ZERO ONE — Annual Report 2021

Apr 20, 2022

General Manager / Nancy Huang

Zero One Technology Co., Ltd. ©2014.8.5

Agenda

• Company Profile and Overview

• Current Situation and Trend of Taiwan's ICT industry

• Operating Strategy and Project Structure

• 2021 Operations Review

• Financial Condition & Analysis

• Value Proposition & Future Operation Prospects

• Q & A

2

Disclaimer

• ➢

This document is provided by ZERO ONE TECHNOLOGY CO., LTD. Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountants or independent experts. The Company does not give any representations or warranties (express or implied) as to the accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. The Company, its affiliates and their representatives do not take any responsibility nor accept any liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any loss or damages arising from the use of this document or the information contained herein or anything related to this document.

➢ This document may contain forward-looking and strategic statements, including but not limited to all statements which address activities, events or developments that the Company expects or anticipates to hold in the future based on the projections of the Company going forward, as well as various factors and uncertainness beyond the Company's control. Therefore, the actual results may differ materially from those contained in these forward-looking statements. Please do refer to the information on MOPS website as the main basis if any adjustment has been made.

➢

This presentation is not and cannot be construed as an offer to purchase or sell securities or any other financial products nor considered as a solicitation of an offer.

3

Company Profile & Overview

4

OUTLINE

• Founded in： 1980

• TPEX： 2000

Unit：NT$ Million

Zero One still achieves solid growth in revenue under different stages of the business cycle!!

• TWSE： 2002

• Capitals：NT$1.52 billion

• ：

• Employees 300 employees

• Partners：More than 1,000

• ：

• 2021 operating revenues NT$ 12.88 billion

14000 12000 10000 8000 6000 4000 2000 0

==> picture [297 x 120] intentionally omitted <==

• ，

• (2021 Consolidated YoY +30.9%)

• 2022Q1 operating revenues：NT$3.07 billion

5

Milestones

2017

Strive with the goal of being an ESG enterprise & move forwards towards corporate collectivization！

==> picture [32 x 12] intentionally omitted <==

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

2015
----- End of picture text -----

2014

Enter AI market & build deep learning platform for enterprises

Enter into Big Data market management, cultivate further the IT application solutions for enterprises

2013

Invest in cloud content delivery, proactively strategize information security market and service structure

2010

Enter Enterprise Storage Market to secure private cloud transformation business opportunities

With the aim to complete partnership ecological sphere & expand market scale, Zerone Win Investment Co. Ltd. was set up and in the same year：

Invest in cloud consulting service team～subsidiary company was set up to cultivate cloud market.

Set up in response to information security & IT automation needs.

==> picture [71 x 25] intentionally omitted <==

==> picture [61 x 30] intentionally omitted <==

6

Capital increase completed. Accelerate the transformation & strategic layout of Zero One

==> picture [152 x 106] intentionally omitted <==

• Accelerate the layout and investment of strategic partnerships

• Provide more diversified brand integration marketing resources

==> picture [171 x 90] intentionally omitted <==

• Expansion of working team by focusing on the selection, training, retention and use of talents

• • Upgrade the Group’s intelligence system needed for digital transformation.

7

Zero One continues to create irreplaceable values in the 1995~2005 Era of the IT ecological chain of Distribute renowned distributors! companies such as Cisco & MicroSoft 2006 ~ 2010 Solid Channel Era of Internet & Foundation ! virtualization application Rooted in enterprise project market, cultivate - technology based SI 2011 ~ 2020 : In the era of Cloud/Ground 2021 ~ the Big Future : integration and IT automation, under the needs of comprehensive Brand Distribution, integration, Service OEM Provider, - Create cross brand Partnering for solution experience center Customer Success ! Shorten the implementation time of the applications

8

Distribution Performance of Brands ranked No. 1 in the Taiwan market

==> picture [144 x 112] intentionally omitted <==

==> picture [123 x 51] intentionally omitted <==

==> picture [134 x 25] intentionally omitted <==

==> picture [198 x 45] intentionally omitted <==

==> picture [127 x 22] intentionally omitted <==

==> picture [123 x 49] intentionally omitted <==

==> picture [130 x 27] intentionally omitted <==

==> picture [134 x 35] intentionally omitted <==

==> picture [141 x 45] intentionally omitted <==

==> picture [175 x 62] intentionally omitted <==

9

Exclusive Distribution Brands in Taiwan

==> picture [194 x 71] intentionally omitted <==

==> picture [145 x 58] intentionally omitted <==

==> picture [120 x 90] intentionally omitted <==

==> picture [140 x 42] intentionally omitted <==

==> picture [170 x 42] intentionally omitted <==

==> picture [146 x 65] intentionally omitted <==

==> picture [162 x 35] intentionally omitted <==

==> picture [157 x 31] intentionally omitted <==

==> picture [159 x 101] intentionally omitted <==

==> picture [146 x 56] intentionally omitted <==

10

Current Situation and Trend of Taiwan's ICT industry

11

Industry Upgrade Accelerates, Zero One Helps Companies Transform while Maintaining Stability Through the Power of Technology！

