Slide 1: ITEQ Corporation 2020 Fourth Quarter Earnings Result
ITEQ Corporation 2020 Fourth Quarter Earnings Result ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY April 2021 1
Slide 2: Disclaimer Statement
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 o
Slide 3: Company Overview
Company Overview ◆ Establishment: April 10th, 1997 ◆ Headquarters: HsinChu, Taiwan ◆ Capital: NTD$3,330M ◆ Employees: Over 3,000 ◆ Chairman: Dennis Chen ◆ CEO: Audrey Tsai ◆ Main Product: Copper Clad Laminate & Prepreg Flexible CCL Masslam service 3
Slide 4: CCL & PP Composite Structure
CCL & PP Composite Structure CCL Manufacturing Process CCL/PP Glass Mixture Fiber Resin Accelerator Hardener CCL Copper CCL PP Foil 4
Slide 5: CCL & PP Manufacturing Flow
CCL & PP Manufacturing Flow Resin(s) Filler(s) Copper Mixing Foil (Compounding) Glass CCL Lamination Ply-up Cutting Prepreg Treating Fabric 5
Slide 6: Product Roadmap
Product Roadmap Lead Free Halogen Free IT-958G IT-8350G High Tg IT-180I IT-170GRA2 IT-968 SE IT-88GMW IT-180A IT-170GRA1 IT-150DA IT-968G IT-988G SE IT-998G IT-8300GA IT-189 IT-170GT IT-170GLE IT-968 IT-988G IT-998 IT-8338G IT-258GA3 IT-150GS IT-168G1 IT-150GX IT-158 IT-150G IT-168G2 Mid Tg Standard
Slide 7: Core Technology
Core Technology Smartphone Tablet Low Dk Ultrathin Networking Material Science Datacenter Controlled Resin FR-4 Dk and Cloud Computing Low Df Mixture Halogen Consumer Electronics Free Process 5G Engineering High Reliability Automotive Electronics 7
Slide 8: 1Q18~4Q20 Product Mix
1Q18~4Q20 Product Mix Consumer Electronics Networking Smartphone Automotive 5% 10% 10% 10% 11% 11% 10% 10% 11% 11% 11% 13% 7% 10% 10% 10% 9% 9% 9% 10% 10% 8% 8% 9% 34% 36% 38% 40% 48% 52% 63% 50% 45% 56% 55% 58% 46% 44% 42% 40% 32% 29% 31% 33% 24% 24% 23% 25% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
Slide 9: Revenue & Gross Margin Rate
Revenue & Gross Margin Rate (Million $NTD) 21.29% 20.98% 20.96% 19.42% 18.84% 18.86% 18.86% 18.36% 16.02% 15.75% 15.82% 14.70% 15.06% 14.75% 14.11% 14.50% 13.92% 13.73% 13.71% 14.01% 13.21% 13.06% 10.81% 7,472 6,379 6,220 6,112 5,965 6,153 5,562 5,677 5,694 5,697 5,862 5,618 5,021 5,161 5,027 5,190
Slide 10: Well-Expanded Product Line
Well-Expanded Product Line RF Application Super Ultra Tier 6 IT-88GMW Low Loss Df 0.0015~0.0010 IT-8300GA IT-998G IT-8350G IT-8338G Ultra Tier 5 IT988G/SE Low Loss Df 0.005~0.0015 IT968 SE Very Tier 4 Low Loss Df 0.006~0.005 IT968, IT968G Tier 3 Low Loss IT958G, IT170GRA2 Df 0.009~0.006 Lower Tier 2
Slide 11: 4Q20&FY20 Income Statement
4Q20&FY20 Income Statement NTD $Million 4Q20 3Q20 4Q19 QoQ YoY 2020 2019 YoY Revenue 6,112 6,220 6,153 -2% -1% 25,422 23,791 7% Gross Profit 1,153 1,173 1,291 -2% -11% 4,951 4,780 4% Operating Expense 327 454 442 -28% -26% 1,732 1,676 3% Operating Profit 826 719 849 15% -3% 3,219 3,104 4% Non-Op Inc
Slide 12: 4Q20 Balance Sheet
4Q20 Balance Sheet NTD $Million 4Q20 3Q20 4Q19 Total Assets 25,684 25,953 23,480 Cash 3,287 3,625 3,538 Marketable Securities 6 6 93 NR / AR 10,813 11,200 10,599 Inventories 3,243 3,330 2,664 Fixed Assets 6,484 5,896 4,594 Total Liabilities 12,291 13,527 14,555 Short-term Debt 2,370 2,331 3,882 NP /
