TMC — Interim / Quarterly Report 2021

Nov 16, 2021

Investor Conference

Nov. 16[th] , 2021

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• TAIWAN MASK CORPORATION has tried to ensure the information in this presentation is correct, without omissions and out of date.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

• Chairman: Sean Chen, CEO: K.J. Wu

• Headquarter: HsinChu Science Industrial Park (Chunan)

• Employee of TMC: 300 Group: 900

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

• Technology: >110nm, 90nm, 65nm

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

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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)

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TMC Group

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TMC Group
TMC MTC YCC
Mask Foundry Services Investment
100% 100% 100%
Innova Xsense Aptos DCT
• Business Contact Lens Submount Packaging Acc M
• Share % 92% 41% 38% 57%
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Mask Market

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Semiconductor Growth from HPC, AIoT..

In B$USD

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• MCU • PMIC • BCD • Driver • …

Source from: MIC

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Looks Very Promising for Years

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In B$USD
Foundry Sales
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Resources from: Goldman Sachs

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Global Mask Demand Increasing

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In M$USD
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6%
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Source from:

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Named in Pie Chart

TMC

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Source from: semi

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Expending to Higher Value with Volume

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Extending…. Majority now

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Mask Quantity by Technology Node

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TMC Business

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Over 230 Customers and Increasing

Taiwan Hsinchu Taiwan: 170 Singapore: 6 USA: 3 China: 47 Malaysia: 2 UK: 1 Korea: 3 Japan: 1

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Varied Application of TMC Mask

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Business Strategy

• Strategic Customers • Step in 40nm, 28nm The Best Mask Provider

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Continue Investing on Key Technology

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2020 2021 2022 2023 2024
Technology Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
>90nm
65nm
40nm
28nm
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Development and qualification

Production

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Group Business Strategy Self Growth with Group Synergy

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TMC MTC
• Virtual fab • Product
• •
65, 40, 28nm Energy
Group
Xsense
•
Aptos Activation •
EEL/EML
•
Stack-Dice
• • Automation • 3 [rd] Gen Semi
Niche
•
Differentiation
DCT
Innova
•
Aerospace
•
Automation
•
Cloud, Semi
•
Materials
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Q3[rd] Financial Results

and Q4[th ] Outlook, 2021

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Consolidated Income Statement-QoQ

Operating Revenue Operating Costs Gross Profit Gross Margin Operating Expenses Operating Expenses % Operating Profit Operating Margin Non-operating profits Net Income EPS(NT$) NT$ M	3Q 21		1,492 -1,196 296 19.9% -265 -17.8% 31 2.1% -80 -21 -0.10 2Q 21	1,151 -898 254 22.0% -112 -9.8% 141 12.3% 129 268 1.27 3Q 20	Amount % 118 8% 48 4% 70 24% 62 23% 132 427% 594 738% 623 2971% 2.92 2.9pps 8.0pps QoQ	Amount % YoY
	1,610					459 40%
	-1,244					346 39%
	366					113 44%
	22.7%					0.7pps
	-203					91 81%
	-12.6% 163					22 15%
	10.1%					384 297% -2.2pps
	514
	602					477 178%
	2.82					1.55

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Consolidated Income Statement

Operating Revenue Operating Costs Gross Profit Gross Margin Operating Expenses Operating Expenses % Operating Profit Operating Margin Non-operating profits Net Income EPS(NT$) NT$ M	2021 1/1-9/30		2020 1/1-9/30 Amount % 3,356 1,023 30% -2,751 630 23% YoY
	4,379
	-3,381
	997		605 392 65%
	22.8%		18.0% 4.8pps
	-731		-348 383 110%
	-16.7% 266		-10.4% 257 9 4% -6.3pps
	6.1%		7.7% -147 847 577% -1.6pps
	700
	918		187 731 391%
	4.41		0.92 3.49

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Non-Operating Profits

-200 300 800 UNIT:NT$M	-200 300 800 UNIT:NT$M	-200 300 800 UNIT:NT$M			3Q 21 YT 3Q 21 Gain on disposal of investment Dividend income Adjustments for change in value of investment Others	3Q 21 YT 3Q 21 Gain on disposal of investment Dividend income Adjustments for change in value of investment Others
			1Q 21	2Q 21	3Q 21 YT 3Q 21
NT$M					1Q 21 2Q 21 **3Q 21 **	YT 3Q 21
Gain on disposal of investment Dividend income Adjustments for change in value of investment Others					317 -43 440 0 0 85 -51 -11 -9 1 -27 -3	714 85 -70 -29
Total					267 -81 514	700

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Q4[th] 2021 Guidance ,

Based on our current business outlook

 Revenues

Expected to increase slightly and range between NT$1.73 billion and NT$1.76 billion.

• Gross Margins Expected to range between 23% and 25%.

• Operating Margins

Expected to range between 10% and 12%.

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Thank you !

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