WTC — Investor Presentation 2018

Sep 4, 2018

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Copyright[©] by Walsin Technology Corporation | All rights reserved.

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Walsin Technology Corporation (Stock code: 2492.TW)

Presented by Walsin Technology Corporation

Sept. 5, 2018

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Copyright[©] by Walsin Technology Corporation | All rights reserved.

Contents

1. Financial Performances

2. Key Focus Markets That Drive the Future Growth 3. Passive Components Market Outlook 4. Walsin Technology Short-to-mid Term Focus

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WTC Quarterly Financial Result of 2016~Q2/2018

In Million NTD Except NTD for Earnings Per Share

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Note：2018 July operating result declared on Aug 06：Net Sales 5,507MNTD with income before tax 3,531MNTD(64.1%) , net Income 2,729MNTD(49.6%) and EPS 5.65NTD.

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Global Sales Trend (2013 ~ 2018 Aug.)

100 Million (NTD)

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2015~2018 Net Sales, Gross Profit & Operating Income Trend

In Million NTD

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1H 2018 Walsin Sales Breakdown by Region & Channel

1H 2018 Revenues Breakdown by Region

1H 2018 Revenues Breakdown by Channel

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America
Private Label
4%
Europe 4.7%
3%
Asia
12%
Direct
customers
48.5% Distribution
46.8%
Great China
81%
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1H 2018 Walsin Sales Breakdown by Segments

1H 2018 Sales by Segments

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Automotive
5.5%
Consumer
14.7%
Networking
28.8%
PC&P
22.0%
Industrial
29.1%
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Key focus markets that drive the future growth

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Global Connected Car Market Updates

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 With enhanced GPS and other driving assistance services, the demand for connected cars has been soaring and it is estimated that connected cars will account for 75% of the 92 million cars shipped globally in 2020

 According to Stratistics MRC, the global connected car market will grow at a CAGR of 16.1% during 2017 to 2026.

Data Source: Mordor Intelligence, Mar, 2018

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Global 5G Market Updates

Global 5G Connections Forecast

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Data Source: CCS Insight, April 6, 2018, and IDC, May 31, 2018

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 Initial 5G services could appear late 2018 in the US, but China will quickly take the lead after early deployments in developed markets like South Korea, Japan and the US.

 According to IDC, smartphone shipments will amount to 1.462B units in 2018. Shipments will rise steadily starting in 2019 and eventually reaching 1.654B units in 2022.

 India, 5G, and 6-inch displays will drive 2019 smartphone sales

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Global IoT Market Updates

 The IoT market is set to rise from its valuation of $157B in 2016 to estimated $457B by 2020, accomplishing the CAGR of 28.5%.

 Top application segments include smart cities, industrial IoT, connected health, smart homes, connected cars, and wearables.

Data source: GrowthEnabler & MarketsandMarkets analysis, Jan. 2018

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Passive Component Market Outlook

• Passive component supply from automotive applications will remain tight due to continuous growth of connected cars

• Starting from mid of 2018, 5G networking devices and its peripheral applications will drive huge component consumption

• Limited by equipment lead time, raw material supply and underdeveloped talent pool, the global supply of passive component, especially MLCC, will remain constrained

• Until now, there is no new capable MLCC suppliers that can provide wide product spectrum with reliable quality at a massive scale to enter this market

• We therefore forecast the long term tight supply of passive component will become a new norm. Market demands may slightly vary by regional short term economical situations

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Global MLCC Shipments Forecast

Global MLCC Supply vs. Demand Forecast

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2016 2017 2018e 2019e 2020e
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Total world wide shipment quantity (Bpcs)

Total world wide demand quantity (Bpcs)

Data Source: Walsin Technology Corporation in Aug, 2018

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Walsin Technology Short-to-mid Term Focus

• Continue to expand capacity to fulfill increasing demands and re-arrange facility output to minimize potential regional influences.

• Continue to invest in R&D with a specific focus on the MLCC product range that compensating the structural bottleneck

• Enhance product mix in automotive MLCC, automotive Chip Resistor, Antenna and RF component solutions

• Align inductor offerings and radio frequency solutions through member firms of PSA

• Proactively focus on Japan Key Account penetration.

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Thank you

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