iteq corporation
TRANSCRIPT
www.iteq.com.tw
ITEQ Your Partner of Advanced Materials & Mass Lam Service
Company Presentation
ITEQ Corporation
www.iteq.com.tw
Disclaimer Statement
â« This presentation and release contain âforward-looking statementsâ which may include
projections of future results of operations, financial condition or business prospects based
on our own information and other sources.
â« Our actual results of operations, financial condition or business prospects may differ from
those expressed or implied in these forward-looking statements for a variety of reasons,
including but not limited to market demand, price fluctuations, competition, international
economic conditions, supply chain issues, exchange rate fluctuations and other risks and
factors beyond our control.
â« The forward-looking statements in this release reflect the current belief of ITEQ as of the
date of this release. ITEQ undertakes no obligation to update these forward-looking
statements for events or circumstances that occur subsequent to such date.
www.iteq.com.tw
â« Establishment ïŒApril 10th, 1997
â« Headquarter ïŒHsin Pu, Taiwan
â« Capital ïŒUS$ 110 millions
â« Employees ïŒ2,906
â« Chairman ïŒMr. John Tsai
â« CEO ïŒMrs. Audrey Tsai
â« Products ïŒ- Copper Clad Laminate & Prepreg
- Masslam service (4~16L / 2+N+2 HDI)
- Flexible CCL
- Metal CCL
Company Overview
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CCL & Prepreg Manufacturing Flow
Glass
FabricTreating
Mixing
(Compounding)
PrepregPly-up Cutting
Copper
Foil
LaminationCCL
Resin(s)
Filler(s)
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Smartphone
Networking
Cloud
Computing
Consumer
Electronics
Automotive Electronics
Material Science
Process Engineering
Low Dk
FR-4
Halogen Free
Anti-CAF
Low Df
Core Technology
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Manufacturing Plant
Distributor / Agent
Manufacturing Plant
Distributor / Agent
USA
Japan
Korea
Wuxi
Europe
Israel
Singapore
DG/HJ/GZ Taiwan
Manufacturing Plant
Distributor / Agent
New Plant
WuxiLaminateïŒ1,800 K sheets
Prepreg ïŒ8,500 K meters
Hsin Pu(Taiwan)LaminateïŒ450 K sheets
Prepreg ïŒ1,800 K meters
Dong GuanLaminateïŒ1,000 K sheets
Prepreg ïŒ4,500 K meters
Huang JiangMass lamïŒ500 K SQFT
Guang Zhou(Flexible CCL)3 Layer FCCLïŒ750 K SQM
2 Layer FCCLïŒ140 K SQMJiangXi (First stage)LaminateïŒ600 K sheets
Prepreg ïŒ4,500 K meters
InvestmentïŒ2.1 Billion NTD
Mass ProductionïŒ3Q, 2019
New Production Site - JiangXi
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(Million NTD)
4,5504,345
5,021 5,161
4,6464,818
5,0275,190 5,124
4,851
5,562 5,677 5,694 5,6975,862
11.29%10.81%
13.21%
14.11%
16.02%
13.92%14.70%
13.73%
15.75%15.06% 14.75%
13.06%13.71%
14.50%
15.81%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Revenue Gross Margin Rate
Revenue & Gross Margin Rate
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49% 48% 47% 46% 44% 42%
30% 31% 32% 34% 36% 38%
10% 10% 10% 10% 10% 10%
11% 11% 11% 10% 10% 10%
2015 2016 2017 1Q18 2Q18 3Q18
Consumer Electronics Networking
Smartphone Automotive
Product Mix
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44% 42%
36%38%
10% 10%10% 10%
0
500
1,000
1,500
2,000
2,500
3,000
2Q18 3Q18
SALES ( NT$ MILLION)
(Total 5,697 M) (Total 5,862 M)
QoQ Change
Consumer Electronics
â 1.8%
Networking
â 8.6%
Smartphone
â 2.9%
Automotive
â 2.9%
Total Revenue
QoQ +2.9%
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46% 42%
32%
38%
10% 10%12% 10%
0
500
1,000
1,500
2,000
2,500
3,000
3Q17 3Q18
SALES ( NT$ MILLION)
(Total 5,561 M) (Total 5,862 M)Consumer Electronics
â 3.8%
Networking
â 25.2%
Smartphone
â 5.4%
Automotive
â 12.2%
Total Revenue
YoY +5.4%
YoY Change
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2017Q3 & 2018Q3 Income Statement
NT$ Million 2017Q3 2018Q3
Revenue 5,562 5,862
