Iteq Corporation · TWSE:6213
Iteq — Q4 2023 Earnings Presentation
28 slides from Iteq's earnings presentation, March 2024
Slide 1: ITEQ Corporation 2023 Fourth Quarter Investor Presentation
ITEQ Corporation 2023 Fourth Quarter Investor Presentation ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY March 2024
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 Headquarters Capital April 10th, 1997 HsinChu, Taiwan NT$3,630 million Employees Chairman CEO ~4,000 Dennis Chen Audrey Tsai Main Products Copper Clad Laminate (CCL) & Prepreg (PP) | Masslam service | Flexible CCL Revenue (NT$ billion) Revenue by Application (FY23) Aut
Slide 4: Key Technology Applications
Key Technology Applications Infrastructure Controlled Dk FR-4 Consumer Datacenter and Low Df Halogen Free Electronics Material Science Cloud Computing 5G Infrastructure Resin Mixture Process Engineering Low Dk High Ultrathin Reliability Smartphone Automotive Tablet Electronics 4
Slide 5: Growth Strategy Blueprint
Growth Strategy Blueprint ITEQ
Slide 6: Path of Innovation
Path of Innovation Widely adopted in consumer electronics New product for HDI PCB: Resin Coated Copper (RCC) Engaged with tier 1 No. 1 Taiwan CCL automotive players supplier for 5G base Dominant CCL supplier station for Intel Purley server platform Enhanced ultra-thin Biz kick-off with top Substrate
Slide 7: Optimized Mix with Product Innovation
Optimized Mix with Product Innovation Revenue Consumer Electronics Infrastructure Gross Margin Operating Margin (NTD $Million) Smartphone Automotive 25% 35,000 32,525 11% 29,130 20% 30,000 19% 20% 18% 25,422 9% 16% 25,079 25,000 23,791 22,402 10% 7% 21,214 10% 19% 15% 15% 15% 8% 15% 19,077 19,682 10
Slide 8: R&D and Capex to Pursuit Sustainable Growth
R&D and Capex to Pursuit Sustainable Growth R&D expense (NTD $Million) R&D expense/Revenue (%) CAPEX (NTD $Million) CAPEX/Revenue (%) 600 3% 5,000 20% 4,500 500 4,000 15% 3,500 400 2% 3,000 300 2,500 10% 2,000 200 1% 1,500 5% 1,000 100 500 0 0% 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015
Slide 9: Market Share Leader in Specialty Laminate
Market Share Leader in Specialty Laminate 2022 WW Specialty Laminate Market Share ITEQ: Leading CCL supplier • Worldwide top supplier in high speed / frequency laminate • Cutting-edge technology with MP track record • Secular growth momentum in network infrastructure and data centers upgrading oppor
Slide 10: Manufacturing Site & Capacity – Expansion Plan
Manufacturing Site & Capacity – Expansion Plan JiangXi Plant (Phase I) - 2020 Laminate (600K SHT/Month) Prepreq (3,500K M/Month) (Phase II) - 2021 Laminate (600K SHT/Month) Prepreq (3,500K M/Month) (Phase III) – 2022 & 2023 Laminate (1,200K SHT/Month) Prepreq (5,000K M/Month) WuXi Plant Laminate (1,
Slide 11: Market Trend & Growth Drivers
Market Trend & Growth Drivers ITEQ
Slide 12: Hunger for High-Speed / Frequency Transmission
Hunger for High-Speed / Frequency Transmission Global Mobile Network Data Traffic (EB per month) ⚫ The Expansion of Global Mobile Network Data Traffic Continues on the Rise - Telecommunications equipment & datacenter - Base station, ground satellite transceiver station - Core (traditional / cloud da
Slide 13: Server Shipment Growth Intact from 2024
Server Shipment Growth Intact from 2024 Global Server Shipment Forecast 20,000 15,000 10,000 5,000 - 2022 2023(f) 2024(f) 2025(f) 2026(f) 2027(f) 2028(f) Shipments 18,122 14,802 15,532 16,588 17,301 18,651 19,751 YoY 6.5% -18.3% 4.9% 6.8% 4.3% 7.8% 5.9% Source：DIGITIMES Research, 2024/02 2023~2028 G
Slide 14: Datacenter Server Platform Upgrade
Datacenter Server Platform Upgrade Platform Purley Whitley Eagle Stream Birch Stream Sapphire Emerald CPU Skylake Cascade Lake Ice lake Rapids Rapids Granite Rapids Nano Process 14 nm 14 nm+ 10 nm Intel 7 Intel 7 Intel 3 Intel PCIe Gen PCIe 3.0 PCIe 3.0 PCIe 4.0 PCIe 5.0 PCIe 5.0 PCIe 5.0 MP Time 20
