Weltrend — Interim / Quarterly Report 2022

Mar 8, 2023

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

Investor Conference

Tony Lin Cindy Guo President CFO and Spokesperson

March 8, 2023

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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 2022, All Rights Reserved

2022 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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2022 % 2021 % YoY %	2022 % 2021 % YoY %	2022 % 2021 % YoY %	2022 % 2021 % YoY %	2022 % 2021 % YoY %	2022 % 2021 % YoY %
Net sales	2,888,153	100	3,601,983	100	(20)
Gross Profit	843,621	29	1,105,869	31	(24)
Operating Exp.	(600,177)	(21)	(645,912)	(18)	(7)
Selling & Adm.	(261,292)	(9)	(273,175)	(7)	(4)
R & D Exp.	(338,885)	(12)	(372,737)	(11)	(9)
Operating Income	243,444	8	459,957	13	(47)
Net Non-Operating Income	(103,888)	(3)	367,589	10	(128)
Income Before Tax	139,556	5	827,546	23	(83)
Income Tax Exp.	(31,686)	(1)	(76,202)	(2)	(58)
Net Income	107,870	4	751,344	21	(86)
EPS	0.83		4.25		(80)

~~Weltrend Semiconductor, Inc.~~

P3

Copyright  Weltrend 2022, All Rights Reserved

4Q22 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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4Q22 % 4Q21 % YoY %	4Q22 % 4Q21 % YoY %	4Q22 % 4Q21 % YoY %	4Q22 % 4Q21 % YoY %	4Q22 % 4Q21 % YoY %	4Q22 % 4Q21 % YoY %
Net sales	670,758	100	970,952	100	(31)
Gross Profit	141,108	21	345,990	36	(59)
Operating Exp.	(160,657)	(24)	(164,414)	(17)	(2)
Selling & Adm.	(66,301)	(10)	(70,022)	(7)	(5)
R & D Exp.	(94,356)	(14)	(94,392)	(10)	(0)
Operating (loss) Income	(19,549)	(3)	181,576	19	(111)
Net Non-Operating Income	(24,916)	(4)	28,520	3	(187)
(loss) Income Before Tax	(44,465)	(7)	210,296	22	(121)
Income Tax benefit (Exp.)	17,515	3	(25,063)	(3)	(170)
Net (loss) Income	(26,950)	(4)	185,033	19	(115)
EPS	0.05		1.05		(95)

~~Weltrend Semiconductor, Inc.~~

P4

Copyright  Weltrend 2022, All Rights Reserved

4Q22 Consolidated Income Statement (QoQ)

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(Expressed in NT$K)

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4Q22 % 3Q22 % QoQ %	4Q22 % 3Q22 % QoQ %	4Q22 % 3Q22 % QoQ %	4Q22 % 3Q22 % QoQ %	4Q22 % 3Q22 % QoQ %	4Q22 % 3Q22 % QoQ %
Net sales	670,758	100	606,384	100	11
Gross Profit	141,108	21	163,836	27	(14)
Operating Exp.	(160,657)	(24)	(162,458)	(27)	(1)
Selling & Adm.	(66,301)	(10)	(73,365)	(12)	(10)
R & D Exp.	(94,356)	(14)	(89,093)	(15)	6
Operating (loss) Income	(19,549)	(3)	1,378	0	(1519)
Net Non-Operating Income	(24,916)	(4)	(21,958)	(4)	13
loss Before Tax	(44,465)	(7)	(20,580)	(4)	116
Income Tax benefit (Exp.)	17,515	3	(7,424)	(1)	(336)
Net loss	(26,950)	(4)	(28,004)	(5)	(4)
EPS	0.05		(0.15)		133

~~Weltrend Semiconductor, Inc.~~

P5

Copyright  Weltrend 2022, All Rights Reserved

Balance Sheet Summary

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(Expressed in NT$K)

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2022/12/31 2022/9/30	2022/12/31 2022/9/30	2022/12/31 2022/9/30
Cash & Marketable Securities	1,732,738	1,842,591
Notes & Accounts receivable	783,555	844,541
Inventories	1,590,085	1,757,431
Property, Plant and Equipment	295,660	307,173
Goodwill & Intangible assets	1,166,346	1,185,229
Other assets	423,231	425,119
Total assets	5,991,615	6,362,084
Notes & Accounts payable	241,919	418,304
Other current liabilities	1,769,269	1,921,205
Noncurrent liabilities	215,772	259,896
Stockholders’ equity	3,764,655	3,762,679
Net Asset Value per Share	17.85	17.64

~~Weltrend Semiconductor, Inc.~~

P6

Copyright  Weltrend 2022, All Rights Reserved

EPS and Cash Dividends for the Past 5 Years

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2018 2019 2020 2021 2022	2018 2019 2020 2021 2022	2018 2019 2020 2021 2022	2018 2019 2020 2021 2022	2018 2019 2020 2021 2022	2018 2019 2020 2021 2022
EPS (NT$)	0.86	1.84	1.94	4.25	0.83
Cash Dividend (NT$/share)	1.00	1.50	1.6	3	1.20

~~Weltrend Semiconductor, Inc.~~

P7

Copyright © Weltrend 2022, All Rights Reserved

A 34-year IC Design Company

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Founded	Founded in the Hsinchu Science Park in July, 1989	Founded in the Hsinchu Science Park in July, 1989
Capital	NT$1.78 billion (US$59.3 millions)
Main Business Headcount	 Weltrend-branded IC products and ASICs  Sentelic-branded IC products and ASICs  Value-added resale (VAR) for international name brand components (ex. ROHM) 300 Weltrend-only; 350+ group total (as end of 4Q22) merged in Aug, 2022
Honors		In 1995, awarded with Taiwan’s 4th National Award of Outstanding Small & Medium 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
		Receives 2021 EE Awards Asia’s Best Power IC of the Year Award

