THINKING — Investor Presentation 2020

Jun 5, 2020

Disclaimer

This presentation is prepared according to information available at the time the presentation was made. Financial or other related information may contain forward-looking statements about the company and its subsidiaries. The information is subject to significant risks and uncertainties, and actual results may differ materially from those contained in any forward-looking statements.

The presentation is exclusively for the purpose of providing information, and not for the purpose of investment advice. The company does not undertake obligations of accuracy and completeness of the information and any losses caused by using the information of the presentation.

Index

Company Introduction

Competitive
Strength

Major
Markets

Operation
Overview

Company Introduction

 Established in 1979 as a protective component manufacturer

 Owns 7 factories and 3800 employees.

  2019 Revenue: NTD 5814 million

THINKING Factories

Kaohsiung 2nd Factory
Taiwan

Kaohsiung 1st Factory

Yilan Factory

Changzhou Factory
East
China

Jingdezhen Factory

Dongguan Factory
South
China

Yichang Factory

Central
China

THINKING Products

Over-Voltage
Protection
General
Protection
Primary
Protection
ESD
Protection
Spark Gap
Protector
TVS Diode

Over-Current
Protection
Ceramic PTC
Thermistor
Polymer PTC
Thermistor
NTC ICL

Over-Temperature
Protection
NTC
Thermistor
Ceramic PTC
Thermistor
Temperature
Sensor

Milestone

Preparation of establishing
Kaohsiung 3rd Factory began
2019
Spark Gap Protector business began
2018
2016
Kaohsiung 2nd Factory was established
TVS Diode business began
2014
Jingdezhen Factory was established
2010
Gas Discharge Tube business began
2008
ESD Protector business began
2007
Yichang Factory was established
2002
Polymer PTC Thermistor business began
2000
THINKING went public
Varistor and Ceramic PTC Thermistor businesses began
1997
Yilan Factory was established
Changzhou & Dongguan Factories were established
1996
1989
NTC Thermistor business began
1979
THINKING was founded with wire harness business
Kaohsiung Factory was established

Index

Company Introduction

Competitive
Strength

Major
Markets

Operation
Overview

Major Markets

Information
and Communication Technology

Consumer
Electronics

Telecom

Power Supply

Computer
46%

Lighting

Home Appliances
Home Appliances
and
Lighting
21%

Industrial

Automotive
and
Industrial

Automotive
17%

Medical

Medical
and
Others

Distributor

Other
applications
16%

Major Markets

Information
and Communication Technology

Consumer
Electronics

Telecom

Power Supply

Computer
46%

Lighting

Home Appliances
Home Appliances
and
Lighting
21%

Industrial

Automotive
and
Industrial

Automotive
17%

Medical

Medical
and
Others

Distributor

Other
applications
16%

Index

Company Introduction

Competitive
Strength

Major
Markets

Operation
Overview

Core Technology

  THINKING controls from material to production to ensure product quality.

Material Development
● Material design ● Material processing
Front-end Processing
---
● Laminating & stacking ● Printing ● Sintering ● Surface finishing
Product Design
---
● SMD type product design ● Lead type product design ● Sensor assembly
Back-end Processing
---
● Packaging & assembly ● Measurement ● Automation

UL and TUV Certified Laboratory

Reliability laboratories of THINKING passed the CTDP (Client Test Data Program) of UL and witness testing qualification of TUV. Therefore, THINKING can offer product verification services.

