Jentech Precision Industrial Co., Ltd.

Investor Conference

2017/June

Stock Code:3653

Outline Jentech Profile

Industrial Development Trends

Financial Information

Jentech profile Founded Date：1987/June

ISO 9001, TS16949 Certification

Employee size：Taiwan: 970, Wuxi: 639.

Headquarters: Taiwan

Huaya plant, Dayuan plant

Global Base：

China：Wuxi plant

Germany：Munich office

Malaysia：Penang office

USA： Phoenix office

Jentech Huaya Plant (Taiwan Headquarters)

China, Wuxi Plant Taiwan, Dayuan Plant

Core Products

Heat Spreader SMD LED LEAD FRAME

Communication Peripherals Electronic Peripherals and Others

Production Highlights

Utilization Stamping Plating Injection Molding

Heat Spreader 60% 70%

LED Lead Frame 80% 70% 70%

Quantity 2014 2015 2016

Heat Spreader 0.94 0.97 1.07

LED Lead Frame 121 122 125

Unit：100 Million

Industrial Development Trends

(I.) Current Products

Heat Spreader / LED Lead Frame

a. Product Introduction

b. Current Status of Market

c. Jentech Strategy

Heat spreader is one of major thermal conductive component. It is made of copper, aluminum or high thermal conductivity metal. Heat spreader is part of direct material of CPU and GPU which will contact with chip directly. A wide range of application includes 3C products, gaming products, optoelectronic components and automotive electronic industry.

Heat Spreader Introduction

Thermal Solutions

Although PC and NB is no longer a leading growth market,the demand of gaming products still maintain certainamount. Now the market is focusing on thermal solutionsfor communication, server, data center and automotivesemiconductors that Jentech is already step into theseterritory and have a great accomplishment.

Follow the trends of Internet of Things (IoT), automotive, bigdata and Artificial Intelligence (AI) market popularize. Thethermal solutions for cloud data center and high speedmobile smart device will grow dramatically. We expectthermal management will be key item in the market infuture.

Current Status of Market

Jentech’s Market Strategy

1. One stop shop service(vertical integrated capability) to ensure a good quality and stable supplement.

2. Develop new material for thermal management and the application of production technology.

3. JDM with customer to ensure customer satisfaction.

Made in Jentech

EMCPLCC

EMC

Mid-High power

Ceramic

High power

PLCC

Low power

Jentech’s Lead frame products focus on every kind of automotive application, including PLCC, EMC, and Ceramic.

Vertical integration in engineering, mature technology, and highly cost effective makes lead frame sales boosted.

LED Lead Frame

Current Status of Market

Inner Lighting:- Top light, map/

reading light- Dome light

Instrument Panel Backlight

PLCC

Tail Lights:- High-Center Parking lamp- Tail lamp- Parking lamp- Back light- Tail lamp unit

Rearview Mirror

Indicator Light

EMC

CeramicHeadlight

New application of

electrical control and

multimedia in

automobile brings car

lighting demands.

Growing EMC lead frame

automotive application (mid

power) in market.

High power ceramic LED

plate is suit for headlight,

expecting a sharp

increase in market

penetration in the future.

1. Jentech has being a reliable supplier for fifteen years

since certified by Europe automotive LED famous plant in

2001, and has built a firm product system.

2. For our reliability, specialty, and long-term partnership,

Jentech LED frame is the first choice of many new

customers developing automotive components in Asian

recently.

3. Supplying PLCC, EMC, Ceramic, and all sorts of products

to fulfill all demands of our customers.

Specialized Automotive LED

L/F Supply Partner

Jentech’s Market Strategy

Industrial Development Trends

(II.) New Product

-ILM / Cooling Baseplate

a. Product Introduction

b. Current Status of Market

c. Jentech strategy

CPU Connector Loading Mechanism Introduction

Products: Loading Mechanism for CPU Connectors Function: Provide sufficient clamping force for CPU, Socket and

Heat sink to guarantee well electrical connectivity and thermal conduction .

Applications: Cloud Severs and Data Centers

Current Status of Market

Worldwide server shipments (in million)

Estimate

Due to new technology trends of cloud computing, AI and IoT, the demands of cloud servers and data centers keep increasing. As a result, the delivery of CPU, connectors and loading module will be steadily growing, too.In the future, connector and loading mechanism design will become even more customized, so shipping quantities and unit price will gradually increase.

1. Provide high quality products to help customers gain higher market allocations.

2. Participate product developments to ensure leading position in market.

3. Implement full automation assembly for cost reduction and quality assurance.

4. Enhance R&D capability in China factory to provide integrated service from product design to mass production.

Jentech’s Market Strategy

Product: Cooling Baseplate Application: Cooling for EV/HEV Inverter Features: Improve the efficiency and life, stability

IGBT Power Modules

Cooling baseplate of IGBT Module

6

Cooling Baseplate Introduction

Fin

Chip /DBC substrate馬達

Inverter

Battery

Liquid inLiquid out

Top/Bottom

Worldwide Market

With over 2 million electric cars sold worldwide in 2017. The IEA said in its report that the electric car stock will range between 9 million and 20 million by 2020 and between 40 million and 70 million by 2025.

Total Qty.(10,000 cars)

Year

3. Work with our customer to develop the next generation products through our strong development and design capabilities.

1. Vertical Integrated Manufacturing Capability: Control the whole process, production of cost

and quality advantages

2. Verification from Tier 1 manufacturers

Jentech’s Market Strategy

SWOT Analysis

S Strong vertical integration and process

capability, based on SAP management system, to stably offer reliable quality

Certified by several world-class clients

Established automated design team for many years, able to continuously create competitive advantages in production cost control

Leading critical cold forging technology and complete equipment establishment

W Rise of labor awareness, many new political

measures to be effectively solved and adapted

Production base in Mainland China is lack of electroplating process integration

The front-end R&D of ODM started relativelylate

O Increased use of high-end servers in cloud/big

data/artificial intelligence, growing opportunities of developing new cases together with international customers

Booming automotive semiconductors, providing Jentech with excellent opportunities of applying IGBT modules in electric vehicles

T Price-cutting competition in low-end products

from domestic small competitors affecting profit

Potential competitors from Mainland China, supported by local government, are covetously eyeing; so threat is increasing

Condensed Income StatementUnit : NT$ thousand

2013 2014 2015 2016 2017Q1

Net Sales 3,552,253 3,713,612 3,309,781 3,386,686 891,601

COGS 2,679,528 2,759,892 2,570,676 2,568,714 641,986

Gross Profit 872,725 953,720 739,105 817,972 249,615

Operating Expense 509,639 561,239 579,999 560,429 131,757

Operating Income 363,086 392,481 159,106 257,543 117,858

Net Income 289,314 406,531 226,359 243,953 5,221

Basic EPS (NT$) 2.73 3.83 2.14 2.32 0.05

Gross Margin 24.57 25.68 22.33 24.15 28.00

Operating Margin 10.22 10.57 4.81 7.60 13.22

Net Margin 8.14 10.95 6.84 7.20 0.59

Profit Margin%

Revenue from Product Portfolio Optimizing

Quarter 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1

Revenue(thousand) 824,946 881,852 791,898 811,085 806,217 869,498 844,237 866,734 891,601

Stock Code:3653

Thank YouQ&A

Jentech Precision Industrial Co., Ltd.Investor Conference

2017/June