Weltrend — Interim / Quarterly Report 2021

Nov 10, 2021

偉詮電子股份有限公司 Weltrend Semiconductor, Inc. Investor Conference

Cindy Guo Tony Lin CFO and Spokesperson Executive Assistant to CEO Finance Division CEO’s Office

November 10, 2021

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Weltrend Semiconductor, Inc.
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P1

Safe Harbor Notice

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Forward-looking Statements

Weltrend’s statements and any others in this release that refer to business outlook, future plans, and expectations are forward-looking statements that involve a number of risks and uncertainties. Statements that refer to or are based on projections, uncertain events or assumptions also identify forwardlooking statements. Such statements are based on management's expectations as of the date of this earnings release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Weltrend presently considers the following to be important factors that could cause actual results to differ materially from the company's expectations.

~~Weltrend Semiconductor, Inc.~~

P2

Copyright © Weltrend 2021, All Rights Reserved

1~9/21 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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1~9/21 % 1~9/20 % YoY %	1~9/21 % 1~9/20 % YoY %	1~9/21 % 1~9/20 % YoY %	1~9/21 % 1~9/20 % YoY %	1~9/21 % 1~9/20 % YoY %	1~9/21 % 1~9/20 % YoY %
Net sales	2,631,031	100	1,862,352	100	41
Cost of good sold	(1,871,152)	(71)	(1,387,364)	(74)	35
Gross Profit	759,879	29	474,988	26	60
Operating Exp.	(481,498)	(19)	(382,363)	(21)	26
Selling & Adm.	(203,153)	(8)	(149,573)	(8)	36
R & D Exp.	(278,345)	(11)	(232,790)	(13)	20
Operating Income	278,381	10	92,625	5	201
Net Non-Operating Income	339,069	13	85,616	4	296
Income Before Tax	617,450	23	178,241	9	246
Income Tax Exp.	(51,139)	(2)	(4,061)	-	1,159
Net Income	566,311	21	174,180	9	225
EPS	3.2		0.99		223

~~Weltrend Semiconductor, Inc.~~

P3

Copyright  Weltrend 2020, All Rights Reserved

3Q21 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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3Q21 % 3Q20 % YoY %	3Q21 % 3Q20 % YoY %	3Q21 % 3Q20 % YoY %	3Q21 % 3Q20 % YoY %	3Q21 % 3Q20 % YoY %	3Q21 % 3Q20 % YoY %
Net sales	974,818	100	720,422	100	35
Cost of good sold	(669,477)	(69)	(537,218)	(75)	25
Gross Profit	305,341	31	183,204	25	67
Operating Exp.	(161,765)	(16)	(151,655)	(21)	7
Selling & Adm.	(68,571)	(7)	(60,198)	(8)	14
R & D Exp.	(93,194)	(9)	(91,457)	(13)	2
Operating Income	143,576	15	31,549	4	355
Net Non-Operating Income	62,856	6	121,467	17	(48)
Income Before Tax	206,432	21	153,016	21	35
Income Tax Exp.	(27,799)	(3)	(3,129)	-	788
Net Income	178,633	18	149,887	21	19
EPS	1.01		0.85		19

~~Weltrend Semiconductor, Inc.~~

P4

Copyright  Weltrend 2021, All Rights Reserved

3Q21 Consolidated Income Statement (QoQ)

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(Expressed in NT$K)

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3Q21 % 2Q21 % QoQ %	3Q21 % 2Q21 % QoQ %	3Q21 % 2Q21 % QoQ %	3Q21 % 2Q21 % QoQ %	3Q21 % 2Q21 % QoQ %	3Q21 % 2Q21 % QoQ %
Net sales	974,818	100	903,621	100	8
Cost of good sold	(669,477)	(69)	(634,285)	(70)	6
Gross Profit	305,341	31	269,336	30	13
Operating Exp.	(161,765)	(16)	(154,379)	(17)	5
Selling & Adm.	(68,571)	(7)	(66,035)	(7)	4
R & D Exp.	(93,194)	(9)	(88,344)	(10)	5
Operating Income	143,576	15	114,957	13	25
Net Non-Operating Income	62,856	6	99,059	11	(37)
Income Before Tax	206,432	21	214,016	24	(4)
Income Tax Exp.	(27,799)	(3)	(12,106)	(2)	130
Net Income	178,633	18	201,910	22	(12)
EPS	1.01		1.14		(11)

