Chang Wah Technology Co., Ltd. · TPEX:6548

Chang Wah Technology — Investor Presentation (September 2020)

24 slides from Chang Wah Technology's investor presentation, September 2020

1. Slide 1: Chang Wah Technology Co., Ltd.

   Chang Wah Technology Co., Ltd. (6548.TW) September, 2020 Confidential

2. Slide 2: Outline

   Outline： Ⅰ、CWTC Introduction – worldwide No. 2 lead frame manufacturer Ⅱ、Growth Momentum Ⅲ、QFN Market Ⅳ、Future Vision – worldwide No. 1 lead frame manufacturer Ⅴ、Q&A and Appendix 1

3. Slide 3: CWTC Introduction

   Ⅰ、CWTC Introduction 2

4. Slide 4: Plant Location

   Plant Location China SHEC，Chengdu, 1989 SHPC，Chengdu, 2008 SHS ，Suzhou, 2004 Taiwan Malaysia SHT，Kaohsiung, MSHE，Selangor, 1989 1994 3

5. Slide 5: Lead frame estimated market share in Y2019

   Lead frame estimated market share in Y2019 Jih Lin 8% Mitsui High ASM Pacific Tec 13% 19% SDI CWTC 13% 17% HaesungDS Shinko 14% 16% Y2019 MHT CWTC Shinko* HDS SDI ASMPT JLT Annual Revenue (USD M) 343 314 293 250 243 240 150 Operating Profit Ratio -3.8% 8.9% n/a 7.1% 6.6% 3.1% 5.9% *：Shinko did not d

6. Slide 6: CWTC Product Information

   CWTC Product Information  IC Lead frame SO, SOP, TSSOP, TSOP, COL, QFP, TQFP, LQFP, PDIP  IC Lead frame (lead less lead frame) QFN, MQFN, DR-QFN, aQFN  Discrete: Discrete transistor、SOT  EMC Lead frame LED, Pre-mold 5

7. Slide 7: Product Portfolio

   Product Portfolio 2019 H1 2020 H1 Pre-mold EMC L/F Pre-mold 9% EMC L/F 9% Discrete* IC Discrete* 51% 26% IC 32% 55% QFN QFN 8% 10% IC：SO、TSOP、QFP Discrete：SOT, small outline transistor *World wide No. 1 in SOT shipment with 40% ~ 45% market share 6

8. Slide 8: Application

   Application Others Others 8% 7% Industrial Industrial 20% 22% 3C 41% 2019 H1 2020 H1 3C 55% Automotive 18% Automotive 29% 7

9. Slide 9: Growth Momentum

   Ⅱ、Growth Momentum 8

10. Slide 10: Organic Growth

    Organic Growth  CWTC will invest USD 100 million in Kaohsiung for expansion  Building etching and plating line for QFN product  Continuous expansion in China and South East Asia Capacity 2020 2021 QFN capacity 18,000 32,000 (k strips) +70% 9

11. Slide 11: Continuous M&A Project in Future

    M&A project Advanced Machinery ! Kagoshima High End Technology and Know-How!  Material Benefit  Installation in Y2020 Q4  Qualification in Y2021 Q1 Kaohsiung  More flexibility in capacity arrangement Continuous M&A Project in Future 10

12. Slide 12: QFN Introduction

    Ⅲ、QFN Introduction 11

13. Slide 13: Semiconductor Market by Packages type

    Semiconductor Market by Packages type Million Source：ITRI(2019/Oct.) 12

14. Slide 14: Why QFN continues growing?

    Why QFN continues growing ? SOIC MQFP 3.93 mm CABGA SOT/SC MQFP LQFP 2.33 mm TSOP TSOP QFN 1.6 mm TQFP TSSOP 1.2 mm 0.9 mm 1.1 mm 0.8 mm 0.5 mm 0.3 mm chip design trend L/F develop trend chip shrink thinner and smaller The L/F developing stack die quick thermal dissipation trend just meet QFN integr

15. Slide 15: QFN Introduction

    QFN Introduction  QFN  QFN(Quad Flat No Leads Package) is a small size, lead-less package with low profile, good thermal dissipation and good electrical performance. Therefore, it’s widely applied to various handset device and personal laptop. QFN Package QFP Package TQFP 128 MQFN 128 40% reduce 1

16. Slide 16: QFN Sweet box

    QFN Sweet box BGA Package BGA aQFN DR-QFN (only supplier in the world) 500~100 balls 500~100 balls 256~100 leads QFP Package QFP DR-QFN QFN 256~32 leads 256~100 leads 180~32 leads  QFN can replace BGA and QFP in above I/O range  DR-QFN is CWTC major QFN product. We will acquire aQFN technology fro

17. Slide 17: Future Vision

    Ⅳ、Future Vision Worldwide No.1 L/F manufacturer 16

18. Slide 18: To be worldwide No.1 L/F manufacturer

    To be worldwide No.1 L/F manufacturer K Strips market share reach 40,000 market share 30% in QFN and 12.4% overall L/F 35,000 30,000 29,850 25,000 market share7.0% market 20,000 share 5.0% market 16,800 15,000 share 4.1% 11,941 10,000 9,847 5,000 - 2018 2019 2020 2021 2025 Notes 1：Y2018 estimated wo

19. Slide 19: One world; Two segments

    One world ； Two segments 18

20. Slide 20: Q & A and Appendix

    Ⅴ、Q & A and Appendix 19

21. Slide 21: Y2017 ~ Y2020 H1 Balance Sheet

    Y2017 ~ Y2020 H1 Balance Sheet 2017.12.31 2018.12.31 2019.12.31 2020.06.30 units：NTD in million (IFRSs) (IFRSs) (IFRSs) (IFRSs) Cash and short term investment 2,131 2,304 3,076 3,326 Account Receivable 1,816 1,925 2,002 1,965 Current Assets 5,350 5,791 6,502 7,338 Current Liability 2,150 2,758 2,964

22. Slide 22: Consolidate P&L – 2Q Y2020

    Consolidate P&L – 2Q Y2020 units： NTD in million Y2020 2Q Y2020 1Q QoQ Y2019 2Q YoY Revenue 2,438 2,154 13% 2,251 8% Gross Profit 423 359 18% 361 17% Operating Profit 227 177 28% 200 14% Non operating profit and expense 5 12 20 Profit before tax 232 189 23% 220 5% Tax expense 27 58 73 Profit attribu

23. Slide 23: Consolidate P&L – H1 Y2020

    Consolidate P&L – H1 Y2020 units： NTD in million Y2020 H1 Y2019 H1 YoY Revenue 4,592 4,407 4% Gross Profit 782 709 10% Operating Profit 404 375 8% Non operating profit and expense 17 30 Profit before tax 421 405 4% Tax expense 85 133 Profit attributable to owners of parent 328 272 21% EPS 0.93 0.76

24. Slide 24: Process portfolio

    Process portfolio 2019 H1 2020 H1 Etching Etching 33% 36% Stamping Stamping 67% 64% 23

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