Investment Forum 2017 - Walsin Technology Corporation. Data Source: IMF World Economic Outlook Update, Jan. 2017 11 According to TrendFor

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www.passivecomponent.com

Investment Forum 2017

Walsin Technology Corporation (Stock code: 2492)

Presented by Walsin Technology Corporation Date updated: April 11, 2017

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Q1 2014 ~ Q4 2016 WTC Financial Performances

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WTC Quarterly Financial Result of 2014~2016

In Million NTD Except NTD for Earnings (Loss) Per Share

Note： The weighted average number of outstanding shares applicable for Y2014 to Y2016 when calculating EPS are 680,236,339 shares, 647,310,350 shares and 545,469,744 shares, respectively.

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2014~2016 Net sales, Gross profit & Operating Income Trend Net Sales

Operating Income Gross Profit

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NOP from Extra GP Trend

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- Japan suppliers have been shifting their production capacity of mid-to-high cap X5R/X7R MLCC to small sized high cap MLCC and automotive-grade MLCC since last year.

- Replacement product available for all size and capacitance in short supply, Walsin Technology may fill in the supply shortage of large sized mid-to-high cap MLCC.

Mid-to-high MLCC in short supply

Availability of WTC high cap MLCC

Capacitance Range

100 pF 1 nF 10 nF 100 nF 1 uF ~ 10 uF

Size 01R5 ~0201 0201~1210 0402~1210 0402~1210 1206~1210 1210 up

Supply Status

Supply status of large sized mid-to-high-cap MLCC

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WTC mid-to-high cap MLCC order trend

Benefiting from the replacement of mid-to-high cap MLCC shortage, orders of Walsin Technology large-sized mid-to-high cap MLCC demonstrated an uptrend as follow:

WTC mid-to-high cap MLCC order trend

FEB'16 MAR'16 APR'16 MAY'16 JUN'16 JUL'16 AUG'16 SEP'16 Oct'16 Nov'16 DEC'16 JAN'17 FEB'17 MAR'17

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MLCC & Array (RF MLCC, Hi-V, Hi-Cap, Soft termination, Automotive,

Safety, etc.)

Chip Resistor & Array (thin-film, low ohm current sensing, automotive &

anti-sulfur, total lead free, chip-fuse, etc.)

RF devices & HF Inductors, Film Inductors, Antenna

Disc capacitor & Varistor

Inductors

WTC product introduction

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Market Opportunities & WTC Product Focus

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World economic outlook projections Jan. 2017

According IMF global GDP will rise 3.4% in 2017, 3.6% in 2018.

Near-term growth prospects were revised up for China, due to expected policy stimulus, but were revised down for a number of other large economies—most notably India, Brazil, and Mexico.

Data Source: IMF World Economic Outlook

Update, Jan. 2017

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According to TrendForce, the global smartphone production volume for 2016 grew 4.7% to reach 1.36 billion units. TrendForce also expects global smartphone volume to grow 7.3% in 2017, totaling 1.46 billion units.

Samsung continued to top the ranking. Chinese brands Huawei, OPPO and Vivo respectively occupied the last three spots in the global top 5.

Global smartphone market updates

Data Source: TrendForce, Jan. 25, 2017

Global Production Volume of Smartphone 2015-2017

Legacy Phone Smart Phone

450 800

In Combined Capacitor, Resistor, and Inductor Content Per Box

Data Source: Paumanok research, Mar, 2016

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Nearly 3 billion Wi-Fi chipsets were shipped in 2016. That number is expected to grow to nearly 4 billion in 2021.

Meanwhile, the overall revenues for Wi-Fi chipsets were around $3.8 billion in 2016. The market is forecast to grow to $5.2 billion by 2021.

