THINKING — Interim / Quarterly Report 2022

Dec 28, 2022

==> picture [289 x 405] intentionally omitted <==

==> picture [41 x 52] intentionally omitted <==

THINKING Legal Person Briefing Session 2022Q3

==> picture [70 x 77] intentionally omitted <==

December 2022, English Version

==> picture [96 x 69] intentionally omitted <==

==> picture [58 x 37] intentionally omitted <==

Financial Status

==> picture [53 x 36] intentionally omitted <==

Markets and Customers

==> picture [53 x 36] intentionally omitted <==

Strategy for Growth

Index

==> picture [57 x 37] intentionally omitted <==

Company Introduction

==> picture [51 x 36] intentionally omitted <==

Competitive Strength

==> picture [138 x 104] intentionally omitted <==

2

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Operation Overview: Yearly Consolidated Income Statement

==> picture [586 x 276] intentionally omitted <==

3

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Operation Overview: Quarterly Consolidated Income Statement

==> picture [683 x 265] intentionally omitted <==

4

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Operation Overview: Consolidated Balance Sheets

==> picture [579 x 296] intentionally omitted <==

5

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

==> picture [58 x 37] intentionally omitted <==

Financial Status

==> picture [53 x 36] intentionally omitted <==

Markets and Customers

==> picture [53 x 36] intentionally omitted <==

Strategy for Growth

Index

==> picture [57 x 37] intentionally omitted <==

Company Introduction

==> picture [51 x 36] intentionally omitted <==

Competitive Strength

==> picture [138 x 104] intentionally omitted <==

6

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Corporate Mission

Mission Statement: Contribute to safety and operation efficiency of electronics

We “think” and “are keen” to offer customers “service.”

==> picture [171 x 73] intentionally omitted <==

==> picture [143 x 77] intentionally omitted <==

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

T Think
K Keen
S Service
----- End of picture text -----

7

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Company Introduction

Established in 1979 7 factories and 4500 employees 2008-2022 Net Revenue:

USD 267.95 USD 267.95

==> picture [494 x 199] intentionally omitted <==

• Using an exchange rate of 1 USD =27.99 NTD

8

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Milestone

==> picture [720 x 281] intentionally omitted <==

9

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

THINKING All Around the World

Sales Office Taiwan USA Asia China 2 1 2 5

Distributor The Americas Europe Asia 12 14 16

10

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Factories of THINKING

==> picture [707 x 296] intentionally omitted <==

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

Yichang Factory Changzhou Factory Yilan Factory
Kaohsiung 1 [st] Factory
Major Product Major Product Major Product
Major Product
JiangXi Factory
Kaohsiung 2 [nd] Factory
Dongguan Factory
Front-End
Major Product
Major Product
----- End of picture text -----

11

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Total Solution for Customers

==> picture [720 x 298] intentionally omitted <==

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

Over-Temperature
Protection
NTC Thermistor PTC Thermistor Temperature Sensor
Over-Current
Protection
NTC ICL PTC Thermistor Polymer PTC Thermistor
Over-Voltage
Protection
Varistor Gas Discharge ESD TVS Diode Spark Gap Thyristor Surge
Tube Protection Protector Suppressor
----- End of picture text -----

==> picture [720 x 9] intentionally omitted <==

12

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

==> picture [58 x 37] intentionally omitted <==

Financial Status

==> picture [53 x 36] intentionally omitted <==

Markets and Customers

==> picture [53 x 36] intentionally omitted <==

Strategy for Growth

Index

==> picture [57 x 37] intentionally omitted <==

Company Introduction

==> picture [51 x 36] intentionally omitted <==

Competitive Strength

==> picture [138 x 104] intentionally omitted <==

13

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Major Markets

Information and Communication Technology

==> picture [473 x 260] intentionally omitted <==

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

Telecom Power Supply
Consumer
Electronics Computer
Home Appliances and Lighting
Home Appliances Lighting
----- End of picture text -----