• Under the influence of the epidemic and the international political and economic struggle, the long-term market trend has begun to move from cost-based considerations to the strategy of reliability as the primary goal. The only way for Taiwanese enterprises, which operate in the middle of the two major economic circles of the East and the West, to cope and thrive in this volatile market environment, is through accelerating digital transformation!

Cost reduction through globalized layout

Close and stable regional partners

==> picture [227 x 182] intentionally omitted <==

12

According to the latest CIO survey, the market of Taiwan's ICT domestic demand is still growing steadily

• In particular, under the three major business focuses which Zero One ， has cultivated deeply leading brand service provider is still the key procurement for enterprise CIOs!

The ration of increase for IT budget next year?

The major procurement item for NetCom category next year ?

The major procurement item for Information Security category next year?

The major procurement item for infrastructure

category next year?

13

Operating Strategy & Project Structure

14

Zero One’s Operating Strategy

==> picture [264 x 88] intentionally omitted <==

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

Add Value to
Service Distribution
----- End of picture text -----

==> picture [255 x 88] intentionally omitted <==

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

Brand Distribution
Layout
----- End of picture text -----

Deepen Customer Stickiness

Expand Brand Market Share

Technology Optimization

Transform Processes into Platforms Transform Services into Tangible Products

Adhere to Market Trends Secure Channel Partners Duplicate Successful Business Models

15

Zero One’s Brand Distribution Layout

==> picture [388 x 387] intentionally omitted <==

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

Team
Internet
System
management
AI & Big data Information
-
Value Added
security
Integration
PI analysis
Storage Cloud
Back up
Educational
Technical
We Commit To Excellence Training
Team
----- End of picture text -----

16

Zero One's Strategy for Distribution Services

==> picture [589 x 301] intentionally omitted <==

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

Solution planning and co-sales
Consulting
Services
Project integration and change management
Tech. Customer site integration set-up and validation
Operations &
Maintenance Product-related technical implementation and
after-sales customer service support
Promotion Educational Training and Technical
Professionally
Certification Center
Ecosystem of Partners
Enterprise Clients
----- End of picture text -----

17

In response to the post epidemic era, channel management is moving towards diversified and precise marketing (Updated: 2021 Year End)

==> picture [609 x 285] intentionally omitted <==

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

+30K (Updated: 2021 Year End)
clients in
250 marketing
database
+6,000
client
+230 fans @FB
events
sessions of
live-
250
+1300
streaming
training/
subscriptions
certification @Youtube
classes
----- End of picture text -----

18

2021 Operations Review

19

2021 Operations Review

Accumulated Sales Revenue in 2020 9.83 billion

Accumulated Sales Revenue in 2021 12.88 billion

Big Data & Application 4%	Big Data & Application 4%	Other 0%		Big Data & Application 5%		Other 0%
Cloud Platform & Application 18%		IT Infrastructure 39%		Cloud Platform & Application 19%		IT Infrastructure 29%
Network & Information				Network & Information
Security 39%				Security 47%
		Sales revenue				Sales revenue
		(Unit : thousand)				(Unit : thousand)
	Product Category	2021		Product Category		2020
	IT Infrastructure	5,063,096		IT Infrastructure		2,889,703
	Network & Information Security	5,057,799		Network & Information Security		4,621,943
	Cloud Platform & Application	2,239,608		Cloud Platform & Application		1,844,467
	BigData & Application	513,511		BigData & Application		474,176
	Other	4,163		Other		4,029
	Consolidated operatingrevenue	12,878,177		Consolidated operatingrevenue		9,834,318

20

Financial Conditions & Analysis

Senior Director of Financial Management Division / Michelle Chin

21

Consolidated Revenue of Previous Years

Unit: NT$ 100 Million

==> picture [682 x 289] intentionally omitted <==

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

140
129
105 98
89
66
70 59 60 95% growth
54
50 in 3 years
43
39 40
35
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
----- End of picture text -----

22

Bar Chart of Condensed Income Statement

Operating Revenue Gross Profit Operating Expenses Net Profit

Unit: NT$ Million

==> picture [672 x 269] intentionally omitted <==

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

Profit ratio 4.16%
536
26%
Profit ratio 4.48% 669
1,296
Profit ratio 3.92%
440
26%
349 541 24%
496 1,046
896
252 17%
195
401
353 682 31% 12,878
588
8,915 10% 9,834
6,647
5,967
2017 2018 2019 2020 2021
----- End of picture text -----

