SDI Corporation( 2351 SDI )

June 2017

2

Contents

• Company introduction

• Products introduction

• Products analysis

• Financial performance

Contents

3

• 1953 SDI founded and started from Stationery business

• 1983 step into Semiconductor Leadframebusiness

• 2002 approved by IDM customer and expend the international business

• 2011 integrated the dual gage copper material production

Company IntroductionCompany milestone

44

Company HistoryThe company reorganized into Shuen Der Industry Co., Ltd.

1967

AchievedISO9001/CNS12681

1994 1996

Public listing in Taipei, Taiwan

Achieved QS9000

1999 2000

Implemented Oracle ERP system

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

5

Company History

2005

New Nantou Plant expansion

2004

achieved ISO/TS16949ISO14001 certification

20102007

China plant expansion

Established SDI Charity foundation

2016

60th anniversary

2012

Group revenue achieve 10 billion NT$ scale

2013

SDI was elected “Asia Top 100 Technology Company

DG material production alliance with Mitsubishi Shindoh

2014

I-PULO win “IF” design award

Win “The 2014 Happy Enterprise award “

2015

certificatedISO500001、CSR system

Pass Taiwan AEO certification

2011

INGENUITYwin “IF” design and “good design” award

6

Virginia, USA

Sales office

Osaka, JapanSales office

Tokyo , JapanSales office

Osaka, JapanSales office

Tokyo , JapanSales office

Jiangsu, China PlantJiangsu, China Plant

Nantou, TaiwanSDI Plant , TBT , CSMNantou, TaiwanSDI Plant , TBT , CSM Changhua, Taiwan Headquarter

Menton, FranceSales office

Global Location

7

Quality system certification 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

產品介紹Stationery

Product segment

LED5%

VCM4%

Others6%

Electronic products

Product portfolio

Products introduction

8

Electronic81%

Stationery19%

Power &Discrete

68%

IC17%

5%

1Q 2017

9

Leadframe product

Powerand

Discrete

IC leadframe

Premolding

TO252 TO247 TO92 TO220TO263

SOT23 SOT223 SOT323 SMX GBU Photo Coupler

SO8SOIC QFPQFN PDIPIPM

Chip Card

10

AudioDashboardSensor

LightMedical

ConsumerAutomotive

Opto Industrial

End market application

11

電子產品組合調整

Product Y13 Y14 Y15 Y16 1Q17

Power & Discrete 74.0% 73.1% 72.2% 65.7% 67.8%

IC 9.0% 7.1% 10.2% 16.2% 16.6%

LED 11.0% 8.2% 5.8% 4.9% 4.9%

VCM 4.0% 4.5% 4.7% 5.9% 4.5%

Others 2.0% 7.1% 7.1% 7.3% 6.2%

Electronic product portfolio

End market application roadmap

25.0%

35.7%

10.0%

1Q2017

45.0%

15.0%

7.0%

2020F

12

29.3% 33.0%

Auto

Industrial

comsumer

others

13

Auto electronic standard AEC-Q100 grade

車用品質要求

Requirement Automotive Industrial Consumer

Temperature -40°C – 155°C -10°C – 70°C 0°C – 40°C

Operation life 15 years 5 – 10 years 1 – 3 years

Humidity 0％ – 100％ environment low

Defect Rate Target :0 <<1％ ＜3％

Supply period 30 years 5 years 2 years

Source : 工研院電子報第10003期

Automotive quality requirement

14

Core competence for EC BU

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

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Exterior Lights

Improving safety & self-driving

Interior Lights

Mass Production ESMP Engineering Sample

3.0x1.4 3.0x3.0 3.5x2.8 3.75x3.75 2.7x2.0 2.4x1.4

ReflectorLead Frame

High Brightness on Silver layer

Good Reliability on NiPdAu layer

PPA/PCT

SMC: Silicone Molding Compound

LED product

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0.08mmHAIR

0.04mmVCM SPRING

Emerging with ExcellentVoice Coil Motor Spring

TBT VCM

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客戶服務

2015 win STMicroelectronics

「 Leadframe best supplier」

2016 win Infineon Technologies AG

「The best supplier of Back end Material」

Win trust from main customersCustomer award

18

Stationery product 30 Sheets Light Force Stapler

Traditional TypeTraditional Type

Innovative slide-arm patentSaving effort up to 50%

Flat clinch patent can save 30％ paper space.

Increase 10% precision in parts than traditional one.

Traditional Parts

New Design TypeNew Design Type

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Stationery product Twist pencil sharpener

Advance auto open / close lid patentPencil shaving will not fall out.

Innovative ratchet mechanism patentTwist sharpening & 2X speed.

Automated assemblyTolerance is only 0.01mm. Manual assembly

Traditional TypeTraditional TypeNew Design TypeNew Design Type

20

Stationery product Precision Cutter

Unique blade limited slot patent stabilizes blade during cutting

Blade expose

Strong auto-lock withstands up to 3kg.

Precision injection technology makes thinned profile body & low deformation.

Traditional TypeTraditional TypeNew Design TypeNew Design Type

21

Stationery product 2 Way Correction Tape

Push button auto-lock patentConvenient to use

Unique swivel eraser patentEasy to use and refill

The most complex mechanism in the industry.

Simple gear set

Traditional TypeTraditional TypeNew Design TypeNew Design Type

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ODM customer Tombow won 2013 new product award Product award

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Correction Tape / RefillableProduct award

24

Stationery customer

25

財務資訊12.6%

15.2%

17.5%

14.9%15.3%

18.2%18.9%18.6%

17.8%17.9%17.0%

15.3%

19.4%

21.1%21.9%

20.7%21.0%

4.9%

7.6%

9.7%

6.7% 7.1%

10.4%11.0%

9.4% 8.8%9.8%

8.7%

7.0%

10.4%

12.6%13.5%

11.1%

12.9%

-

5

10

15

20

25

30

35

40

45

50

0%

5%

10%

15%

20%

1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17

營收(億元) 毛利率 營業淨利率Gross Margin

Operating Margin

Revenue & margin trend by Quarter

Financial performance

RevenueNT$ 100 M

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8.6%

13.0%

15.1%

17.8%17.0%

20.8%

2.5%

5.9%

7.3%

9.6%8.6%

11.9%

-

20

40

60

80

100

120

140

0%

5%

10%

15%

20%

2011 2012 2013 2014 2015 2016

營收(億元) 毛利率 營業淨利率

Revenue & margin trend by year

Financial performance

RevenueGross Margin

Operating Margin

NT$ 100 M

27

年別經營績效

Item 2011 2012 2013 2014 2015 2016 1Q17

Gross margin 8.6% 13.0% 15.1% 17.8% 17.0% 20.8% 21.0%

Operatingmargin 2.5% 5.9% 7.3% 9.6% 8.6% 11.9% 12.9%

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

EPS 0.83 1.56 2.69 3.95 3.16 4.00 0.85

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

Financial performance

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SDI Corporationhttp://www.sdi.com.tw