Kinik Co. · TWSE:1560

Kinik — Q3 2024 Earnings Presentation

41 slides from Kinik's earnings presentation, Nov 18, 2024

  1. Slide 1: Investor Conference 18-Nov. 2024

    Investor Conference 18-Nov. 2024 1

  2. Slide 2: Disclaimers

    Disclaimers • The prospective statements released or mentioned in this presentation are based on our company’s data as well as the current situation. • The forward-looking statements contained in this presentation are affected by risks, uncertainties, and people’s inferences. As a result, actual res

  3. Slide 3: Outline

    Outline • Welcome William Lee, DBU President/Spokesperson Tony Pai, Vice President/Acting Spokesperson • Company overview • 3Q 2024 financial results • 2024 outlook • Q&A • Appendix: KINIK Visions/Missions, Products, Plants information 3 Copyright© KINIK COMPANY, All Rights Reserved.

  4. Slide 4: Company Overview

    Company Overview  Company established in 1953; Taiwan Stock Code 1560  Capital : 1,458M TWD (Sep. 30 2024)  Employees： ~2100 worldwide. (~1800 in Taiwan.)  2023 revenue 6,381M TWD, EPS 5.91  Main Products by 3 Business Units and Sales Ratio in 2023 Product Introduction ABU: Abrasives BU Subsidi

  5. Slide 5: 3Q24 Consolidated Income statement

    3Q24 Consolidated Income statement  3Q24 revenue 1,859M TWD(USD 57.5M), QoQ +7.4%, GM 30.1%(-1.5 ppt), EPS 1.96  1~3Q24 revenue 5,185M TWD(USD 161.8M), YoY +8.3%, GM 31.3%(+1.4 ppt), EPS 5.48  The TWD/USD appreciation in 3Q24 induced ~29M non-operation loss (which was depreciation and had 25M gai

  6. Slide 6: 3Q24 Sales Performance by BU

    3Q24 Sales Performance by BU ABU: Grinding Wheel DBU: CMP Pad Conditioner SBU: Reclaim Wafer Others: Subsidiaries  ABU: With lower demands in machinery & mechanical industries, QoQ sales -0.5%.  DBU: With higher CMP diamond disk’s demands in advanced logic technologies and the memory customers, Qo

  7. Slide 7: 1Q~3Q24 Sales Performance by BU

    1Q~3Q24 Sales Performance by BU ABU: Grinding Wheel DBU: CMP Pad Conditioner SBU: Reclaim Wafer Others: Subsidiaries  KINIK 1Q~3Q24 revenue YoY +8.3%. Business Unit 1Q~3Q 2023 1Q~3Q 2024 YoY ABU 574,244 621,968 12% 8.3% (Grind Wheel) DBU (CMP 1,324,045 1,638,601 32% 23.8% Diamond Disk) SBU (Test &

  8. Slide 8: 3Q24 Diamond Disk Sales (1/2)

    3Q24 Diamond Disk Sales (1/2) Diamond Disk Sales Ratio by Region 8 Copyright© KINIK COMPANY, All Rights Reserved.

  9. Slide 9: 3Q24 Diamond Disk Sales (2/2)

    3Q24 Diamond Disk Sales (2/2) • In 3Q24, the sales ratio of advanced technologies(5 nm and below) was slightly reduced to 52.6% from 53.3%. • Small-scale shipments of 2nm diamond disks have begun. Remark：Data regards to one specific customer. 9 Copyright© KINIK COMPANY, All Rights Reserved.

  10. Slide 10: 3Q24 SBU Test/Reclaim Wafer Sales

    3Q24 SBU Test/Reclaim Wafer Sales  Sales of 12-inch test wafers and specialty wafers increased, with quarterly revenue growth of 7.9%.  The sales ratio of test and special wafers (8-inch + 12-inch) increased by 4.0 percentage points to 54%. 10 Copyright© KINIK COMPANY, All Rights Reserved.

  11. Slide 11: 2024 Outlook

    2024 Outlook  KINIK group: Estimated YoY revenue growth +7% to +10%, gross margin 30% to 32% and an operating margin 15.5% to 17.5%. (Compared to the estimates in 1Q24, the midpoint estimate is +3% in revenue, -4% in gross margin, and -2.5% in operating margin).  ABU Grinding Wheel – Due to a slig

  12. Slide 12: Q&A Thanks for your attention

    Q &A Thanks for your attention KINIK’s investor rel ationship mai l: ir@kinik.com.tw 12 Copyright© KINIK COMPANY, All Rights Reserved.

