Slide 1: Elite Material Co., Ltd.
1 Elite Material Co., Ltd. Global leader of high end eco-friendly laminates Presentation May, 2023
Slide 2: Disclaimer
2 Disclaimer This presentation may contain “forward-looking statements” which may include projections on future results of operations, financial condition, and business prospects based on our own information and other sources. The actual results of operations, financial condition, and business prosp
Slide 3: Agenda
3 Agenda 1Q23 Financial result P.4 Capacity update P.7 Industry overview P.9 Executive summary P.13 Q&A P.18 Page 3
Slide 4: Financial Highlights
4 Financial Highlights • Net revenue was NT$7.36 billion, representing an 17.2% decrease from NT$8.89 billion in 4Q22 and an 25.8% decrease from NT$9.92 billion in 1Q22. • Gross margin was 21.4%, 5.5 percentage points lower than 4Q22 and 3.6 percentage point lower than 1Q22. • Operating margin was 1
Slide 5: 1Q23 P&L summary
5 1Q23 P&L summary Unit: NT$ million 1Q23 4Q22 QoQ 1Q22 YoY Revenue 7,359 8,888 -17.2% 9,918 -25.8% Gross profit 1,572 2,387 -34.1% 2,478 -36.6% Operating profit 769 1,523 -49.5% 1,651 -53.4% Income before tax 729 1,549 -52.9% 1,669 -56.3% Tax expenses (249) (190) 31.2% (343) -27.3% Net income 480 1
Slide 6: 1Q23 Abstracted Balance Sheet
6 1Q23 Abstracted Balance Sheet Unit:NT$ million 1Q23 4Q22 1Q22 Amount % Amount % Amount % Cash & Equivalent 14,414 31.2% 10,444 24.1% 8,368 20.9% A/R+N/R 9,814 21.2% 11,683 26.9% 13,318 33.3% Inv 3,728 8.1% 4,236 9.8% 5,476 13.7% PPE 15,189 32.9% 14,680 33.8% 10,232 25.5% Total Assets 46,235 100.0%
Slide 7: Manufacturing Locations and Monthly Capacity
7 Manufacturing Locations and Monthly Capacity EMC (KS) Kunshan CCL: 1.35kk sheets PP: 3.3kk meters Manpower: 1,400+ +300K SHT/M in 2Q, 2023 +450K SHT/M in 4Q,2023 EMC (HS) EMC (TW) Huangshi Taoyuan CCL: 900k sheets CCL: 400k sheets PP: 4.8kk meters PP: 1.4kk meters Manpower: 650+ Manpower: 900+ EMC
Slide 8: CCL Production in the USA
8 CCL Production in the USA EMC is the only CCL manufacturer, among all Taiwanese & Chinese makers, having production capacity in the US. To mitigate geopolitical risks, EMC is committed to better serve its customers by providing stabilized high-end materials in the local market with timely services
Slide 9: World #1 HF material supplier in 2021
9 World #1 HF material supplier in 2021 Global Green Laminate Market 5 Page 9 Page 9 EMC Confidential 9
Slide 10: Trend of 5G infrastructure development: HF, HDI, High Speed, High Frequency
10 Trend of 5G infrastructure development: HF, HDI, High Speed, High Frequency Halogen Free HDI High Speed AAU AiP MIMO RRU BBU Phone-5G High Frequency mmWave Phone-4G ADAS Phone-3G 77GHz AI Server Switch-800G 26.56 GHz Server- PCIe5 NB- USB4.0 Switch-400G Infotainment 16GHz 14GHz E-Mobility NB- USB
Slide 11: High-end CCL (HDI & High-speed/frequency)
11 High-end CCL(HDI & High-speed/ frequency) • High-end CCL market grows at 16% CAGR (2022-2025) • Overall CCL market grows at 5% CAGR (2022-2025) • EMC expects to outgrow high end CCL market Overall CCL Market High-end CCL Market Source: Goldman Sachs Global Investment Research, Oct 2022 11 Page 11
Slide 12: EMC Momentum in High speed CCL – from Nothing to 16% Global Share in 4 years
12 EMC Momentum in High speed CCL – from Nothing to 16% Global Share in 4 years Source: Goldman Sachs Global Investment Research, Oct 2022 Page 12 Page 12
Slide 13: Executive Summary
13 Executive Summary • Leader in HDI technology, with a global mobile phone market share of ~70%, and a 5G mobile phone market share of ~ 90%. • The global market share of switch products has risen from ~10% of 100G to 30%+ for mainstream 400G products. • Focusing on electric vehicles, the leading m
Slide 14: Steadily Sales Growth
14 Steadily Sales Growth NTD：Billion 40.0 35.0 2002：1.9Bn→2022：38.7 Bn 2002 ~ 2022, CAGR=16.2% 30.0 25.0 20.0 15.0 10.0 5.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue Page 14 Page 14
Slide 15: Sustainable Operation Performance
15 Sustainable Operation Performance Page 15
Slide 16: History of Cash dividend and Payout ratio
16 History of Cash dividend and Payout ratio Page 16
Slide 17: The Corporate Social Responsibility Report
17 The Corporate Social Responsibility Report Page 17 17
Slide 18: Q&A
18 Q&A Page 18