TPK — Interim / Quarterly Report 2021

May 6, 2021

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TPK Proprietary & Copyright © All Rights Reserved

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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1Q21 Result Summary 2021年第一季營運簡報

NT$	Revenues	Net Profits	EPS
1Q21	29.2 bn	350 mn	0.86

• Robust smartphone and tablet demand drive Q1 revenue to grow 14.5% QoQ

• Notebook PC shipment declines due to seasonality

• OPEX to revenues ratio down to 2.6%, lowest in the last 10 years

• 1Q21 net profit was NT$350 million, up 45.2% QoQ, increased by 7.8 times YoY

• 1Q21 EBIDA amounted to NT$1.9 billion with net cash of NT$6.4 billion

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Financials

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1Q21 Profit & Loss

2021年第一季損益表

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Profit & Loss	QoQ 1Q20 YoY 1Q21 4Q20
(NT$ million) Revenues COGS Gross Profits Operating Expenses SG&A R&D Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	14.5% 28,192 3.5% (27,180) (28.3%) 1,011 (17.6%) (902) (705) (197) (61.8%) 109 (38.0%) 179 (34) 37 176 288 (248) 40 0.10 2,140 (28,352) (24,326) 29,186 25,490 834 1,164 (766) (987) (601) (798) (165) (188) 68 177 305 222 (1) 23 155 37 151 161 373 399 (34) (153) 350 241 0.86 0.59 1,868 1,957
Margin: GM OM NM OpExp	3.6% 0.4% 0.1% (3.2%) 2.9% 4.6% 0.2% 0.7% 1.2% 0.9% (2.6%) (3.9%)

Note: 1Q21Fully Diluted Weighted Average: 407 million shares

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Quarterly Sales by Form Factors 季營收結構

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1Q21 Balance Sheet 2021年第一季資產負債表

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Balance Sheet	2021/3/31 2020/12/31 2020/3/31
(NT$ million) Cash Equivalents Risk-Free Banking Financial Product Receivables Other Receivables Inventories Current Assets PP&E Total Assets ST Loans Payables Current Liabilities LT Loans Total Liabilities Common Shares Retained Earnings Total Shareholder's Equities	32,128 22,603 21,462 3,752 2,835 14,362 10,847 12,764 9,582 6,316 2,225 8,177 9,101 8,425 7,393 65,395 54,113 61,662 21,708 22,885 26,765 94,318 83,621 94,196 21,203 6,751 22,426 14,498 14,443 15,110 42,942 29,035 43,506 8,297 11,567 9,419 58,161 46,816 57,738 4,067 4,067 4,067 4,203 3,591 2,599 36,156 36,805 36,459
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	1.31 1.57 1.25 1.52 1.86 1.42 3.84% 2.8% 0.4% Net Cash Net Cash 0.28

Note: PP&E includes prepayments.

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April 2021 Sales 2021年4月營收

Unit: Million

MoM	April-21	March-21	Change
NTD	9,177	9,573	-4.1%
USD	322	338	-5.0%
YoY	April-21	April-20	Change
NTD	9,177	11,017	-16.7%
USD	322	364	-11.8%

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FOR IMMEDIATE RELEASE

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

Taipei, Taiwan, May 6, 2021 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2021 first quarter unaudited consolidated operating results. Company reported revenues of NT$29,186 million and net profit of NT$350 million, or earnings per share of NT$0.86 for the quarter.

1Q21 Operating Results

First quarter revenues were NT$29,186 million, up 14.5% quarter-on-quarter and up 3.5% year-on-year. The sequential growth was mostly attributable to robust smartphone and tablet demand. For 1Q21, small-sized products (<7”) accounted for 27.0% of total revenues and registered 110.3% quarter-onquarter growth in revenues. Tablet segment also posted 29.8% sequential revenue growth, elevating its percentage of total sales to 29.8%. On the contrary, notebook PC sector reported 16.0% quarteron-quarter decline owing to low seasonality. Despite the enlarged operating scale, gross margin declined from 4.6% in 4Q20 to 2.9% in the backdrop of unfavorable product mix change. 1Q21 gross profits were NT$834 million.

