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Disclaimer Statement

This presentation and release may contain ‘forward-looking statements’ which may include projections on future results of operations, financial condition and business prospects based on our own information and other sources.

The actual results of operations, financial condition and business prospects may differ from those explicitly or implicitly indicated in those forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, supply chain issues, global economic conditions, exchange rate fluctuation and other risks and factors beyond TPK’s controls.

The forward-looking statements in this presentation, if any, only reflect the current view of TPK Holding Co., Ltd. as of the date of its release. TPK undertakes no obligation to update those forward-looking statements for events or circumstances that occur subsequently.

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Disclosure Notice

公告原則

 All financial numbers are prepared in accordance with IFRS which is approved by regulators in Taiwan

All financial numbers are unaudited

 本公司財務報表係依照臺灣主管機關認可之國際財務報導準則編製

所有財務數字均為本公司自結數

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3Q21 Result Summary 2021年第三季營運簡報

NT$	Revenues	Net Profits	EPS
3Q21	25.2 bn	279 mn	0.69

Q3 revenue increase 2.4% QoQ driven by new product introduction & volume increase of small form factor product
Flattish NB and large-sized tablets revenue result from component supply shortage
OPEX rate increase from 3.2% to 3.5% owing to slightly higher shipping cost and new product sampling cost
3Q21 EBIDA amounted to NT$1.8 billion with net cash of NT$7.2 billion

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Financials

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3Q21 Profit & Loss

2021年第三季損益表

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Profit & Loss	QoQ3Q20YoY3Q212Q21
(NT$ million)RevenuesCOGSGross ProfitsOperating ExpensesSG&AR&DOperating ProfitsNon-Op Inc/(Exp)Int Inc/(Exp)FX Gain/(Loss)OthersEarnings Before TaxIncome TaxNet Income (Parent)EPS (Parent)EBITDA	2.4%32,852(23.4%)(31,559)7.2%1,294(19.2%)(1,058)(866)(192)(15.4%)235(34.9%)3204466209555(113)4431.092,2390.690.791,7771,848455342(150)(11)279322(9)(6)4036271131(170)(169)1531813011611,045975(892)(793)(722)(624)(24,126)(23,613)25,17124,588
Margin:GMOMNMOpExp	3.9%0.7%1.3%(3.2%)0.6%0.7%1.1%1.3%(3.5%)(3.2%)4.2%4.0%

Note: 3Q21Fully Diluted Weighted Average: 407 million shares

Quarterly Sales by Form Factors 季營收結構

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3Q21 Balance Sheet 2021年第三季資產負債表

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Balance Sheet	2021/9/302021/6/302020/9/30
(NT$ million)Cash EquivalentsRisk-Free Banking Financial ProductReceivablesOther ReceivablesInventoriesCurrent AssetsPP&ETotal AssetsST LoansPayablesCurrent LiabilitiesLT LoansTotal LiabilitiesCommon SharesRetained EarningsTotal Shareholder's Equities	30,65928,63527,7733,9005,2654,94310,70910,45212,1483,7863,3767,5729,7078,6716,75260,97559,15559,98219,40720,21324,03287,68386,67590,71117,65614,61618,36512,42512,40214,16535,83933,30739,2349,70410,5479,18152,37350,74954,5674,0674,0674,0674,4074,5353,34935,31135,92636,144
Ratio Analysis:Quick RatioCurrent RatioROE (YTD Annualized)Net Debt to Equity	1.431.521.361.701.781.533.5%3.7%2.9%Net CashNet CashNet Cash

Note: PP&E includes prepayments.

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FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2021

Taipei, Taiwan, October 29, 2021 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2021 third quarter unaudited consolidated operating results. Company reported revenues of NT$25,171 million and net profit of NT$279 million, or earnings per share of NT$0.69 for the quarter. For the first nine months of 2021, the Company’s net profit totaled NT$951 million, or earnings per share reached to NT$2.34.

3Q21 Operating Results

Third quarter revenues were NT$25,171 million, up 2.4% quarter-on-quarter in spite of disruption in supply chain. For this quarter, smartphone segment posted 11.7% sequential growth against the backdrop of product transition. On the contrary, tablet (711”) and notebook (1116”) revenues were flattish to second quarter due to component supply shortage. Notebook and large-sized tablet (1116”) remained the largest revenues contributor, accounting for 48% of top-line for this quarter. Followed by tablet segment (711”), which represented 27% of revenues. Despite unfavorable product mix, gross margin improved from 4.0% for the previous quarter to 4.2% and amounted to NT$1,045 million, up 7.2% quarter-on-quarter.

In terms of COGS breakdown, raw materials were NT$20,949 million, up from 83.0% of revenues for 2Q21 to 83.2% for this quarter owing to unfavorable product mix. Labor cost amounted to NT$1,658 million and increased from 6.0% of revenues for second quarter to 6.6% for 3Q21. On the other hand, Company posted the lowest depreciation cost, since 2013, of NT$1,048 million, equivalent to 4.2% of revenues for third quarter, down from 5.0% for the previous quarter.

Operating expenses increased to NT$892 million from NT$793 for second quarter, equivalent to 3.5% of revenues for the quarter. Incremental expenses mainly stemmed from new product sampling cost to major customers and slightly higher shipping cost. As a result, 3Q21 operating profits amounted to

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NT$153 million and operating margin was 0.6%.

