Weikeng - Investor Presentation 2020

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Agenda

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Welcome Company Introduction Fama Chou 3[rd] Q 20 Financial Results 2020 Turnkey solution

Senior Vice President Spokesman

Q & A

Stan Chi Group Chief Operating Officer Tom Chen Executive Vice President Calvin Lee Chief Marketing Officer Kevin Hsieh Senior Vice President & Deputy Spokesman

Weikeng Confidential

Safe Harbor Notice

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WEIKENG’s statements of its current are expectations forward-looking
statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements.
Information as to those factors that could cause actual results varied can be found in WEIKENG’s Quarterly or Yearly Financial Statements and Report filed with the Taiwan Stock Exchange Corporation (the “TWSE”) and such other major information will be posted on the TWSE’s Market Observation Post System ( MOPS) from time to time.
Except as required by law, we undertake no obligation to update any forwardlooking statement, whether as a result of new information, future events, or otherwise.
In addition, any financial information contained in this report is prepared in accordance with the International Financial Reporting Standards (IFRSs).

Weikeng Confidential

Company Introduction--Brief Facts

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 2020 1Q~3Q consolidated sales: NT$ 42.8B(YoY=22%)

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Weikeng Group
Weikeng Industrial Weikeng International Weikeng Tech
(Taiwan/ Greater China) (HK/China) (Sin/SEA)
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
Parent company Wholly-owned subsidiary
2020 1Q~3Q sales:  2020 1Q~3Q sales: NT$20.4B(YoY=26%) NT$21.2B(YoY=19%)
Wholly-owned subsidiary
2020 1Q~3Q sales: NT$1.2B(YoY=6%)

Weikeng Confidential

Company Introduction–Revenues, 2014-20120/ 1Q~3Q

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Diversified, broad-based accounts--top 10 customer/group share 18.7% / 28.5% of sales(2020YTD)
70% of sales from demand creation
20% of sales from mass market

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SEA
NT$ Billions
China
60.00
Taiwan
55.00 52.98
51.93 Total
1.61
1.37 48.22
50.00
1.54
43.74
45.00 42.82
0.88
39.93 1.19
38.84
40.00 0.79
0.82
25.03 24.38 24.47
35.00
23.49 21.19
30.00 20.23
19.62
25.00
20.00
15.00
26.99
25.53
22.21
10.00 18.92 18.40 19.37 20.44
5.00
0.00
2014 2015 2016 2017 2018 2019 1Q~3Q'20
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Weikeng Confidential

Company Introduction_Revenue % by Applications_1Q~3Q’20

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Computing
40%
Communication
10%
Industrial 30%
Applications
Automotive Consumer
5% 15%
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Weikeng Confidential

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e Consolidated Statements of Comprehensive Incom

Selected Items from Consolidated Statements of Comprehensive Income (In NT$ Millions)	3Q 2020	1Q~3Q 2020	2Q 2020	1Q~3Q 2019	3Q20 Over 2Q20	1Q~3Q20 Over 1Q~3Q19
Net Revenue	17,266	42,824	13,997	35,164	23%	22%
Gross Margin	854 4.95%	2,284 5.33%	749 5.35%	2,169 6.17%	14% -0.40ppts	5% -0.84ppts
Operating Expenses	579	1,529	482	1,513	97	16
Net Operating Income	275 1.59%	755 1.76%	267 1.91%	656 1.87%	3% -0.32ppts	15% -0.11ppts
Non-Operating Items, net	33	(66)	(10)	(342)	43	276
Foreign currency exchange gain (losses),net	73	94	44	(34)	29	128
Financial costs	(51)	(205)	(71)	(332)	20	127
Profit before Tax	308 1.78%	689 1.61%	257 1.84%	314 0.89%	20% -0.06ppts	119% +0.72ppts
Net Profit	235	529	204	232	15%	128%
Basic EPS(NT Dollar)	0.64	1.44	0.55	0.63	16%	129%
Exchange Rate(NT$/US$)	29.46	29.82	29.90	31.05	-1.5%	-4.0%

Weikeng Confidential

Balance Sheets and Key Indices

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Selected Items from Balance Sheets (In NT$ Millions)	Sep 30, 2020	Sep 30, 2020	Jun 30, 2020	Jun 30, 2020	Dec 31, 2019	Dec 31, 2019
	$	%	$	%	$	%
Cash and Cash Equivalents	2,236	10	2,574	11	2,336	10
Notes and Accounts Receivable, net	10,268	45	9,451	40	8,223	35
Inventories, net	8,187	36	9,308	40	10,479	45
Total Assets	22,718	100	23,584	100	23,383	100
Short-term Borrowings	10,828	48	10,271	44	9,845	42
Notes and Accounts Payable	3,619	16	5,510	23	5,316	23
Total Liabilities	16,827	74	17,889	75	17,719	76
Total Equity	5,891	26	5,695	24	5,665	24
Key Indices
A/R Turnover (Days)	59		63		63
Inventory Turnover (Days)	63		75		96
A/P Outstanding (Days)	30		41		44
Current Ratio (X)	1.35		1.32		1.32
ROWC(%)	7.13		7.22		5.09
ROE(%)	12.21		10.46		4.54

