[Foreign language] Set Press Announcement [Foreign language] Delta Electronics [Foreign language] 2568 [Foreign language] 1 [Foreign language] 31 [Foreign language] 2568 [Foreign language]. A very good morning to investors. Thank you for joining this fiscal year 2025 and fourth quarter earnings calls for Delta Electronics Thailand. I'd like to introduce our top executive management who join the virtual session with us today. Firstly, Mr. Victor Cheng, Chief Executive Officer. Secondly, Miss Nipaporn Jiarajareevong, Chief Financial Officer. My name is Anchalee Jieratham for investor relations. [Foreign language]. Now I would like to hand over to Victor Cheng to begin the presentation today. Good morning. This is Victor Cheng with Delta Electronics Thailand. I will start with the executive summary of the company status. Delta Electronics Thailand concluded the fiscal year 2025 with a strong performance supported by continued revenue growth in Q4 of 2025, a healthy margin profile and disciplined cost management. Full year revenue reached $6.025 billion, representing a 30.9% year-on-year increase, while net profit grew 42.4% year-on-year to $754 million. The healthy growth momentum was driven by strong demand for digitization and AI computing, decarbonization initiatives, a balanced product mix, disciplined cost management and a resilient supply chain strategy amid ongoing challenges in the global technology sector. Economic growth is expected to remain modest globally and in Thailand. However, rising digital and AI adoption offers opportunity for efficiency and innovation, helping organizations navigate a slower growth environment. Delta remain committed to leveraging emerging opportunities in AI, energy transition and smart infrastructure to drive next phase growth. The company continues to deliver value to our customers, partners and stakeholders while navigating global economic headwinds with resilience and agility. To the business outlook. For the macro market outlook, global economic growth will likely moderate over the midterm. According to IMF January 2026 update, global real GDP growth is forecast at 3.3% in 2025 and also 2026. The improved forecasts reflect a balance between shifting trade rules and the mitigating effect of government spending and private sector agility. The Bank of Thailand forecasts Thailand's GDP growth at 1.5% in 2026 and 2.3% in 2027, reflecting modest overall growth amid external and local challenges. Despite this, digital transformation and AI adoption are gaining traction in organizations as more firms goes from exploration to applications for efficiency and innovation. High tech and advanced sectors, particularly semiconductor and electronics, continue to attract strong investment. Thailand is targeting roughly $79 billion in foreign capital over the long term, signaling momentum in otherwise moderate growth landscape. Across the global data center and telecom infrastructure sector, liquid cooling adoption in AI data centers rose from 14% in 2024 to 33% in 2025 and is projected to reach 40% in 2026, highlighting the rapid deployment of next generation cooling for high density workloads. Okay, for our business outlook. First, in Thailand, the EV charging station business revenue declined by approximately 24% year-on-year. The decline was mainly due to intensified market competition, particularly from Chinese competitors, leading to price erosion impacting revenue. Delta remains focused on strengthening value-added solutions by enhancing system integration capabilities and continue improving service quality for sustainable business. Delta Thailand's building automation revenue achieved strong growth in 2025, with revenue reaching growth 160% year-over-year. This surge was driven by strategic re-reliance and expanded exploration of Delta Building Automation solutions across industrial, hotel and medical verticals. Major contribution came from Delta Thailand's new facility expansion as well, which significantly supported business performance in local market. For India's revenue reached an all-time high in Q4 2025, delivering additional 15% year-on-year growth. Performance was supported by wins across Industrial Automation and data center segment, with the data center business emerging as a key contributor. Telecom infrastructure solutions exceeds its Q4 target, delivering 110% of budget revenue, driven by Telecom Power System and data center infrastructure projects. For Southeast Asia and Australia, New Zealand regions, across SEA and ANZ, the Industrial Automation Business Group deliver a resilient performance in Q4 2025, with revenue declining slightly by 5% quarter-over-quarter but still rising by 27% year-on-year and supported by continued demand for Delta's equipment, which accounted for 60% of revenue. Momentum was mostly led by Thailand, Vietnam and Malaysia. For the information communication technology sector, total revenue of 2025 grew 18% compared to 2024, supported by project awards from leading telecom operators in Thailand, Australia and Malaysia. In Q4 2025, revenue declined by 10% quarter-on-quarter and 6% year-on-year due to delay in customers' project execution. While overall performance remain aligned with market conditions and achieve 100% on budget. For European market, the automotive business