Zyxel Group — Interim / Quarterly Report 2020

Mar 31, 2021

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Unizyx Holding Corporation(3704)

2020 Fourth Quarter Earnings Conference

March 31, 2021

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.

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20Q4 Statements of Comprehensive Income

Unit: NT$ Million Net Sales Cost of Goods Sold		20Q4 % 7,149 100.0% 5,238 73.3%		20Q3 % 6,021 100.0% 4,447 73.9%	19Q4 % 5,034 100.0% 4,173 82.9%	QoQ% 18.7% 17.8%	YoY% 42.0% 25.5%
Gross Profit Operating Expenses Operating Income (Loss) Non‐Operating Income (Loss) Income (Loss) before Tax Income Tax (Gain) Nt I L		1,911 26.7% 1,331 18.6% 580 8.1% 23 0.3% 603 8.4% 172 2.4% 431 60%		1,574 26.1% 1,076 17.9% 498 8.3% (15) ‐0.3% 483 8.0% 107 1.8% 376 63%	861 17.1% 1,239 24.6% (378) ‐7.5% 6 0.1% (372) ‐7.4% (176) ‐3.5% 196 39%	21.4% 23.7%	122.0% 7.5%
e ncome (oss) Net Income (Loss) to Shareholders of the Parent Company EPS (NT Dollar)		. 428 6.0% 0.98		. 376 6.3% 0.88	() ‐. (194) ‐3.9% (0.45)

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2020 Statements of Comprehensive Income

Unit: NT$ Million	2020 %	2019 %	YoY%
Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income (Loss)	22,251 100.0% 16,471 74.0% 5,780 26.0% 4,487 20.2% 1,293 5.8%	24,026 100.0% 18,935 78.8% 5,091 21.2% 4,915 20.5% 176 0.7%	‐7.4% ‐13.0% 13.5% ‐8.7%
Non‐Operating Income (Loss) Income (Loss) before Tax Income Tax (Gain) Net Income (Loss) Net Income (Loss) to	(117) ‐0.5% 1,176 5.3% 345 1.6% 831 3.7%	(214) ‐0.9% (38) ‐0.2% (140) ‐0.6% 102 0.4%
Shareholders of the Parent Company EPS (NT Dollar)	828 3.7% 1.91	107 0.4% 0.25

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20Q4 Revenue by Product

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20Q4 Revenue by Region

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Balance Sheets & Key Indices

	Unit: NT$ Million Cash and Cash Equivalents		20Q4 % 4,078 21%		20Q3 % 3,381 19%	19Q4 % 3,219 21%
	Accounts Receivable Inventories Long‐term Investments Property, Plant and Equipment Other Assets Total Assets		5,846 30% 4,901 25% 122 1% 1,592 8% 3,049 16% 19,588 100%	5,076 28% 4,736 31% 4,738 26% 3,485 23% 82 0% 60 0% 1,562 9% 1,639 11% 3,053 17% 2,347 15% 17,892 100% 15,486 100%
	Current Liabilities Non‐Current Liabilities Total Liabilities		10,582 54% 701 4% 11,283 58%	9,558 53% 7,638 49% 596 3% 606 4% 10,154 57% 8,244 53%
	Total Equity		8,305 42%	7,738 43% 7,242 47%
	Key Indices
	AR Turnover Days Inventory Turnover Days Current Ration(X)		70 85 1.6	71 86 85 82 1.5 1.6

Unizyx Confidential

： Technology And Service Trends Broadband Telecommunications Market(I)

Fast-growing 10G Fiber Broadband Market

Telecom operators are accelerating the adaption of the next-generation 10G optical fiber broadband technology to construct broadband access networks.

Fast‐growing 10G Fiber Broadband Market

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Booming 10G Fiber CPE Demand

Providing Gigabit broadband and pursuing best-in-class network experience for home subscribers brings huge business opportunities for 10G Active Fiber CPE and 10G Passive Fiber (PON) ONU.