  13. Slide 13: Appendix

    Appendix Company Philosophy, Mission, and Vision  Introduction of KINIK Products  Plants Information Company Milestone 13 Copyright© KINIK COMPANY, All Rights Reserved.

  14. Slide 14: KINIK Company

    KINIK Company 14 Copyright© KINIK COMPANY, All Rights Reserved.

  15. Slide 15: History, Now, and Future of KINIK

    History, Now, and Future of KINIK 15 Copyright© KINIK COMPANY, All Rights Reserved.

  16. Slide 16: Core Technology Grinding

    Mw Core Technology “ Grinding” ©... Xs _— lie61 ae? yer Diamond Dresser Bonding Tool CMP Disk Si/SiC Wafer Thinning y )

  17. Slide 17: Major Product and Business Diagram

    Major Product and Business Diagram Customer Semiconductor/Electronics/Optical… Machinery/Mechanical… Industries • CMP Disk • Grinding Wheel Major • Test Wafer • Resin Wheel • Diamond Tool • Diamond Wheel Products • Reclaim wafer • Si/SiC Wheel • CBN Wheel • Plating Wheel SBU DBU ABU KTC Hongia (Semi

  18. Slide 18: Products Introduction

    中砂產品介紹 Products Introduction 18 Copyright© KINIK COMPANY, All Rights Reserved.

  19. Slide 19: KINIK's products in Semiconductor Industries

    KINIK’s products in Semiconductor Industries Revenue in 2023 3.3 billion 1.7 billion Ingot test& CMP Wafer Dicing Dressing 2.5D/3D ABF Bevel grind reclaim Disk thinning blade board Package bonding grind wafer grind tool Wafer IC Manufacturing IC Packaging 研磨技術 (Grinding Technology by Diamond Abrasiv

  20. Slide 20: Test / Reclaim Wafer

    測 試 & 再 生 晶 圓 Te s t / R e c l a i m Wa f e r What is test and reclaim wafer? 20 Copyright© KINIK COMPANY, All Rights Reserved.

  21. Slide 21: Test / Reclaim Wafer

    測 試 & 再 生 晶 圓 Te s t / R e c l a i m Wa f e r 中砂的再生晶圓之製程特色以延性輪磨(Ductile Mode Grinding)加工取代傳統 研磨(Lapping)加工，目的是降低加工之變質層，減少化學藥品污染，且可提高加工 精度，為最先進之再生晶圓製程。 The features of the KINIK reclaimed wafers are refurbished by ductile mode grinding used to replace traditional lapping to lower the strained thickne

  22. Slide 22: CMP Diamond Disk

    CMP鑽石碟 Diamond Disk CMP (Chemical Mechanical Polish) 化學機械拋光，主要用於先進IC製程中，透過拋光墊與拋 光液同時透過機械與化學反應加工晶圓表面，達到表面晶圓材料的移除及整體的平坦化，才能接續後 續製程以及提高良率，進而能循摩爾定律持續微縮IC線寬面積，推展出N5/N3/N2先進製程。而鑽石 碟的功用就是在拋光晶圓的同時去加工拋光墊，以移除拋光時的副產物及穩定拋光速率並提升良率 及延長拋光墊使用壽命，是先進IC拋光製程中提升良率及控制成本中非常重要的一環。 CMP (Chemical Mechanical Polish) is widely

  23. Slide 23: CMP Diamond Disk

    CMP鑽石碟 Diamond Disk 中砂鑽石碟用於半導體化學機械研磨製程中修整研磨墊以達到理想移除率及平坦度。 KINIK diamond disk is used on semi-conductor CMP process in order to make the pad reach the desirable removal rate and uniformity. Conventional Disk DiaGrid® I-DiaGrid® S-DiaGrid® Advanced Disk：High Performance / Long Life Time Pyradia® O-Pyr

  24. Slide 24: Metal-free O-Pyradia Diamond Disk

    Metal-free O-Pyradia® 鑽石碟  O-Pyradia CMP pad conditioner for advanced customer’s tightened metal contamination control. Pyradia Type O-Pyradia Pyradia Tip Height Control Photo Material of Substrate Polymer Metal Strong Metal O-Pyradia Diamond Free LM(Ni ; Cr Bonding Material Polymer powder) Bonding

