WT — Interim / Quarterly Report 2021

Jun 30, 2021

2021 First Quarter Investor Conference April 27, 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 S.E.Asia & India; total 5 warehouses in Taiwan, HK, Shenzhen China, Korea, and Singapore) to cover over 8,000 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

World Semi Revenue Forecast: Strong Growth Continues to Break 600B Milestone in 2022

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Billions of Dollars and Revenue Growth
CAGR (2021-25): 6.8%
6.3%
650
10.4% 3.1% $649
-1.6%
600 CAGR (2016-20): 6.8%
$611
$602
16.9% $592
550
$545
500 12.9%
10.4%
450 21.9% $476 -11.3% $466
400 $422 $422
3.3%
350
$346
300
250
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source：Gartner, 2021/3
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1. Overview

Worldwide Non-Memory Semi Revenue Forecast: Strong Growth Continues to Break 400B Milestone in 2022

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Billions of Dollars and Revenue Growth
CAGR (2021-25): 6.1%
3.5%
4.3%
450
3.8% $459
5.0% $443
CAGR (2016-20): 6.0% $425
400 14.1% $410
$390
350 9.3%
7.5% -0.2% $342
300 10.0% $313 $313
3.5% $291
250 $265
200
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source：Gartner, 2021/3
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1. Overview

Asia (ex-Japan) Semi Distribution Market Continues Outgrowing Global Semi & Semi Distribution Market

Asia/Pacific Distribution Market Revenue and Share of Global Semi Distribution Market

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120 CAGR (2016-20): 9.6%
72.9%
110
68.9% $112
69.7%
100 $105
67.5% $101
90 $94
80
64.7%
70 $75
60
50
2016 2017 2018 2019 2020
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Source：Gartner, 2021/3
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1. Overview

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NR (Net Revenue)
CAGR(2016-20): 25%
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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1. Overview

WT Continues Expanding Market Share in Target Competitive Market

WT’s Market Share of Top 10 Distributors, Asia/Pacific

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20%
20.7%
19.8%
15% 17.0%
13.6%
10% 11.3%
5%
0%
2016 2017 2018 2019 2020
WT’s Market Share of Top 4 Distributors, Asia/Pacific
30%
28.6%
25% 27.1%
24.1%
20%
19.1%
15%
15.3%
10%
5%
0%
2016 2017 2018 2019 2020
Source：Gartner, 2021/3
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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

K t	1Q21	4Q20	QQ 1Q20	YY
ey accouns	Amount %	Amount %	Amount % o	o
Net Operating revenues Gross profit Operating expenses Operating income Financing costs Others Earning before tax Income tax expense Profit after tax	97,646 100.00% 3,465 3.55% (1,450) -1.48% 2,015 2.06% (149) -0.15% 32 0.04% 1,898 1.94% (402) -0.41% 1,510 1.55%	109,090 100.00% 3,031 2.78% (1,463) -1.34% 1,568 1.44% (159) -0.15% 172 0.16% 1,581 1.45% (343) -0.31% 1,238 1.13%	-10% 77,476 100.00% 14% 2,480 3.20% -1% (1,325) -1.71% 29% 1,155 1.49% -6% (403) -0.52% -81% 34 0.04% 20% 786 1.01% 17% (170) -0.22% 22% 616 0.80%	26% 40% 9% 74% -63% -6% 141% 136% 145%
EPS (in dollars)	1.92	1.57	1.04
Weighted average shares (M shares) Pro forma EPS (in dollars) Outstanding shares as of 3/31 (M shares)	788 1.91 791	787 1.57 788	592 1.04 593

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2. Financial Update

Balance Sheet

Unit: NT$M

Key accounts	1Q21		Amount % 4Q20	1Q20
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	5,297 4 58,936 44 49,477 37 1,960 - 19,771 15		3,627 3 60,850 46 44,314 34 2,301 2 19,918 15	11,800 11 46,695 43 43,566 40 2,347 1 5,040 5
Total Assets	135,441 100		131,010 100	109,448 100
Short-term loans Accounts payable Other current liabilities Long-term loans	31,662 23 51,017 38 3,608 3 400 -		24,062 18 54,946 42 3,605 3 800 1	47,059 43 32,940 30 4,783 4 - -
Other liabilities	1,494 1		1,480 1	2,185 2
Total Liabilities Total Equity	88,181 65 47,260 35		84,893 65 46,116 35	86,967 79 22,481 21
Indices	1Q21		4Q20	1Q20
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	134% 65% 187% 0.57		134% 65% 184% 0.46	123% 79% 387% 1.57

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2. Financial Update

NR by Geography (Ship-to Destination)

