SDI — Interim / Quarterly Report 2021

Jun 8, 2021

SDI Corporation ( 2351:TT SDI )

1

SDI at a Glance

Business Segments

==> picture [233 x 123] intentionally omitted <==

----- Start of picture text -----

Stationery Stationery
17% 16%
Electronic Electronic
83% 84%
2020 1Q21
----- End of picture text -----

==> picture [310 x 182] intentionally omitted <==

----- Start of picture text -----

Financial Performance
----- End of picture text -----

Employees

==> picture [167 x 11] intentionally omitted <==

----- Start of picture text -----

Total 2,549 employees worldwide
----- End of picture text -----

==> picture [133 x 11] intentionally omitted <==

----- Start of picture text -----

R&D center : 141 engineers
----- End of picture text -----

==> picture [290 x 32] intentionally omitted <==

----- Start of picture text -----

Market Position
----- End of picture text -----

==> picture [265 x 96] intentionally omitted <==

----- Start of picture text -----

Leadframe Power L/F Stationery
No.1
No.4 No.1
Taiwan
----- End of picture text -----

資料來源 : SEMI Industry Research and Statistic , April 2020

2

Company History

==> picture [646 x 293] intentionally omitted <==

----- Start of picture text -----

SDI was elected
Shuen Der
Manufactory “ Asia Top 100
was founded by The Electronic Technology Company ” 5th Taiwan
Mr. S.C. Chen
Component Nantou Plant Mittelstand
Division was established expansion DG material production alliance with Mitsubishi CertificatedISO500001、 Award
Shindoh CSR system
60th anniversary
1967 1996 1998 2007 2012 2015 2018
1953 1983 2005 2010 2013 2016 2019
Public
listing in
Taipei,
Taiwan China plant
#2351 SDI expansion
The company
name was Established SDI
changed to Charity INGENUITY
foundation
SDI Corporation China plant win “IF” design & 25th National Quality
began I-PULO win “IF” “good design” Award Business
operation design award award Excellence Award
LEED Gold Certification
----- End of picture text -----

3

Global Locations

==> picture [9 x 8] intentionally omitted <==

==> picture [680 x 324] intentionally omitted <==

----- Start of picture text -----

Menton, France
Osaka, Japan
Sales office
Sales office
Tokyo , Japan
Sales office
Virginia, USA
Sales office
Jiangsu, China Plant
工廠
Changhua, Taiwan
銷售辦事處
Headquarter
Nantou, Taiwan
SDI Plant , TBT , CSM
----- End of picture text -----

4

Quality System Certification

==> picture [123 x 164] intentionally omitted <==

==> picture [127 x 164] intentionally omitted <==

==> picture [125 x 162] intentionally omitted <==

• CSR 2019 Certified 2020

• IECQ QC 080000:2017 Certified 2019

• IATF16949:2016 Certified 2018

• OHSAS 18001:2007 Certified 2017

• CNS15506:2011 Certified 2017

• ISO 9001:2015 Certified 2017

• ISO14001:2015 Certified 2017

• ISO 50001:2011 Certified 2016

• AEO Certified 2016

==> picture [127 x 180] intentionally omitted <==

==> picture [120 x 180] intentionally omitted <==

==> picture [121 x 176] intentionally omitted <==

==> picture [127 x 172] intentionally omitted <==

==> picture [131 x 175] intentionally omitted <==

5

Electronic Products Applications

==> picture [633 x 302] intentionally omitted <==

----- Start of picture text -----

Automotive Industry • Motor control units
• Home applications : Air conditioners ,
washing machines , Micro wave
• Traction : High speed train ,subway power Unit
• 5G base station
• Comfort & Control ADAS Application
• ICE Powertrain • Radar system
• xEV e-Power train • Body system
• Parking Brake • Steering & Suspension • Computing ,
• BMS • Sensor Consumer • Mobile device
• DSC-Inverter • Powertrain • Power charger
• Security : smart card
• VCM Spring
----- End of picture text -----

6

Our Future Trend

==> picture [161 x 162] intentionally omitted <==

----- Start of picture text -----

World Market Position
MHT
10.8%
Others CWT
34.8%
9.5%
US$
3,174M Shinko
8.3%
SDI
ASM 7.4%
Pacific
7.4%
----- End of picture text -----

==> picture [175 x 153] intentionally omitted <==

----- Start of picture text -----

Power Market Position
SDI
16.9%
Others
38% Jihlin
US$ 13%
733M
CWT
10.4%
TSP
Enomoto 9.5%
8.2%
----- End of picture text -----

End Market Application

==> picture [358 x 253] intentionally omitted <==

----- Start of picture text -----

100%
8% 7% 6% 6% 5%
90%
80% 31% 31% 30% 29%
34%
70%
60%
50% 30%
29%
32% 34%
31%
40%
30%
20%
34% 36%
31% 30%
27%
10%
0%
2017 2018 2019 2020 1Q21
Automotive Industrial Comsumer Others
----- End of picture text -----

