WT — Interim / Quarterly Report 2021

Jan 24, 2022

2021 Third Quarter Investor Conference November 5, 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 2,400 headcounts (over 700 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 WT Sustainability Website)

• 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): 8.0%
700 6.2%
8.9% 3.8%
650 $684
CAGR (2016-20): 6.8% -3.7%
26.9% $644 $644
600 $620
$591
550
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, 2021/10
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1. Overview

Worldwide Non-Memory Semi Revenue Forecast: Strong Growth Continues to Break 400B Milestone in 2021

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Billions of Dollars and Revenue Growth
CAGR (2021-25): 7.3%
500 3.0%
3.9%
2.6% $486
4.6%
450 $472
CAGR (2016-20): 5.9% 23.7% $454
$442
$423
400
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, 2021/10
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1. Overview

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NR (Net Revenue)
NT$B 2021F YoY: 24%
CAGR(2016-20): 25%
500 438
400 335 [353 ]
273
300
189
200
108 [114 144 ]
100 5 9 10 14 21 30 34 39 41 47 64 71 80 88
0
US$B
CAGR(2016-20): 27% 2021F YoY: 31%
20
15.62
15
10.84 [11.95 ]
9.07
10
6.22
5
0.17 0.25 0.30 [0.40 0.63 0.93 1.05 1.21 1.29 1.44 2.01 2.41 2.72 2.96 3.56 3.58 4.47 ]
0
Note: 2021 NR and YoY forecast based on 4Q21 NR guidance mid-point
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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

K t	3Q21	2Q21 QQ	3Q20	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	119,105 100.00% 4,612 3.87% (1,696) -1.42% 2,916 2.45% (187) -0.16% 251 0.22% 2,980 2.50% (700) -0.59% 2,304 1.93%	102,096 100.00% 17% 4,203 4.12% 10% (1,517) -1.49% 12% 2,686 2.63% 9% (158) -0.15% 18% 39 0.04% 544% 2,567 2.51% 16% (569) -0.56% 23% 2,001 1.96% 15%	91,862 100.00% 2,761 3.01% (1,354) -1.47% 1,407 1.53% (180) -0.20% 220 0.25% 1,447 1.58% (295) -0.32% 1,152 1.25%	30% 67% 25% 107% 4% 14% 106% 137% 100%
EPS (in dollars)	2.85	2.54	1.46
Weighted average shares (M shares)	789	788	787
Pro forma EPS (in dollars) Outstanding shares as of period end (M shares)	2.82 798	2.53 792	1.46 788

Note：3Q21 EPS calculation based on profit after tax deducting NT$57.5mn preferred stock dividend

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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

Key accounts	YTD 2021	Amount % YTD 2020	YoY
	Amount %
Net Operating revenues Gross profit Operating expenses Operating income Financing costs Others Earning before tax Income tax expense Profit after tax	318,847 100.00% 12,280 3.85% (4,663) -1.45% 7,617 2.39% (494) -0.15% 322 0.10% 7,445 2.33% (1,671) -0.52% 5,815 1.82%	244,062 100.00% 7,743 3.17% (3,995) -1.63% 3,748 1.54% (833) -0.34% 303 0.12% 3,218 1.32% (661) -0.27% 2,557 1.05%	31% 59% 17% 103% -41% 6% 131% 153% 127%
EPS (in dollars) Weighted average shares (M shares)	7.30 789	3.62 706
Pro forma EPS (in dollars) Outstanding shares as of period end (M shares)	7.22 798	3.24 788

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2. Financial Update

Balance Sheet

Unit: NT$M

Key accounts	3Q21		Amount % 2Q21	3Q20
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	4,364 3 75,437 44 65,811 39 2,409 1 22,041 13		5,062 4 61,920 44 53,985 38 2,134 1 19,201 13	4,675 4 49,840 42 41,881 36 2,388 2 18,580 16
Total Assets	170,062 100		142,302 100	117,364 100
Short-term loans	37,042 22		36,281 25	27,891 24
Accounts payable Other current liabilities Long-term loans	72,993 43 4,072 2 5,003 3		53,214 37 3,690 3 200 -	45,633 39 2,951 2 800 1
Other liabilities	1,147 1		1,526 1	1,445 1
Total Liabilities Total Equity	120,257 71 49,805 29		94,911 67 47,391 33	78,720 67 38,644 33
Indices	3Q21		2Q21	3Q20
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	130% 71% 241% 0.76		132% 67% 200% 0.66	129% 67% 204% 0.62

