Chicony Electronics : 4Q23 Financial Results

Chicony Electronics

4Q23 Results Conference

March 13, 2024

Safe Harbor

Notice

• Chicony's statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties.
• Actual results may differ materially from those contained in any forward-looking statements.

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Agenda

• 4Q23 Financial Results
• 4Q23 Operating Results
• Business Outlook
• Commitment to ESG

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4Q23 Financial Results

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4Q23 Consolidated Income Statement

4Q23 GPM, OPM, NPM, and EPS all reached a new high for the same period Operating Profit increased 11% YoY and EPS increased 21% YoY

NT$ Million	4Q 2023	%	3Q 2023	%	QoQ %	4Q 2022	%	YoY %
Net Sales	24,429	100.0	25,809	100.0	-5.3	27,603	100.0	-11.5
COGS	(19,330)	(79.1)	(20,262)	(78.5)		(22,662)	(82.1)
Gross Profit	5,099	20.9	5,547	21.5	-8.1	4,941	17.9	3.2
Operating Expense	(2,510)	(10.3)	(2,546)	(9.9)		(2,616)	(9.5)
Operating Profit	2,588	10.6	3,001	11.6	-13.8	2,325	8.4	11.3
Non-Operating	481	2.0	109	0.4	341.8	140	0.5	243.9
Income1
Profit Before Tax	3,069	12.6	3,110	12.0	-1.3	2,465	8.9	24.5
Tax	(590)	(2.4)	(546)	(2.1)		(337)	(1.2)
Net Income	2,070	8.5	2,121	8.2	-2.4	1,702	6.2	21.6
After Tax EPS	2.87		2.93		-2.0	2.38		20.6
Profit Margins

GPM	20.9%		21.5%
OPM	10.6%		11.6%
NPM	8.5%		8.2%

-0.6ppt-1.0ppt

+0.3ppt

17.9%

8.4%

6.2%

+3.0ppt

+2.2ppt

+2.3ppt

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2023 Consolidated Income Statement

Net Profit, EPS, GPM, OPM, and NPM all hit Record High

EPS Reached NT$10.35, beat street consensus

NT$ Million

2023

%

2022

%

YoY %

Net Sales	98,323		100.0	115,748	100.0	-15.1
COGS	(79,294)		(80.6)	(95,172)	(82.2)
Gross Profit	19,028		19.4	20,576	17.8	-7.5
Operating Expense	(9,619)		(9.8)	(10,158)	(8.8)
Operating Profit	9,409		9.6	10,418	9.0	-9.7
Non-Operating Income1	1,864		1.9	779	0.7	139.3
Profit Before Tax	11,273		11.5	11,197	9.7	0.7
Tax	(2,273)		(2.3)	(2,181)	(1.9)
Net Income	7,464		7.6	7,320	6.3	2.0
After Tax EPS	10.35			10.26		0.9
Profit Margins
GPM	19.4%			17.8%		+1.6ppt
OPM	9.6%			9.0%		+0.6ppt
NPM	7.6%			6.3%		+1.3ppt

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4Q23 Consolidated Balance Sheet

Healthy Balance Sheet with NT$17.8B Net Cash; Debt Ratio Down to 49%

NT$ Million	4Q23	%	3Q23	%	4Q22	%
Cash & Equivalent	19,154	21.1	18,908	21.2	12,156	14.0
Accounts Receivable	21,432	23.6	23,586	26.4	24,924	28.6
Inventories	15,788	17.4	14,050	15.7	18,754	21.5
Current Assets	65,578	72.2	64,594	72.3	62,701	72.0
Total Assets	90,833	100.0	89,363	100.0	87,064	100.0
Short Term Debt	1,396	1.5	3,949	4.4	2,898	3.3
Accounts Payable	22,666	25.0	21,905	24.5	20,569	23.6
Current Liabilities	43,961	48.4	44,386	49.7	44,060	50.6
Total Liability	44,619	49.1	45,097	50.5	44,724	51.4
Equities	46,214	50.9	44,266	49.5	42,340	48.6
Net Cash	17,758		14,959		9,258
Current ratio (X)	1.49		1.46		1.42
Debt Ratio	49%		50%		51%

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4Q23 Operating

Results

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Continue Delivering Solid Revenue Growth

Secure resources for global top tier customers, with a balanced and diversified product portfolio

(NT$ mn)	+3.5%
	CAGR			115,748
				107,474
			95,082	98,323
		92,552
		87,260
80,111	80,663	78,156
74,539	77,018

67,510

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

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2023 Summary

• 2023 LED backlight notebook KB penetration rate increased to 43%

4Q23 LED backlight notebook KB penetration rate hit 47%

• 2023 surveillance cam revenue increased 200% YoY

4Q23 Surveillance cam revenue up 162% YoY

• 4Q23 EPS beat street consensus

4Q23 EPS was NT$2.87, a new high for the same period

• 2023 Profit Margins all hit record high

Including GPM 19.4%, OPM 9.6%, and NPM 7.8%

• 2023 EPS reached a record-breaking of NT$10.35

Despite of 15% decline in revenue, Chicony delivered an all-time high EPS of NT$10.35

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