Pioneering Global Micro LED Technology

Executive Summary We are the World No.1 LED signage display driver IC supplier with expertise in

providing IC products and services not only for LED display, but also for LED backlighting and LED lighting.

Innovation in technology and business model is part of our DNA.

We believe Micro LED will dominate the next generation of display technology. Positioning ourselves as the pioneer in Micro LED, we are collaborating with the Taiwan government and industrial partners to accelerate the development and adaptation of Micro LED.

To enhance earnings growth, we intend to transform into a leading Micro LED solution provider for multiple product segments. Target product segments include Micro LED display micro-assemblies and integrated driver IC solutions for wearables, mobile devices and TV applications.

Given the dual trends of migration to fine pitch displays and increasing penetration of Micro LED, we are committed to surpassing 30% annual top line growth over the next three years.

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Company Overview01

Micro LED – The next disruptive display technology & MBI strengths

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Growth Strategy and Goal03

Financial Summary04

Agenda

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Company Overview

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MBI – The LED Driver IC Expert

As a mixed-signal IC design house, we specialize in power management and opto-electronic ICs for the LED display market with No.1 market share in fine-pitch display driver IC market.

Founded in June, 1999. No. of employees: +180 Listed on TWSE in October, 2007.(Ticker : 3527) Market cap:US$80mn Major products: LED Display Driver IC

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2,155 2,147 2,033

2,491 2,716

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

500

1,000

1,500

2,000

2,500

3,000

2013 2014 2015 2016 2017

Sales (NT$mn) y-y% (RHS)

Technology Innovation

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MBI’s 13% R&D intensity is the highest among peers

Highest R&D intensity

and200+patents*

LED DisplayCommercial Display

Traffic Sign /VMS

Micro LED Display

LED ArchitectureLED Mesh

LED Strip

LED Cluster

LED LightingLED Wall Washer

Flat Panel Lighting

Spot Light

Automotive LightingInterior Car Lights

Indicator Lights

Head/Tail Lights

*167 approved, 35 pending

MBI has a Global Footprint

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Signage displays equipped with MBI driver IC are installed around the world, supported by MBI’s sales and service network.

Displays with Macroblock driver IC.

Micro LED The Next Disruptive Display Technology & MBI Strengths

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Micro LED Footprint is 99% Smaller than Traditional LED

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LED

Micro LED

Micro LED is the Next Disruptive Display Technology

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Film or Glass

RGB Micro LED

Electrode

Substrate

Micro LED display has simple architecture and overwhelming advantages:

Polarizer

Encapsulation

ElectrodeEIL / ETL

Organic Light-emitting Layer

HTL / HILElectrode

Substrate

OLED Liquid Crystal

Polarizer

Glass Substrate

Glass Substrate

Color Filter

Backlight Module

Polarizer

TFT LCD

Micro LED OLED LCD

Type Self-emissive Self-emissive

Backlight / LED

Contrast Ratio ∞ ∞ 5000 : 1

Life Span Long Medium Medium

Response Time ns μs ms

Image sticking No Yes -

Lowest Working

Temperature-100~120℃ -30~85℃ -40~100℃

Viewingangle

Wide(close to 180°) Medium Narrow

Micro LED

Longest life spanQuickest response

Highest brightnessLowest power consumption

No image stickingHighest pixel per inch

*Source: LEDinside, Morgan Stanley Research

MBI Core Strengths Match Current Trends in Micro LED Development

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1. MBI is leveraging its core competencies to move into Micro LED MBI display driver IC, module, system solutions, channel and services

2. Indoor display trending towards Mini/Micro LED-equivalent pitch Requires the development of precision die control and integrated ICs

3. MBI innovation culture positions us to capture addressable market

Core Competency

Driver IC

Micro LED

DisplayModule

DisplaySystem

SalesChannel

ClientService

4%10%

13%

20%

30%

30%

1%4%

7% 15%20%

30%

1% 2% 5% 10% 15%

% o

f fin

e pi

tch

mar

ket s

ize

P2.5 P1.9 P1.6 P1.2 P0.9 <P0.9 *Fine pitch display migration

*Mini/Micro LED-equivalent pitch

Growth Strategy and Goal

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Core Business Will Continue to Grow with Industry Move to Fine Pitch Display

Fine pitch display driver ICFine pitch display market to grow from US$789mn to US$1,350mn, +14% 2016-20 CAGR*.