Automotive and Industrial

==> picture [209 x 265] intentionally omitted <==

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

Automotive Industrial
(12%)
Medical and Others
Other
Medical applications
Distributor
----- End of picture text -----

==> picture [125 x 9] intentionally omitted <==

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

THINKING ELECTRONICS
----- End of picture text -----

14

==> picture [96 x 69] intentionally omitted <==

Market Positions of THINKING Products

THINKING NTC Thermistor

THINKING THINKING Disc Varistor Ceramic PTC Thermistor

==> picture [200 x 200] intentionally omitted <==

Note:

==> picture [194 x 197] intentionally omitted <==

==> picture [196 x 217] intentionally omitted <==

• 1.Data source: Circuit Protection Components: World Markets, Technologies & Opportunities: 2019-2024, Paumanok Publication

• 2.Fiscal year 2020 calculation of THINKING NTC thermistor and disc varistor ended in December 31, 2020.

15

THINKING ELECTRONICS 15

==> picture [96 x 69] intentionally omitted <==

==> picture [58 x 37] intentionally omitted <==

Financial Status

==> picture [53 x 36] intentionally omitted <==

Markets and Customers

==> picture [53 x 36] intentionally omitted <==

Strategy for Growth

Index

==> picture [57 x 37] intentionally omitted <==

Company Introduction

==> picture [240 x 38] intentionally omitted <==

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

Competitive Strength
----- End of picture text -----

==> picture [138 x 104] intentionally omitted <==

16

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Core Technology

SMD type product ● ● Laminating & stacking Lead type product ● ● Printing Sensor assembly ● ● Sintering ● Surface finishing ● Material design ● Packaging ● Material processing ● Measurement ● Automation

Material Development Our know-how of key raw material and ceramic recipes make our products competitive in the market. Product Design Our simulation technology ensures our precise product design. Back-end Processing Automated production ensures our stable product quality.

17

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Agency Approval of Product

NTC Thermistor Varistor PTC Thermistor Polymer PTC Thermistor Gas Discharge Tube NTC Temperature Sensor TVS Diode

Note: is for UL + cUL

18

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

UL and TUV Certified Laboratories

Laboratories of THINKING passed the CTDP (Client Test Data Program) of UL and witness testing qualification of TUV.

==> picture [198 x 115] intentionally omitted <==

==> picture [215 x 115] intentionally omitted <==

==> picture [176 x 100] intentionally omitted <==

==> picture [177 x 100] intentionally omitted <==

==> picture [177 x 100] intentionally omitted <==

==> picture [176 x 100] intentionally omitted <==

19

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Technical Support

THINKING AE team provides comprehensive technical support.

Technical Consultation: Discussion of technical problems with customers

Product Selection Suggestion: Selecting products in accordance with customer’s needs

Circuit Design Assistance: Discussion of circuit design for problems that customers encounter Application Example: Application experience sharing with customers

20

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

==> picture [58 x 37] intentionally omitted <==

Financial Status

==> picture [53 x 36] intentionally omitted <==

Markets and Customers

==> picture [242 x 36] intentionally omitted <==

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

Strategy for Growth
----- End of picture text -----

Index

==> picture [57 x 37] intentionally omitted <==

Company Introduction

==> picture [50 x 36] intentionally omitted <==

Competitive Strength

==> picture [138 x 104] intentionally omitted <==

21

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Application Focus

2022 Sales by Applications

2025 Sales by Applications

==> picture [261 x 257] intentionally omitted <==

==> picture [423 x 216] intentionally omitted <==

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

Energy Storage EV Car
& Solar System
----- End of picture text -----

22

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

EV Applications

==> picture [679 x 300] intentionally omitted <==

23

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Application Focus Communications: Low Earth Orbit Satellite

2021 Global Satellite Industry Revenue

==> picture [229 x 271] intentionally omitted <==

==> picture [59 x 39] intentionally omitted <==

Source: Satellite Industry Association

==> picture [250 x 102] intentionally omitted <==

• 1696 satellites was launched in 2021, and 1664 of them are LEO satellites. EuroConsult estimates that 1700 satellites will be launched per year by 2030.

