WT — Interim / Quarterly Report 2020

Jul 8, 2020

2020 First Quarter Result Overview

Agenda

1. Overview

2. Financial Update

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1. Overview

Strong secular growth with economies of scale

• A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT)

• Strategic focus on Asia region and Automotive & Internet of Things (IoT) applications

• 2019 revenues of NT$335bn, up 23% YoY

• 48 offices in Asia (33 offices in China and 15 offices in Korea, Taiwan, and

• South Asia) with over 9,000 customers

• Over 2,300 headcounts (over 700 sales, 250 PMs, and 450 FAEs)

• Completion of warehouse semi automation (total 6 warehouses in Taiwan, HK, Shenzhen China, Shanghai China, Korea, and Singapore)

• Completion of B2B service platform for major vendors and customers

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1. Overview

Harbin China Offices (33) Korea Offices (2) Shenyang Dalian Offices Across Asia Seoul Beijing Tianjin Qingdao Taiwan Offices (4) Yantai Zhengzhou Taipei, Headquarters Jinan Hsinchu Xian Ningbo Taichung Shanghai Wuxi Tainan Suzhou Nanjing South Asia Offices (9) Hangzhou Wenzhou New Delhi, N. India Hefei Chengdu Mumbai, N. India Mianyang Chongqing Pune, N. India Changsha Wuhan Vietnam (2) Fuzhou Fuqing Bangalore, S. India Xiamen Nanning Bangkok, Thailand Dongguan Foshan Penang, Malaysia Guangzhou Zhuhai Singapore Hong Kong Shenzhen

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1. Overview

NR (Net Revenue)

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CAGR(2016~2019)=31%
NT$B
400
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
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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

Key accounts	Y2019		Amount % Y2018	YoY
	Amount %
Net Operating revenues Gross profit Operating expenses Operating income Financing costs Others Earning before tax Income tax expense Non-Controlling Interests Profit after tax EPS(in dollars)	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		273,416 100.00% 10,645 3.89% (5,391) -1.97% 5,254 1.92% (1,698) -0.62% 65 0.02% 3,621 1.32% (842) -0.31% - - 2,779 1.01% 5.02	23% 1% 3% 0% 15% -9% -8% -9%
Weighted average shares (M shares)	585		554

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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

K t	1Q20	4Q19	QQ	1Q19	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 Non-Controlling Interests Profit after tax EPS (in dollars)	77,476 100.00% 2,480 3.20% (1,325) -1.71% 1,155 1.49% (403) -0.52% 34 0.05% 786 1.01% (170) -0.22% - - 616 0.80% 1.04	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% 1.21	-20% -12% -9% -15% -11% -15% -23% -13%	67,474 100.00% 2,322 3.44% (1,300) -1.93% 1,022 1.51% (527) -0.78% (5) -0.01% 490 0.73% (105) -0.16% - - 385 0.57% 0.67	15% 7% 2% 13% -24% 60% 62% 60%
Weighted average shares (M shares)	592	585		572

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2. Financial Update

Balance Sheet

Unit: NT$M

Key accounts	1Q20		Amount % 4Q19	1Q19
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	11,800 11 46,695 43 43,566 40 2,347 1 5,040 5		3,107 3 44,666 44 45,795 45 2,591 3 5,208 5	2,360 3 34,692 38 47,034 51 2,108 2 5,398 6
Total Assets	109,448 100		101,367 100	91,592 100
Short-term loans Accounts payable Other current liabilities Long-term loans	47,059 43 32,940 30 4,783 4 - -		26,580 26 45,690 45 3,412 4 - -	31,921 35 32,055 35 3,091 3 - -
Other liabilities	2,185 3		2,206 2	1,245 1
Total Liabilities Total Equity	86,967 79 22,481 21		77,888 77 23,479 23	68,312 75 23,280 25
Indices	1Q20		4Q19	1Q19
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	123% 79% 387% 1.57		127% 77% 332% 1.00	129% 75% 293% 1.27

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2. Financial Update

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NR by Geography (Ship-to Destination)
0.5% 0.5% 0.5% 0.4% 0.4%
100% 2.0% 1.8% 2.0% 2.3% 2.8%
5.1% 7.8% 7.4% 4.3% 3.5%
7.7% 6.0% 5.4%
7.7% 7.5%
80%
Others
60% ASEAN
40% 84.7% 82.2% 82.5% 87.0% 87.9% Korea
Taiwan
20%
China
0%
2015 2016 2017 2018 2019
350
YoY +24%
300
2018
250
(Left)
200 vs.
2019
150 (Right)
100
50 YoY +9% YoY -1% YoY +50%
0
China Taiwan Korea ASEAN
Revenue (NT$B)
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2. Financial Update

NR by Geography (Ship-to Destination)

	0.5%	0.5%	0.3%	0.3%		0.4%	0.4%	0.4%	0.3%	0.6%	0.7%		90		QoQ -26%	QoQ -26%
0% 20% 40% 60% 80% 100%	82.1% 7.9% 6.1% 3.4% 2Q18		89.3% 5.5% 3.0% 1.9% 3Q18	90.1% 4.2% 3.5% 1.9% 4Q18	87.2% 5.4% 4.5% 2.5% 1Q19		87.9% 5.8% 3.6% 2.3% 2Q19		88.7% 4.8% 3.2% 3.0% 3Q19	87.6% 5.6% 2.9% 3.3% 4Q19	80.7% 8.4% 3.6% 6.6% 1Q20	Revenue (NT$B) Revenue (NT$B)	0 10 20 30 40 50 60 70 80 20 30 40 50 60 70		China YoY +6%		Taiwan QoQ +20%		Korea QoQ -1%	ASEAN 4Q19 (Left) vs. 1Q20 (Right) QoQ +60% 1Q19 (Left) vs. 1Q20 (Right)
		China		Taiwan		Korea		ASEAN		Others			10				YoY	+79%	YoY -8%	YoY +203%
													0
															China		Taiwan		Korea	ASEAN

