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Wistron Corporation Investor Presentation
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2 ▪This presentation is private and confidential and is being made available to the recipient on the express understanding that it will be kept confidential and that the recipient shall not copy, reproduce, distribute or pass to third parties this presentation in whole or in part at any time. This presentation is the property of Wistron Corporation (“Wistron”) and the recipient agrees that it will, on request, promptly return this presentation and all other information supplied in connection with the ideas and concepts presented herein, without retaining any copies. ▪This presentation has been prepared by Wistron and is being delivered to the recipient and is for general reference only. The sole purpose of this presentation is to assist the recipient in understanding Wistron. This presentation is not intended to form the basis of a decision to purchase securities or any other investment decision and does not constitute an offer, invitation or recommendation for the sale or purchase of securities. Any decision to purchase securities in any offering of Wistron should be made solely on the basis of the information contained in a prospectus which may be published or distributed in due course in connection with such offering, if any. Neither the information contained in this presentation nor any further information made available in connection with the subject matter contained herein will form the basis of any contract. ▪This presentation does not purport to be comprehensive or to contain all the information about Wistron, its business, its current or historical operating results or its future business prospects. The information contained herein is based on publicly available information and sources, which we believe to be reliable, but we do not represent it is accurate or complete. The recipient of this presentation must make its own investigation and assessment of the ideas and concepts presented herein. No representation, warranty or undertaking, express or implied, is or will be made or given and no responsibility or liability is or will be accepted by Wistron or by any of its directors, officers, employees, agents or advisers, in relation to the accuracy or completeness of this presentation or any other written or oral information made available in connection with the ideas and concepts presented herein. Any responsibility or liability for any such information is expressly disclaimed. ▪In furnishing this presentation, Wistron undertakes no obligation to provide the recipient with access to any additional information, or to update, or to correct any inaccuracies which may become apparent in, this presentation or any other information made available in connection with the ideas and concepts presented herein. Disclaimer
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What Has Changed Through the Past 20 Years? Wistron 3.0Wistron 2.0Wistron 1.0 Pre-2010 Now2011 - 2022 US$1.8bn Product Focus Key Customers Revenue Taiwan US Europe Global US$2.4bn US$9.1bn ChinaGeography Focus Market Capitalization Gross Margin Smartphone NT$615bn NT$759bn NT$1,049bn 6.0% 5.0% 8.0% + + Notebook + Desktop Notebook / Desktop Notebook / Desktop + Server 3 AI Server Networking Theme of the Cycle Non-consumer revenue % ~20% ~50% ~80% Notebook Smartphone Cloud AI China
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4 Server, Storage, AI Server AI Compute Devices, Switch, Router Enterprise & Networking IPC, Enterprise Mobility Professional Display Automotive Industrial & Automotive Repair and Spare Parts Services Technical Support Recycling Solutions Service & Recycling NB, DT, Monitor, VoIP Peripherals Client Products A Technology Powerhouse for ICT Products
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Wistron Business & Product Strategies Core Business Growth Platforms Next Engines AI Compute：AI Server, AI Compute Devices Network Compute：Switch & Network Security Devices Enterprise Compute：Server & Storage Recycling Automotive Compute Smart Life ComputeIndustrial Compute：IPC & Enterprise Mobility After Services：Reconfigure, Repair and Spare Parts Services Notebook Docking, VoIP & Peripherals Desktop Display Monitor AI Enterprise Inferencing 5 Source: Company information Drones SoW (System on Wafer)
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6 Top1 Network Security Device AI Server AI Compute Devices Enterprise Mobility (Industrial Handheld) Device Desktop PCNotebook PC Display Monitor Enterprise Server MB ICT Industry After-sales Services (by Revenue) 2TopTop3 11 Wistron’s Resilient Business Positions