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QoQ -17%
0.4% 0.3% 0.6% 0.7% 1.0% 1.3% 1.5% 1.5% 100
100% 2.3% 3.0% 3.3% 90 4Q20
3.6% 3.2% 2.9% 6.6% 6.3% 6.2% 5.4% 8.2% 80 (Left)
5.8% 4.8% 5.6% 3.6% 2.8% 2.0% 2.2%4.6% 2.9% 70 vs.
6.4%
8.4% 8.0% 6.9% 60 1Q21
80% 50 (Right )
40
30
20
QoQ +34% QoQ +36%
10 QoQ +18%
60%
0
China Taiwan Korea S.E.Asia &
India
40% 87.9% 88.7% 87.6% 80.7% 81.9% 84.1% 86.3% 80.5%
90
YoY +26%
80
1Q20
20% 70 (Left)
60 vs.
1Q21
50
(Right )
40
0%
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 30
China Taiwan Korea S.E.Asia & India Others 20
YoY +4% YoY +57%
10 YoY +2%
0
China Taiwan Korea S.E.Asia & India
Revenue (NT$B)
Revenue (NT$B)
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2. Financial Update

NR by Customer Base

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90
100.0% 4.2%2.0% 3.8%2.0% 3.3%2.3% 4.7% 4.2% 2.4%3.0% 3.0%2.3% 4.5% 80 QoQ -24% 4Q20
4.1% 3.1% 2.9% 70 (Left)
vs.
60 1Q21
22.9%
80.0% 26.7% 26.7% 26.6% 50 (Right )
32.3% 27.8% 31.7% 31.8%
40 QoQ +24%
30
20
60.0% 10 QoQ +13% QoQ +34%
0
Taiwan China Korea S.E.Asia &
Customer Customer Customer India Customer
40.0%
71.8%
67.5% 67.7% 68.0%
61.5% 63.4% 61.0% 60.8% 70
YoY +21%
60 1Q20
20.0%
50 (Left)
vs.
40 YoY +44% 1Q21
30 (Right )
0.0%
20
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
10 YoY -11% YoY +21%
Taiwan Customer China Customer 0
Taiwan China Korea S.E.Asia &
Korea Customer S.E.Asia & India Customer
Customer Customer Customer India Customer
Revenue (NT$B)
Revenue (NT$B)
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2. Financial Update

NR by Application

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100.0% 3.4% 3.1% 2.6% 3.1% 3.2% 3.0% 2.7% 2.5% 70 QoQ -27% 4Q20
5.6% 4.9% 5.0% 5.3% 5.7% 5.3% 5.1% 6.4% 60 (Left)
50 vs.
10.5% 8.2% 7.4% 8.5% 7.9% 6.7% 6.5% 8.3% 40 1Q21
80.0% 14.1% 12.1% 14.1% 13.6% 13.0% 10.4% 12.8% 30 QoQ +17% QoQ +10% (Right )
15.5% 20 QoQ +14% QoQ +12%
17.8% 10
19.2%
60.0% 18.9% 23.5% 0
23.7% 23.2%
23.7% 30.8%
40.0%
1Q20
53.7% 57.5% 50 YoY +30% (Left)
50.8% 45.3% 48.5% 46.8% vs.
20.0% 41.3% 38.8% 40 1Q21
(Right )
30
YoY +23%
20
YoY +14%
0.0%
YoY +23%
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 10 YoY +52%
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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2.50 EPS 20%
ROE%
2.00
14.2%
15%
13.0%
12.3%
12.0% 11.7%
1.50
10.8% 10.7% 10.8%
10%
1.00
5%
0.50
1.06 1.38 1.21 1.04 1.07 1.46 1.57 1.92
0.00 0%
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
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2. Financial Update

ROWC vs. NWC/Sales

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0.25 20%
NWC/Sales
ROWC
0.20
14.0%
15%
13.5%
12.5%
12.1% 12.2%
0.15
10.6%
10%
10.1%
0.10 8.1%
5%
0.05
0.17 0.12 0.12 0.18 0.16 0.13 0.12 0.15
0.00 0%
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
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2. Financial Update

Operating Cash Cycle

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90 AR INV AP Operating cash cycle
64
62
60
60
46 50
46
42
40
30
0
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
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3. Business Outlook

We currently expect 2Q21 :

• Revenue : between NT$92 billion ~ NT$98 billion, at a forecast

• exchange rate of 28.1 NT Dollars to 1 US Dollar

• Revenue guidance between 0% ~ 6% QoQ decrease and 23%

• ~ 31% YoY growth

• Gross profit margin : between 3.65% ~ 3.85%

• Operating profit margin : between 2.05% ~ 2.25%

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Thank You !

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

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