• Revenue of satellite industry is USD 279 billion, accounting for 72% of the world’s space business.

• Ground equipment helps LEO receive signal seamlessly, and its 2021 revenue is USD 142 billion. It needs antennas, PCB, power supply, etc, and that offers Taiwan manufacturers business opportunities.

• For lifetime, LEO is 4-5 years, and GEO is 15 years. In other words, LEO has high component demand.

24

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Application Focus Communications: Customers of Low Earth Orbit Satellite

==> picture [221 x 143] intentionally omitted <==

Subscribers of Starlink satellite internet from SpaceX is around 250,000 in March, and it increases to 400,000 in May, which is a 60% growth.

==> picture [314 x 225] intentionally omitted <==

==> picture [148 x 64] intentionally omitted <==

==> picture [167 x 103] intentionally omitted <==

==> picture [63 x 61] intentionally omitted <==

==> picture [125 x 58] intentionally omitted <==

SpaceX will deploy 30,000 satellites, and Amazon told FCC (Federal Communications Commission) that the number of satellites is a little much.

25

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Products Development

2022 Sales by Products

==> picture [290 x 225] intentionally omitted <==

2025 Sales by Products

==> picture [268 x 270] intentionally omitted <==

26

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Products Development

 Comparison of PPTC and CPTC

==> picture [657 x 217] intentionally omitted <==

For PPTC, its faster response time and lower power consumption meet the market trend of energy saving. It also helps customers reduce cost and increase their design flexibility. Therefore, THINKING plans to promote PPTC more.

27

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Products Development

THINKING PPTC offers over-current protection, and it is recommended for the following applications.

==> picture [141 x 107] intentionally omitted <==

PCB

==> picture [139 x 107] intentionally omitted <==

Portable Electronics

==> picture [139 x 107] intentionally omitted <==

Notebook Computer

==> picture [140 x 107] intentionally omitted <==

DC Power Module

==> picture [183 x 105] intentionally omitted <==

USB Port

Light Bulb

Set Top Box

28

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Products Development

 Comparison of TVS Diode and Other Over-voltage Protection Components

==> picture [648 x 211] intentionally omitted <==

TVS diode provides better over-voltage protection because of its accurate varistor tolerance and low residual voltage. Its low capacitance also makes it a recommended ESD suppressor. Consequently, THINKING promotes TVS diodes for over-voltage protection.

29

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Products Development

THINKING TVS diode offers either over-voltage protection or ESD protection, and it is recommended for the following applications.

==> picture [141 x 109] intentionally omitted <==

Automotive Electronics

5G Base Station

Notebook Computer

Set Top Box

Mobile Phone

30

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Products Development Applications of Pressure Sensors

Major Applications of Pressure Sensors

• Automotive market:

2021 market revenue of automotive market is USD 2 billion (around 26.9% of 2021 market share), and it is projected to reach USD 4.9 billion in 2030.

 Industrial market: 2021 market revenue of industrial market is USD 1.4 billion, and it is projected to reach USD 4.1 billion in 2030.

==> picture [308 x 202] intentionally omitted <==

31

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Growth Strategy – Regional Market

2022 Regional Market

2025 Regional Market

==> picture [216 x 262] intentionally omitted <==

==> picture [261 x 256] intentionally omitted <==

32

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

THINKING ASEAN Focus Segments

==> picture [682 x 296] intentionally omitted <==

33

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Continuous Expansion Plan

Zhongshan Factory

Kaohsiung Factory

Southern CN: IT & Home appliance, 2024

TW: Automotive: 2023 H2

34

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

Vision

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

Contribution to Human Life in

Medical

Automotive

Telecom

Industrial

35

THINKING ELECTRONICS

==> picture [96 x 69] intentionally omitted <==

THANK YOU!

==> picture [163 x 162] intentionally omitted <==

THINKING

THINKING ELECTRONICS