AP Systems Investor Relations 2020 Contents Company - PowerPoint PPT Presentation

AP Systems Investor Relations 2020

Contents • Company Introduction • Global Market Outlook • Financials • Products

Company Introduction • Overview • Corporate Structure • Growth History • Global Network and Facilities • Major Customers

Company Overview AP Systems supplies more than 90% of OLED equipment worldwide [Profile] [Organization] Established in 1994 CEO Paid in Capital KRW 7.6 billion Founder Kiro Jung (CEO at APS Holdings) CEO Youngjoo Kim Support Unit Business Unit No. of Employees 562 Overseas Office (China/Vietnam) Headquarters: South Korea (Dongtan) Locations Fab: South Korea (Dongtan, Balan, Cheonan) Overseas: China (Shanghai), Vietnam (Hanoi) Mgmt./Admin. Display SEMI. R&D Center Company Type Listed in KOSDAQ (KQ 265520) Division Division Division as of Feb 03, 2020 4/17

Corporate Structure AP Systems is an affiliate of APS Group which aims to be the best total solution provider 21% (25%*) Display & Semiconductor 26% Manufacturing Equipment 59% 60% 43% Display Inspection Equipment 100% 100% Semiconductor Wafer Inspection System AP Systems AP Systems ESC, Coating, Cleaning CHINA VINA Display & Semiconductor Component Processing Equipment Control S/W 5/17 * After conversion of all preferred stocks

Growth History AP Systems creates values through technologies Expansion of APS Group 2010 Acquired ZenithWorld 2011 Spin off S/W Biz to KORNIC 2013 Established APS China Expand New-Biz applications 2014 Acquired DE&T Diversified R&D for products 2015 Acquired Nextin 2016 Established APS Vietnam Launched to Quantum Jump overseas market Expanded Business Display(OLED) Equip. Biz Expanded Business Display(LCD) Equip. Biz Software Semi. Equip. Biz biz Equip. Control Software Biz `94 ~ `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 19 ~ `24 6/17

Global Network and Facilities Completed CAPEX which will generate sales of $2B AP Systems Total Clean Room : 30,000m 2 FAB 1 (Dongtan) Headquarters CS Center Clean Room: 5,200m 2 APS China Est. 2013 FAB 2 (Dongtan2) > Office Clean Room: 4,800m 2 > CS Centers FAB 3 (Baran) APS Vietnam Clean Room: 2,800m 2 Est. 2016 FAB 4 (Cheonan) > Office > CS Centers Clean Room: 17,200m 2 7/17

Major Customers Accelerating diversification of customers Display Semiconductor 8/17

Global Market Outlook • OLED Market (1) : Application • OLED Market (2) : Flexible Capacity

OLED Market(1) : Application OLED Market is surpassing LCD market with applications expanding OLED Penetration into Smartphone Panel Market (Million Unit) Smartphone Panels % AMOLED Panels Smart- 2,100 50% phone 44% 43% 45% 41% 2,000 38% 1,941 1,977 2,010 40% Watch VR 34% 1,900 35% Diversifying 1,895 29% 30% 1,800 1,835 OLED 25% 24% 1,768 Applications 1,700 Portable 20% 17% TV Device Screen 15% Display 1,600 1,609 10% Auto- 1,548 1,500 motive 5% 1,400 0% 2015 2016 2017 2018 2019F 2020F 2021F 2022F Source: IHS (2017) 10/17

OLED Market(2) : Flexible Capacity Designing freedom from Ultra Thin Thickness only Flexible OLED can implement Flexible Capacity as Share of OLED Capacity OLED Equipment Market Outlook (Unit: KRW bn) Curved Edge Foldable Rollable Stretchabl e 9,000 8,808 (mm 2 ) 8,393 8,500 8,298 90% 45 Flexible Rigid 77% 7,940 % Flexible 75% 75% 80% 40 8,000 70% 39 70% 35 60% 7,500 35 60% 30 7,000 50% 25 26 40% 6,500 20 40% 19 30% 15 6,000 19% 15% 13 20% 10 11 10 5,500 9 8 8 10% 5 7 7 5 5 1 2 5,000 0% 0 2018 2019F 2020F 2021F 2015 2016 2017 2018 2019F 2020F 2021F 2022F Source: IHS (2018) Source: IHS (2017) 11/17

Financials • 1Q20 Business Results • Consolidated Financial Statements

1Q 2020 Business Results Quarterly Revenue Revenue Breakdown by Div. Annual Revenue 180 20% Sales OPM [ Unit : KRW bn/ % ] [ March 2020 ] [ Unit : KRW bn ] 163 18% 160 962 144 Others 16% Semiconductor 140 9% 1% 14% 121 120 714 12% 100 87 10% 555 80 7% 8% 7% 66 462 60 7% 5% 6% 4% 293 40 90% 4% 20 2% Display 0 0% 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20 13/17

Consolidated Financial Statements Balance Sheet Summary Income Statement Summary 1Q20 2019 2018 2017 2016 1Q20 2019 2018 2017 2016 [ Unit : KRW bn ] [ Unit : KRW bn ] Current Assets 288 252 284 324 355 Revenue 121 462 714 962 555 Non-current Assets 166 168 136 143 211 Gross Profits 21 72 101 62 76 Total Assets 455 421 420 468 566 Current Liabilities 316 286 291 342 295 General Expenses 12 44 52 36 44 Non-current Liabilities 17 21 23 36 64 Operating Profits 8 28 45 26 32 Total Liabilities 333 307 314 378 359 Current Ratio (%) 91% 88% 97% 95% 120% Profits before Tax 11 12 27 26 35 Debt Ratio (%) 274% 269% 296% 420% 173% Net Profits 8 9 25 19 27 Total Capital 122 114 106 90 207 14/17

Products • Product Line-up for Display(OLED) • Product Line-up for Semiconductor

Product Line-up for Display(OLED) Back-end Front-end Evaporation Encapsulation Module Inspection TFT Backplane Crystalli- PI Coating Organic Cleaning Deposition Photolitho Etching Baking Inspection Cleaning Encap. Module Inspection & Curing zation Evap. Module Laser Cutting Module Bending Excimer Laser Annealing Encapsulation Laser Lift-Off Film Laser Cutting Module Laminating Module Dispensing 16/17

Product Line-up for Semiconductor Back-end Front-end Cleaning Photolitho Etching Inspection Dicing Final Test Deposition Ashing 3D Packaging Assembly Rapid Thermal Process Dry Strip Descum Sputter Temporary Bonding & De-Bonding 17/17