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1Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
1
2Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
2
Table of Contents
Global Economy & Operating Environment
IMI Operations & Financial Results
Industry and Market Outlook
3Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
3
Table of Contents
Global Economy & Operating Environment
IMI Operations & Financial Results
Industry and Market Outlook
4Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
4
Global Growth Remains Moderate
Region 2015 2016
Global 3.2 3.1
Advanced 2.1 1.6
US 2.6 1.6
Europe 2.0 1.7
Japan 1.2 0.9
Emerging 4.1 4.1
China 6.9 6.7
ASEAN* 4.8 4.8*Philippines, Malaysia, Thailand, Indonesia , Vietnam
Source: IMF Global Outlook January 2017; IHS Markit
• Global economy was broadly unchanged
compared with the 1H ‘16
• Manufacturing expansions were seen in
advanced economies in 2H’16
• US benefitted from rise of equity prices and
dollar appreciation after elections
• Europe positive momentum continues despite
Brexit, terrorist attacks
• China remained on a slow decline even with
policy stimulus efforts
• ASEAN has moderated: Philippines still fast
growing but Indonesia and Thailand on a slow
down
5Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
5
2016 Global Electronics Supply Chain: Capacity Building
Source: TTi Asia
Global Electronic Equipment
(-3.5%)
PCBs
(-1.7%)
Semiconductors
(1.1%)
SEMI Capital Equipment
(8.7%)
6Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
6
IMI Outperforms Electronics & EMS Market
7Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
7
IMI Outperforms Peers
• The combined revenues of nine large
public EMS companies fell by 0.3% in
Q4 2016, the fourth straight quarterly
decline
• Top 11 EMS providers revenue down
4.7% in the first 9 months of 2016
compared to same period year ago.
• For 2016, decline in the industry is
predicted to be at about 3% following
the drop of 1.7% in 2015
• Larger EMS companies continue to
rebalance their portfolio and focus
more on higher value businessesSource: Manufacturing Market Insider
Q1-Q3 2015 Q1-Q3 2016 % Change
149,231.4 142,165.7 -4.7%
Top 11 Global EMS Revenues Q1-Q3 2016
In Million US$
Source: Walt Custer
8Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
8
Table of Contents
Global Economy & Operating Environment
IMI Operations & Financial Results
Industry and Market Outlook
9Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
9
Market leading global electronic
manufacturing service (“EMS”) company
Extensive manufacturing space of 232,000
square meters in 14 factory sites in 7
countries with 14,000 employees worldwide
Supplier of choice for numerous blue-chip
companies
Ability to offer high mix, low volume and low
mix, high volume manufacturing
Category Select Manufacturing Capabilities
2016
Revenue
Contribution (%)
Automotive
• Front / Rear View Cameras
• Anti Braking System sensors
• Steering, Airbag safety controls
• Plastic Injection
45%
Telecom
Infrastructure
• Booster Amplifier
• Base Station Power Supply
• Full Range Multi-Band Antennas19%
Industrial• Security Access System
• Automated Meter Reading
• Power Modules18%
Consumer• Power Tools
• White Goods8%
Computer
Peripherals
• Solid State Drives
• Blu-Ray/CD/DVD Disc Drives1%
Medical• Flat Panel Imaging Equipment
• Patient Monitoring Device3%
Others • Semiconductors 6%
Ranks #6 globally among EMS providers in the
automotive market1
Ranks #21 globally among EMS providers in the
world2
Diversified Industry Portfolio
1 New Venture Research Corp., based on 2015 EMS-related revenues 2 Manufacturing Market Insider based on 2014 EMS-related revenues
Where We Are Today
10Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
10
350
550
2012 2016
Auto Industrial Medical
Continued focus on high-quality requirements with long product life cycles and high value-add requirements further
drives the shift away from commoditized assemblies
Targeted segments currently account for 65% of IMI’s 2016 revenues
High value-add service offerings and end-to-end capabilities further enhance already high barriers to entry
