WPG — Annual Report 2021

Mar 31, 2021

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WPG Holdings Ltd.
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Mar. 31[st] ., 2021

Safe Harbor Notice

• These forward-looking statements, which may include statements regarding WPG’ future results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WPG’ current expectations.

• Actual results may differ materially from those expressed or implied in these forwardlooking statements for a variety of reasons, including, among other things: the cyclical nature of our industry; our dependence on introducing new products on a timely basis; our dependence on growth in the demand for our products; our ability to compete effectively; our ability to successfully expand our capacity; our dependence on key personnel; general economic and political conditions, including those related to the IC industry; possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates.

• Our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure beyond that which is imposed by law, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.

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Agenda

Welcome

4Q20 Financial Highlights

Cliff Yuan

Q&A

Cliff Yuan

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Result Highlights

	Unit:NT$million item Net Sales Gross Margin Operating Expenses Operating Income Operating Margin Net Income EPS (NT$)(1) Net Book Value (NT$)(1) Total Assets Total Liabilities Total Equity Net Working Capital Free Cash Flow KEY Indices(2) ROWC NWC/Sales ROE Gearing (1).Weighted average common shares outstanding (2).Annualized	4Q20	3Q20	4Q19	QoQ(%)	YoY(%)	2020	2019
		159,044 3.60% (3,207) 2,525 1.59% 2,087	169,987 3.62% (3,398) 2,759 1.62% 2,257	145,773 3.97% (3,273) 2,515 1.73% 1,735	(6.4) -2 bp (5.6) (8.5) -4 bp (7.5)	9.1 -37 bp (2.0) 0.4 -14 bp 20.3	609,886 3.78% (13,000) 10,050 1.65% 8,123	527,601 4.25% (12,716) 9,713 1.84% 6,453
		1.24 33.04 233,977 167,974 66,003 105,747 (1,152) 9.6% 0.17 12.9% 1.15 1,679	1.34 234,450 170,301 64,149 100,973 20,210 10.9% 0.15 14.2% 1.12 1,679	1.03 230,347 166,380 63,967 116,830 998 8.6% 0.20 11.8% 1.18 1,679	-138 bp -126 bp	+94 bp +117 bp	4.77 233,977 167,974 66,003 105,747 17,825 9.5% 0.17 12.6% 1.15 1,679	3.84 230,347 166,380 63,967 116,830 (1,414) 8.3% 0.22 11.0% 1.18 1,679

Statements of Comprehensive Income

Unit:NT$million

Item 4Q20 Revenue 159,044 COGS (153,311) Gross Profit 5,733 Gross Margin 3.60% Operating Expenses (3,207) Operating Income 2,525 Operating Margin 1.59% Net Non-operating Items (27) Net Financing costs (413) Foreign Exchange Gains/Losses 62 Others 323 Profit Before Tax 2,498 Tax (389) Extraordinary Gain - Minority (22) Profit After Tax 2,087 Net Margin 1.31% EPS (NT$)(1) 1.24 Tax % 16% (1).Weighted average common shares outstanding 1,679	3Q20 169,987 (163,830) 6,157 3.62% (3,398) 2,759 1.62% 48 (418) 155 311 2,807 (522) - (28) 2,257 1.33% 1.34 19% 1,679	QoQ(%) (6.4) (6.4) (6.9) (5.6) (8.5) NM (1.4) (59.9) (11.0) (25.4) N/A (7.5)	4Q19 145,773 (139,985) 5,788 3.97% (3,273) 2,515 1.73% (397) (573) 110 66 2,118 (365) - (17) 1,735 1.19% 1.03 17% 1,679	YoY(%) 9.1 9.5 (1.0) (2.0) 0.4 (93.2) (28.0) (43.3) 18.0 6.7 N/A 20.3	2020 609,886 (586,836) 23,050 3.78% (13,000) 10,050 1.65% (162) (1,889) 680 1,047 9,888 (1,687) - (77) 8,123 1.33% 4.77 17% 1,679	2019 527,601 (505,173) 22,428 4.25% (12,716) 9,713 1.84% (1,525) (2,292) 554 213 8,188 (1,682) - (53) 6,453 1.22% 3.84 21% 1,679

