NDB — Investor Presentation 2017

May 11, 2017

Taiwan stock exchange (TWSE：3090)

BUSINESS REVIEW
Based on Honesty
Aimed to Service
Growth as Our Tenet
Co-Prosperity be Our Principal Objective
2017/05/11

Disclaimer
This briefing and release contain forward-looking statements which may include projections of future results of operations, financial status or business forecasts based on our internal or external sources.
Our actual results of operations, financial status or business forecasts may differ from those expressed or implied in these forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our control. We undertake no obligation to update these forward-looking statements, whether as a result of future events or circumstances.
NDB expressly disclaims all warranties or representations of any kind, whether express or implied, regarding the reliability, accuracy and completeness of these statements and accepts no liability for any loss directly or indirectly arising from or in reliance upon the contents of these statements.
No material from this briefing may be copied, revised, edited, transmitted or as commercial use in any way, except with NDB’s permission.

Agenda

一、Profile……..………………….………… 01/16 ~ 06/16
二、Distributed Products……….. 07/16 ~ 12/16
三、Market Share……....……………… ……….13/16
四、Product Share…….....………..……………..14/16
五、Future Development............... 15/16 ~ 16/16

Notes:

一、 Profile

(1) Summary
◆Capital ： NTD 1,669,692,990 (April, 2017)

◆Establishment 　 ：January,1993

◆Chairman of the board ：J. H. Huang

◆Vice Chairman ：Freddy Chou

◆Chief Operations Officer ：William Chang

◆Managing Director ：Eric Lee

◆Employees ：c. 408 people (April, 2017)
The number of Sales & Sales Support personnel is 305.
The number of Administration & Management personnel is 103.
01/16

一、 Profile
(2) Consolidated Revenue and Net Income (2012~2016)
In Thousands of NTD
| Year | 2012 | 2013 | 2014 | 2015 | 2016 |
| --- | --- | --- | --- | --- | --- |
| Revenue | 2,313,416 | 6,377,856 | 8,543,448 | 8,260,868 | 8,446,804 |
| Net Income | 185,449 | 332,535 | 382,697 | 379,077 | 388,724 |
02/16

一、 Profile
(3) Profitability (2012~2016)
unit ：%
03/16

一、 Profile
(4) Dividend Distribution (2012~2016)
| Year | EPS (NTD) (Note 1) | Cash Dividend (NTD/Share) | Stock Dividend (NTD/Share) | Dividend per Share (NTD/Share) | Dividend Distribution rate(%) |
| --- | --- | --- | --- | --- | --- |
| 2012 | 1.25 | 0.3 | 1.2 | 1.5 | 120 % |
| 2013 | 2.14 | 1.0 | 1.2 | 2.2 | 103 % |
| 2014 | 2.33 | 1.5 | 0.5 | 2.0 | 86 % |
| 2015 | 2.23 | 2.0 | 0.0 | 2.0 | 90 % |
| 2016 (Note 2) | 2.35 | 2.03040081 | 0.0 | 2.03040081 | 86 % |
Note 1：Adjust surplus to capital increase and capital surplus transferred to capital to each year, in comparison with earnings
per share in each year.
Note 2：Proposal for distribution of 2016 profits not yet adopted by shareholders meeting.
04/16

一、Profile
(5) Affiliate Profile

NDB
Main Products:
Electrolytic Capacitor,
Solid Capacitor
Capital ： NTD 1,669,693 仟元
146 Employees

Vic-Dawn (95.31%)
(merged with Zindenbo Corporation
on 27th, May, 2013)
Main Products:
Battery,
Quartz Crystal Oscillator,
Aluminum Electronic Capacitor, etc.
Capital ：NTD 271,845 仟元
18 Employees

NDB(Mauritius)
(100%)
Scope(100%)
Main Products:
Ceramic Capacitor,
LED, etc.
Capital：NTD 330,163 仟元
31 Employees
AES(100%)
Main Products:
Ceramic Capacitor,
LED, etc.
Capital：NTD 274,800 仟元
28 Employees

