Zyxel Group — Call Transcript 2022

Aug 12, 2022

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Unizyx Holding Corporation(3704) 2022 Second Quarter Earnings Conference August 12, 2022

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Unizyx Confidential

Safe Harbor Notice

• The statements contains historical information and forwardlooking statements.

• Such forward-looking statements involve unknown risks and uncertainties , which may cause the actual performance, financial condition or results of forecast of Unizyx Holding Corporation to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements

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22Q2 Statements of Comprehensive Income

Unit: NT$ Million Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Non-Operating Income Income before Tax Income Tax (Gain) Net Income Net Income to Shareholders of the Parent Company EPS (NT Dollar)		22Q2 % 6,229 100.0% 4,767 76.5% 1,462 23.5% 1,215 19.5% 247 4.0% (123) -2.0% 124 2.0% 44 0.7% 80 1.3% 74 1.2% 0.17		22Q1 % 7,029 100.0% 5,665 80.6% 1,364 19.4% 1,164 16.6% 200 2.8% 236 3.4% 436 6.2% 111 1.6% 325 4.6% 326 4.6% 0.74	21Q2 % 6,084 100.0% 4,659 76.6% 1,425 23.4% 1,084 17.8% 341 5.6% 85 1.4% 426 7.0% 59 1.0% 367 6.0% 367 6.0% 0.84	QoQ% -11.4% -15.9% 7.1% 4.4%	YoY% 2.4% 2.3% 2.5% 12.1%

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22H1 Statements of Comprehensive Income

Unit: NT$ Million Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Non-Operating Income (Loss) Income before Tax Income Tax (Gain) Net Income Net Income to Shareholders of the Parent Company EPS (NT Dollar)	22H1 % 13,258 100.0% 10,432 78.7% 2,826 21.3% 2,379 17.9% 447 3.4% 113 0.9% 560 4.2% 155 1.2% 405 3.1% 400 3.0% 0.91	21H1 % YoY% 12,961 100.0% 2.3% 10,205 78.7% 2.2% 2,756 21.3% 2.5% 2,192 16.9% 8.5% 564 4.4% -20.7% 29 0.2% 289.7% 593 4.6% -5.6% 100 0.8% 55.0% 493 3.8% -17.7% 494 3.8% -19.0% 1.12

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22Q2 Revenue by Product

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Copper
Other, 7%
Broadband,
Enterprise,
17%
16%
FWA, 7%
Fiber
Broadband,
53%
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22H1 Revenue by Product

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Other, 8% Copper
Enterprise, Broadband,
14% 20%
FWA, 7%
Fiber
Broadband,
51%
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22Q2 Revenue by Region

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Europe, 45%
North
America, 24%
Emerging
Markets &
AsiaPac, 31%
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22H1 Revenue by Region

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Europe, 44%
North
America, 26%
Emerging
Markets &
AsiaPac, 30%
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Balance Sheets & Key Indices

Unit: NT$ Million Cash and Cash Equivalents Accounts Receivable Inventories Long-term Investments Property, Plant and Equipment Other Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities	22Q2 % 2,991 14% 5,860 28% 7,460 35% 180 1% 1,781 8% 2,744 13% 21,016 100% 9,317 44% 2,637 13% 11,954 57%	22Q1 % 21Q2 % 6,431 27% 3,444 19% 5,773 25% 5,925 32% 6,704 29% 4,903 26% 182 1% 174 1% 1,752 7% 1,653 9% 2,668 11% 2,412 13% 23,510 100% 18,511 100% 11,529 49% 9,304 50% 2,646 11% 672 4% 14,175 60% 9,976 54%
Total Equity Book Value per Share Key Indices AR Turnover Days Inventory Turnover Days Current Ration (X)	9,062 43% 20 85 135 1.9	9,335 40% 8,535 46% 21 19 72 91 103 92 1.7 1.6

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Dec/23’
WFA WiFi 7
Certification
May/21’ Nov/22’ May/24’
Draft 1.0 Draft 3.0(R1) Final (R2)
2021 2022 2023 2024 2025
Retail Router Android Phone iPhone
Q1, 2021 Late 2021/ early 2022 2022 (Sept. iPhone14)
6GHz
NB Consumer devices ISP Gateway
Q1, 2021 2021-2022 (Flagship TV) Q4, 2022
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WiFi 7

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2.4GHz/5GHz
/6Ghz
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Wave 1 Wave 2
Retail Router Android Phone NB Consumer devices iPhone
H1, 2023 H2, 2023 Q1, 2024 2024 2025
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Unizyx WiFi 7 ISP Gateway
Product Lines H1, 2024
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OLT

 FTTH Market expect to grow from USD$ 9.3B (2022) to USD$13.6B (2026) driven by  COVID-19 move work, healthcare and learning on internet  Government funding for fiber infrastructure build  Multi-G Service push network equipment upgrade

 PON Technology adopted by more use cases like enterprise and 5G connectivity  Cable TV operators start to push PON

• New FTTH Network will adopt software centric architecture with open interface, SDN and NFV concept. Zyxel have comply this and certified with ONF open framework in Y2022.

• We will start 50G-PON Technology Research and Development in 2HY2023

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Home Enterprise Small cell/AP

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2022 Outlook

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Q&A

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Thank you www.unizyx.com.tw ir@unizyx.com.tw

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