WT — Investor Presentation 2022

Mar 8, 2022

2021 Fourth Quarter Investor Conference February 24, 2022

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.

==> picture [157 x 21] intentionally omitted <==

Agenda

1. Overview

2. Financial Update

3. Business Outlook

4. ESG Highlights

5. Questions and Answers

==> picture [157 x 21] intentionally omitted <==

3

1. Overview

==> picture [843 x 381] intentionally omitted <==

----- Start of picture text -----

A leading Asian semiconductor
distributor (73% of global market) US$16B #8000 #80
• Founded in 1993 NR 34% YoY Customers Product Lines
•
Headquartered in TWN
•
Listed in 2000
(ticker: 3036 TT)
#2500 #45 / #5 #29B
•
Top 500 Asia High Growth (FT)
• Top 5% Governance (TWSE) Employees Offices / Delivered Chips
• around Asia Warehouses annually
Taiwan High Salary 100 Index (TWSE)
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

2. Financial Update

Statement of Comprehensive Income

					Unit: NT$M	Unit: NT$M
K t	4Q21	3Q21 QQ	4Q20 YY	Y2021	Y2020	YY
ey accouns	Amount	Amount o	Amount o	Amount	Amount	o
Net Operating revenues Gross profit	129,049 4,706	119,105 8% 4,612 2%	109,090 18% 3,031 55%	447,896 16,986	353,152 10,775	27% 58%
Gross margin	3.65%	3.87%	2.78%	3.79%	3.05%
Operating expenses Operating income	(1,766) 2,940	(1,696) 4% 2,916 1%	(1,463) 21% 1,568 88%	(6,429) 10,557	(5,458) 5,316	18% 99%
Operating margin	2.28%	2.45%	1.44%	2.36%	1.51%
Financing costs Others Earning before tax Income tax expense Profit after tax	(221) 16 2,735 (654) 2,108	(187) 18% 251 -94% 2,980 -8% (700) -7% 2,304 -9%	(159) 39% 172 -91% 1,581 73% (343) 91% 1,238 70%	(715) 338 10,180 (2,325) 7,923	(991) 474 4,799 (1,004) 3,795	-28% -29% 112% 132% 109%
EPS (in dollars)	2.66	2.85	1.57	9.96	5.22
Weighted average shares (M shares)	793	789	788	790	727
Pro forma EPS (in dollars) Outstanding shares as of period end (M shares)	2.63 803	2.82 798	1.57 788	9.80 803	4.81 788

==> picture [157 x 21] intentionally omitted <==

5

2. Financial Update

Balance Sheet

Bl Sht
aance ee						Unit: NT$M
	4Q21			3Q21	4Q20
Key accounts	Amount	%		Amount %	Amount	%

Bl Sht
aance ee				Unit: NT$M
Key accounts	4Q21		Amount % 3Q21	4Q20
	Amount %			Amount %
Cash and cash equivalents Accounts receivable Inventory Other current assets Non-current assets	4,680 3 75,462 44 66,524 38 2,470 1 24,213 14		4,364 3 75,437 44 65,811 39 2,409 1 22,041 13	3,627 3 60,850 46 44,314 34 2,301 2 19,918 15
Total Assets	173,349 100		170,062 100	131,010 100
Short-term loans	35,624 21		37,042 22	24,062 18
Accounts payable Other current liabilities Long-term loans	69,809 40 5,149 3 7,750 4		72,993 43 4,072 2 5,003 3	54,946 42 3,605 3 800 1
Other liabilities	1,157 1		1,147 1	1,480 1
Total Liabilities Total Equity	119,489 69 53,860 31		120,257 71 49,805 29	84,893 65 46,116 35
Indices	4Q21		3Q21	4Q20
Current ratio Debt/Assets ratio Debt/Equity ratio Gearing ratio	135% 69% 222% 0.72		130% 71% 241% 0.76	134% 65% 184% 0.46