In terms of COGS items, raw materials were NT$24,785 million, equivalent to 84.9% of revenues, up from 81.2% for 4Q20, which was primarily driven by higher percentage of pass-through raw materials for smartphone. Depreciation cost continues to trend down and posted NT$1,220 million for 1Q21, the lowest level since 3Q13. Significant cost reduction in operating expenses was achieved which lowered the expenses to NT$766 million, representing merely 2.6% of sales for the quarter, the lowest level in the last 10 years. 1Q21 operating profits were NT$68 million and operating margin was 0.2%.

Company recorded net interest expenses of NT$0.8 million, thanks for exceptional cash management. Foreign exchange gain of NT$155 million was also registered by means of FX hedging and arbitrage. Company also partially disposed its investment in Canoo Inc. during the quarter. Total disposal proceed amounts to NT$785 million and contributed NT$49 million in non-operating income. For 1Q21,

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net income totaled NT$350 million, increased by 7.8 times over same period of last year. Earnings per share were NT$0.86.

Balance Sheet & Cash Flow

As of March 31st 2021, cash & cash equivalent totaled NT$35.9 billion, up from NT$25.4 billion at the end of 2020 while total bank borrowings also increased from NT$18.3 billion at end of 4Q20 to 29.5 billion. The increment on bank borrowings was for risk-free cash management. Capital expenditure for the quarter was NT$278 million on accrual basis. 1Q21 EBITDA was healthy and amounted to NT$1.9 billion. TPK remained at net cash position as of end of 1Q21.

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 ir@tpk.com

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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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1Q21 PROFIT & LOSS

Profit & Loss	QoQ 1Q20 YoY 1Q21 4Q20
(NT$ million) Revenues COGS Gross Profits Operating Expenses SG&A R&D Operating Profits Non-Op Inc/(Exp) Int Inc/(Exp) FX Gain/(Loss) Others Earnings Before Tax Income Tax Net Income (Parent) EPS (Parent) EBITDA	14.5% 28,192 3.5% (27,180) (28.3%) 1,011 (17.6%) (902) (705) (197) (61.8%) 109 (38.0%) 179 (34) 37 176 288 (248) 40 0.10 2,140 (28,352) (24,326) 29,186 25,490 834 1,164 (766) (987) (601) (798) (165) (188) 68 177 305 222 (1) 23 155 37 151 161 373 399 (34) (153) 350 241 0.86 0.59 1,868 1,957
Margin: GM OM NM OpExp	3.6% 0.4% 0.1% (3.2%) 2.9% 4.6% 0.2% 0.7% 1.2% 0.9% (2.6%) (3.9%)

Note: 1Q21Fully Diluted Weighted Average: 407 million shares

1Q21 BALANCE SHEET

1Q21 BALANCE SHEET
Balance Sheet	2021/3/31 2020/12/31 2020/3/31
(NT$ million) Cash Equivalents Risk-Free Banking Financial Product Receivables Other Receivables Inventories Current Assets PP&E Total Assets ST Loans Payables Current Liabilities LT Loans Total Liabilities Common Shares Retained Earnings Total Shareholder's Equities	32,128 22,603 21,462 3,752 2,835 14,362 10,847 12,764 9,582 6,316 2,225 8,177 9,101 8,425 7,393 65,395 54,113 61,662 21,708 22,885 26,765 94,318 83,621 94,196 21,203 6,751 22,426 14,498 14,443 15,110 42,942 29,035 43,506 8,297 11,567 9,419 58,161 46,816 57,738 4,067 4,067 4,067 4,203 3,591 2,599 36,156 36,805 36,459
Ratio Analysis: Quick Ratio Current Ratio ROE (YTD Annualized) Net Debt to Equity	1.31 1.57 1.25 1.52 1.86 1.42 3.84% 2.8% 0.4% Net Cash Net Cash 0.28

Note: PP&E includes prepayments.

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