ended Q4 2025 with a slight quarter-over-quarter revenue decline, reflecting seasonally reduced OEM vehicle production during winter period. Overall, onboard power supply demand across EV types and EV OEM remains stable in line with expectations. Government incentive programs and the continued expansion of high-power charging infrastructure support a steady growth in battery electric vehicle, BEV. While plug-in hybrid vehicles with extended battery-driven range remain particularly popular in the European market. Q4 2025 revenue in the industrial and medical business shows continued recovery despite seasonal softness in December due to customer shutdowns. The 2025 revenue grew 25.4% year-on-year, supported by gradually improved demand in Europe and the U.S. Production output is expected to ramp up in Q1-Q2 of 2026 to align with demand while maintaining healthy inventory levels. On some of the recognition side, Delta Electronics (Thailand) has been recognized at the Thailand Energy Awards 2024 award ceremony for its energy-efficient solution for green data centers under creative energy category. Delta's award-winning project showcased the implementation of a green data center solution at Delta Thailand Bangpoo 2 data center, designed to demonstrate reliable, resilient and most importantly, energy-efficient data center operations. In November of 2025, Delta Electronics Thailand has been recognized with an excellence, which is a five-star grade, in the corporate governance report assessment for Thai-listed companies for the year 2025 from the Thai Institute of Directors. This achievement marks the 10th consecutive years the company has maintained the highest possible rating. Now to operational development. For the long-term sustainable development, Delta Electronics Thailand officially inaugurated its latest and newest power electronics laboratory at Mahidol University. This represents the 7th of such facilities established by Delta Thailand with the local universities. The launch, accompanied by the signing of a memorandum of understanding on 24 December 2025, reinforced a shared vision of strengthening the nation's engineering ecosystem through advanced research and practical workforce development. With this expansion, Delta continues to widen access to advanced learning environments for students nationwide. Delta Electronics also collaborate with Siemens for data center related solutions. Delta Thailand and Siemens Smart Infrastructure have formalized a global partnership to deliver prefabricated modular power solutions designed to accelerate the deployment of data center infrastructure, while significantly reducing CapEx at the same time. The partnership will ensure that hyperscale and colocation operators enjoy a strategic advantage in the competitive AI and cloud computing data center market with the highest performance in power management and reliability. Delta's prefabricated and pretested modular power system provide a plug-and-play approach that reduces time to market by up to 50%, lowers construction risk and maximize square footage. On the production front, in Q4 2025 production revenue increased by around 11% quarter-over-quarter with overall production output continued to improve compared to previous quarter. Supported by the ramp up of new plants and the delivery of multiple automation lines, production efficiency and line stability were further enhanced, enabling the organization to better support growing demand from AI and power management product orders. Furthermore, driven by strong demand from AI-related applications, overall revenue performance exceed expectations, achieving a budget attainment of approximately 127%. Key achievement include progressive capacity release and continued efficiency improvement. While AI-related application products continue to be the main contributor to revenue growth. Now I pass to our CFO. Thank you. [Foreign language] 30% [Foreign language] 2025 [Foreign language] 35 [Foreign language] 31 [Foreign language] U.S. Dollar [Foreign language] 10% [Foreign language] 2025 [Foreign language] 57,800 [Foreign language] 2024 38.6% [Foreign language] 2025 [Foreign language] 198,200 [Foreign language] 20.3% [Foreign language] Power Electronics [Foreign language] Solution [Foreign language] Data Center [Foreign language] Cloud [Foreign language] AI [Foreign language] AI Application [Foreign language] 16,500 [Foreign language] 28.5% [Foreign language] 75.5% [Foreign language] 2025 [Foreign language] 53,600 [Foreign language] 32.4% [Foreign language] 2024 [Foreign language] Power Electronics [Foreign language] Data Center [Foreign language] 8,000 [Foreign language] 13.8% [Foreign language] 2024 248% [Foreign language] 2025 [Foreign language] 26,300 [Foreign language]. you. [Foreign language] 30% [Foreign language] 2025 [Foreign language] 35 [Foreign language] 31 [Foreign language] U.S. Dollar [Foreign language] 10% [Foreign language] 2025 [Foreign language] 57,800 [Foreign language] 2024 38.6% [Foreign language] 2025 [Foreign language] 198,200 [Foreign language] 20.3% [Foreign language] Power Electronics [Foreign language] Solution [Foreign language] Data Center [Foreign language] Cloud [Foreign language] AI [Foreign language] AI Application [Foreign language] 16,500 [Foreign language] 28.5% [Foreign language] 75.5% [Foreign language] 2025 [Foreign language] 53,600 [Foreign language] 32.4% [Foreign language] 2024 [Foreign language] Power Electronics [Foreign language] Data Center [Foreign language] 8,000 [Foreign language] 13.8% [Foreign language] 2024 248% [Foreign language] 2025 [Foreign language] 26,300 [Foreign language]. 