Slide 1: Operating Results Report for Q4 of 2021 and Year 2021
Operating Results Report for Q4 of 2021 and Year 2021 Mar. 8, 2022 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 1
Slide 2: Content
Content 1. Market Information 2. Operating Overview for Q4 of 2021 and Year 2021 3. Outlook for Dynamic 4. Dynamic Actions in ESG 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 2
Slide 3: Disclaimer
Disclaimer The forward-looking statements in this report contain unknown risks and uncertainties, which may cause actual operating results to be materially different from the forward-looking statements, the statements about historical events are excluded. The forward-looking statements in this r
Slide 4: Market Information
Market Information 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 4
Slide 5: Major Global Economies and Taiwan's Economic Growth Rate
Major Global Economies and Taiwan's Economic Growth Rate Source：IMF & Taiwan Accounting Office In 2022, global economic growth is being hampered by the spread of the Omicron epidemic, supply chain disruptions, and rising inflation. IMF released a new "World Economic Outlook" report in January, d
Slide 6: Trend of International Copper Price
Trend of International Copper Price Source：ITRI Being affected by the mine strike in Chile in 2021 Q3, which is the world's largest copper producer and the drought and water shortages in Q4, copper mine production continued to decline. Disruptions on the supply end will remain an important factor
Slide 7: International Exchange Rate
International Exchange Rate Source：ITRI Foreign capital continued to flow in, and NTD and CNY continued to rise. The NTD/USD exchange rate in January 2022 edged up by 0.3% from December to NTD 27.678 per USD. As the US Federal Reserve (Fed) is expected to start raising interest rates as soon as Ma
Slide 8: Global PCB output value scale
Global PCB output value scale 資料來源：TPCA, 工研院產科國際所 Driven by the strong recovery of the global economy and consumption, the global PCB output value in 2021 was 84 billion US dollars, with a growth rate of 20.6%, which is rare in the past. In 2022, under the high base period, the projected growth ra
Slide 9: World Semiconductor, PCB, GDP Forecast
World Semiconductor, PCB, GDP Forecast 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 9
Slide 10: 2021 PCB Market Overview (I)
2021 PCB Market Overview (I) • PCB grew by 6.4% in 2020 and was expected to grow by 22.6% in 2021. • Demand comes from: The ongoing X-From-Home trend Industrial, medical and automotive recovery in the first half of 2021, mainly in the first to third quarters of 2021. Product upgrades: such as
Slide 11: 2021 PCB Market Overview (II)
2021 PCB Market Overview (II) Key characteristics of the PCB market in 2021: Packaging substrate revenue and profits grew rapidly Strong demand for Rigid and Flex PCB, high material costs and extrusion margins Disrupted supply logistics, increased inventory, tight cash flow In the middle o
Slide 12: Geographic Migration of PCB Production
Geographic Migration of PCB Production 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 12
Slide 13: Changes in PCB Market Product Mix
Changes in PCB Market Product Mix 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 13
Slide 14: PCB Market Q/Q Growth
PCB Market Q/Q Growth 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 14
Slide 15: The Global Sales of Light Vehicle
The Global Sales of Light Vehicle 2017:95M Jan. 84M 2021:81M 2020:77.80M LMC Automotive Jan. 2022 In 2021, global light vehicle sales reached 81 million, and the shortage of supply was crucial. Many countries generally faced low inventory, long delivery times for new cars, and high average selling
Slide 16: The automotive market size is projected to be 88.6 million units in 2022
