Walsin Technology Corporation · TWSE:2492

Walsin Technology — Investor Conference April 30, 2008

32 slides from Walsin Technology's conference presentation, Apr 30, 2008

  1. Slide 1: Walsin Technology Corporation Investor Conference

    .( :2492) 說 2008年4 30 Walsin Technology Corporation 1 http://www.passivecomponent.com

  2. Slide 2: Contents

    • 說 • • • • 料 • 利 • • 金流量 • • 2008 臨 不利 略 • & Walsin Technology Corporation 2 http://www.passivecomponent.com

  3. Slide 3: Growth and Trend: Sales Revenue

    19.7 400% 20.0 ) 18.0 15.6 338% 350% 率 16.0 300% 14.0 250% 10.7 244% 12.0 10.0 200% ( 8.0 6.5 7.9 150% 5.8 135% 6.0 4.5 100% 4.0 44% 75% 28% 50% 2.0 7.8% 18.2% 24.2% 21.6% 16.4% 17.7% - 0% 17.5% 0% 2001 2002 2003 2004 2005 2006 2007 年度 年度 率 利率 2001 ( ) 2007 累 率 26%, 率 21%. Walsin Technology Corporat

  4. Slide 4: Global Market Position MLCC and Chip-R

    2007年 MLCC 量 率 2007年Chip-R 量 率 Panasonic 3% Others Panasonic Ralec Murata Rohm Others Taiyo Yuden 9% 7% 6% 27% 8% 6% 5% KOA 10% Kyocera/AVX 8% Royal Ohm Yageo Yageo 9% 23% TDK 10% 14% Ta-I SEMCO Walsin Walsin 11% 14% 13% +Kamaya 17% ! ! : 1. MLCC : Digitimes, 2007 5 2. Chip Resistor : Paumanok Publi

  5. Slide 5: Multi-Facet Revenue Profile

    TEL CE 13.0% 14.0% Private label Taiwan, 10.0% 15% China, Disti 52% 24.0% AP- China, 22% PC 25.0% EMS 6.0% Chip-R Europe, NAFTA, Industry 24% 6% 6% 8.0% FC+Disc 6% RF+EM 8% MLCC Others 57% 5% Walsin Technology Corporation 5 http://www.passivecomponent.com

  6. Slide 6: QoQ Sales and Profitability

    利 : 數 Q1/07 Q2/07 Q3/07 Q4/07 2007 Q1/08( 數) Amount % Amount % Amount % Amount % Amount % Amount % 3,748.2 100.0% 5,074.8 100.0% 5,550.5 100.0% 5,321.7 100.0% 19,695.2 100.0% 4,537.4 100.0% (2,827.8) -75.4% (3,993.3) -78.7% (4,305.0) -77.6% (4,342.7) -81.6% (15,468.9) -78.5% (4,031.2) -88.8% 利 920.4

  7. Slide 7: QoQ Asset Conversion Cycle

    : / 數 數 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 ( 數) 4,347 5,569 6,308 6,257 5,464 數 118 113 111 107 118 4,052 4,542 4,956 5,082 4,806 數 123 108 105 102 112 3,372 4,545 4,932 5,318 4,503 數 101 99 95 96 112 金 5,027 5,567 6,332 6,021 5,767 金 140 122 120 113 118 Walsin Technology Corporation 7 http://www.passive

  8. Slide 8: QoQ Cash Flow

    金流量 : 數 H1'07 Q3'07 Q4'07 Q1'08( 數) Amount Amount Amount Amount 780 456 30 (213) 金流 1,355 527 1,091 407 金流 (2,221) (1,517) (1,762) (552) 金流 985 815 704 828 金 金 134 (179) (13) 711 金 金 1,410 1,544 1,365 1,352 金 金 1,544 1,365 1,352 2,063 Walsin Technology Corporation 8 http://www.passivecomponent.com

  9. Slide 9: Financial Update Summary

    ( ) Y2005 Y2006 Y2007 Y2008Q1*1 10,651 15,603 19,695 4,537 率 . 率 (*2) 33.9% 46.5% 26.2% 21.0% 利率 17.7% 24.2% 21.5% 11.2% 利 率 5.7% 12.2% 10.0% -1.9% 率 6.9% 10.7% 6.4% -4.7% ( ) 1.67 2.85 2.15 (0.36) ( ) 25.04 26.46 27.21 26.40 率 6.5% 11.7% 7.9% -1.3% 利率 20.4% 24.2% 20.2% 8.8% 20,821 25,376 31,674 30,

  10. Slide 10: Unfavorable Macro Operating Environment 2008

    2008年 不利 • 受到美國經濟衰退的影響,全球經濟於第一季減緩成長 • 自2007年第四季起至2008年第一季輕微的供過於求造成平均銷 貨單價於高容MLCC減少約10%,整體約減少3% • 主要原物料價格於2007年12月起至2008年第一季急遽的上漲 • 中國新實施的勞動合同法使2008年勞動成本增加約10%~12% • 中國雪災造成無法預期的電力短缺 • 極弱勢美元造成原有成長的營收及毛利縮減 Walsin Technology Corporation 10 http://www.passivecomponent.com

