Transcend - Investor Presentation 2021

Transcend Information Inc.
Investor Conference
2021 Q4

About Transcend

Founded in 1988	Made in Taiwan	13 Offices Worldwide
Total Employees 1200+	Total Products 2000	Went Public Since 2001

Notes:

Top 25 Taiwan Global Brand
For the 14th consecutive year,
Transcend appears in Interbrand’s
BEST TAIWAN GLOBAL BRANDS
ranking as one of Taiwan’s Top 25
global brands in 2020, with a brand
value of USD 102 million.

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Global Network

Europe
Asia
HQ

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Germany
Taiwan
Headquarters

Taipei
Factory

United
Kingdom
Korea
Japan

The
Netherlands

China
United States

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Los Angeles
Silicon Valley
Maryland
Hong Kong
Beijing
Shanghai
Shenzhen

Manufacturing Bases

| Monthly Production 10M pcs | Automation Systems | High-Speed SMT 16 Lines |
| --- | --- | --- |
| Floor Area 35k m2 | Environmental Tests | 5+ Certifications |

Notes:

Consumer Products

Dashcams
Body Cameras
Apple Solutions
Card Readers
DRAM Modules
USB Flash Drives
Memory Cards
Accessories
Internal SSDs
Portable SSDs
External Hard Drives
Personal Cloud

Embedded Solutions

SSD
Solutions

Memory
Cards

Flash
Solutions

DRAM
Modules

SD Cards
microSD Cards
CompactFlash Cards
CFast Cards
MMC
e.MMC
PATA DOM
USB Drives
DDR4
DDR3
DDR2/DDR/SDRAM
2.5” SSDs
M.2 SSDs
PCIe SSDs
mSATA SSDs
Half-Slim SSDs
2.5” PATA SSDs

Embedded Applications
Transcend products are widely used in various areas of industry

Networking and
Telecom

Transportation

Automation

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Healthcare
In-Vehicle Infotainment
System
Navigation System
Medical Tablet
MRI and Ultrasound System
Robot Control
Process Control Unit and
Terminal
Data Center Server
Video Streaming Server

AIoT

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Gaming

Defense

Embedded Application

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Rugged PC and Laptop
Ground Control and
Communication Station
Smart Manufacturing
Factory
Self-service Store
Slot Machine
VR / AR Gaming Machine
Industrial and Panel PC
Fanless PC

Notes:

Embedded Software Solutions
Monitor

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Management
Security
Rescue

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Control Center

A SaaS solution that optimizes your edge devices in real time and on a grand scale

TCG Opal Toolbox
ATA Security Toolbox
UFD Security Toolbox

Feature an intuitive interface that enables painless management of Self-Encrypting Devices

One Touch Recovery

Designed for our embedded solutions that enables enterprises to restore lost data quickly

Scope Pro

A convenient software package that helps users monitor and manage storage device status via an intuitive interface

Notes:

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Product Launch 2021

Embedded Solutions-3D TLC

IPS SSDs
High data integrity in mission-critical applications.
| SSD452P / SSD452P-I | MTE662P/?MTE662P-I | MTS952P | MSA452P |
| --- | --- | --- | --- |

TCG Opal SSDs
Enhanced data security to prevent data loss or unauthorized use.
| SSD455K-I | MTE662A | MTS952A | |
| --- | --- | --- | --- |

DRAM-less SSDs
Economical storage solution that features low power consumption.
| SSD432K | MTE632T | MTS932T | MTS532T |
| --- | --- | --- | --- |

Embedded Solutions
Flash Solutions
Compact flash products unveil outstanding performance for portable and embedded systems.

| EMC410T | EMC310M | UFM510 |
| --- | --- | --- |
High durability, ideal for write-intensive applications including medical devices and surveillance systems.
Memory Cards

| USD450I | SDC300T | USD300T |
| --- | --- | --- |

Consumer Products
SSDs
High-speed SSDs for gamers and NAS users.
Dashcams
Protect your safety on the road all-round.

