WPG — Earnings Release 2020

May 27, 2020

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WPG Holdings Ltd.
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1Q20 Earning Release
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May. 27th, 2020

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

1Q20 Financial Highlights

Cliff Yuan

Cliff Yuan

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Unit:NT$million

Result Highlights

	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	1Q20 131,045 4.02% (3,082) 2,191 1.67% 1,659 0.99 32.97 248,922 183,065 65,857 118,806 (308) 7.4% 0.23 10.3% 1.23 1,679	4Q19 145,773 3.97% (3,273) 2,515 1.73% 1,735 1.03 230,347 166,380 63,967 116,830 998 8.6% 0.20 11.8% 1.18 1,679	1Q19 111,832 4.45% (2,909) 2,064 1.85% 1,304 0.78 188,164 131,710 56,455 98,789 9,293 8.4% 0.22 9.5% 1.05 1,679	QoQ(%) (10.1) +5 bp (5.9) (12.9) -5 bp (4.4) -123 bp -148 bp

Statements of Comprehensive Income Unit:NT$million

Item 1Q20 Revenue 131,045 COGS (125,772) Gross Profit 5,273 Gross Margin 4.02% Operating Expenses (3,082) Operating Income 2,191 Operating Margin 1.67% Net Non-operating Items (186) Net Financing costs (575) Foreign Exchange Gains/Losses 297 Others 92 Profit Before Tax 2,006 Tax (340) Minority (7) Profit After Tax 1,659 Net Margin 1.27% EPS (NT$)(1) 0.99 Tax % 17% (1).Weighted average common shares outstand 1,679	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	QoQ(%) (10.1) (10.2) (8.9) (5.9) (12.9) (53.2) 0.3 170.2 (5.3) (7.0) (4.4)	1Q19 111,832 (106,858) 4,974 4.45% (2,909) 2,064 1.85% (409) (619) 152 58 1,655 (342) (8) 1,304 1.17% 0.78 21% 1,679

Balance Sheet

Unit:NT$million	1Q20	4Q19	1Q19
item	Amount	% Amount	% Amount %
Cash & Marketable Securities Accounts Receivable - Trade Inventory Current Assets Others	13,262 108,632 81,536 219,773 29,149	5 10,332 44 112,731 33 67,722 88 205,966 12 24,381	4 5,603 3 49 83,484 44 29 69,387 37 89 171,609 91 11 16,555 9
Total Assets	248,922	100 230,347	100 188,164 100
Current Interest-bearing Debt Accounts Payble Accrued Liabilities and Others Current Liabilities Long-term Interest-bearing Debt Others	78,538 71,363 14,576 164,477 16,602 1,986	32 79,950 29 63,623 6 13,386 66 156,959 7 7,331 1 2,090	35 51,491 27 28 54,082 29 6 10,503 6 68 116,076 62 3 13,344 7 1 2,289 1
Total Liabilities	183,065	74 166,380	72 131,710 70
Total Equity	65,857	26 63,967	28 56,455 30
KEY Indices(1)
Net Working Capital (NT$million)	118,806	116,830	98,789
AR Turnover (Days)	77	69	74
Inventory Turnover (Days)	54	45	57
AP Turnover (Days)	49	41	46
Average Collection Periods (Days)	82	72	86
Current Ratio	134%	131%	148%
Gearing	1.23	1.18	1.05

(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 -Others From Financing Cumulative translation adjustments Net Cash Position Change Ending Cash Balance	1Q20 2,006 (2,081) (233) (308)	4Q19 2,118 (3,063) 1,944 998
	636 (5,086) (100) 1 (4,548)	(935) (112) 134 (8,135) (9,048)
	7,859 (112) 7,748	11,544 (104) 11,440
	343 3,235 13,228	(2,998) 392 9,993

Consolidated Revenue

Unit: NT$billion

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+20% YoY (in USD)
+17.2% 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%
4%
4,000
5,788
5,273
5,979
5,687
3,000
4,974 2.00%
1.85% 1.81%
1.73% 1.67%
2%
2,000
2,584 2,550 2,515
1,000 2,064 2,191
0 0%
1Q19 2Q19 3Q19 4Q19 1Q20
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ROWC vs. NWC/Sales

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

ROE vs. EPS

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

Operating Cash Cycle

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90
86
82
80
72 72
70 71
60
50
40
30
20
10
0
1Q19 2Q19 3Q19 4Q19 1Q20
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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16% 16% 16% 16% 16%
FAE/Total
16%
2 Industrial
14% %
60 2
Computer
1 2 5
2 2 1
1 2 2 12% % Consumer
3
1
3
Networking
10% %
43
40 24
27 Power
30 8% %
25
Automotive
6% Medical
7
6
20 12 8 1 8 4% Wearable Devices
8 4
7
3 3 3 12 Smart City
5 2 2 7 1 2%
4 Smart Home
4 8
6
3 4 4
0 1 0% AIoT
1Q19 2Q19 3Q19 4Q19 1Q20
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https://www.wpgdadatong.com/tw

53 Solutions Launched in 1Q20

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Printer Power Supply Solution

500W Medical Power Solution

Gaming Power Solution

PoE LED Driver Solution

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53 Solutions Launched in 1Q20

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LoRa-based Wireless

Electric Curtain Solution

On-Board Charger Solution

Bluetooth Car Charger FM Transmitter Solution

AC Electric Vehicle Charger Solution

Recap of Recent Major Events

 Board of Directors Resolved to Convene the 2020 Annual Shareholders' Meeting on June 24, 2020 (2020/03/24)

• Board of Directors Approved NT$2.4 Cash Dividend Per Common Share and NT$0.57534247 Cash Dividend Per Preferred Shares A (2020/04/28)

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

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