EMC — Interim / Quarterly Report 2022

Aug 29, 2022

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

Presentation August, 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 15% 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, July 2022

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Global server revenue expects to have strong growth in the coming three year

EMC expects to gain significant share in current and next generation platform

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Source: CLST, 2022/6

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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 significant majority share in the 5G smart phone application dominating in HDI from standard layer, any layer, through SLP CCL

Unit: Million

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Source：IDC, HSBC estimates, 2021/7

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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 GAGR=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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2Q22 P&L summary

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Unit: NT$ million

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2Q22 1Q22 QoQ 2Q21 YoY
Revenue 9,983 9,918 0.7% 9,558 4.4%
Gross profit 2,297 2,478 -7.3% 2,346 -2.1%
Operating profit 1,454 1,651 -11.9% 1,596 -8.9%
Income before tax 1,448 1,669 -13.2% 1,598 -9.4%
Tax expenses (364) (343) 6.1% (347) 4.8%
Net income 1,084 1,326 -18.3% 1,251 -13.3%
EPS (NT$) - basic 3.25 3.98 -18.3% 3.75 -13.3%
Gross margin (%) 23.0% 25.0% 24.5%
Operating margin (%) 14.6% 16.6% 16.7%
Net margin (%) 10.9% 13.4% 13.1%
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2Q22 Abstracted Balance Sheet

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	Unit:NT$ million Cash & Equivalent A/R+N/R Inv PPE Total Assets	2Q22 Amount % 9,596 21.5% 13,246 29.7% 6,196 13.9% 12,711 28.5% 44,653 100.0%	1Q22 2Q21 Amount % Amount % 8,368 20.9% 6,696 20.0% 13,318 33.3% 11,970 35.7% 5,476 13.7% 4,837 14.4% 10,232 25.5% 7,437 22.2% 40,047 100.0% 33,516 100.0% 4,397 11.0% 1,674 5.0% 7,891 19.7% 8,262 24.7% 774 1.9% 300 0.9% 21,652 54.1% 16,436 49.0% 40,047 100.0% 33,516 100.0%
	Short term Debt A/P Long term Debt	3,942 8.8% 8,869 19.9% 3,674 8.2%
	Shareholder's Equity	19,421 43.5%
	Total Debt and Equity	44,653 100.0%

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Q & A

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