WT — Call Transcript 2021

Mar 9, 2021

2020 Fourth Quarter Investor Conference February 25, 2021

Agenda

1. Overview

2. Financial Update

3. Business Outlook

4. Questions and Answers

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Safe Harbor Statement

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

• Actual results may differ materially from those expressed or implied in these forward-looking 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 dependence on key personnel; general economic and political conditions; 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.

• In addition, any financial information contained here within is presented in conformity with International Financial Reporting Standards (IFRSs).

• Except as required by law, our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure, 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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1. Overview

• A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT), providing supply chain management such as capital flow, information flow, inventory, and technical support

• Sophisticated frameworks in Asia (total 45 offices in China, Taiwan, Korea, and South Asia; total 5 warehouses in Taiwan, HK, Shenzhen China, Korea, and Singapore) to cover over 9,000 customers

• Over 2,300 headcounts (over 650 sales, 250 PMs, and 450 FAEs)

• Digital Transformation to enhance operation efficiency and reduce expense by intelligent operation management system

• Published Sustainability Reports since 2018 (More details in 2019 WT ESG Report)

• 2016-2020 revenues CAGR of 25% and 2020 revenues closed to US$12bn

• Maintaining sustainable growth by expanding value-added service and market share

• Establishment of a leading and trustworthy brand in distribution industry by core value - Integrity, Discipline and Teamwork with Respect for the Individual

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1. Overview

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Korea Offices (4)
China Offices (28)
Seoul
Harbin
Shenyang Offices Across Asia Gyeonggi-do
Dalian Daegu
Beijing Gwangju
Qingdao
Taiwan Offices (4)
Zhengzhou
Jinan Taipei, Headquarters
Xian
Hsinchu
Ningbo
Shanghai Taichung
Wuxi
Suzhou Tainan
Nanjing South Asia Offices (9)
Hangzhou
Wenzhou New Delhi, N. India
Hefei
Chengdu Mumbai, N. India
Chongqing
Changsha Pune, N. India
Wuhan
Fuzhou Hanoi , Vietnam
Xiamen
Ho Chi Min, Vietnam
Dongguan
Foshan
Bangalore, S. India
Guangzhou
Zhuhai
Bangkok, Thailand
Hong Kong
Shenzhen
Penang, Malaysia
Singapore
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1. Overview

NR (Net Revenue)

CAGR(2016~2020)=25%

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NT$B
400
353
350 335
300
273
250
189
200
144
150
108 [114 ]
88
100 80
71
64
47
50 30 34 39 41
21
5 9 10 14
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

K t	4Q20	3Q20	QQ	4Q19	YY
ey accouns	Amount %	Amount %	o	Amount %	o
Net Operating revenues Gross profit Operating expenses Operating income Financing costs Others Earning before tax Income tax expense Profit after tax	109,090 100.00% 3,031 2.78% (1,463) -1.34% 1,568 1.44% (159) -0.15% 172 0.17% 1,581 1.45% (343) -0.31% 1,238 1.13%	91,862 100.00% 2,761 3.01% (1,353) -1.47% 1,407 1.53% (180) -0.20% 220 0.24% 1,447 1.58% (295) -0.32% 1,152 1.25%	19% 10% 8% 11% -12% -22% 9% 16% 7%	96,774 100.00% 2,814 2.91% (1,456) -1.50% 1,358 1.40% (455) -0.47% 26 0.03% 929 0.96% (222) -0.23% 707 0.73%	13% 8% 0% 15% -65% 562% 70% 55% 75%
Basic EPS (in dollars)	1.57	1.46		1.20
Weighted average shares (M shares)	787	787		590

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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

Key accounts	Y2020	Amount % Y2019	YoY
	Amount %
Net Operating revenues Gross profit Operating expenses Operating income Financing costs Others Earning before tax Income tax expense Profit after tax Basic EPS (in dollars) Weighted average shares (M shares) Pro forma EPS (in dollars) Outstanding shares as of 12/31 (M shares)	353,152 100.00% 10,775 3.05% (5,458) -1.55% 5,316 1.51% (991) -0.28% 474 0.13% 4,799 1.36% (1,004) -0.28% 3,795 1.06% 5.22 727 4.81 788	335,187 100.00% 10,800 3.22% (5,547) -1.65% 5,253 1.57% (1,953) -0.58% 9 0.00% 3,309 0.99% (778) -0.23% 2,531 0.76% 4.32 585 4.28 591	5% 0% -2% 1% -49% 45% 29% 50%

