TMC — Interim / Quarterly Report 2022

Aug 30, 2022

Investor Conference

Aug. 30[th] , 2022

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Safe Harbor Statement

• The presentation provided forward-looking statements. These forward-looking statements may exceed judgment due to different conditions such as risks, uncertainties and assumptions, and actual results may differ materially from this statements. Due to the different conditions of these risks, uncertainties and assumptions, the forward-looking statements in this presentation may not occur as expected. Readers should not rely on forward-looking statements.

• TAIWAN MASK CORPORATION has tried to ensure the information in this presentation is correct, without omissions and out of date. In addition, except for legal requirements, TMC has no obligation to respond new information or future events, proactively update the expression of the future prospects, and will not be responsible for any losses directly or indirectly caused in this presentation or actions taken by relying on information.

• Without the permission of the company cannot copy, modify, recompile, delete or transmit any content in this presentation, or use any content for commercial purposes.

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Agenda

 Welcome

TMC

 Company Update

• Financial Result

Lidon Chen, GM Eve Yang, CFO

• Q&A

All

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Company Overview

 Founded: 1988. IPO(2338): 1995.

 Paid-in capital: 2.5 B$NT

• Revenue of ‘21: 6.1B $NT

• Chairman: Sean Chen, CEO: K.J. Wu

• Headquarter: HsinChu Science Industrial Park (Chunan)

• Employee of TMC: 350 Group: 1000

• TMC mask fab capacity: 5.5k masks/M.

• Technology: >110nm, 90nm, 65nm

• Subsidiaries: TMC, MTC, Innova, YCC (Aptos, Xsense, DCT)

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TMC Group

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TMC Group
TMC MTC YC Incubation
Mask Foundry Services Investment Steel
100% 100% 100% Energy
Innova Xsense Aptos DCT
Contact Lens Submount Packaging 3D Print
92% 53% 47% 57%
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• Business

• • Share %

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Fabs of TMC Group

Fab 1,2 (@HC)

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Fab 3/5 (@HC)

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Fab 6 (@ZN)

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Fab 7 (@TL): Pending

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Mask Market

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Global Semiconductor Headwind in front

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• Shortage to surplus

 Smartphone, PC:

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• Data center, Auto:

• WBG CAGR 35%:

Source from: Gartner

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Global Mask Market Trending Up From Multiple Applications

In M$USD

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• Varied applications

• 46% in Taiwan (major)

• Merchant take 35%

• TMC ranks 4[th]

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Road to be World Class Mask Services Provider

Source from: semi

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Expending to Higher Value with Volume

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TMC Focus
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Mask Price /Set Transition to Higher Services Value

M$NT

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2017
2017 ~2021
2022~2025
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TMC Business

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Over 300 Customers and Increasing

Taiwan Hsinchu Taiwan: 213 Singapore: 11 US/EU: 7 China: 41 Malaysia: 5 Korea: 40 Japan: 1

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Varied Application of TMC Mask

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TMC Business Majority from Taiwan Company

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Majority Demand from Foundry

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Continue Investing on Key Technology

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2021 2022 2023 2024 2025
Technology Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
>= 180 nm
>= 65nm
40nm
28nm
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Development and qualification Production

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Revenue of TMC Company Growing up with Customers

In M$NT

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2Q22 Financial Results and 3Q22 Outlook

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Consolidated Revenue

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TMC	49%	43%	45%	44%	46%	49%	53%
MTC	43%	46%	44%	41%	41%	39%	34%
APTOS	8%	9%	10%	11%	11%	8%	10%
Xsense	N/A	3%	1%	2%	2%	3%	2%
DCT	N/A		0%	1%	0%	0%	0%
INNOVA	0%	0%	0%	0%	1%	1%	1%

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Gross Margin

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Gross Profit	335	296	366	412	403	618	600~638
Gross Margin	26%	20%	23%	24%	24%	31%	29%~31%

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Statements of Comprehensive Income-QoQ

Operating Revenue Operating Costs Gross Profit NT$ M		1,994 -1,376 618 2Q 22	1Q 22		1,492 -1,196 296 2Q 21	Amount % Amount % 286 17% 502 34% 72 6% 181 15% 215 53% 322 109% QoQ YoY
			1,708
			-1,304
			403
Gross Margin		31.0%	23.6%		19.9%	7.4pps 11.1pps
Operating Expenses Operating Expenses % Operating Profit		-185 -9.3% 433	-193		-268 -17.9% 29	-8 -4% -82 -31% 223 106% 404 1399% -2.0pps -8.6pps
			-11.3% 210
Operating Margin		21.7%	12.3%		1.9%	9.4pps 19.8pps
Non-operating profits Net Income EPS(NT$)		-689 -333 -1.58	-518		-120 -62 -0.30	-171 -33% -569 -476% -88 -36% -271 -439% -0.44 -1.28
			-245
			-1.14

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Statements of Comprehensive Income-YoY

Operating Revenue Operating Costs Gross Profit NT$ M	2022 1/1-6/30		2021 1/1-6/30 Amount % 2,768 934 34% -2,137 543 -25% YoY
	3,702
	-2,680
	1,021		631 390 62%
Gross Margin	27.6%		22.8% 4.8pps
Operating Expenses Operating Expenses % Operating Profit	-379		-532 -153 -29%
	-10.2% 642		-19.2% 99 543 547% -9.0pps
Operating Margin	17.4%		3.6% 13.8pps
Non-operating profits Net Income EPS(NT$)	-1,208		147 -1,355 -921%
	-578		273 -851 -312%
	-2.72		1.33 -4.05

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3Q22 Guidance

• Based on our current business outlook

 Revenues

Expected to increase slightly and range between NT$2.0 billion and NT$2.1 billion.

• Gross Margins Expected to range between 29% and 31%.

• Operating Margins

Expected to range between 19% and 21%.

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Thank you !

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