TMC — Investor Presentation 2022

Dec 8, 2022

Investor Conference

Dec. 8[th] , 2022

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

1

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• TAIWAN MASK CORPORATION has tried to ensure the information in this presentation is correct, without omissions and out of date.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.

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

2

Agenda

 Welcome

TMC

 Company Update

• Financial Result

Lidon Chen, GM Eve Yang, CFO

• Q&A

All

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

3

TMC Company Update

• Global situation is complicated. But getting controlled.

• ‘22 revenue of TMC (+41%) and group (+28%) is approaching.

• TMC is successfully extending business with customers.

• 2023: capacity + 15%. ASP +20%. 40 nm mask production. CapEx: 2.5B$NT

• Subsidiaries progressing up trend in many areas

• Revenue (5) +18%, NOP loss reduced 15 %.

• Launched new business for company expending and ESG.

• New steel construction technology

• Energy company

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

4

TMC Group

==> picture [592 x 281] intentionally omitted <==

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

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%
----- End of picture text -----

• Business

• • Share %

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

5

Fabs of TMC Group

Fab 1,2 (@HC)

==> picture [258 x 151] intentionally omitted <==

Fab 3/5 (@HC)

==> picture [253 x 151] intentionally omitted <==

Fab 6 (@ZN)

==> picture [252 x 145] intentionally omitted <==

Fab 7 (@TL): Pending

==> picture [253 x 147] intentionally omitted <==

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

6

Mask Market

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

7

Global Semiconductor Tailwind to Headwind but Getting Controlled

==> picture [326 x 294] intentionally omitted <==

 Situation

• Inflation

• Monetary tightening

• Lockdowns of China

• • War of U. & R.

• Geopolitical

• -4 % in 2H of 2022

Source from: Gartner

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

8

Road to be World Class Mask Provider

Source from: semi

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

9

TMC Business

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

10

Over 300 Customers and Increasing

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

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

Varied Application of TMC Mask

==> picture [356 x 323] intentionally omitted <==

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

12

TMC Business Majority from Taiwan Company

==> picture [470 x 328] intentionally omitted <==

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

13

Majority Demand from Foundry

==> picture [404 x 304] intentionally omitted <==

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

14

Continue Investing on Key Technology

==> picture [604 x 229] intentionally omitted <==

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

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
----- End of picture text -----

Development and qualification Production

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

15

Financial Results (2022)

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

16

Consolidated Revenue

- 500 1,000 1,500 2,000 2,500 UNIT:NT$M	- 500 1,000 1,500 2,000 2,500 UNIT:NT$M	- 500 1,000 1,500 2,000 2,500 UNIT:NT$M										2,068 2,000~2,100 1% 1~2% -600% -500% -400% -300% -200% -100% 0% 100% Q3 Q4(F) DCT Xsense INNOVA APTOS MTC TMC QoQ(%) 49% 55% 37% 31% 10% 11% 3% 3% 0% 1% 1% 1%	2,068 2,000~2,100 1% 1~2% -600% -500% -400% -300% -200% -100% 0% 100% Q3 Q4(F) DCT Xsense INNOVA APTOS MTC TMC QoQ(%) 49% 55% 37% 31% 10% 11% 3% 3% 0% 1% 1% 1%
			1,276 1,492 1,610 1,699 1,707 1,994 -3% 17% 8% 5% 1% 17%									2,068 2,000~2,100 1% 1~2%
			Q1 21	Q2	Q3		Q4 Q1 22			Q2
TMC			49%	43%	45%		44%	46%		49%		49%	55%
MTC			43%	46%	44%		41%	41%		39%		37%	31%
APTOS			8%	9%	10%		11%	11%		8%		10%	11%
Xsense			N/A	3%	1%		2%	2%		3%		3%	3%
DCT			N/A		0%		1%	0%		0%		0%	1%
INNOVA			0%	0%	0%		0%	1%		1%		1%	1%

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

17

Gross Margin

==> picture [622 x 349] intentionally omitted <==

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

UNIT:NT$M
700
31%
600 28%~30%
500
26%
26%
400 Gross Profit
24%
Gross Margin
23%
300 24%
200
20%
100
-
Q1 21 Q2 Q3 Q4 Q1 22 Q2 Q3 Q4(F)
Gross Profit 335 296 366 412 403 618 542 570
Gross Margin 26% 20% 23% 24% 24% 31% 26% 28%~30%
----- End of picture text -----

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

18

Consolidated Income Statement-QoQ

Operating Revenue Operating Costs Gross Profit Gross Margin Operating Expenses Operating Expenses % Operating Profit Operating Margin NT$ M	3Q 111	3Q 111	2Q 111	3Q 110	Amount % QoQ	Amount % YoY
	3Q 111
	2,068		1,994	1,610	74 4%	458 28%
	-1,527		-1,376 618 31.0% -185 -9.3% 433 21.7%	-1,244 366 22.7% -205 -12.7% 161 10.0%	150 11% -76 -12% 52 28% (128) -30% -7.0pps -4.8pps 2.2pps	283 23%
	542					176 48%
	26.2%					3.5pps
	-237					32 16%
	-11.5%					144 89% -1.3pps
	305
	14.7%					4.7pps
Non-operating profits Net Income (loss) before tax Net Income	224 528		-689 -257 -333	514 675 601	913 132% 785 306% 933 280%	-290 -57% -147 -22%
	600					-1 0%
EPS(NT$)	2.93		-1.58	2.81	4.51	0.12

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

19

Consolidated Income Statement

Operating Revenue Operating Costs Gross Profit Gross Margin Operating Expenses Operating Expenses % Operating Profit Operating Margin Non-operating profits Net Income (loss) before tax Net Income EPS(NT$) NT$ M	111 1/1-9/30		110 1/1-9/30 4,378 -3,381 997 22.8% -737	Amount % YoY
	5,770			1,392 32%
	-4,207			826 24%
	1,563			566 57%
	27.1% -616			-121 -16% 4.3pps
	-10.7%		-16.8% 260	-6.2pps
	947			687 264%
	16.4% -984		5.9% 661 921	-1,645 -249% 10.5pps
	-37			-958 -104%
	22		873	-851 -97%
	0.10		4.19	-4.09

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

20

Q4[th] 2022 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 28% and 30%.

• Operating Margins

Expected to range between 17% and 19%.

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

21

Q & A

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

22

Thank you !

==> picture [124 x 34] intentionally omitted <==

Proprietary 2022

23