~~Weltrend Semiconductor, Inc.~~

P8

Copyright © Weltrend 2023, All Rights Reserved

Product Portfolio

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• AC/DC switching regulators

• PWM controllers

• Synchronous rectifier (SR)

• USB PD controllers

• DFP (Source) controllers

• DRP (Source/Sink) controllers

• Fast charge protocol controllers

• Sink controllers

• Source controllers

• E-marker IC

• Supervisor ICs

• Wireless power controllers

• LED drivers

• ADAS SoCs

• Barcode decoders

• Display MCUs

• Imaging processors

• Projector processors

• Video display processors

• Boosted NFC cards

• Smart card interface ICs and Magnetic stripe decoders

• Touch screen controllers

• USB

• USB-C connectivity

• 8-bit MCUs

  • General-purpose MCUs

• 32-bit MCUs

  • Andes-based 32-bit MCUs

  • Arm-based 32-bit MCUs

• Application-specific MCUs

  • USB-based HID controllers

  • • USB host and SD port file management controllers

  • Vital sign measurement MCUs

• USB-based HID controllers

• Op amps

• General-purpose op amps

• Power op amps

• Motor drivers

• BLDC motor drivers and controllers

~~Weltrend Semiconductor, Inc.~~

P9

Copyright © Weltrend 2023, All Rights Reserved

Historical Revenues, Shipment, and Product Mix

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2022 Product Mix (Consolidated)

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Consolidate Revenues -19.8% YoY
NT$m US$m
3,500 120
-14% YoY
3,000
100
37%
2,500 Own Brand
80
2,000 Distribution
60
1,500
63%
40
1,000
-23% YoY
500 20
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2022 Product Mix (Own Brand)
Shipment (K pcs)
-5% YoY
350,000
300,000 25%
250,000
200,000 Smart Applications
150,000
Power
100,000
50,000
75%
0
-28% YoY
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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Note: Own brand only

~~Weltrend Semiconductor, Inc.~~

P10

Copyright © Weltrend 2023, All Rights Reserved

2022 Product Mix (YoY)

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(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)
	2022	%	2021	%	YoY
Power	1,352,582	47%	1,872,476	52%	-28%
Smart Applications	456,265	16%	480,429	13%	-5%
Own Brand Products	1,808,847	63%	2,352,905	65%	-23%
Distribution Products	1,079,306	37%	1,249,078	35%	-14%
Total	2,888,153	100%	3,601,983	100%	-20%

~~Weltrend Semiconductor, Inc.~~

P11

Copyright © Weltrend 2022, All Rights Reserved

4Q22 Product Mix (YoY)

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(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)
	4Q22	%	4Q21	%	YoY
Power	277,210	41%	539,179	55%	-49%
Smart Applications	145,107	22%	125,657	13%	+15%
Own Brand Products	422,317	63%	664,836	68%	-36%
Distribution Products	248,441	37%	306,116	32%	-19%
Total	670,758	100%	970,952	100%	-31%

~~Weltrend Semiconductor, Inc.~~

P12

Copyright © Weltrend 2022, All Rights Reserved

4Q22 Product Mix (QoQ)

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(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)	(Expressed in NT$K)
	4Q22	%	3Q22	%	QoQ
Power	277,210	41%	217,552	36%	+27%
Smart Applications	145,107	22%	124,355	21%	+17%
Own Brand Products	422,317	63%	341,907	56%	+24%
Distribution Products	248,441	37%	264,477	44%	-6%
Total	670,758	100%	606,384	100%	+11%

~~Weltrend Semiconductor, Inc.~~

P13

Copyright © Weltrend 2022, All Rights Reserved

+

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• Upon the completion of tender offer (NT$1.12bn) in Aug, 2022, Sentelic is now a majority owned (51%) subsidiary of Weltrend

• High degree of synergies in technologies, products, customer base, and supply chain

• A combined market share of close to 20% for motor controllers for cooling fan used in servers for the fast growing datacenter market

R&D Synergy and Scaling Product Portfolio Expansion 研發能量提升 產品市場擴張

1+1>>2

Customer Coverage Expansion 客戶覆蓋延伸

Supply Chain Scaling 生產效能提升

~~Weltrend Semiconductor, Inc.~~

CONFIDENTIAL

P14

Copyright © Weltrend 2021, All Rights Reserved

Recent Business Highlights

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2022.3	Weltrend Announces Availability of Ultra-SmallGaN-based USB PD Power Adapter Reference Design
2022.5	Weltrend Announced Availability ofIndustry’s First USB PD 3.1 Controllers
2022.5	Weltrend Announces Availability ofUSB-C/DisplayPort to HDMI 2.0/VGA Converters with USB PD 3.1
2022.5	Weltrend Announces Availability of the WT6620FUSB PD 3.1 Controller with DisplayPort Alternate Mode
2022.7	Weltrend Announces Appointments ofNew President and Senior Executives
2022.8	Weltrend Successfully Completed the Tender Offer to Acquire the Shares ofSentelicat a Price of NT$72.9
2023.1	Transphorm and Weltrend Semiconductor Partner to Release IntegratedGaN System- in-Package

~~Weltrend Semiconductor, Inc.~~

P15

Copyright © Weltrend 2022, All Rights Reserved

Q & A

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www.weltrend.com.tw

~~Weltrend Semiconductor, Inc.~~

P16

Copyright © Weltrend 2022, All Rights Reserved

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THANK YOU!

~~Weltrend Semiconductor, Inc.~~

P17

Copyright © Weltrend 2023, All Rights Reserved