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2. Financial Update

NR by Customer Base

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%	45.8% 51.2% 54.4% 64.4% 65.3% 45.9% 38.5% 35.6% 28.7% 28.7% 6.1% 8.3% 8.1% 4.7% 3.9% 2.2% 1.9% 1.9% 2.3% 2.1% 2015 2016 2017 2018 2019 ASEAN Customer Korea Customer China Customer Taiwan Customer
Revenue (NT$B) 0 20 40 60 80 100 120 140 160 180 200 220 240	Taiwan Customer China Customer Korea Customer ASEAN Customer 2018 (Left) vs. 2019 (Right) YoY +14% YoY +2% YoY +23% YoY +24%

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2. Financial Update

NR by Customer Base

0% 20% 40% 60% 80% 100%	53.5% 68.2% 72.0% 62.8% 61.5% 67.5% 67.7% 63.4% 36.6% 26.5% 22.4% 30.4% 32.3% 26.7% 26.7% 27.8% 6.6% 3.4% 3.9% 4.7% 4.2% 3.8% 3.3% 4.1% 3.3% 1.9% 1.7% 2.1% 2.0% 2.0% 2.3% 4.7% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Taiwan Customer China Customer Korea Customer ASEAN Customer

Revenue (NT$B) 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 Revenue (NT$B)	Taiwan Customer China Customer Korea Customer ASEAN Customer QoQ -25% QoQ -17% QoQ -1% QoQ +64% 4Q19 (Left) vs. 1Q20 (Right)
	Taiwan Customer China Customer Korea Customer ASEAN Customer 1Q19 (Left) vs. 1Q20 (Right) YoY +16% YoY +5% YoY +0% YoY +157%

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2. Financial Update

NR by Application

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100% 3.8% 3.2% 3.8% 3.1% 2.9%
7.4% 6.9% 6.1% 5.2%
8.5% Others
10.3%
80% 15.3% 13.4% 13.2%
14.1%
16.5% Automotive
18.3% 17.6%
21.3%
60% 21.1% Industry & Instrument
20.7%
20.4% 20.6%
Consumer
40% 25.3%
48.3% Computing
20% 37.4% 37.9% 43.2%
27.0% Communication
0%
2015 2016 2017 2018 2019
180
YoY +37%
2018
160
(Left)
140 vs.
120 2019
(Right )
100
80 YoY +25%
60 YoY +4%
YoY +1%
40 YoY +3%
20
0
Communication Computing Consumer Industry & Instrument Automotive
Revenue (NT$B)
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2. Financial Update

NR by Application

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60
100% 4.3% 2.5% 2.4% 2.5% 3.4% 3.1% 2.6% 3.1% QoQ -32% 4Q19
5.3% 5.4% 5.3% 5.6% 4.9% 5.0% 5.3% 50 (Left)
7.5% vs.
9.2% 7.3% 8.4% 10.5% 8.2% 7.4% 8.5% 40 1Q20
80% 14.0% 13.7% 12.1% 30 QoQ -1% (Right )
15.9% 15.2% 14.1% 14.1% 20 QoQ -7%
15.5% QoQ -8%
10 QoQ -15%
20.1% 19.2%
60% 18.9% 18.9% 0
20.8% 24.1% 23.7%
23.7%
22.9%
40%
1Q19
52.3% 50.8% 53.7% 40 YoY +17% (Left)
46.3% 44.5% 45.3% vs.
20% 41.3%
30 1Q20
31.2% (Right )
YoY +13%
20
YoY +7%
0%
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 10 YoY +16% YoY +15%
0
Communication Computing
Consumer Industry & Instrument (I&I)
Automotive Others
Revenue (NT$B)
Revenue (NT$B)
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2. Financial Update

ROE vs. EPS

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19.2% EPS
2.00 20%
ROE%
1.50 14.2% 15%
12.4%
11.0% 12.0%
10.8%
10.7%
1.00 10%
6.8%
0.50 5%
1.12 1.79 1.06 0.67 1.06 1.38 1.21 1.04
0.00 0%
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
6.00 EPS 20%
ROE%
5.00
13.6% 15%
13.3%
4.00 12.9%
11.2%
3.00 10.1% 10%
2.00
5%
1.00
4.49 3.61 5.26 5.02 4.32
0.00 0%
2015 2016 2017 2018 2019
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2. Financial Update

ROWC vs. NWC/Sales

	ROWC vs. NWC/Sales
0.00 0.05 0.10 0.15 0.20 0.25 0.30	0.24 0.12 0.13 0.18 0.17 0.12 0.12 0.18 9.8% 16.1% 11.4% 8.2% 10.6% 13.5% 12.1% 8.1% 0% 5% 10% 15% 20% 25% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 NWC/Sales ROWC
	2
0.00 0.05 0.10 0.15 0.20 0.25 0.30	0.25 0.23 0.22 0.16 0.13 8.8% 7.5% 9.6% 11.7% 11.7% NWC/Sales ROWC

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2. Financial Update

Operating Cash Cycle

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AR INV AP Operating cash cycle
90
83
65
62
60
60
49 46 46
42
30
0
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
AR INV AP Operating cash cycle
90
77
72 72
59
60
49
30
0
2015 2016 2017 2018 2019
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Thank You !

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

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