Patec — Interim / Quarterly Report 2021

Dec 6, 2021

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PATEC PRECISION INDUSTRY CO., LTD.

（STOCK CODE：2236.TW）

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Safe Harbor Notice

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l PATEC’s statements of its current are expectations forward-looking statements subject to significant risks and uncertainties and actual results differ from may materially those contained in the forward-looking statements。 l Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

l The company makes no representations or warranties, express or implied, and does not rely on the correctness, impartiality or completeness of the information presented or contained in this data. This data does not constitute an invitation to issue securities.

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Agenda � [Com][p][an][y][ Profile] Business Performance ~~�~~ Dividend Polic ~~�~~ y Sales Contents ~~�~~

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Com an Profile p y

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l Basic Info

Established	Reg, Capital	Employee
26th Sep., 1992	NTD 458 M	795

l Patec Precision can one provide stop shop to all press facilities. From tooling design, develop, feeding machine, robot transfer for customizing. We can also provide fine blanking and deep drawing machine.

• l In April 2021, the founder family a

• completed public acquisition of more than 60% of the shares.

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Company Profile �

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Miskolc, Hungary
Wuxi, China
Serangoon, Singapore Jakarta, Indonesia
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Com an Profile p y

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« Forging Synergies

(Fine blanking、Cold Forging、Deep Drawing、Cold Forming)

è Continuous Tooling

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Machine advantages: － Special Process － High performance － Patec Motion Technology － Millions of punches, the precision still keep the same

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Company Profile

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« Core Technology (Forging Synergies) Heat Sinker，special process ，Double-point linkage，Maintain high-precision quality

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Save material cost
First stage stamping Stamping product through metal extrusion
First stage stamping Stamping product
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Business Performance

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Consolidated Operating Revenue/Margin
Earnings Per Share
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ROE/ROA
Consolidated Income Statement
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Cash Flow Statement
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Business Performance
-Consolidated Operating Revenue/Margin �
In NTD Thousand
Revenur Margin
Profit After Income Tax
2,000,000 27.50%
1,795,565 27.22% 60,000
1,800,000 27.00%
1,600,000 26.50%
50,000
1,400,000 26.00%
1,181,611 40,000
1,200,000 25.50%
1,011,124
1,000,000 25.00%
24.37% 18.35% 30,000
800,000 24.50%
600,000 24.00% 20,000
400,000 23.50%
10,000
200,000 23.00%
0 22.50%
0
2019 2020 2021Q3
2019 2020 2020Q3
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Business Performance -Earnin s Per Share g

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PATEC GROUP EPS

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2.25
1.14
0.88
0.69
0.00
2019年 2020年 2020年Q3
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Business Performance -ROE/ROA

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Return on Equity Return on Assets
10.00%
3.51%
9.00%
8.00%
7.00%
2.74%
6.00%
5.74%
5.00%
4.00%
3.90%
1.47%
3.00%
2.00% 2.08%
1.00%
0.00%
2019年 2020年 2020年Q3
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|Business Performance|
|-Consolidated Income Statement (Per Quarter)|
|In NTD Thousand|[�]|
|2020 Q3|2020 Q4|2021 Q1|2021 Q2|2021 Q3|
|Amount|%|Amount|%|Amount|%|Amount|%|Amount|%|
|Operating Revenue|300,019 100|348,163|100|325,104|100|335,358|100|350,662|100|
|Operating Costs|(231,702)|(77)|(243,358)|(70)|(243,342)|(75)|(238,955)|(71)|(253,610)|(72)|
|Operating Margin|68,317|23|104,805|30|81,762|25|96,403|29|97,052|28|
|Operating Expenses|(46,416)|(16)|(68,363)|(20)|(71,875)|(22)|(57,851)|(17)|(63,056)|(18)|
|Sales|(8,756)|(3)|(13,192)|(4)|(12,380)|(4)|(14,184)|(4)|(13,669)|(4)|
|Admin|(31,589)|(11)|(41,660)|(12)|(50,689)|(15)|(36,589)|(12)|(45,144)|(13)|
|R&D|(7,220)|(2)|(12,150)|(3)|(8,806)|(3)|(7,078)|(2)|(4,243)|(2)|
|Impairment loss determined in|-|-|-|-|
|1,149|(1,361)|(1)|0|0|0|
|accordance with IFRS 9|
|Operating Profit|21,901|7|36,442|10|9,887|3|38,552|12|33,996|10|
|Non-operating Income|9,274|4|4,655|1|7,208|2|3,380|1|9,481|3|
|Non-operating expenses|(17,014)|(6)|(8,800)|(2)|(7,084)|(2)|(2,728)|(1)|(2,945)|(1)|
|Profit(Loss) Before Tax|14,161|5|32,297|9|10,011|3|39,204|12|40,532|12|
|Income|
|-|
|(187)|(12,753)|(4)|(6,456)|2|(16,136)|(5)|(13,246)|(4)|
|Tax Expense|
|Profit(Loss) For The Year|13,974|5|19,544|5|3,555|1|23,068|7|27,286|8|
|-|-|
|(NCI)|4,413|1|(681)|(1,879)|(1)|2,321|1|1,235|
|CI|9,561|4|20,225|5|5,434|2|20,747|6|26,051|8|
|EPS(in Dollars)|0.22|0.43|0.12|0.45|0.57|

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Business Performance -Cash Flow Statement

