SYNCMOLD — Investor Presentation 2022

Jun 10, 2022

International Professional Excellent

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Syncmold Enterprise Corp

2022/6

Syncmold Introduction

Syncmold established in 1979 (ticker:1582)

❖ Chairman: Chen Chiu Lang

❖ Employee: 5,500 (2022/3)

• ❖ 1Q22 Share Capital: NT$1.24B

❖ 1Q22 Total Assets: NT$12.4B

• ❖ 1Q22 Book Value per Share: NT$47.8

❖ Major products:

• ❖ Electronic component application (Monitor/TV/AIO hinge & stand)

• ❖ Plastic moldling & Injection

• ❖ Aluminum and magnesium die-casting: Gatetech

• ❖ Precise hinge & stamping: Leohab

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Monitor Industry Forecast

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Shipments (million)
146
142
139 140
128
127
125
124
2016 2017 2018 2019 2020 2021 2022(F) 2023(F)
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Source: Wits View, 4Q2021

Gaming Monitor Industry Forecast

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Gaming Monitor Shipments (Million)
26
23
11
18
9
(42%)
(39%)
10
(56%)
15
14
8 (61%) (58%)
(44%)
2020 2021 2022( E )
Flat Curved
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Source: TrendForce Q12022

Revenue Breakdown

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1Q2021 1Q2022
6%
7%
13%
14%
8%
12%
62% 7%
66%
5%
Monitor AIO TV Subsidiaries Others
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Revenue Breakdown

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Y2020 Y2021
8%
8% [7%]
14%
11%
7%
8%
66% 65%
6%
Monitor AIO TV Subsidiaries Others
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	Market Overview by Products	Market Overview by Products	Market Overview by Products	Market Overview by Products	Market Overview by Products
		Monitor	Gaming Monitor	AIO	TV
2021 Global shipments(M)		146	23	14	210
2021 Syncmold’s market share(%)		15~20%	≈10%	10~15%	5%↓
2022 Global shipments forecast(M)		142	26	13	215
Growth rate(%)		-3%	13%	-7%	2%

Source: Wits View, 4Q2021

Manufacturing Sites

Suzhou: Qisda、Pegatron、Compal、Quanta Kunshan: self-made Gatetech-Suzhou(73%): die-casting Leohab-Suzhou(70%): stamping Chongqing: Foxconn、Quanta、Inventec

Fuzhou: TPV、L&T Fujian: TPV、L&T、self-made Fuqing: self-made DongGuang: self-made 、Funai Zhongshan: Wistron、SONY

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Leohab-Thailand(70%)：stamping
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Taoyuan: assembly、automation Gatetech-Taoyuan(73%): die-casting Leohab-Taichung(70%): stamping Highgrade(38%): TV wall bracket, medical cart Vietnam：Qisda、Wistron

Group Application Scope

Leohab ／Stamping

Gatetech / Die-Casting

• Precise 360° small hinge

• SSD

• Rugged NB

• thermal products

• Automotive parts

• keyboard brackets

Vertical integration to enhance components supply Horizontal cooperation to develop new applications

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• Syncmold

• • Monitor Stand Computer, Gaming, AIO, TV

Quarterly Revenue and EPS

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Revenue(NT$B)EPS(NT$)
Revenue EPS
2.8 2.8
2.6
2.5
2.3
1.02
0.60
0.25
0.20 0.21
1Q21 2Q21 3Q21 4Q21 1Q22
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Note: EPS is calculated by net income/quarter-end capital

Deliver Higher ROE

2017-2021 Avg. pre tax ROE( income before tax/equity)

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20 %
18%
14%
12%
Syncmold Hinge Electronics component TWSE
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Note: given only pre-tax profit data disclosed from TWSE, we use pre tax ROE to be benchmark
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Competitive Advantage

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Business Advantage Strong management ability

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Patent advantage

Obtained more than 140 patents in Y2021, ranked 55th among the top 100 patent applicants in Taiwan, with 839 accumulated patents.

Stable relationship with customers Long-term cooperation with brand clients, leading and formulating industrial specifications, and providing customized products and stable supply.

Strong management ability Deliver higher ROE than peers as well as sufficient and stable free cash flow.

Strategy and Prospect

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Long-term Goal Expand the group operation scale

• Better product mix

• Diversified manufacturing sites to reduce production risks in single area

• Subsidiaries’ operation bring synergy to the group

Short-term Goal Integrate the group resources, adjust capacity allocation, and improve profitability

• Set up strategic marketing center to integrate group product resources

• Add overseas R&D center to improve product development efficiency

• Set up strategic procurement center to effectively control the cost structure

• • Adjust group capacity allocation, and set up the Vietnam factory

ESG Implementation Results

❖ Environment

• (1) Obtained ISO 14001, ISO 50001, IECQ QC080000 certification.

• (2) Carbon emissions have been reduced year by year, and expect to reduce carbon emissions by 1% every year in the future.

	2018	2019	2020
GHG Emissions (KG)	200,727	192,476	171,830
GHG Emission Intensity (KG/employee)	1,103	944	667

(3) Established a corporate governance team to promote sustainable development, and to implement Carbon Footprint Verification in 2023, which is ahead of the authorities requirement.

❖ Social

• (1) Average salary higher than electronics manufacturing industry peers.

• (2) Made donations to set up a book stack in rural elementary school for social welfare.

❖ Governance

• (1) Had set up a "suggestion box" as a channel for the grievance mechanism and reporting procedures.

• (2) Established Audit and Remuneration Committee to strengthen corporate governance.

• (3) BOD include one female director, and the proportion of independent directors is 57%.

• (4) Prepared an ESG summary report for investors to understand the company's ESG implementation.

ESG: https://reurl.cc/3NmxYX CSR: https://reurl.cc/5oa1OV

Syncmold Enterprise Corp

Q & A

Thank You for Listening

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