  11. Slide 11: Unfavorable Environment: Non-Operating Items

    2008年 不利 2007- Dec. 2008-Mar 31 change 32.44 30.405 -6.3% 112 100.15 -10.6% 7.3 7.014 -3.9% 力 數 數 : 1. 率 : 2. 力 : ( 力 24 ) 60% Walsin Technology Corporation 11 http://www.passivecomponent.com

  12. Slide 12: Unfavorable Environment: Operating Items

    2008年 不利 1. 料 : / 200712~ 200803 (Q1) 金( )/ +36.4% +39.4% +12.8% +32.6% +26.5% Walsin Technology Corporation 12 http://www.passivecomponent.com

  13. Slide 13: 2008 Q2-Q4 Update

    2008 利 降,更 1. 復 利 率( 70%, 96%) 2. 料 降 3. 2008年 15% 勞 力 4. 5. 易 易 率 , 率 6. 2008年 利 率 , 10% , , 利率 利 率 2008年 7. , 2008年 力 8. , 立20 練 /列 , 2008年 Walsin Technology Corporation 13 http://www.passivecomponent.com

  14. Slide 14: 2008 Strategies: Core Competences and Selective Push 3-1

    2008 略 • 力 3-1 MLCC領 領 1. 力 . . 2. 朗 0402 40% . 3. F B 4. NPO ( - ) BME( 金 )更 / 領 Walsin Technology Corporation 14 http://www.passivecomponent.com

  15. Slide 15: 2008 Strategies: Core Competences and Selective Push 3-2

    2008 略 • 力 3-2 Kamaya , 1. 0201 Chip R + 0201 MLCC (NPO/X7R) 2. ,北 率 3. 01005 Chip R 領 Walsin Technology Corporation 15 http://www.passivecomponent.com

  16. Slide 16: 2008 Strategies: Core Competences and Selective Push 3-3

    2008 略 • 力 3-3 1. , 2. 率: Chip Fuse( ) + Low Ohmic( ) + High Precision ( )+ HV( ) 3. RF( ) HF( ) 零 Walsin Technology Corporation 16 http://www.passivecomponent.com

  17. Slide 17: Walsin Technology Corp. (2492.TW) Investor conference

    Walsin Technology Corp. (2492.TW) Investor conference April 30, 2008 Walsin Technology Corporation 1 http://www.passivecomponent.com

  18. Slide 18: Contents

    Contents • Walsin Tech Fact Sheets • Growth and Trend • Global Ranking • Multi-Facet Profile • Financial Updates • QoQ Sales and Profitability • QoQ Asset Conversion Cycle • QoQ Cash Flow • Summary • Unfavorable Macro Operating Environment Q1 08 and Strategic Actions Q2 onwards • Q&A Walsin Technolo

  19. Slide 19: Growth and Trend: Sales Revenue

    Growth and Trend 19.7 400% 20.0 Sales Revenue(BNTD) 18.0 338% 350% Sales Growth Rate 15.6 16.0 300% 14.0 250% 10.7 244% 12.0 10.0 200% 8.0 6.5 7.9 150% 5.8 135% 6.0 4.5 100% 4.0 44% 75% 28% 50% 2.0 7.8% 18.2% 17.7% 24.2% 21.4% 16.4% - 0% 17.5% 0% 2001 2002 2003 2004 2005 2006 2007 Year Annual sales

  20. Slide 20: WTC Global Market Position

    WTC Global Market Position 2007 Global Market Share of MLCC in Qty. 2007 Global Market Share of Chip-R in Qty. Panasonic 3% Others Panasonic Ralec Murata Rohm Others Taiyo Yuden 9% 7% 6% 27% 8% 6% 5% KOA 10% Kyocera/AVX 8% Royal Ohm Yageo Yageo 9% 23% TDK 10% 14% Ta-I SEMCO Walsin Walsin 11% 14% 13%

  21. Slide 21: Multi-Facet Revenue Profile

    Multi-Facet Revenue Profile by Market Segments TEL CE by Geographic Areas 13.0% 14.0% Private label Taiwan, 10.0% 15% China, Disti 52% 24.0% AP- China, 22% PC 25.0% EMS 6.0% Chip-R Europe, NAFTA, Industry 24% 6% 6% 8.0% FC+Disc 6% by Product Types RF+EM 8% MLCC Others 57% 5% Walsin Technology Corpor