~~Weltrend Semiconductor, Inc.~~

P5

Copyright  Weltrend 2021, All Rights Reserved

Balance Sheet Summary

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(Expressed in NT$K)

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2021/09/30 2021/06/30	2021/09/30 2021/06/30	2021/09/30 2021/06/30
Cash & Marketable Securities	2,950,122	2,876,408
Notes & Accounts receivable	1,127,235	1,021,367
Inventories	522,824	480,281
Property, Plant and Equipment	291,171	284,319
Other assets	153,727	269,709
Total assets	5,045,079	4,932,084
Notes & Accounts payable	493,653	517,010
Other current liabilities	904,612	861,058
Noncurrent liabilities	94,991	100,346
Stockholders’ equity	3,551,823	3,453,670
Net Asset Value per Share	20.02	19.52

~~Weltrend Semiconductor, Inc.~~

P6

Copyright  Weltrend 2021, All Rights Reserved

EPS and Cash Dividends for the Past Three Years

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2018 2019 2020	2018 2019 2020	2018 2019 2020	2018 2019 2020
EPS (NT$)	0.86	1.84	1.94
Cash Dividend (NT$/share)	1.00	1.50	1.6

~~Weltrend Semiconductor, Inc.~~

P7

Copyright © Weltrend 2020, All Rights Reserved

A 32-year IC Design Company

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• Founded Founded in the Hsinchu Science Park in July, 1989 NT$1.78 billion (US$59.3 millions)

• Capital

• Headcount 300 (as the end of 3Q21)  Self-owned brand IC product development and sales

• Main Business  ASIC product development and sales

• Value-added resale (VAR) for international name brand components (ex. ROHM)

• In 1995, awarded with Taiwan’s 4th National Award of Outstanding Small & Medium

• Honors Enterprises, being the first company from Science Park to win the title.  First listed on Taiwan OTC market in 1997 and then subsequently listed on Taiwan's mainboard, TWSE, in 2000 (Ticker 2436).

• Awarded with “Taiwan Technology Fast 50” by Deloitte and named multiple times as one of companies with best ROE and ROI by renowned financial magazines in Taiwan.

• ADAS R&D Team Awarded with the 17th Annual Technology Management Award by CSMOT.

• Ranked Top 20% in 2016 Corporate Governance Evaluation and Awarded Most Improved Company.

• Named “Top 10 Consumer Electronics Solution Provider in APAC – 2019” by Embedded Advisor magazine

~~Weltrend Semiconductor, Inc.~~

P8

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Product Portfolio

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Power & Analog

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SMART APPLICATIONS
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Display

Consumer

General Purpose MCU

Power IC/USB PD Controller/Motor Driver/LED Driver

• Supervisor ICs for PC, server, and game console SPS

• USB PD, Qualcomm® Quick Charge[TM] , and other Proprietary Quick Charging Controllers

• PWM Controller and SR Controller for USB PD and Qualcomm Quick Charge chargers

• Motor Driver and BLDC Motor Controller

Display MCU/ADAS Processor

• Sub-MCU, with energy saving, DVI sensor, and HDMI CEC function for LCD TV/MFM and Multi-Media System; USB PD with DP alternate mode for portable LCD monitor or applications where dual-port/dual-role functions are required to support both charging and DP alt-mode at the same time

• Automotive Around View Monitor (AVM) Video Processors, Smart Camera Processor and AI Box for ADAS and Image Processor

• ISP for automotive, industrial, and surveillance camera modules

Consumer MCU/POS/mPOS/Barcode Decoder

• MCU for portable health care devices

• Heart rate monitor for smartphone and wearable devices

• USB HID for Keyboard, Mouse, Dongle, and Game Pads

• MSR decoder, smart card interface IC, and barcode decoder for POS systems

• Barcode decoder for payment scanner and door access control systems

8-bit MCU (ADC/ADC+LCD Type)/32-bit MCU

• 8-bit MCU (ADC Type): 4KB~16KB Flash ROM

• 8-bit MCU (ADC+LCD Type): 8KB~16KB Flash ROM

• 32-bit MCU: 32KB~192KB Flash ROM; Ultra-Low Power

~~Weltrend Semiconductor, Inc.~~

P9

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Q & A

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www.weltrend.com.tw

~~Weltrend Semiconductor, Inc.~~

P10

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THANK YOU!

~~Weltrend Semiconductor, Inc.~~

P11

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