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ICHIA Investor Presentation 2017

Jul 21, 2017

52057_rns_2017-07-21_fa99284a-eeb4-4b5a-a313-23f501fef419.pdf

Investor Presentation

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ICHIA TECHNOLOGIES, INC.

A leading component player in the world.

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Investor Conference

Jul 21,2017

Agenda

Times Content 14:00~14:30 Registration 14:30~15:30 2017 Operation 15:30~16:00 Q&A 16:00 Ending

2

Consolidated Statements of Income 2Q/2017

Unit: In NT$ thousands

In NT$ thousands Q2/2017 Q1/2017
金額 % 金額 %
Net Sales 1,748,313 100 1,474,123 100
Cost of Sales 1,736,369 99 1,413,436 96
Gross Profit 11,944 1 60,687 4
Operating Exp. 107,468 6 104,065 7
Gain From
Operations
(95,524) -5 (43,378) -3
Non-Operating
Income & Exp.
14,539 1 (62,563) -4
Earnings Before
Income Tax
(80,985) -4 (105,941) -7

P.S. Figures shown above are consolidated and unaudited.

Revenue Breakdown by BU

Consolidated Statements of Income 2017 H1

In NT$ thousands 2017H1 2016H1
金額 % 金額 %
Net Sales 3,222,436 100 2,813,883 100
Cost of Sales 3,149,805 98 2,723,630 97
Gross Profit 72,631 2 90,253 3
Operating Exp. 211,533 7 224,680 8
Gain From
Operations
(138,902) -5 (134,427) -5
Non-Operating
Income & Exp.
(48,024) -1 10,361 1
Earnings Before
Income Tax
(186,926) -6 (124,066) -4

Unit: In NT$ thousands

P.S. Figures shown above are consolidated and unaudited.

Operation Ability

MVI BU Business highlight & outlook

MVI Products Application Change

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3C Waterproof
Mobile
Phone
Automotive
Wearable
Mobile
IP Phone
Phone
IP Phone
Automotive
Yr 2017
Yr 2014
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  • Mobile Phone/IP Phone Parts will keep Dropping.

  • LIM/Co-Mold(Waterproof) application Parts are Good Potential Market.

  • Wearable Parts/Automotive Parts has bright Future.

Core Competencies of ICHIA

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Prodduct 按鍵 穿戴 汽車按鍵 IML
New C New I
Application 模組 VR 塑膠機構 膜內射出
機構整合元件
Business FPC/PCBA Parts
事業處
Unit
LSR 細線路 SMT
按鍵 錶帶 汽車內飾
Product Co-Mold FPC板 上件板
橡 / 塑 機構 模具 製程 機構 印刷 細線路 IC/SMT
Ability
成型 設計 開發 整合 電測 噴漆 蝕刻 上件
9
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The Business Trend
IOT/物聯網
電動車
IML/ New C
AR/VR/MR/VR
智慧手錶/手環
LIM / LIM
智慧型手機
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Automotive Trend

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未來 3~5 年
輕量化 中國 智能化
汽車發展
節能減排,改善能源結構 實現虛擬到實體轉換,
並將車輛減重15%以上 實現無人化
固定傳輸到移動傳輸
信息化
與互聯網結合
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Approaching Strategy

IML

Infortainment Sub-assembly

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 Key Fob
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11

Automotive Parts Road Map

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術 CAPACITIVE
IML PC+GF -- 用料轻量
TOUCH Switch

化 造型简约化




公司現有產品的改良或修正 產品型態的擴充
2-shoot,painting+laser (核心能力再利用)Sub-assy,FIM
現有客户 新客户
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Yr 2017 to Near Future

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Waterproof
Mobile
Mobile
Phone
Phone
IP Phone
Wearable Waterproof
IP Phone
Automotive
Automotive
Wearable
Yr 2017 Near Future
---->產品組合平均,風險分散
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FPC BU Business highlight & outlook