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2. Financial Update

Balance Sheet

Unit: NT$M

Key accounts	4Q20		Amount % 3Q20	4Q19
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	3,627 3 60,850 46 44,314 34 2,301 2 19,918 15		4,675 4 49,840 42 41,881 36 2,388 2 18,580 16	3,107 3 44,666 44 45,795 45 2,591 3 5,208 5
Total Assets	131,010 100		117,364 100	101,367 100
Short-term loans Accounts payable Other current liabilities Long-term loans	24,062 18 54,946 42 3,605 3 800 1		27,890 24 45,633 39 2,951 2 800 1	26,580 26 45,690 45 3,412 4 - -
Other liabilities	1,480 2		1,446 1	2,206 2
Total Liabilities Total Equity	84,893 65 46,116 35		78,720 67 38,644 33	77,888 77 23,479 23
Indices	4Q20		3Q20	4Q19
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	134% 65% 184% 0.46		129% 67% 204% 0.62	127% 77% 332% 1.00

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2. Financial Update

NR by Geography (Ship-to Destination)

0 10 20 30 40 50 60 70 80 90 100 Revenue (NT$B) Revenue (NT$B) 0 10 20 30 40 50 60 70 80 90 100	China Taiwan Korea ASEAN 3Q20 (Left) vs. 4Q20 (Right) QoQ +3% QoQ +31% QoQ -15% QoQ +22%
	China Taiwan Korea ASEAN 4Q19 (Left) vs. 4Q20 (Right) YoY +84% YoY -14% YoY -7% YoY +11%

0% 20% 40% 60% 80% 100%
	87.2% 87.9% 88.7% 87.6% 80.7% 81.9% 84.1% 86.3% 5.4% 5.8% 4.8% 5.6% 8.4% 8.0% 6.4% 4.6% 4.5% 3.6% 3.2% 2.9% 3.6% 2.8% 2.0% 2.2% 2.5% 2.3% 3.0% 3.3% 6.6% 6.3% 6.2% 5.4%

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2. Financial Update

NR by Geography (Ship-to Destination)

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0.5% 0.5% 0.4% 0.4% 1.2%
100.0% 1.8% 2.0% 2.3% 2.8% 6.1%
7.8% 7.4% 4.3% 3.5%
6.0% 5.4% 2.6%
7.7% 7.5% 6.6%
80.0%
Others
60.0% ASEAN
40.0% 82.2% 82.5% 87.0% 87.9% 83.6% Korea
Taiwan
20.0%
China
0.0%
2016 2017 2018 2019 2020
350
YoY +0%
300
2019
250
(Left)
200 vs.
2020
150 (Right)
100
50 YoY +30% YoY -21% YoY +126%
0
China Taiwan Korea ASEAN
Revenue (NT$B)
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2. Financial Update

NR by Customer Base

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%	Revenue (NT$B) 62.8% 61.5% 67.5% 67.7% 63.4% 61.0% 68.0% 71.8% 30.4% 32.3% 26.7% 26.7% 27.8% 31.7% 26.6% 22.9% 4.7% 4.2% 3.8% 3.3% 4.1% 3.1% 2.4% 2.3% 2.1% 2.0% 2.0% 2.3% 4.7% 4.2% 3.0% 3.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Taiwan Customer China Customer Korea Customer ASEAN Customer 0 10 20 30 40 50 60 70 80 90 0 10 20 30 40 50 60 70 80 90 Revenue (NT$B)	Taiwan Customer China Customer Korea Customer ASEAN Customer QoQ +25% QoQ +2% QoQ +14% QoQ +19% 3Q20 (Left) vs. 4Q20 (Right)
		Taiwan Customer China Customer Korea Customer ASEAN Customer 4Q19 (Left) vs. 4Q20 (Right) YoY +20% YoY -3% YoY -21% YoY +47%

12

2. Financial Update

NR by Customer Base

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%	51.2% 54.4% 64.4% 65.3% 66.7% 38.5% 35.6% 28.7% 28.7% 26.8% 8.3% 8.1% 4.7% 3.9% 2.9% 1.9% 1.9% 2.3% 2.1% 3.6% 2016 2017 2018 2019 2020 ASEAN Customer Korea Customer China Customer Taiwan Customer
Revenue (NT$B) 0 20 40 60 80 100 120 140 160 180 200 220 240 260	Taiwan Customer China Customer Korea Customer ASEAN Customer 2019 (Left) vs. 2020 (Right) YoY +81% YoY -22% YoY -2% YoY +8%