Source : SEMI Industry Research and Statistics, April 2020

7

Our Future Trend

==> picture [690 x 302] intentionally omitted <==

8

Core competence

High precision and reliable plating technique with NiPdAu & Ag finish

==> picture [179 x 166] intentionally omitted <==

==> picture [81 x 63] intentionally omitted <==

Heat Sink- Rivet technology and DG for high heat dispatch

==> picture [73 x 52] intentionally omitted <==

==> picture [66 x 48] intentionally omitted <==

Complicative dual gauge rolling

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

==> picture [73 x 49] intentionally omitted <==

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

==> picture [89 x 91] intentionally omitted <==

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

==> picture [153 x 98] intentionally omitted <==

----- Start of picture text -----

0.08mm
HAIR
0.04mm
VCM
SPRING
----- End of picture text -----

Emerging with Excellent Voice Coil Motor Spring

9

Stationery Products

==> picture [349 x 32] intentionally omitted <==

----- Start of picture text -----

Light Force Stapler
Correction Tape
----- End of picture text -----

==> picture [47 x 21] intentionally omitted <==

==> picture [42 x 21] intentionally omitted <==

Innovative slidearm patent Saving effort up to 50%

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

==> picture [71 x 104] intentionally omitted <==

Innovative ratchet mechanism patent Twist sharpening & 2X speed

Flat clinch patent can save 30％ paper space

FREE FLOW Whiteboard Marker

Ti-coated scissors

==> picture [71 x 130] intentionally omitted <==

==> picture [91 x 113] intentionally omitted <==

• S-Curve design patent • Reducing Cutting 75% force • Titanium-coated blades stay sharp beyond 500,000 cuts

Cartridge refillable Ink Feed system patent Long-lasting tip made in Japan

==> picture [48 x 25] intentionally omitted <==

==> picture [158 x 25] intentionally omitted <==

----- Start of picture text -----

Precision cutter
----- End of picture text -----

==> picture [69 x 112] intentionally omitted <==

Strong auto-lock withstands up to 3kg Unique blade limited slot patent stabilizes blade during cutting

Tape Dispenser

Sound reduction patent Reducing noise by 15 dB

==> picture [196 x 77] intentionally omitted <==

----- Start of picture text -----

50% Less Effort
----- End of picture text -----

10

Our Customers

Leadframe

==> picture [76 x 48] intentionally omitted <==

==> picture [48 x 44] intentionally omitted <==

==> picture [114 x 44] intentionally omitted <==

==> picture [93 x 60] intentionally omitted <==

==> picture [56 x 52] intentionally omitted <==

==> picture [109 x 41] intentionally omitted <==

==> picture [129 x 38] intentionally omitted <==

==> picture [103 x 26] intentionally omitted <==

==> picture [95 x 32] intentionally omitted <==

==> picture [82 x 27] intentionally omitted <==

==> picture [151 x 50] intentionally omitted <==

==> picture [122 x 33] intentionally omitted <==

==> picture [83 x 50] intentionally omitted <==

==> picture [115 x 49] intentionally omitted <==

==> picture [94 x 47] intentionally omitted <==

==> picture [257 x 36] intentionally omitted <==

----- Start of picture text -----

Stationery
----- End of picture text -----

==> picture [97 x 42] intentionally omitted <==

==> picture [84 x 34] intentionally omitted <==

==> picture [99 x 47] intentionally omitted <==

==> picture [118 x 31] intentionally omitted <==

==> picture [66 x 34] intentionally omitted <==

==> picture [81 x 29] intentionally omitted <==

==> picture [70 x 25] intentionally omitted <==

==> picture [129 x 30] intentionally omitted <==

==> picture [91 x 20] intentionally omitted <==

==> picture [123 x 34] intentionally omitted <==

==> picture [96 x 31] intentionally omitted <==

11

Financial Performance

==> picture [286 x 187] intentionally omitted <==

----- Start of picture text -----

EPS & DIVIDEND PAYOUT
----- End of picture text -----

Return On Equity

==> picture [226 x 134] intentionally omitted <==

Revenue and Operating Margin

==> picture [357 x 251] intentionally omitted <==

12

Statements of Comprehensive Income

(In Thousands of dollars)	1Q21	4Q20	1Q20	1Q21 over 4Q20	1Q21 over 1Q20
Net Revenue	2,452,214	2,330,535	1,939,815	5.2%	26.4%
Gross Profit	481,275	422,119	254,240	14.0%	89.3%
Gross Margin	19.6%	18.1%	13.1%	1.5%	6.5%
OperatingExpenses	213,637	188,622	186,025	13.3%	14.8%
OperatingIncome	267,638	233,497	68,215	14.6%	292.3%
Operating Margin	10.9%	10.0%	3.5%	0.9%	7.4%
Non-operatingIncome	(24,993)	(43,518)	4,684	-42.6%	-633.6%
Net Income to Shareholders of the Parent Company	185,031	138,203	48,580	33.9%	280.9%
Net Profit Margin	7.8%	6.2%	3.2%	1.6%	4.6%
EPS (NT$)	1.02	0.76	0.27	34%	277.8%

13

Balance Sheets

(In Thousands of NT$)	2021.3.31	2021.3.31	2020.12.31	2020.12.31	2020.3.31	2020.3.31
	Amount	%	Amount	%	Amount	%
Cash & Marketable Securities	951,606	8	764,179	7	1,092,706	10
Accounts Receivable	1,933,107	17	1,781,048	17	1,515,920	14
Inventories	3,092,900	28	2,804,041	27	2,709,897	26
Net PP&E	4,384,275	39	4,416,029	42	4,453,089	43
Total Assets	11,240,155	100	10,575,718	100	10,571,851	100
Current Liabilities	3,126,926	28	2,567,398	24	2,266,400	21
Long-term Interest-bearingDebts	1,917,837	17	1,996,966	19	2,281,515	22
Total Liabilities	5,044,763	45	4,564,364	43	4,547,915	43
Total Shareholders' Equity	6,195,392	55	6,011,354	57	6,023,936	57

14

Q&A

15

Thank you for listening.

16