WT — Investor Presentation 2018

May 11, 2018

2018 First Quarter Investor Conference Presented by Cheryl Yang May 11, 2018

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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Agenda

1. Overview

2. Financial Update

3. Business Outlook

4. Recap of Recent Major Events

5. Questions and Answers

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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

• 2017 revenues of NT$189bn, up 31% YoY

• 45 offices in Asia (30 offices in China and 15 offices in Korea, Taiwan, and South Asia) with over 8,000 customers

• Over 2,000 headcounts after Maxtek acquisition in 4Q17 (over 650 sales, 200 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

China Offices (30)

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Korea Office (1)
Harbin
Seoul
Shenyang Offices Across Asia
Dalian
Beijing
Taiwan Offices (4)
Qingdao
Zhengzhou
Taipei, Headquarters
Jinan
Xian Hsinchu, R&D
Ningbo
Taichung
Shanghai
Wuxi Tainan
Suzhou
Kunshan South Asia Offices (10)
Nanjing
Hangzhou
New Delhi, N. India
Wenzhou
Hefei
Mumbai, N. India
Chengdu
Chongqing
Pune, N. India
Changsha
Wuhan
Vietnam
Fuzhou
Fuqing
Bangalore, S. India
Xiamen
Dongguan
Bangkok, Thailand
Shunde
Guangzhou
Penang, Malaysia
Zhuhai
Hong Kong Singapore
Shenzhen
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1. Overview

NR (Net Revenue)

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YoY=31%
NT$B
YoY=27%
200 189
180
CAGR(2011~2015)=12%
160
144
CAGR(2006~2010)=16%
140
120 114
108
100
88
80
80 71
64
60
47
39 41
34
40 30
21
20 9 10 14
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

K t	1Q18	1Q18	4Q17	QQ	1Q17	YY
ey accouns	Amount %	Guidance	Amount %	o	Amount %	o
Net Operating revenues Gross profit Operating expenses Operating income Financing costs Others Earning before tax	49,635 100.00% 2,288 4.61% (1,247) -2.51% 1,041 2.10% (346) -0.70% 18 0.04% 713 1.44%	48B~51B 4.4%~4.6% 2.0%~2.2%	59,844 100.00% 2,456 4.10% (1,373) -2.29% 1,083 1.81% (318) -0.53% 94 0.16% 859 1.44%	-17.06% +0.51ppt +0.22ppt +0.29ppt +0.17ppt -17.00%	38,378 100.00% 1,797 4.68% (979) -2.55% 818 2.13% (205) -0.53% 2 - 615 1.60%	29.33% -0.07ppt -0.04ppt -0.03ppt +0.17ppt 15.93%
Income tax expense	(133) -0.27%		(156) -0.26%	-14.74%	(112) -0.29%	18.75%
Non-Controlling Interests Profit after tax EPS(in dollars)	- - 580 1.17% 1.05		- - 703 1.18% 1.43	-17.50% -26.57%	- - 503 1.31% 1.06	15.31% -0.94%

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2. Financial Update

Balance Sheet

Unit: NT$M

Key accounts	1Q18		Amount % 4Q17	1Q17
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	2,542 3 31,765 41 35,426 46 2,929 4 4,837 6		2,288 3 32,326 43 33,114 44 2,625 4 4,813 6	2,913 5 20,509 36 24,043 42 5,419 9 4,359 8
Total Assets	77,499 100		75,166 100	57,243 100
Short-term loans Accounts payable Other current liabilities Long-term loans	29,385 38 22,239 29 3,451 4 670 1		25,862 34 24,463 33 2,125 3 982 1	20,970 37 16,484 29 1,627 2 - -
Other liabilities	1,703 2		1,653 2	1,546 3
Total Liabilities Total Equity	57,448 74 20,051 26		55,085 73 20,081 27	40,627 71 16,616 29
Indices	1Q18		4Q17	1Q17
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	132% 74% 287% 1.37		134% 73% 274% 1.22	135% 71% 245% 1.09

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2. Financial Update

NR by Geography (Ship-to Destination)

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0.5% 0.7% 0.4% 0.6% 0.5% 0.6% 0.5% 0.7% 60 QoQ -20%
100% 2.1% 1.7% 1.5% 2.3% 2.2% 2.0% 1.8% 2.6% 4Q17
7.1% 10.5% 7.0% 8.1% 8.1% 8.5% 5.7% 5.9% 50 (Left)
8.9% 7.2% 6.4% 9.2% 8.5% 7.1% 6.0% 8.1% 40 1Q18vs.
80% (Right )
30
20
QoQ +12% QoQ -14%
60% 10 QoQ +20%
0
China Taiwan Korea ASEAN
40% 81.4% 79.9% 84.7% 79.8% 80.7% 81.7% 86.0% 82.7%
60
50 1Q17
20% YoY +34% (Left)
40 vs.
1Q18
30 (Right )
0%
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 20
China Taiwan Korea ASEAN Others 10 YoY +14% YoY -6%
YoY +46%
0
China Taiwan Korea ASEAN
Revenue (NT$B)
Revenue (NT$B)
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2. Financial Update

