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, May 12, 2020

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

   2020 Investor Conference held by President Securities Corp. 2020/05/12 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 Q1 2019 Q4 2019 Q1 QoQ YoY Net Sales $ 3,166 $ 3,763 $ 3,032 -16% 4% Gross Margin 23.7% 17.7% 27.3% 34% -13% Operating Expenses 373 774 569 -52% -34% Operating Income 376 (108) 260 447% 45% Operating Margin 11.9% -2.9% 8.6% 513% 39% Non-

9. Slide 9: Sales by Product

   Sales by Product ❏ Quarterly Trend Active Components Passive Components System & Module Others 100% 16% 17% 12% 19% 19% 23% 23% 27% 80% 20% 22% 19% 24% 27% 25% 23% 60% 26% 43% 40% 50% 50% 39% 33% 32% 44% 28% 20% 22% 25% 17% 19% 19% 12% 12% 13% 0% 18'Q2 18'Q3 18'Q4 19'Q1 19'Q2 19'Q3 19'Q4 20'Q1 Copyr

10. Slide 10: Earnings Performance: Consolidated Balance Sheet

    Earnings Performance ❏ Consolidated Balance Sheet Selected items from Balance Sheet 2020 Q1 2019 Q4 2019 Q1 (In NT$ Millions) Amount % Amount % Amount % Cash and Cash Equivalents $ 4,904 34% $ 4,576 32% $ 5,124 36% Accounts Receivable 2,566 18% 2,703 19% 2,317 16% Inventory 2,288 16% 2,451 18% 2,475

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

    Earnings Performance ❏ Consolidated Cash Flow Statement (In NT$ Millions) 2020 Q1 2019 Q1 Income before Income Tax $ 356 $ 324 Net cash generated from operating activities 309 1,567 Net cash generated from (used in) investing activities (99) (252) Additions to property, plant and equipment (99) (234

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 可程式化邏輯控制器(Programmable Logic Controller, PLC)； Power Communication 機器手臂(Robotic Arm, Motion Control)； 工業電腦(IPC) Automotive LED 電動工具(Power Tool)； Lighting 智慧電表(Smart Meter)等。 Copyright © Holy Stone Enterprise Co., Ltd. All rights reserve

14. Slide 14: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial 基地台(Base Station)； 機上盒(Set-top box)； Power Communication 路由器(Router)； 交換器(Switch)等。 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燈具(LED Lighting)； 調光器(Dimmers and Lighting Power Communication Control)等。 LED Automotive Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

16. Slide 16: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial 電池管理系統(Battery Management System, BMS )； Power Communication 車載充電器(On-Board Charger)； 充電樁(Charging Station)； 車燈及車內照明(Headlamps & Automotive LED Interior Lighting)等。 Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved

17. Slide 17: Application (Passive Components)

    Application (Passive Components) Main Products： Industrial 快速充電器(GaN) (Fast Charger(GaN))； 電源供應器(Power supply) for： Power Communication NB、PC； 伺服器(Server)； 工業電腦(IPC)； Automotive LED 電訊(Telecom)等。 Lighting Copyright © Holy Stone Enterprise Co., Ltd. All rights reserved.

18. Slide 18: Recent Operating Events

    Recent Operating Events ❏ Holy Stone have all its manufacturing plants located in Taiwan, therefore the production is not affected by the Covid-19 outbreak. Looking forward to Q2 2020, there is high order visibility in passive components; yet parts of the distributed products are affected by the epi

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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