TASC — Interim / Quarterly Report 2020

Oct 7, 2020

Opto Tech Corporation 2020.10.07

Safe Harbor Statement

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• This Presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. • Except as required by law, we undertake no obligation to whether as a update any forward–looking statements, result of new information, future events or otherwise.

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Company profile

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Date of founded Dec 21, 1983

Paid in Capital NT 3,786,228,460元

Main Products LED Chips , Sensor Chips , System products

Factory site (Ⅰ) No. 8, Innovation Rd I, Hsinchu Science Park (Ⅱ) No. 1, Li-hsin Rd. V, Hsinchu Science Park Monthly Capacity Around 2.0 billion units for LED chips Around 3.0 billion units for sensor chips Employees Around 1,190 persons

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Main Products

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LED Chips
・Visible LED Chips
・Invisible IR LED Chips
Sensor chips
・Photo diode
・Photo transistor
・Zenar diode
System products
・LED video board
・LED lighting
・Automotive lighting
・LED traffic lighting
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Main products Allocation-by Revenue

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Year 2017 Year 2018 Year 2019 Year 2020 H1
51.61%
51.15% 50.95%
44.92%
29.68%
25.96% 22.06%
17.47%
23.73%
21.31% 20.95%
19.50%
4.99%
5.49%
4.03%4.00% 0.43% 0.37%
0.99%
0.40%
Normal Infrared+Four Sensor Chips System Products Others
Elments+InGan
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LED Chips & Sensor Chips Product sales Breakdown by Area

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Area 2019 2020 H1
Taiwan 39% 35%
Southeast Asia 15% 17%
Japan 14% 14%
Korea 7 % 6%
Others 25 % 28%
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System Products Product sales Breakdown by Area

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Area	2019	2020 H1
North America	51%	53%
Taiwan	23%	40%
Northeast Asia	5%	2%
Southeast Asia、Australia	10%	5%
Others	11%	0%

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Consolidated Statements of Income

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	2020 Q1-Q2	2020 Q1-Q2	2019 Q1-Q2	2019 Q1-Q2	YoY
In NT thousands	Amount	％	Amount	％	％
Operating revenue	2,367,309	100.00%	2,580,220	100.00%	-8.25%
Gross profit, net	667,829	28.21%	761,347	29.51%	-12.28%
Operating expenses	433,139	18.30%	442,913	17.17%	-2.21%
Operating income	234,690	9.91%	318,434	12.34%	-26.30%
Non-operating
income and	(14,724)	-0.62%	40,401	1.57%	-136.44%
expenses
Income tax expense	54,514	2.30%	97,146	3.77%	-43.88%
Net income	165,452	6.99%	261,689	10.14%	-36.78%
Basic EPS(NT$)	0.44		0.59

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Consolidated Balance Sheets (Important Items)

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	2020 Q2 2019 Q2
(In NT thousands)	AMOUNT % AMOUNT %
Cash and cash equivalents	2,968,119 29% 3,200,865 30%
Accounts receivable	1,545,561 15% 1,613,054 15%
Inventories	1,511,569 15% 1,256,021 12%
Property, plant and equipment- net	2,798,782 27% 2,968,820 28%
Total assets	10,415,178 100% 10,732,110 100%
Short-term loans	238,085 2% 217,579 2%
Accounts payable	1,694,429 16% 1,520,906 14%
Long-term loans	776,798 8% 710,428 7%
Total Liabilities	3,401,920 33% 3,171,551 30%
Capital Unappropriated earnings	3,786,228 36% 4,454,386 42% 1,573,091 15% 1,502,689 14%
Total equity	7,013,258 67% 7,560,559 70%
~~Book Value Per~~ Share(dollars)	18.55 17.00

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Business Strategies and Trends Business strategies, market trends, product portfolio.

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Business Strategies

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Business strategies

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Connect with Develop new renowned corporation technologies and and create strategic process platforms partnership Customer Process platform application Optoelectronic Semiconductor Cost and Team work efficiency Optimize organization Enhance production structure and technologies and carry out team work improve yield and performance efficiency

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Market trends

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Application markets

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Heart rate measurement Infrared security system
Wearable
Smart life
Blood oxygen meter Smart home appliance
device
Environmental detection
Special lighting
Smart
Proximity sensor Automotive Electric vehicle(EV) charger
Ambient light sensor phone Tail light, atmosphere light
Driver monitoring system(DMS)
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Wearable devices market trend

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Smart watch market trend

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Wireless hearables market trend

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Smart phone market trend

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VCSEL market trend

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Electric Vehicle (EV) market trend

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