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2020 1H Analyst Briefing

Zoom Meeting

July 30, 2020 3:00PM

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Global Economy &

Electronics Market

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World Economic Outlook Projections (%)

IMF, June 2020

United Kingdom is no longer part of the European Union. Data for the United Kingdom are no longer included in the European Union composite

WorldAdvanced

Economies US

Euro

Area Germany France UK Japan China

Emerging

Markets &

Developing

Economies

2019 2.9 1.7 2.3 1.3 0.6 1.5 1.4 0.7 6.1 3.7

2020 -4.9 -8.0 -8.0 -10.2 -7.8 -12.5 -10.2 -5.8 1.0 -3.0

2021 5.4 4.8 4.5 6.0 5.4 7.3 6.3 2.4 8.2 5.9

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Manufacturing PMI Output

JPMorgan Global manufacturing PMI, compiled by IHS Markit

• Global manufacturing PMI output stages recordgain of 47.0 in June from 39.1 in May

• France recorded the strongest output gain

• Steepest drop in production recorded in Japan,followed by Mexico

• A return growth in the UK was accompanied bymarked easing rates of decline in production inthe US and Eurozone

• Emerging markets returned to growth due tosustained output in China

• Falling exports continued to act as key orderbook drag, sentiment also remains subdueddespite rising

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Global Electronics Assembly and EMS Market 2019-2025

New Venture Research, July 2020

2019 2020 2021 2022 2023 2024

Electronics Assy EMS

1,270

443

1,288

444

1,303

473 508

1,377 1,418

544 581

1,338

CAGR 1.9% CAGR 5.6%2019-2024

-1.4%

-0.2%

2.6%

6.8%

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Financials

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2020 1H Segment Updates

Auto

48%

Ind

28%

Aero 4%

Cons 6%

Telco

8%Others 5%

Med 1%

2019

2019 1H 2020 1H Y/Y%

Auto 305.5 197.6 -35%

Ind 175.4 139.8 -20%

Aero/Def 25.9 18.4 -29%

Cons 38.3 45.2 18%

Telco 48.0 45.4 -5%

Medical 7.1 14.8 109%

TOTAL 635.7 476.2 -25%

Auto

42%

Ind

29%

Aero 4%

Cons 9%

Telco

10%Others 3%

Med 3%

2020

➢Automotive:

• PH & MX government mandated shutdown in April and May

• In line with OEM reduced demands, BG & CZ manufacturing sites

underwent voluntary shutdowns/reduced workweeks

• Expected 2nd half improvement compared to 2Q

➢ Industrial:

• PH and MX industrial businesses both affected by shutdowns in 2Q

• 2nd Half customer forecasts better than initially forecasted.

Improvement to be driven by Philippines and China

➢Aero/Defense:

• Delay in programs as governments prioritize pandemic response and

health management programs

➢Consumer:

• IMI Jiaxing white goods business recovered in 2Q

• VIA backlog due to supply chain issue of LCD components has

cleared, 2Q is 83% better than last year

➢Telco:

• Strong 1st half performance will be dampened in the 2nd half by

Huawei supply chain issues due to US sanctions

➢Medical:

• While China demand starts to normalize in 2H, Penlon ventilator

project in U.K. continues to grow with additional orders

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2020 1H Performance

635.7 476.2

9.0%

6.4%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

2019 1H 2020 1H

5.2 -17.3

0.8%

-3.6%-20.0

-15.0

-10.0

-5.0

0.0

5.0

10. 0

2019 1H 2020 1H

5.8 -21.5

0.9%

-4.5% -5.5%

-4.5%

-3.5%

-2.5%

-1.5%

-0.5%

0.5%

1.5%

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10. 0

2019 1H 2020 1H

27.9 10.5

4.4%

2.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2019 1H 2020 1H

Revenue and Gross Profit Margin Operating Income

Net Income EBITDA

Non GAAP* $8.6M (1.4%) -$13.6M (-2.8%)

Non GAAP* $3.3M (0.5%) -$17.3M (-3.6%) Non GAAP* $28.7M (4.5%) $10.3M (2.2%)

* One-time inventory provisions included

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2020 1Q and 2Q Performance

255.8 220.4

7.6%

5.0%

0.0

50. 0

100.0

150.0

200.0

250.0

300.0

2020 1Q 2020 2Q

-2.6 -14.7

-1.0%

-6.7%-16.0

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2020 1Q 2020 2Q

-4.6 -16.9

-1.8%

-7.7%-8.5%

-7.5%

-6.5%

-5.5%

-4.5%

-3.5%

-2.5%

-1.5%

-0.5%

0.5%

1.5%

-18.0

-16.0

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2020 1Q 2020 2Q

11.4-0.9

4.5%

-0.4%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2020 1Q 2020 2Q

Revenue and Gross Profit Margin Operating Income

Net Income EBITDA

Non GAAP* -$0.7M (-0.3%) -$12.9M (-5.8%)

Non GAAP* -$2.6M (-1.0%) -$14.7M (-6.7%) Non GAAP* $11.6M (4.5%) -$1.3M (-0.6%)

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4.0-1.0

3.1%

-0.9%

-7.5%

-5.5%

-3.5%

-1.5%

0.5%

2.5%

-4.5

-3.5

-2.5

-1.5

-0.5

0.5

1.5

2.5

3.5

4.5

2019 1H 2020 1H

1.8 -20.50.4%

-5.6%-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

2019 1H 2020 1H

2020 1H Performance

Net Income

Revenue

129.7 109.40.0

20. 0

40. 0

60. 0

80. 0

100.0

120.0

140.0

2019 1H 2020 1H

506.0 366.80.0

100.0

200.0

300.0

400.0

500.0

600.0

2019 1H 2020 1H

Wholly Owned Subsidiaries VIA + STI

-28%

Non GAAP* $4.2M (0.8%) -$11.8M (-3.2%) Non GAAP* -$0.9M (-0.7%) -$5.5M (-5.1%)