Slide 15: Advanced Auto Application Opportunities
Advanced Auto Application Opportunities Green Power/EV Internet of Vehicle Active Safety Autonomous Driving • Energy Conservation • Infotainment • Active Safety System • HPC • Power Charging • Networking • ADAS • Graphic Processing • High Current & Voltage • 多層 HDI • Radar • Automated Driving • Heav
Slide 16: HDI New Product: Resin Coated Copper (RCC)
HDI New Product: Resin Coated Copper (RCC) Resin Coated Copper (RCC) ✓ Glass-free solution which enables further thickness reduction of dielectric layer while satisfies the needs towards fine-line pattern design (smaller form factor) and hybrid HDI/Substrate-Like PCB production. Cover film Dielectri
Slide 17: 4Q23 & 2023 Financial Results
4Q23 & 2023 Financial Results ITEQ
Slide 18: 4Q23 & FY23 Income Statement
4Q23 & FY23 Income Statement NTD $Million 4Q23 3Q23 4Q22 QoQ YoY 2023 2022 YoY Revenue 6,744 6,645 6,863 1.5% -1.7% 25,079 29,130 -13.9% Gross Profit 954 901 1,024 5.9% -6.8% 3,106 3,940 -21.2% Operating Expense 535 511 570 4.7% -6.1% 2,111 2,043 3.3% Operating Profit 419 390 454 7.4% -7.7% 995 1,89
Slide 19: Revenue & Gross Margin Rate
Revenue & Gross Margin Rate (Million $NTD) 21.29% 20.98% 20.96% 19.89% 19.42% 19.46% 18.84% 18.86% 18.86% 18.52% 18.36% 15.52% 15.10% 14.92% 14.15% 13.56% 12.24% 11.51% 10.70% 10.70% 8,930 8,168 8,030 8,269 7,472 7,397 7,646 6,863 6,645 6,744 6,379 6,153 6,220 6,112 6,352 6,260 5,965 5,618 5,430 5,2
Slide 20: Product Mix
Product Mix Consumer Electronics Infrastructure Smartphone Automotive 12% 11% 10% 12% 4Q23 14% 14% 17% 17% 18% 18% 20% 20% Product QoQ YoY 9% 10% 9% 8% Growth % 8% 8% 6% 7% 5% 6% 6% 6% Automotive -8.7% +4.0% 48% Smartphone +1.5% -1.7% 52% 56% 56% 57% 58% 59% 58% 58% 59% 60% 62% Infrastructure +4.9%
Slide 21: 4Q23 Balance Sheet
4Q23 Balance Sheet NTD $Million 4Q23 3Q23 4Q22 Total Assets 33,380 33,881 33,383 Cash 5,594 6,030 5,214 NR / AR 11,498 11,470 12,119 Inventories 3,014 2,834 2,731 Fixed Assets 11,180 11,387 11,102 Total Liabilities 13,940 14,126 13,272 Short-term Debt 2,921 2,554 2,633 NP / AP 5,991 6,332 5,926 Long
Slide 22: 2017 – 2023 Dividend Policy
2017 – 2023 Dividend Policy Cash Year EPS(NT$) Dividend(NT$) Pay-out Ratio(%) Dividend(NT$) 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% 2021 9.00 5.0 5.0 56% 2022 4.94 3.0 3.0 61% 2023 1.86 1.5 1.5 81% *New shares issuance of 30 million common shares concl
Slide 23: Thank you
Thank you Question and Comment
Slide 24: Appendix
Appendix ITEQ
Slide 25: Well-Expanded Product Line
Well-Expanded Product Line RF Application Super Ultra M8 IT-88GMW Low Loss Df 0.0015~0.0010 IT-999GSE IT-8300GA IT-998GSE IT-8350G IT-8615G IT988G/SE Ultra M7 IT988GL/SE Low Loss Df 0.005~0.0015 IT968GSE Very M6 Low Loss Df 0.006~0.005 IT968, IT968G M4 Low Loss IT958G, IT170GRA2, IT150DA Df 0.009~0.
Slide 26: CCL & PP Manufacturing Flow
CCL & PP Manufacturing Flow Core Technology 1: Material Science Resin Accelerator Hardener Copper Foil Core Technology 2: Copper Clad Resin Mixture Prepreg Laminate (CCL) ∞ (PP) Treating Mixture Glass Fiber Cutting Ply-up Lamination Inspection Core Technology 3: Process Engineering 26
Slide 27: CCL & PP Composite Structure
CCL & PP Composite Structure CCL Manufacturing Process CCL/PP Glass Mixture Fiber Resin Accelerator Hardener CCL Copper CCL PP Foil 27
Slide 28: AI Server Robust Demand to Drive CCL Content Growth
AI Server Robust Demand to Drive CCL Content Growth AI Server CPU*2 Mainboard AI Server GPU OAM*8 AI Server GPU UBB (Content Value – mid) (Content Value – high) (Content Value – high) CPU MB GPU Tray CCL: Very Low Loss CCL: Very Low Loss CCL: Ultra Low Loss / VLL Layer Count: 14 to 24 Layer count: 2