  22. Slide 22: QoQ Sales and Profitability

    QoQ Sales and Profitability Amount in NTD MM Consolidated Q1/07 Q2/07 Q3/07 Q4/07 2007 Q1/08 (Pre-Audit) Amount % Amount % Amount % Amount % Amount % Amount % Net Sales 3,748.2 100.0% 5,074.8 100.0% 5,550.5 100.0% 5,321.7 100.0% 19,695.2 100.0% 4,537.4 100.0% Cost of Sales (2,827.8) -75.4% (3,993.3)

  23. Slide 23: QoQ Asset Conversion Cycle

    QoQ Asset Conversion Cycle Consolidated Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 (pre-audit) Accounts Receiable 4,347 5,569 6,308 6,257 5,464 DSO 118 113 111 107 118 Inventoy 4,052 4,542 4,956 5,082 4,806 Inventory Conversion Period 123 108 105 102 112 Accounts Payable 3,372 4,545 4,932 5,318 4,503 Payable Def

  24. Slide 24: QoQ Cash Flow

    QoQ Cash Flow Amount in NTD MM Consolidated H1'07 Q3'07 Q4'07 Q1'08 (pre-audit) Amount Amount Amount Amount NPAT 780 456 30 (213) Net Cash Provided by(Used in) Operating Activities 1,355 527 1,091 407 Net Cash Provided by(Used in) Investing Activities (2,221) (1,517) (1,762) (552) Net Cash Provided

  25. Slide 25: Financial Update Summary

    Financial Update Summary Y2008Q1 (NTD m illion) Y2005 Y2006 Y2007 (pre-audit) Net Sales 10,651 15,603 19,695 4,537 Avg Sales Gr. Rate(*2) 33.9% 46.5% 26.2% 21.0% GPM% 17.7% 24.2% 21.5% 11.2% EBIT% 5.7% 12.2% 10.0% -1.9% NPAT% 6.9% 10.7% 6.4% -4.7% E.P.S.(NTD) 1.67 2.85 2.15 (0.36) B.P.S(NTD) 25.04 2

  26. Slide 26: Unfavorable Macro Operating Environment Q1 2008

    Unfavorable Macro Operating Environment Q1 2008 • Triggering by US recession concerns, global economy is slowed in Q1 2008, Order trends slowed down. • A slight oversupply becomes reality from Q4 07 – Q1 08 resulting ASP Erosion. HC ~ - 10%, overall - 3%. • Soaring Raw material price hike Dec 07 to

  27. Slide 27: Unfavorable Macro Operating Environment Q1 08: Non Operating Items

    Unfavorable Macro Operating Environment Q1 08 Non Operating Items FX rate 2007- Dec. 2008-Mar 31 change NTD 32.44 30.405 -6.3% YEN 112 100.15 -10.6% RMB 7.3 7.014 -3.9% Power Shortage Days due to Snow Storm in China Loss days Jan 3 Feb 12 Mar 9 Total 24 Major loss Factors :- 1. Exchange Losses Q1 :

  28. Slide 28: Unfavorable Macro Operating Environment Q1 08: Operating Items

    Unfavorable Macro Operating Environment Q1 08 Operating Items 1. Raw material costs up:- 3-Month Trend / 200712~ 200803 (Q1) U.S. Dollar / Ounce Silver Palladium Nickel +36.4% +39.4% +12.8% Tin +32.6% Copper +26.5% Walsin Technology Corporation 12 http://www.passivecomponent.com

  29. Slide 29: 2008 Q2 – Q4 Update

    2008 Q2 – Q4 Update Focusing on margin drivers / costs reduction than revenue drivers 1. Resume high loading Q2 onwards [Q1 : 70% to Q2 : est. ~96%] 2. More alternative in house Raw material to dilute cost increase. 3. Improve overall labor productivity by min 15% as target By Q2 08 4. Re-structure

  30. Slide 30: 2008 Onward Strategies: Core Competences and Selective Push 3-1

    2008 Onward Strategies • Core Competences and Selective Push 3-1 Solidifying leading edge in general MLCC 1. Competitive global Q.C.D. 2. China DL plant 0402 size > 40% in Q2. 3. Continue dominance in PC / CE on F and B specs 4. Push NPO (Ni-Cu) BME in CE/mobile sectors Walsin Technology Corporation

  31. Slide 31: 2008 Onwards Strategies: Core Competences and Selective Push 3-2

    2008 onwards strategies • Core Competences and Selective Push 3-2 Leveraging Kamaya position to newer, miniaturized product applications 1. 0201 Chip R + 0201 MLCC (NPO/X7R) in mobile/CE 2. Design win in Japan with expanding shares in Korea, North America, and Europe 3. Expand already leading 01005

  32. Slide 32: 2008 Onward Strategies: Core Competences and Selective Push 3-3

    2008 Onward strategies • Core Competences and Selective Push 3-3 Selective Specialties Push 1. High Cap and specialties in PC/CE and fine pitch memory modules 2. Expand market share on Chip Fuse + Low Ohmic + High Precision + HV 3. RF and HF components in wireless and mobile sectors Walsin Technolog

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