Company Profile (Credit Suisse)...2007/09/12 · GPS, Mobile Phone SONY PSP, PS3 Notebook ,Green...

1Innovation, Teamwork, Excellence, Quality

ITEQ Corporation

Hae-Wei Wan September 12 - 14, 2007


Company ProfileCompany Profile

EstablishedEstablished：：April 10, 1997April 10, 1997HeadquarterHeadquarter：：Ping Cheng Ind.Zone, Ping Cheng Ind.Zone, TaoyuanTaoyuanProductsProducts：：High Performance LaminateHigh Performance Laminate、、

PrepregPrepreg、、Mass LamMass LamCapital Capital ：：82 Million USD 82 Million USD EmployeeEmployee：：2,2002,200ChairmanChairman：：Dr. Dr. HaeHae--WeiWei WanWanPresidentPresident：：Dr. Michael KaoDr. Michael Kao


Manufacturing Sites

Total capacity/mo (Q4,07)------------------------------CCL : 2.1 Million SheetFCCL:100K M2MASS LAM : 1,300KSFHeat Sink: 180K PnlOptical Film: 153K M2

Taiwan

Ping Cheng Headquarter

Area: Land 12,000M2

Plant 16,000M2

Product : CCL,

LED Heat Sink

OPTICAL FILMTaoyuan

WuxiLand:80,000M2Product:CCL

Humen DonguangLand :30,000M2Product:CCL,Mass Lam

HuangjiangLand: 17,000M2Product: Mass Lam

GuangzhouLand:40,000M2Product: CCL , FCCL

★★

★★

★


Management PhilosophyManagement Philosophy(Innovation)(Innovation)

(Teamwork)(Teamwork) (Excellence)(Excellence)

(Quality)(Quality)

Honesty& Integrity

Lifetime Learning

Profit SharingCustomer Oriented


Application

4C Electronics

Consumer Electronicsi-pod, Game, Mobile Phone,Digital TV, DSC, DVD

Car ( Automotive)GPS, Air Bag,ABS, Electronic & Power System

ComputerNotebook,Server, Memory Module, Disk Drive,LCD,MB

CommunicationBase Station, Backplane,Satellite…


Lead-free RigidMother-Board

Perf

orm

ance

ApplicationTg120-130 CEM1,CEM3 Composite CCL

Tg140, Tg150 FR-4Multifunctional

Tg150 high thermal resistance

Tg150 Thermal reliability Green Laminate

Tg160 Low Df & lead free Green Laminate

Tg180 Lead Free High TgGreen Laminate

IT-168,IT368

for Lead Free 4-12 LLow CTE Laminate

For 2-8 LayerRigid Board

for Halogen-Free &Lead-Free Product

IT-140/IT-150

IT-158

for Lead Free 2-8 Layer & Modulus PWB

IT-140G

IT-155G

for Halogen Free Higher Layer Count.

IT-170G

ITEQ CCL & Prepreg Product Line

for Halogen-Free &Low DF Product

IT-180A Tg180 Low CTELead Free Laminate

for Lead Free ProductVery High Layer Count.(>20)

Tg180 Lead Free High Tg Laminate

for Lead Free ProductMed-High Layer Count(>10). IT-180

High Layer PCBPower Supply, i-pod Server, Base StationAutomotive, X-BoxIC Test, Substrate

Server,Notebook,LCD Module,GPS, Mobile Phone

SONY PSP, PS3Notebook ,Green Mobile Phone

4C Electronics

Tg140High CTI Laminate

IT-600 For High CTI materialMedium Layer Count.

Washing machinePlasma TV

Low DK,Low DF Tg 200High Tg Lead Free

LaminateIT-200D Base station Telecom Eq, High Freq. Appl.

Tg140 FR-4Multifunctional

IT-588

Mobile PhoneTelecomm. Equipment

For Single, Double-sideRigid Board


Double side 1.6mm laminate

Copper foil

prepreg

Copper foil

7628 (0.2mm) prepreg x8ply

Copper foil 1oz or Hoz


Copper foilprepreg

4-layer

Copper foil

prepreg

Copper foil

7628 prepreg x6ply



1.2mm

prepreg

Copper foil2116or 1080 prepreg


Copper foil 1oz or Hoz2116or 1080 prepreg

1.6mm 4-layer

L2

L1

L3

L4


L1

L2

L3

L4

L5

L6

L7

L8

L9

L10

10-layer

L2

L1

L8

L9

L3L4

L5L6

L7

L10

2116 or 2ply X1080Cu foil Hoz

Cu foil H or 1oz

Cu foil Hoz

Core 2116 x1 (0.1mm)or 1 x 1080(0.075mm)Cu foil Hoz

10-layer

L2

L1

L8

L9

L3L4

L5L6

L7

L10

2116 or 2ply X1080Cu foil Hoz

Cu foil H or 1oz

Cu foil Hoz

Core 2116 x1 (0.1mm)or 1 x 1080(0.075mm)Cu foil Hoz


CuringCutting

RESIN HARDENER ACCELERATOR

MIXING

PREPREGGlass Fiber

Treating

coating


Liquid FilmCoating

Plying up

Inner Layer

Final InspectionX-ray & Routing

Surface Treatment Dry Film Laminating Exposure

Lamination

Develop,Etching,StripBlack OxideA.O.I


Geographical Sales Distribution (2006)Geographical Sales Distribution (2006)