NR by Customer Base

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100% 2.3% 1.7% 1.6% 2.0% 2.2% 2.0% 1.7% 2.8% 40 QoQ -19% 4Q17
7.3% 11.2% 7.8% 9.3% 8.6% 8.8% 6.4% 6.3% 35 (Left)
30 vs.
QoQ -16% 1Q18
25
80% (Right )
30.4% 34.1% 20
34.7%
35.7% 33.1% 36.5% 38.5% 15
46.3%
10
60% QoQ -18% QoQ +37%
5
0
Taiwan China Korea ASEAN
Customer Customer Customer Customer
40%
60.2% 55.6% 57.8% 56.2% 30 YoY +31%
51.4% 52.7% 50.7%
20% 44.1% 25 1Q17
(Left)
20 vs.
YoY +36%
1Q18
15 (Right )
0%
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 10
YoY -12%
5 YoY +81%
Taiwan Customer China Customer
Korea Customer ASEAN Customer 0
Taiwan China Korea ASEAN
Customer Customer Customer Customer
Revenue (NT$B)
Revenue (NT$B)
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2. Financial Update

NR by Application

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30
100% 3.4% 2.9% 3.0% 3.7% 4.0% 4.2% 3.4% 3.9% QoQ -31% 4Q17
25 (Left)
9.0% 6.9% 6.2% 7.2% 7.8% 6.6% 6.4% 7.3% vs.
20
1Q18
12.8% 10.9% 11.4% QoQ -9%
80% 15.5% 13.4% 14.9% 13.8% 13.5% 15 QoQ -10% (Right )
QoQ -2%
10
15.5% QoQ -5%
17.2%
17.1% 17.7% 16.4% 18.7% 5
19.5%
60% 21.8% 0
19.2%
19.0% 19.7%
18.9% 21.3%
21.5%
22.6%
40% 22.2%
4Q16
20 YoY +16% (Left)
45.2% 18 vs.
20% 41.3% 39.1% 37.7% 41.9% 35.1% 16 4Q17
31.2% 14
28.1% (Right )
12 YoY +47%
10 YoY +37%
YoY +30%
8
0% 6 YoY +31%
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 4
2
Communication Computing 0
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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EPS
6.00 ROE% 18.82% 20%
16.03%
5.00
14.05% 15.62%
13.42% 15%
12.62%
4.00 12.88% 12.01%
10.67%
9.55%
3.00 10%
2.00
5%
1.00 4.69%
0.00 0%
2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
ITEM 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
ROE% 14.05% 12.88% 9.55% 10.67% 16.03% 4.69% 12.01% 13.42% 18.82% 15.62% 12.62%
EPS 5.18 4.49 0.90 0.93 1.40 0.42 1.06 1.15 1.61 1.43 1.05
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2. Financial Update

ROWC vs. NWC/Sales

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0.30 NWC/Sales 25%
ROWC
0.25
20%
0.20 14.83%
15%
12.04%
0.15
9.04% 10.91% 10.57%
8.81% 8.72% 11.66% 11.66% 10%
0.10 9.26%
5%
0.05
4.54%
0.00 0%
2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
ITEM 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
NWC/Sales 0.15 0.25 0.25 0.24 0.19 0.18 0.18 0.19 0.18 0.17 0.23
ROWC 14.83% 8.81% 8.72% 9.04% 10.91% 4.54% 11.66% 11.66% 12.04% 10.57% 9.26%
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2. Financial Update

Operating Cash Cycle

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AR INV AP Operating cash cycle
100 93
85
80
80
72 73
67 68
65
61 60
60
52
40
20
0
2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Turnover days 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
AR 43 58 78 72 57 58 59 50 48 48 59
INV 50 54 59 59 49 46 58 59 52 50 66
AP (41) (40) (44) (46) (39) (39) (44) (41) (39) (38) (45)
Operating cash cycle 52 72 93 85 67 65 73 68 61 60 80
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3. Business Outlook

We currently expect 2Q18 :

• Revenue : between NT$51 billion ~ NT$55 billion, at a forecast exchange rate of 29.6 NT Dollars to 1 US Dollar

• Gross profit margin : between 4.5% ~ 4.7%

• Operating profit margin : between 2.1% ~ 2.3%

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4. Recap of Recent Major Events

• WT was ranked as Top 10 Overseas Branded Distributor of China 、

• Distributor Awards 2017 by ESM EET and EDN.

• WT was ranked as revenue market share No.2 in Asia semiconductor distribution market in 2017 by Gartner.

• WT board of directors proposed NT$2.5 cash dividend per share and approved the convening of the 2018 annual shareholders’ meeting on June 28, 2018.

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Thank You !

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

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