-16%

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-3.4 2.4

-7.3%

3.9%

-7.5%

-5.5%

-3.5%

-1.5%

0.5%

2.5%

-4.5

-3.5

-2.5

-1.5

-0.5

0.5

1.5

2.5

3.5

2020 1Q 2020 2Q

-1.2 -19.3

-0.6%

-12.2% -15.0%

-10.0%

-5.0%

0.0%

5.0%

10. 0%

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

2020 1Q 2020 2Q

2020 1Q and 2Q Performance

Net Income

Revenue

47.1 62.30.0

10. 0

20. 0

30. 0

40. 0

50. 0

60. 0

70. 0

2020 1Q 2020 2Q

208.7 158.10.0

50. 0

100.0

150.0

200.0

250.0

2020 1Q 2020 2Q

Wholly Owned Subsidiaries VIA + STI

-24%

Non GAAP* $0.9M (0.4%)* -$12.7M (-8.0%) Non GAAP* -$3.5M (-7.4%) -$2.0M (-3.3%)

+32%

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PH

22%

CH

30%

BG/SB

23%

CZ 3%

MX

13%

DE

3%

UK

6%

2019

2020 1H Region Updates

2019 1H 2020 1H Y / Y % CAPEX

PH 136.0 104.7 -23% 2.0

CH 130.0 120.2 -8% 1.0

BG/Serbia 147.6 93.7 -37% 3.0

CZ 21.5 16.2 -24% 2.4

MX 85.8 47.5 -45% 0.2

VIA 81.3 72.2 -11% -

STI 48.4 37.2 -23% 0.8

TOTAL 635.7 476.2 -25% 9.4

➢PH:

• ~30% operations in April and May improved to ~80% in June; Revenue

lost to mandated shutdowns ~$30M

• Strong second half recovery expected to be driven by higher margin

industrial customers

➢CH:

• Growth driven by telecom and medical segments to normalize in 2H.

Revenue to be picked up by recovery of profitable consumer projects.

• Revenue lost to Feb shutdown ~$10M

➢BG/Serbia/CZ:

• Voluntary reduced work scheds in Europe to align with OEM shutdowns

• BG ~50% operating capacity in April/May recovered to ~80% in June

• CZ ~50% operating capacity in April recovered to ~80% in May

• Government support for employees on shutdown leave

➢MX:

• 2nd half points to significant improvement as MX looks to clear demand

from 2 full months of forced shutdown

• Jalisco region at risk of further 2 week shutdown if COVID situation

breaches government thresholds

• Revenue lost to mandated shutdown ~$20M

➢VIA:

• 2Q showed 47% improvement vs 1Q as LCD supply chain issues were

resolved; WFH demand for laptops driving growth

➢ STI:

• 2Q revenue and margin improvement vs 1Q as medical biz picked up

• While current demand has slowed, STI actively booking high margin new

projects with $55M won in 1H

PH

23%

CH

36%

BG/SB

19%

CZ 3%

MX

10%

DE

2%

UK

6%

2020

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2020 1H Group Program Wins: $175M

Notable Wins in 2020

Door Control Unit Auto China

High Temp Sensor Ind Philippines

HV Coolant Auto Czech

Aerospace Projects Aero UK

Industrial Security System Ind Philippines

Seismic Detector Ind China

Automotive Interconnectivity Ind Philippines

20%

29%

14%

5%

31%

Win Location - 2020

Philippines China E. Europe MX UK

115 69

49

40

4

11

44 55

2019 2020

1H New Program Wins

Auto Industrial Others STI

175212

40%

25%

12%

2%

21%

Win Location - 2019

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Capital Structure

Preferred Equity

13%

Common Equity

51%

Short Term

Debt

17%

Long Term

Debt

19%

Preferred

Equity

14%

Common

Equity

50%

Short Term

Debt

28%

Long Term

Debt

8%

Dec

2019

Jun

2020

(US$ Millions)Dec

2019

Jun

2020

Short-Term Debt 126.1 198.5

Long-Term Debt 142.4 55.3

Total Bank Debts 268.5 253.8

Cash 152.7 165.5

Net Debt 115.8 88.3

Common Equity 383.8 348.8

Key Financial RatiosDec

2019

Jun

2020

Current ratio 1.49 1.27

Bank Debt/Equity 0.55 0.57

Bank Debt/ Common

Equity

0.70 0.73

Book value/share ($) $0.17 $0.16

Book value/share (PHP) ₱8.74 ₱7.84

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Disciplined Capital Investments

9.6

20.2 18.512.8

17.6

19.5

12.5

4.5

10.6

16.4

9.7

8.3

11

7.6

4.6

5.0

15.0

0.7

1.33.3

3.3

0.21.4

3.7

3.4

0

10

20

30

40

50

60

70

2016 2017 2018 2019

Philippines China Europe Mexico Serbia VIA STI Others

65.065.3

52.2

38.8

Buildings…………....….........7%

Machinery………..…….......25%

Furn & Fix………............…..4%

Constr. in progress…...….54%

Others…............................9%

$9.4M2020 1H

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Key Takeaways

• 2nd Quarter challenged by forced government shutdowns in the Philippines and Mexico; European sites aligned with OEM demand and went through voluntary shutdowns as well

• Slow but upward trend forecasted for 2nd half. Recovery story could be hampered by new rounds of government imposed lockdowns

• Management taking prudent approach with inventory provisions made in 2Q

• Active streamlining of operational structure. Overhead savings will persist even as revenue levels recover

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Solutions Partner

ir@global-imi.com (+632) 7756 6840 https://www.global-imi.com/