SDI — Annual Report 2017

May 25, 2018

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SDI Corporation ( 2351 SDI )

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2

SDI at a Glance

Business Segments

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LED Other
4% 7%
VCM
5%
Stationery
18%
IC
15%
Discrete
69%
Electronic
82%
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Group Products

Electronic Products

Employees

Total 2730 employees worldwide

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Subsidiary
170 employees
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R&D center : 140 engineers

Revenue FY2017

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Financials
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US$ M 339
327
319
302
292 293 294
11.9% 11.1%
9.6%
8.6%
7.3%
5.9%
2.5%
2011 2012 2013 2014 2015 2016 2017
Revenue(US) Net Margin%
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Market Position

Power L/F Stationery

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Leadframe
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No.3

No.1

No.1 Taiwan

Source : SEMI Industry Research and Statistic , November 2015

3

Company History

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SDI was elected “Asia Top 100 Technology Company

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New Nantou Plant expansion

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DG material production alliance with Mitsubishi Shindoh

The company name was changed to SDI Corporation

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

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by Mr. S.C.
Chen
1983 1996 1998
1953 2005
1990
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INGENUITY win “IF” design & “good design” award

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2007 2012 2013 2016
2010 2015
I-PULO win
certificated
“IF” design 、
ISO500001
award
CSR system
60th anniversary
Charity foundation
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The Electronic
Component
Division was
established
Public listing
in Taipei,
Taiwan
#2351 SDI
China plant
began operation
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China plant expansion Established SDI Charity foundation

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4

Global Location

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Osaka, Japan
Menton, France Sales office
Sales office
Tokyo , Japan
Sales office
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Virginia, USA Sales office

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Jiangsu, China Plant
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Factory Sales office

Nantou, Taiwan SDI Plant , TBT , CSM

Changhua, Taiwan Headquarter

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5

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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6

Our Leadframe Applications

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Automotive
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• Energy & Engine power Management

• Powertrain

• Sensors of ADAS & safety system

• Lighting system

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Consumer
Multi Market
Industry Electronic
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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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7

Our Leadframe Technology Strategy

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High Clip
Riveted
SOP
IPM
Auto
DFN
Medium Power
Sensor
Smart Card
Discrete Power
Low
Low Medium High
Technology differentiator
Annual growth rate
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8

Our Future Trend

World Market Position

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SH
Materials
11.6%
Others
MHT
31.1%
11.1%
US 2,991M SDI
9.7%
Shinko
Electric
ASM
8.1%
Pacific
7.6%
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Power Market Position

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SDI
16.2%
Others
36.3% SH Materials
12.2%
US 978M
TSP
10.1%
Possehl
Jihlin
8.5%
6.1%
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Source : SEMI Industry Research and Statistics , December 2015

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End Market Application Roadmap

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2017 1Q18
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27%
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29%
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8%
34%
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8%
31%
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Auto Industrial comsumer others

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• 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.,

9

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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10

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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11

Our Customer

Leadframe

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Stationery

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12

Financial Performance

Earnings Per Share

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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
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Return On Equity

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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
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Revenue and Operating Margin
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US$ M
25% 400.00
350.00
20.8%
19.3%
20%
300.00
17.8%
17.0%
250.00
15% 15.1%
13.0%
11.9% 200.00
11.1%
10% 9.6%
150.00
8.6% 8.6%
7.3%
100.00
5.9%
5%
50.00
2.5%
0% -
2011 2012 2013 2014 2015 2016 2017
Revenue(US) G.M.% Net Margin%
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13

Financial performance Financial Performance

Item	2011	2012	2013	2014	2015	2016	2017	1Q18
Gross margin	8.6%	13.0%	15.1%	17.8%	17.0%	20.8%	19.3%	18.2%
Operating margin	2.5%	5.9%	7.3%	9.6%	8.6%	11.9%	11.1%	10.1%
Op Exp %	6.1%	7.1%	7.8%	8.3%	8.4%	8.9%	8.3%	8.1%
EPS	0.83	1.56	2.69	3.95	3.16	4.00	3.93	0.85
ROE	5.1%	8.5%	13.2%	16.7%	12.5%	15.4%	14.1%

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14

http://www.sdi.com.tw

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