02%	2.97%

==> picture [198 x 26] intentionally omitted <==

Balance Sheet Overview

NT$k	2021	2022	2023	2024Q3
TOTAL CURRENT ASSETS	1,526,637	1,999,206	2,122,070	2,045,061
TOTAL ASSETS	3,001,970	3,530,730	3,635,101	3,496,901
TOTAL LIABILITIES	1,788,928	2,056,551	1,631,976	1,534,243
SHAREHOLDERS'EQUITY	1,213,042	1,474,179	2,003,125	1,962,658
TOTAL LIABILITIES AND EQUITY	3,001,970	3,530,730	3,635,101	3,496,901

Dividend Payout

2023 Year/Item	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting	~~Stock dividend~~ ~~Cash dividend~~ 0 0.4 2024/7/29 2024/8/4 2024/8/21 2024/5/31 0.87 EPS Per shar Ex-divided date Base Date Pay Date Shreholder meeting
2022	0	0.4	2023/6/30	2023/7/8	2023/7/19	2023/6/1	1.21
2021	0	0.5	2022/8/17	2022/8/23	2022/8/31	2022/5/31	1.29
2020	0	0.5	2021/8/12	2021/8/20	2021/8/27	2021/7/20	-1.78
2019	0	2	2020/7/2	2020/7/10	2020/7/3	2020/5/28	4.02
2018	0	2.47	2019/7/4	2019/7/10	2019/8/7	2019/5/31	3.03
2017	0	0.99	2018/8/16	2018/8/22	2018/9/7	2018/5/30	1.06
2016	1	1	2017/7/3	2017/7/9	2017/8/4	2017/5/26	2.01
2015	0	0.5	2016/6/27	2016/7/3	2016/7/21	2016/5/27	-0.39
2014	0	1.5	2015/7/3	2015/7/11	2015/7/29	2015/6/3	0.16

AT A GLANCE

$34.14 億 700+ Group Revenue 4916:TW (Run Rate 2023) Employees $27.62 億 Worldwide Group Revenue (Run Rate 2024 Q3) Taiwan (HQ) 2001 California (2) Aerospace Founded Defense Nevada Gaming Mexico Medical 2013 US Headquarters Industrial IPO Santa Ana, CA

==> picture [57 x 57] intentionally omitted <==

==> picture [48 x 47] intentionally omitted <==

==> picture [82 x 45] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

==> picture [78 x 35] intentionally omitted <==

Quality Aerospace Medical Military PTI & PMX

==> picture [43 x 9] intentionally omitted <==

----- Start of picture text -----

Aerospace
----- End of picture text -----

==> picture [45 x 47] intentionally omitted <==

Aerospace

A full-service embedded design & manufacturing company with emphasis on EMS & ODM Solutions.

In business since 2001, PARPRO was IPO in 2013 with a New Global Strategy, specializing in contract manufacturing, and the design and manufacturing of processor based embedded solutions to serve OEMs in a variety of vertical markets.

==> picture [327 x 115] intentionally omitted <==

==> picture [60 x 35] intentionally omitted <==

==> picture [32 x 9] intentionally omitted <==

----- Start of picture text -----

Military
----- End of picture text -----

COMPANY HISTORY

• PARPRO is an established OEM Company with a solid Strategy/Structure and strong vertical focus on Aerospace & Defense, Gaming, Medical, Communications and Industrial applications.

• Track record of acquiring and growing complementary businesses.

• Strategy is well perceived by key customers, with organic growth and profitability expansion in 2022/2023.

==> picture [152 x 85] intentionally omitted <==

----- Start of picture text -----

PANDEMIC
----- End of picture text -----

PARPRO PRESENCE EUROPE (1) SALES USA (2) TAIWAN (1) MEXICO (1) 2[nd] Building January 2025 650-700+ 4 TOTAL LOCATIONS

650-700+ TOTAL EMPLOYEES

LOCATIONS

==> picture [185 x 214] intentionally omitted <==

==> picture [184 x 214] intentionally omitted <==

==> picture [184 x 214] intentionally omitted <==

==> picture [184 x 214] intentionally omitted <==

==> picture [184 x 214] intentionally omitted <==

PARPRO TECHNOLOGIES

PARPRO CORPORATE

PARPRO NEVADA

PARPRO MEXICO

PARPRO TAIWAN

SANTA ANA, CA SAN DIEGO, CA HENDERSON, NV North America HQ Corporate Office Sheet Metal Fabrication PCB Assembly Metal Prototyping Integration & Assembly Integration & Test Box Build Integration & Assembly