Balance Sheet

Unit:NT$million

Unit:NT$million	4Q20	3Q20	4Q19
item	Amount	% Amount	% Amount %
Cash & Marketable Securities Accounts Receivable - Trade Inventory Current Assets Others	11,107 111,610 57,100 198,011 35,966	5 13,048 48 113,513 24 56,721 85 200,700 15 33,749	6 10,332 4 48 112,731 49 24 67,722 29 86 205,966 89 14 24,381 11
Total Assets	233,977	100 234,450	100 230,347 100
Current Interest-bearing Debt Accounts Payble Accrued Liabilities and Others Current Liabilities Long-term Interest-bearing Debt Others	70,402 62,963 13,291 146,656 18,643 2,675	30 61,333 27 69,261 6 12,315 63 142,909 8 24,647 1 2,745	26 79,950 35 30 63,623 28 5 13,386 6 61 156,959 68 11 7,331 3 1 2,090 1
Total Liabilities	167,974	72 170,301	73 166,380 72
Total Equity	66,003	28 64,149	27 63,967 28
KEY Indices(1)
Net Working Capital (NT$million)	105,747	100,973	116,830
AR Turnover (Days)	65	60	69
Inventory Turnover (Days)	34	35	45
AP Turnover (Days)	39	36	41
Average Collection Periods (Days)	59	60	72
Current Ratio	135%	140%	131%
Gearing	1.15	1.12	1.18

(1).Annualized

Cash Flows

Unit:NT$million -Income before Income Tax -Changes of NWC -Adjustment & Others From Operation -Other Financial Instruments -Capital Expenditure -Marketable Financial Instruments -Others From Investment -Financial Debt -Cash Dividends -Preferred Shares -Others From Financing Cumulative translation adjustments Net Cash Position Change Ending Cash Balance	4Q20 2,498 (4,564) 914 (1,152)	3Q20 2,807 20,031 (2,628) 20,210	4Q19 2,118 (3,063) 1,944 998
	(1,155) (473) (1,251) 1,106 (1,773)	(342) (210) (399) (1,505) (2,456)	(941) (112) 21 (8,016) (9,048)
	3,066 - - (203) 2,863	(11,783) (4,145) - 6 (15,922)	11,544 - - (104) 11,440
	(1,871) (1,933) 11,020	(1,528) 305 12,953	(2,998) 392 9,993

Consolidated Revenue

Unit: NT$billion

+21% YoY (in USD) +15.6% YoY (in NTD)

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Sales breakdown by Geography/ Customer

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TBM：Taiwan-Based Customers CBM：China Based Customers

Sales breakdown by Application/ Device Type

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Gross Margin vs. Operating Margin

Gross Profit Operating Income Gross Margin Operating Margin

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NT$million
6%
6,000
4.45% 4.40%
4.25%
5,000 3.97% 4.02% 3.93%
3.62% 3.60% 4%
4,000
5,979 5,788 6,157
5,687 5,887
3,000 4,974 5,273 5,733
2.00%
1.85% 1.81%
1.73% 1.67% 1.72% 1.62% 1.59% 2%
2,000
2,759
2,584 2,550 2,515 2,574 2,525
1,000 2,064 2,191
0 0%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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ROWC vs. NWC/Sales

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NWC/Sales(Q) ROWC(Q) ROWC(YTD)
0.25
12% 10.9%
9.9%
9.6%
9.0%
8.6%
8.4% 8.5% 0.20
9.9%
9.5%
8% 8.9%
8.4%
8.3% 7.9%
7.4%
0.15
4%
0.22 0.20 0.20 0.20 0.23 0.20 0.15 0.17
0% 0.10
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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Note ： Annualized

ROE vs. EPS

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NT$ EPS(Q) ROE(Q) ROE(YTD)
20%
14.2%
13.5% 15%
1.0 12.9%
12.1% 12.0% 11.8%
12.7% 12.6%
12.0%
10%
10.9% 11.0%
10.6% 10.3%
9.5%
0.5
5%
0.78 0.97 1.06 1.03 0.99 1.19 1.34 1.24
0.0 0%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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Note ： Annualized

Operating Cash Cycle

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90
86
82
80
72 72 73
70 71
60
60
59
50
40
30
20
10
0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
AR in Days Inventory in Days
AP in Days Net Cash Operating Cycle Days
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Note ： Annualized

More Solutions Launched

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https://www.wpgdadatong.com/tw

60 Solutions Launched in 4Q20

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ANC Bluetooth
3D Object Picking
Headphones Solution
System Solution
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60 Solutions Launched in 4Q20

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Dimmable LED 100W Driver

BLDC Electric Machine Control Air Purifier Solution

Medical 15W Modular

DC/DC Power

BLDC Electric Carrier

Solution

Recap of Recent Major Events

 WPG named Mike Chang as its new Chief Executive Officer and KD Tseng as Chief Sustainability Officer. (2021/1/1)

• WPG Holdings Introduced “Employee Stock Ownership Trust” (ESOT) in January 2021.

• WPG Board of Directors Resolved to Convene the 2021 Annual Shareholders’ Meeting. (2021/3/30)

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http://www.WPGholdings.com IR@WPGholdings.com

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