TMC — Investor Presentation 2023

Dec 27, 2023

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Investor Conference

Dec.27,2023

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• TAIWAN MASK CORPORATION has tried to ensure the information in this presentation is correct, without omissions and out of date.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

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Company Update

• Global situation is VUCA. TMC react proactively.

 2023: Mask business increased. Group facing challenge.

• 2024: Mask and Group growth.

• Most of key tools are available. Invest on going.

• Capacity: >200pcs/day. > 55nm in production. 40nm qualifying. Demand is stable.

• 2023 subsidiaries and projects are progressing good.

• Xsense turning positive. Steel process moves forward. Pilot steps in new energy.

• Reinforce ESG activity

• Roadmap of RE (50 and 100). Social support in specific area

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Global Semiconductor

Headwind in 2023, 2[st] half, ’24 Recover

Source from: Gartner, Sep, 2023

In M$US

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SEMI

Mask

• Inflation, interest %, inventory

• Merchant took 37%

• Economic of US and China

• Competition from China

• Geopolitics, war

• Geopolitics

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Global Semiconductor Segments recovering in 2024

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Smartphone
3%
2022 2023 2024
-7%
-11%
Server
6%
2%
0%
2022 2023 2024
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PC
7%
2022 2023 2024
-13%
-28%
EV
103%
34% 36%
2022 2023 2024
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Source: Nov, 023 MIC

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TMC Group

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Semiconductor
ESG, Sustainable
TMC
Smart Manufacturing Group
MTC
TMC Innova YC
Foundry Program
Mask Contact Lens Investment
Services S. Steel
100% 92% 100%
100%
Xsense Aptos DCT
Submont Package 3D print
53% 47% 57%
Pilot Moment
• Business Energy Memory
• TMC Share % 58% 53%
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2 TMC Business (1/ ) Healthy and Stable

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• Major in TWN or Asia

• Mainstream application

• Foundries dominated

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2 TMC Business (2/ ) Ramp and Grow Up

In 100M$NT

Group

• Pilot and Moment join

• Xsense and Innova ramp

• New projects production

TMC

• CapEx: 3-4 B$NT @’24

• ASP: + 12%

• Qty: +17%

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Financial Results (2023)

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Consolidated Revenue

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TMC	46%	49%	49%	55%	61%	57%	51%	53%
MTC	41%	39%	37%	33%	26%	22%	19%	21%
APTOS	11%	8%	10%	7%	5%	5%	14%	5%
Xsense	2%	3%	3%	2%	5%	9%	10%	12%
DCT	0%	0%	0%	1%	0%	0%	0%	1%
INNOVA	1%	1%	1%	1%	1%	1%	2%	2%
Pilot	N/A				0%	0%	0%	1%
Moment	N/A				2%	6%	4%	5%

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Gross Margin

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UNIT:NT$M
Gross Profit Gross Margin
700 35%
31%
600 30%
27% 27%
26% 26%
26%
24% 23~24% 24%
500 25%
400 20%
300 15%
200 10%
100 5%
0 0%
Q1 22 Q2 Q3 Q4 Q1 23 Q22 Q33 Q4 (F)
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Consolidated Income Statement-QoQ

NT$ M 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$) Operating EPS(NT$)	3Q 112		2Q 112 1,799 -1,327 472 26.2% -308 11.5% 164 14.7% -36 128 100 0.49 0.80	3Q 111 2,068 -1,526 542 26.2% -238 -11.5% 304 14.7% 224 528 600 2.93 1.49	QoQ Amount % 156 9% 129 10% 27 6% -0.7pps 12 4% 4.9pps 15 9% -5.6pps -188-522% -173-135% -186 - 186% -0.89 0.04	YoY Amount %
	1,955					-113 -5%
	-1,456					-70 -5%
	499					-43 -8%
	25.5%					-0.7pps
	-320					82 34%
	-16.4%					4.9pps
	179					-125 -41%
	9.2%					-5.5pps
	-224					-448-200%
	-45					-573-109%
	-86					-686-114%
	-0.40 0.84					-3.33 -0.65

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Consolidated Income Statement

NT$ M 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$) Operating EPS(NT$)		112 1/1-9/30		111 1/1-9/30 5,770 -4,207 1,563 26.2% -616 -11.5% 947 14.7% -984 -37 22 0.10 4.51	YoY Amount %
		5,318			-452 - 8%
		-3,919			-288 -7%
		1,399			-164 -10%
		26.3%			0.1pps
		-865			249 40%
		-16.3%			4.8pps
		534			-413 -44%
		10.0% -232			- 4.7pps 752 76%
		302			339 916%
		223			201 914%
		1.07 2.57			0.97 -1.94

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Non-Operating Profits

300 200 Gain (loss) on disposal of investment 100 Dividend income 0 Financial costs Q1 Q2 Q3 YTD (100) Gain (loss) on foreign exchange (200) (300) Others (400) (500)

	Q1	Q2	Q3	YTD
Gain (loss) on disposal of investment	88	(81)	(216)	(209)
Dividend income	0	94	0	94
Financial costs	(57)	(73)	(81)	(211)
Gain (loss) on foreign exchange	(6)	21	21	36
Others	3	3	52	58
合計	28	(36)	(224)	(232)

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Q4st, 2023 Guidance

Based on our current business outlook

 Revenues

Expected to decline slightly and range between NT$1.8 billion and NT$1.9 billion.

• Gross Margins Expected to range between 23% and 24%.

• Operating Margins

Expected to range between 9% and 10%.

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Q & A

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https://www.tmcnet.com.tw/ IR@tmcnet.com.tw

Thank you !