Iteq Corporation · TWSE:6213
Iteq — CLST Virtual Investor Conference 2020
20 slides from Iteq's conference presentation, April 2020
Slide 1: ITEQ Corporation 2019 Fourth Quarter Earnings Result
Your Partner of ITEQ Advanced Materials & Mass Lam Service ITEQ Corporation 2019 Fourth Quarter Earnings Result www.iteq.com.tw
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: April 10th, 1997 Innovation Excellence Headquarter: HsinChu, Taiwan Capital: NTD$3,030M ITEQ Employees: Over 3,000 Teamwork Quality Chairman: Dennis Chen CEO: Audrey Tsai CTO: Tarun Amla Main Product: Copper Clad Laminate & Prepreg Masslam service Flex
Slide 4: Core Technology
Core Technology Smartphone Tablet Low Dk Ultrathin Networking Material Datacenter Controlled Science FR-4 Dk and Resin Mixture Consumer Electronics Cloud Computing Low Df Halogen Process Free 5G Engineering High Reliability Automotive 4 www.iteq.com.tw
Slide 5: CCL & Prepreg Manufacturing Flow
CCL & Prepreg Manufacturing Flow Resin(s) Filler(s) Copper Mixing Foil (Compounding) Glass CCL Lamination Ply-up Cutting Prepreg Treating Fabric 5 www.iteq.com.tw
Slide 6: Well-Expanded Product Line
Well- Expanded Product Line RF Application Super Ultra Tier 6 IT-88GMW Low Loss Df~0.0015 IT-8300GA IT-998G IT-8350G Super Ultra Tier 5 IT988G/SE Low Loss Df~0.003 Ultra Tier 4 Low Loss Df~0.005~0.006 IT968, IT968G/SE Tier 3 Low Loss IT958G, IT170GRA2 Df~0.006~0.010 Lower Tier 2 IT170GRA1, IT170GT M
Slide 7: 1Q18~4Q19 Product Mix
1Q18~4Q19 Product Mix Consumer Electronics Networking Smartphone Automotive 10% 10% 10% 11% 11% 10% 10% 11% 10% 10% 10% 9% 9% 9% 10% 10% 34% 36% 38% 40% 48% 52% 56% 55% 46% 44% 42% 40% 32% 29% 24% 24% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 7 www.iteq.com.tw
Slide 8: Product Mix by Application
Product Mix by Application SALES SALES ( NT$ MILLION) ( NT$ MILLION) Networking Consumer electronics 4,000 2,500 3,572 3,500 3,384 2,060 2,000 3,000 1,531 1,477 2,500 1,500 2,060 2,000 1,500 1,000 1,000 500 500 - - 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 • Net sales of NTD15.3M, down 11.5% over • Net sales of
Slide 9: Product Mix by Application
Product Mix by Application SALES SALES ( NT$ MILLION) ( NT$ MILLION) Automotive Smartphone 800 700 638 615 700 677 638 600 600 566 500 463 500 400 400 300 300 200 200 100 100 - - 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 • Net sales of NTD15.3M, down 11.5% over • Net sales of NTD15.3M, down 11.5% over 2Q19, and
Slide 10: Revenue & Gross Margin Rate
Revenue & Gross Margin Rate (Million NTD) 21.29%20.98% 19.42% 18.36% 16.02% 15.75% 15.81% 15.06%14.75% 14.70% 14.50% 14.11% 13.92% 14.01% 13.73% 13.71% 13.21% 13.06% 11.29% 6,379 10.81% 6,153 5,862 5,965 5,5625,6775,6945,697 5,0215,161 5,027 5,1905,124 5,1495,294 4,818 4,851 4,550 4,646 4,345 1Q15 2
Slide 11: 4Q19 & FY19 Income Statement
4Q19&FY19 Income Statement NTD $Million 4Q19 3Q19 4Q18 QoQ YoY 2019 2018 YoY Revenue 6,153 6,379 5,149 -4% 20% 23,791 22,402 6% Gross Profit 1,291 1,358 721 -5% 79% 4,780 3,256 47% Operating Expense 442 421 391 5% 13% 1,676 1,471 14% Operating Profit 849 938 330 -9% 157% 3,104 1,784 74% Non-Op Incom
Slide 12: 4Q19 Balance Sheet
4Q19 Balance Sheet NTD $Million 4Q19 3Q19 4Q18 Total Assets 23,480 21,929 18,695 Cash 3,538 2,984 3,697 Marketable Securities 93 83 41 NR / AR 10,599 10,702 8,807 Inventories 2,664 2,110 1,591 Fixed Assets 4,594 4,152 3,050 Total Liabilities 14,555 13,476 10,703 Short-term Debt 3,765 4,242 3,648 NP
Slide 13: Market Trend & Growth Drivers
Market Trend & Growth Drivers 13 www.iteq.com.tw
Slide 14: Hunger for High Speed Transmission
Hunger for High Speed Transmission Rapid expansion of Global Fast growing Global IP traffic Datasphere - UHD video streaming and internet gaming - Core (traditional and cloud datacenters) - Connected home, work, health and car - Edge (enterprise-hardened infrastructure - Big data and AI applicat
Slide 15: 5G Network Infrastructure & Opportunities
5G Network Infrastructure & Opportunities Central Core (Telecom) + Transport Network: Cloud • Including data center, Edge computing, OTN Edge Cloud • High efficient computing and massive data traffic High Speed Material Distributed + Centralized Unit (DU+CU) • Including Macro Cell, Micro Cell to Sma
Slide 16: Sustainable Growth Momentum (Telecom)
Sustainable Growth Momentum (Telecom) Accelerating 5G Infrastructure Deployment - China 5G CAPEX rise: Expedite 5G infrastructure deployment amid COVID-19 epidemic impact - China telecom service providers to build over 4x more 5G Base Stations in 2020 vs. 2019 - Strong demand for upgrades on core
Slide 17: Sustainable Growth Momentum (Datacom)
Sustainable Growth Momentum (Datacom) Data center and server upgrade - Penetration rate of Intel Purley Platform (PCIe 3.0) to increase from 80% (2019) to 90% (2020) - AMD Rome (PCIe 4.0) kick off in 3Q19 while PCIe 5.0 released in June 2019 with 4x speed of current PCIe 3.0; material selection fo
Slide 18: New Production Site - JiangXi
New Production Site - JiangXi Wuxi Laminate：1,800 K sheets Prepreg ：8,500 K meters Europe Korea USA Hsin Pu(Taiwan) Wuxi Japan Israel Laminate：450 K sheets DG/HJ/GZ Prepreg ：1,800 K meters Taiwan Singapore Dong Guan Laminate：1,000 K sheets Prepreg ：4,500 K meters Manufacturing Plant Manufacturing Pl
Slide 19: 2012 – 2018 Dividend Payout
2012 – 2018 Dividend Payout Cash Pay-out Year EPS(NT$) Dividend(NT$) Dividend(NT$) Ratio(%) 2012 3.34 2.5 2.5 75% 2013 2.52 2.2 2.2 87% 2014 1.62 1.2 1.2 74% 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% *New shares issuance of 30 million common shares concl
Slide 20: Thank You
ITEQ INNOVATION + TEAMWORK + EXCELLENCE + QUALITY Thank You