Gross Profit 821 927
Operating Expenses 356 353
Selling 151 137
Administrative 150 136
R&D 55 80
Operating Profit 465 575
Non-Op Income/ Loss 55 (34)
Income Before Tax 519 540
Tax Expenses 157 141
Net Income to Parent 362 399
EPS(NT$) 1.20 1.31
Key Financial
Ratio(%)2017Q3 2018Q3
Gross Margin 14.75 15.82
Operating Expense
Ratio6.40 6.01
Operating Margin 8.35 9.80
Effective Tax Rate 30.28 26.18
Net Margin 6.51 6.81
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2017Q3 & 2018Q3 Balance Sheet
NT$ Million 2017Q3 2018Q3
Total Assets 18,334 19,001
Cash 3,624 3,536
Marketable Securities 538 27
NR/AR 7,875 8,941
Inventories 1,662 2,145
Fixed Assets 2,932 2,753
Total Liabilities 11,316 11,600
Short-term Debt 3,457 3,389
NP/ AP 4,600 5,409
Long-Term Debt 1,153 1,035
Total Equities 7,019 7,401
Key Financial
Ration(%)2017Q3 2018Q3
A/R Turnover Days 137 137
Inventory Turnover
Days32 36
A/P Turnover Days 94 96
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â« Key contributors to data demand include
- Ultra-High-Definition Video streaming
- Connected Home, Work, Health and Car
- Analytics, Big Data, and AI applications
- Cloud computing and Cloud Storage
- Virtual Reality (VR) and Augmented Reality (AR)
Global Data Traffic
(Source: Cisco VNI, 2017)
The rapid growth of internet traffic will bring the demand to upgrade equipment
from operators .
(Exabytes per month)
Market Trend
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â« The growth of data throughput
â« 5G networking commercialization
Market Trend
- The interconnect performance bandwidth of PCIe 4.o is double that of the PCIe 3.0 specification
achieving 16Gbps..
- PCIe 5.0 is still in the process, which been estimated will deliver up to 32Gbps, 4x higher data rate
than PCIe 3.0.
- Data rate would up to 1-10 Gbps, 10-100 times faster than 4G.
- The high data rate and small coverage of 5G would bring increasing demand of infrastructure.
- Massive MIMO and mmWave - the number of antenna on base station will increase from dozens to
hundreds
High Speed Material Application- Lower Dielectric constant (Dk) and Dissipation factor (Df)
- Higher reliability and consistency over temperature, frequency, and humidity
- High Thermal durability and conductivity
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Central
Cloud
Edge
Cloud
5G Opportunities for ITEQ - Network
Building Baseband Unit(BBU)âą Low latency requirementsâą Including Macro Cell, Micro Cell to Small Cell
Core Network (Telecom Data Center):âą Including Server, Storage, Switch
High Speed Material
IOT(Internet of Things):
High Speed Material
High Speed Material
High Speed/ Frequency Material
Remote Radio Unit (RRU)+ Antennaâą Including Antenna, LNA, RF Network
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â« ITEQ Solution for Networking
- Middle Low Loss: ServerăIndustrial PC
- Low Loss: Whitley PlatformăAMD Rome
- Ultra Low Loss: 5G base stationăOptical ModuleăRF Board
- RF Microwave: 5G AntennaăPA ModuleăRF Board
Networking
Typical Phased Array Modular Units
â« ITEQ solution for smartphone
- Standard : Standard smartphone
- Low Dk Material: Middle to high-end smartphone
- High Tg, Low Dk Material: mSAP Process
- Low Dk Low Loss Material: 5G smartphone
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â« Continuous Growing
â Output value of automotive PCBïŒ
USD 4.9 Billion/2015 USD 7.5 Billion/2020
â« Complete Anti-CAF Product Line
Automatic Driving
âą Safety-Driving
âą ADAS
Connected Mobility
âą Infotainment
âą Networking
Powertrain
âą Energy-Saving
âą Power Charging
âą 77~79GHz Radar
âą Antenna Module âą Multilayer HDI
âą Large Current
âą High Voltage
âą Heavy Copper
(Source: NTI Information)
(S
High Frequency MaterialHDI Material
High Speed Material
High Tg Material
5G Opportunities for ITEQ - Automotive