Eternal Materials Co., Ltd. · TWSE:1717
Eternal Materials — Investor conference hosted by President Securities Corp. 2019
38 slides from Eternal Materials's conference presentation, Nov 18, 2019
Slide 1: Eternal Materials
ETERNAL MATERIALS
Slide 2: PCB Applications and Opportunities for 5G
PCB Applications and Opportunities for 5G Photoresist Materials Business Division Speaker：Director-General , Chaocheng Hung 2019/11/18 Eternal Materials 2
Slide 3: Outline
Outline Profile Overview、Development Milestones、Core Technology 、Business Group 、Global Production Sites、Global Service Network、 R&D Sites 、Annual Sales Distribution 、R&D Honor Financial Information Introduction of the Photoresist Materials Business Division PCB Applications and Opportunities for 5G
Slide 4: Profile - Overview
Profile - Overview •Core Business： Manufacturing, processing and sales •Founding： in 1964, Headquarters in Kaohsiung, Taiwan •Year of Listed on Taiwan Stock Exchange：1994 •Chairman： Allen K. L. Kao •Number of Employees： 4,747 1 •Number of Production Sites：24 (3 in Taiwan, 14 in Mainland China, 1 in
Slide 5: Profile-Development Milestones
Profile-Development Milestones 1964 1985 1989 2000 2004 2008 2016+ Eternal Materials 5
Slide 6: Profile-Core Technology
Profile-Core Technology Resin New Materials Functional PCB Resin Synthesis Core Technology Quality Precision LCD Chemical UV Processing Formulation IC Eternal Materials 6
Slide 7: Profile-Business Group
Profile-Business Group Resins Materials Electronic Materials • Copper Clad Laminates Division • Photoresist Material Business Division • Synthetic Resins Business Division • Unsaturated Polyester Resins Division High Performance Materials • Specialty Material Division Eternal Materials 7
Slide 8: Profile-Global Production Sites
Profile-Global Production Sites Northeast Global Production Sites :24 Japan(3) •Taiwan ： 3 China (1) •Ogaki •China ： 14 North • Yingkou •Kodama •Thailand ： 1 China (1) •USA ： 1 •Aichi • Tianjin •Japan ： 3 •Malaysia ： 1 •Italy ：1 Southwest Italy(1) China (2) • Chengdu • Milan USA (1) • Chongqing East
Slide 9: Profile-Global Service Network
Profile-Global Service Network Northeast Japan(3) Global Service Network : 35 China(1) ◆ Taiwan : 4 ◆ China : 19 • Yingkou • Yokohama (2) • Aichi(1) ◆ USA :1 ◆ Japan :3 ◆ Thailand : 2 ◆ Korea :1 North ◆ Indonesia : 1 ◆ India :1 Korea(1) China(2) ◆ Vietnam : 1 ◆ Malaysia : 1 ◆ Italy ：1 • Tianijn Cent
Slide 10: Profile-R&D Sites
Profile-R&D Sites 1. Taiwan－－Research & Development Center 2. China－－ Mainland China R&D Center 3. China－－Beijing laboratory 4. The laboratory of plant (*8) Beijing Tianijn Suzhou Changshu Mainland Chain R&D Center Kunshan Chengdu Kaohsiung Research & Development Guangzhou Center Ta-Fa Plant Zhuhai
Slide 11: Profile-Annual Sales Distribution
Profile-Annual Sales Distribution(In the recent 5 years) Unit : USD million 1,600 1,436 Group 1,365 1,400 1,283 1,262 1,199 China 1,200 1,000 890 Other 780 845 751 738 800 Taiwan 600 189 357 370 394 400 315 200 172 150 154 146 152 0 2014 2015 2016 2017 2018 Eternal Materials 11
Slide 12: R&D Honor
R&D Honor 1990 Best performance manufacturer on new product R&D for Specialty Monomer products 1992 Best performance manufacturer on new product R&D for Dry Film products 1993 Outstanding Award for Industrial Technology Advancement granted by MOEA 1995 Excellent Award for Industrial Technology Advan
Slide 13: Financial Information: Balance Sheet & Main Financial Index
Financial Information Balance Sheet & Main Financial Index In Millions of New Taiwan Dollars 2019Q3 2018 2017 Items Amount % Amount % Amount % Cash and cash equivalents 6,787 12 6,085 11 7,984 14 Accounts receivable 15,488 29 14,783 27 14,977 27 Inventories 7,312 13 7,918 15 7,803 14 Financial asset
Slide 14: Financial Information: Statement of Comprehensive Income
Financial Information Statement of Comprehensive Income In Millions of New Taiwan Dollars 2019Q3 2018 2017 Items Amount % Amount % Amount % Operating revenues 30,192 100 43,300 100 41,551 100 Gross profit 5,750 19 7,280 17 7,438 18 Operating expenses (4,020) (13) (5,467) (13) (5,576) (14) Profit fro
Slide 15: Financial Information - Cash Flow Statements
Financial Information - Cash Flow Statements In Millions of New Taiwan Dollars 2019Q3 2018 2017 Cash and cash equivalents at the beginning of the year 6,085 7,984 8,227 Cash flows from operating activities 4,125 2,883 (468) Acquisition of property, plant and equipment (1,661) (2,479) (3,003) Increas
Slide 16: Introduction of the Photoresist Materials Business Division
Introduction of the Photoresist Materials Business Division Eternal Materials 16
Slide 17: PM Division-Product Category
PM Division-Product Category Vacuum Laminator Photo-Imageable Coverlay (PIC) Eternal Materials 17
Slide 18: PM Division-One-Stop Service