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2. Financial Update

NR by Geography (Ship-to Destination)

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0.6% 0.7% 1.0% 1.3% 1.5% 1.5% 1.5% 1.5% 100 QoQ +14%
100% 3.3% 90 2Q21
2.9%5.6% 6.6%3.6% 6.3%2.8% 6.2%2.0% 5.4%2.2%4.6% 8.2%2.9% 9.9% 11.4% 8070 (Left) vs.
6.4% 2.7%
8.4% 8.0% 6.9% 3.0% 60 3Q21
80% 7.6% 7.3% 50 (Right )
40
30
20 QoQ +34%
QoQ +12%
10 QoQ +30%
60%
0
China Taiwan Korea S.E.Asia &
India
40% 87.6% 80.7% 81.9% 84.1% 86.3% 80.5% 78.3% 76.8%
100 YoY +18%
90
80 3Q20
20% 70 (Left)
60 vs.
50 3Q21
40 (Right )
0% 30
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 20 YoY +48% YoY +138%
10 YoY +94%
China Taiwan Korea S.E.Asia & India Others
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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80
100.0% 3.3%2.3% 4.7% 4.2% 2.4%3.0% 3.0%2.3% 4.5% 6.0% 7.4% 70 QoQ +23% 2Q21
4.1% 3.1% 2.9% 3.4% (Left)
3.6% 60 vs.
3Q21
22.9% 50
80.0% 26.7% 27.8% 31.7% 26.6% 31.8% 40 QoQ +0% (Right )
34.4% 29.6%
30
20
QoQ +44%
60.0% 10 QoQ +24%
0
Taiwan China Korea S.E.Asia &
Customer Customer Customer India Customer
40.0%
71.8%
67.7% 68.0%
63.4% 61.0% 60.8% 56.2% 59.4% 80 YoY +13%
70
3Q20
20.0% 60 (Left)
50 vs.
YoY +44% 3Q21
40
(Right )
30
0.0%
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 20
YoY +220%
10 YoY +94%
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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50 2Q21
100.0% 2.6% 3.1% 3.2% 3.0% 2.7% 2.5% 3.1% 2.9%
5.0% 5.3% 5.7% 5.3% 5.1% 6.4% 6.4% 6.7% 40 QoQ +37% (Left)
vs.
7.4% 8.5% 7.9% 6.7% 6.5% 8.3% 9.9% 8.6% 30 QoQ +3% 3Q21
80.0% 12.1% 13.0% 10.4% QoQ +25% (Right )
14.1% 13.6% 12.8% 11.9% 20 QoQ +1%
13.7% QoQ +1%QoQ +22%
17.8% 10
19.2%
60.0% 23.7% 23.5% 23.2% 21.0% 0
30.8% 23.8%
9.4%
15.3%
40.0% 14.2% 14.5% 16.8%
16.6%
15.7%
17.3%
2Q20
48.1% 50 (Left)
20.0% 38.4% 34.3% 32.3% 32.1% YoY +21% vs.
28.7% 27.4% 40 3Q21
21.5%
YoY +16% (Right )
30
0.0% YoY +54% YoY +19%
20
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
YoY +66%
10 YoY +64%
Mobile Phone Communication
Computing Consumer 0
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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EPS
3.00 19.0% 20%
ROE%
16.9%
2.50
15%
13.0%
2.00 12.3%
12.0%
11.7%
10.7% 10.8%
1.50 10%
1.00
5%
0.50
1.21 1.04 1.07 1.46 1.57 1.92 2.54 2.85
0.00 0%
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
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2. Financial Update

ROWC vs. NWC/Sales

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0.25 NWC/Sales 20%
ROWC 17.1% 17.1%
0.20
14.0% 15%
12.1% 12.5%
0.15
12.2%
10.1% 10%
0.10 8.1%
5%
0.05
0.12 0.18 0.16 0.13 0.12 0.15 0.15 0.14
0.00 0%
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
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2. Financial Update

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Operating Cash Cycle
90 AR INV AP Operating cash cycle
64
60
60 53
50 51
46
42 40
30
0
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
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3. Business Outlook

We currently expect 4Q21 :

• Revenue : between NT$116 billion ~ NT$122 billion, at a

forecast exchange rate of 27.9 NT Dollars to 1 US Dollar

 Revenue mid-point guidance: flattish QoQ and 9% YoY growth

• Gross profit margin : between 3.65% ~ 3.85%

• Operating profit margin : between 2.25% ~ 2.45%

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Thank You !

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

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