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7 Manufacturing & Logistics • Assembly services • Quality management and control services • Global supply chain management Design • Software • Industrial design • Electronic / mechanical engineering Technical Services • LCM modules • Recycling • Industrial computers • Enterprise storage After-Sales Services • Managed customer support services • Project / program planning End-to-End Solutions Offering One-Stop Shop
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8 Prototype Concept Discussion Reverse Logistics High Product Quality After-Sales Services Efficient Distribution Prototype Concept Discussion Early R&D Investment Early Design Engagement Automated Manufacturing Reverse Logistics 1,400 Software Engineers 6,500 Engineers 6,400 Patents 2,000 U.S.A. Utility Patents End-to-End Extensive Services from Product Concept to After-Sales Support
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99 U.S.A AI Server / server Data Center Networking Czech Republic Brno Server Data Center China Zhongshan Server, DT, VoIP Display, Keyboard Network devices Chengdu NB DT Docking Kunshan Automotive Chongqing NB DT Docking Malaysia Port Klang Enterprise Mobility Taiwan Kaohsiung LCM module Hsinchu AI Server AI compute devices IPC, Server Storage Switch Vietnam Tỉnh Hà Nam NB DT Display Server Global Operations – Manufacturing Mexico Juarez Fremont Dallas AI Server AI compute devices
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1010 Kunshan Shanghai Zhongshan Wuhan Chongqing Chendu U.S.A. China San Jose Taipei Hsinchu Tainan Kaohsiung Taiwan Global Operations – R&D Centers
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1111 Americas Asia Dallas, McKinney Mexico City São Paulo U.S.A. Mexico Brazil Europe Brno Istanbul Czech Republic Turkey Taipei, Hsinchu Narashino Kunshan Subic Bay Bengaluru Taiwan Japan China Singapore Philippines India After-sales Service Network
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12 Wistron Group Companies WITS Corp. A leader in contract software development Wistron Corporation A Forbes Global 2000 company supplying innovative ICT products, services, and systems Wiwynn Corporation The best solution provider for customer in cloud services business Wistron NeWeb Corporation Industry-leading provider of broadband communications, IoT, and automotive products Wistron Medical Technology WiAdvance Technology Changing Information Technology
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13 Sustainable supply base Recycling Green products Decarbonization People with purpose Labor welfare Sustainability Strategies Environmental Social Governance Innovation Sustainability Aspects Trusted Innovation Partner for Technology, Sustainability & Better Lives Missions Sustainability through Innovation Vision Wistron’s Vision and Missions
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14 ESG Awards and Recognitions
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15 862 985 867 1,049 898 2021 2022 2023 2024 1H'25 Revenue (NT$ B) ROE (%) EPS (NT$) Operating Income (NT$ B) 16.3 27.4 27.4 39.0 25.9 2021 2022 2023 2024 1H'25 14.0 12.8 11.4 14.7 14.0 2021 2022 2023 2024 1H'25 3.76 4.01 4.08 6.11 4.06 2021 2022 2023 2024 1H'25 Financial Highlights - 1
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16 115.3 119.6 125.4 137.3 123.2 2021 2022 2023 2024 Q2'25 Current Ratio (%) Quick Ratio (%) Debt Ratio (%) EBITDA (NTD$ B) 69.9 64.1 83.2 81.8 66.8 2021 2022 2023 2024 Q2' 25 30.5 41.7 45.4 59.2 88.2 2021 2022 2023 2024 1H'25 81.4 72.6 71.5 68.3 76.9 2021 2022 2023 2024 Q2'25 Financial Highlights - 2
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17 NT$ M 2024 2023 2022 2021 2020 Net Revenue 1,049,256 867,057 984,619 862,083 845,012 Realized gross profit 84,091 8.0% 68,983 8.0% 69,729 7.1% 51,135 5.9% 46,053 5.4% Selling (12,240) -1.2% (10,828) -1.2% (11,433) -1.2% (9,467) -1.1% (8,866) -1.0% Administrative (6,901) -0.7% (6,870) -0.8% (5,815) -0.6% (4,531) -0.5% (3,667) -0.4% Research and development (25,971) -2.5% (23,894) -2.8% (25,008) -2.5% (20,761) -2.4% (19,049) -2.3% Total operating expenses (45,112) -4.3% (41,593) -4.8% (42,257) -4.3% (34,760) -4.0% (31,582) -3.7% Operating income 38,979 3.7% 27,390 3.2% 27,472 2.8% 16,375 1.9% 14,471 1.7% Non-operating income/(expenses) Interest income/(expense), net (4,794) (6,237) (3,998) (573) (460) LT investment income/(expense), net 433 764 776 117 447 Exchange gain/(loss), net 4,050 1,477 3,664 1,350 1,230 Other income/(expense) 1,307 927 (3,203) 1,965 1,157 PBT 39,975 24,321 24,711 19,234 16,845 Tax (9,339) -23.4% (6,055) -23.0% (5,693) -23.0% (4,506) -23.4% (3,937) -23.4% Minority interest (13,191) (6,794) (7,855) (4,260) (4,226) PAT 17,446 11,472 11,162 10,468 8,682 Outstanding shares (M) 2,896 2,900 2,901 2,782 2,840 EPS 6.11 4.08 4.01 3.76 3.10 Historical Income Statement