The automotive market size is projected to be 88.6 million units in 2022 TrendForce projects that the supply chain shortage will not be eased until the second half of 2022. Taking the factors into account, such as supply constraints, the epidemic, deferred demand in 2021, and new demand in 2022, t
Slide 17: Electric vehicle sales top 6 million in 2021
Electric vehicle sales top 6 million in 2021 TrendForce research shows that the market sales of electric vehicles in 2021 including BEV (Battery Electric Vehicle) + PHEV (Plug-in Hybrid Electric Vehicle) have good chance of exceeding 6 million units, which will be a record year with the highest an
Slide 18: Electric cars will take the leading spot of all vehicles by 2033
Electric cars will take the leading spot of all vehicles by 2033(5 years ahead expected) 2021 report by EY • Electric vehicle sales in major global markets in Europe, China, and the U.S. will surpass that of regular gasoline vehicles within 12 years. • According to AI model, global non-electric vehi
Slide 19: Operating Overview for Q4 of 2021 and Year 2021
Operating Overview for Q4 of 2021 and Year 2021 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 19
Slide 20: 2021 Q4 Revenue by Application
2021 Q4 Revenue by Application Network & Consumer Server 3% Q4 4% Storage PC & Network & Consumer Q3 Device Peripherals Server 4% 11% 4% 4% PC & Storage Peripherals Display Device 5% Panel 13% Automotive 22% 56% Display Automotive Panel 50% 24% Automotive Display Panel Storage Device Network & Serve
Slide 21: 2021 Q4 Revenue by Technology
2021 Q4 Revenue by Technology Q4 HDI Double- Q3 21% sided Double- 11% HDI 16% sided 8 layer 4 layer 14% above 34% 8 layer 22% 6 layer above 4 layer 23% 35% 12% 6 layer 12% Double-sided 4 layer 6 layer 8 layer above HDI Change - 18% Change - 3% Change +3% Change -1% Change + 29% (TWD M (TWD M (TWD M
Slide 22: 2021 Revenue by Application
2021 Revenue by Application 2021 Consumer Network & 3% 2020 Server PC & 3% Peripherals Consumer Storage 6% 4% Network PC & Device & Server Periphera 14% Automotive 5% ls 52% 5% Display Storage Device Automoti Panel 16% ve 47% 22% Display Panel 23% +37% Change % +18% +7% -3% +1% Automotive Display Pa
Slide 23: 2021 Revenue by Technology
2021 Revenue by Technology 2021 HDI Double- 2020 17% sided HDI Double- 12% sided 8 layer 15% 8 layer 11% above 4 layer above 22% 36% 16% 6 layer 4 layer 13% 6 layer 44% 14% Change % +68% +41% +32% +16% +3% Double-sided 4 layer 6 layer 8 layer above HDI 2022 © Dynamic Electronics Co., Ltd. All Rights
Slide 24: Consolidated Income Statement
Consolidated Income Statement Accounts Q-o-Q Y-o-Y Q1-Q4 Q1-Q4 Y-o-Y 4Q21 3Q21 4Q20 (TWD 100M) Change% Change% 2021 2020 Change% Sales Revenue 41.58 41.17 1.0 % 35.12 18.4 % 157.53 126.24 24.8 % Gross Profit % 12.5 % 12.8 % (0.3)% 10.9 % 1.6 % 11.7 % 13.6 % (1.9)% ppts Operating expenses 3.09 3.15 (
Slide 25: Consolidated BS & Important Financial Indicator
Consolidated BS & Important Financial Indicator Accounts 4Q21 3Q21 4Q20 (TWD 100M) Amount % Amount % Amount % Cash and cash equivalents 27.30 15.5% 18.34 11.3% 9.99 7.6% Accounts receivable 46.25 26.2% 44.51 27.4% 37.17 28.2% Inventories 29.53 16.7% 31.12 19.1% 15.98 12.1% Property, plant and equipm
Slide 26: Consolidated Statements Of Cash Flows
Consolidated Statements Of Cash Flows (TWD 100M) 4Q21 3Q21 4Q20 Cash at beginning of period 18.34 25.27 16.70 Cash Flow from Operating (2.43) 0.70 4.81 Capital Expenditure (7.16) (3.13) (1.91) Cash Dividends Paid 0.00 (1.11) Cash Flow from Financing 18.09 (3.38) (9.66) Investment & Other 0.02 (0.03)
Slide 27: Consolidated IS & Statements Of Cash Flows
Consolidated IS & Statements Of Cash Flows Accounts Y-o-Y 2021 2020 (TWD 100M) Change% Sales Revenue 157.53 126.24 24.8 % Gross Profit % 11.7 % 13.6 % (1.9)% ppts Operating Income% 4.1 % 4.3 % (0.2)% ppts Net Income (loss) 4.70 6.79 (30.7)% EPS(NTD) 1.70 2.58 (34.1)% Cash Flow from Operating 1.52 16