  25. Slide 25: Semiconductor Grinding Wheel

    Semiconductor Grinding Wheel  The Wafer grinding wheels are used in the in-feed grinding process of semiconductor wafers such as Si, SiC, and advanced 2.5D/3D package (Cu/compound…etc.). The in-feed grinding process consists of rough and fine grinding processes. Wafer grinding wheels are made of di

  26. Slide 26: Diamond Roller

    Diamond Roller  The diamond rollers are used to sophisticatedly dress the complex and high precision form of grinding wheels (e.g. Al2O3, SiC, cBN wheels) for automatic shaping high volume production of high precision transmission components such as ball screws, guides, bearings, gears, tools, auto

  27. Slide 27: Tools for Semiconductor & photoelectric

    To o l s f o r S e m i c o n d u c t o r & p h o t o e l e c t r i c 中砂以最新電鑄、成型與燒結技術製造成的精密鑽石切割刀。搭配特殊的 金屬與樹脂等結合劑，使切割軟刀具備高剛性、低磨耗且具備良好的自銳性； 適合在各類精密陶瓷、硬脆材料、磁性材料，光學玻璃，印刷電路板與半導體 封裝材料的切割應用。 KINIK Company announces the introduction of Super Hubless Dicing Blade with resin, metal and nickel matrices. The dic

  28. Slide 28: Tools for Semiconductor & photoelectric

    To o l s f o r S e m i c o n d u c t o r & p h o t o e l e c t r i c 多孔質陶瓷真空吸盤 Porous Ceramic Chuck Table 多孔質陶瓷孔洞均勻微細、不發塵、可具靜電消散特性， 應用於真空吸盤具備吸力均勻、局部吸附性、不產生印痕、 工作效率及精度高等優點，可充分應用於半導體研磨、清洗、 切割及檢測等設備。 – High-performance, High-precision, Uniform suction force. – Partial chucking without sagging. – Chucki

  29. Slide 29: Ultra Precision Machining Tools

    金屬精密加工刀具 U l t r a P r e c i s i o n M a c h i n i n g To o l s 中砂提供電子業、PCB板、木工業及金屬加工業所需的單晶（SCD）、聚晶鑽（PCD）、 立方氮化硼（PcBN）等鑽石刀具已逾20年。 近年積極投入生產高精度、更微小之SCD、PCD 及 PcBN產品供光學業、精密模具等加 工技術使用，如：單晶鑽石車刀與銑刀、PcBN微小徑銑刀等。 KINIK company already has more than 20-year experience in providing all kinds of diamond tools f

  30. Slide 30: PVD/CVD Coating Service

    PVD/CVD 鍍膜 PVD/CVD Coating Service 中砂鍍膜代工中心2000年成立，在PVD/CVD真空鍍膜領域深耕近20 年，不斷投入相關鍍膜設備及開發TiN、TiCN、TiAlN、DLC、Diamond鍍 膜技術等。同時持續將研究成果應用至各個產業，提供給客戶高效能的鍍膜 應用工具，包括機械加工、精密模具、3C產品、汽車、通訊、醫療、光學及 電子產業等。 Established in 2000, KINIK Coating Center has 20 years of experiences in PVD/CVD coating. KINIK persistently i

  31. Slide 31: Traditional Grinding Wheel & Diamond / CBN Grinding Wheel

    傳統砂輪及鑽石/CBN砂輪 Traditional Grinding Wheel & Diamond / CBN Grinding Wheel 中砂提供各式平面、內外圓、無心及雙平面等工件研磨及切斷用的傳統、 BD及電鑄砂輪。 主要產業應用包含精密機械業的滑軌及齒輪研磨與砂輪成形修整用的鑽石滾 輪、鋼鐵業的輥筒研磨、工具製造業的高速鋼鑽頭、CNC及PCD/PcBN刀具等 研磨、半導體業的晶圓減薄及倒角研磨、高效率硬脆材料如SiC研磨用的蜂巢砂 輪、光學模具模仁拋光等。 KINIK provides various grinding wheels for surface, internal &

  32. Slide 32: Traditional Grinding Wheel & Diamond / CBN Grinding Wheel

    傳統砂輪及鑽石/CBN砂輪 Traditional Grinding Wheel & Diamond / CBN Grinding Wheel 32 Copyright© KINIK COMPANY, All Rights Reserved.