23

Condensed Consolidated Balance Sheet

Unit: NT$ Million

Items	2020/12/31	2021/12/31	YOY
	Amount %	Amount %	Amount %
Cash and financial assets- current	1,237 23%	2,258 29%	1,021 83%
Notes, trade receivable	2,140 39%	2,885 38%	745 35%
Inventories	1,242 23%	1,647 21%	405 33%
Long-term investment	454 8%	465 6%	11 2%
Total assets	5,471 100%	7,676 100%	2,205 40%
Trade payables	2,245 41%	3,008 39%	763 34%
Total liabilities	2,802 51%	3,732 49%	930 33%
Total equity attributable to owners of the Company	2,657 49%	3,908 51%	1,251 47%
Non-controlling interests	12 0%	36 0%	24 200%
Total equity	2,669 49%	3,944 51%	1,275 48%

24

Financial Index Analysis

Horizontal Item 2017 2018 2019 2020 2021 Average 42.16 49.83 53.55 51.21 48.62 50.70 Debts ratio (%) 211.43 174.47 180.41 167.54 184.20 184.44 Current Ratio(%) 178.19 130.09 126.59 121.91 139.56 112.14 Quick Ratio(%) Average 101.10 97.33 80.39 77.49 71.15 59.93 Collection Days Average 31.73 43.81 51.48 53.21 45.51 91.00 Inventory Turnover Days Average 81.29 88.81 83.91 88.81 82.77 83.60 Payables Days

25

EPS & Dividend Payout Ratio of Previous Years

==> picture [685 x 318] intentionally omitted <==

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

Unit: NT$ Dollar
5.00
4.24
4.00
3.55 3.60
3.00
2.85
3.00
2.06 2.00
2.00
1.61
1.50
1.30
1.00
81% 85% 85%
73% 70%
0.00
2017 2018 2019 2020 2021
EPS Cash/Stock Dividend Dividend Payout Ratio
----- End of picture text -----

26

Unit: NT$ Dollar

ROE of Previous Years

==> picture [691 x 283] intentionally omitted <==

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

4.50 4.24 25%
4.00
3.55
20%
3.50
2.85
3.00
17.3%
15%
16.2%
2.50
2.06 15.1%
2.00
1.61
10%
11.7%
1.50
9.5%
1.00
5%
0.50
0.00 0%
2017 2018 2019 2020 2021
EPS ROE
----- End of picture text -----

27

Value Proposition & Future Operation Prospects

28

Acknowledgements from Manufacturers

• 2021 wins Dell Technologies GOLD PARTNER

• 2021 wins PaloAlto Excellent Support of Year

• 2021 wins Progress The Best Distributor

• 2021 wins INFINITIES The Best Distributor

• 2021 wins Microsoft The Best Cloud Distributor of the Year

• 2020 wins Microsoft The Best Cloud Distributor of the Year

• 2020 wins vmware Distributor Sales Champion of the Year

• 2020 wins F5 APAC DS2 Program FY20 Champion

• 2020 wins FireEye Most Valuable Distributor of the Year

• • 2020 wins Vivotek The Best Distributor in Asia Pacific Region

Best Distributor of the Year

• 2020 wins NetApp The Best Distributor

• 2020 wins Nutanix Best Distributor of the Year

29

Zero One’s Value Proposition

Provide platforms which allow professional IT(SI) & industry experts (ISV) to interact & engage with manufactures’ innovative technologies and actualize new business opportunities. ( Zerone Solution & Service Platform )

==> picture [130 x 51] intentionally omitted <==

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

價值創造者
Value Created
----- End of picture text -----

Partner value

==> picture [129 x 51] intentionally omitted <==

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

附加價值者
Value Added
----- End of picture text -----

Continue to integrate & improve manufactures’ solutions based on successful cases so as to facilitate distribution partners’ continuous efforts in cultivating high-growth clients

==> picture [129 x 52] intentionally omitted <==

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

價值提供者
Value Offered
----- End of picture text -----

Provide comprehensive products & services which satisfy basic market demands.

Volume Business : Focus on fulfillment + resale

Investment in service and value transformation

30

Future Operation Prospects

==> picture [305 x 314] intentionally omitted <==

31

==> picture [650 x 54] intentionally omitted <==

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

Thank you for attending the online investor conference
----- End of picture text -----

==> picture [212 x 134] intentionally omitted <==

Zero One Technology Co., Ltd. ©2014.8.5