EMC — Investor Presentation 2021

Nov 30, 2021

==> picture [720 x 5] intentionally omitted <==

==> picture [720 x 58] intentionally omitted <==

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

Presentation November, 2021

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

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.

Page 2

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

World #1 HF material supplier in 2020

==> picture [400 x 36] intentionally omitted <==

Global Green Laminate Market

==> picture [714 x 323] intentionally omitted <==

----- Start of picture text -----

Kingboard, 13%
Ventec
2%
Nanya New Mtl.
2%
Kingboard EMC
Zhejiang Huazheng, 2%
5% 26%
SYTECH,
Rogers, 2% 12% Pan
Isola, 2%
asonic 1
Nanya New 6%
Material, 2%
MGC, 3% Doosa
n
Goldenmax 6%
(GDM), 4%
SYTECH
Nan Ya 7%
Showa Denko, 4% ITEQ
Plastics, 14%
11%
Doosan, 4% 5 Nan Ya Plastics
13%
5 TUC
TUC, 4% Panasonic, 7%
14%
ITEQ, 7%
EMC,7%
TOTAL LAMINATE: $3,094M
----- End of picture text -----

TOTAL: $12,896M

==> picture [67 x 24] intentionally omitted <==

==> picture [146 x 22] intentionally omitted <==

May 2021

Page 3 Page 3

==> picture [720 x 5] intentionally omitted <==

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

HF 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

==> picture [138 x 103] intentionally omitted <==

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

==> picture [107 x 108] intentionally omitted <==

Page 4

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

High-end CCL (High-speed & High-frequency)

• High-end CCL market grows at 15% CAGR (2021-2025)

• • Overall CCL market grows at 6% CAGR (2021-2025)

• • Commodity CCL market grows at 3% CAGR (2021-2025)

High-end CCL Market

==> picture [93 x 9] intentionally omitted <==

----- Start of picture text -----

Overall CCL Market
----- End of picture text -----

==> picture [359 x 208] intentionally omitted <==

==> picture [363 x 212] intentionally omitted <==

----- Start of picture text -----

2021-2025 High-end CCL growth driving force
• EagleStream Platform launch 1H2215% CAGR
• the 400G/800G switching market will start to pick up in 2021
• 5G base station deployment
----- End of picture text -----

Source: Company data, Goldman Sachs Global Investment Research

Page 5

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

High-speed CCL – JP/TW with 75% Share

High speed CCL 2017 market share

High speed CCL 2020 market share

75% (JP/TW)

Source: Company data, Goldman Sachs Global Investment Research, Prismark

Page 6

==> picture [720 x 5] intentionally omitted <==

EMC Momentum in High speed CCL

==> picture [60 x 22] intentionally omitted <==

==> picture [720 x 58] intentionally omitted <==

==> picture [673 x 284] intentionally omitted <==

Source: Company data, Goldman Sachs Global Investment Research, Prismark

Page 7 Page 7

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

The strong 5G smartphone shipment

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

Unit: Million

==> picture [503 x 218] intentionally omitted <==

Source：IDC, HSBC estimates, 2021/7

Page 8

==> picture [720 x 5] intentionally omitted <==

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

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

Unit: Thounsand

==> picture [625 x 310] intentionally omitted <==

----- Start of picture text -----

16,000 18.0%
15,067
16.0%
15.7%
14,000 13,394
14.0%
12,280
11,847 11,608 11,778
12,000
12.0%
10,000 12.5% 10.0%
9.1%
8.0%
8,000
6.0%
6,000 4.3% 4.0%
2.0%
4,000 1.5%
0.0%
2,000
-2.0% -2.0%
0 -4.0%
2018 2019 2020 2021E 2022E 2023E
HSBCe Server shipment Y/Y %
----- End of picture text -----

Source：IDC, HSBC estimates, 2021/7

Page 9

==> picture [720 x 5] intentionally omitted <==

The 400G switch will have the highest growth among all switches

EMC will take the majority share

==> picture [632 x 339] intentionally omitted <==

----- Start of picture text -----

120%
100%
27%
32%
80% 39%
49%
60%
70%
60% 81%
27% 36%
18%
9%
40% 1%
0%
20% 0% 39% 42% 43% 41% 37%
30%
19%
0%
2017 2018 2019 2020 2021E 2022E 2023E
100G 400G Others
----- End of picture text -----

Source: IDC, HSBC estimates, 2021/7

Page 10

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

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.