TIJUANA, MEXICO

Cable & Wire Harness Assembly PCB Assembly Machining & Sheet Metal Fabrication Integration & Assembly

TAIPEI, TAIWAN

Global Headquarters Asian Sourcing Office

Organizational Cross-functions - Global Supply Chain • Finance • IT • HR • Sales & Marketing

==> picture [198 x 26] intentionally omitted <==

OUR SPECIALITIES

Markets We Serve

==> picture [950 x 326] intentionally omitted <==

----- Start of picture text -----

COMMUNCIATIONS/
AEROSPACE/DEFENSE GAMING/INFOTAINMENT MEDICAL INDUSTRIAL/OTHER EV CHARGING
DATA STORAGE
Cable/Wire Harnesses Gaming Boards PCB Assembly Data Center Switch, Industrial Automation EV Systems
Electromechanical Gaming Kiosks/Slot Embedded Medical Appliances Smart Devices
Assemblies Machines/Cabinets Platforms & Systems Storage Array Controllers Transportation Systems
Chassis/Enclosures Player Tracking Deep Packet Inspection,
Integration Vending Machines Load Balancing
Control Systems Interactive/Self-serve Kiosks
LOW VOLUME, HIGHER MIX
MID VOLUME, MID MIX
----- End of picture text -----

==> picture [122 x 10] intentionally omitted <==

----- Start of picture text -----

HIGHER COMPLEXITY
----- End of picture text -----

==> picture [198 x 26] intentionally omitted <==

MARKET REQUIREMENTS/OUR FOCUS MARKETS

Common Across Target Markets

==> picture [682 x 318] intentionally omitted <==

----- Start of picture text -----

Quality, Reliability
Highly Regulated Parietal
Lobe & Reputation Parietal
Highly regulated (FAA, FDA, Gaming
Lobe
Commissions, Federal Government, Quality and reliability
ITAR) - Expensive to enter, very important
certifications required.
North American Process
Parietal
Manufacturing Control
Parietal
Lobe
North American Lobe
Process/revision control
Manufacturing location
paramount
required in many cases.
----- End of picture text -----

==> picture [234 x 156] intentionally omitted <==

==> picture [198 x 26] intentionally omitted <==

EXECUTIVE HIGHLIGHTS

• Factory Expansion - Mexico footprint expansion

for expanding customer needs, along with strong demand to move away from China/Asia sourcing based on political influence

==> picture [376 x 284] intentionally omitted <==

• Geography provides resiliency against geopolitical tensions, flight time/costs, and tariffs while being more accessible to North American customers.

• 100% North American footprint with the ability to offer scaled production in Mexico.

• Focusing on the most attractive market leaders including electrification (EV), defense & aerospace, medical, industrial, gaming and self-serve kiosks.

EXECUTIVE HIGHLIGHTS

• Gaining Market Share by deepening existing customer relationships and being

• selective on customer cultural fit.

• Experienced & Values-Based Management team managing through challenging

• market conditions.

• Key Certifications – CMMC (Cybersecurity Maturity Model Certification) early 2025 Department of Defense information security requirement for contractors – providing a competitive advantage for military/defense contracts. In addition, we hold several other key certifications – Aerospace – AS9001D & NADCAP, Medical

• ISO-13845, Military – ITAR, NIST 800-171

==> picture [198 x 26] intentionally omitted <==

Strong Demand for North America Sourcing Away from China/Asia

UNDER THE NEW USA GOVERNMENT ADMINISTRATION & PRESIDENT TRUMP

Nearshore manufacturing is a trend that will continue to rise as offshore trade sectors such as China become more complex. PARPRO has over 250,000 sq.ft. of manufacturing space in Mexico. Under the maquiladora program, PARPRO’s near-shore manufacturing facility in Mexico benefits from this preferential tariff program set up and administered by American & Mexican Governments. 95% of PARPRO and its Customers are inside the “Trump Wall” and will not be affected by any newly imposed Tariffs and ‘Political Climate’!

