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ENNOSTAR — Investor Presentation 2021
Mar 17, 2021
52376_rns_2021-03-17_d7474ff0-5c37-41f5-a092-67844ebf2e5a.pdf
Investor Presentation
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Fourth Quarter 2020 Results Investor Conference
Mar.18, 2021
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Agenda
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Welcome
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Strategy of Ennostar
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Q420 Financial Results
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2021 Business Outlook – Epistar
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2021 Business Outlook – Lextar
Dr. B.J. Lee Dr. B.J. Lee B.Y. Chang Patrick Fan Dr. David Su
- Q&A
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Safe Harbor Notice
This presentation may contain forward-looking statements. These forward-looking are subject to risks, uncertainties and other factors. Consequently, actual results could differ materially from those reflected in these forward-looking statements.
The factors include the impact of competitive products and pricing, timely acceptance of products design by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand, market oversupply, availability of manufacturing capacity, financial stability in end markets, potential difficulties in talents retention, unexpected costs and expenses, any merger and acquisition associated uncertainties such as obtaining of regulatory approval or integration delay, loss of significant customers, involvement in legal or administrative proceedings, new regulations that may impact our business operation, fluctuations in foreign exchange rates, global economic conditions or non-economic conditions and any other risks factors.
Except as imposed by law, we undertake no obligation to publicly revise or update these forward-looking statements, whether as a result of new information, future events or otherwise.
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Welcome
B.J. Lee Chairman of Ennostar
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Strategy of Ennostar
B.J. Lee Chairman of Ennostar
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Ennostar at a Glance
The Best Investment Platform of Compound Semiconductor
Founded January 2021 Chairman & CEO Dr. B. J. Lee Paid-in Capital USD 241 Million (NTD 6.86 Billion) * Group Revenue (2020) ≈ USD 830 Million (NT 23.7 Billion) Group Patents 6,145 (5,345 granted + 800 pending)
- Rate: 28.48, base on the rate on 31/Dec/2020
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Ennostar Group
2020 Group Revenue：~ USD 830 Million
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Product Epi / Chip Package / Module
Group
Company Chairman : Dr. B. J. Lee Dr. David Su
President : Patrick Fan Dr. Terry Tang
• Episky • Lextar Electronics
Affiliate • Epicrystal • Yenrich Technology
• Jiangsu Canyang Optoelectronics • ProLight Opto
• Shenzhen Epikylin Optoeletronics • Hexawave
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Advanced Compound
Semiconductor
Dr. B. J. Lee
Wayne Shih
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Application
Mini / Micro LED Sensing Automotive Power Device 5G
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#1 Choice in Compound Semiconductors
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4Q20 Financial Results
CFO of Ennostar B.Y. Chang
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Consolidated Statements of Comprehensive Income
| 4Q20 Net Revenue 6,802 EPISTAR 4,282 LEXTAR 2,520 Gross Margin 7.5% Operating Expenses 1,793 Operating Margin (18.1%) Net Non-Operating Items (3,620) Net Income Attributable to Parent Company (4,743) Net Profit Margin (69.7%) Basic EPS (NT Dollar) (6.91) (unaudited) in NT$ millions |
3Q20 6,573 3,731 2,841 0.8% 1,475 (20.8%) (25) (1,309) (19.9%) (1.91) |
QoQ |
|---|---|---|
| +3.5% +14.8% -11.3% +6.7% +21.6% +2.7% - - -49.8% (5.00) |
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Consolidated Statements of Comprehensive Income
| 2020 Net Revenue 23,703 EPISTAR 14,532 LEXTAR 9,171 Gross Margin 2.9% Operating Expenses 6,177 Operating Margin (22.3%) Net Non-Operating Items (3,821) Net Income Attributable to Parent Company (8,739) Net Profit Margin (36.9%) Basic EPS (NT Dollar) (12.74) (unaudited) in NT$ millions |
2019 25,015 15,960 9,055 1.8% 5,379 (18.7%) 563 (4,063) (16.2%) (5.92) |
YoY |
|---|---|---|
| -5.2% -8.9% +1.3% +1.1% +14.8% -3.6% - - -20.7% (6.82) |
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– Statements of Comprehensive Income Epistar
4Q20 3Q20 QoQ in NT$ millions Net Revenue 4,282 3,731 +14.8% Gross Margin 4.1% (9.4%) +13.5% Operating Expenses 1,313 835 +57.2% Operating Margin (25.5%) (30.4%) +4.9%
| in NT$ millions Net Revenue Gross Margin Operating Expenses Operating Margin |
2020 14,532 (3.1%) 4,241 (30.9%) |