Lipers (Subsidiaries included)
(99.34%)
Main Products:
Ceramic Capacitor, LED, etc.
Capital ：NTD 320,000 仟元
42 Employees

Tonsam (100%)
Main Products:
integrated circuit (I.C.), Sensor.
Capital ：NTD 150,000 仟元
42 Employees

NDB(Shenzhen) (100%)
Main Products:
Electronic Components Sales
Capital ： HKD 2,000,000 元
USD 2,743,500 元
45 Employees

NDB(Shanghai) (100%)
Main Products:
Electronic Components Sales
Capital ： USD 1,700,000 元
13 Employees

E-Com (62.31%)
(Added in January,2014)
Main Products:
Electronic Components Sales
Capital ： NTD 125,315 仟元
10 Employees
NDB(Suzhou) (100%)
(Operating since April, 2013)
Main Products:
Electronic Components Sales
Capital ：USD 2,000,000 元
33 Employees

05/16

一、 Profile
(6) Company Location

East China Region
NDB (Shanghai)
NDB (Suzhou)

Wuhan Office

Headquarter
NDB
Vic-Dawn
Lipers
Scope
AES
Tonsam

South China Region
NDB (Shenzhen)
Lipers (Shenzhen)
Hong Kong Region
Lipers (HK)

06/16

二、 Distributed Products

1. Nippon Chemi-con Corporation
(1) Main Products：A. Electrolytic Capacitor
B. Solid Capacitor
(2) Application：Power Supply、 Motherboard 、
Video Card 、 Electrical Ballast 、
Uninterruptible Power Supply 、
Cloud System 、 Green Energy 、 IPC 、
Industrial Equipment 、Car Assembly

1. Matsushita Electronic Co.,LTD.
   (1) Main Products：A. Solid Polymer Capacitor
   B. Film Capacitor
   C. Inductor
   D. Precision Resistor

   (2) Application：Power Supply 、 Motherboard 、 XDSL 、
   IPC 、Cloud System 、 Car Assembly

07/16

二、 Distributed Products
3. Own Brand - KTS Battery Series
(1) Main Products ：Primary Lithium Battery、Rechargeable Lithium Ion Battery、
Wired Lithium Battery
(2) Application ：Motherboard、Notebook、Industrial Personal、Computer、
Industrial Control Equipment、Office Equipment、E-Book、
Console、3C Electronics
4. Authorized Brand – Hitachi
(1) Main Products ： Electrolytic Capacitor
(2) Application ：Power Supply、Industrial Personal Computer、
Industrial Control Equipment、Green Energy、
Industrial Equipment
5. Authorized Brand - ALPS
(1) Main Products ：Switch、Tact SW、SD/SIM Connector、Power Inductor、
Sensor (Magnetic/Current)
(2) Application ： Industrial Control Equipment、Communication Products、
Automotive Applications、Consumer Electronics
6. Authorized Brand – Fujitsu
(1) Main Products ： Relay、Keyboard、Touch Panel、Thermal Printers
(2) Application ： Industrial Control Equipment、Communication Products、
Automotive Applications
7. E-Com Authorized Brand – Nuvoton、Holtek、Sonix
(1) Main Products ： 8 bit ,32 bit MCU、MSR decode IC 、Smart Charger IC、Type C 、PD
(2) Application ： Control Panel of Home Appliance、Consumer Electronics、
Industrial Control Equipment、Car Charger、Adapter、
Power Bank

08/16

二、 Distributed Products

1. Authorized Brand – Samsung
   (1) Main Products：MLCC、PCB
   (2) Application： Motherboard 、 NB 、 Camera Module、
   Wi-fi Module、General Purpose

2. Authorized Brand – Genesys
   (1) Main Products：Card Reader Controller、USB Hub Controller
   (2) Application：NB、Monitor、Docking

09/16

二、 Distributed Products

10. Authorized Brand – AVX／ Kyocera
(1) Main Products：MLCC、Tantalum Capacitor、
Niobium Capacitor
(2) Application：Panel、Wireless Module、Camera Module、
Set-Top Box、SSD、POS