2017 FPC Product Applicatin
outlook
15
application
2017 H1
2017 H2
Auto
35%
qualified and MP for Sxx,
Steady gowth demanding
from China display
maker(Txx).
Comsumer
55%
Enlarged on HD LCM
businesss appliaction( pitch 80um
with BVH)
High volume production
with profitable Yield rate.
(HW, XM)
new business
D/S COF
2%
steady increase on TP
appliaction(25/25um)
provide Trial run total
solution( COF+bonding).
co-develop with Drive IC
makder
OFC +5G
3%
PP for Finisar
HW & Hisense qualification
volume production for
Finisar
sample build for HW
2017 FPC Product Applicatin
outlook
15
application
2017 H1
2017 H2
Auto
35%
qualified and MP for Sxx,
Steady gowth demanding
from China display
maker(Txx).
Comsumer
55%
Enlarged on HD LCM
businesss appliaction( pitch 80um
with BVH)
High volume production
with profitable Yield rate.
(HW, XM)
new business
D/S COF
2%
steady increase on TP
appliaction(25/25um)
provide Trial run total
solution( COF+bonding).
co-develop with Drive IC
makder
OFC +5G
3%
PP for Finisar
HW & Hisense qualification
volume production for
Finisar
sample build for HW
2017 FPC Product Applicatin
outlook
15
application
2017 H1
2017 H2
Auto
35%
qualified and MP for Sxx,
Steady gowth demanding
from China display
maker(Txx).
Comsumer
55%
Enlarged on HD LCM
businesss appliaction( pitch 80um
with BVH)
High volume production
with profitable Yield rate.
(HW, XM)
new business
D/S COF
2%
steady increase on TP
appliaction(25/25um)
provide Trial run total
solution( COF+bonding).
co-develop with Drive IC
makder
OFC +5G
3%
PP for Finisar
HW & Hisense qualification
volume production for
Finisar
sample build for HW
application 2017 H1 2017 H2
Auto
35%
qualified and MP for Sxx, Steady gowth demanding
from China display
maker(Txx).
Comsumer
55%
Enlarged on HD LCM
businesss appliaction( pitch 80um
with BVH)
High volume production
with profitable Yield rate.
(HW, XM)
new business
OFC +5G
3%
PP for Finisar
HW & Hisense qualification
volume production for
Finisar
sample build for HW
D/S COF
2%
steady increase on TP
appliaction(25/25um)
provide Trial run total
solution( COF+bonding).
co-develop with Drive IC
makder

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Auto business Roadmap-Dispaly
GM

Car Before market

Luxary Car
50%

Top 5 LCM makter
Battery Control
Dashboard
Central control
20%
AV/Rear Mirror
2016 2017 2018 2019
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OFC business

# of Items for OFC 4Q15
2016 9mth 4Q16 2017(E) 2018(e)
Sample
Award
75 37 10 50+ 5+(new
cusotmer)
Sample
Approved
- 31 36 60+ 5+(new
cusotmer)
Mass Production - 1 20 1H:4+
2H:15+
2+(new
cusotmer)

OFC:

  • solid demanding(double to H1) from umid-end product(tesa/rosa) appliaction

  • qualified by HW, Hisence( china major players).

17

Comsumer business outlook

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Ixx, Txx,
M-led/ Amoled
Gxx, Txx, 2-metal COF
(pitch 20um)
TP/PMoled
D/S COF
NT Jxx, Axx, Ixx
pitch:50um
Axx, Hxx
HD Display
pitch:80um Axx, Gxx
Device(S phone)
+
BTB connect
BVH
Axx, Oxx Device(IOT) SMT+FA
BTB connect
CT SMT+FA
Device(phone)
BTB connect
SMT+FA
CC NC
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Market Trends

AMOLED TV

■ Dimension

  • Fine Pitch

  • Lead Width ,Total Pitch Control

■ Function

  • High Density

  • Thin thickness

AMOLED Phone

  • Flexible

Flexible Panel

19

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D/S COF Supplier
Mterial Process Product Maker
PI Metalization ichia
LxxxxLGIT
MSAP
D/S
JxxxxJMC
COF
SPUTTERING
STEMCOSxxxx
ETCHING FLEXCEEDFxxxx
20
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DS COF Capability

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Input Outer Leader L/S 120um/180um, 153 channels
Input Inner Leader L/S 16um/42um, 493 channels
Top
Output Inner Leader L/S 8um/12um, 2368 channels
Output Outer
L/S 10um/14um, 2368 channels
Leader
PTH Hole/Pad 25um/75um
Bottom
Base Film UBE SGA Type 25um
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21

ichia's Strength

Homemade material

Pre-drill

Low material cost

High peeling strength

COF+Bonding one stop shop

Oppty. from IC design house

Easier change to sputtering

  • Use thicker PI

22

Fine Pitch Pattern Roadmap

Item 2014 2015 2016 2017~
Min. pitch
Min. Lead width
M/P 50um pitch
(25/25um)
40um p
(20/20
itch
um)
40um pitch
(18um width)
20um pitch
(8um width)
R & D
Lead width tolerance +/- 5 um +/- 5 um +/- 5 um +/- 3 um
Total pitch tolerance +/-5 um +/-5 um +/-5 um +/-2 um
Cu Thickness 12um 8um

Semi-additive :

Min line & space :8um / 12um

Min lead width :8 um (Cu thickness:8um)

23

FPC Product Application

2017H1

FY 2017(F)

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Auto, 40%
Consumer,
51%~55%
1%~3%
4%~5%
24
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Summary

Recovery of the profitability:

- Re-entry into consumer market by get into Highend China Brand Mobile Phone for Revenue increased.

- Improve the Yield rate after MP in May, June and July.

- Manage the Efficiency , Cost reduction on material, Mission of operation team

- Balance the finance gap in 1st H of 2017 and Ready for Positive turn for 2018 onward.

Q & A

歡迎聯繫

Larry Sun 孫永祥 Spokesman Tel : +886-3-3973345 ext. 11802 E-mail : [email protected]

Patrick Tsai 蔡沛成 Investor Relations Tel : +886-3-3973345 ext. 11808 Mobil: +886-987-816-292 E-mail : [email protected]

- Company Website http://www.ichia.com.tw/ Financial details - http://mops.twse.com.tw/mops/web/index