Holy Stone Enterprise Co., Ltd. · TWSE:3026

Holy Stone Enterprise — 2020 Investor Conference held by President Securities Corp.

19 slides from Holy Stone Enterprise's conference presentation, Dec 8, 2020

1. Slide 1: 2020 Investor Conference held by President Securities Corp.

   2020 Investor Conference held by President Securities Corp. 2020/12/08 Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

2. Slide 2: Safe Harbor Notice

   Safe Harbor Notice • The presentation and discussion contain certain forward-looking statements with respect to the results of operation, financial condition and current expectation. • The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual res

3. Slide 3: Meeting Agenda

   Meeting Agenda Company Snapshot Recent Operating Result Q & A Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

4. Slide 4: Company Snapshot

   Company Snapshot ❏ Capital Stock: NT$1,580 million ❏ Headquarter : Taipei, Taiwan ❏ Factory Site: Lungtan and Yilan, Taiwan ❏ Employees : 1,154 as of Dec. 31st, 2019 ❏ Product Line: Passive Components, Active Components, System & Module, and Others (peripherals) Copyright © Holy Stone Enterprise Co.

5. Slide 5: Company Snapshot

   Company Snapshot ❏ Holy Stone Worldwide Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

6. Slide 6: Operating Result: Consolidated Revenue By Territory

   Operating Result ❏ Consolidated Revenue By Territory Consolidated Revenue By Territory China Taiwan USA Others 6% 5% 8% 9% 3% 3% 1% 11% 2% 2% 18% 19% 24% 18% 22% 75% 72% 71% 67% 65% 2015 2016 2017 2018 2019 Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

7. Slide 7: Operating Result: Historical Trends

   Operating Result ❏ Historical Trends Net Income attribution to parent company Gross Porfit Net Sales 7,000 18,000 Gross Margin (%) 41 6,000 16,000 35.14 36 5,000 14,000 31 4,000 12,000 26 3,000 10,000 20.89 21 18.47 2,000 8,000 14.46 14.47 1,000 6,000 16 0 4,000 11 2015 2016 2017 2018 2019 2015 2016

8. Slide 8: Earnings Performance: Consolidated P/L

   Earnings Performance ❏ Consolidated P/L (In NT$ Millions) 2020 Q3 2020 Q2 2019 Q3 QoQ YoY Net Sales $ 4,157 $ 3,638 $ 4,053 14% 3% Gross Margin 20.2% 21.9% 20.1% -8% 0% Operating Expenses 380 392 415 -3% -8% Operating Income 458 403 402 14% 14% Operating Margin 11.0% 11.1% 9.9% -1% 11% Non-operating

9. Slide 9: Sales by Product

   Sales by Product ❏ Quarterly Trend Active Components Passive Components System & Module Others 100% 17% 12% 19% 23% 23% 20% 18% 27% 80% 20% 19% 24% 27% 21% 25% 23% 60% 26% 43% 35% 40% 32% 38% 44% 39% 33% 28% 20% 25% 28% 17% 19% 19% 22% 21% 13% 0% 18'Q4 19'Q1 19'Q2 19'Q3 19'Q4 20'Q1 20'Q2 20'Q3 Copyr

10. Slide 10: Earnings Performance: Consolidated Balance Sheet

    Earnings Performance ❏ Consolidated Balance Sheet Selected items from Balance Sheet 2020.9.30 2020.12.31 2019.9.30 (In NT$ Millions) Amount % Amount % Amount % Cash and Cash Equivalents $ 3,901 28% $ 4,576 32% $ 3,418 26% Accounts Receivable 3,367 24% 2,703 19% 3,084 23% Inventory 2,111 15% 2,451 18

11. Slide 11: Earnings Performance: Consolidated Cash Flow Statement

    Earnings Performance ❏ Consolidated Cash Flow Statement (In NT$ Millions) 2020 Jan.-Sep. 2019 Jan.-Sep. Income before Income Tax $ 1,291 $ 1,069 Net cash generated from operating activities 416 963 Net cash generated from (used in) investing activities (513) (535) Additions to property, plant and eq

12. Slide 12: Application (Product Portfolio for Passive Components)

    Application (Product Portfolio for Passive Components) Industrial Power Communication LED Automotive Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

13. Slide 13: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial Programmable Logic Controller, PLC； Robotic Arm, Motion Control； Power Communication IOT LED Automotive Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

14. Slide 14: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial Base Station Set-top box Power Communication Router Switch LED Aotomotive Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

15. Slide 15: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial LED Lighting Dimmers and Lighting Control Power Communication LED Automotive Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

16. Slide 16: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial Battery Management System, BMS； On-Board Charger； Power Communication Charging Station； Headlamps & Interior Lighting LED Automotive Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

17. Slide 17: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial Fast Charger(GaN)； Power supply for： Power Communication NB、PC； Server； IPC； Automotive LED Telecom Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

18. Slide 18: Recent Operating Events

    Recent Operating Events ❏ New Plant located in Longtan is still under construction, expecting to be finish in 2021 H2. ❏ Benefit from “work-from-home” business opportunities; passive components’ demand on both power and communication have shown steady growth. ❏ As we observed, Global Economy is stil

19. Slide 19: Q&A Thank you for listening!

    Q&A Thank you for listening! If you have any questions, Please drop us an e-mail at IR@holystone.com.tw, and we will get back to you shortly. Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

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