Slide 1: ITEQ Corporation 2021 Third Quarter Earnings Result
ITEQ Corporation 2021 Third Quarter Earnings Result ITEQ INNOVATION. TEAMWORK. EXCELLENCE. QUALITY November 2021 1
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 ◆ Headquarters: HsinChu, Taiwan ◆ Capital: NTD$3,830M ◆ Employees: Over 3,000 ◆ Chairman: Dennis Chen ◆ CEO: Audrey Tsai ◆ Main Product: Copper Clad Laminate & Prepreg Flexible CCL Masslam service 3
Slide 4: CCL & PP Composite Structure
CCL & PP Composite Structure CCL Manufacturing Process CCL/PP Glass Mixture Fiber Resin Accelerator Hardener CCL Copper CCL PP Foil 4
Slide 5: CCL & PP Manufacturing Flow
CCL & PP Manufacturing Flow Resin(s) Filler(s) Copper Mixing Foil (Compounding) Glass CCL Lamination Ply-up Cutting Prepreg Treating Fabric 5
Slide 6: Product Roadmap
Product Roadmap Lead Free Halogen Free IT-958G IT-8350G High Tg IT-180I IT-170GRA2 IT-968 SE IT-88GMW IT-180A IT-170GRA1 IT-150DA IT-968G IT-988G SE IT-998G IT-8300GA IT-189 IT-170GT IT-170GLE IT-968 IT-988G IT-998 IT-8338G IT-258GA3 IT-150GS IT-168G1 IT-150GX IT-158 IT-150G IT-168G2 Mid Tg Standard
Slide 7: Core Technology
Core Technology Smartphone Tablet Low Dk Ultrathin Networking Material Science Datacenter Controlled Resin FR-4 Dk and Cloud Computing Low Df Mixture Halogen Consumer Electronics Free Process 5G Engineering High Reliability Automotive Electronics 7
Slide 8: Market Share Leader in Specialty Laminate
Market Share Leader in Specialty Laminate 2020 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
Slide 9: 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
Slide 10: 1Q18~3Q21 Product Mix
1Q18~3Q21 Product Mix Consumer Electronics Networking Smartphone Automotive 5% 10% 10% 10% 11% 11% 10% 10% 11% 11% 11% 13% 12% 11% 10% 7% 10% 10% 10% 9% 9% 9% 10% 10% 8% 8% 9% 10% 9% 9% 34% 36% 38% 40% 48% 52% 63% 50% 45% 48% 56% 55% 58% 52% 56% 46% 44% 42% 40% 32% 29% 31% 33% 31% 24% 24% 23% 25% 27
Slide 11: 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% 16.02% 15.75% 15.82% 14.70% 15.06% 14.75% 14.50% 13.92% 13.73% 13.71% 14.01% 13.06% 8,930 8,168 7,472 7,397 6,379 6,153 6,220 6,112 5,965 5,562 5,677 5,694 5,697 5,862 5,618 5,190
Slide 12: 3Q21 Income Statement
3Q21 Income Statement NTD $Million 3Q21 2Q21 3Q20 QoQ YoY Revenue 8,930 8,168 6,220 9% 44% Gross Profit 1,738 1,625 1,173 7% 48% Operating Expense 631 483 454 31% 39% Operating Profit 1,107 1,142 719 -3% 54% Non-Op Income / Loss (11) (19) 97 -42% -111% Income before Tax 1,096 1,123 816 -2% 34% Tax E
Slide 13: 3Q21 Balance Sheet
3Q21 Balance Sheet NTD $Million 3Q21 2Q21 3Q20 Total Assets 36,035 32,698 25,953 Cash 4,035 2,749 3,625 Marketable Securities 5 5 6 NR / AR 14,100 13,403 11,200 Inventories 5,194 4,161 3,330 Fixed Assets 10,117 9,569 5,896 Total Liabilities 15,681 17,960 13,527 Short-term Debt 1,434 3,144 2,331 NP /
Slide 14: Market Trend & Growth Drivers
Market Trend & Growth Drivers
Slide 15: 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 such as, - Big data and AI
Slide 16: 5G Network Infrastructure & Opportunities
5G Network Infrastructure & Opportunities Core (Telecom) + Transport Network: Central Cloud • Including data center, Edge computing, OTN • High efficient computing and massive data traffic Edge Cloud Core High Speed Material Network Distributed + Centralized Unit (DU+CU) • Including Macro Cell, Micr
Slide 17: Sustainable Growth Momentum (Telecom)
Sustainable Growth Momentum (Telecom) 2021~2030 RAN Equipment Sales Forecast Traditional RAN Open RAN Unit：USD Billion Traditional RAN Open RAN 30 20 10 + + 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: DIGITIMES Research, 2021/7 • Rising Open RAN Market: Another key driver to bring up
Slide 18: Sustainable Growth Momentum (Datacenter)
Sustainable Growth Momentum (Datacenter) 2021~2026 Global Server Shipment CAGR: 6.9% Unit：Thousand 24,000 23,836 20% 20,684 22,173 20,000 18,185 19,421 16,255 17,091 15% 16,000 15,060 10% 12,000 7.9% 6.8% 7.2% 7.5% 6.4% 6.5% 5% 8,000 5.1% -1.2% 4,000 0% 0 -5% 2019 2020 2021(f) 2022(f) 2023(f) 2024(f
Slide 19: Sustainable Growth Momentum (Datacenter)
Sustainable Growth Momentum (Datacenter) 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
Slide 20: 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 & Beyond Laminate (1,200K SHT/Month) Prepreq (5,000K M/Month) WuXi Plant Laminate (
Slide 21: 2014 – 2020 Dividend Policy
2014 – 2020 Dividend Policy Cash Year EPS(NT$) Dividend(NT$) Pay-out Ratio(%) Dividend(NT$) 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% 2019 8.13 5.0 5.0 62% 2020 8.19 5.0 5.0 61% *New shares issuance of 30 million common shares concl
Slide 22: Thank you
Thank you Question and Comment