13.3% [Foreign language] 47.4% จากปี 2024 [Foreign language] 2025 [Foreign language] Delta [Foreign language] Delta [Foreign language] 7,200 [Foreign language] 12.4% [Foreign language] 227% [Foreign language] 24,800 [Foreign language] 12.5% [Foreign language] 31% [Foreign language] 2024 [Foreign language] 2025 [Foreign language] 2024 [Foreign language] EPS [Foreign language] Presentation [Foreign language] Delta [Foreign language] 2568 [Foreign language] 2568 [Foreign language] US$6,025 [Foreign language] 30.9% [Foreign language] 2568 [Foreign language] US$754 [Foreign language] 42.4% [Foreign language] Delta [Foreign language] Solution [Foreign language]. [Foreign language] Delta [Foreign language] Power Electronics เ [Foreign language] Power Electronics [Foreign language] 71% [Foreign language] 10% [Foreign language] Infrastructure [Foreign language] 16% [Foreign language] Data Center [Foreign language] Southeast Asia [Foreign language] Automation [Foreign language] 2% [Foreign language] Strategic Priority [Foreign language] Delta [Foreign language] Wellgrow [Foreign language] Solution [Foreign language] Southeast Asia [Foreign language] list [Foreign language] Donald Trump [Foreign language]. First question, with the US Supreme Court revokes President Donald Trump's reciprocal tariff, does Delta got any positive or negative impact from this development? Yes. In fact, this development is a little bit neutral to us because predominantly our products the import duty tariff are prepaid by our customers. A very small percentage or in a very low single digit is being borne by company. With the new tariff, our customer could get a slightly lower tariff in general. To us the effect is neutral. There's no material effect on us. [Foreign language] Delta [Foreign language] 2026 [Foreign language]. What is the business outlook for the first quarter of 2026 as well as the full year perspective of this year? Yes, I believe this year will continue the momentum that is AI data center infrastructure building out projects. We believe that this year, barring any unforeseen incident, we should enjoy a fairly strong growth momentum again for 2026. Q1 is going to be busy. We're trying to catch up. For the remaining of the year, we believe that growth prospect is still very good and strong. We foresee a strong double-digit growth for 2026. [Foreign language] Momentum [Foreign language] Momentum [Foreign language] catch up [Foreign language] Order [Foreign language] Growth Prospect [Foreign language] 2569 [Foreign language]. Add on to previous question, what is the major business target in 2026 and what are their supporting factors? As I have stated that we will be expecting a strong double digit growth for the 2026 entire year. This is again supported by sales forecasts provided to us by our major customers, specifically these data center operators. The fundamentals for data center, whether it's AI or traditional data services seem to be strong in 2026. The infrastructure continues to need investment to support its growth. [Foreign language] Data Center [Foreign language] Sector Data Center [Foreign language] AI [Foreign language] Data Center [Foreign language] 2026 [Foreign language] Delta [Foreign language]. How many more years will the relocation of production from Taiwan or other production sites continue towards Delta Thailand? For this order shifting, are we seeing any signs that such distribution might have reached the limits? Any concern of overconcentration of Delta group manufacturing to Thailand production? Is there a trend for further diversification into India or European production site? Yeah. Right now, most of the customers due to this geopolitical tension and shift are requesting these productions out of China and also some of them even request the production out of Taiwan. The production location right now for the overall Delta group ideally is still Thailand. We are enjoying these production ramp up from the start of any project and that's part of the reason that sales and business have seen the expansion and growth that we have in these two years. I think there is no specific limitation of say the timeframe customer wanted to move over. This is only the sort of natural path. As with any business, this fast growth period will come to a slowdown sometime down the road. I think that's when we will have to reallocate or re-rationalize the production distribution. Our India site has already been built up due to the high tariff that India received from U.S. The export side of the business has not been particularly strong. Most of the growth came from domestic businesses. Now with the slight reprieve that's announced previously and now with the new situation with the new 15% tariff, I think India's export business will resume its growth path. Some of the products we are in the process of allocating to India but that pace is not particularly expeditious right now due to customer need to go there and qualify the manufacturing