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Booming 10G Fiber CPE Demand

Open(Virtual) OLT Transformation

Investing in the development of Open or called Virtualized OLT technology brings a new growth momentum for the organization.

Open OLT Virtual OLT Transformation

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Unizyx Confidential

： Technology And Service Trends Broadband Telecommunications Market(II)

Rapidly-Growing 5G FWA

5G FWA is becoming a popular alternative architecture for Telecom to build their broadband access network. Operators anticipate optimistic growth of the proportion of 5G FWA users in overall portfolio.

Rapidly Growing 5G FWA

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Long-term Investment Results Rich Product Portfolio

Our company has invested in 5G CPE-related technology R&D as early as 2018, the technological leadership and complete product portfolio enables the Group as the top three 5G CPE suppliers worldwide.

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Long-term investment Results Rich Product Portfolio

Telenor Norway Selects Zyxel

Telenor Norway selects Zyxel as sole partner for deployment of the world's fastest and largest 5G fixed wireless access network in Q4 of 2020.

Telenor Norway selects Zyxel for its 5G roll‐out

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Unizyx Confidential

： Technology And Service Trends Broadband Telecommunications Market(III)

More Wi‐Fi Devices Higher Wi‐Fi Speed

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More Wi-Fi Devices & Higher Speed It has become normal for multiple Wi-Fi connected devices use multiple bandwidthintensive and delay-sensitive applications at the same time in home environment. The arising expectation for better Wi-Fi experience promotes the demand for improving Wi-Fi speed and coverage.

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Future‐proofed deployments with WiFi 6

Future-proofed Wi-Fi 6

With a peak data rate up to 10 Gbps, Wi-Fi 6 is truly game changer for broadband CPE market. New features deliver speed Intelligently and efficiently, Wi-Fi 6 quickly become a technology that subscribers will expect as a standard part of their CPE.

Wi‐Fi Mesh Ensures Wi‐Fi Experience

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Wi-Fi Mesh Ensures Wi-Fi Experience Nowadays, broadband and Wi-Fi have become essential applications and experience enablers. Service providers have launched Wi-Fi mesh systems to their broadband customers to support wholehome Wi-Fi experience.

Unizyx Confidential

： Technology And Service Trends Small and Medium Business (I)

Managed Service Provider Evolving

Managed Service Provider Evolving

The strategy is to assist existing traditional channel partners to transform into a Managed service provider (MSP). Through our solutions, our partners can protect their interests and cultivate loyal channel partners to expand market share.

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Wi-Fi 6 Wait No Wore

Leading competitors launched the latest WiFi 6 EAP into the market confirms our ability to launch the right product at the right timing. We are optimistic that Wi-Fi 6 products will continue to drive the demand for network infrastructure upgrade in the SMB market.

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Wi-Fi 6 Wait No More

Focusing On Growing Security Market

The demand for Cybersecurity solution in SMB has maintained a high growth rate. The high entry barriers and high value-added characteristics of cybersecurity products ensure our competitive advantage and profitability.

Focusing On Growing Security Market

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Unizyx Confidential

： Technology And Service Trends Small and Medium Business (II)

Integrated Cloud Network Security Solution

We’re launching an next generation cloud network security solution Integrating selfdeveloped security firewalls, switches, and Wi-Fi APs into our industry leading Nebula

cloud network management platform, making enterprise-grade cloud network

Integrated Cloud Network Security Solution

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solution available and affordable for SMB.

Embrace License SubscriptionBased Business Model

Our winning strategy is defined as leveraging hardware sales as the stepping stone of license subscription-based business growth in existing installed customer base. We’ll continue bringing more value-added software services to increase customer

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Embrace License Subscription Business Model

loyalty and sustainable revenue contribution for the company.

Unizyx Confidential

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Thank you

www.unizyx.com.tw ir@unizyx.com.tw

Unizyx Confidential