HTC : 2021 Q4 Financial Results - Results Summary in English

DISCLAIMER STATEMENT

• This presentation and release contain "forward-looking statements" which may include projections of future results of operations, financial condition or business prospects based on our own information and other sources.
• Our actual results of operations, financial condition or business prospects may differ from those expressed or implied in these forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our control.
• The forward-looking statements in this release reflect the current belief of HTC as of the date of this release. HTC undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

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EXECUTIVE SUMMARY

4Q21 Financial Highlights:

• Quarterly revenue of NT$1.39 billion with a gross margin of 33.7%, a sequential increase of 2.1%.
• Quarterly operating loss of NT$0.91 billion with an operating margin of -65.3%.
• Quarterly net loss attributable to owners of the parent was NT$0.73 billion, or an EPS of -NT$0.89.
  2021 Financial Highlights:
• FY2021 revenue of NT$5.25 billion with a gross margin of 31.1%, a sequential increase of 4.1%.
• FY2021 operating loss of NT$4.12 billion with an operating margin of -78.4%.
• FY2021 net loss attributable to owners of the parent was NT$3.07 billion, or an EPS of -NT$3.75.

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EXECUTIVE SUMMARY

4Q21 Business Update:

• HTC VIVE introduced a new category of immersive glasses with the launch of VIVE Flow, taking XR to the next level with its lightweight, portable form factor.
• HTC VIVE Focus 3 announced new features for multi-person experiences that support greater play areas and reduce friction in the environment recalibration process. Also added significant performance, stability and accuracy improvements to hand tracking, and received certification to support WiFi 6E in the U.S. and parts of Europe.

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EXECUTIVE SUMMARY

4Q21 Business Update:

• VIVE Arts launched a new NFT art trading platform, marking the next stage in VIVE Arts' development as it builds a complete ecosystem for digital art. It also partnered with artist and filmmaker Marco Brambilla to debut 'Heaven's Gate' in VR on VIVE Flow at Art Basel Miami Beach. In addition, VIVE Arts has teamed up with the Mucha Foundation to offer NFT editions of art nouveau icon Alphonse Mucha's works.
• HTC VIVE collaborated with China Mobile Migu to launch the CMCC Cloud VR-VIVEPORT joint VR app store, the first 5G and XR joint VR app store in the industry. VIVEPORT also announced its first co-produced anime, "BIRDIE WING - Golf Girls' Story" in collaboration with Bandai Namco Pictures to be released in 2022.
• HTC VIVE received certification in the ISO27001 and ISO27701 global standards as part of its continuous effort to uphold the privacy and security of all of its customers and business partners worldwide.

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