R&D Capability

THINKING lab is awarded by provincial governments

High and New Technology Enterprise
Engineering Technology Research Center
Yearly Total of Granted Patents

Technical Support

THINKING AE team provides comprehensive technical support
Circuit Design Assistance
Technical Consultation

Application Example
Product Selection Suggestion
Product Test Service

Index

Company Introduction

Competitive
Strength

Major
Markets

Operation
Overview

Operation Overview: ? Yearly Consolidated Income Statement
| Unit: Thousand NTD | | | | | |
| --- | --- | --- | --- | --- | --- |
| Item | 2019Q1 | 2019Q4 | 2020Q1 | QoQ | YoY |
| Net sales | 1,404,060 | 1,522,209 | 1,095,742 | -28.0% | -22.0% |
| Gross profit | 549,327 | 635,191 | 424,421 | -33.2% | -22.7% |
| Gross profit margin | 39.1% | 41.7% | 38.7% | -3.0% | -0.4% |
| Operating expenses | 208,962 | 238,442 | 182,607 | -23.4% | -12.6% |
| Operating net profit | 340,365 | 396,749 | 241,814 | -39.1% | -29.0% |
| Operating profit ratio | 24.2% | 26.1% | 22.1% | -4.0% | -2.2% |
| Non-operating income and expenses | -1,820 | -9,616 | 25,921 | -369.6% | -1524.2% |
| Net income | 253,454 | 286,288 | 196,819 | -31.3% | -22.3% |
| Earning per share (NTD) | 1.95 | 2.25 | 1.56 | -0.69 | -0.39 |

Notes:

Operation Overview:
Consolidated Balance Sheets
| Unit: Thousand NTD | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Item | 2019.3.31 | 2019.12.31 | 2020.3.31 | % | QoQ | YoY |
| Cash and cash equivalent | 1,887,674 | 1,774,594 | 1,903,159 | 21% | 7.2% | 0.8% |
| Account receivable | 1,969,186 | 2,046,553 | 1,728,076 | 19% | -15.6% | -12.2% |
| Inventories | 933,911 | 822,298 | 811,597 | 9% | -1.3% | -13.1% |
| Current assets | 5,941,783 | 6,067,809 | 6,196,992 | 70% | 2.1% | 4.3% |
| Fixed assets | 2,134,590 | 2,090,206 | 2,092,029 | 24% | 0.1% | -2.0% |
| Non-current assets | 2,690,839 | 2,682,706 | 2,691,138 | 30% | 0.3% | 0.0% |
| Total assets | 8,632,622 | 8,750,515 | 8,888,130 | 100% | 1.6% | 3.0% |
| Account payable | 637,352 | 533,753 | 466,938 | 5% | -12.5% | -26.7% |
| Other account payable | 391,940 | 427,390 | 355,587 | 4% | -16.8% | -9.3% |
| Current liabilities | 1,313,230 | 1,254,736 | 1,171,906 | 13% | -6.6% | -10.8% |
| Non-current liabilities | 920,635 | 980,796 | 1,022,499 | 12% | 4.3% | 11.1% |
| Total liabilities | 2,233,865 | 2,235,532 | 2,194,405 | 25% | -1.8% | -1.8% |
| Total equity | 6,398,757 | 6,514,983 | 6,693,725 | 75% | 2.7% | 4.6% |

Notes:

Operation Overview: ?Analysis of Financial Ratios

Item		2019.3.31	2019.12.31	2020.3.31	QoQ	YoY
Debt Ratio		25.87%	25.54%	24.68%	-0.86%	-1.19%
Current Ratio		452.45%	483.59%	528.79%	45.20%	76.34%
Account receivable	Turnover ratio (times)	2.77	2.82	2.32	-0.50	-0.45
	Average collection days	131.76	129.43	157.32	27.89	25.56
Inventories	Turnover ratio (times)	3.60	3.89	3.28	-0.61	-0.32
	Average inventory turnover days	101.38	93.83	111.28	17.45	9.90
Account payable	Turnover ratio (times)	5.37	5.94	5.36	-0.58	-0.01
	Average payables turnover days	67.97	61.45	68.10	6.65	0.13

Operation Overview:?Revenue and EPS of Recent Years

Q&A

Thank You！

THANK YOU!
12F, No.93, Dashun 1st Rd., Zuoying  Dist., Kaohsiung City, Taiwan
Tel: (07)5577660
Fax: (07)5570560
Email: thinking@thinking.com.tw
Official Website: www.thinking.com.tw