USA 1%Europe 8%

Korea 5% Japan 2%

Taiwan 32% China 51%

SE Asia & Other 1%

•Production Site:Taiwan (Ping Cheng).Dongguang (Humen, Huangjiang). Wuxi•Sales Network:Taiwan.China(2).Europe(2).USA(2).Japan(2). Korea(2).SGP.


Core CompetenceCore Competence

High Tg

FR-4Halogen Free

Anti-CAF

Low Dk Formulation

Coating

Telecom, Server & IC Substrate

Wireless Communication

4C Green Materials

Automotive Electronics


11.1%

10.8%

10.6%

9.4%

6.4%5.3%4.7%

4.2%

3.8%

3.3%

2.6%

2.1%

2.0%

23.8%

Kingboard, 850M

Nan Ya, 824M

Isola, 801 M

Matsushita, 723 M

Doosan, 489 MSheng Yi, 410 M

Hitachi Chemical, 361M

Mitsubishi, 320 M

ITEQ, 290M

Nelco, 250M

Sumitomo, 200M

TUC, 164M

Chang Chun, 150M

Others, 1,824M

World CCL Ranking (2006)

Unit: M USD

Total: 7,656 M


World CCL by Type (2006)

FR-4 High Tg,$1171M, 15.3%

FR-4,$3915M, 51.1%

FR-4 Halogen-Free,$307M, 4.0%

Paper,$936M, 12.2%

Composite,$374M, 4.9%

Special and Other ,$953M, 12.5%

Source:Prismark,2007Note: Includes prepreg

TOTAL: $7.66 Bn


2005~2009 CCL Growth ForecastSource:JMS,2006

-4.6%

18.0%

13.9%

28.3%

22.3%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Glass epoxy GP Middle Tg High Tg Build-up material High-freq Low DK


CCL Sales by Region (2006)Source:Prismark,2007

Asia,$5,767M, 75.3%

Japan,$881M, 11.5%

Europe,$497 M, 6.5%

America,$511M, 6.7%

TOTAL: $7.66 Bn TOTAL:$5.77Bn

China,$3,317M, 43.4%

Taiwan ,$1,350M, 17.6%

Korea,$686M, 8.96%

other,$414M, 5.34%


• Delamination occurred near buried via after reflow

Common Lead-free Problem

Reflow Tmax = 255℃


Application of IT158 Material

Notebook (10L) LCD (2~4L)

Automotive (6 oz Cu)

Mobile Phone (HDI)


Application of IT180 Material

Power supply (6 oz Cu)

Xbox

Automotive(12 & 6 oz Cu)

Telecommunication(42L)

Server (10L)

Power Supply(6 oz Cu)


Application of Halogen-free Materials

IT140G (PSP, DDR, Mobile Phone) IT155G

(TV Board)

IT170G(2+ n +2)


2006-2010 ITEQ Group Capacity Planning

75/5575/5575/5575/5575/55Humen/Huangjiang130130130130130

MASS LAM(10KSF2/mo)

180180180180160Taiwan660540540480300Wuxi600600480420300Humen/Guangzhou

1500132012001080760Prepreg(10K M/mo)4545454540Taiwan

13510510510560Wuxi120120906060Humen/Guangzhou300270240210160CCL(10K sheet/mo)

20102009200820072006Product Year


ITEQ’s Strength

• Total Solution Provider for CCL, FCCL as well as mass lam service.

• Localized manufacturing and service in strategic regions (Taiwan, pearl harbor delta, and Yanze river delta)

• Strong R & D capability for advanced materials such as high Tg, halogen free, lead free, low Dk laminate

• Leading Independent supplier in greater China region with high caliber management team

• ITEQ’s brand name is widely recognized in CCL industry


ITEQ’s Opportunity

• Fast growing 4C electronics & PCB market in Greater China region

• Worldwide switching to lead free and halogen free materials from2006-2010

• More than 14-28% annual growth of high performance materials within the next few year

• Extremely high growth potential of rigid-flex market

• Lead free era forms a major barriers (technology, products, & service), which differentiate leading and mediocre suppliers. That gives ITEQ a golden opportunity to grow


Insulated Metal Substrate(IMS, LED Heat Sink)