Slide 13: Market Trend & Growth Drivers
Market Trend & Growth Drivers
Slide 14: Hunger for High Speed Transmission
Hunger for High Speed Transmission ⚫ Rapid expansion of Global ⚫ Fast growing Global IP traffic Datasphere - UHD video streaming and internet gaming - Core (traditional and cloud datacenters) - Connected home, work, health and car - Edge (enterprise-hardened infrastructure such as, - Big data and AI
Slide 15: 5G Network Infrastructure & Opportunities
5G Network Infrastructure & Opportunities Core (Telecom) + Transport Network: Central Cloud • Including data center, Edge computing, OTN • High efficient computing and massive data traffic Edge Cloud Core High Speed Material Network Distributed + Centralized Unit (DU+CU) • Including Macro Cell, Micr
Slide 16: Sustainable Growth Momentum (Telecom)
Sustainable Growth Momentum (Telecom) LTE (sub-3GHz) Utilizing high spectrum is the basis of mobile telecom technology evolution 5G sub-6GHz mmWave 5G network requires array antenna Global 4G & 5G CAPEX (10yrs) Forecast Unit：USD Billion 421 4G 5G 265 190 197 94 129 41 58 Single Antenna 2x2/ 4x4 MIMO
Slide 17: Sustainable Growth Momentum (Datacom)
Sustainable Growth Momentum (Datacom) Unit：Thousand 2020~2025 Global Server Shipment CAGR: 6.7% 24,000 22,107 20% 20,546 19,220 20,000 18,013 15% 16,921 15,994 16,000 15,238 15,060 9.5% 10% 12,000 7.6% 5.8% 6.5% 6.7% 6.9% 5% 6.2% 8,000 4,000 0% -1.2% 0 -5% 2018 2019 2020(f) 2021(f) 2022(f) 2023(f) 2
Slide 18: Manufacturing Site & Capacity
Manufacturing Site & Capacity JiangXi Plant (Phase I) - 2020 Laminate (600K SHT/Month) Prepreq (4,500K M/Month) (Phase II) - 2021 Laminate (600K SHT/Month) Prepreq (4,500K M/Month) (Phase III) – 2022 Laminate (1,200K SHT/Month) Prepreq (6,000K M/Month) WuXi Plant Laminate (1,800K SHT/Month) Prepreq
Slide 19: 2014 – 2020 Dividend Policy
2014 – 2020 Dividend Policy Cash Year EPS(NT$) Dividend(NT$) Pay-out Ratio(%) Dividend(NT$) 2014 1.62 1.2 1.2 74% 2015 1.92 1.6 1.6 83% 2016 3.13 2.5 2.5 80% 2017 4.11 3.1 3.1 75% 2018 5.86 3.8 3.8 65% 2019 8.13 5.0 5.0 62% 2020 8.19 5.0 5.0 61% *New shares issuance of 30 million common shares concl
Slide 20: ITEQ & MGC Joint Venture Project
ITEQ & MGC Joint Venture Project
Slide 21: Increase of Special CCL Production Value
Increase of Special CCL Production Value Global CCL Production Value ($USD) 2015 2017 2019 Source: Prismark Report • High Speed Transmission: Global special laminates production value increased to $3,534M in 2019 from $1,773M in 2015 • Leadership of High Speed/Frequency Technology: ITEQ to set footp
Slide 22: ITEQ x MGC JV – IC Substrate Material
ITEQ x MGC JV – IC Substrate Material MGC & ITEQ MGC JV ITEQ IC Packaging High Laminate IC Substrate Speed/Frequency CCL Material BT Substrate • Logic IC (Consumer Electronic, Smartphone) • Memory IC (DRAM, NAND Flash) 22
Slide 23: Thank you
Thank you Question and Comment