WT — Investor Presentation 2019

May 8, 2019

2019 First Quarter Investor Conference

Presented by Cheryl Yang May 8, 2019

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

• 2018 revenues of NT$273bn, up 44% YoY

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

• South Asia) with over 8,000 customers

• Over 2,300 headcounts (over 700 sales, 250 PMs, and 500 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 Kunshan South Asia Offices (9) Nanjing Hangzhou New Delhi, N. India Wenzhou Hefei Mumbai, N. India Chengdu Mianyang Pune, N. India Chongqing Changsha Vietnam (2) Wuhan Fuzhou Bangalore, S. India Fuqing Xiamen Bangkok, Thailand Dongguan Shunde Penang, Malaysia Guangzhou Zhuhai Singapore Hong Kong Shenzhen

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1. Overview

NR (Net Revenue)

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YoY=44%
NT$B
300
273
YoY=31%
250
YoY=27%
200 189
CAGR(2011~2015)=12%
CAGR(2006~2010)=16%
144
150
108 [114 ]
100 88
80
71
64
47
50 34 39 41
30
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
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2. Financial Update

Statement of Comprehensive Income

Unit: NT$M

K t	1Q19	1Q19	4Q18	QQ	1Q18	YY
ey accouns	Amount %	Guidance	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)	67,474 100.00% 2,322 3.44% (1,300) -1.93% 1,022 1.51% (527) -0.78% (5) 0.00% 490 0.73% (105) -0.16% - - 385 0.57% 0.67		85,762 100.00% 2,701 3.15% (1,420) -1.66% 1,281 1.49% (538) -0.63% 23 0.03% 766 0.89% (175) -0.20% - - 591 0.69% 1.06	-21% -14% -8% -20% -2% -36% -40% -35%	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% (133) -0.27% - - 580 1.17% 1.05	36% 1% 4% -2% 52% -31% -21% -34%

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2. Financial Update

Balance Sheet

Unit: NT$M

Key accounts	1Q19		Amount % 4Q18	1Q18
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	2,360 3 34,692 38 47,034 51 2,108 2 5,398 6		3,335 4 36,127 39 46,875 50 2,547 2 4,941 5	2,542 3 31,765 41 35,426 46 2,929 4 4,837 6
Total Assets	91,592 100		93,825 100	77,499 100
Short-term loans Accounts payable Other current liabilities Long-term loans	31,921 35 32,055 35 3,091 3 - -		28,812 31 37,998 40 4,474 5 123 -	29,385 38 22,239 29 3,451 4 670 1
Other liabilities	1,245 2		610 1	1,703 2
Total Liabilities Total Equity	68,312 75 23,280 25		72,017 77 21,808 23	57,448 74 20,051 26
Indices	1Q19		4Q18	1Q18
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	129% 75% 293% 1.27		125% 77% 330% 1.17	132% 74% 287% 1.37

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2. Financial Update

NR by Geography (Ship-to Destination)

	80.7% 81.7% 86.0% 82.7% 82.1% 89.3% 90.1% 87.2% 8.5% 7.1% 6.0% 8.1% 7.9% 5.5% 4.2% 5.4% 8.1% 8.5% 5.7% 5.9% 6.1% 3.0% 3.5% 4.5% 2.2% 2.0% 1.8% 2.6% 3.4% 1.9% 1.9% 2.5% 0.5% 0.6% 0.5% 0.7% 0.5% 0.3% 0.3% 0.4% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 China Taiwan Korea ASEAN Others 0 10 20 30 40 50 60 70 80 90 Revenue (NT$B) Revenue (NT$B) 0 10 20 30 40 50 60 70	China Taiwan Korea ASEAN 4Q18 (Left) vs. 1Q19 (Right) QoQ +4% QoQ +1% QoQ +1% QoQ -24%
0% 20% 40% 60% 80% 100%
		China Taiwan Korea ASEAN 1Q18 (Left) vs. 1Q19 (Right) YoY +31% YoY +4% YoY -9% YoY +43%

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2. Financial Update

NR by Customer Base

0% 20% 40% 60% 80% 100%	52.7% 50.7% 57.8% 56.2% 53.5% 68.2% 72.0% 62.8% 36.5% 38.5% 34.1% 34.7% 36.6% 26.5% 22.4% 30.4% 8.6% 8.8% 6.4% 6.3% 6.6% 3.4% 3.9% 4.7% 2.2% 2.0% 1.7% 2.8% 3.3% 1.9% 1.7% 2.1% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Taiwan Customer China Customer Korea Customer ASEAN Customer

Revenue (NT$B) 0 10 20 30 40 50 60 70 0 5 10 15 20 25 30 35 40 45 Revenue (NT$B)	Taiwan Customer China Customer Korea Customer ASEAN Customer QoQ -31% QoQ +7% QoQ -5% QoQ -3% 4Q18 (Left) vs. 1Q19 (Right)
	Taiwan Customer China Customer Korea Customer ASEAN Customer 1Q18 (Left) vs. 1Q19 (Right) YoY +52% YoY +19% YoY +1% YoY +2%

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2. Financial Update

NR by Application

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50 QoQ -33%
100% 4.0% 4.2% 3.4% 3.9% 4.3% 2.5% 2.4% 2.5% 4Q18
7.8% 6.6% 6.4% 7.3% 7.5% 5.3% 5.4% 5.3% 40 (Left) vs.
9.2% 7.3% 8.4% 30 1Q19
11.4%
80% 14.9% 13.8% 13.5% 14.0% QoQ 0% (Right )
15.9% 13.7% 15.2% 20 QoQ -13%
QoQ -9%
17.2% 10 QoQ -23%
16.4% 18.7%
19.5% 20.1%
18.9% 0
60%
20.8% 24.1%
19.7%
21.3%
21.5%
22.6% 22.9%
40%
1Q18
52.3% 40 (Left)
20% 37.7% 41.9% 35.1% 46.3% 44.5% 30 YoY +72% vs. 1Q19
31.2% 31.2% (Right )
20 YoY +52%
YoY +10%
0%
10 YoY -15%
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 YoY -1%
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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EPS ROE%
2.00 18.8% 19.2% 20%
15.3%
1.50 13.4% 15%
12.4%
11.6%
11.0%
1.00 10%
6.8%
0.50 5%
1.15 1.61 1.44 1.05 1.12 1.79 1.06 0.67
0.00 0%
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
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2. Financial Update

ROWC vs. NWC/Sales

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0.30 25%
NWC/Sales
0.25
20%
ROWC
0.20
16.1%
15%
11.7% 12.0%
0.15 10.6% 9.3% 11.4%
9.8%
8.2% 10%
0.10
5%
0.05
0.19 0.18 0.17 0.23 0.24 0.12 0.13 0.18
0.00 0%
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
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2. Financial Update

Operating Cash Cycle

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AR INV AP Operating cash cycle
90
83
80
68 65
61 60
60
49 46
30
0
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
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3. Business Outlook

We currently expect 2Q19 :

• Revenue : between NT$71 billion ~ NT$75 billion, at a forecast

• exchange rate of 30.9 NT Dollars to 1 US Dollar

• Revenue guidance between 5% ~ 11% QoQ growth and 33% ~

• 41% YoY increase

• Gross profit margin : between 3.45% ~ 3.65%

• Operating profit margin : between 1.6% ~ 1.8%

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4. Recap of Recent Major Events

• WT was ranked as Best Partner from NXP Semiconductors in 2018.

• WT was ranked as Outstanding Supplier Business Management from ST Microelectronics in 2018.

• WT board of directors approved the convening of the 2019 annual shareholders’ meeting on June 21, 2019.

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Thank You !

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

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