Elite Material Co., Ltd. — Investor Presentation 2021

Jan 21, 2021

Elite Material Co., Ltd.

Global leader of eco-friendly laminates

Presentation Jan, 2021

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

▪ Industry outlook ▪ Financial performance ▪ Appendix

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Global server shipment CAGR is 6.5% in the next 5 years

0 4,000 8,000 12,000 16,000 20,000 24,000 K units	13,916 15,238 14,570 15,297 16,132 17,084 18,416 19,982 14.4% 9.5% -4.4% 5.0% 5.5% 5.9% 7.8% 8.5% -10% -5% 0% 5% 10% 15% 20% 2017 2018 2019(f) 2020(f) 2021(f) 2022(f) 2023(f) 2024(f) Year 2017~2024 Global server shipment forecast

Notes ： Shipment calculation is based on number of motherboard Source ： DIGITIMES Research ， 2019/9

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EMC is well positioned to capture the share of 400G switch in the future

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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

Source: nVidia

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The demand of high-end technology, mSAP HDI is increasing, where EMC’s expertize lies in.

Source: Prismark

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A wide variety of automotive electronics applications is a positive trend for HDI

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

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NTD ： Billion
30.0
25.0
2004 ： 3.07Bn � 2019 ： 24.87Bn
(2004 ~ 2019) 15 years GAGR=15.32%
20.0
15.0
10.0
5.0
0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenue
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Operation Performance

History of Cash dividend and Payout ratio

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3Q20 P&L summary

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 (%)	3Q20 7,474 2,058 1,423 1,438 (314) 1,124 3.40 27.5% 19.0% 15.0%	2Q20 6,301 1,675 1,106 1,165 (304) 861 2.69 26.6% 17.6% 13.7%	QoQ 18.6% 22.8% 28.7% 23.4% 3.4% 30.5% 26.3%	3Q19 6,975 1,823 1,303 1,360 (400) 960 3.00 26.1% 18.7% 13.8%	YoY
					7.1% 12.9% 9.3% 5.8% -21.6% 17.0% 13.3%

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3Q20 Abstracted Balance Sheet

	Unit:NT$ million Cash & Equivalent A/R+N/R Inv PPE Total Assets	3Q20 Amount % 5,328 20.2% 9,571 36.2% 3,914 14.8% 6,016 22.8% 26,406 100.0%	2Q20 3Q19 Amount % Amount % 6,941 26.4% 5,707 23.5% 8,465 32.2% 9,092 37.5% 3,325 12.7% 2,779 11.5% 5,872 22.4% 5,365 22.1% 26,253 100.0% 24,234 100.0% 1,131 4.3% 1,048 4.3% 5,017 19.1% 5,741 23.7% 594 2.3% 692 2.9% 13,445 51.2% 12,518 51.7% 26,253 100.0% 24,234 100.0%
	Short term Debt A/P Long term Debt	1,209 4.6% 6,114 23.2% 545 2.1%
	Shareholder's Equity	15,533 58.8%
	Total Debt and Equity	26,406 100.0%

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APPENDIX

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Company profile- Global Footprint

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Japan
Kunshan,
UK
China
Korea
Germany
Huangshi,
CA OH China
Taiwan,
France
HQ
Zhongshan,
China
▪ 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 2019: USD 806 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

EMC (HS) Huangshi CCL: 600k sheets PP: 2.4kk meters Manpower: 500+

EMC (KS) Kunshan CCL: 1.35kk sheets PP: 3.3kk meters Manpower: 1,000+ 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+