Opportunities remain vast, including exploring industries such as aerospace where IMI’s strengths in reliability is a
key competitive advantage
Industry Average Product Life Cycle
Automotive 8 to 10 years
Industrial 8 to 12 years
Medical 8 to 10 years
Segment Contribution (US$ Millions)Longer product life cycles promote revenue stability and cost
efficiency
Focus on Higher Margin Segments
11Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
11
2016 New Wins: Up 23%
Applications Segment Manufacturing Sites
White Goods Consumer China
Displays Automotive Czech Republic
Renewable Energy Industrial Philippines
Temperature Control Industrial Mexico
Lighting Automotive Bulgaria
Engine Control Automotive China
Drivetrain for EV Automotive China
Notable Wins
New Wins
By Market
Segment
47%
30%
8%
12%3%
Automotive….…...176
Industrial…………..110
Communication…..31
Consumer…………...45
Medical………………10
In Million $
0
200
400
2014 2015 2016
+23%
y-o-y
$373M
12Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
12
Diversified with Solid Auto Growth
844 814745662
3% 3% 3% 3% 3%5% 5% 6% 3% 1%9% 8% 8%
7% 6%
16% 14% 12%10% 8%
17%15% 13%
16% 18%
19%18% 21%
19% 19%
31% 37%38% 42% 45%
0%
2012 2013 2014 2015 2016
Medical Computing Multiple markets Consumer
Industrial Telecom Automotive
843
13Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
13
China................31%
Philippines........30%
Europe..............31%
Mexico...............8%
Europe................54%
North America.....24%
Asia/Others.........16%
Japan...................5%
Revenue Contribution by Geographical Area (2016)
Revenue Contribution by Customer Nationality (2016)
IMI’s established global presence
Deepens relationships
Increases revenues
Achieves single supplier status for 20% of its top 10 customers
Enhanced supply chain management capabilities
Access to global sourcing channels
Minimize supplier concentration
Maximize negotiating position
Share expertise across global operations
Develop leadership aptitude and workforce expertise,
Act on opportunities presented by global clients
Venture into new growth areas
IMI pursues global customers by leveraging on
its technical strengths across its global
presence in Europe, North America and Asia
Provide Global Sales for Global Customers
14Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
14
7.4 12.1 29.7 37.9 42.9
1.1%1.6%
3.5%
4.7%5.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2012 2013 2014 2015 2016
Operating Profit
32.7 36.4 52.7 58.8 64.3
4.9%4.9%
6.2%
7.2%7.6%
-0.5%
0.5%
1.5%
2.5%
3.5%
4.5%
5.5%
6.5%
7.5%
8.5%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2012 2013 2014 2015 2016
EBITDA
0.9 9.2 29.0 28.8 28.1
0.8%1.4%
3.4% 3.5% 3.3%
-0.5%
0.5%
1.5%
2.5%
3.5%
4.5%
5.5%
6.5%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2012 2013 2014 2015 2016
Net Income
56.9 67.9 93.9 94.0 101.3
8.6% 9.1%
11.1% 11.5% 12.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2012 2013 2014 2015 2016
Gross Profit
Sustained Operating Performance
▲+47bps
▲
-20bps
▲+44bps ▲+40bps
15Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
15
4.2 4.79.0 7.7
5.1 5.2
9.617.6
8.2 6.7
9.7
10.6
2.2 7.4
5.3
11.0
1.81.8
1.4
1.93.9
0
10
20
30
40
50
60
2013 2014 2015 2016
Others
PSI
Mexico
Europe
China
Philippines
Disciplined Capital Investments
21.525.9
35.0
• Key investments:
Power module
Automotive expansion in China
Property acquisition in Bulgaria
Additional lines in Mexico
52.7
2016 CAPEX
Machinery & equipment.......54%
Construction in progress.....19%
Furniture & fixtures..............4%
Buildings & improvements..14%
PPE - Others.......................9%
16Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
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Table of Contents
Global Economy & Operating Environment
IMI Operations & Financial Results
Industry and Market Outlook
17Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
17
Global Car SalesIn Million Units % Change
• Global car sales rose 4.8% to
88.1 Million Units
• Growth was led by China which
had an increase of 13%
followed by EU at 7%.
18Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
18
Automotive Sub-Segments
Industry CAGR Years Sources
ADAS 27% 2016-2022 P&S Market
Research
Automotive Camera 24% 2015 – 2021 Yole Development
Automotive Inverter 19.5% 2015 - 2021 Yole Development
Automotive Electronics 8.4% 2015 - 2023 Global Market
Insights
Automotive Power Semiconductors 7.5% 2015 – 2022 IHS Markit
Body Electronics 6.4% 2016 - 2023 Global Market
Insights
Powertrain 5.5% 2015 - 2023 Global Market
Insights
19Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
19
Adoption Rates of Sensing Cameras
Source: Techno Systems Research 2016
Global Sensing
Camera
Attachment Ratio
(2016)
Auto
OEM
Rear /
Front
View
AUDI 75%
BMW 66.3%
Nissan 22%
Ford 13.1%
VW 12.7%
GM 12.2%
Toyota 10%
• Market share of sensing cameras will rise from 14% in 2014 to
57% in 2022
• Car makers that have models addressing a wider segment in the
market
20Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
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Camera Replacement for Auto Mirrors
Government Mandates
2015 - UN’s World Forum for Harmonization of
Vehicle Regulations has included camera monitor
systems
2016 - Japan allows use of cameras instead of
mirrors ; European Union
2018 - US & China
Japan Market
• By 2023, about 29% (2.3M vehicles) will have
video monitors as interior mirrors.
• 12% of market (900K vehicles) will have
exterior sideview mirrors for cameras
• First Mover: Ichikoh Industries – Acquired by
Valeo in Nov 2016
Other players: Bosch, Continental, SMR, Murakami
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Rise of Electric Vehicles
Electric vehicle
sales will be 35% of
total annual car
sales by 2040
Lithium-Ion battery
costs have fallen
65% since 2010 and
will continue to drop
as new chemistries
come in
If growth of EVs will continue at its current rate of 40-
60% per annum and oil price will not fall lower than $50
a barrel, an inflection point may happen between
2023-30 that will boost the growth of EVs exponentially
Source: Bloomberg
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22
Electronic Access Controls
• Global electronic access control and
authentication market will reach almost
$50 billion in 2020.
• The market is likely to expand at a healthy
15.3% CAGR during the forecast period
from 2014 to 2020.
• Card-based access systems continue to
have a major share at about 71% while
biometrics have an 18% share.
• In Biometrics, the market reached
US$9.58 Billion in 2015 and will have a
CAGR of 15.8% up to 2023
Source: Freedonia, Transparency Research, Daedal Research, Yole Development
15.3% CAGR
2014-20
$50B 2020
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IoT - Connectivity
30.6%
27.5%
25.0%
16.9%
Hardware
Services
Software
Connectivity
Source: IDC
• Worldwide spending on
the Internet of Things
(IoT) reached $737 billion
in 2016
• Global spending on IoT
to grow at a CAGR
15.6% from 2015-2020,
reaching $1.29 trillion in
2020
• Industries that topped in
the spending were
Manufacturing, Transport
and UtilitiesIoT Investments in 2016
24Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
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Electronic End Markets Outlook
INDUSTRY CAGR % Sources
Industrial Electronics
Biometrics
Electronic Access Control
Spending on Robotics
3.3%
15.8%
15.3%
19.7%
2015 - 2020
2015 - 2023
2014 - 2020
2016 - 2020
New Venture Research
Global Market Insight
Freedonia
IDC
Medical Electronics 5.4% 2016 - 2022 Markets and Markets
Power Module 5.5% 2015 - 2020 IHS Markit
Global spending on IoT 15.6% 2015-2020 IDC
Electronic Vehicle (EV) Sales 40% 2016-2020 Yole Development
25Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
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Summary
• IMI continues to outperform EMS industry
• Improvement in Operating Margins
• Service & Quality
• Providing more solutions than competition
• Continue to invest in CAPEX anticipating the growth in 2017 in
the areas of automotive, industrial, and IoT technologies that
are disruptive
26Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
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27Your Innovative EMS Partner ‹ ›Strictly Confidential. All rights reserved by Integrated Micro-Electronics, Inc. (IMI) – including any disposal, exploitation, reproduction, editing, distribution, as well as in the event of application for industrial property rights. April 2015
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