Company posted net interest expense of NT$9 million and recorded FX gain of NT$40 million, thanks to effective cash management, FX hedging and risk-free arbitrage. For 3Q21, net profits amounted to NT$279 million and earnings per share was NT$0.69.

Balance Sheet & Cash Flow

As of September 30[th] 2021, cash and cash equipment totaled NT$34,558 million, up from NT$33,900 million at the end of second quarter while total bank borrowings also increased from NT$25,163 million to NT$27,360 million. Inventory at the end of this quarter also increased slightly to NT$9,707 million from NT$8,671 million reflecting downstream supply chain congestion. Capital expenditure for the quarter was NT$218 million on accrual basis. EBITDA remained healthy at NT$1,777 million for the quarter. For the first nine of 2021, EBITDA reached NT$5,493 million. TPK remained at net cash position as of September 30[th] 2021.

Note: All financial numbers are prepared in accordance with IFRs, which is approved by regulators in Taiwan.

IR Contact

Freddie Liu, Chief Strategy Officer Tracy Tsai, Chief Financial Officer Kevin Wang, Senior Director Tel: +886.2.7727.1196 [email protected]

ABOUT TPK

TPK was founded for touch solutions in 2003. We are the inventor of transparent glass-based projected capacitive (P-Cap) touch solutions and the first company for mass production. TPK excels at defining new technology mass production processes with in-house automation and flexible production capabilities. Our production sites are located in Xiamen City of Fujian Province, China.

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3Q21 PROFIT & LOSS

Profit & Loss	QoQ3Q20YoY3Q212Q21
(NT$ million)RevenuesCOGSGross ProfitsOperating ExpensesSG&AR&DOperating ProfitsNon-Op Inc/(Exp)Int Inc/(Exp)FX Gain/(Loss)OthersEarnings Before TaxIncome TaxNet Income (Parent)EPS (Parent)EBITDA	2.4%32,852(23.4%)(31,559)7.2%1,294(19.2%)(1,058)(866)(192)(15.4%)235(34.9%)3204466209555(113)4431.092,2390.690.791,7771,848455342(150)(11)279322(9)(6)4036271131(170)(169)1531813011611,045975(892)(793)(722)(624)(24,126)(23,613)25,17124,588
Margin:GMOMNMOpExp	3.9%0.7%1.3%(3.2%)0.6%0.7%1.1%1.3%(3.5%)(3.2%)4.2%4.0%

Note: 3Q21Fully Diluted Weighted Average: 407 million shares

3Q21 BALANCE SHEET

3Q21 BALANCE SHEET
Balance Sheet	2021/9/302021/6/302020/9/30
(NT$ million)Cash EquivalentsRisk-Free Banking Financial ProductReceivablesOther ReceivablesInventoriesCurrent AssetsPP&ETotal AssetsST LoansPayablesCurrent LiabilitiesLT LoansTotal LiabilitiesCommon SharesRetained EarningsTotal Shareholder's Equities	30,65928,63527,7733,9005,2654,94310,70910,45212,1483,7863,3767,5729,7078,6716,75260,97559,15559,98219,40720,21324,03287,68386,67590,71117,65614,61618,36512,42512,40214,16535,83933,30739,2349,70410,5479,18152,37350,74954,5674,0674,0674,0674,4074,5353,34935,31135,92636,144
Ratio Analysis:Quick RatioCurrent RatioROE (YTD Annualized)Net Debt to Equity	1.431.521.361.701.781.533.5%3.7%2.9%Net CashNet CashNet Cash

Note: PP&E includes prepayments.

AI assistant

TPK Interim / Quarterly Report 2021

52363_rns_2021-10-29_1236859d-d5a7-47d0-88e8-2f7580d7911f.pdf

Disclaimer Statement

Disclosure Notice

公告原則

 All financial numbers are prepared in accordance with IFRS which is approved by regulators in Taiwan

3Q21 Result Summary 2021年第三季營運簡報

Financials

3Q21 Profit & Loss

2021年第三季損益表

Quarterly Sales by Form Factors 季營收結構

3Q21 Balance Sheet 2021年第三季資產負債表

FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2021

3Q21 Operating Results

Balance Sheet & Cash Flow

IR Contact

ABOUT TPK

3Q21 PROFIT & LOSS

3Q21 BALANCE SHEET

AI assistant

TPK — Interim / Quarterly Report 2021

52363_rns_2021-10-29_1236859d-d5a7-47d0-88e8-2f7580d7911f.pdf

Disclaimer Statement

Disclosure Notice

公告原則

 All financial numbers are prepared in accordance with IFRS which is approved by regulators in Taiwan

3Q21 Result Summary 2021年第三季營運簡報

Financials

3Q21 Profit & Loss

2021年第三季損益表

Quarterly Sales by Form Factors 季營收結構

3Q21 Balance Sheet 2021年第三季資產負債表

FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2021

3Q21 Operating Results

Balance Sheet & Cash Flow

IR Contact

ABOUT TPK

3Q21 PROFIT & LOSS

3Q21 BALANCE SHEET

More from TPK

TPK Interim / Quarterly Report 2021