Zyxel Group — Call Transcript 2023

Mar 15, 2023

==> picture [125 x 51] intentionally omitted <==

Unizyx Holding Corporation(3704) 2022 Fourth Quarter Earnings Conference March 15, 2023

==> picture [128 x 38] intentionally omitted <==

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

2

22Q4 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)		22Q4 % 8,597 100.0% 6,427 74.8% 2,170 25.2% 1,487 17.3% 682 7.9% (185) -2.1% 497 5.8% 41 0.5% 456 5.3% 456 5.3% 1.15		22Q3 % 8,661 100.0% 6,669 77.0% 1,992 23.0% 1,275 14.7% 719 8.3% 217 2.5% 936 10.8% 170 2.0% 766 8.8% 763 8.8% 1.81	21Q4 % 6,396 100.0% 4,895 76.5% 1,501 23.5% 1,296 20.3% 206 3.2% 17 0.2% 223 3.5% 47 0.6% 176 2.8% 175 2.7% 0.39	QoQ% -0.7% -3.6% 8.9% 16.6%	YoY% 34.4% 31.3% 44.5% 14.7%

3

2022 Statements of Com rehensive Income p

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)	2022 % 30,516 100.0% 23,528 77.1% 6,988 22.9% 5,141 16.8% 1,847 6.1% 145 0.4% 1,992 6.5% 364 1.2% 1,627 5.3% 1,618 5.3% 3.87	2021 % YoY% 25,682 100.0% 18.8% 19,621 76.4% 19.9% 6,061 23.6% 15.3% 4,635 18.0% 10.9% 1,425 5.6% 29.6% 13 0.0% 1015.4% 1,438 5.6% 38.5% 343 1.3% 6.1% 1,095 4.3% 48.6% 1,097 4.3% 47.5% 2.49

4

22Q4 Revenue by Product

==> picture [948 x 418] intentionally omitted <==

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

Copper
Other, 11% Broadband,
Enterprise, 12%
14%
FWA, 7%
Fiber
Broadband,
56%
----- End of picture text -----

5

2022 Revenue by Product

==> picture [927 x 411] intentionally omitted <==

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

Copper
Other, 9%
Enterprise, Broadband,
13% 17%
FWA, 7%
Fiber
Broadband,
54%
----- End of picture text -----

6

22Q4 Revenue by Region

==> picture [732 x 423] intentionally omitted <==

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

Europe, 48%
North
Emerging America, 26%
Markets &
AsiaPac, 26%
----- End of picture text -----

7

2022 Revenue by Region

==> picture [445 x 175] intentionally omitted <==

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

Europe, 43%
North
America, 28%
Emerging
Markets &
AsiaPac, 29%
----- End of picture text -----

==> picture [736 x 236] intentionally omitted <==

8

Balance Sheets & Ke Indices y

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 Total Equity Book Value per Share Key Indices AR Turnover Days Inventory Turnover Days Current Ration (X)		2022.12.31 % 6,040 22% 8,449 31% 8,001 30% 171 1% 1,891 7% 2,511 9% 27,063 100% 14,402 53% 2,647 10% 17,049 63% 10,014 37% 25 85 112 1.6		2022.09.30 % 6,456 24% 7,525 29% 7,598 29% 194 1% 1,831 7% 2,644 10% 26,248 100% 14,148 54% 2,662 10% 16,810 64% 9,438 36% 24 71 104 1.6	2021.12.31 % 5,293 25% 5,543 26% 6,212 29% 147 1% 1,699 8% 2,500 11% 21,394 100% 9,524 45% 2,650 12% 12,174 57% 9,220 43% 20 81 112 1.8

9

Technology and Service Trends : Service Provider

• 2.5G PON optical network has become the mainstream of the Broadband market, 10G PON optical network and 5G FWA network are growing.

• In broadband network market, new wireless LAN technologies WiFi 6/ 7 are indispensable.

==> picture [271 x 124] intentionally omitted <==

• Unizyx continues in Service Provider

• (1) 2.5G PON fiber optical devices : Emerging areas bypass VDSL and adopts optical broadband and affordable WiFi AX3000.

• (2) High-end 10G PON optical equipment and 10G WiFi gateway: Europe and US demands Multi-Giga devices and cut-in WiFi 7 & skip WiFi 6E.

• (3) 5G FWA fixed wireless broadband devices: Europe and US expand the usage of FWA broadband, 5G FWA spreads to New Zealand and Australia.

• Operators will run service-oriented business model in the future, and BBF Broadband Forum sees changes in operators to promote open ecosystem. Unizyx works on the software technology of broadband solutions, and develops general-purpose products with open architecture to seize this market shift opportunity.

https://www.broadband-forum.org/open-broadband/open-broadband-software

10

Technology and Service Trends : Enterprise

• Strong demand from WiFi 6 & SMB market. YoY growth of WLAN 32% & Switch 26% in 2022, and both record high.

• The remote manageability of Nebula cloud networking helps boost H/W sales during COVID/WFH time.

• WiFi 6E/7 triggers the upgrade of network infrastructure (Mgig, PoE++, security gateway). R&D capability advances the time to market.

• Security license subscription is having strong demand in 2023.

• Zyxel Nebula improves the ease of use of commercial grade network equipments, which helps penetrate into small biz and home market.

==> picture [470 x 207] intentionally omitted <==

==> picture [98 x 40] intentionally omitted <==

==> picture [50 x 50] intentionally omitted <==

==> picture [49 x 41] intentionally omitted <==

==> picture [71 x 13] intentionally omitted <==

==> picture [214 x 40] intentionally omitted <==

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

2020 Italian 2021 2022
Channel Germany UK
Awards Channel MSP Innovation
Awards Awards
----- End of picture text -----

11

==> picture [184 x 100] intentionally omitted <==

2023 Outlook

12

Q&A

==> picture [59 x 31] intentionally omitted <==

13

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

14