Chilisin/MagLayers/Magic/Ferroxcube/Ralec

Chilisin Electronics Corp.

Nov 2019

RF

AGENDA

Financial Status

Group Strategy

1

2

3

4 Target Segments

Market Position

Financial Status

Chilisin_2019

Chilisin Confidential

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Chilisin Group 2019 Q3 Performance

Consolidated performance (Chilisin, Ralec , Ferroxcube, Magic and MagLayers),Gross Margin, Net profit after Tax and EPS for FY2018

Unit: Thousand NTD

Category\Period 2019.Jan〜Sep 2018.Jan〜Sep Growth %

Consolidated Revenue 11,878,424 13,424,796 -11.52%

Gross Margin 3,075,391 4,779,031 -35.65%

Gross Margin (%) 25.89% 35.60% -27.27%

Earning After Tax 1,001,187 2,561,492 -60.91%

EPS After Tax 4.1 10.00 -59%

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Chilisin Group 2019 Oct Performance

Monthly OctMoM YoY

Previous Month Growth Last year Growth

Chilisin 525,295 543,323 -3.32% 556,300 -5.57%

Ralec 265,490 301,554 -11.96% 572,125 -53.60%

Ferroxcube 152,430 151,975 0.30% 170,247 -10.47%

MagLayers 236,626 258,234 -8.37% 226,534 4.45%

Magic 131,720 146,063 -9.82% 110,009 19.74%

Consolidated 1,311,561 1,401,149 -6.39% 1,635,215 -19.79%

The announced

figures as per rule*1,311,561 1,401,149 -6.39% 1,525,206 -14.01%

*IFRS

Unit: Thousand NTD

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Chilisin Group 2019 YTD Performance

YTD Oct 2019 Y 2019 Y 2018 YoY

Chilisin 4,874,925 5,631,400 -13.43%

Ralec 2,817,766 6,085,806 -53.70%

Ferroxcube 1,769,515 1,836,713 -3.66%

MagLayers 2,448,920 2,596,380 -5.68%

Magic 1,278,859 1,437,286 -11.02%

Consolidated 13,189,985 17,587,585 -25.00%

The announced

figures as per

rule*

13,189,985 14,950,002 -11.77%

*IFRS

Unit: Thousand NTD

Group Strategy

Chilisin_2019

Chilisin Milestone

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~2001

⚫ Listed on Taiwan Stock Exchange

⚫ Established DongGuan Factory

Business Expansion

1972

Established

~2016

Globalization

⚫ Established Vietnam Factory

⚫ Overseas Office in America,

Malaysia and Singapore

~2019

Passive Solution Provider

⚫ Acquisition :

-Shin Yuan Elec.(2019)

-Mag.Layers & Magic(2018)

-Ralec & Ferroxcube(2017)

⚫ Established Group

Production Site in Hunan

Chilisin_2019

Chilisin Group

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Y2018 Turnover: 680MUSD

Employee: 10,918

HsinChu, TaiwanFounded 1972

Turnover 208MUSDWW Ranking No. 3Employee: 4,167Factory Location- Taiwan- China- Vietnam

Taipei, TaiwanFounded 1941

Turnover 70MUSDWW Ranking No. 4Employee: 1,325Factory Location- China- Poland

Taoyuan, TaiwanFounded 1990

Turnover 100MUSDEmployee: 1,506Factory Location- Taiwan- China Kaohsiung, Taiwan

Founded 1994

Turnover 224MUSDWW Ranking No. 3Employee: 1,920Factory Location- Taiwan- China- Malaysia

Taipei, TaiwanFounded 1996

Turnover 54MUSDDIP/Molded ProEmployee: 1,400Factory Location- China Kunshan, China

Founded 2004

Turnover 24MUSDSpring ExpertEmployee:600Factory Location- China

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Global Service Network

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China

Hong Kong

Taiwan

31Asia

5Europe

8America

Sales Office

USA

Singapore

San Jose, CA

Huntington, CA

San Diego, CAEl Paso, TX

Phoenix, AZChicago, IL

Pittsburg, PA

PolandSkierniewice

GermanHamburg

SpainGuadalajara Italy

Milan

KoreaSuwon Japan

-Yokohama-Yamanashi

MalaysiaPenang

Beijing

ShangHaiSuZhou

ShenZhen

ChongQing

DongGuan

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Global Manufacturing locations

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SkierniewiceIN Poland

ChongQingIN China

HunanIN China

DongGuanIN China

ShenZhenIN China

SenaiIN Malaysia

KunShanIN China

TaoyuanIN Taiwan

HsinchuIN Taiwan

KaohsiungIN Taiwan

HaiPhongIN Vietnam

9China

2Asia

1Europe

Factories3

Taiwan

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Location: VSIP HaiPhong

Est. 2016

Capital: 55 MUSD

Employee: 1,500

Area: 35,000m2

Chilisin Vietnam Factory

Products: • Multilayer inductor• Wire-wound inductor• Molding inductor• Core

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Ralec Malaysia Factory

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ASJ Malaysia plant is expanding manufacturing

capacity from 12Bpcs a month to 30Bpcs a month.

New building had been completed in early 2018 and have started operation in May 2018.With the expansion plan, ASJ will have wider product range to meet various customer requirements.

