TASC — Investor Presentation 2021

Mar 29, 2021

Opto Tech Corporation

2021.03.30

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.

Company profile

Date of founded Dec 21, 1983 Paid in Capital NT 3,786,228,460 元 Main Products Sensor Chips ,LED Chips , System products ( Ⅰ ) No. 8, Innovation Rd I, Hsinchu Science Park Factory site ( Ⅱ ) No. 1, Li-hsin Rd. V, 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

Main Products

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

Year 2017 Year 2018 Year 2019 Year 2020

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55.83%
51.61%
51.15%
44.92%
29.68%
25.96% 22.06%
24.62% 17.47%
21.31%
19.50%
15.83%
4.99%
3.41%
5.49%
4.03% 0.43% 0.31%
0.99%
0.40%
Normal Infrared+Four Elments+InGan Sensor Chips System Products Others
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LED Chips & Sensor Chips Product sales Breakdown by Area

Area	2019	2020
Taiwan	39%	41%
Southeast Asia	15%	14%
Japan	14%	12%
Korea	7 %	6%
Others	25 %	27%

System Products Product sales Breakdown by Area

Area	2019	2020
North America	51%	48%
Taiwan	23%	39%
Northeast Asia	5%	5%
Southeast Asia、Australia	10%	8%
Others	11%	0%

Consolidated Statements of Income

2020	YoY 2019
In NT thousands Amount ％	Amount ％ ％
Operating revenue 5,590,046 100.00%	5,418,004 100.00% 3.18%
Gross profit, net 1,643,558 29.40%	1,638,329 30.23% 0.32%
Operating expenses 954,411 17.07%	898,172 16.57% 6.26%
Operating income 689,147 12.32%	740,157 13.66% -6.89%
Non-operating income and expenses (69,391) -1.24%	46,428 0.85% -249.46%
Income tax expense 44,627 0.79%	181,950 3.35% -75.47%
Net income 575,129 10.28%	604,635 11.15% -4.88%
Basic EPS(NT$) 1.52	1.45

Consolidated Balance Sheets (Important Items)

	2020		2019
(In NT thousands)	AMOUNT	%	AMOUNT	%
Cash and cash equivalents	3,100,161	29%	2,997,465	29%
Accounts receivable	1,680,884	16%	1,480,013	14%
Inventories	1,155,589	11%	1,239,698	12%
Property, plant and equipment- net	2,705,133	26%	2,909,127	28%
Total assets	10,641,427	100%	10,306,144	100%
Short-term loans	230,758	2%	249,640	3%
Accounts payable	1,338,645	13%	1,278,752	12%
Long-term loans	748,555	7%	814,504	8%
Total Liabilities	2,948,101	28%	3,037,828	29%
Capital	3,786,228	35%	3,786,228	37%
Unappropriated earnings	2,361,920	22%	1,841,481	18%
Total equity	7,693,326	72%	7,268,316	71%
Book Value Per Share(dollars)	20.48		19.23

Business Strategies and Trends

Business strategies, market trends, product portfolio

Company Strategies

Wearables Smart phone Healthcare Sensing PD PD (Long WL) APD

Sensor Platform System integration

Special process technology Strategic partnership

Wearables Emitting LED Smart phone Automotive VCSEL Healthcare (Visible/Invisible)

Sensor Platform

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Proximity sensor
Automotive
Smart phone
System
Light Health
integration
sensor care
Automation Wearables
Sensor
platform
Sensing Emitting
Range
Drone Securities AR/VR
finding
MEMS
Smart appliances 3C
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Mobile devices

ToF sensing

• AR/VR

Ambient light sensing

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• Range finding/Depth of field

• Recognition

• Adjust screen brightness

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Heartbeat sensing

Color detection

• Measure heartbeat rate

• Spectrum sensing

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• Adjust screen color

• Measure blood oxygen Proximity sensing

• • • Measure hemoglobin Detect presence of

• • Measure blood glucose nearby objects

Automotive

Driver monitoring

To detect driver’s state

• Infrared

• Image sensing

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Ambient light sensing To automatically turn on headlight

• Light sensing

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Obstacle detection

To detect surrounding objects

• Lidar

Gesture recognition To detect driver’s gesture

• Infrared

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• Light sensing

• Image sensing

• Ultrasonic

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Industrial applications

• Drone • Automation Obstacles detection

• • • Landing detection

• Identify object location Automatic guided vehicle (AGV)

Securities

• Prevent accidents

• • • Secure valuables Obstacles detection Data center Industrial equipment • Data transmission • Quality inspection

Key markets and products

Wearables Smart phone Industrial Automotive PD/APD Customization / high-sensitivity / Flip Chip downsizing PD Healthcare / Proximity / ToF sensor (long WL) LED Healthcare / Industrial / Automotive Visible/SWIR VCSEL Proximity / ToF / 3D Visible/SWIR

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Thank you