13

2. Financial Update

NR by Application

44.5% 41.3% 24.1% 23.7% 15.2% 15.5% 8.4% 10.5% 5.3% 5.6% 2.5% 3.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 1Q19 2Q19	44.5% 41.3% 24.1% 23.7% 15.2% 15.5% 8.4% 10.5% 5.3% 5.6% 2.5% 3.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 1Q19 2Q19	44.5% 41.3% 24.1% 23.7% 15.2% 15.5% 8.4% 10.5% 5.3% 5.6% 2.5% 3.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 1Q19 2Q19	50.8% 18.9% 14.1% 8.2% 4.9% 3.1% 3Q19	53.7% 45.3% 19.2% 23.7% 12.1% 14.1% 7.4% 8.5% 5.0% 5.3% 2.6% 3.1% 4Q19 1Q20	53.7% 45.3% 19.2% 23.7% 12.1% 14.1% 7.4% 8.5% 5.0% 5.3% 2.6% 3.1% 4Q19 1Q20	38.8% 30.8% 13.6% 7.9% 5.7% 3.2% 2Q20	38.8% 30.8% 13.6% 7.9% 5.7% 3.2% 2Q20	48.5% 23.5% 13.0% 6.7% 5.3% 3.0% 3Q20	57.5% 17.8% 10.4% 6.5% 5.1% 2.7% 4Q20
	Communication			Computing
	Consumer			Industry &			Instrument (I&I)
	Automotive			Others

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70 QoQ +41% 3Q20
60 (Left)
50 vs.
4Q20
40
(Right )
30 QoQ -10%
QoQ -5%
20
QoQ +15% QoQ +14%
10
0
4Q19
70 YoY +21% (Left)
60 vs.
4Q20
50
(Right )
40
YoY +5%
30
YoY -3%
20
YoY -1% YoY +15%
10
0
Revenue (NT$B)
Revenue (NT$B)
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14

2. Financial Update

NR by Application

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100.0% 3.2% 3.8% 3.1% 2.9% 3.0%
6.9% 6.1% 5.2% 5.3%
8.5% 7.3% Others
10.3%
13.4% 13.2%
80.0% 14.1% 12.6%
16.5% Automotive
18.3% 17.6%
60.0% 21.1% 23.3% Industry & Instrument
20.7%
20.4% 20.6%
Consumer
40.0%
48.3% 48.5% Computing
20.0% 37.4% 37.9% 43.2%
Communication
0.0%
2016 2017 2018 2019 2020
180 YoY +6%
2019
160
(Left)
140 vs.
120 2020
(Right )
100
YoY +16%
80
60 YoY -6%
YoY -10%
40 YoY +9%
20
0
Communication Computing Consumer Industry & Instrument Automotive
Revenue (NT$B)
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15

2. Financial Update

ROE vs. EPS

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EPS
2.00 20%
ROE%
14.2%
1.50 15%
12.0%
12.3%
10.8% 10.7% 10.8% 11.7%
1.00 10%
6.8%
0.50 5%
0.67 1.06 1.38 1.21 1.04 1.07 1.46 1.57
0.00 0%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
6.00 EPS 20%
ROE%
5.00
13.6% 15%
13.3%
4.00
11.2% 10.9%
3.00 10.1% 10%
2.00
5%
1.00
3.61 5.26 5.02 4.32 5.22
0.00 0%
2016 2017 2018 2019 2020
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16

2. Financial Update

ROWC vs. NWC/Sales

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0.30 25%
NWC/Sales
0.25
20%
ROWC
0.20
13.5% 15%
12.1% 12.2%
0.15 12.5%
10.6%
10%
10.1%
0.10
8.2%
8.1%
5%
0.05
0.18 0.17 0.12 0.12 0.18 0.16 0.13 0.12
0.00 0%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
0.30 25%
NWC/Sales
0.25
20%
ROWC
0.20
15%
11.7% 11.7% 10.6%
0.15
9.6%
10%
7.5%
0.10
5%
0.05
0.23 0.22 0.16 0.13 0.14
0.00 0%
2016 2017 2018 2019 2020
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17

2. Financial Update

Operating Cash Cycle

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AR INV AP Operating cash cycle
90
64
65
62 60
60
46 46
42
40
30
0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
AR INV AP Operating cash cycle
90
77
72
59
60
49 49
30
0
2016 2017 2018 2019 2020
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3. Business Outlook

We currently expect 1Q21 :

• Revenue : between NT$92 billion ~ NT$98 billion, at a forecast exchange rate of 28.3 NT Dollars to 1 US Dollar

• Revenue guidance between 10% ~ 15% QoQ decrease and

• 19% ~ 26% YoY growth

• Gross profit margin : between 3.15% ~ 3.35%

• Operating profit margin : between 1.5% ~ 1.7%

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Thank You !

WT Microelectronics Co., Ltd. Website : www.wtmec.com

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