==> picture [198 x 26] intentionally omitted <==

MARKET OUTLOOK 2025 FOR PARPRO

==> picture [934 x 401] intentionally omitted <==

----- Start of picture text -----

NEW
DEFENSE GAMING AEROSPACE MEDICAL EV Charging OVERALL
GROWTH STABLE GROWTH GROWTH NEW STABLE/PROFITABLE
OPPORTUNITIES GROWTH
High margins/profits With tighter With good margins PARPRO Mexico
margins and profit achieved ISO13485 PARPRO kicking off
Certification 2024 with strong
backlog.
----- End of picture text -----

CLEAR STRATEGY FOR GROWTH

COMPANY FACTORS

• MARCO-FACTORS INDUSTRY TRENDS COMPANY FACTORS

• • Outsourced manufacturing will • Innovation • Reputation and leadership

• continue to be a widely used • Increased demand for contract • Deep integration with clients’

• business strategy for U.S. based manufacturing services planning

• •

• companies Value-added service partners • Loyal customers poised for growth

• • • Strong North American economy Higher quality products • Advanced capabilities & experience

• • • Technological advancement in Enhanced capabilities • Key Certifications

• electronics • Flexible manufacturing • Seasoned management team

• • Proliferation of electronics • Growth in revenue and earnings

• products in daily interactions • Footprint expansion

• • Onshore or nearshore manufacturing options

• • M&A opportunities

==> picture [198 x 26] intentionally omitted <==

Compelling Investment Opportunity

Electronic Manufacturing Services (EMS) Market Analysis: Revenue, Growth Rate, Market Share and Forecast 2023-2030

==> picture [713 x 445] intentionally omitted <==

PARPRO TARGETING POSITIVE GROWTH 2024 and beyond Via Niche/ Value Markets (Regulated Markets)

==> picture [198 x 26] intentionally omitted <==

==> picture [211 x 163] intentionally omitted <==

==> picture [98 x 94] intentionally omitted <==

----- Start of picture text -----

EXPANSION
----- End of picture text -----

MEXICO EXPANSION

Existing Facility 135,000 sq.ft.

==> picture [470 x 275] intentionally omitted <==

PARPRO Mexico New Facility 115,000 sq.ft.

• Utilize existing cross functions – HR, Finance/ Accounting, IT, Supply Chain, Employees Services (cafeteria, medical, parking) etc.

==> picture [198 x 26] intentionally omitted <==

==> picture [98 x 94] intentionally omitted <==

----- Start of picture text -----

EXPANSION
----- End of picture text -----

JANUARY 2025

==> picture [432 x 242] intentionally omitted <==

----- Start of picture text -----

Existing PARPRO
Building
----- End of picture text -----

==> picture [167 x 134] intentionally omitted <==

----- Start of picture text -----

Existing PARPRO
Building
----- End of picture text -----

Two factories adjacent so synergies can be utilized

==> picture [864 x 169] intentionally omitted <==

EXPANSION

==> picture [47 x 48] intentionally omitted <==

==> picture [173 x 229] intentionally omitted <==

==> picture [369 x 215] intentionally omitted <==

==> picture [369 x 229] intentionally omitted <==

==> picture [361 x 217] intentionally omitted <==

==> picture [360 x 229] intentionally omitted <==

PARPRO Seashell

==> picture [335 x 380] intentionally omitted <==

----- Start of picture text -----

2020
2021
“We are getting
Stronger &
Stronger both
2022
in Revenue,
Profitability,
and as a Team”
2023
2024
----- End of picture text -----

==> picture [184 x 24] intentionally omitted <==

QUARTER BY QUARTER FOR 10 YEARS

==> picture [349 x 59] intentionally omitted <==

----- Start of picture text -----

2025 - FUTURE LOOKS GOOD
Strong backlog, China & Mexico in new political climate,
military/government conflicts
----- End of picture text -----

==> picture [86 x 9] intentionally omitted <==

----- Start of picture text -----

www.parpro.com
----- End of picture text -----

22

==> picture [184 x 24] intentionally omitted <==

THANK YOU FOR ANOTHER GREAT YEAR!

Q & A

23

www.parpro.com