Iteq Corporation · TWSE:6213

Iteq — Q1 2022 Earnings Presentation

23 slides from Iteq's earnings presentation, June 2022

  1. Slide 1: ITEQ Corporation 2022 First Quarter Earnings Result

    ITEQ Corporation 2022 First Quarter Earnings Result ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY June 2022

  2. 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

  3. Slide 3: Company Overview

    Company Overview Establishment Headquarters Capital April 10th, 1997 HsinChu, Taiwan NT$3,830 million Employees Chairman CEO ~4,000 Dennis Chen Audrey Tsai Main Products Copper Clad Laminate (CCL) & Prepreg (PP) | Masslam service | Flexible CCL Revenue (NT$ billion) Revenue by Application (FY21) Aut

  4. 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

  5. Slide 5: 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% 8,930 8,168 8,030 8,269 7,472 7,397 6,379 6,153 6,220 6,112 5,694 5,697 5,862 5,965 5,618 5,149 5,294 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4

  6. Slide 6: Growth Strategy Blueprint

    Growth Strategy Blueprint ITEQ WORK + ALITY

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: 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,

  10. Slide 10: Market Trend & Growth Drivers

    Market Trend & Growth Drivers

  11. Slide 11: Datacenter Server Platform Upgrade

    Datacenter Server Platform Upgrade Platform Purley Whitley Eagle Stream CPU Skylake Cascade Lake Copper Lake Ice lake Sapphire Rapids Emerald Rapids Nano Process 14 nm 14 nm+ 14 nm++ 10 nm Intel 7 Intel 7 Intel PCIe Generation PCIe 3.0 PCIe 3.0 PCIe 3.0 PCIe 4.0 PCIe 5.0 PCIe 5.0 MP Time 2017 Q3 201

  12. Slide 12: 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

  13. Slide 13: 1Q22 Financial Results

    1Q22 Financial Results ITEQ EXCEL

  14. Slide 14: 1Q22 Income Statement

    1Q22 Income Statement NTD $Million 1Q22 4Q21 1Q21 QoQ YoY Revenue 8,269 8,030 7,397 3% 12% Gross Profit 1,249 1,246 1,370 0% -9% Operating Expense 605 543 503 11% 20% Operating Profit 644 703 867 -8% -26% Non-Op Income / Loss 332 49 (24) 574% -1484% Income before Tax 976 752 843 30% 16% Tax Expense

  15. Slide 15: 1Q22 Balance Sheet

    1Q22 Balance Sheet NTD $Million 1Q22 4Q21 1Q21 Total Assets 35,614 36,237 29,350 Cash 3,711 4,423 3,511 Marketable Securities 5 5 6 NR / AR 14,377 13,260 11,115 Inventories 4,822 5,167 3,888 Fixed Assets 10,122 11,078 8,712 Total Liabilities 14,830 14,922 15,378 Short-term Debt 2,494 2,131 1,708 NP

  16. Slide 16: 1Q19~1Q22 Product Mix

    1Q19~1Q22 Product Mix Consumer Electronics Networking Smartphone Automotive 5% 11% 10% 10% 11% 11% 11% 13% 12% 11% 10% 12% 14% 7% 9% 9% 10% 10% 8% 8% 9% 10% 9% 8% 9% 8% 48% 52% 63% 50% 45% 48% 56% 55% 58% 52% 56% 56% 57% 32% 29% 31% 33% 31% 24% 24% 23% 25% 27% 25% 24% 21% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q

  17. Slide 17: 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

  18. Slide 18: Thank you

    Thank you Question and Comment

  19. Slide 19: Appendix

    Appendix ITEQ

  20. Slide 20: CCL & PP Composite Structure

    CCL & PP Composite Structure CCL Manufacturing Process CCL/PP Glass Mixture Fiber Resin Accelerator Hardener CCL Copper CCL PP Foil 20

  21. Slide 21: 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 21

  22. Slide 22: 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

  23. Slide 23: 2015-2021 Mix Shifted Driven by Innovation

    2015-2021 Mix Shifted Driven by Innovation Revenue (NTD $Mn) Consumer Electronics Networking Smartphone Automotive Revenue 35,000 $32,525 11% 30,000 $25,422 9% 25,000 $23,791 $22,402 10% $21,214 10% 8% $19,682 10% 20,000 $19,077 11% 10% 10% 10% 8% 10% 53% 10% 10% 15,000 37% 54% 28% 32% 30% 53% 10,00

ITEQ — Q1 2022 Earnings Presentation on 6ix