Weltrend — Investor Presentation 2021

Mar 11, 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

March 11, 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

2020 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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2020/1-12 % 2019/1-12 % YoY %	2020/1-12 % 2019/1-12 % YoY %	2020/1-12 % 2019/1-12 % YoY %	2020/1-12 % 2019/1-12 % YoY %	2020/1-12 % 2019/1-12 % YoY %	2020/1-12 % 2019/1-12 % YoY %
Net sales	2,619,977	100	2,322,116	100	13
Cost of good sold	(1,953,708)	(74)	(1,746,791)	(75)	12
Gross Profit	666,269	26	575,325	25	16
Operating Exp.	(539,926)	(21)	(519,148)	(22)	4
Selling & Adm.	(212,813)	(8)	(208,967)	(9)	2
R & D Exp.	(327,113)	(13)	(310,181)	(13)	5
Operating Income	126,343	5	56,177	3	125
Net Non-Operating Income	235,956	9	310,630	13	-24
Income Before Tax	362,299	14	366,807	16	-1
Income Tax Exp.	(20,795)	(1)	(40,685)	(2)	-49
Net Income	341,504	13	326,122	14	5
EPS	1.94		1.84		5

~~Weltrend Semiconductor, Inc.~~

P3

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4Q20 Consolidated Income Statement (YoY)

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(Expressed in NT$K)

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4Q20 % 4Q19 % YoY %	4Q20 % 4Q19 % YoY %	4Q20 % 4Q19 % YoY %	4Q20 % 4Q19 % YoY %	4Q20 % 4Q19 % YoY %	4Q20 % 4Q19 % YoY %
Net sales	757,625	100	599,809	100	26
Cost of good sold	(566,344)	(75)	(451,926)	(75)	25
Gross Profit	191,281	25	147,883	25	29
Operating Exp.	(157,563)	(21)	(145,561)	(24)	8
Selling & Adm.	(63,240)	(8)	(54,983)	(9)	15
R & D Exp.	(94,323)	(13)	(90,578)	(15)	4
Operating Income	33,718	4	2,322	1	1,352
Net Non-Operating Income	150,340	20	85,827	14	75
Income Before Tax	184,058	24	88,149	15	109
Income Tax (Exp.) Benefit	(16,734)	(2)	(7,765)	(1)	116
Net Income	167,324	22	80,384	14	108
EPS	0.95		0.46		107

~~Weltrend Semiconductor, Inc.~~

P4

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4Q20 Consolidated Income Statement (QoQ)

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(Expressed in NT$K)

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4Q20 % 3Q20 % QoQ %	4Q20 % 3Q20 % QoQ %	4Q20 % 3Q20 % QoQ %	4Q20 % 3Q20 % QoQ %	4Q20 % 3Q20 % QoQ %	4Q20 % 3Q20 % QoQ %
Net sales	757,625	100	720,422	100	5
Cost of good sold	(566,344)	(75)	(537,218)	(75)	5
Gross Profit	191,281	25	183,204	25	4
Operating Exp.	(157,563)	(21)	(151,655)	(21)	4
Selling & Adm.	(63,240)	(8)	(60,198)	(8)	5
R & D Exp.	(94,323)	(13)	(91,457)	(13)	3
Operating Income	33,718	4	31,549	4	7
Net Non-Operating Income	150,340	20	121,467	17	24
Income Before Tax	184,058	24	153,016	21	20
Income Tax (Exp.) Benefit	(16,734)	(2)	(3,129)	-	435
Net Income	167,324	22	149,887	21	12
EPS	0.95		0.85		12

~~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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2020/12/31 2019/12/31	2020/12/31 2019/12/31	2020/12/31 2019/12/31
Cash & Marketable Securities	2,555,086	2,313,460
Notes & Accounts receivable	879,384	699,809
Inventories	403,095	357,989
Property, Plant and Equipment	275,556	242,261
Other assets	196,208	189,739
Total assets	4,309,329	3,803,258
Notes & Accounts payable	326,119	322,120
Other current liabilities	688,894	377,117
Noncurrent liabilities	107,061	131,058
Stockholders’ equity	3,187,255	2,972,963
Net Asset Value per Share	18.09	16.94

~~Weltrend Semiconductor, Inc.~~

P6

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EPS and Cash Dividend Trend 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 301 (as the end of 4Q20)  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

• ISP for Automotive , IP Cam, and Surveillance Camera

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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Historical Revenues, Shipment, and Product Mix

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2020 Overall Product Mix

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Consolidate Revenues +12.8% YoY
NT$m US$m
90
2,500
80
70
2,000
60
1,500 50
40
1,000
30
20
500
10
0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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+3% YoY
37%
自有產品
代理產品
63%
+19% YoY
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2020 Self-owned Product Mix

Shipment (K pcs)

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250,000
200,000
150,000
100,000
50,000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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+33% YoY
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-12% YoY
23.00%
Smart Applications
Power
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Weltrend Semiconductor, Inc.
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P10

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Q & A

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www.weltrend.com.tw

~~Weltrend Semiconductor, Inc.~~

P11

Copyright © Weltrend 2021, All Rights Reserved

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THANK YOU!

~~Weltrend Semiconductor, Inc.~~

P12

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