In NTD Thousand

	2019	2020	2021 Q3
	Amount	Amount	Amount
Profit Before Income Tax	111,872	53,111	89,747
D & A	87,947	78,266	45,317
Income Tax Paid	(42,534)	(24,294)	(41,166)
Net cash provided by operating activities	401,312	204,993	119,812
CAPEX	(27,558)	(7,907)	(40,753)
Net cash (used in) provided by investing activities	(184,611)	84,133	69,423
Net cash (used in) provided by financing activities	(38,550)	(2,646)	(160,271)
Increase (Decrease) in cash	151,609	268,402	29,285

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Business Performance -Financial Ratios

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|2019年|2020年|2021 Q3|
|Operating Margin Ratio|24.37%|24.83%|27.22%|
|Operating Profit Ratio|6.29%|4.61%|8.15%|
|Profitability|
|Earnings Before Tax Margin|6.23%|4.49%|8.88%|
|Net Profit Margin|2.91%|2.31%|5.33%|
|Current Ratio|237.78%|286.51%|240.01%|
|Quick Ratio|168.11%|222.29%|170.06%|
|Solvency|
|Debt Ratio|42.66%|42.63%|46.91%|
|Times Interest Earned Ratio|9.88|7.07|11.96|
|Account Receivable Turnover|2.84|2.51|3.3|
|(Times)|129天|145天|110天|
|2.67|2.12|2.4|
|Operating Ability|Inventory Turnover (Times)|
|137天|172天|152天|
|Account Payable|6.81|5.52|5.6|
|Turnover (Times)|54天|66天|65天|

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|Dividend Polic|�|
|y|
|Appropriation Of Earnings|
|Distribution Year|Cash Dividends|Stock Dividends|
|2021|1.8661839|0|
|2020|0.06086353|0.35503729|
|2019|0.10244247|0.92198329|
|2018|0.75000000|0.75000000|
|2017|1.96331235|0|

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Sales Contents

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Major Products
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Sales Contents – Products Items �

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100% 5% 13% 11% 9% 4% 2% 4% 5% 80% 60% 91% 89% 85% 40% 82% 20% 0% 2018 2019 2020 2021Q3 4 Wheels 2 Wheels Machine and Others

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Future Plan

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« Press Machine

MAX FGL UKL MAX-100、MAX-200 FGL-200、FGL-300 UKL-300W、UKL-400W FGL-450、FGL-600 UKL-600W FGL-800、FGL-1000 Capacity 100~200 200~1000 300~600 (tone) Work Energy 50~200 50 ~ 100 35~70 (spm) Slide Dimension 1300700、1600900 1100600 ~ 21001100 30001100、30001300 (mm) Total Deflection 0.5、0.7 0.7 ~ 1.4 1.5 (mm)

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Sales Contents – Major Products �

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« Automobile safety parts

l The product life cycle of automobile safety parts is 6~8 years. l These need 100% full-inspection, require 0 ppm, and have difficulties of technology and production. l Patec will continue to research new technology/production, and develop components of double clutch ,gearbox, etc. Engine Exhaust Door Lock/Seat/Chassis Brake Wiper Linkage

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Com an Profile p y

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l Automobile parts Mainly benefiting automakers under the global automaker platform trend Market Growth, MQB platform, strict exhaust standards l MQB、TNGA Reduce development costs, reduce maintenance and inventory costs VW, AUDI, SKODA, SEAT, TOYOTA share about 60% auto parts l New Energy Vehicle Including New electric vehicles and hydrogen energy

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Automobile u EURO 6 ；National Stage V, VI

Tier 1

u MQB platform increase volume u Decrease Core supplier

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Sales Contents – Major Customers

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l Major Customers

l Top 4 Faurecia、Akebono、Benteler、Magna all are global automobile suppliers l Patec is also a qualified supplier of Bosch, Mitsuba, Hitachi.

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100%
90%
31.740%
34.52%
80% 37.09%
39.95%
70%
4.82%
3.39%
60% 3.14% 5.01% 4.73%
2.35% 3.56%
2.32%
6.26% 13.65% 10.54%
50% 3.98%
7.54%
11.31%
40% 9.29% 11.60%
30%
20% 36.80%
35.42% 35.49% 35.22%
10%
0%
2018 2019 2020 2021Q3
Faurecia Akebono Benteler
Magna Eberspaecher Others
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Product introduction-development direction

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l Press Machines l Automobile parts Develop new energy vehicles and jointly develop with co re customers China：Chip shortage will ease next year, demand exceeds supply Indonesia：Hyundai will Production of new energy vehicles in Indonesia Hungary：Wiper connecting rod, electric bicycle l Service robots

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Product introduction– Security guard Robot �

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“Our market is not simply robotics;
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Strong growth projected in robotics : 34% year-over-year

In , Singpore

“Our market is not simply robotics; it is manual human labor” Projections for the Robotics Market

Ageing Population

By 2030, 1 in 4 Singaporeans will be aged over 65 years.

Labour Constraints

$248.5 billion addressable market by 2025*

Foreign labour quotas to fall by 25% by Jan 2023

USA: 73 Million Globally: 600 Million

Covid-19

Affected by the COVID-19, It is difficult for Foreign labour to move.

Low Skill Automatable Jobs (most of the workforce resides outside of advanced economies)

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SOURCE: Straits Times, CNN, ILO, SingStat, Trading economics, SIM

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Our Solutions

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YOUR ROBOT YOUR SPECS

We recognize that your needs are unique, and you shouldn't have to compromise. Our modular design lets you specify the features and add-on options that you require, without unnecessary frill.

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LOCATIONS DEPLOYED

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To learn more about PATEC Please visit www.patec-intl.com