SDI Corporation ( 2351 SDI )

2 SDI at a Glance Employees Business Segments

Market Position Financials

Electronic 82%

Stationery 18%

Discrete 69%

IC 15%

VCM 5%

LED 4%

Other 7%

Electronic Products Group Products

Revenue FY2017

Power L/F Leadframe Stationery

No.3 No.1 No.1

Taiwan

Source : SEMI Industry Research and

Statistic , November 2015

US$ M

Total 2730 employees worldwide

China

1210 employees

Taiwan

1350 employees

R&D center : 140 engineers

Subsidiary

170 employees

339

292 302

327

293 294

319

2.5%

5.9%

7.3%

9.6% 8.6%

11.9% 11.1%

2011 2012 2013 2014 2015 2016 2017

Revenue(US) Net Margin%

3

1996

Public listing in Taipei, Taiwan

#2351 SDI

Shuen Der Manufactory was founded by Mr. S.C. Chen

1953

The Electronic Component Division was established

1983

The company name was changed to

SDI Corporation

1990

China plant began operation

1998

2005

New Nantou Plant expansion

2007

China plant expansion Established SDI Charity foundation

2010

SDI was elected

“Asia Top 100 Technology Company

DG material

production alliance

with Mitsubishi

Shindoh

2016 2013

60th anniversary

2015

INGENUITY

win “IF” design &

“good design”

award

certificated

ISO500001、

CSR system

2012

I-PULO win

“IF” design

award

Company History

4

Virginia, USA

Sales office

Osaka, Japan

Sales office

Tokyo , Japan

Sales office

Jiangsu, China Plant

Nantou, Taiwan

SDI Plant , TBT , CSM Changhua, Taiwan Headquarter

Menton, France

Sales office

Global Location Global Location

Factory

Sales office

5

ISO-9000 Certified 1994 QS-9000 Certified 1999, SDC Certified 2000 ISO9000:2000 Edition Certified 2003 ISO14000 Certified 2003 ISO/TS16949 Certified 2004 OHSAS 18000 Certified 2007 QC080000: Certified 2009 ISO500001 Certified 2016 CSR 2016

Quality System Certification

6 Our Leadframe Applications

Automotive Industry Consumer Electronic

Multi Market

• Energy & Engine power

Management

• Powertrain

• Sensors of ADAS &

safety system

• Lighting system

• Motor control units

• Home applications :

Air conditioners ,

washing machines ,

Micro wave,

• Traction : High speed

train ,subway power

Unit

• Computing , mobile

device , power charger

• RF power for base

station

• Security : smart card

• LED lighting ,

Backlighting of LCD

• Aero Space device ,

• Medical

• Renewable energy :

Wind power control ,

solar power control ,

Fuel cell stack

7

High Medium Low

High

Medium

Low

An

nu

al g

row

th r

ate

Technology differentiator

IPM

Sensor

Power Discrete

Auto

Power

Clip

Riveted

SOP

Smart Card

Our Leadframe Technology Strategy

DFN

8

29%

32%

31%

8%

1Q18

Auto Industrial

comsumer others

End Market Application Roadmap

產品介紹 Our Future Trend

World Market Position

Power Market Position

• Automotive :

Market growth CAGR 7 ~ 10% , Rapid growing in EV car

powertrain, auto drive system , sensors .

• Industrial : Market growth CAGR 5 ~ 7% , Focus on growth area :

medical, Motor control ,energy efficiency, security.,

SH Materials

11.6%

MHT 11.1%

SDI 9.7%

Shinko Electric 8.1%

ASM Pacific 7.6%

Others 31.1%

SDI 16.2%

SH Materials 12.2%

TSP 10.1%

Possehl 8.5%

Jihlin 6.1%

Others 36.3%

US 978M

Source : SEMI Industry Research and Statistics , December 2015

US 2,991M

27%

31%

34%

8%

2017

9

Clip – Complicated bending technique for

high power and high current requirement

Surface treatment on Cu/Ag/NiPdAu

finish for MSL-1 requirement

Heat Sink- Rivet technology and DG

for high heat dispatch requirement

Integration of Power and IC device :

High precision stamping capability for

complicated and high density IC lead frame with

riveted heatsink

High precision and reliable plating technique with

NiPdAu & Ag finish

Core competence of Leadframe

Complicative dual gauge rolling

10 Stationery Product

Innovative slide-arm patent

Saving effort up to 50%

Flat clinch patent

can save 30％ paper space.

Light Force Stapler

Advance auto open / close lid patent

Pencil shaving will not fall out.

Innovative ratchet mechanism patent

Twist sharpening & 2X speed.

Twist Pencil Sharpener

Push button auto-lock patent

Convenient to use

Unique swivel eraser patent

Easy to use and refill

Unique blade limited slot patent

stabilizes blade during cutting

Correction Tape Precision cutter

Strong auto-lock withstands

up to 3kg.

11 Our Customer

Stationery Leadframe

12 Financial Performance

Revenue and Operating Margin Earnings Per Share

Return On Equity

US$ M

8.6%

13.0%

15.1%

17.8%

17.0%

20.8%

19.3%

2.5%

5.9%

7.3%

9.6%

8.6%

11.9%

11.1%

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

0%

5%

10%

15%

20%

25%

2011 2012 2013 2014 2015 2016 2017

Revenue(US) G.M.% Net Margin%

0.83

1.56

2.69

3.95

3.16

4.00 3.93

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2011 2012 2013 2014 2015 2016 2017

5.1%

8.5%

13.2%

16.7%

12.5%

15.4%

14.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2011 2012 2013 2014 2015 2016 2017

13 年別經營績效

Item 2011 2012 2013 2014 2015 2016 2017 1Q18

Gross margin 8.6% 13.0% 15.1% 17.8% 17.0% 20.8% 19.3% 18.2%

Operating margin

2.5% 5.9% 7.3% 9.6% 8.6% 11.9% 11.1% 10.1%

Op Exp % 6.1% 7.1% 7.8% 8.3% 8.4% 8.9% 8.3% 8.1%

EPS 0.83 1.56 2.69 3.95 3.16 4.00 3.93 0.85

ROE 5.1% 8.5% 13.2% 16.7% 12.5% 15.4% 14.1%

Financial performance Financial Performance

14

http://www.sdi.com.tw