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18 NT$ M 1H 2025 1H 2024 YoY Net revenue 897,777 479,532 87.2% Realized gross profit 51,509 5.74% 37,313 7.78% 38.0% Selling (7,052) -0.79% (5,698) -1.19% 23.8% Administrative (4,394) -0.49% (3,368) -0.70% 30.5% Research & development (14,126) -1.57% (12,535) -2.61% 12.7% Total operating expenses (25,572) -2.85% (21,601) -4.50% 18.4% Operating Income 25,937 2.89% 15,712 3.28% 65.1% Non-operating Income/(Expenses) Interest income/(expense), net (3,860) (2,548) LT investment income/(expense), net 244 353 Exchange gain/(loss), net 10,211 3,017 Other income/(expense) 418 599 PBT 32,950 17,133 92.3% Tax (8,043) -24.41% (3,851) -22.48% 108.9% Minority interest (13,071) (5,345) PAT 11,835 7,936 49.1% EPS 4.06 2.79 45.5% Income Statement (1H’25 vs. 1H’24)
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19 Income Statement (Q2’25 vs. Q1’25 and Q2’24) NT$ M Q2 2025 Q1 2025 QoQ Q2 2024 YoY Net revenue 551,291 346,485 59.1% 240,207 129.5% Realized gross profit 24,453 4.44% 27,056 7.81% -9.6% 20,083 8.36% 21.8% Selling (3,692) -0.67% (3,360) -0.97% 9.9% (2,944) -1.23% 25.4% Administrative (2,189) -0.40% (2,205) -0.64% -0.7% (1,797) -0.75% 21.8% Research & development (7,785) -1.41% (6,341) -1.83% 22.8% (6,690) -2.79% 16.4% Total operating expenses (13,666) -2.48% (11,906) -3.44% 14.8% (11,431) -4.76% 19.6% Operating Income 10,787 1.96% 15,150 4.37% -28.8% 8,652 3.60% 24.7% Non-operating Income/(Expenses) Interest income/(expense), net (2,269) (1,591) (1,358) LT investment income/(expense), net 87 157 265 Exchange gain/(loss), net 9,294 917 1,014 Other income/(expense) 244 174 552 PBT 18,143 14,807 22.5% 9,125 98.8% Tax (4,406) -24.28% (3,638) -24.57% 21.1% (2,052) -22.49% 114.7% Minority interest (7,234) (5,838) (2,661) PAT 6,504 5,331 22.0% 4,412 47.4% EPS 2.20 1.85 18.9% 1.55 41.9%
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20 20 Balance Sheets NT$ M 2025/06/30 2025/03/31 2024/06/30 Cash & ST Investments 83,080 9% 76,730 11% 54,442 11% A/R 317,431 36% 202,568 30% 149,556 30% Inventory 347,969 39% 270,414 39% 167,792 34% Other current Assets 19,231 2% 18,082 3% 20,176 4% Total Current Assets 767,711 86% 567,794 83% 391,966 80% LT equity investments 20,948 2% 21,851 3% 20,348 4% Property, plant and equipment 64,355 7% 59,813 9% 49,929 10% Other assets 36,796 4% 35,460 5% 30,260 6% Total Assets 889,810 100% 684,918 100% 492,503 100% ST Borrowing 204,975 23% 115,794 17% 80,731 16% Current Portion of LT Debt 11,013 1% 11,028 2% 186 0% A/P 290,736 33% 218,946 32% 148,775 30% Other current liabilities 116,508 13% 91,788 13% 84,578 17% Total Current Liabilities 623,232 70% 437,556 64% 314,270 64% LT Debt 26,518 3% 13,217 2% 20,134 4% Bonds payable 20,640 2% 20,572 3% 6,945 1% Other liabilities 14,223 2% 13,870 2% 12,233 2% Total Liabilities 684,613 77% 485,215 71% 353,582 72% Shareholders' Equity 205,197 23% 199,703 29% 138,922 28%
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21 21 Cash Flows NT$ M 2025 1H 2024 1H Cash* (Beginning of period) 79,880 76,041 Cash flow from Operation Consolidated PBT 32,950 17,133 Depreciation & amortization 5,853 5,572 Profit/loss of financial assets & liabilities at fair value (81) (374) Changes in A/R (135,754) (28,605) Changes in A/P 124,142 43,500 Changes in inventories (171,939) (42,734) Others 6,731 7,068 Cash provided by operating activities (138,098) 1,560 Cash flow from Investment Capex (14,631) (5,438) Others 2,011 (1,020) Cash provided by investing activities (12,620) (6,458) Cash flow from Finance Increase (decrease) in ST borrowings 138,543 (19,289) LT debt 10,765 (1,459) Partial disposal of interests in subsidiaries without loss of control 643 Treasury stock transferred to employees 75 197 Change in non-controlling interests 14 2 Cash Dividend (10,997) Proceeds from issuing shares 27,125 Others (1,607) (1,435) Cash provided by financing activities 163,918 (21,341) Effect of exchange rate change & subsidiaries consolidated (10,000) 4,640 Cash (End of period) 83,080 54,442
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22 22 2020 2021 2022 2023 2024 Cash (NT$) 2.2 2.2 2.6 2.6 3.8 Stock (NT$) - - - - - EPS (NT$) 3.10 3.76 4.01 4.08 6.11 Cash Dividend Payout (%) 71% 59% 65% 64% 62% Total Dividend Payout (%) 71% 59% 65% 64% 62% Dividend History