EMC — Investor Presentation 2021

Sep 3, 2021

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

Presentation August, 2021

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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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Content

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▪ Industry outlook ▪ Financial performance ▪ Appendix

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PCB design of networking infrastructure is migrating

• Trend 1: Halogen-free. HF laminates are preferred or required.

• New platforms of PCIe 4 include, but are not limited to, Intel’s Whitely, request only halogen-free laminates.

• Trend 2: HDI. AI semiconductors, GPUs and CPUs, and heterogeneous integration of semiconductors increase pin counts substantially.

Fine line/pitch HDI architecture design by PCB constructors becomes common.

• Trend 3: The manufacturing technique of HDI becomes the must handicraft art of high-end networking board.

• Decades of experiences and knowledge EMC accumulated in HF and HDI now a competitive advantage unrivalled by peers.

Multi-GPUs make a super high speed computing AI Server

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Source: nVidia

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

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HDI High Speed High Frequency AAU AiP MIMO[RRU] Phone-5G 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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Global server shipment is increasing for next 5 years

Unit：k set

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Source：DIGITIMES Research，2020/9

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The 100/400G switch is becoming the main stream

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2017~2023 switch split

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Source: IDC, Morgan Stanley Research

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The CAGR of 5G Smartphone is 37.9%

Unit: Million

Source: DIGITIMES Research, 2020/9

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HDI is a must trend of wide varieties of automotive electronics applications

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HDI (High-Density Interconnection) PCB adoption in automotive electronics is set to rise in the next 10 years in step with higher penetration of ADAS (advanced driver assistance systems), infotainment systems and telematic systems.

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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

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Operation Performance

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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)
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EPS

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History of Cash dividend and Payout ratio

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Q21 P&L summary

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Unit: NT$ million

Revenue Gross profit Operating profit

Income before tax Tax expenses Net income EPS (NT$) - basic

Gross margin (%) Operating margin (%) Net margin (%)

2Q21 1Q21 9,558 8,004 2,346 1,887 1,596 1,233 1,598 1,224 (347) (260) 1,251 965 3.75 2.89 24.5% 23.6% 16.7% 15.4% 13.1% 12.1%	QoQ 19.4% 24.3% 29.4% 30.5% 33.5% 29.6% 29.8%	2Q20 6,301 1,675 1,106 1,165 (305) 861 2.69 26.6% 17.6% 13.7%	YoY
			51.7% 40.0% 44.3% 37.2% 13.8% 45.3% 39.4%

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1Q21 Abstracted Balance Sheet

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	Unit:NT$ million Cash & Equivalent A/R+N/R Inv PPE Total Assets	2Q21 Amount % 6,696 20.0% 11,970 35.7% 4,837 14.4% 7,437 22.2% 33,516 100.0%	1Q21 2Q20 Amount % Amount % 6,567 21.5% 6,941 26.4% 10,495 34.3% 8,465 32.2% 4,386 14.3% 3,325 12.7% 6,729 22.0% 5,872 22.4% 30,609 100.0% 26,253 100.0% 1,496 4.9% 847 3.2% 7,018 22.9% 5,017 19.1% 300 1.0% 594 2.3% 17,633 57.6% 13,445 51.2% 30,609 100.0% 26,253 100.0%
	Short term Debt A/P Long term Debt	1,574 4.7% 8,262 24.7% 300 0.9%
	Shareholder's Equity	16,436 49.0%
	Total Debt and Equity	33,516 100.0%

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APPENDIX

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Company profile- Global Footprint

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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
▪ EMC Group Outline Taiwan,
HQ
TAIEX listing code: 2383
Established: 1992
Manpower: 3,200+
Capacity: 3.55 KK sheets/ month (CCL)
10.7 KK m/ month (PP)
800 K SF/ month (Mass Lam)
40K panels/ month (MCCCL)
Paid-in capital: USD 96 million
Revenue in 2020: USD 920 million
Production facility
Qualification: ISO-9001, ISO-14001, IATF-16949,
Distributor
ISO-45001, QC080000, AS9100C
and Sony Green Partner Representative office
UL file number: E150504
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Manufacturing Locations and Monthly Capacity

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