Slide 1: ITEQ Corporation 2022 Third Quarter Investor Presentation
ITEQ Corporation 2022 Third Quarter Investor Presentation ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY December 2022
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 (FY21) Aut
Slide 4: Key Technology Applications
Key Technology Applications Networking 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 WORK + ALITY
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 Consumer Electronics Networking Gross Margin Operating Margin Revenue (NTD $Million) Smartphone Automotive 25% 35,000 32,525 20% 30,000 11% 19% 20% 18% 25,422 9% 25,000 23,791 22,402 10% 22,267 15% 15% 21,214 10% 15% 8% 15% 19,077 19,682 10% 10% 15% 12% 13% 20,0
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 2% 5,000 20% 4,500 500 4,000 15% 3,500 400 3,000 300 1% 2,500 10% 2,000 200 1,500 5% 1,000 100 500 0 0% 0 0% 2015 2016 2017 2018 2019 2020 2021 9M22 2015 2016 201
Slide 9: Market Share Leader in Specialty Laminate
Market Share Leader in Specialty Laminate 2021 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 5G network and data center opportunities • Rising EV ma
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
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: Diversified High-Speed Materials for HPC/Datacenter
Diversified High-Speed Materials for HPC/Datacenter High Speed Application Next 0.001 IT-999G - 800G Ethernet Super Ultra Low-loss IT-998SE : Low-Dk glass - 112Gbps IT-998G IT-998 / IT-998SE IT-998 : Low-Dk 2 glass 0.002 - PCIe 5.0 IT-988GSE 0.003 Ultra Low-loss 2 Intel EGS / BHS - 200G Ethernet (wi
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 TBA MP Time 2017 Q3
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 and hybrid HDI/Substrate-Like PCB production. Cover film Dielectric Layer：10~50um Buildu
Slide 17: 3Q22 Financial Results
3Q22 Financial Results ITEQ EXCEL
Slide 18: 3Q22 Income Statement
3Q22 Income Statement NTD $Million 3Q22 2Q22 3Q21 QoQ YoY Revenue 6,352 7,646 8,930 -16.9% -28.9% Gross Profit 731 936 1,738 -21.9% -57.9% Operating Expense 382 486 631 -21.4% -39.5% Operating Profit 349 450 1,107 -22.4% -68.5% Non-Op Income / Loss 13 146 (11) -56.0% -868.4% Income before Tax 362 59
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% 15.82% 15.52% 15.10% 14.50% 13.71% 14.01% 12.24% 11.51% 8,930 8,168 8,030 8,269 7,472 7,397 7,646 6,379 6,153 6,220 6,112 6,352 5,694 5,697 5,862 5,965 5,618 5,149 5,294 1Q18 2Q18
Slide 20: 1Q20~3Q22 Product Mix
1Q20~3Q22 Product Mix Consumer Electronics Networking Smartphone Automotive 5% 3Q22 11% 11% 13% 12% 11% 10% 12% 14% 14% 7% 17% Product QoQ YoY 8% 8% 9% 10% 9% 8% Growth % 9% 8% 8% 7% Automotive +0.9% +20.9% 63% 50% 45% 48% Smartphone -27.3% -44.7% 58% 52% 56% 56% 57% 58% 58% Networking -16.9% -26.3%
Slide 21: 3Q22 Balance Sheet
3Q22 Balance Sheet NTD $Million 3Q22 2Q22 3Q21 Total Assets 32,523 34,043 36,035 Cash 4,310 3,873 4,035 Marketable Securities 5 4 5 NR / AR 12,315 13,799 14,100 Inventories 2,579 3,872 5,194 Fixed Assets 11,166 10,276 10,117 Total Liabilities 12,525 13,092 15,681 Short-term Debt 3,521 2,051 1,434 NP
Slide 22: 2015 – 2021 Dividend Policy
2015 – 2021 Dividend Policy Cash Year EPS(NT$) Dividend(NT$) Pay-out Ratio(%) Dividend(NT$) 2015 1.92 1.6 1.6 83% 2016 3.13 2.5 2.5 80% 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% *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 Tier 6 IT-88GMW Low Loss Df 0.0015~0.0010 IT-8300GA IT-998G IT-8350G IT-8338G Ultra Tier 5 IT988G/SE Low Loss Df 0.005~0.0015 IT968 SE Very Tier 4 Low Loss Df 0.006~0.005 IT968, IT968G Tier 3 Low Loss IT958G, IT170GRA2 Df 0.009~0.006 Lower Tier 2
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