The ProductIMS – IM PCB


The ProductMicrostructure of IMS


• Excellent Radiation – Provides a low resistance thermal path for heat

dissipation on mounting parts• High Heat and High Voltage Resistance

– Survives in-use and in-process mechanical, thermal, environmental conditions

• Flexible Structure Arrangement• Environmental Friendly

The ProductFeature of ITEQ’s IMS


Application of IM PCBApplication of IM PCB

LED Light Bar

High Density Power Supply

Automobile

Others


Market Trend of IMSHeat dissipation on high power LED leads the growth of IMS

IMS Application

FR-4 Application

US$ Worldwide LED application


LCD TV Market Trend32” LCD TV Panel CCFL vs. LED

Big size LCD TV will start implement LED light bar in 2008


Large-Size LCD Major Market OutlookSource:Display Search,2006

0

20

40

60

80

100

120

140

160

180

Uni

ts(M

illions

)

Desktop MonitorsNote PCsTVsOthers

De s ktop Monitors 1 .9 5.4 7.3 18 .4 35 .5 53.7 74.6 118.6 134 .6 147 .2 160 .2 171.2

Note PCs 11 .5 16 .7 21.7 24 .8 29 .7 38.6 47.1 61 .8 76 .2 86.9 98.9 113.0

TVs 0.0 0 .0 0 .2 0 .6 1 .5 5 .0 12.2 27.1 42.0 59.5 76.7 90.0

Othe rs 0 .6 0.9 1.4 1.5 1.9 2.5 4.6 8.0 11.6 14.2 17.4 20.9

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Each NB / Monitor needs 2 light bar, each 18” x 24” panel can fit in 30 light barsEstimate IMS demand for NB/Monitor in 2008-2009 will be 144K-288K PNL/mo,10-20% shareEach LCD TV need 1 paned 18” x 24” when applying LED light barEstimate IMS demand in 2008-2009 will be 320K-640K PNL/mo, 5-10% share


Prepreg Suppliers Benchmark

SuppliersHeat

Conductivity(W/mk)

BDV(kV/mil)

Thickness(mil) Tg (oC)

Unit Price(USD/PNL)

Bergquist USA (CML) 1.3 900 6 130 18Laird UK (1KA) 3 800 4~12 105 17NRK Japan (NRA-E) 3 600 3 100 --NRK Japan (NRA-8) 1.8 800 4 130 --


IMS Supply and Demand

SupplierPP Capacity,Sheet 18" x

24"/mo

IM CCL Capacity,Panel 18" x 24"/mo

Bergquist USA 300,000 100,000 Laird USA 100,000 30,000 NDK Japan 200,000 100,000 NRK Japan 70,000 10,000 Laird-ITEQ TWN 180,000 Total 670,000 420,000 2008-2009 Demand 514K-978K


Brightness Enhancement Film(BEF Introduction)


Why do we need BEF for LCD Optical Structure?

100%

×60%

×40%

×30%

Bottom Polarizer (40%)

Active Matrix (70%)

Lliquid Crystal LayerColor Filter (30%)

ITO Glass

Top Polarizer

Light Efficiency

100%x0.60×0.40 ×0.70 ×0.30 = 5%

Lightguide(60%)


Types of LCD Backlight Units (BLU)

Direct Type Backlight:

Edge Type Backlight :

Top Diffuser Film

Bottom Diffuser FilmLight Guide Plate

Reflector

BEF & DBEF

Diffuser Plate

Reflector

BEF & DBEFTop Diffuser Film

Bottom Diffuser Film


BEF(Prism Sheet)• BEF is a microscopic prism sheet structure (internal

distance around 50~60μm with 90 degree relative angle) formed by coating UV curable Acrylic Resin on Polyester Optical Film

• The microscopic prism structure can refocus the scatter light beam from lightguide through internal reflection mechanism to within ±35 degree on-axis direction.

• One BEF film can enhance more than 50% light intensity。Such result can significantly improve the power management efficiency of backlight unit for LCD module.

PET

Acrylic Resin


Q2’06 BLU Cost Structure (15.4” NB)

Note: Most 15.4” Notebook panels use both BEF & DBEF films. However, certain Japanese makers use two BEF with one BEF to enhance the power efficiency.

15.4"WCCFL7% Lightguide

11%

Diffusion sheet15%

Reflectivesheet3%

BEF & DBEF28%

Metal BezelBackt11%

OthersMaterials

8%

Overhead,SG&A, Package

17%

•Source: DisplaySearch Q3’06 Quarterly Backlight Lamps & Backlight report


Note: In case of 17” LCD monitor panels using one BEF film only –the BEF film accounts for 17% of the backlight’s total cost. The CCFL becomes the most critical cost.

