THINKING — Investor Presentation 2023

Dec 13, 2023

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THINKING

Investor Conference

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2023.12

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Financial Status

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Markets and Customers

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Target Markets

Index

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Company Introduction

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Competitive Strength

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Operation Overview: Quarterly Consolidated Income Statement

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Operation Overview: Yearly Consolidated Income Statement

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Operation Overview: Analysis of Operating Expenses

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Gross Margin Improvement Strategy

Internal Improvements:

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SMD
OTHER
16%
20%
SCK
15%
SENSOR
24%
TVR
25%
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1. Implementing strategic transfers of production bases for mature products among group companies to regions with a competitive advantage in labor and electricity costs, aiming to reduce overall production costs. E.g., SCK+TVR revenue accounts for 40%.

2. Continuously optimizing the yield of SMD surface-mount products and introducing foreign labor to achieve a reduction in labor costs.

3. Lowering overall production costs for SENSOR products, which are highly customized, through material system integration, process automation, and relocation to regions with lower labor costs.

External Expansion:

1. Sustaining growth in the export market and targeting an increase in revenue share from exports to 40% from the current 25%.

2. Enhancing capacity utilization to effectively reduce depreciation and fixed amortization costs.

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Financial Status

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Markets and Customers

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Target Markets

Index

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Company Introduction

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Competitive Strength

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Corporate Mission

Mission Statement: Contribute to safety and operation efficiency of electronics

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

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T Think
K Keen
S Service
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Company Introduction

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

USD 267.95 USD 267.95

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• Using an exchange rate of 1 USD =27.99 NTD

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Milestone

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THINKING All Around the World

Sales Office Taiwan USA Asia China 2 2 5 5

Distributor The Americas Europe Asia 12 14 16

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Factories of THINKING

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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
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THINKING Products

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Financial Status

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Markets and Customers

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Target Markets

Index

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Company Introduction

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Competitive Strength

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Major Markets

Information and Communication Technology

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Telecom Power Supply
Consumer
Electronics Computer
Home Appliances and Lighting
Home Appliances Lighting
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Automotive and Industrial

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Automotive Industrial
(12%)
Medical and Others
Other
Medical applications
Distributor
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THINKING ELECTRONICS
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Market Positions of THINKING Products

NTC Thermistor

Disc Varistor

Ceramic PTC Thermistor

Note:

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

• 2.Fiscal year 2021 calculation of THINKING NTC thermistor and disc varistor ended in December 31, 2021.

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Financial Status

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Markets and Customers

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Target Markets

Index

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Company Introduction

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Competitive Strength
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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.

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Agency Approval of Product

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NTC Polymer Gas
NTC PTC
Temperature PTC Varistor TVS Diode Discharge
Thermistor Thermistor
Sensor Thermistor Tube
備註: 代表UL+cUL
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Certified Laboratories

Laboratories of THINKING passed the CTDP (Client Test Data Program) of UL and witness testing qualification of TUV, and they provide the following advantages.

• International laboratory management is based on ISO 17025

• Testing equipment and technicians are equivalent with those of approval agencies, and which offers reliable test results

• In-house equipment tests and measures THINKING products, and which shortens certification process time and accelerates customer’s new product launch

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Technical Support

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Financial Status

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Markets and Customers

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Target Markets

Index

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Company Introduction

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Competitive Strength

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Target Markets

Contribution to Human Life in

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EV Applications

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THANK YOU!

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THINKING

THINKING ELECTRONICS