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

Holy Stone Enterprise — Investor Conference held by President Securities Corp. (March 2021)

21 slides from Holy Stone Enterprise's conference presentation, Mar 23, 2021

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

   Investor Conference held by President Securities Corp. 2021/03/23 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: Longtan and Yilan, Taiwan ❏ Employee Number: 966 for Parent Company (2020.12.31) ❏ Product Line: Passive Components, Active Components, System & Module, and Others (peripherals) Copyright © Holy Stone En

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 5% 8% 9% 10% 3% 1% 11% 2% 2% 1% 18% 19% 18% 18% 22% 75% 72% 71% 71% 65% 2016 2017 2018 2019 2020 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 Gross Margin (%) Net Sales 41 7,000 18,000 35.14 36 6,000 16,000 31 5,000 14,000 4,000 12,000 26 20.89 20.78 3,000 10,000 21 18.47 2,000 8,000 16 14.47 1,000 6,000 0 4,000 11 2016 2017 2018 2019 2020 2016 2017

8. Slide 8: Earnings Performance: Income Statement by Quarter

   Earnings Performance ❏ Consolidated Income Statement (by Quarter) (In NT$ Millions) 2020 Q4 2020 Q3 2019 Q4 QoQ YoY Net Sales $ 3,869 $ 4,157 $ 3,763 -7% 3% Gross Margin 18.1% 20.2% 17.7% -10% 2% Operating Expenses 426 380 774 12% -45% Operating Income 273 458 (108) -40% 352% Operating Margin 7.1% 1

9. Slide 9: Earnings Performance: Income Statement by Year

   Earnings Performance ❏ Consolidated Income Statement (by Year) Growth Rate (In NT$ Millions) 2020 2019 (YoY) Net Sales $ 14,830 $ 14,601 2% Gross Margin 20.8% 20.9% -1% Operating Expenses 1,572 2,188 -28% Operating Income 1,510 862 75% Operating Margin 10.2% 5.9% 72% Non-operating Items 82 86 -5% Ne

10. Slide 10: Sales by Product: Quarterly Trend

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

11. Slide 11: Sales by Product: Yearly Trend

    Sales by Product ❏ Yearly Trend Active Components Passive Components System & Module Others 100% 13% 11% 14% 17% 23% 80% 26% 30% 23% 21% 24% 60% 25% 32% 37% 40% 47% 33% 20% 36% 27% 25% 16% 20% 0% 2016 2017 2018 2019 2020 Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

12. Slide 12: Earnings Performance: Consolidated Balance Sheet

    Earnings Performance ❏ Consolidated Balance Sheet Selected items from Balance Sheet 2020.12.31 2020.9.30 2020.12.31 (In NT$ Millions) Amount % Amount % Amount % Cash and Cash Equivalents $ 4,460 30% $ 3,901 28% $ 4,576 32% Accounts Receivable 3,109 21% 3,367 24% 2,703 19% Inventory 2,281 16% 2,111 1

13. Slide 13: Earnings Performance: Consolidated Cash Flow Statement

    Earnings Performance ❏ Consolidated Cash Flow Statement (In NT$ Millions) 2020 2019 Income before Income Tax $ 1,592 $ 948 Net cash generated from operating activities 901 1,534 Net cash generated from (used in) investing activities (693) (633) Additions to property, plant and equipment (676) (778)

14. Slide 14: Application (Product Portfolio for Passive Components)

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

15. Slide 15: Application (Passive Components)

    Application (Passive Components) Related Products： Industrial Programmable Logic Controller, PLC； Automation Machine； Power Communication IOT。 Automotive New Energy Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

16. Slide 16: Application (Passive Components)

    Application (Passive Components) Related Products： Industrial Base Station ； Set-top box ； Power Communication Router ； Switch 。 Automotive New Energy Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

17. Slide 17: Application (Passive Components)

    Application (Passive Components) Related Products： Industrial LED Lighting ； Solar System 。 Power Communication Automotive New Energy Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

18. Slide 18: Application (Passive Components)

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

19. Slide 19: Application (Passive Components)

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

20. Slide 20: Recent Operating Events

    Recent Operating Events ❏ New Plant located in Longtan is still under construction, expect to start operate gradually in 2021 Q3 . ❏ The resolution of distributing NT$8.0 cash per share for 2020 will be submit and report during the annual shareholders meeting on June 7th, 2021. ❏ Current utilization

21. Slide 21: 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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