PM Division-One-Stop Service 22±2℃, <60%RH ② 5±3℃ ③ -20±2℃ Eternal Materials 18
Slide 19: PM Division-Global Coating Capacity
PM Division-Global Coating Capacity 1 Italy 1 Japan2 USA SZI1+1 GZI5 3 SZII+2 GZII TW Center10 Eternal Materials 19
Slide 20: Eternal Materials
ETERNAL MATERIALS Eternal Materials
Slide 21: PM Division-Dry Film Market Share
PM Division-Dry Film Market Share Global Dry Film Market Size Update (2016~2020) Global DRF Market Size ( 2016 ~ 2020 ) Ten Thousand KSF 2016 2017 2018 2019(F) 2020(F) Eternal’s Dry Film Market Share 34% Others 66% Source: Analysis and update by Eternal Market Report Eternal Materials 21
Slide 22: PM Division-Dry Film Market Share
PM Division-Dry Film Market Share Statistical period: 2019Y Jan~Aug Eternal Materials 22
Slide 23: PM Division-Global Layout
PM Division-Global Layout (Yokohama) Eternal Materials 23
Slide 24: PM Division-Coating Sites
PM Division-Coating Sites Eternal Materials 24
Slide 25: PM Division-Coating Sites
PM Division-Coating Sites Copper Foil Aluminum Foil Eternal Materials 25
Slide 26: PM Division-Slitting Site/Sales Office
PM Division-Slitting Site/Sales Office Northern East China Eastern China Yingkou (Slitting:1 / Sales:1) Suzhou (Slitting:1 / Sales:1) Southern West China China Southern China Slitting:5 Sales:4 Fuling (Slitting:1 / Sales:1) Guangzhou (Slitting:2 / Sales:1) Eternal Materials 26
Slide 27: PM Division-Slitting Site/Sales Office
PM Division-Slitting Site/Sales Office USA : 2 Japan : 2 Japan Italy : 2 Korea : 1 Thailand : 2 Taiwan : 3 Italy Ogaki Yokohama (Slitting:1) (Sales:1) Taiwan USA Milan (Slitting:1 / Sales:1) Korea Ta-Fa Plant Virginia Thailand (Slitting:1 / Sales:1) (Slitting:1 / Sales:1) Gyeonggi-do (Sales:1) Bangk
Slide 28: PM Division-Related Certificates
PM Division-Related Certificates Eternal Materials 28
Slide 29: PCB Applications and Opportunities for 5G
PCB Applications and Opportunities for 5G Eternal Materials 29
Slide 30: What is 5G
What is 5G On June 22, 2015, the International Telecommunication Union (ITU) announced that IMT-2020 (International Mobile Telecommunication-2020) will be the technical standard for the future 5G. The development forecast is as follows: Enhanced Mobile Broadband: Mobile broadband rate 10 Gbps (LTE 1
Slide 31: 5G market and application
5G market and application Early stage Infrastructure Mobile terminal User terminal Equipment 5G Application Macrocell Small Cell SmartPhones Router/Switch Network Equipment Application Equipment Antenna、 High Speed Multilayer PCB、High Upper/Lower Antenna、RF Antenna、Communication high- Critical modul
Slide 32: 5G Base Station PCB market analysis
5G Base Station PCB market analysis Gobal 5G Cell Site PCB forecast The 5G base station is about 4 to 5 times more than the 4G base station . Each Cell Site has about 6 to 10 high-speed multilayer PCB. In 2019, there were about 500,000 5G base station in the world, and in 2020, it has increased to m
Slide 33: 5G Smart phones market analysis
5G Smart phones market analysis Source:Compiled by JMS using Gartner’s data In 2019, global smart phone shipments were estimated at 1.9 billion, of which 5G smart phones were only about 5 million, accounting for only 0.26%. It is estimated that the shipment of 5G smart phones will reach 700 million
Slide 34: 5G FPC market analysis
5G FPC market analysis The main impact of 5G on the FPC market is that smart phone antenna modules must be designed with high- frequency materials and require a large number of FPC. Source：(Estimated by JMS) The traditional FPC substrate is mainly based on PI, and the modified PI and LCP FPC are use
Slide 35: 5G IC Substrate market analysis
5G IC Substrate market analysis The demand for 5G Netcom, IOT, AI, and high-performance computing (HPC) has increased, driving the growth of servers and large-scale multi-layer high-end IC substrate, and the number of FCBGA IC substrate or line density of Netcom equipment is increasing under the tec
Slide 36: Opportunities of PM in 5G products
Opportunities of PM in 5G products The technical layout of PM in 5G products Market Market HDI PCB / Multilayer: Vacuum Laminator: Smart Phone SiP Tech. Note book Tech. Automotive Embed Substrate Surface Flatness after lamination HDI and MSAP FCBGA 3 Stage & Servo Press LDI DRF L/S<=30/30 um DRF for
Slide 37: Conclusion
Conclusion 1. Dry film photoresist is mainly used in the PCB industry. In addition to driving PCB basic materials, chemicals and process equipment, the future 5G applications will directly drive the overall number of PCBs. 2. The demand for 5G base stations will drive the overall demand for PCB hard
Slide 38: Q&A Thank you
Q&A Thank you Eternal Materials 38
Eternal Materials — Investor conference hosted by President Securities Corp. 2019 on 6ix