WPG — Interim / Quarterly Report 2022

Jun 8, 2022

May 17[th] ., 2022

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.

Agenda

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Welcome 1Q22 Financial Highlights & 2Q22 Outlook Cliff Yuan

Q&A

Scott Lin/ Cliff Yuan

Unit:NT$million

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)	1Q22 1Q22 Forecast 209,865 180 ~ 190B 3.86% 3.7% ~ 3.9% (3,875) 4,220 2.01% 1.65% ~ 1.85% 3,444 2.05 40.05		4Q21 199,342 3.60% (3,895) 3,276 1.64% 2,705 1.61	1Q21 177,115 3.71% (3,585) 2,986 1.69% 2,419 1.44	QoQ(%) 5.3 +26 bp (0.5) 28.8 +37 bp 27.3	YoY(%)
						18.5 +15 bp 8.1 41.3 +32 bp 42.4
Total Assets Total Liabilities Total Equity Net Working Capital	323,620 245,501 78,120 164,822		287,739 216,513 71,225 144,670	272,512 203,924 68,588 125,417
Free Cash Flow KEY Indices(2) ROWC NWC/Sales ROE Gearing (1).Weighted average common shares outstanding	(20,204) 10.2% 0.20 18.7% 1.60 1,679		9,510 9.1% 0.18 15.9% 1.49 1,679	(16,409) 9.5% 0.18 14.5% 1.34 1,679	+119 bp +274 bp	+72 bp +416 bp

(2).Annualized

Statements of Comprehensive Income

Unit:NT$million

Unit:NT$million
Item Revenue COGS Gross Profit Gross Margin Operating Expenses Operating Income Operating Margin Net Non-operating Items Net Financing costs FX Gains/Losses Investment Income/Losses Others Profit Before Tax Tax Minority Profit After Tax Net Margin EPS (NT$)(1) Tax % (1).Weighted average common shares outstanding	1Q22 209,865 (201,770) 8,096 3.86% (3,875) 4,220 2.01% (48) (634) 106 436 44 4,173 (687) (41) 3,444 1.64% 2.05 16% 1,679	4Q21 199,342 (192,171) 7,171 3.60% (3,895) 3,276 1.64% 63 (582) 40 909 (304) 3,339 (611) (23) 2,705 1.36% 1.61 18% 1,679	QoQ(%) 5.3 5.0 12.9 (0.5) 28.8 NM 8.9 164.8 (52.1) NM 25.0 12.5 27.3	1Q21 177,115 (170,544) 6,571 3.71% (3,585) 2,986 1.69% (6) (435) (43) 395 78 2,980 (524) (37) 2,419 1.37% 1.44 18% 1,679	YoY(%)
					18.5 18.3
					23.2
					8.1
					41.3
					701
					45.6 NM 10.5 (43.3)
					40.0 31.1
					42.4

Balance Sheet

Unit:NT$million Cash & Marketable Securities Accounts Receivable - Trade Inventory Current Assets Others Total Assets Current Interest-bearing Debt Accounts Payble Accrued Liabilities and Others Current Liabilities Long-term Interest-bearing Debt Others Total Liabilities Total Equity	1Q22 4Q21 1Q21
	14,885 5 14,416 5 13,952 5 150,304 46 134,392 47 132,946 49 99,474 31 86,215 30 72,930 27 280,262 87 246,449 86 236,295 87 43,359 13 41,290 14 36,217 13
	323,620 100 287,739 100 272,512 100
	100,625 31 89,898 31 84,128 31 84,955 26 75,937 26 80,458 30 17,006 5 16,389 6 13,236 5 202,587 63 182,224 63 177,822 65 40,165 12 31,478 11 23,350 9 2,749 1 2,811 1 2,752 1
	245,501 76 216,513 75 203,924 75
	78,120 24 71,225 25 68,588 25
KEY Indices(1) Net Working Capital (NT$million) AR Turnover (Days) Inventory Turnover (Days) AP Turnover (Days) Average Collection Periods (Days) Current Ratio Gearing	164,822 144,670 125,417 62 63 63 42 42 35 36 39 38 68 67 59 138% 135% 133% 1.60 1.49 1.34