==> picture [365 x 131] intentionally omitted <==

==> picture [183 x 64] intentionally omitted <==

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.

Page 11

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

Manufacturing Locations and Capacity Expansion

EMC monthly laminate capacity will increase by 17% and reach 4.15mn sheets/mon in 3Q,2022

==> picture [551 x 420] intentionally omitted <==

----- Start of picture text -----

EMC (HS)
Huangshi
CCL: 600k sheets
PP: 2.4kk meters
Manpower: 500+
+300K SHT/ Month
by June, 2022
----- End of picture text -----

EMC (KS) Kunshan CCL: 1.35kk sheets PP: 3.3kk meters Manpower: 1,000+ +300K SHT/M in Q3,2022 EMC (TW) Taoyuan CCL: 500k sheets PP: 1.8kk meters Manpower: 600+ EMC (TW) Hsinchu CCL: 150k sheets PP: 1.1kk meters Mass Lam: 800k ft2 Metal Core: 40k pnls Manpower: 300+

EMC (ZS) Zhongshan CCL: 950k sheets PP: 2.1kk meters Manpower: 800+

Page 12

==> picture [720 x 5] intentionally omitted <==

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

==> picture [60 x 22] intentionally omitted <==

==> picture [645 x 411] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

Page 13

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

The Corporate Social Responsibility Report

==> picture [502 x 455] intentionally omitted <==

==> picture [91 x 250] intentionally omitted <==

Page 14

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

Sales Revenue

NTD ： Billion

30.0 25.0 2003 ： 2.3Bn → 2020 ： 27.2Bn (2003 ~ 2020) 17 years GAGR=15.5% 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

Revenue

Page 15 Page 15

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

Operation Performance

==> picture [720 x 58] intentionally omitted <==

==> picture [653 x 317] intentionally omitted <==

----- Start of picture text -----

12.0
11.33
EPS: NTD
10.14
10.0
8.7 8.74
8.0
7.6
6.0
5.48
4.9
4.0
4.30 3.73
2.87 2.7
2.0 2.80
1.52
1.36 1.78
0.53
0.49
0.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(1.04)
(2.0)
----- End of picture text -----

EPS

Page 16

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

History of Cash dividend and Payout ratio

==> picture [720 x 58] intentionally omitted <==

==> picture [636 x 358] intentionally omitted <==

Page 17

==> picture [720 x 5] intentionally omitted <==

3Q21 P&L summary

==> picture [60 x 22] intentionally omitted <==

==> picture [720 x 58] intentionally omitted <==

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 (%)	3Q21 10,776 3,078 2,250 2,264 (471) 1,793 5.38 28.6% 20.9% 16.6%	2Q21 9,558 2,346 1,596 1,598 (347) 1,251 3.75 24.5% 16.7% 13.1%	QoQ 12.7% 31.2% 40.9% 41.7% 35.8% 43.2% 43.5%	3Q20 7,474 2,058 1,423 1,437 (314) 1,123 3.40 27.5% 19.0% 15.0%	YoY
					44.2% 49.6% 58.0% 57.6% 13.8% 59.7% 58.2%

Page 18

==> picture [720 x 5] intentionally omitted <==

3Q21 Abstracted Balance Sheet

==> picture [60 x 22] intentionally omitted <==

==> picture [720 x 58] intentionally omitted <==

Unit:NT$ million Cash & Equivalent A/R+N/R Inv PPE Total Assets	3Q21 Amount % 5,568 15.9% 13,631 38.9% 5,336 15.2% 7,883 22.5% 35,059 100.0%	2Q21 3Q20 Amount % Amount % 6,696 20.0% 5,328 20.2% 11,970 35.7% 9,571 36.2% 4,837 14.4% 3,914 14.8% 7,437 22.2% 6,016 22.8% 33,516 100.0% 26,406 100.0%
Short term Debt A/P Long term Debt Shareholder's Equity	2,827 8.1% 8,828 25.2% 964 2.8% 18,178 51.8%	1,674 5.0% 1,209 4.6% 8,262 24.7% 6,114 23.2% 300 0.9% 545 2.1% 16,436 49.0% 15,533 58.8%
Total Debt and Equity	35,059 100.0%	33,516 100.0% 26,406 100.0%

Page 19

==> picture [720 x 5] intentionally omitted <==

==> picture [60 x 22] intentionally omitted <==

==> picture [720 x 58] intentionally omitted <==

Q & A

Page 20