TASC — Investor Presentation 2021

Aug 31, 2021

Opto Tech Corporation

2021.08.31

Safe Harbor Statement

This Presentation contains certain statements that are ▌ forward-looking 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 update any forward–looking statements, whether as a result of new information, future events or otherwise.

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future events or otherwise.
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Company profile

Date of founded Dec 21, 1983 Paid in Capital NT 4,386,228,460 元 Main Products Sensor Chips ,LED Chips (Ⅰ) No. 1, Li-hsin Rd. V, Hsinchu Science Park Factory site (Ⅱ) No. 8, Innovation Rd I, Hsinchu Science Park Around 2.0 billion units for LED chips Monthly Capacity Around 3.0 billion units for sensor chips Employees Around 1,000persons

Sensor chips

• Photo diode

• • Photo transistor

• • Zenar diode

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STABILIZE
YOUR
SENSOR
PARTS
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LED Chips

• Visible LED Chips

• • Invisible IR LED

• Chips

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Main products Allocation-by Revenue

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3500000
3000000
2,979,337
2500000 2,655,037
2,588,059
2000000
1,752,505
Sensor Chip
1500000
1,555,212 1,486,955
1,294,846
1000000
782,018
1,134,969 LED Chip
500000
903,146 845,023
295,172
System
0
2018 2019 2020 2021 H1
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LED Chips & Sensor Chips Product sales Breakdown by Area

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0.5
42.52%
42% Taiwan
41%
0.4 38.65%
27%Euro-
American
0.3
27%
24.58%
12%
Southeast
19.52%
17.57%
0.2 Asia(China)
15.24%
16.11%
14.42% 14% 15% Japan
12%
0.1
6.69%
6%
3.87% 4% Korea
0
2018 2019 2020 2021 H1
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System Products Product sales Breakdown by Area

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0.7
62%
0.6
47%
51% North America
0.5 48%
39%
0.4 39% Taiwan
0.3
8%
23%
22%
Southeast Asia 、
0.2
Australia
9% 10% 5% Northeast
0.1 8%
6% Asia
5% 5%
0
2018 2019 2020 2021 H1
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Consolidated Statements of Income

/ 27 YoY In NT thousands Amount ％ Amount ％ ％ Operating revenue 2,541,994 100.00% 2,967,279 100.00% 16.73% Gross profit, net 708,248 27.86% 944,550 31.83% 33.36% Operating expenses 441,223 17.36% 442,924 14.93% 0.39% Operating income 267,025 10.50% 501,626 16.91% 87.86% Income tax expense 60,780 2.39% 98,461 3.32% 62.00% Net income 191,521 7.53% 428,055 14.43% 123.50% Basic EPS(NT$) 2021 Q1-Q2 2020 Q1-Q2 1.16 0.51 9

Consolidated Balance Sheets (Important Items)

/ 27 (In NT thousands) AMOUNT % AMOUNT % Cash and cash equivalents 2,968,119 29% 2,583,941 25% Accounts receivable 1,719,308 16% 1,321,148 12% Inventories 1,377,303 13% 1,118,357 11% Property, plant and equipment- net 2,798,782 27% 2,551,768 24% Total assets 10,454,524 100% 10,611,887 100% Short-term loans 238,085 2% 183,898 2% Accounts payable 1,702,512 17% 1,807,238 17% Long-term loans 776,798 7% 0 0% Total Liabilities 3,415,197 33% 3,142,242 30% Capital 3,786,228 36% 3,786,228 36% Unappropriated earnings 1,599,160 15% 2,275,046 21% Total equity 7,039,327 67% 7,469,645 70% Book Value Per Share(dollars) 18.62 20.23 2021 Q2 2020 Q2 10

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Business Strategies and Trends

Business strategies, market trends, product portfolio

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Operations management

Unit: NT$ Millions

	2020H1	2021H1	Difference
Operating revenue 2,542		2,967	425
Grossprofit 708		945	237
Gross margin 28%		32%	4%
Netprofit after tax 192		428	236
Netprofit margin 8%		14%	6%
EPS 0.51		1.16	0.65

Business model

Re-organization

• Cancel consignment • Reduce operating cost hub and rebate • Improve production efficiency

• 2020Q4 2021Q1 2021Q2 2021Q3 Adjust pricing Product Mix •

• strategies Focus on competitive products

• Focus on competitive products  General PTR High performance PTR (SoC)

Directions and Strategies

Special process technology Strategic partnership

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Industrial applications
Wearables
Smart phone
Healthcare
Wearables
Sensing Emitting
PTR(coupler device) LED Smart phone
InGaAs PD(long WL) VCSEL Automotive
APD (Visible/Infrared) Healthcare
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Coupler – a combination of emitting and sensing devices

