Slide 1: ITEQ Corporation 2023 Third Quarter Investor Presentation
ITEQ Corporation 2023 Third Quarter Investor Presentation ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY December 2023
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 (FY22) 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 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 Revenue Consumer Electronics Infrastructure Gross Margin Operating Margin (NTD $Million) Smartphone Automotive 25% 35,000 32,525 11% 29,130 20% 30,000 19% 20% 18% 25,422 9% 16% 25,000 23,791 22,402 10% 7% 21,214 10% 15% 15% 15% 8% 15% 19,077 19,682 10% 18,335 14
Slide 8: 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 (%) 600 3% 5,000 20% 4,500 500 4,000 15% 3,500 400 2% 3,000 300 2,500 10% 2,000 200 1% 1,500 5% 1,000 100 500 0 0% 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 9M23 2015
Slide 9: Market Share Leader in Specialty Laminate
Market Share Leader in Specialty Laminate 2022 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
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: 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
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 PCIe 5.0 MP Time 20
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 (smaller form factor) and hybrid HDI/Substrate-Like PCB production. Cover film Dielectri
Slide 17: 3Q23 Financial Results
3Q23 Financial Results ITEQ EXCEL
Slide 18: 3Q23 Income Statement
3Q23 Income Statement NTD $Million 3Q23 2Q23 3Q22 QoQ YoY Revenue 6,645 5,430 6,352 22.4% 4.6% Gross Profit 901 581 731 55.1% 23.3% Operating Expense 511 523 382 -2.3% 33.8% Operating Profit 390 58 349 572.4% 11.7% Non-Op Income / Loss (4) 23 13 -56.0% -868.4% Income before Tax 386 81 362 376.5% 6.6
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% 15.52% 15.10% 14.92% 13.56% 12.24% 11.51% 10.70% 10.70% 8,930 8,168 8,030 8,269 7,472 7,397 7,646 6,863 6,645 6,379 6,153 6,220 6,112 6,352 6,260 5,965 5,618 5,430 5,294 1Q19 2Q19
Slide 20: Product Mix
Product Mix Consumer Electronics Infrastructure Smartphone Automotive 12% 11% 10% 12% 3Q23 14% 14% 17% 17% 18% 20% 20% Product QoQ YoY 9% 10% 9% 8% Growth % 8% 8% 6% 7% 5% 6% 6% Automotive +22.4% +23.1% 48% Smartphone +22.4% -10.3% 52% 56% 56% 57% 58% 59% 58% 58% 59% 60% Infrastructure +24.4% +8.2%
Slide 21: 3Q23 Balance Sheet
3Q23 Balance Sheet NTD $Million 3Q23 2Q23 3Q22 Total Assets 33,881 30,905 32,523 Cash 6,030 4,692 4,310 NR / AR 11,470 10,365 12,315 Inventories 2,834 2,422 2,579 Fixed Assets 11,387 11,049 11,166 Total Liabilities 14,126 12,189 12,525 Short-term Debt 2,554 1,544 3,521 NP / AP 6,332 4,590 3,954 Long
Slide 22: 2016 – 2022 Dividend Policy
2016 – 2022 Dividend Policy Cash Year EPS(NT$) Dividend(NT$) Pay-out Ratio(%) Dividend(NT$) 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% 2022 4.94 3.0 3.0 61% *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 IT999G IT-999GSE IT-8300GA IT998G IT-998GSE IT-8350G IT-8615G IT988G/SE Ultra Tier 5 IT988GL/SE Low Loss Df 0.005~0.0015 IT968GSE Very Tier 4 Low Loss Df 0.006~0.005 IT968, IT968G Tier 3 Low Loss IT958G,
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