Slide 1: ITEQ Corporation 2024 Fourth Quarter and Full Year Investor Presentation
ITEQ Corporation 2024 Fourth Quarter and Full Year Investor Presentation ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY Mar 2025
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 (FY24) Aut
Slide 4: Key Technology Applications
Key Technology Applications Infrastructure Controlled Dk FR-4 Consumer Datacenter and Low Df Halogen Free Electronics Material Science Cloud Computing AI/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
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 AI Applications CCL automotive players supplier for 5G base Dominant CCL supplier station for Intel Purley server platform Enhanced ultra-thin Biz kick-of
Slide 7: R&D and Capex to Pursue Sustainable Growth
R&D and Capex to Pursuit Sustainable Growth R&D expense (NTD $Million) R&D expense/Revenue (%) CAPEX (NTD $Million) CAPEX/Revenue (%) 700 3% 5,000 20% 4,500 600 4,000 15% 500 3,500 2% 3,000 400 2,500 10% 300 2,000 1% 200 1,500 5% 1,000 100 500 0 0% 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2
Slide 8: Optimized Mix with Product Innovation
Optimized Mix with Product Innovation Revenue Consumer Electronics Infrastructure Gross Margin Operating Margin (NTD $Million) Smartphone Automotive 25% 35,000 32,525 11% 29,130 29,378 20% 30,000 19% 20% 18% 25,422 9% 16% 25,079 20% 25,000 23,791 22,402 10% 7% 21,214 10% 19% 15% 15% 15% 8% 5% 15% 19
Slide 9: Market Share Leader in Specialty Laminate
Market Share Leader in Specialty Laminate 2023 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 network infrastructure and data centers upgrading oppor
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 ITEQ
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 - AI & High-Performance Computing & Big Data Analysis - Edge computing (Enterprise enhanced infrastructure, such as data center
Slide 13: 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 PCIe 5.0 MP Time 20
Slide 14: 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 15: 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 (smaller form factor) and hybrid HDI/Substrate-Like PCB production. Cover film Dielectri
Slide 16: 4Q24 & 2024 Financial Results
4Q24 & 2024 Financial Results ITEQ
Slide 17: 4Q24 & FY2024 Income Statement
4Q24 & FY2024 Income Statement NTD $Million 4Q24 3Q24 4Q23 QoQ YoY 2024 2023 YoY Revenue 7,664 7,963 6,744 -3.8% 13.6% 29,378 25,079 17.1% Gross Profit 1,022 934 954 9.4% 7.2% 3,690 3,106 18.8% Operating Expense 636 554 536 14.8% 18.8% 2,339 2,111 10.8% Operating Profit 386 380 418 1.6% -7.7% 1,351
Slide 18: Revenue & Gross Margin Rate
Revenue & Gross Margin Rate (Million $NTD) 20.96% 19.89% 19.46% 18.84% 18.86% 18.86% 18.52% 15.52% 15.10% 14.92% 14.15% 13.56% 13.34% 12.74% 12.50% 12.24% 11.51% 11.73% 10.70% 10.70% 8,930 8,168 8,030 8,269 7,963 7,472 7,397 7,646 7,596 7,664 6,863 6,645 6,744 6,220 6,112 6,352 6,260 6,155 5,618 5,4
Slide 19: Product Mix
Product Mix Consumer Electronics Infrastructure Smartphone Automotive 14% 14% 4Q24 17% 17% 18% 20% 20% 18% 20% 21% 18% 20% QoQ YoY Product Growth 8% 8% 6% 7% 5% 6% 5% 4% 6% 6% 5% 5% Automotive +6.9% +26.3% Smartphone -23.0% -24.2% 57% 58% 58% 59% 58% Infrastructure -5.2% +17.3% 59% 60% 62% 62% 65% 6
Slide 20: 4Q24 Balance Sheet
4Q24 Balance Sheet NTD $Million 4Q24 3Q24 4Q23 Total Assets 34,844 36,408 33,380 Cash 4,583 5,273 5,594 NR / AR 12,790 12,909 11,498 Inventories 3,763 4,308 3,014 Fixed Assets 9,649 9,271 7,776 Total Liabilities 14,198 15,983 13,940 Short-term Debt 3,983 4,545 2,921 AP 6,286 7,392 5,991 Long-term De
Slide 21: Dividend Policy
Dividend Policy Cash Year EPS(NT$) Dividend(NT$) Pay-out Ratio(%) Dividend(NT$) 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% 2022 4.94 3.0 3.0 61% 2023 1.86 1.5 1.5 81% 2024 2.26 1.8 1.8 80% *New shares issuance of 30 million common shares concluded on Marc
Slide 22: Thank you
Thank you Question and Comment
Slide 23: Appendix
Appendix ITEQ
Slide 24: Well-Expanded Product Line
Well-Expanded Product Line RF Application Super Ultra M8 IT-88GMW Low Loss Df 0.0015~0.0010 IT-999GSE IT-8300GA IT-998GSE IT-8350G IT-8615G IT988G/SE Ultra M7 IT988GL/SE Low Loss Df 0.005~0.0015 IT968GSE Very M6 Low Loss Df 0.006~0.005 IT968, IT968G M4 Low Loss IT958G, IT170GRA2, IT150DA Df 0.009~0.
Slide 25: 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 25
Slide 26: CCL & PP Composite Structure
CCL & PP Composite Structure CCL Manufacturing Process CCL/PP Glass Mixture Fiber Resin Accelerator Hardener CCL Copper CCL PP Foil 26
Slide 27: AI Server Robust Demand to Drive CCL Content Growth
AI Server Robust Demand to Drive CCL Content Growth AI Server CPU*2 Mainboard AI Server GPU OAM*8 AI Server GPU UBB (Content Value – mid) (Content Value – high) (Content Value – high) CPU MB GPU Tray CCL: Very Low Loss CCL: Very Low Loss CCL: Ultra Low Loss / VLL Layer Count: 14 to 24 Layer count: 2