Weikeng Confidential

Cash Conversion Cycle_ annualized

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Days
160
Cycle(Cumulative annualized
143
140 135
125
120 115 114
122
105
112
97
100 92
99
96
74/Q
80 87 85
75
68
60 65 65 66
63 63 63
59
57
40 47 44
42 41
39 39
37
30
20
48 51 25
/Q /Q /Q
0
4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20
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Days of Inventory Turnover Days of AR Collection Days of AP Outstanding Cash Conversion Cycle

Weikeng Confidential

Working Capital _ Annualized

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% Return on Working Capital Working Capital Turnover Rate
TURNOVER
10 12
8.81
10.25
10
9.45 9.34
8
8.55 8.56
8.23
7.76 7.22
7.13 8
7.24
6
6.08
5.63
5.52 6
5.09
4.56
4
4
2
2
0 0
4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20
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Weikeng Confidential

Triple Margin_ YTD

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% Gross Margin Operating Margin Profit Margin
7
6.48
6.42
6.31
6.17
5.89
6 5.75
5.6
5.33
5
4
3
2.39
1.96
1.87 1.85 1.88
2 1.74 1.76
1.56
1 1.24
1.18 1.15
0.79
0.71 0.73 0.66
0.54
0
4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20
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Weikeng Confidential

EPS vs ROE

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%
NT$ EPS(Quarter) EPS(YTD) ROE(YTD)
2 14
1.8
1.83 12.21
12
1.6 11.13
10.46
10
1.4
1.44
1.2
8
1
6.48
6
0.8 5.54 5.43
5.08 4.54 0.8
0.6
0.63 0.71 0.64 4
0.55
0.4 0.47
2
0.2 0.25 0.25 0.25
0.22 0.22
0.19
0.15
0.08
0 0
4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20
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Weikeng Confidential

2020 Turnkey solution-1

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Automotive

48V BMS Master

(Infineon)

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

48V BMS Slaver

(Infineon)

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 Inverter Solution (Infineon)

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Consumer

Sensor less FOC Vacumn Cleaner Driving board (Infineon )

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Intelligent Fish Tank Cleaner solution (Infineon)

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High Speed Brushless Hair Dryer solution (Infineon)

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Weikeng Confidential

 11/26/2020

2020 Turnkey solution-2

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Industrial

Sensor less FOC Motor Driving Board(Infineon)

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Stepping Servo Motor Driving Board (NXP)

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Smart Meter(Microchip)

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Power

65W Type C PD Charger (Cypress)

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 45W 2A 1C PD Charger (Cypress+Diodes)

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65W 3A1C PD Charger (Cypress+Diodes)

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Weikeng Confidential

2020 Turnkey solution-3

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Computing Peripheral

 Smart Speaker (Infineon+Xmos)

BT Wireless Gaming
Headset (NXP+Molex)
MQA(Master Quality
Authenticated) Gaming Headset (ESS)

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Weikeng Confidential

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Thank You

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https://www.weikeng.com.tw/conference.php?lan=en

Weikeng Confidential

AI assistant

Weikeng Investor Presentation 2020

52266_rns_2020-11-26_e5196b07-906b-494d-b24e-f5c4dcda4e51.pdf

Agenda

Safe Harbor Notice

Company Introduction--Brief Facts

 2020 1Q~3Q consolidated sales: NT$ 42.8B(YoY=22%)

Company Introduction–Revenues, 2014-20120/ 1Q~3Q

Company Introduction_Revenue % by Applications_1Q~3Q’20

e Consolidated Statements of Comprehensive Incom

Balance Sheets and Key Indices

Cash Conversion Cycle_ annualized

Working Capital _ Annualized

Triple Margin_ YTD

EPS vs ROE

2020 Turnkey solution-1

Automotive

Consumer

2020 Turnkey solution-2

Industrial

Power

2020 Turnkey solution-3

Computing Peripheral

Thank You

AI assistant

Weikeng — Investor Presentation 2020

52266_rns_2020-11-26_e5196b07-906b-494d-b24e-f5c4dcda4e51.pdf

Agenda

Safe Harbor Notice

Company Introduction--Brief Facts

 2020 1Q~3Q consolidated sales: NT$ 42.8B(YoY=22%)

Company Introduction–Revenues, 2014-20120/ 1Q~3Q

Company Introduction_Revenue % by Applications_1Q~3Q’20

e Consolidated Statements of Comprehensive Incom

Balance Sheets and Key Indices

Cash Conversion Cycle_ annualized

Working Capital _ Annualized

Triple Margin_ YTD

EPS vs ROE

2020 Turnkey solution-1

Automotive

Consumer

2020 Turnkey solution-2

Industrial

Power

2020 Turnkey solution-3

Computing Peripheral

Thank You

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Weikeng Investor Presentation 2020