SDI — Annual Report 2018

Nov 13, 2018

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SDI Corporation ( 2351:TT SDI )

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SDI at a Glance

Business Segments

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----- Start of picture text ----- Stationery Stationery18% 17%Electronic Electronic82% 83%----- End of picture text -----

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----- Start of picture text ----- FY2017----- End of picture text -----

YT3Q2018

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----- Start of picture text ----- Financials----- End of picture text -----

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----- Start of picture text ----- 339US$ M 327319302292 293 29411.9% 11.1%9.6%8.6%7.3%5.9%2.5%2011 2012 2013 2014 2015 2016 2017Revenue(US) Net Margin%----- End of picture text -----

Employees

Total 2,686 employees worldwide

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----- Start of picture text ----- Subsidiary161 employees----- End of picture text -----

R&D center : 154 engineers

Market Position

Power L/F Stationery

Leadframe

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No.3

No.1

No.1 Taiwan

Source : SEMI Industry Research and Statistic , March 2018

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Company History

The Electronic Component Division was established

Shuen Der Manufactory was founded by Mr. S.C. Chen

New Nantou Plant expansion

SDI was elected “ Asia Top 100 Technology Company ”

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----- Start of picture text ----- Technology Company ”INGENUITYwin “IF” design &DG material production“good design”alliance with MitsubishiawardShindoh1967 1996 1998 2007 2012 2013 201620051983 2010 2015I-PULO winThe company “IF” designname was awardPublic listing----- End of picture text -----

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----- Start of picture text ----- 19531983----- End of picture text -----

The company name was changed to Public listing in Taipei, SDI Corporation Taiwan #2351 SDI

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certificated 、 ISO500001 CSR system

60th anniversary

China plant expansion

Established SDI Charity foundation

China plant began operation

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Global Location

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----- Start of picture text ----- Osaka, JapanMenton, France Sales officeSales officeTokyo , JapanSales office----- End of picture text -----

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Virginia, USA Sales office

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----- Start of picture text ----- Jiangsu, China Plant----- End of picture text -----

Factory Sales office

Nantou, Taiwan SDI Plant , TBT , CSM

Changhua, Taiwan Headquarter

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Quality System Certification

• ISO-9000 Certified 1994

• QS-9000 Certified 1999, SDC Certified 2000

• ISO9000:2000 Edition Certified 2003

• ISO14000 Certified 2003

• ISO/TS16949 Certified 2004

• OHSAS 18000 Certified 2007

• QC080000: Certified 2009

• ISO500001 Certified 2016

• CSR 2016

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Our Leadframe Applications

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----- Start of picture text ----- Automotive----- End of picture text -----

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• Energy & Engine power Management

• Powertrain

• Sensors of ADAS & safety system

• Lighting system

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----- Start of picture text ----- ConsumerMulti MarketIndustry Electronic----- End of picture text -----

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• Computing , mobile device , power charger

  • Aero Space device ,

• Motor control units

  • Medical

• Home applications : Air conditioners , washing machines , Micro wave,

• RF power for base station

  - Renewable energy : Wind power  control , solar power control , Fuel cell stack 
  

  • Security : smart card

  • LED lighting , Backlighting of LCD

• Traction : High speed train ,subway power Unit

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Our Leadframe Technology Strategy

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----- Start of picture text ----- High ClipRivetedSOPIPMAutoDFNMedium PowerSensorSmart CardDiscrete PowerLowLow Medium HighTechnology differentiatorAnnual growth rate----- End of picture text -----

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Our Future Trend

World Market Position

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----- Start of picture text ----- MHT11.8%Others Shinko30.2% Electric9.9%US$ 3,165M SDI8.8%ASMPacificCHT 8.7%8.6%----- End of picture text -----

Power Market Position

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----- Start of picture text ----- SDI15.8%Others30.1% MHT9.4%US$ 1,380MJihlin7.8%EnomotoKangqiang 7.0%6.8%----- End of picture text -----

Source : SEMI Industry Research and Statistics , March 2018

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End Market Application Roadmap

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----- Start of picture text ----- YT3Q18----- End of picture text -----

2017

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----- Start of picture text ----- OtherOther8%7%Auto Auto27% 30%ConsumerConsumer34%31%IndustryIndustry31%32%----- End of picture text -----

• Automotive :

Market growth CAGR 7 ~ 10% , Rapid growing in EV car powertrain, auto drive system , sensors .

• Industrial :

Market growth CAGR 5 ~ 7% , Focus on growth area : medical, Motor control ,energy efficiency, security.,

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Core competence of Leadframe

High precision and reliable plating technique with NiPdAu & Ag finish

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Clip – Complicated bending technique for high power and high current requirement

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Heat Sink- Rivet technology and DG for high heat dispatch requirement

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Surface treatment on Cu/Ag/NiPdAu finish for MSL-1 requirement

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Complicative dual gauge rolling

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Integration of Power and IC device : High precision stamping capability for complicated and high density IC lead frame with riveted heatsink

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Stationery Product

Light Force Stapler

Innovative slide-arm patent Saving effort up to 50%

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Flat clinch patent can save 30 ％ paper space

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Twist Pencil Sharpener

Advance auto open / close lid patent Pencil shaving will not fall out

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Innovative ratchet mechanism patent Twist sharpening & 2X speed

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Correction Tape

Unique swivel eraser patent Easy to use and refill

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Push button auto-lock patent Convenient to use

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Precision cutter

Strong auto-lock withstands up to 3kg

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Unique blade limited slot patent stabilizes blade during cutting

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Our Customer

Leadframe

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Stationery

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12

Financial Performance

Earnings Per Share

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----- Start of picture text ----- 4.50 4.00 4.00 3.95 3.93 3.50 3.16 3.00 2.69 2.50 2.00 1.50 1.56 1.00 0.83 0.50 -2011 2012 2013 2014 2015 2016 2017----- End of picture text -----

Return On Equity

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----- Start of picture text ----- 18.0%16.7% 15.4%16.0%14.1%14.0%13.2%12.5%12.0%10.0%8.5%8.0%6.0%5.1%4.0%2.0%0.0%2011 2012 2013 2014 2015 2016 2017----- End of picture text -----

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----- Start of picture text ----- Revenue and Operating Margin----- End of picture text -----

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----- Start of picture text ----- US$ M25% 400.00 350.0020.8%19.3%20% 300.0017.8%17.0% 250.0015% 15.1%13.0%11.9% 200.0011.1%10% 9.6% 150.008.6% 8.6%7.3% 100.005.9%5% 50.002.5%0% -2011 2012 2013 2014 2015 2016 2017Revenue(US) G.M.% Net Margin%----- End of picture text -----

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Financial performance Financial Performance

Item	2012	2013	2014	2015	2016	2017	YT3Q18
Gross margin	13.0%	15.1%	17.8%	17.0%	20.8%	19.3%	18.9%
Operatingmargin	5.9%	7.3%	9.6%	8.6%	11.9%	11.1%	10.9%
Op Exp %	7.1%	7.8%	8.3%	8.4%	8.9%	8.3%	8.0%
EPS	1.56	2.69	3.95	3.16	4.00	3.93	3.43
ROE	8.5%	13.2%	16.7%	12.5%	15.4%	14.1%	11.8%

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http://www.sdi.com.tw

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