(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	1Q22 4,173 (20,127) (4,250) (20,204)	4Q21 1Q21 3,339 2,980 1,796 (19,911) 4,375 521 9,510 (16,409)
	(221) (231) (836) (105) (1,393)	41 995 (240) (284) (63) (89) (25) 7 (286) 630
	19,413 (212) 19,201	(4,227) 18,432 (326) 2 (4,554) 18,434
	2,868 473 14,881	(910) 176 3,761 2,830 14,408 13,850

Consolidated Revenue

Unit: NT$billion

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800
199 4Q
700
600
159
+20.0% YoY (in USD) 3Q
132 202
500 146 +18.5% YoY (in NTD)
170
400
150 2Q
141
200
300
150
140
129
200 1Q
210
177
100 123 112 131
0
2018 2019 2020 2021 2022
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Sales breakdown by Geography/ Customer

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4% 3% 4% 3% 3%
100% 5% 5% 6% 6% 6%
80% Others
ASEAN
60%
81% 83% 81% 82% 82% CN/HK
TWN
40%
20%
10% 9% 9% 9% 9%
0%
1Q21 2Q21 3Q21 4Q21 1Q22
100% 9% 8% 9% 9% 9%
80% MNC /
Others
59% 60% 58% 57% 58%
CBM
60%
TBM
40%
20% 32% 32% 33% 34% 33%
0%
1Q21 2Q21 3Q21 4Q21 1Q22
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TBM：Taiwan-Based Customers CBM：China Based Customers

Sales breakdown by Application/ Device Type

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100% 10% 10% 10% 10% 10%
3% 3% 4% 3% 3% Others
7% 8% 8% 7% 8%
Automotive
80% 16% 17% 13% 12% 11%
Industry
60% 28% 31% 32%
30% 28% Consumer
40% Communication
34% 34% 37% 37% 36% Computer
20%
0%
1Q21 2Q21 3Q21 4Q21 1Q22
Others
2% 2% 2% 2% 2%
100% 11% 11% 10% 10% 9%
5% 5% 5% 5% 5% Optical
80% PEMCO
28% 30% 31% 27% 29%
60% Memory
13% 13%
14% 14% 13%
9% 9% Discrete & Logic
40% 10% 9% 9%
Analog & Mixed
20% 30% 29% 30% 34% 33% Signal IC
Core Component
0%
1Q21 2Q21 3Q21 4Q21 1Q22
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Gross Margin vs. Operating Margin

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Gross Profit Operating Income Gross Margin Operating Margin

NT$million

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6%
8,000
7,000
4.01%
3.93% 3.86%
6,000 3.71%
3.60%
4%
5,000 8,029
7,929
8,096
7,171
4,000 6,571
2.01%
1.93%
1.82%
3,000 1.69% 1.64%
2%
2,000 3,900 4,220
3,642
3,276
2,986
1,000
0 0%
1Q21 2Q21 3Q21 4Q21 1Q22
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ROWC vs. NWC/Sales

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NWC/Sales(Q) ROWC(Q) ROWC(YTD)
0.25
12%
10.7%
10.1%
9.5% 9.5%
10.2% 0.20
9.6%
9.2% 9.1%
8%
0.15
4%
0.18 0.18 0.18 0.18 0.20
0% 0.10
1Q21 2Q21 3Q21 4Q21 1Q22
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Note ： Annualized
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ROE vs. EPS

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NT$ EPS(Q) ROE(Q) ROE(YTD)
19.4%
19.1%
2.5 20%
16.9%
18.7%
2.0 17.6%
17.1%
15%
15.9%
14.5%
1.5
10%
1.0
5%
0.5
1.44 1.66 1.90 1.61 2.05
0.0 0%
1Q21 2Q21 3Q21 4Q21 1Q22
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Note ： Annualized

Operating Cash Cycle

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90
80
66 67 68
70
61
59
60
50
40
30
20
10
0
1Q21 2Q21 3Q21 4Q21 1Q22
AR in Days Inventory in Days
AP in Days Net Cash Operating Cycle Days
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Note ： Annualized