Slide 28: 2021 Q4 Summary
2021 Q4 Summary Strong demand for automotive boards in Q4, with the proportion increasing from 50% to 56%. In terms of technology, HDI increased from 16% to 21%, showing high-tech products continued to increase. Q4 revenue holds steady, gross profit margin and operating net profit margin are m
Slide 29: 2021 Annual Summary
2021 Annual Summary The automotive board grew by 37%, and its revenue share increased from 47% to 52%, which is the product with the largest increase. In terms of technology, 8-layer boards and layer-count above increased by 68%, HDI increased by 41%. The combined proportion of the two increased
Slide 30: Outlook for Dynamic
Outlook for Dynamic 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 30
Slide 31: 2022 Outlook
2022 Outlook • The 2022 revenue target is low double digit growth. Due to the Spring Festival holiday, the revenue forecast in Q1 is lower than that in Q4 of the previous year. • Planning of Huangshi Plant ll : The construction of the plant has started in 2021Q1, with HDI and high-end manufacturin
Slide 32: Dynamic Actions in ESG
Dynamic Actions in ESG 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 32
Slide 33: Organizational Structure of ESG Sustainability Committee
Organizational Structure of ESG Sustainability Committee Board of Directors Chair (Ken) Sustainability Secretariat(Henry, Irene, Jean) Corporate Environmental Customers’ Social Innovation and Governance Sustainability Rights and Inclusiveness Development Team Team Interests Team Team Team Jean Andy
Slide 34: Message from the Chair of the ESG Sustainability Committee
Message from the Chair of the ESG Sustainability Committee The world was still shrouded in the haze of COVID-19 2021, and continues to be subject to its social and economic impact. The substantial disasters and transition risks amid extreme climates make us more aware of the impact of climate change
Slide 35: Sustainability Policies
Sustainability Policies Pursue corporate sustainability and attach importance to the management of environment, society and corporate governance. Strictly comply with the principle of good faith, reject improper interests, corruption, bribery and other acts. Follow regulatory commitments and i
Slide 36: Long-Term Goal of Carbon Reduction
Long-Term Goal of Carbon Reduction 2060 Carbon neutrality 2030 Carbon density 2022 reduced by 50% Official carbon reached announcement peak 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 36
Slide 37: Carbon reduction strategies and short- and medium-term goals
Carbon reduction strategies and short- and medium-term goals Reduce energy consumption and Planned solar power Use of renewable greenhouse gas generation area: HS energy: HS has emission intensity:2020 plans to generate about purchased 10 million is the baseline, and 8,000KW of solar power KW of gre
Slide 38: Linking High-level compensation to ESG performance
Linking High-level compensation to ESG performance The composition of director and senior executive compensation in 2022: 50% 25% Financial ESG Performance of 25% Performance of the Qualitative Criteria the Group Group ESG Policies • Greenhouse gas • Promote work • Risk Assessment emission intensity
Slide 39: ESG Award Recognition
ESG Award Recognition Dynamic won the Dynamic is awarded Dynamic is awarded Dynamic is awarded Dynamic Huangshi top 5% of corporate of Harmonious Water-saving Intelligent Plant is announced governance Labor Relations advanced enterprise transformation as National Green evaluation for 5 Enterprise of
Slide 40: Thank You!
Thank You! 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved. 2022 © Dynamic Electronics Co., Ltd. All Rights Reserved.