EMC — Interim / Quarterly Report 2022

Nov 15, 2022

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Elite Material Co., Ltd. Global leader of high end eco-friendly laminates

Presentation November, 2022

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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 prospects may differ from those explicitly or implicitly indicated in those forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, supply chain issues, global economic conditions, exchange rate fluctuation and other risks and factors beyond EMC’s controls. The forward-looking statements in this presentation, if any, only reflect the current view of EMC as of the date of its release. EMC undertakes no obligation to update those forward-looking statements for events or circumstances that occur subsequently.

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World #1 HF material supplier in 2021

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Global Green Laminate Market

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Trend of 5G infrastructure development: HF, HDI, High Speed, High Frequency

Halogen Free HDI High Speed AAU AiP MIMO[RRU] Phone-5G High Frequency BBU mmWave Phone-4G ADAS Phone-3G 77GHz AI Server Switch-800G 26.56 GHz Server- PCIe5 Infotainment NB- USB4.0 Switch-400G 16GHz 14GHz E-Mobility

NB- USB3.0

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Switch-100G ECU Server- PCIe4 12.89GHz 8GHz Server- PCIe3 Switch-40G 4GHz 5GHz

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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)

Overall CCL Market

High-end CCL Market

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Source: Goldman Sachs Global Investment Research, Oct 2022

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High-speed CCL – JP/TW with 75% Share

High speed CCL 2017 market share

High speed CCL 2021 market share

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Source: Goldman Sachs Global Investment Research, Oct 2022

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EMC Momentum in High speed CCL – from Nothing to 16% Global Share in 4 years

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Source: Goldman Sachs Global Investment Research, Oct 2022

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Global server shipment expected to have strong growth in the coming five years

EMC expects to gain significant share in next generation platform

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800G
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Source: DIGITIMES, 2022/9

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The switch market continues to enjoy high growth in the coming years

EMC expects to gain significant share in 400G platform

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Source: Arista, 2022/5

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The strong 5G smartphone shipment

， EMC takes the majority share in the 5G smart phone CAGR is 22% from 2022-2024

Unit: Million

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Source：Goldman Sachs Global Investment Research, Oct 2022

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CCL Production in the USA

EMC is the only CCL manufacturer, among all Taiwanese & Chinese makers, having production capacity in the USA meeting President Biden’s “Made in USA” initiative requirement.

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9433 Hyssop Dr, Rancho Cucamonga, CA 91730, United States

Arlon, a CA-based company at Rancho Cucamonga, makes specialty laminates and prepregs for PCBs used in the aerospace, defense and semiconductor industries, also known as Arlon EMD.

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Manufacturing Locations and Capacity Expansion

EMC monthly laminate capacity will increase by 30% and reach 4.6mn sheets/mon in 3Q,2023

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EMC (HS)
Huangshi
CCL: 900k sheets
PP: 4.8kk meters
Manpower: 700+
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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 (TW) Taoyuan CCL: 500k sheets PP: 1.8kk meters Manpower: 600+ +300K SHT/M in 2024 EMC (TW) Hsinchu CCL: 150k sheets PP: 1.1kk meters Mass Lam: 800k ft2 Metal Core: 40k pnls Manpower: 200+ EMC (ZS) Zhongshan CCL: 950k sheets PP: 2.1kk meters Manpower: 900+

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Global Footprint- pan US, pan EU & pan Asia sales distribution network

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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
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The Corporate Social Responsibility Report

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Steadily Sales Growth

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NTD ： Billion
40.0
2003 ： 2.3Bn → 2021 ： 38.5 Bn
35.0
(2003 ~ 2021) 18 years CAGR=17.0%
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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Revenue

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Sustainable Operation Performance

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History of Cash dividend and Payout ratio

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NTD
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3Q22 P&L summary

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Unit: NT$ million

Unit: NT$ million
Revenue Gross profit Operating profit Income before tax Tax expenses Net income EPS (NT$) - basic Gross margin (%) Operating margin (%) Net margin (%)	3Q22 9,883 2,549 1,598 1,630 (322) 1,308 3.93 25.8% 16.2% 13.2%	2Q22 9,983 2,297 1,454 1,448 (364) 1,084 3.25 23.0% 14.6% 10.9%	QoQ -1.0% 11.0% 9.9% 12.6% 11.5% 20.7% 20.9%	3Q21 10,776 3,078 2,250 2,264 (471) 1,793 5.38 28.6% 20.9% 16.6%	YoY
					-8.3% -17.2% -29.0% -28.0% 31.7% -27.1% -27.0%

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3Q22 Abstracted Balance Sheet

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	Unit:NT$ million Cash & Equivalent A/R+N/R Inv PPE Total Assets	3Q22 Amount % 7,526 18.1% 13,309 31.9% 4,710 11.3% 13,742 33.0% 41,688 100.0%	2Q22 3Q21 Amount % Amount % 9,596 21.5% 5,568 15.9% 13,246 29.7% 13,631 38.9% 6,196 13.9% 5,336 15.2% 12,711 28.5% 7,883 22.5% 44,653 100.0% 35,059 100.0% 3,942 8.8% 2,827 8.1% 8,869 19.9% 8,828 25.2% 3,674 8.2% 964 2.8% 19,421 43.5% 18,178 51.8% 44,653 100.0% 35,059 100.0%
	Short term Debt A/P Long term Debt	4,730 11.3% 6,880 16.5% 3,969 9.5%
	Shareholder's Equity	20,948 50.2%
	Total Debt and Equity	41,688 100.0%

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Q & A

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