Zyxel Group — Call Transcript 2025

Nov 5, 2025

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Zyxel Group Corporation(3704) 2025 Third Quarter Earnings Conference November 05, 2025

Unizyx Confidential

Safe Harbor Notice

 The statements contains historical information and forward-looking

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.

Zyxel Group Corporation 2

25Q3 Statements of Comprehensive Income

Unit: NT$ Million Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Non-Operating Income (Loss) Income (Loss) before Tax Income Tax (Gain) Net Income (Loss) Net Income to Shareholders of the Parent Company EPS (NT Dollar)		25Q3 % 6,417 100.0% 4,502 70.2% 1,916 29.8% 1,434 22.3% 482 7.5% 213 3.3% 695 10.8% 135 2.1% 560 8.7% 555 8.6% 1.37	25Q2 % 6,187 100.0% 4,682 75.7% 1,505 24.3% 1,362 22.0% 143 2.3% (524) -8.5% (381) -6.2% (1) 0.1% (380) -6.1% (380) -6.1% (0.94)	24Q3 % 6,401 100.0% 4,946 77.3% 1,455 22.7% 1,530 23.9% (75) -1.2% (60) -0.9% (135) -2.1% (30) -0.5% (105) -1.6% (113) -1.8% (0.28)	QoQ% 3.7% -3.8% 27.3% 5.2%	YoY% 0.3% -9.0% 31.6% -6.3%

Zyxel Group Corporation 3

2025 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)		25 Q1~3 % 19,639 100.0% 14,626 74.5% 5,014 25.5% 4,236 21.5% 778 4.0% (115) -0.6% 663 3.4% 195 0.9% 468 2.4% 456 2.3% 1.13	24 Q1~3 % YoY% 18,469 100.0% 6.3% 14,018 75.9% 4.3% 4,451 24.1% 12.6% 4,503 24.4% -5.9% (52) -0.3% 1596.2% 164 0.8% -170.1% 112 0.6% 492.0% 31 0.2% 532.4% 82 0.4% 470.7% 62 0.3% 635.5% 0.15

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25Q3 Revenue by Product

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Zyxel Group Corporation 5

2025 Q1~Q3 Revenue by Product

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25Q3 Revenue by Region

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2025 Q1~Q3 Revenue by Region

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Zyxel Group Corporation 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)		2025.09.30 % 2,755 12% 7,113 32% 5,852 26% 360 2% 2,347 11% 3,861 17% 22,288 100% 10,167 46% 672 3% 10,839 49% 11,449 51% 28 96 119 1.7	2025.06.30 % 3,163 14% 6,349 29% 5,758 26% 354 2% 2,349 11% 3,918 18% 21,891 100% 8,579 39% 2,565 12% 11,144 51% 10,747 49% 26 110 109 2.0	2024.09.30 % 3,222 15% 6,249 28% 5,565 25% 275 1% 2,546 12% 4,141 19% 21,998 100% 8,578 39% 2,627 12% 11,205 51% 10,793 49% 26 88 102 2.0

Zyxel Group Corporation 9

Service Provider Technology & Service Trend – End to End Solution

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Cloud Services and Management OLT Connectivity CPE
5G NR/4G LTE
IP
5G NR/4G LTE
Mesh
5G NR/4G LTE
FTTx
▪ XGS-PON Mesh
▪ White-box ONT Mesh WiFi 6/5/7
▪ Switch
▪ MSAN/DSLAM
▪ VDSL2 ETH
▪
Data Analytics for CPE
connections
▪ Proactive Diagnosis and CPE
Repair for subscriber ▪ XGS-PON
devices
▪ G.fast
▪ Value-Added Services
xDSL ▪ Ethernet CPE
▪ AI
▪ xDSL
IP Zyxel One
Zyxel One
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SMB Network Technology & Service Trend – AI CyberSecurity & Cloud Management

K Manage more than 300K+ SMB Network k

More than 1M concurrent connected devices k

More than 100K Network Administrators

Manage more than 200K companies

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SMB Network Technology & Service Trend – AI CyberSecurity & Cloud Management

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Zyxel Group Corporation 12

SMB Network Technology & Service Trend – AI CyberSecurity & Cloud Management

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Zyxel Group Corporation 13

Outlook

• Expand beyond standalone CPE products to end-to-end solutions

• Transition from single CPE sales to end-to-end broadband solutions (OLT/ONT)

• Provide cloud management and cybersecurity services to enhance subscription revenue and customer stickiness

• Vietnam manufacturing base to strengthen supply chain resilience and boost U.S./EU competitiveness

• Comply with U.S. non-China manufacturing and EU third-country production requirements

• Increase in-house production for channel products to improve cost efficiency and market agility

• Expand defense business — long-term investment beginning to deliver results

• Deepen ESG implementation to enhance operational performance and market competitiveness

Zyxel Group Corporation 14

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Q&A

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Unizyx Confidential
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Unizyx Confidential

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