Slide 1: Elite Material Co., Ltd.
1 Elite Material Co., Ltd. Global leader of high end eco-friendly laminates Presentation March, 2023
Slide 2: Disclaimer
2 Disclaimer This presentation may contain “forward-looking statements” which may include projections on future results of operations, financial condition, and business prospects based on our own information and other sources. The actual results of operations, financial condition, and business prosp
Slide 3: World #1 HF material supplier in 2021
3 World #1 HF material supplier in 2021 Global Green Laminate Market 5 Page 3 Page 3 EMC Confidential 3
Slide 4: Trend of 5G infrastructure development: HF, HDI, High Speed, High Frequency
4 Trend of 5G infrastructure development: HF, HDI, High Speed, High Frequency Halogen Free HDI High Speed AAU AiP MIMO RRU BBU Phone-5G High Frequency mmWave Phone-4G ADAS Phone-3G 77GHz AI Server Switch-800G 26.56 GHz Server- PCIe5 NB- USB4.0 Switch-400G Infotainment 16GHz 14GHz E-Mobility NB- USB3
Slide 5: High-end CCL (HDI & High-speed/frequency)
5 High-end CCL(HDI & High-speed/ frequency) • High-end CCL market grows at 16% CAGR (2022-2025) • Overall CCL market grows at 5% CAGR (2022-2025) • EMC expects to outgrow high end CCL market Overall CCL Market High-end CCL Market Source: Goldman Sachs Global Investment Research, Oct 2022 5 Page 5
Slide 6: High-speed CCL – JP/TW with 75% Share
6 High-speed CCL – JP/TW with 75% Share High speed CCL 2017 market share High speed CCL 2021 market share Source: Goldman Sachs Global Investment Research, Oct 2022 6 Page 6
Slide 7: EMC Momentum in High speed CCL – from Nothing to 16% Global Share in 4 years
7 EMC Momentum in High speed CCL – from Nothing to 16% Global Share in 4 years Source: Goldman Sachs Global Investment Research, Oct 2022 Page 7 Page 7
Slide 8: Global server shipment expected to have steadily growth in the coming five years
8 Global server shipment expected to have steadily growth in the coming five years For PCIe 5, EMC leverages market trend, and launches competitive products to achieve mass adoption by cloud companies. EMC occupies at least 30% market share of Eagle Stream platform and expects to have double digit g
Slide 9: The switch market will continue its high growth in the coming years
9 The switch market will continue its high growth in the coming years The product migration cycle is speeding up due to high data transmission requirement of datacenter companies. EMC occupies at least 30% market share of 400G, as opposed to 10% in 100G, thanks to better halogen-free characteristics
Slide 10: The strong 5G smartphone shipment
10 The strong 5G smartphone shipment EMC takes the majority share in the 5G smart phone，CAGR is 22% from 2022-2024 Unit: Million Source：Goldman Sachs Global Investment Research, Oct 2022 Page 10
Slide 11: CCL Production in the USA
11 CCL Production in the USA EMC is the only CCL manufacturer, among all Taiwanese & Chinese makers, having production capacity in the US. To mitigate geopolitical risks, EMC is committed to better serve its customers by providing stabilized high-end materials in the local market with timely service
Slide 12: Manufacturing Locations and Capacity Expansion
12 Manufacturing Locations and Capacity Expansion EMC monthly laminate capacity will reach 4.6mn sheets/mon in 3Q,2023 EMC (KS) Kunshan CCL: 1.35kk sheets PP: 3.3kk meters Manpower: 1,200+ +300K SHT/M in 1Q, 2023 +450K SHT/M in 3Q,2023 EMC (HS) EMC (TW) Huangshi Taoyuan CCL: 900k sheets CCL: 500k sh
Slide 13: Global Footprint- pan US, pan EU & pan Asia sales distribution network
13 Global Footprint- pan US, pan EU & pan Asia sales distribution network Japan UK Kunshan, China MN MN Germany MN Huangshi, China OH Korea SJ & SA, CA Zhongshan, China RC, CA France CA Taiwan, HQ Production facility Distributor Representative office Page 13
Slide 14: The Corporate Social Responsibility Report
14 The Corporate Social Responsibility Report Page 14 14
Slide 15: Steadily Sales Growth
15 Steadily Sales Growth NTD：Billion 40.0 35.0 2002：1.9Bn2022：38.7 Bn 2002 ~ 2022, CAGR=16.2% 30.0 25.0 20.0 15.0 10.0 5.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue Page 15 Page 15
Slide 16: Sustainable Operation Performance
16 Sustainable Operation Performance Page 16
Slide 17: History of Cash dividend and Payout ratio
17 History of Cash dividend and Payout ratio Page 17
Slide 18: 4Q22 P&L summary
18 4Q22 P&L summary Unit: NT$ million 4Q22 3Q22 QoQ 4Q21 YoY Revenue 8,888 9,883 -10.1% 10,162 -12.5% Gross profit 2,387 2,549 -6.4% 2,758 -13.5% Operating profit 1,523 1,598 -4.7% 1,843 -17.4% Income before tax 1,549 1,630 -5.0% 1,825 -15.1% Tax expenses (190) (322) 41.0% (333) 42.9% Net income 1,3
Slide 19: 4Q22 Abstracted Balance Sheet
19 4Q22 Abstracted Balance Sheet Unit:NT$ million 4Q22 3Q22 4Q21 Amount % Amount % Amount % Cash & Equivalent 10,444 24.1% 7,526 18.1% 6,642 18.2% A/R+N/R 11,683 26.9% 13,309 31.9% 13,274 36.3% Inv 4,236 9.8% 4,710 11.3% 5,465 14.9% PPE 14,680 33.8% 13,742 33.0% 8,469 23.2% Total Assets 43,382 100.0
Slide 20: Q & A
20 Q&A Page 20