Land Space: 11,100m²Employees: 600 Capacity: 30B pcs/ mthCertifications: ISO 9001/ ISO 14001/

TS16949/ OHSAS 18001/ EICC Compliance

Location: Johor Bahru, Malaysia

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Inductor: 70 AcresProduction begins from end of Y2018

Ferrites: 200 AcresProduction begins from Y2020

Resistor: 213 AcresProduction begins from Y2021

Chilisin HuNan Industrial ParkFuture group production base in China

Chilisin_2019

Total Solution Provider - Inductor

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Chilisin_2019

Total Solution Provider - Resistor

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Chilisin_2019

Total Solution Provider – Powder

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Chilisin_2019

Component Total Solution

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POWER

➢ Molded Type Inductor➢ Assembled Type

Inductor➢ Automotive Choke➢ DC-DC Power Module

RF EMILAN

XFMRRESISTOR

➢ Inductor➢ Antenna➢ LTCC Components➢ SAW Filter

➢ EMI Filter for Class D Audio

➢ Ferrite Bead➢ Automotive Common

Mode Choke➢ Common Mode Choke

➢ SMD (Surface Mount Device)

➢ DIP (Dual In-Line Package

➢ Metal Strip Current Sensor

➢ 4-Terminal Metal Strip➢ Anti – Sulfuration➢ Automotive Resistors

Market Position

Chilisin_2019

Inductor Market Share Y2016/18

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Y2016: TAM 2497MUSD Y2018: TAM 2826MUSD

Source:1. Paumanok (2019) 2. Chilisin Estimate

Chilisin_2019

RALEC – Leading Resistor Supplier

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➢WW No.3 Chip Resistor Supplier

➢ Leading position of Metal Current Sensor (100Mpcs/Month Capacity)

➢Various Specialty for all applications• Sulfur Resistant Chip Resistor• Automotive Grade Resistor• Thin Film Resistor• Precision Resistor• High-Power Resistor• Wide-Terminal Resistor• 4-Terminal Resistor• Array Resistor• Metal Strip Current Sensor• Metal Film Current Sensor

Ranked by Capacity

Chilisin_2019

Ferroxcube – Ferrites Innovator

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⚫ WW No.4 Ferrite maker and dominate No.1 position in Europe and USA

⚫ Wide range offering in Power & EMI material and act as leading position of high performance material provider

✓ The best Bsat ferrite Power material in all kind of working frequency

✓ The best high frequency Power material

(200KHz ~ 3MHz) in AC-DC or DC-DC application

✓ The best frequency stability (Impedance) EMI material @ higher TC (Curie Temperature -130 deg)

⚫ Recognized by leading EV/PHEV car makers

1st in Europe

1st in USA

No.310%

TDK-EPC12%

No. 210%

No.4FXC

8.5%

8%

Others52%

WW Ranking

Target Segments

Chilisin_2019

Chilisin Focus Segments

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Au

tom

otive • PHY (CMM)

• 48V mild hybrid

• ECU

• Lighting

• Infotainment

• ADAS

• …N

etw

ork

ing

/Da

tace

nte

r

• V-core (power bead)

• Memory (DDR5)

• WIFI 6

• NB-IOT

• 5G

• Connected Car

• …

Ha

nd

he

ld D

evic

es • 5G phone

• Watch

• Tablet

• Smart Speaker

• TWS

• Wireless Charging

• …

Chilisin_2019

Market : Automotive

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⚫ ElectrifiedEV, HEV, PHEV & BEVEVSE (EV Supply Equipment)

⚫ AutonomousADAS Camera, Radar, Ultrasound & LiDARAutonomous DrivingAI Training & Inference

⚫ ConnectedDSRC (Dedicated Short Range Communication)C-V2X (Cellular Vehicle-to-Everything)

⚫ Sharing Platform

Component Requirements:• High Reliability & Long Life

• Resist to Harsh Environment, Temp., Vibration, Humidity, ESD/EMI

• Low Loss/High Performance

• Resist to High Voltage

Vehicle-to-Everything (V2X)

• Graphic source: https://3smarket-

info.blogspot.com/2018/10/5g_31.htm

l

• https://www.cpsdna.com/article-

1213.html

Chilisin_2019

Product For Automotive

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Chilisin_2019

Product For Automotive (Power)

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Chilisin_2019

Product For Automotive (EMI)

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Market : Cloud & HPC Computing

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⚫ Machine Learning on Hyper-scale Cloud, Increased Storage Capacity, Wide Bandwidth

⚫ Edge Computing Rise⚫ Cyber security demanded⚫ Server (CPU, GPU, FPGA, NPU, DDR5),

Switches, Storage (SSD).

Component Requirements:• High Performance

• High Power, Low Loss, High Efficiency

• Long Term Reliability

• Small Dimension

• Super-Hi Data Transfer Rate

Graphic source: Forbes https://www.forbes.com/sites/moorinsights/2017/03/03/a-machine-

learning-landscape-where-amd-intel-nvidia-qualcomm-and-xilinx-ai-

engines-live/#112fd260742f

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Products For Datacenter

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Chilisin_2019

Market : 5G & IoT

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⚫ 5G Wireless Broadband⚫ Adoption of LPWA (Low Power Wide Area)⚫ Cellular: NB-IoT, LTE-M⚫ Non-Cellular: LoRa, Sigfox

Component Requirements:• Low Loss, Higher Freq., LTCC RF, SMD

Components & FEM

• High Gain, Beam Forming, Smart Antenna of Diverse Bands

• Inductors

• Miniaturization, LGA

• High Efficiency

• High Reliability

• High Frequency, mm Wave

Graphic source:

https://www.numerama.com/tech/290355-qualcomm-

mise-sur-2019-pour-les-premiers-smartphones-

compatibles-5g.html

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RF BOM Trend (Phone)

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sub 6G will increase the usage of LTCC and BAW

LTCC Filter will be better choice for wider bandwidth

https://twgreatdaily.com/shjGaWwBUcHTFCnfW47n.html

THANK YOU