ZENITRON — Interim / Quarterly Report 2021

Nov 12, 2021

ZENITRON 2021 Investor Conference

2021.11.12

www.zenitron.com.tw

Safe Harbor Statement

• Zenitron’s forward-looking statements, which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on Zenitron’s current expectations.

• Actual results may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including, among other things: the cyclical nature of our industry; our dependence on introducing new products on a timely basis; our dependence on growth in the demand for our products; our ability to compete effectively; our dependence on key personnel; general economic and political conditions; possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.

• In addition, any financial information contained here within is presented in conformity with International Financial Reporting Standards (IFRSs)

• Except as required by law, our release of forward-looking statements at any particular time does not create any duty of disclosure, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.

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Agenda

1. Corporate Overview

Spokesperson Spokesperson

2. 2021Q3 Financial Update 3. Questions and Answers

Team

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1.Overview

• A solution-centric distributor of semiconductor and electronic components, founded in 1982 and listed in 2000 (ticker: 3028 TT)

• Contract manufacturers, namely B2B markets, are the majority customers. The secondary being retail (B2C) market

• Y2021Q1~Q3 revenues of NT$31.7bn, up 31% YoY

• 18 offices in Greater China with over 3,700 customers

• Over 700 headcounts (200 Sales, 86 PMs, and 97 FAEs)

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1.Overview

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2.Financial Update

Revenue

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NT$Bn
YoY +31%
40
34.4
31.7
31.0
30 27.6 27.0
22.3
20
10
0
Y2016 Y2017 Y2018 Y2019 Y2020 Y21(Q1~Q3)
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2.Financial Update

Statement of Comprehensive Income

unit:NT$Mn

Key accounts	Y2021Q1~Q3		$ % Y2020Q1~Q3	%YoY
	$ %
Net Operating Revenue Gross Profit Operationg Expenses Operating Income Financing Cost Others Earning Before Tax Income Tax Expense Profit After Tax EPS (in dollars)	31,733 100% 1,881 6% (1,058) -3% 822 3% (87) 0% 101 0% 836 3% (141) 0% 696 2% 3.25		24,222 100% 1,162 4% (835) -3% 327 1% (93) 0% 160 1% 393 1% (55) 0% 339 1% 1.58	31% 62% 27% 151% -7% -37% 113% 156% 105% 106%

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2.Financial Update

Statement of Comprehensive Income

unit:NT$Mn

Key accounts	$ % Y2021Q3	$ % Y2021Q2	%QoQ	Y2021Q1~Q3	Y2020Q1~Q3		%YoY
				$ %	$ %
Net Operating Revenue Gross Profit Operationg Expenses Operating Income Financing Cost Others Earning Before Tax Income Tax Expense Profit After Tax EPS (in dollars)	10,893 100% 682 6% (390) -4% 292 3% (29) 0% 40 0% 303 3% (46) 0% 257 2% 1.20	10,372 100% 643 6% (366) -4% 277 3% (27) 0% 39 0% 288 3% (42) 0% 246 2% 1.15	5% 6% 7% 5% 5% 4% 5% 10% 5% 4%	31,733 100% 1,881 8% (1,058) -4% 822 3% (87) 0% 101 0% 836 3% (141) -1% 696 3% 3.25	24,222 100% 1,162 5% (835) -3% 327 1% (93) 0% 160 1% 393 2% (55) 0% 339 1% 1.58		31% 62% 27% 151% -7% -37% 113% 156% 105% 106%

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2.Financial Update

Balance Sheet

	Balance	Balance	Sheet
				Unit:NT$Mn
Key accounts	2021/9/30		$ % 2021/6/30	2020/9/30
	$ %			$ %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	1,493 7% 9,957 50% 6,726 34% 269 1% 1,625 8%		1,424 7% 9,322 49% 6,474 34% 217 1% 1,603 8%	1,411 8% 8,884 53% 4,443 27% 1,153 7% 778 5%
Total Assets	20,070 100%		19,041 100%	16,670 100%
Short-term loans Accounts payable Other current liabilities Other liabilities	8,545 43% 4,163 21% 1,464 7% 790 4%		7,458 39% 4,818 25% 1,785 9% 225 1%	7,686 46% 2,965 18% 1,057 6% 232 1%
Total Liabilities	14,963 75%		14,286 75%	11,940 72%
Total Equity	5,107 25%		4,755 25%	4,729 28%
Indices
Current ratio Debt/Assets ratio Debt/Equity ratio	130% 75% 293%		124% 75% 300%	136% 72% 252%

