YAGEO — Investor Presentation 2020

Nov 17, 2020

YAGEO Corporation

2020/11

This presentation has been prepared by YAGEO Corporation (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase securities in a proposed offering should be made solely on the basis of the information contained in the offering circular published in relation to such proposed offering, if any.

The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

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• Yageo Corporation is a world leading total service provider of passive electronic components, with 40 manufacturing sites and 20 R&D centers worldwide.

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• Yageo offers a broad range of electronic components with resistors, ceramic/tantalum capacitors, wireless components and modules, transformer, connector, inductor, protective components and cable systems. In the recent years, Yageo’s product technologies mainly focus on ultra small size, high capacitance, high power, high voltage, high reliability, low resistance, and low inductance.

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• Yageo products are widely used in all kinds of electronic applications, including automotive, industrial, 5G, IoT, cloud/data center, telecommunications, power supplies, medical, alternative energy, computers and peripherals, and consumer electronics.

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 As total passive component solution provider, Yageo offers innovative global logistics, electronic data interchange, design-in services, web-based self-helped platforms, and online B2B interfaces with advanced IT solutions and other ease-of-doing-business tools.

• Yageo has a strong and diversified customer profile, including global brand customers, leading EMS, ODM/OEM, and distributors.

• Yageo currently is the world No.1 in chip-resistors , No.1 in tantalum capacitors, and No. 3 in MLCCs. With the reputable brands, Yageo is a truly global company with leading position in Greater China, Europe, and ASEAN.

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• November 12[th] , 2019, Yageo announced to acquire KEMET with total equity valued US$ 1.64 billion in cash. This merger completed in June 15[th] , 2020.

• Yageo reached 2nd highest revenue (NTD$ 41.31 billion) in 2019. As of October 30[th] , 2020, the YTD revenue achieved NTD$ 52.66 billion and its total market capitalization exceeded NTD$ 176 billion.

• Yageo delivered 13.4% of ROE and achieved 19.4% of Operating Margin with EPS of NT$ 16.35 in 2019.

• For nine-month periods of 2020, Operating Margin was 27.3% with EPS of NTD$ 20.03.

• Yageo has been publicly listed on the Taiwan Stock Exchange since 1993 and is included in the MSCI Taiwan Index, FTSE/TWSE Taiwan 50 Index , and TWSE Taiwan Employment Creation 99 Index.

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Our expanded global community and footprint makes us an industry leader with greater opportunities for our employees and customers, and increased ability for high-growth segments and applications.

Around 30,000 Employees Worldwide

US$3 billion 20 Combined Revenue Research & Development Centers

40 Manufacturing Locations

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47 Regional Sales Offices with Global Distribution Network

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Automotive Alternative
Industrial
Energy
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Monitoring/Power
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IoT/ Medical/
Communications High Reliability
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Consumer Computer- Telecom Aerospace/
Related Defense
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High Voltage Portable Devices
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Chip Resistors

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Lead Resistors

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MLCC

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Tantalum Capacitor

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Film Capacitor

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Aluminum ECap

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METCOM Inductors

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Wireless antenna

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RF filters

Inductor

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Circuit protection

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Brand Customer:

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EMS / OEM:

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Distributor:

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By Product By Region
MLCC
27%
US
13%
Other
Components
Europe
17%
15%
Chip
Greater
Resistor
China
17%
51%
Wireless and
Power Asia/ Rest
15% Tantalum 21%
Capacitor
24%
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NT$ 21,953 M QoQ +63.0% YoY +112.8%

- Above 3Q20 information is reviewed.

By Channel*

By Segment*

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Def/Med
4%
Telecom
Automotive 19%
18%
Direct Sales
32%
Distributors
45% Computer
24%
Industrial
EMS 30%
23% Consumer
5%
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• Above 3Q20 information is reviewed.

• Based on the company’s estimation from distributors, direct sales, and EMS customers.

NT$ 21,953 M QoQ +63.0% YoY +112.8%

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By Product By Region
MLCC
29% US
13%
Other
Components
18% Europe
16%
Chip
Greater
Resistor
China
17%
50%
Wireless and Asia/ Rest
Power 21%
15% Tantalum
Capacitor
21%
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NT$ 45,447 M YoY +45.2%**

• Above 1Q-3Q20 information is reviewed.

** Yageo 1Q-3Q20 Sales Amt .+ KEMET 3Q20 Sales Amt.

By Channel*

By Segment*

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Def/Med
4%
Automotive Telecom
16% 19%
Direct Sales
Distributors
33%
45%
Computer
25%
Industrial
31%
EMS
22% Consumer
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Consumer
5%
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NT$ 45,447 M YoY +45.2%**

• Above 1Q-3Q20 information is reviewed.

• Based on the company’s estimation from

distributors, direct sales, and EMS customers.

• ** Yageo 1Q-3Q20 Sales Amt .+ KEMET 3Q20 Sales Amt.

