NDB — Investor Presentation 2019

Oct 25, 2019

Taiwan stock exchange (TWSE：3090)

Investor Conference

Honesty、Service、Growth、Co-Prosperity
2019/10/25

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

1. Company Profile ................................. 01/16 ~ 06/16
2. Line Card ..................................................... 07/16 ~ 12/16
3. Sales Ratio by Market Segment ...... 13/16
4. Sales Ratio by Product Line ............... 14/16
5. Global Economy Prediction ................ 15/16
6. Management & Policy ............................... 16/16

Notes:

1. Company Profile
   (1) Basic Information
   ◆Capital ： NTD 1,786,571,500 (October, 2019)

◆Establishment 　 ：January,1993

◆Chairman of the board ：Freddy Chou

◆Chief Operations Officer ：Eric Lee

◆Managing Director ：Kent Yu

◆Employees ：c. 400 people (October, 2019)
The number of Sales & Sales Support personnel is 295.
The number of Administration & Management personnel is 89.
The number of Research & Development personnel is 16.
01/16

1. Company Profile
   (2) Consolidated Revenue and Net Income (2014~2019 1st Half)
   In Thousands of NTD
   | Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019H1 |
   | --- | --- | --- | --- | --- | --- | --- |
   | Revenue | 8,543,448 | 8,260,868 | 8,446,804 | 8,250,452 | 10,679,189 | 4,357,776 |
   | Net Income | 382,697 | 379,077 | 388,724 | 593,528 | 1,574,915 | 310,999 |

Remark: CY 2019 Q1~Q3 Revenue 6,658,704(In Thousands of NTD)。
02/16

1. Company Profile
   (3) Operating Performances (2014~2019 1ST Half )
   unit ：%
   Data Source：https://mopsfin.twse.com.tw/
   03/16

1. Company Profile
   (4) Historical Dividend (2014~2018)
   | Dividend Year | EPS (NTD) (Note 1) | Cash Dividend (NTD/Share) | Stock Dividend (NTD/Share) | Dividend per Share (NTD/Share) | Dividend Distribution rate(%) |
   | --- | --- | --- | --- | --- | --- |
   | 2014 | 2.44 | 1.5 | 0.5 | 2.0 | 82 % |
   | 2015 | 2.23 | 2.0 | 0.0 | 2.0 | 90 % |
   | 2016 | 2.35 | 2.0 | 0.0 | 2.0 | 85 % |
   | 2017 | 3.50 | 2.5 | 0.7 | 3.2 | 91 % |
   | 2018 | 8.56 | 6.5 | 0.0 | 6.5 | 76 % |
   Note 1：Please refer to Financial Statements.
   04/16

1. Company Profile
   (5) Affiliate Profile

NDB
Main Products:
Electrolytic Capacitor,
Solid Capacitor
Capital ： NTD 1,786,571 仟元
142 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 150,000 仟元
20 Employees
Scope (100%)
Main Products:
Ceramic Capacitor,
LED, etc.
Capital：NTD 330,163 仟元
33 Employees
Tonsam (100%)
Main Products:
Integrated Circuit (I.C.), Sensor.
Capital ：NTD 150,000 仟元
23 Employees

Sentelic (52.84%)
(Added in October,2017)
Main Products:
Fan Motor Driver Control IC,
General MCU Agent
Capital ： NTD 260,000 仟元
51 Employees

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

AES (100%)
Main Products:
Ceramic Capacitor,
LED, etc.
Capital：NTD 274,800 仟元
32 Employees

Sentelic Holding Co., Ltd.?(100%)
Lipers(HK) (100%)
Main Products:
Logistics,?Electronic Components Sales
Capital ： HKD 29,642,793 元
11 Employees

NDB(Mauritius)
(100%)

Ocean Prestige Limited.
(100%)

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

NDB(Suzhou) (100%)
(Operating since April, 2013)
Main Products:
Electronic Components Sales
Capital ：USD 3,396,000 元
31 Employees

Lipers Electronics (Shenzhen) (100%) ?Main Products:
Electronic Components Sales
Capital ： USD 1,000,000 元
10 Employees
Note: Sentelic included since October 2017.
05/16

1. Company Profile
   (6) Group Company Operation Sites

Eastern China
NDB Suzhou Branch Office
Central China
Wuhan Office
Taiwan
New Taipei City H.Q.
Taichung Office
Kaohsiung Office