  33. Slide 33: Traditional Grinding Wheel & Diamond / CBN Grinding Wheel

    傳統砂輪及鑽石/CBN砂輪 Traditional Grinding Wheel & Diamond / CBN Grinding Wheel 33 Copyright© KINIK COMPANY, All Rights Reserved.

  34. Slide 34: Traditional Grinding Wheel & Diamond / CBN Grinding Wheel

    傳統砂輪及鑽石/CBN砂輪 Traditional Grinding Wheel & Diamond / CBN Grinding Wheel 34 Copyright© KINIK COMPANY, All Rights Reserved.

  35. Slide 35: Plant Information

    廠區 Plant Information 總 公 司 Head Office 鶯歌廠區 Yingge Factory 239010 新北市鶯歌區中山路64號 No.64, Zhongshan Rd., Yingge Dist., New Taipei City 239010, Taiwan TEL:+886 2 2679-1931~40 Grinding Wheel & Diamond Disk 樹林廠區 Shulin Factory 238010 新北市樹林區中山路2段151巷16號 No.16, Ln. 151, Sec. 2, Zhongshan Rd., Shulin Dist., N

  36. Slide 36: Plant Information

    廠區 Plant Information 竹北廠區 Zhubei Factory 302059 新竹縣竹北市十興路260號 No.260, Shixing Rd., Zhubei City, Hsinchu County 302059, Taiwan TEL:+886 3 550-7160~5 竹科廠區 Hsinchu Science Reclaim & Test Wafer Park Factory 350401 苗栗縣竹南鎮科北五路6號 再生晶圓 & 測試晶圓 No. 6, Kebei 5th Rd., Jhunan Township, Miaoli County 350401, Taiw

  37. Slide 37: Plant Information

    廠區 Plant Information 鴻記工業股份有限公司 Hongia Industry Co, Ltd. 239008 新北市鶯歌區余厝巷2號 No. 2, Yucho Lane, Yingge Dist., New Taipei City 239008, Taiwan TEL:+886 2 2679-1006 Email : hongia-sale@kinik.com.tw www.hongia.com.tw Electroplated Diamond Wheel 電鑄砂輪 金力泰國有限公司 Kinik - Thai Co., Ltd. 225 Moo 7 , Khok Pip, S

  38. Slide 38: Milestone

    榮耀記事 Milestone 2021年11月榮獲行政院「第26屆國家品質獎 全面卓 越類 - 績優經營獎」。 Nov. 2021, Honored with “BUSINESS MERIT AWARD of Total BUSINESS EXCELLENCE” at the 26th NATIONAL QUALITY AWARD from the Executive Yuan, R.O.C. https://nqa.cpc.tw/NQA/Web/Awards26th_Content.aspx?p=f2b6e812- 92aa-49c3-8149-1e005a0fe706 38 Copyrig

  39. Slide 39: Milestone

    榮耀記事 Milestone 2021年10月榮獲經濟部「2022年第30屆台灣精品獎 - 12吋再生晶圓」。 Oct. 2021, Honored with “Taiwan Excellence Award - 12" Reclaimed Wafers” from the MOEA, R.O.C. https://www.taiwanexcellence.org/tw/award/product/1110433 Copyright© KINIK COMPANY, All Rights Reserved. 39

  40. Slide 40: Milestone

    榮耀記事 Milestone 榮獲經濟部第四屆卓越中堅企業獎 Honored with 4th Taiwan mittelstand Award from the MOEA, R.O.C, in 2017. 榮獲經濟部2013年 第14屆 工業精銳獎 機械、運輸工業類 Honored with 14th Industrial Sustainable Excellence Award from the MOEA, R.O.C, in 2013. 榮獲經濟部台灣百大品牌獎 Honored with the Top 100 Taiwan Brands Award from the MOEA, R.O

  41. Slide 41: Milestone

    榮耀記事 Milestone 榮獲經濟部2006年台灣優良品牌獎 Honored with the Taiwan Superior Brand Award from the MOEA, R.O.C, in 2006. 榮獲第十屆經濟部產業科技發展傑出獎 Award of Excellence, the 10th R.O.C. MOEA Industrial Technology Advancement Award in 2002. 全國第一家砂輪公司榮獲國家傑出精品獎 The first grinding wheel plant won Excellent Product Award in 1

Kinik Company — Q3 2024 Earnings Presentation on 6ix