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Isolation
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Features

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電源輸入
光
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Electricity Light
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Light Electricity
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• Electrical isolation

• Unidirectional transmission

• Anti-noise

• Anti-interference

• Excellent impact resistance

• Long lifetime

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Global market for photo relays and photocouplers

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US$M
20%
2,000
1786.5
1,800
23%
1,600 1491.4
1,400
16%
1,200
1066.1
1,000
869.5
800 720.4
621.9
600
400
200
0
GENERAL PURPOSE HIGH PERFORMANCE TOTAL
Source: Omdia
2021年 2025年
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Photocoupler sensing devices

High performance type

High performance PTR

• High speed

General type

• High voltage

• Customization

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Capital expenditures

Establishment of new model equipment

• New

• products

• High performance PTR

• VCSEL/LED (long Wavelength)

• PD (long Wavelength)

• New process requirements

Capacity expansion

• Remove production bottlenecks to

• meet strong customer requirements

Quality and efficiency

• CIM upgrade

• Equipment automation (New Smart Technology)

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Optotech Investor Conference New Smart Technology Briefing

AI Solution Provider of Optical and Vision

By Stone Shih 2021.08.31

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Focusing on the field of optical imaging for years, mastering technical advantages, and specializing in the advanced optical imaging inspection market.

High-end AI recognition technology as core technology and develops the optical inspection systems with higher technical thresholds.

New Smart Technology High-end AI solution provider of optical and vision

Camera Module Image Testing Solution

Semiconductor AI Defect Inspection Solution

3D Sensing Module Optical Testing Solution

Lens AOI Defect Inspection Solution

 Yr. 2021: Revenue Increased and profited  Yr. 2022: Continually growing

 Differences between Traditional AOI and AI

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AOI (Machine Learning) AI (Deep Learning)
Characteristic
Define and counts Identify and Grouping
Defects
Barcode
Reading Defect Inspection with noise
Defect
Inspection
irregular OCR
OCR
Measurement
SMT Verify
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 NST AI Algorithm of Vision Recognition

選擇訓練資料 2 AI模型訓練

資料驗證

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AI
Model_ Result1
1
AI
Model_ Result2
2
AI
AVI PASS images Model_ Result3
3
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AI Algorithm of Vision Recognition

Training Data input 2 AI model Training

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Data Verification
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AVI PASS images
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AI
Result
Model_
1
1
AI
Result
Model_
2
2
AI
Result
Model_ 3
3
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Applications

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FPCB inspection Lens module inspection VR/AR inspection
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Sensor inspection Wafer inspection
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Case Study- AI software tool for efficiency optimized

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NST AI
AI Inspection Machine Optimized
AI
AI
Lot Analysis Process Analysis
AI
NST Inspection
Analysis System
Equipment Client
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Case Study- AI algorithm for yield improvement

Efficiency Enhanced

Intelligent Manufactory- Collect the data from equipment thru EDC, doing further yield analysis and conduct improvement for enhance efficiency, improve quality and reduce cost.

 Original Flow

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Epi. De Film Etch Dice Prob AOI Sort Pack.
v. . . .
Collect the data from equipment and generating
Upgraded Flow Data analysis report for figure out the potentially risk in
order to enhance yield rate and efficiency.
Epi. De Film Etch Dice Prob AOI Ima Sort Pack
v. . . . . .
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 Upgraded Flow

AI image review for reducing overkill ratio and enhance production yield.

Upgrading from Automation plant to Intelligent Manufactory

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Human
Brain
Deep learning _Artificial Intelligent
Human High Quality
Eyes Industrial Robot、 Bionic Intelligent
robot 、
Unmanned Logistics、
Human Unmanned factory … High Yield
Power
IOT、3D Technology、Big Data、
Industrial Robot、Cloud
High Efficiency
computing…
Auto-Assembly、Auto-P&P、
Auto-Production Tools、
Robots、
CIM/EAP、ERP、MES… Automation
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The goal to be accomplished by NST

The highest quality requirement by NiChia and Optotech is the target to achieve and produce the best products in the world accordingly.

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Short Term
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Key items Whole line 100% AI inspection AI defect re-check

Middle Term Whole line automated production EAP system integration

Long Term

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AI intelligent
production line
AI data analysis
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Major approaches

• Enhance goods

• quality by using AI technology to lower the overkill ration.

• Lower the man-

• power ration by fully auto inspection machine.

• Further reduction of

• labor by implementing fully auto production line.  Reduce production cost by integrating various production tools.

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 Increasing yield rate
by analyzing the
production date thru
AI algorithm.
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• Results the good

• performance of factory by calculating the BIG data from machines.

Thank you