2Q22 Summary Forecast

Based on our current business outlook, management expects ：

Unit:NT$million

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Item 2Q22 Forecast (2) 1Q22 (1)
Revenue 190,000 ~ 200,000 209,865
Gross Profit 7,030 ~ 7,800 8,096
Gross Mar in 3.70% ~ 3.90% 3.86%
g
Operating Expenses 3,800 ~ 4,000 3,875
Operating Income 3,230 ~ 3,800 4,220
O eratin Mar in 1.70% ~ 1.90% 2.01%
p g g
Profit Before Tax 2,981 ~ 3,508 4,173
Profit After Tax 2,303 ~ 2,725 3,444
EPS (NT$) 1.13 ~ 1.38 2.05
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(1). Reviewed

(2). At a forecast FX rate of 29 NT dollars to 1 US dollar averaged over 2Q22.

Prepared by WPG based on IFRS.

More Solutions Launched

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16% 16% 16% 16% 16%
16%
14%
60
3
3
2
4 1 12%
3
7 1
1 8 10%
40 1
21
8%
27
1 20
2 3 6%
3
1
11
4
20
4%
6
17 6 5 7
2 3 3
4 6 4 11 2%
1 3
21 6 6 6 2
0 2 1 2 0%
1Q21 2Q21 3Q21 4Q21 1Q22
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https://www.wpgdadatong.com/tw

27 Solutions Launched in 1Q22

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u 車聯網暨駕駛行為解決方案 2022-03-07
u 汽車LED前大燈方案 2022-03-31
u CAN總線警示氛圍燈 2022-02-09
u 1KW600V工業馬達驅動器整合方案 2022-03-22
u Non-Auto BMS 方案 2022-03-17
u 低壓無刷電機應用方案 2022-02-22
u BLE鍵盤方案 2022-02-14
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u TYPE-C PD電源輸出方案 2022-03-15
u 專為消費性電子供電的同步降壓轉換器 2022-03-01
u 高效率主動式橋式整流器電源方案 2022-01-18
u 大功率240W可調光電源方案 2022-01-20
u 同步降壓IC應用於5G基地台電源配置 2022-03-10
u 驅動IC應用於工業馬達控制器 2022-01-04
u 原邊調節準諧振AC/DC醫療級插牆式10W適配器 2022-03-24
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AD DC Medical Plug Wall

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240W Dimmable Power
Solution
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10W Adapter Solution

Industrial Motor Controller Solution

BLDC Motor Solution

27 Solutions Launched in 1Q22

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u Wi-Fi 6 多媒體互動情境燈光聖誕樹解決方案 2022-03-02
u Wi-Fi6 SmartHome之屏控方案 2022-01-12
u 工業數據採集終端方案 2022-02-16
u 三相並聯電錶解決方案 2022-01-25
超低功耗藍牙技術應用於超市及廠庫產品管控的便捷電
u 2022-01-10
子標籤
u 無所不能的 AI ! 讓你做出 Killer 應用 !! 2022-01-06
u Wi-Fi 6 AIoT 邊緣運算語音辨識方案 2022-01-01
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u TWS耳機上的應用 2022-01-14 u 即時互動智慧醫療解決方案 2022-03-28 u 高性能電動滑板車電機驅動方案 2022-02-23 u 高集成電機控制方案 2022-02-07 u 5M高速TYPE-C CABLE線的設計方案 2022-01-27 u 便攜式LED燈具方案 2022-01-07

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AI Smart Medical Solution

AIoT Edge Computing Speech recognition Solution

Electric Scooter Motor Control Solution

Wi-Fi 6 Multimedia Interactive Situation Christmas tree Solution

Recap of Recent Major Events

• WPG Board of Directors Resolved to Convene the 2022 Annual Shareholders’ Meeting on May 26th., 2022. (2022/2/28)

• ◼ WPG Board of Directors Resolved to Acquire Privately Placed Common Shares of EDOM Technology Co., Ltd. (2022/3/8)

◼ Board of Directors Approved NT$3.5 Cash Dividends Per Common Share and NT$2 Cash Dividends Per Preferred Shares A. (2022/03/22)

• WPG’s MSCI ESG Rating has Upgraded to “BBB”.

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