==> picture [157 x 21] intentionally omitted <==

6

2. Financial Update

Unit: NT$M

Revenue vs. GPM

==> picture [80 x 12] intentionally omitted <==

----- Start of picture text -----

OP vs. OPM
----- End of picture text -----

==> picture [801 x 334] intentionally omitted <==

----- Start of picture text -----

Revenue GPM OP OPM
140,000 4.12% 3.87% 3.65% 4.5% 3,500 2.63% 3.0%
120,000 100,000 80,000 3.44% [3.59%] 3.09% 2.91% 3.20% [3.35%] 3.01% 2.78% 3.55% 4.0%3.5%3.0%2.5% 3,000 2,500 2,000 1.51% 1.77% 1.61% 1.40% [1.49%] [1.59%] [1.53%] [1.44%] 2.06% 2.45% 2.28% 2.5%2.0%
1.5%
60,000 2.0% 1,500
2,686 [2,916 2,940 ]
96,191 96,774 1.5% 1.0%
40,000 67,474 [74,748 ] 77,476 74,724 [91,862 109,090 97,646 102,096 119,105 129,049 ] 1.0% 1,000 2,015
20,000 0.5% 500 1,022 [1,324 1,549 1,358 1,155 1,186 1,407 1,568 ] 0.5%
- 0.0% - 0.0%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
OPEX vs. OPEX ratio EPS (NTD)
OPEX OPEX(%) 3.0 2.85
2.66
2,000 2.5% 2.54
2.5
1,800
1.93%
1,600 1.82% 1.71% [1.76%] 2.0% 2.0 1.92
1,400 1,200 1.48% [1.50%] 1.47% 1.34% 1.48% 1.49% 1.42% 1.37% 1.5% 1.5 1.38 1.46 1.57
1,000 1.06 1.20 1.04 1.07
800 1.0% 1.0
600 1,300 [1,363 1,428 1,456 ] 1,325 1,317 [1,353 1,463 1,450 1,517 1,696 1,766 ] 0.67
400 0.5% 0.5
200
- 0.0% 0.0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

2. Financial Update

ROE vs. Equity

==> picture [57 x 11] intentionally omitted <==

----- Start of picture text -----

Unit: NT$M
----- End of picture text -----

==> picture [739 x 294] intentionally omitted <==

----- Start of picture text -----

Equity ROE
60,000 19.0% 20%
16.3%
18%
16.9%
50,000
16%
14.2%
14%
13.0%
40,000 12.3%
12.0%
11.7%
12%
10.8% 10.7% 10.8%
30,000 10%
53,768
6.8% 46,078 47,235 47,246 49,685 8%
20,000 36,234 38,643 6%
23,279 22,669 23,503 23,478 22,480 4%
10,000
2%
- 0%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

2. Financial Update

Operating Cash Cycle

==> picture [730 x 274] intentionally omitted <==

----- Start of picture text -----

AR INV AP Operating cash cycle
70
65
64
62
60
60
53
51
50 50
50 46 46
42
40
40
30
20
10
0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

2. Financial Update

ROWC vs. NWC/Sales

==> picture [730 x 280] intentionally omitted <==

----- Start of picture text -----

NWC/Sales ROWC
0.20
0.18 17.1% 17.1%
16.3%
0.16
14.0%
13.5%
0.14
12.5%
12.1% 12.2%
0.12
10.6%
10.1%
0.10
8.2% 8.1%
0.08
0.06
0.04
0.02
0.00
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

3. Business Outlook

We currently expect 1Q22 :

• Revenue : between NT$115 billion ~ NT$121 billion, at a

forecast exchange rate of 27.8 NT Dollars to 1 US Dollar

• Revenue mid-point guidance: 9% QoQ decrease and 21% YoY

• growth

• Gross profit margin : between 3.75% ~ 3.95%

• Operating profit margin : between 2.25% ~ 2.45%

==> picture [157 x 21] intentionally omitted <==

11

3. Business Outlook

==> picture [128 x 11] intentionally omitted <==

----- Start of picture text -----

WT Revenue Trend
----- End of picture text -----

WT ranks Asia No. 2

==> picture [439 x 140] intentionally omitted <==

----- Start of picture text -----

US$bn
CAGR (2016-21): 28.3%
20
15.99
15
11.95
10.84
9.07
10
6.22
4.47
5
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
----- End of picture text -----

==> picture [776 x 359] intentionally omitted <==

----- Start of picture text -----

US$bn CAGR (2016-21): 28.3% US$bn Asia top 4 distributor revenue trend
20 30
15.99
25
15
11.95 20
10.84
9.07 WT
10 15
6.22
4.47 10
5
5
0 0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021
World Semi Revenue Forecast WT ranks Global No. 4
US$bn CAGR (2022-25): 4.4%
US$bn
6.6% 30 Global top 4 distributor revenue trend
700
1.5% 0.2%
650 CAGR (2016-21): 9.7% 9.4% $693 25
600 25.1% $639 $648 $649
550 $583 20
500 12.9% 10.4% 15 WT
450 21.9% $476 -11.3% $466
400 10
$422 $422
3.3%
350
5
300 $346
250 0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021
Source：Gartner, 2021/12
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