Southern China
NDB Shenzhen Branch Office
Lipers Shenzhen Branch Office
Hong Kong Region
Lipers Branch Office

06/16

1. Line Card

2. 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

3. 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

1. Line Card
2. 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
3. Authorized Brand – Hitachi
   (1) Main Products ： Electrolytic Capacitor
   (2) Application ：Power Supply、Industrial Personal Computer、
   Industrial Control Equipment、Green Energy、
   Industrial Equipment
4. 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

5. Authorized Brand – Fujitsu
   (1) Main Products ： Relay、Keyboard、Touch Panel、Thermal Printers
   (2) Application ： Industrial Control Equipment、Communication Products、
   Automotive Applications

6. E-Com Authorized Brand – NUVOTON、HOLTEK
   (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

1. Line Card

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

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

09/16

1. Line Card

10. Authorized Brand – AVX／ Kyocera
(1) Main Products：MLCC、Tantalum Capacitor、Super-Cap
(2) Application：Panel、Wireless Module、Camera Module、
Networking、SSD、POS

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

2. Authorized Brand – KEMET
   (1) Main Products：Film Capacitor、MnO2 Tantalum Capacitor、
   Polymer Capacitor
   (2) Application：Power、Networking、PC 、 General Purpose

10/16

1. Line Card

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

1. Line Card

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

1. Authorized Brand - AKM(AKE)
   (1) Main Products ： TCXO-IC, Audio LSI. Hall Sensor
   (2) Application ：Voice Coil Motor、Automotive Application

2. Own Brand – SENTELIC
   (1) Main Products：Fan Motor Driver Control IC、
   (2) Application：Server、Network Communication、Power、
   Home Appliance、Industrial Applications

12/16

1. Sales Ratio by Market Segment
   Security Control、
   IC Packaging、
   Automotive related
   Projector / Audio
   NB、MB 、IPC、
   NAS、Server
   Mobile Phone 、TV、NB、
   Monitor、Tablet
   | Market categories | Share |
   | --- | --- |
   | PC | 20.06% |
   | Switching Power Supply(SPS) | 19.44% |
   | Electronic Manufacturing Services (EMS) | 17.23% |
   | Communication | 9.76% |
   | Consumer Market | 6.52% |
   | Backlight | 1.46% |
   | Other | 25.53% |
   | Total | 100.00% |
   Note: Sentelic included since October 2017.
   Note: Sentelic included since October 2017.
   SPS、Solar Power 、
   Inverter 、UPS

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

1. Sales Ratio by Product Line
   Authorized Brand ：
   Samsung、TDK , Fujitsu, ALPS
   Own Brand ：
   KTS、Lipers -UWA
   Authorized Brand ：
   Samsung、AVX／Kyocera、KEMET
   Authorized Brand ：
   EVERLIGHT
   | Product categories | Share |
   | --- | --- |
   | MLCC | 42.94% |
   | Electrolytic Capacitor (ECP) | 16.00% |
   | Semiconductor IC | 15.01% |
   | Solid Capacitor (SCP) | 11.10% |
   | LED | 4.97% |
   | Other | 9.98% |
   | Total | 100.00% |
   Authorized Brand ：
   Nippon Chemi-Con、
   Panasonic、KEMET 、AVX／Kyocera
   Note: Sentelic included since October 2017.
   Authorized Brand ：
   Nippon Chemi-Con、
   Panasonic
   Authorized Brand ：
   GENESYS、GIANTEC NJRC、AKM(AKE)
   Own Brand：
   SENTELIC
   14/16

1. Global Economy Prediction
   OECD sees rising trade tensions and policy uncertainty further weakening global growth.
   The global economy has become increasingly fragile and uncertain, with growth slowing and downside risks continuing to mount, according to the OECD’s latest .

15/16

1. Management & Policy
2. Keep engaging and expanding businesses in following markets:
   Medical, Automotive, industrial 4.0 related , Robotic,
   5G- Related, and Green-Power industry.
3. Speeding up and expanding operations in South Asia Market. Sales is steadily growing in Vietnam, Indonesia, and Thailand since 2017 to present.
4. Keep expanding and investing new product line to offer one-stop shopping and product mix services to customers.
5. Aiming at creating synergies and strengths by M&A, and diversifying business models in sales channels and marketing activities.
   16/16

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