facility and the operation healthiness and so on. It probably will take a few years before this happens in any large scale. Europe and USA mostly handling integrations so that production of products will mainly still focus in Asia, particularly in Thailand. Some of the larger system integration work will be done in Europe as well as in North America later on. [Foreign language] Delta [Foreign language] production facility [Foreign language] validate [Foreign language] mass production [Foreign language] integration [Foreign language] system integration [Foreign language]. Once the manufacturing has been relocated with committed production volume, what if our customer cancel the project and we have already invested to expand the capacity. Does customer have an obligation to compensate to Delta? Yes, we have agreement with some of the customers for such type of scenario, because nowadays the power rating of the system gets larger and larger, we have to invest substantial amount of capital equipment to support the production. If for some reason the project did not materialize as originally planned or the volume falls significantly short of the original projection, usually we can negotiate with customer for some recovery. One from the development cost because it's not sufficiently or amortizing to the volume. Secondly, for the capacity and equipment investment that did not meet the expectation. Some of the customer agree. Some at this point have not agreed. It's variable among our customer base. เ [Foreign language] volume [Foreign language]. Next question is related to royalty income which have been recognized in our financial statement. What sort of products does this licensing belong to? Mainly the product that's designed by our German's subsidiary engineering teams and manufacture under Delta Electronics, Inc.'s manufacturing operation. That part again mainly for data center power applications. [Foreign language] Delta [Foreign language] Data Center Power Solutions [Foreign language] R&D [Foreign language] license [Foreign language]. Next question. Which product lines are currently utilizing our own R&D in the production such that we don't have to pay the royalty to the parent company. Yeah, the product design as in a previous question I already point out the product design by our German teams. We also have a Thailand team that design with data center and also medical industrial power. We also have a China team that also involved in the data center design, data center power designs. Those three teams from which the product if produced in Thailand, we don't need to pay royalty because it's under our own engineering effort. [Foreign language] R&D [Foreign language] Data Center [Foreign language] Power Solution [Foreign language] Medical Industry [Foreign language] Chern-Lin Chen [Foreign language] 19 [Foreign language] Comply [Foreign language]. Do you have any comment on the share price and the recent purchase of the shares by one of our management? No, I think it's his personal action. I don't have any comment on that. As long as it follows the regulation in compliance. I think it's okay for our executive to invest in company shares. As to the stock price, I think it's a market mechanism. Again, no particular comment on that. [Foreign language] Comment [Foreign language] 2569 [Foreign language]. What is the CAPEX investment plan for 2026? What are the major items? Yes, the CAPEX for 2026 again will be heavily on machineries to meet the ramp up of various types of power solutions for data centers. We estimate this CAPEX will be in the range of $550 million for 2026. As to which factories, I think across all both sides in Bangpu and Wellgrow, we are now ramping up and all the new factories are being equipped with machine-automated machines in particular. It's fairly evenly divided among the two sides. Just to add on to that. Would you like to update the current status of our construction and how many more plants are we expecting? Yes. At Wellgrow side we already have two factories that went into production at the end of 2025. In the Bangpu side, we will have two new factory going into production around the end of Q1 of 2026. We will see another factory completed in the Q4 time frame 2026 and middle of 2027 we expect to add another two new factories also in Bangpu side plus one R&D center. With the flurry of design activities, we do need to find and hire more R&D engineers and manufacturing operation related engineers and operators to staff these new facilities. [Foreign language] Power Solution [Foreign language] Data Center [Foreign language] Guidance [Foreign language] US$550 [Foreign language] Wellgrow [Foreign language] Delta [Foreign language] Wellgrow [Foreign language] 2025 [Foreign language] Recruit Engineer [Foreign language] Operator [Foreign language]. President Donald Trump [Foreign language] Global Minimum Tax [Foreign language]. The next question is about Global Minimum Tax Regime. What is the current status and do we assess the impact on our bottom line by how many percentage? [Foreign language] QDMTT [Foreign language] Top-Up Tax [Foreign language] Financial Statement [Foreign language] 2025 [Foreign language] ฿3,438 [Foreign language] ฿409 [Foreign language]. [Foreign language] CFO [Foreign language] 1.7% [Foreign language].