3. Business Outlook

Revenue breakdown by application

==> picture [753 x 337] intentionally omitted <==

----- Start of picture text -----

3Q21 (Left) vs. 4Q21 (Right )
60 QoQ +37%
100%
5.3% 5.7% 5.3% 5.1% 6.4% 6.4% 6.7% 6.5% 50
9.0% 8.4% 7.2% 6.9% 8.7% 10.4% 9.0% 8.1% 40
30 QoQ -1%
10.2%
80% 17.5% 18.3% 15.1% 15.3% 14.2% 20 QoQ -13% QoQ -10%
16.6% 17.7% QoQ +5% [QoQ -3%]
10.9% 10
13.6% 10.4% 0
13.3%
60% 14.7% 14.2% 14.3% 12.5%
18.7%
20.2%
24.6%
24.1% 22.0%
40% 24.8% 24.9%
31.9%
60 4Q20 (Left) vs. 4Q21 (Right ) YoY +0%
50
48.1%
40
20% 40.7%
28.7% 34.3% 32.3% 27.4% 32.1% 30 YoY +27%
21.5% YoY +64%
20 YoY +12%
YoY +38%
YoY +51%
10
0%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 0
Automotive Industry & Instrument (I&I) Communication
Consumer Computing Mobile Phone
Revenue (NT$B)
Revenue (NT$B)
----- End of picture text -----

==> picture [157 x 21] intentionally omitted <==

13

3. Business Outlook

Revenue breakdown by application

==> picture [578 x 361] intentionally omitted <==

----- Start of picture text -----

100%
6.9% 6.1% 5.2% 5.3% 6.5%
10.8% 9.0% 7.7% 9.0%
13.8% 31% Start Application
80% 14.8%
18.3% 15.9%
19.0%
17.5%
13.2%
60% 14.6% 12.5%
17.2%
18.3% 35% Quality Business
24.4%
22.6%
40% 22.1%
21.8%
21.9%
20%
30.8% 34.6% 33.5% 34% Cash Cow
21.5% 25.2%
0%
2017 2018 2019 2020 2021
Automotive Industry & Instrument Communication Consumer Computing Mobile Phone
160 YoY +23%
140
120
YoY +18%
100 2020 (Left)
vs.
80 YoY +36% 2021 (Right )
YoY +20%
60 YoY +47%
YoY +55%
40
20
0
Automotive I&I Communication Consumer Computing Mobile Phone
Revenue (NT$B)
----- End of picture text -----

Semiconductor Market

2022-25F semiconductor segment revenue CAGR (Gartner forecast, December 2021):

 Automotive: +12.5%

 Industrial: +8.3%

 Communication: +4.4%

 Consumer: +4.0%

 Computing: +2.6%

 Mobile Phone: +2.3%

==> picture [157 x 21] intentionally omitted <==

14

3. Business Outlook

Unrivalled Technical Service

Dedicated, technicalMarketing driven approach to 11% drive demand creation & business growth Support 39%

Superior engineering team to provide Total solution, system level design services with broad technology

Experienced, dedicated engineers to support component level suggesting and consulting Board level debugging service, prototype validation and manufacturing assistance

==> picture [387 x 313] intentionally omitted <==

==> picture [157 x 21] intentionally omitted <==

3. Business Outlook

Digitize Supply Chain Management Extensive use of Digital Technology to optimize Supply Chain Management and drive down Opex ratio (2019: 1.66%  2020: 1.55%  2021: 1.44%)

Better Customer Services

• Expand B2B/EDI services to customers

• On-line supply chain & technical services

Improve Operational Efficiencies

• Introduce new automatic tools & processes to eliminate manual tasks

Support Business Decisions

• Big database for business trend analysis

• Visualize data into dashboard & reports for better visibility

==> picture [157 x 21] intentionally omitted <==

4. ESG Highlights

 ESG Performance

• Sustainalytics – 10.45 score (Rank No. 4 of 416 TW listed corporates)

• FTSE Russell – 3.2 score (Rank No. 62 of 440 TW listed corporates)

 Environmental Sustainability

• Greenhouse Gas (GHG) Emissions data certificated by third independent party

• Advocacy for the Paris Agreement

 Social Significance

• Ability of WFH during pandemic and donation for the community

• WT Education Foundation for rural children

 Corporate Governance

• Awarded the top 5% in governance ranking by TWSE

• Board member diversity: 43% female and 43% independent director

==> picture [157 x 21] intentionally omitted <==

GHG certification

Pandemic prevention materials donation

==> picture [125 x 176] intentionally omitted <==

==> picture [232 x 161] intentionally omitted <==

Top 5% governance award

==> picture [379 x 215] intentionally omitted <==

Q & A

==> picture [148 x 139] intentionally omitted <==

WT Microelectronics Website : www.wtmec.com The BEST Distribution Partner

==> picture [157 x 21] intentionally omitted <==

==> picture [148 x 139] intentionally omitted <==

Thank You!

WT Microelectronics Website : www.wtmec.com The BEST Distribution Partner

==> picture [157 x 21] intentionally omitted <==