| MTE240S | SSD250N | DrivePro 620 | DrivePro 20 |
| --- | --- | --- | --- |
USB Flash Drives
Bring fast transfer and wide compatibility with you in the pocket.
Card Reader
Blazing-fast transfer speed and durable design made for experts.

| JetFlash 930C | JetFlash 790C | RDE2 | |
| --- | --- | --- | --- |

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Successful Stories

Successful Stories

Network & Communication
Industrial PC
Gaming
Automation
Transportation
Healthcare
Military
Retail
Internet of Things? (IoT)

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Network and Communication
- 5G Testing Platforms
Platform
A global leading manufacturer and provider of testing devices for developers of wireless consumer electronics.
Application
Company L develops and produces fully-integrated, multiband solutions for testing devices. The system consists of a simple interface which enables efficient multi-device testing for manufacturing. Such products require SSDs featuring high reliability and great scalability to provide an advanced 5G environment.
Transcend Products
TS256GSSD452K
256GB 2.5" SATA3 SSD with 3D TLC NAND flash

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Notes:

Healthcare - Medical Equipment

Platform
A world leading healthcare technology company, dominates the industry in diagnostic medical equipment.
Application
The control boxes of medical equipment require highly reliable SD cards and SSDs to ensure record accuracy for patient’s health data.
Transcend Products TS256GSSD452K (OP 240G)
240GB 2.5" SATA3 SSD with 3D TLC NAND flash TS512GSSD452K (OP 480G) 480GB 2.5" SATA3 SSD with 3D TLC NAND flash
TS4GSDHC10
4GB SD Card Class10 with MLC NAND flash

Notes:

Defense - Rugged PCs
Platform
A worldwide top Rugged PC manufacturer dedicated to producing rugged military laptops which employ SSD solutions to secure confidential information.
Application
This rugged PC requires encryption functions in both hardware and software to improve the data security and confidentiality in the SSD.
Transcend Products
TS1TSSD420KSE
1TB 2.5" SATA3 SSD with MLC NAND flash and TCG OPAL 2.0
TS256GMTS800SE
256GB M.2 2280 SSD with MLC NAND flash and TCG OPAL 2.0

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Notes:

Retail - Beverage Dispensing Machines
Platform
The world's top leading brand and retailer of nonalcoholic beverage concentrates and soft drinks, delights its customers by producing contemporary countertop dispensers equipped with and beverage levers.
Application
Beverage Dispensers engage customers with a refreshing digital experience by displaying all primary brands on one screen and enabling remote software updates with wireless connectivity.
Transcend Products
TS64GMTS400
64GB M.2 2242 SATA3 SSD with MLC NAND flash
TS512MSH64V6H
4GB DDR4 2666Mbps SO-DIMM

Notes:

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Financial Information

2021Q3 Consolidated I/S
Unit: NTD$ million (Except EPS)
| | 2021Q3 | |
| --- | --- | --- |
| | Amount | % |
| Sales | 3,524 | 100 |
| Cost of goods sold | (2,415) | |
| Sales Margin | 1,109 | 31.5 |
| Operating Expenses | (306) | (8.7) |
| Operating Income | 803 | 22.8 |
| Non-OP Income & Loss | 27 | 0.8 |
| Income Before Tax | 830 | 23.6 |
| Net Income | 666 | 18.9 |
| Earnings Per Share | 1.55 | |
| 2021~Q3 | |
| --- | --- |
| Amount | % |
| 10,816 | 100 |
| (7,538) | |
| 3,278 | 30.3 |
| (975) | (9.0) |
| 2,303 | 21.3 |
| 205 | 2.0 |
| 2,508 | 23.3 |
| 2,045 | 18.9 |
| 4.77 | |
| 2020~Q3 | |
| --- | --- |
| Amount | % |
| 8,471 | 100 |
| (6,552) | |
| 1,919 | 22.7 |
| (965) | (11.4) |
| 954 | 11.3 |
| 201 | 2.4 |
| 1,155 | 13.7 |
| 933 | 11.0 |
| 2.17 | |