2019 15,960 (2.7%) 3,517 (23.1%) |
YoY |
|---|---|---|---|
| -8.9% -0.4% +20.6% -7.8% |
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– Revenue by Application Epistar
Application 2020 Q1 2020 Q2 2020 Q3 2020 Q4 TV BLU 10%-15% 10%-15% 10%-15% 5%-10% NB/MNT/Mobile BLU 15%-20% 15%-20% 15%-20% 10%-15% Lighting[(Horticulture) ] 15%-20% 15%-20% 15%-20% 20%-25% Display 15%-20% 10%-15% 15%-20% 15%-20% Auto 10%-15% 10%-15% 10%-15% 15%-20% Sensing/Special App. 5%-10% 10%-15% 5%-10% 5%-10% Other 10%-15% 15%-20% 10%-15% 10%-15%
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Statements of Comprehensive Income – Lextar
| in NT$ millions Net Revenue Gross Margin Operating Expenses Operating Margin |
4Q20 2,520 13.4% 480 (5.6%) |
3Q20 2,841 14.2% 639 (8.3%) |
QoQ |
|---|---|---|---|
| -11.3% -0.8% -24.9% +2.7% |
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| in NT$ millions Net Revenue Gross Margin Operating Expenses Operating Margin |
2020 9,171 12.4% 1,935 (8.7%) |
2019 9,055 9.6% 1,862 (10.9%) |
YoY |
| +1.3% +2.8% +3.9% +2.2% |
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Revenue by Application – Lextar
Application 2020 Q1 2020 Q2 2020 Q3 2020 Q4 BLU/LED Display 80%-85% 80%-85% 80%-85% 80%-85% Lighting 5%-10% 5%-10% 5%-10% 5%-10% Sensing/UV/Auto 5%-10% 5%-10% 5%-10% 5%-10%
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4Q20 Utilization Rate
| Stage | Epistar | Lextar |
|---|---|---|
| InGaN | Middle | High |
| AlGaInP | High | - |
| Package | - | High |
| Module | - | High |
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Consolidated Balance Sheets & Key Indices
| (unaudited) in NT$ millions Cash & Cash Equivalent Accounts Receivable Inventories Long-term Investments Net PP&E Total Assets Short-term Debt Long-term Debt Total Liabilities Total Equity Inventory Turnover Days Current Ratio Net Debt to Equity |
Amount % 8,992 12.9% 10,407 14.9% 4,256 6.1% 1,916 2.7% 25,198 36.0% 69,953 100.0% 2,244 3.2% 3,201 4.6% 19,880 28.4% 50,073 71.6% 62 2.0 -7.1% 4Q20 |
Amount % 10,144 13.5% 10,610 14.2% 4,232 5.7% 1,929 2.6% 25,985 34.7% 74,904 100.0% 2,680 3.6% 3,012 4.0% 20,145 26.9% 54,759 73.1% 62 2.1 -8.1% 3Q20 |
4Q19 |
|---|---|---|---|
| Amount % |
|||
| 8,991 12.2% 11,662 15.9% 4,556 6.2% 1,047 1.4% 25,038 34.0% 73,559 100.0% 2,148 2.9% 1,011 1.4% 15,179 20.6% 58,380 79.4% 75 2.8 -10.0% |
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Consolidated Cash Flows
| From Operating Activities Profit before Tax Depreciation & Amortization Net Change in Working Capital From Investing Activities Capital Expenditure From Financing Activities Net Change in Loans Net Change in Cash Ending Balance (unaudited) in NT$ millions |
4Q20 448 (4,854) 1,315 (70) (1,071) (1,147) (451) (283) (1,152) 8,992 |
3Q20 |
|---|---|---|
| 631 (1,395) 1,317 748 (1,700) (1,938) 1,178 1,452 188 10,144 |
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Consolidated Cash Flows
| From Operating Activities Profit before Tax Depreciation & Amortization Net Change in Working Capital From Investing Activities Capital Expenditure From Financing Activities Net Change in Loans Net Change in Bonds Cash Dividends Net Change in Cash Ending Balance (unaudited) in NT$ millions |
2020 2,447 (9,108) 5,389 1,696 (5,028) (4,918) 2,743 2,267 0 (0) 1 8,992 |
2019 |
|---|---|---|
| 3,397 (4,117) 6,099 1,223 (2,884) (3,943) (938) 273 (314) (427) (632) 8,991 |
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2021 Business Outlook – Epistar
Patrick Fan President of Epistar
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2021 Business Outlook – Epistar
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Diversified Mini LED product lines including IT, TV, LED Display, etc.
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Full-year capacity for Mini LED: 1 million pcs of 4” wafer
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Multiple times growth within automotive, sensing and horticulture.
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Not only InGaN’s but also AlGaInP’s utilization could be maintained at high levels.
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2021 Business Outlook – Lextar
David Su Chairman of Lextar
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2021 Business Outlook – Lextar
• Continuous robust demand in IT backlight.
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Double times shipment of IR and UV application.
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Multiple times shipment of Mini LED backlight.
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Mini LED would be introduced into cars with premium panels.
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The utilization of all stages would be maintained at high levels.
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Q&A
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Thank You
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