Iteq Corporation · TWSE:6213

Iteq — Q1 2025 Earnings Presentation

27 slides from Iteq's earnings presentation, May 2025

  1. Slide 1: ITEQ Corporation 2025 First Quarter Investor Presentation

    ITEQ Corporation 2025 First Quarter Investor Presentation ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY May 2025

  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$3,630 million Employees Chairman CEO ~4,000 Dennis Chen Audrey Tsai Main Products Copper Clad Laminate (CCL) & Prepreg (PP) | Masslam service | Flexible CCL Revenue (NT$ billion) Revenue by Application (FY24) Aut

  4. 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

  5. Slide 5: Growth Strategy Blueprint

    Growth Strategy Blueprint ITEQ

  6. 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

  7. 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

  8. 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% 5% 15% 15% 15% 14% 19,68

  9. 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

  10. 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,

  11. Slide 11: Market Trend & Growth Drivers

    Market Trend & Growth Drivers ITEQ

  12. 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

  13. 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

  14. 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

  15. Slide 15: 1Q25 Financial Results

    1Q25 Financial Results ITEQ

  16. Slide 16: 1Q25 Income Statement

    1Q25 Income Statement NTD $Million 1Q25 4Q24 1Q24 QoQ YoY Revenue 7,580 7,664 6,155 -1.1% 23.2% Gross Profit 1,080 1,022 784 5.6% 37.7% Operating Expense 558 636 538 -12.3% 3.8% Operating Profit 521 386 246 35.0% 111.6% Non-Op Income / Loss 13 (83) 25 Income before Tax 535 303 271 76.3% 97.0% Tax Ex

  17. Slide 17: 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% 14.24% 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 7,580 6,863 6,645 6,744 6,220 6,112 6,352 6,260 6,

  18. Slide 18: Product Mix

    Product Mix Consumer Electronics Infrastructure Smartphone Automotive 14% 14% 1Q25 17% 17% 18% 18% 18% 18% QoQ YoY 20% 20% 20% 21% 20% Product Growth 8% 8% 6% 7% 5% 6% 5% 4% 5% 6% 6% 5% 5% Automotive -11.0% +10.8% Smartphone +23.6% +23.2% 57% 58% 58% 59% 58% Infrastructure +2.0% +31.1% 59% 60% 62% 6

  19. Slide 19: 1Q25 Balance Sheet

    1Q25 Balance Sheet NTD $Million 1Q25 4Q24 1Q24 Total Assets 36,256 34,844 34,180 Cash 4,791 4,583 5,418 NR / AR 12,561 12,790 11,903 Inventories 4,047 3,763 3,075 Fixed Assets 9,952 9,649 8,499 Total Liabilities 15,588 14,198 14,302 Short-term Debt 4,003 3,983 3,132 AP 6,995 6,286 5,300 Long-term De

  20. Slide 20: 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

  21. Slide 21: Thank you

    Thank you Question and Comment

  22. Slide 22: Appendix

    Appendix ITEQ

  23. Slide 23: 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 IT988G/SE IT-8615G 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.

  24. Slide 24: 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 24

  25. Slide 25: CCL & PP Composite Structure

    CCL & PP Composite Structure CCL/PP CCL Manufacturing Process Glass Mixture Fiber Resin Accelerator Hardener CCL Copper CCL PP Foil 25

  26. Slide 26: 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

  27. 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

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