EMC — Investor Presentation 2021

Aug 20, 2021

Elite Material Co., Ltd.
Global leader of eco-friendly laminates
Presentation
August, 2021

Notes:

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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Notes:

Content

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.

AFTER
Multi-GPUs make a super high speed computing AI Server

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

HDI
High Speed
High Frequency

AAU
MIMO
AiP
RRU

BBU
Phone-5G
mmWave
Phone-4G

ADAS
77GHz

Phone-3G

AI Server
Switch-800G
26.56 GHz
Server- PCIe5
16GHz
Infotainment
NB- USB4.0
Switch-400G
14GHz

E-Mobility
NB- USB3.0

ECU
Switch-100G
12.89GHz
Server- PCIe4
8GHz

Switch-40G
5GHz
Server- PCIe3
4GHz
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Notes:

Global server shipment is increasing for next 5 years

Unit：k set
CAGR 6.7%
?Source：DIGITIMES Research，2020/9
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Notes:

2020年雖首季受疫情影響出貨，但隨供應鏈恢復正常作業，加上2019年雲端業者去化庫存致基期低，2020年出貨量將年增約6.2%。
2021年預期整體伺服器市場成長較為趨緩，年增約5.8%。
肺炎疫情雖加速企業與個人使用雲端服務而有助雲端資料中心營運成長，但在全球疫情未能有效控制導致經濟不振下，亦將影響部分企業客戶對伺服器的採購，減緩伺服器出貨成長速度。
2020年後預期中美關係趨緊張，使中國大陸伺服器業者在關鍵組件(如CPU、記憶體等)取得可能受阻；若轉單予戴爾、慧與或聯想等其他業者，亦需磨合時間，而恐延遲伺服器出貨進度。
預期2022年後疫情影響將減弱，加上晶片商英特爾、超微、NVIDIA新一代CPU及GPU方案開始有效帶動資料中心伺服器換機需求，將恢復年增6.5%以上的態勢。

The 100/400G switch is becoming the main stream

2017~2023 switch split

800G
Source: IDC, Morgan Stanley Research
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7

Notes:

The CAGR of 5G Smartphone is 37.9%

Unit: Million

Source: DIGITIMES Research, 2020/9
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Notes:

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

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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Notes:

https://www.eetasia.com/18062706-xilinx-and-daimler-team-up/

Sales Revenue
NTD：Billion

2003：2.3Bn2020：27.2Bn
(2003 ~ 2020) 17 years GAGR=15.5%

Notes:

Operation Performance

Chart

Category	EPS
2003	-1.04
2004	1.36
2005	0.53
2006	1.78
2007	1.52
2008	0.49
2009	2.8
2010	4.3
2011	2.87
2012	3.73
2013	2.69
2014	4.91
2015	7.55
2016	8.7
2017	8.74
2018	5.48
2019	10.14
2020	11.33

History of Cash dividend and Payout ratio

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Q21 P&L summary

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Notes:

1Q21 Abstracted Balance Sheet

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Notes:

appendix

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Company profile- Global Footprint

Japan
UK
Kunshan, China
Germany
MN
MN

Huangshi, China
MN

OH

Korea

SJ & SA, CA

EMC Group Outline
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
Qualification: ISO-9001, ISO-14001, IATF-16949,
ISO-45001, QC080000, AS9100C
and Sony Green Partner
UL file number: E150504

Zhongshan, China

France
RC, CA

CA
Taiwan, HQ
Production facility

Distributor

Representative office

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Notes:

Manufacturing Locations and Monthly Capacity

EMC (KS)
Kunshan
CCL: 1.35kk sheets
PP: 3.3kk meters
Manpower: 1,000+
+300K SHT/M in Q3,2022

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

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EMC Confidential

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