1. Authorized Brand – Epcos
   (1) Main Products：Film Capacitor、Arrestor、MLV、Inductor
   (2) Application：Power Supply、UPS、Inverter、LED Driver、
   Network Communications

2. Authorized Brand – Kemet
   (1) Main Products：Film Capacitor、MnO2 Tantalum Capacitor、
   Polymer Capacitor
   (2) Application：Power、Set-Top Box、General Purpose

10/16

二、 Distributed Products

13. Own Brand – UWA
(1) Main Products：Chip Resistor and Array、Hi VC MLCC
(2) Application：General Purpose

1. Authorized Brand – Everlight
   (1) Main Products： SMD/Lamp LED、High Power LED、
   Low Power LED、Photo Coupler、
   IR Receiver Module
   (2) Application：Lighting、Flash、PC、TV、Monitor、Signage、
   Home Appliance、Industrial Applications、
   Automotive

11/16

二、 Distributed Products

15. Authorized Brand - NJRC
(1) Main Products：IC
(2) Application：Data Storage Device/HDD 、
Network Communication、
Audio & Video Consumer Market

1. Authorized Brand - AKM(AKE)
   (1) Main Products ：IC、Hall Sensor
   (2) Application ：Voice Coil Motor、
   Temperature Compensated Crystal Oscillator

12/16

三、 Market Share
Drone、
Security Control、
IC Packaging、
Crystal Oscillator
NB、MB 、IPC、
NAS、Server
| Market categories | Share |
| --- | --- |
| PC | 28.36% |
| Switching Power Supply(SPS) | 23.07% |
| Communication | 7.53% |
| Consumer Market | 5.82% |
| Backlight | 4.00% |
| Electronic Manufacturing Services (EMS) | 8.88% |
| Other | 22.34% |
| Total | 100.00% |
Mobile Phone 、TV、NB、
Monitor、Tablet
Note: Tonsam included since July 2016.
SPS、Solar Power 、
Inverter

Mobile Phone、
Network Communication
TV、Medicine、Signage、
Home Appliance
13/16

四、 Product Share
Authorized Brand ：
Samsung、Epcos
Own Brand ：
KTS、Lipers-UWA
Authorized Brand ：
Samsung、AVX／Kyocera、Kemet
| Product categories | Share |
| --- | --- |
| MLCC | 31.43% |
| Electrolytic Capacitor (ECP) | 18.87% |
| Semiconductor IC | 14.72% |
| Solid Capacitor (SCP) | 12.70% |
| LED | 10.55% |
| Other | 11.73% |
| Total | 100.00% |
Authorized Brand ：
Everlight、LG
Note: Tonsam included since July 2016.
Authorized Brand ：
Nippon Chemi-con、
Panasonic
Authorized Brand ：
Nippon Chemi-con、
Panasonic、Kemet 、AVX／Kyocera

Authorized Brand ：
Genesys、FocalTech、
NJRC、AKM(AKE)
14/16

六、 Future Development

Increase Profits

1. Engaging in high margin industry
    For example: medicine, car, industrial control, mechatronics,
    military project, etc.
2. Increase product line to provide one-stop service for capacitors
    We are agents of almost all the major capacitor brands, many of
    them are the top 3 suppliers in the world.
3. South policy
    Plan to set up an office in Vietnam for a start.
4. Continuning M&A strategy
    Distributors of passive components in Taiwan as priority objects.

15/16

六、 Future Development

Cut Costs

1. Regional focus adjustment to cut costs and be close to customers
    Downsize but maintain Shanghai office, employees transferred
    to Suzhou as our operation center in East China.
2. Strengthen the flexibility of logistics and warehousing and
    control costs
    Main warehouses are in Taiwan, Shenzhen and Suzhou,
    significantly downsize yet maintain H.K. warehouse. Shenzhen

16/16

Thank You
NICHIDENBO CORPORATION
TEL：(02)2219-0505
FAX：(02)2219-1010
WEB：www.ndb.com.tw