Customized IC solutions for cost or performance driven clients.

Next generation generic driver ICInnovation of driver IC technology: triple channel count

Better performance and ease design.

IoT display/lighting systemSensor, big data, error detection and failure prediction for display and lighting.

Integration of IoT function for interactive smart display

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*Source: ABI Research

IoT Embedded System

Sensor

Gathering data

Communication

Upload data

Cloud

Storage

Big data

Analysis

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Lighting

Smart Display

MBI Mission and Vision

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MBI 2.0

MissionIlluminating life through lighting innovation.

VisionA leading LED player using digital & data strategies to empower our partners in expanding their addressable market.

Financial Summary

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Key Financial Performance

17Source: Capital IQ, Bloomberg and company data

32% 34% 33% 33%28%

6%9%

6%9%

5%0%

5%

10%

15%

20%

25%

30%

35%

40%

2013 2014 2015 2016 2017

GPM OPM

4.9 5.5

3.5

6.1

4.1

9%

12%

6%

11%

7%

0%

2%

4%

6%

8%

10%

12%

14%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2013 2014 2015 2016 2017

EPS (NT$) ROE(RHS)

2,155 2,147 2,033

2,491 2,716

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

500

1,000

1,500

2,000

2,500

3,000

2013 2014 2015 2016 2017

Sales (NT$mn) y-y% (RHS)

82%

81%

100%

58%

61%

5% 7% 8% 5% 4%

$0

$2

$4

$6

0%

20%

40%

60%

80%

100%

120%

2013 2014 2015 2016 2017

Payout ratio %Yield %Cash dividend per share (RHS)

2013-2017 Income Statement

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NT$ million 2013 2014 2015 2016 2017

Sales Revenue 2,155 2,147 2,033 2,491 2,716

Gross Profit 691 733 660 818 763

Operating Profit 132 183 112 231 131

Income before tax 165 223 118 206 152

Net Income 159 181 114 198 140

EPS (NT$) 4.9 5.5 3.5 6.1 4.1

Y-Y (%)

2014 2015 2016 2017

-0.4 -5.3 22.5 9.0

6.2 -10.0 23.8 -6.7

37.9 -38.5 105.5 -43.3

35.3 -47.0 74.8 -26.4

13.7 -36.6 72.7 -29.3

13.9 -36.5 72.7 -29.3

Gross Margin 32% 34% 33% 33% 28%

Operating Margin 6% 9% 6% 9% 5%

Net Margin 7% 9% 6% 8% 5%

ROE 9% 12% 6% 11% 7%

Source: Bloomberg and company data

2013-2017 Balance Sheet

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NT$ million 2013 2014 2015 2016 2017

TOTAL ASSETS 2,063 2,180 1,928 2,296 2,582

Cash 1,017 901 819 650 848

NR & AR 354 449 350 587 737

Inventory 289 354 267 603 518

Fixed Asset 186 177 182 166 172

TOTAL LIABILITIES 559 616 417 668 917

Bank Loans 15 15 35 2 42

AP 286 340 170 408 335

TOTAL EQUITY 1,504 1,564 1,510 1,628 1,665A/R turnover days 50 68 72 69 89Inventory turnover days 77 83 83 95 105

A/P turnover days 65 81 68 63 69

Cash conversion cycle 62 70 87 101 125

Y-Y (%)

2014 2015 2016 2017

5.7 -11.6 19.1 12.5

-11.4 -9.1 -20.7 30.4

26.8 -22.0 67.5 25.6

22.4 -24.7 126.0 -14.1

-4.9 2.5 -8.5 3.8

10.2 -32.2 59.9 37.3

0.0 133.3 -94.3 1988.9

18.7 -50.0 140.7 -18.1

4.0 -3.5 7.8 2.3

Source: Bloomberg and company data

THANK YOU

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