Yageo Group Consolidation (reviewed)

Amount in NTD Million

Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Non-operating Items Income Before Tax Income Tax Net Income Noncontrolling Interests Net Income (attributable to the parent)		Amount % 21,953 100.0 (13,751) (62.6) 8,203 37.4 (2,700) (12.3) 5,503 25.1 (675) (3.1) 4,828 22.0 (1,194) (5.4) 3,635 16.6 (7) (0.0) 3,627 16.5 7.37 3Q20	Amount % 13,470 100.0 (7,499) (55.7) 5,970 44.3 (1,642) (12.2) 4,328 32.1 (154) (1.1) 4,174 31.0 (870) (6.5) 3,304 24.5 (9) (0.1) 3,295 24.5 7.01 2Q20	Q-Q Change % 63.0 83.4 (7.0) (0.1) (7.1) (1.9) (9.0) 1.0 10.0 0.0 10.1 5.1	Y-Y Amount % Change % 10,317 100.0 112.8 (7,123) (69.0) 93.0 3,194 31.0 6.4 (1,556) (15.1) 2.8 1,637 15.9 9.2 918 8.9 (12.0) 2,556 24.8 (2.8) (436) (4.2) (1.2) 2,120 20.5 71.4 (105) (1.0) 1.0 2,015 19.5 80.1 4.74 55.5 3Q19
EPS

• Q-Q/Y-Y Change of Net Sales, Cost of Sales, Net Income, EPS is in %, the rest of Changes is in % point. - The financial data is based on T-IFRS

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Yageo Group Consolidation (reviewed)

Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Non-operating Items Income Before Tax Income Tax Net Income Noncontrolling Interests Net Income (attributable to the parent) EPS		Amount % 45,447 100.0 (27,234) (59.9) 18,213 40.1 (5,820) (12.8) 12,393 27.3 (519) (1.1) 11,874 26.1 (2,585) (5.7) 9,289 20.4 (17) (0.0) 9,272 20.4 20.03 1Q-3Q2020	Y-Y Amount % Change % 31,291 100.0 45.2 (19,867) (63.5) 37.1 11,424 36.5 3.6 (5,167) (16.5) 3.7 6,257 20.0 7.3 1,671 5.3 (6.5) 7,928 25.3 0.8 (1,857) (5.9) 0.2 6,070 19.4 53.0 (108) (0.3) 0.3 5,963 19.1 55.5 14.05 42.6 1Q-3Q2019

- Q-Q/Y-Y Change of Net Sales, Cost of Sales, Net Income, EPS is in %, the rest of Changes is in % point. - The financial data is based on T-IFRS

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Yageo Group Consolidation (reviewed)

Amount in NTD Million

Foreign Exchange Gain (Loss)-Realized Foreign Exchange Gain (Loss)-Unrealized Market price changes-Unrealized Net Interest Income (Expense) Investment Income on Equity-Method Others Total	3Q20 (9) (600) 0 (115) 84 (35) (675)	2Q20 799 (1,024) 0 33 94 (56) (154)	Q-Q Change % (101.1) (41.4) - (450.2) (10.5) (36.6) 338.2	3Q19 Y-Y Change % 304 (103.0) 340 (276.4) 5 - 144 (179.7) 51 63.8 74 (148.0) 918 (173.5)

- The financial data is based on T-IFRS

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Yageo Group Consolidation (reviewed)

Amount in NTD Million

Cash and cash equivalents Notes & Accounts Receivable Inventory Other Current Assets Long-Term Investment Net Properties Other Assets Total Assets Short-Term Loans Notes & Accounts Payable Other Current Liabilities Long-Term Loans Other Liabilities Total Liabilities Total Equity Total Liabilities & Equity		3Q20 Amount 40,128 13,164 13,858 2,158 9,476 39,267 62,996 181,046 39,671 11,597 13,898 36,046 12,888 114,099 66,946 181,046	2Q20 Amount 38,229 15,705 14,742 2,249 10,288 37,516 63,460 182,188 32,797 11,803 21,656 39,688 12,752 118,696 63,492 182,188	Q-Q Change % 5.0 (16.2) (6.0) (4.0) (7.9) 4.7 (0.7) (0.6) 21.0 (1.7) (35.8) (9.2) 1.1 (3.9) 5.4 (0.6)	3Q19 Y-Y Amount Change % 32,914 21.9 9,424 39.7 6,248 121.8 1,804 19.6 12,516 (24.3) 20,521 91.3 28,769 119.0 112,197 61.4 26,879 47.6 5,203 122.9 31,284 (55.6) 2,170 1,561.1 1,193 980.3 66,728 71.0 45,468 47.2 112,197 61.4

- The financial data is based on T-IFRS

• KEMET’s B/S figures included from 2Q20

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Yageo Group Consolidation (reviewed)

Amount in NTD Million

Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Financing Activities FX Difference Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents , Beginning of Period Cash and Cash Equivalents , End of Period	3Q20 Amount	2Q20 **Amount **	Q-Q **Change % **	3Q19 Y-Y Amount Change % 3,719 79.4 2,352 (187.4) (10,235) (68.3) (881) (159.5) (5,045) (137.6) 37,959 0.7 32,914 21.9
	6,670 (2,055) (3,240) 524	2,573 (42,213) 50,186 (1,182)	159.3 (95.1) (106.5) (144.3)
	1,899 38,229	9,364 28,865	(79.7) 32.4
	40,128	38,229	5.0

• The financial data is based on T-IFRS

• KEMET’s C/F figures included from 2Q20

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Yageo Group Consolidation (reviewed)

Amount in NTD Million

Accounts Receivable DSO Inventory DOH-Total Company (Amt) DOH-R+C Finished Goods (Qty) Accounts Payable DPO Net Working Capital		3Q20 13,164 60 13,858 94 35 11,597 80 15,425	2Q20		Q-Q Change % (16.2) (13.0) (6.0) (11.3) (38.7) (1.7) 5.3 (17.3)	3Q19 Y-Y Change % 9,424 39.7 83 (27.7) 6,248 121.8 92 2.2 86 (59.6) 5,203 122.9 90 (11.1) 10,470 47.3
			15,705 69
			14,742 106 57
			11,803 76
			18,644

• The financial data is based on T-IFRS

• KEMET’s W/C figures included from 2Q20

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Thank you!