2021Q3 Consolidated B/S
Unit: NTD$ million
| | 2021/9/30 | |
| --- | --- | --- |
| | Amount | % |
| Total Assets | 21,615 | 100 |
| Current Assets | 16,118 | 74.6 |
| Cash & cash equivalents | 1,640 | 7.6 |
| Current Financial Assets | 7,509 | 34.7 |
| Accounts Receivable | 1,618 | 7.5 |
| Inventory | 5,188 | 24.0 |
| Non-current Assets | 5,497 | 25.4 |
| Non-current Financial Assets | 375 | 1.7 |
| Property, plant and equipment | 4,733 | 21.9 |
| Total Liabilities | 2,276 | 10.5 |
| Current Liabilities | 2,081 | 9.6 |
| Accounts Payable | 1,286 | 6.0 |
| Total Equities | 19,339 | 89.5 |
| Financial Ratio | | |
| Return on Equity | 14.10% | |
| Return on Assets | 12.62% | |
| 2020/12/31 | |
| --- | --- |
| Amount | % |
| 20,738 | 100 |
| 14,615 | 70.5 |
| 737 | 3.6 |
| 9,171 | 44.2 |
| 1,435 | 6.9 |
| 3,190 | 15.4 |
| 6,123 | 29.5 |
| 856 | 4.1 |
| 4,895 | 23.6 |
| 2,066 | 10.0 |
| 1,838 | 8.9 |
| 1,172 | 5.7 |
| 18,672 | 90.0 |
| | |
| 6.41% | |
| 5.78% | |
| 2020/9/30 | |
| --- | --- |
| Amount | % |
| 20,136 | 100 |
| 14,019 | 69.6 |
| 819 | 4.1 |
| 8,616 | 42.8 |
| 1,327 | 6.6 |
| 3,166 | 15.7 |
| 6,117 | 30.4 |
| 810 | 4.0 |
| 4,925 | 24.5 |
| 1,757 | 8.7 |
| 1,526 | 7.6 |
| 965 | 4.8 |
| 18,379 | 91.3 |
| | |
| 6.77% | |
| 6.18% | |

2021Q3 Consolidated Cash flow
Unit: NTD$ million
| | 2021~Q3 | 2020~Q3 |
| --- | --- | --- |
| | Amount | Amount |
| Consolidated income before income tax | 2,508 | 1,155 |
| Cash flows from (used in) operating activities | 1,564 | (120) |
| Cash flows from investing activities | 750 | 1,723 |
| Cash flows used in financing activities | (1,360) | (2,019) |
| Effect of foreign exchange rate change | (51) | 2 |
| Increase (decrease) in cash and cash equivalents | 903 | (414) |
| Cash and cash equivalents at beginning of the year | 737 | 1,233 |
| Cash and cash equivalents at end of period | 1,640 | 819 |

Product Mix from 2020 to 2021Q3

Chart

Category	Embedded Products	Channel Products	Strategy Products
2021Q3	0.572	0.262	0.166
2020	0.456	0.328	0.216

Territories from 2020 to 2021Q3

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2021Q3
2020

Taiwan Asia America Europe Others

2019Q3-2021Q3 Profitability

Chart

Category	Gross margin rate	NI ratio
19Q3	0.264	0.159
19Q4	0.244	0.12
20Q1	0.256	0.144
20Q2	0.236	0.106
20Q3	0.184	0.074
20Q4	0.185	0.089
21Q1	0.244	0.16
21Q2	0.347	0.216
21Q3	0.315	0.189

2019Q3-2021Q3 EPS by Quarter

Chart

Category	EPS
19Q3	1.24
19Q4	0.92
20Q1	1.08
20Q2	0.62
20Q3	0.48
20Q4	0.61
21Q1	1.3
21Q2	1.91
21Q3	1.55
Note: Outstanding shares: 2019Q3 431 million shares and 2019Q4~2021Q3 429 million shares

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Q & A

AI assistant

Transcend Investor Presentation 2021

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