Data Source: Exponential Tech Investor, Jan.16, 2017

Global Wi-Fi market updates

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With rampant security threats to IoT devices, the use of processor chips with integrated security hardware is on the rise in IoT devices

Shipment of processor chips with integrated security hardware for IoT devices to exceed one billion units annually by 2020, According to VDC Research

Data Source: Research report entitled “Hardware Security Solutions for

IoT Devices” published by VDC Research in Nov.2016

Global IoT market updates

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Global connected car market updates

Data Source: Gartner, September 2016

Automobile

5575

In Combined Capacitor, Resistor, and Inductor Content Per Box

Data Source: Paumanok research, Mar, 2016

Global connected car shipment forecasts to 2020

unit: Thousands 2015 2016 2017 2018 2019 2020

Embedded 2,174 4,914 11,097 21,394 33,928 42,949

Tethered 4,681 7,519 9,971 12,374 14,995 17,994

Total 6,855 12,433 21,068 33,768 48,923 60,943

Global automobile sales growth in 2016 reached 4.8%, a record high of the past 4 yrs

New automobiles equipped with data connectivity is forecast to reach 21M in 2017 and increase to 61M in 2020.

Tech companies will play a major role in the future of the automotive market.

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Driving support systems

46% Autopilot

54% In-car video camera to record accident incidents

67% Night vision device

62% Lane changing warning system/blind spot warning system

72% Front/rear end collision alarm warning

53% Fatigue warning device

45% Lane-keeping system

Data Source: MItechnews.com, April, 2016

Which of the driving support systems drivers would like to use in their cars?

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Outdoor LED market updates Outdoor LED display market

size to grow at over 20% CAGR to reach $22.4BN by 2024

Billboards segmented is predicted to record CAGR of 24.9% during forecast timeframe.

Traffic lights segment is projected to register CAGR of more than 19.1%

APAC outdoor LED display industry size is projected to register CAGR of about 25.1%

Data Source: Global Market Insights, Oct. 2016

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2016 WTC sales breakdown by region and by channel

2016 Revenues Breakdown by Region 2016 Revenues Breakdown by Channel

Private Label 5.2%

Distribution 39.2%

Direct customers

55.7%

Great China 78.6%

Asia 12.2%

Europe 5.7%

America 3.5%

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2016 WTC sales breakdown by market segments

2016 Sales Revenues by Market Segments

Automotive 5.2%

Networking 34.5%

PC&P 22.0%

Industrial 21.0%

Consumer 16.5%

Others 0.7%

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Future product strategy & focus of WTC MLCC Japan competitors reset supply shift to focus on Mobile, Automotive segment,

leaving WTC group major opportunity with >=0402 size. WTC reacts with

capacity adjustment by end 2017.

European and Japanese users are actively switching to new source approval in last Two quarters . Mostly are top players in their market sector.

Released new type HT for high temp. 150 degree application request to match also Automotive demand ( covering also EV cars booming needs )

HQ MLCC had expanded position vs Japanese top players. Used in PA, MP, Networking device.

Continue High Cap production & sales jump from RD & Factory

Taking actions to recover material and Currency impact selectively

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Future product strategy & focus of WTC Chip Resistor

Increase Chip-resistor sales quantity with specialty sales enlarged. Product focus include: Automotive R, lead-free, Low R, Hi-power, Power , High precision & 0201 Array.

Certified with AECQ and VDA 6.3 norm. Dedicated capacity expansion follows.

Thin Film : Capacity extended; thin film MF series product announced as high end series for Automotive and high stability range competing US and Japan makers only.

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Future product strategy & focus of WTC RF

The increasing popularity of 4G LTE smartphone phone propels the demand of SAW filter and antenna switch module. To echo the growing needs, WTC RF BU has been devoting in the R&D, and manufacturing SAW and ASM since 2015. Sales revenues of RF BU grew at least 30% in 2016. With more RF products being included in the approved vendor list at IC design house, WTC expects to see sales contribution in 2017.

Continued product development and production of front-end RF module to ensure steady growth in revenues.

Product development and expand production capacity for antenna and filter to address demand for internet connected cars and IoT applications

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Global top 3 safety capacity supplier ( Y1, Y2 leaded ceramic cap )

Product development focus on small sized UL certified safety disc capacitor for year 2017. The physical size of the new product reduces to Japan-grade equivalent, making it a great solution for space-sensitive devices.

We continue to win market position in power supply sector. High growth in Server, Industrial PC, Robot, Lighting system on top of Mobile Phone growth trend ( quick charge ) ; Production capacity ready.

Picking up smart meter projects in EU region.

Future product strategy & focus of WTC Disc capacitors

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Thank You / Q&A

Documents

Investment Forum 2017 - Walsin Technology Corporation. Data Source: IMF World Economic Outlook Update, Jan. 2017 11 According to TrendFor