Q2’06 BLU Cost Structure (For 17” MNT)17"MNT

CCFL22%

Lightguide10%

Diffusion sheet10%

Reflective sheet2%

BEF & DBEF17%

Metal Bezel Backt12%

Others Materials10%

Overhead,SG&A,Package

17%



Note: In case of using both BEF and DBEF in 32” LCD TV backlight, the BEF+DBEF cost will account for 27% of the total backlight cost.

Q2’06 BLU Cost Structure (For 32” TV)


32"W(BEF+DBEF)

CCFL26%

Metal BezelBackt6%

OthersMaterials

6%

Inverter Cost15%

Diffusionboard6%

Diffusionsheet5%

BEF & DBEF27%

Reflectivesheet2%

Overhead,SG&A, Package

7%

43Innovation, Teamwork, Excellence, Quality .

TFT LCD BEF market demand will be reaching 26 million square meters in 2006, and expected to reach 37.5 million square meters in 2009. With US$25/m2 unit price, we expect the market value is US$725Million in 2007, and will reach US$900M in 2009(Source: Display Search 2006).

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Km2

0%

10%

20%

30%

40%

50%

TFT-LCD BEF 16,537 23,869 26,025 29,075 34,108 37,492

YoY 20% 44% 9% 12% 17% 10%

2,004 2,005 2,006 2,007 2,008 2,009

K Square Meter

World BEF Market Volume for TFT LCD


ITEQ Prospect• Start 3 layer (halogen free & high Tg) FCCL fabrication from 4th

quarter of 2007

• Integrate rigid, flexible and rigid-flex materials with strong alliance with downstream PCB customers and OEM makers

• Complete the development and approval for high frequency materials. and buried-passive device materials within the next three years

• Provide IMS heat sink materials for LED backlight unit, LED lighting, power supply & Automotive Application from 3rd quarter of 2007

• Develop optical BEF materials for LCD backlight application and will start production from 4th quarter of 2007.

• Continue enhance advanced electronic materials market share and strengthen ITEQ’s brand name image in the Electronic Materials Industry


ITEQ VisionITEQ Vision

• Become top five CCL supplier and top 2 mass lam service provider in the world by 2010

• Become one of the leading electronic materials supplier in the world by 2015

Innovation, Teamwork, Excellence, Quality

ITEQ Corporation

Prepared by ：Lawrence LuhDate ：Sep.13〜14 , 2007

www.pdffactory.com

http://www.pdffactory.com


Products Mix

2006 Sales 2007 H1 Sales

FR-4

56%

Lead Free

11%

Hi-Tg

16%

Halogen Free

3%

MLB

14%

FR-4

44%

Lead Free

22%

Hi-Tg

18%

Halogen Free

4%

MLB

12%

www.pdffactory.com



Sales & Gross Profit Margin

2,130 2,948 2,940 2,9963,2442,774

16.5%

13.9%

17.5%15.5%14.9%

14.4%

1,500

2,000

2,500

3,000

3,500

Q1 Q2 Q3 Q4

Unit：NT$M

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%2006 Sales 2007 Sales2006-Gross Profit (%) 2007-Gross Profit (%)

July 2006：941／14.5%July 2007：1,240／15.9%

www.pdffactory.com



Sales & Gross Profit Margin of CCL

1,871 2,577 2,570 2,6092,7742,449

16.2%

18.4%

14.3%

15.5%15.4%

15.3%

1,500

2,000

2,500

3,000

Q1 Q2 Q3 Q4

Unit：NT$M

5.0%

10.0%

15.0%

20.0%

25.0%

2006 Sales 2007 Sales2006-Gross Profit (%) 2007-Gross Profit (%)

July 2006：809／14.2%July 2007：1,094／17.2%

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Sales & Gross Profit Margin of MLB

259 372 370 387471324

11.1%

18.9%

15.3%

10.6%9.6%

11.7%

100

200

300

400

500

Q1 Q2 Q3 Q4

Unit：NT$M

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

2006 Sales 2007 Sales2006-Gross Profit (%) 2007-Gross Profit (%)

July 2006：132／8.4%July 2007：146／6.4%

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2007Y Operating Expense

64.6 67.0

87.066.5

18.9

27.7

2.1%

2.3%2.3%

2.7%

0.7%0.9%

10.0

30.0

50.0

70.0

90.0

110.0

130.0

150.0

170.0

190.0

Q1 Q2

Unit：NT$M

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Selling Expenses G&A Expenses R&D ExpensesSelling(%) G&A(%) R&D(%)

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Non-operating Income(Expense)

(20)

(37)

(2)

22

(40)(30)(20)(10)

010203040

2006 H1 2007 H1Unit：NT$M

FX gain (loss) Compensation for clients

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Innovation, Teamwork, Excellence, Quality

Q & A

8

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Company Profile (Credit Suisse)...2007/09/12 · GPS, Mobile Phone SONY PSP, PS3 Notebook ,Green...

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