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2.Financial Update

Revenue by Geography (ship-to destination)

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100%
80%
60% 83% 89% 88% 86% 90% 92% China
40%
Taiwan
20%
17% 11% 12% 14% 10% 8%
0%
Y2016 Y2017 Y2018 Y2019 Y2020 Y21(Q1~Q3)
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REVENUE (NT$Bn) China YoY +34%
35
31.1
29.0
30 27.1
25 23.1
20 Taiwan
15 China
10
5 3.9 3.9 3.3 2.7
0
Y2018 Y2019 Y2020 Y21(Q1~Q3)
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2.Financial Update

Revenue by Customer

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0.4% 0.4% 0.3% 0.4% 0.4% 0.3%
100%
80% 41.9% others
50.4% 55.2% 53.7%
62.3% 64.8%
60% China
based
40%
Taiwan
57.6%
20% 49.3% 44.8% 46.3% 37.3% 34.9% based
0%
Y2016 Y2017 Y2018 Y2019 Y2020 Y21(Q1~Q3)
Revenue (NT$Bn)
25 China YoY +38%
21.4 20.5
20 Taiwan
17.1
based
14.5
15 13.8
12.4 12.8 China
11.1
based
10
others
5
0.1 0.1 0.1 0.1
0
Y2018 Y2019 Y2020 Y21(Q1~Q3)
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2.Financial Update

Revenue by Application

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9 8 7 6 5 4 3 2 1 0

2.Financial Update

Revenue by Application

8 7 6 5 4 3 2 1 0

REVENUE NT$Bn

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REVENUE NT$Bn 7.8
5.8
Y2019
4.5 Y2020
3.9
3.5 3.4 3.7
3.4
3.1 3.0 2.8 2.7 2.7 2.9
1.7 1.7 1.6
1.0 1.1 1.1
IT/Computing EMS Telecom & Retail Consumer Industrial Power Supply Automotive Handheld Others
Communication Electronics
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REVENUE NT$Bn

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6.7
5.3
Y20(Q1~Q3)
3.1
Y21(Q1~Q3)
2.1
1.3 1.5 1.5 1.4
1.1 0.8
Industrial Power Supply Automotive Handheld Others
Electronics 13
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6.5
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4.0
3.4
2.5 2.8 2.5 2.9 2.4 2.4
2.0
IT/Computing EMS Telecom & Retail
Communication
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Consumer

IT/Computing

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2.Financial Update

EPS & ROE%

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2.Financial Update

NWC/Sales & ROWC

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7.6%
0.5 8%
6.8% 6.9%
0.4
6%
5.0%
4.4%
0.3 4.2%
4%
0.2
0.34
0.31 0.29 0.28 0.28
0.26 2%
0.1
0.0 0%
Y2016 Y2017 Y2018 Y2019 Y2020 Y21(Q1~Q3)
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NWC/Sales ROWC

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2.Financial Update

Operating Cash Cycle

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140 124
117
108 109 109
120
101
100
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140
100 120	117 101 108 124 109 109
0 20 40 60 80
	Y2016	Y2017	Y2018	Y2019	Y2020	Y21(Q1~Q3)
AR days	92	79	86	105	89	84
Inventory days	75	71	74	76	63	64
AP days	50	49	52	56	42	39
Operating Cycle	117	101	108	124	109	109

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AR days Inventory days

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AP days Operating Cycle

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2022 Outlook

• Telecom & Networking - Booming 5G market drives Backbone Infrastructure sector growth : Server, PON, Gateway, Base Station

• Automotive : robust energy-saving electronics demand due to Automotive electrification

• Panel: we keep raising share rate among top panel makers

• Power Supply : introducing new product lines to our key accounts to sustain growth

• Home Appliance: introducing HMI Solution to customers for mass production

• IC Shortage expected to last until 2Q22

• Meta Verse : causing prospecting AR / VR hardware market –benefitting industries of networking equipment / fiber communication / 5G IoT / AR&VR glasses / monitor / PC / smartphone

our deployment for Meta Verse:

• 3rd generation IC (SiC / GaN) application on EV charging equipment / fast charging/industrial power

• products for 5G / IoT /fiber communication : 5G Wireless Modules/ WiFi & BT solutions

• higher memory capacity demand due to VR /AR devices

• promoting in automotive panel market

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3.Questions & Answers

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