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Flexible Electronics Outlook & Lessons LearnedApril 2019Peter Yu

AgendaFlexibleElectronicsMarket Trends1Early LessonsLearnedOutlook byTechnologyConclusion

Average World GDP per Capita( USD)IndustrialAgeModernAgeInformation IntelligenceAge Age2x every4010,0002x everyyears152x everyyears1001,0002x everyyears25years100175018502 Source: World Bank, Maddison Project, De Long- UC Berkeley (“Intelligence Age” TM by Flex)19702010

Opportunity is Literally All Around Us simply connect the dotsBy 2020, the Intelligence ofThings will bring 50 billionconnected devices to market,creating US 7.1T in totaladdressable market value.IDC3TM: Flex

Printed & Flexible Electronics was a 30B Market in 2018 Flexible Printed Circuits marketsize estimated to be US 10.3B Rigid-Flex PCB estimated to beworth 3B Printed Electronics estimatedto be worth 7B Other “Flexible Electronics”market estimated to be 9.5B20184FPCRigid-FlexPEOther FESources:FPC & Rigid-Flex: Prismark Research & NTIPrinted Electronics: MarketsandMarketsOther FE: Zion Research 77/?skin pcb&p 1)

Flexible Printed Circuits: Largest but Slowest Growth at 3.5%FPC Market by Technology ( Million) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0201720182019202020212022 92 94 97 100 102 104Rigid Flex 2,542 2,634 2,728 2,827 2,928 3,054Multilayer Flex 1,961 2,057 2,158 2,264 2,375 2,541Double Sided-Flex 5,755 5,939 6,129 6,325 6,528 6,737Single-Sided Flex 2,173 2,225 2,279 2,333 2,389 2,477Other (PET/PEN)Total FPC5 Source: Prismark Research & NTI9,986 10,315 10,662 11,022 11,894 11,859

FPC Growth Driven by Certain Applications 8.3 B2017 Growth 10 B100%50%0%6201620172017-’22 CAGRMobile .6%Other Computer11%1.6%Server/Data %Medical5%3.4%Wired Infrastucture-1%3.7%Wireless Infrastructure0%4.5%Source: Prismark Research

Wearables to Grow in High Teens by Unit Volume but price erosion / commoditization will stunt FPC valuegrowthWorldwide Wearable Devices by Product Category, Shipment Volume, M arket Share, and 5-YearCAGR(shipments are in millions)Product2017Volumes2017 MarketShare2021Volumes2021 MarketShare2017 - 0%23.00%Wrist 00%17.20%T OT ALSource: IDC Worldwide Quarterly Wearable Device Tracker, September 14, 20177

Rigid-Flex Follows Closely FPC’s GrowthRigid Flex Market Size by Application ( Million) 3,500 3,000 2,500 2,000 1,500 1,000 500 Industrial/ MedicalAutoMilitaryConsumer DevicesDisplayCommunicationTotal82017 127 186 203 344 455 1,227 2,542Source: Prismark Research & NTI2018 130 196 204 365 461 1,277 2,6342019 133 207 204 387 468 1,330 2,7282020 136 218 202 411 475 1,384 2,8272021 139 230 200 436 482 1,441 2,9282022 142 243 217 463 490 1,500 3,054

But Leading Players Differ Between Rigid-Flex vs. FPC MakersTop Rigid-Flex ProducersTop 10 Flexible Printed Circuit Producers by Revenue ( M)Nippon Mektron 3,466Zhen Ding 1,628SEI 1,284Fujikura 890MFLEX 506FLEXIUM 452Nitto Denko 413Career 394Compeq 392SI Flex 385 -9 500 1,000 1,500 2,000 2,500Source: Prismark Research, NTI, Digital Journal, thetacticalbusiness.com 3,000 3,500 4,000 TTM TechnologiesAT & SMultekSchoeller-ElectronicsRoyal CircuitsFlexible CircuitAll Flex Inc.San Francisco CircuitsNCAB GroupTech-EtchMolexCirexxPioneer CircuitsMicro Systems TechnologiesCONTAG AGSamsung Electro-MechanicsRigid-Flex InternationalEPECPCB SolutionsFlexible Circuit Technologies (FCT)

Total Combined FPC & Rigid-Flex Growth by Region2017CAGR 2016-20212022 6.1Rest of Asia 7.3 5.1China 6.1 1.0Japan 0.2 0.2Americas 0.3 0.3 8 6 4 23.9% 1.1Europe 03.6%2.1%1.6%1.5% 2 4 6 8 China has become the largest manufacturer of FPC - China, accounting for 40% of the total FPC market in 2017,will be continue to be the market leader through 2022 growing at a CAGR of 3.6% between 2017 and 2022 Americas will report lower FPC growth between 2017 and 2022 at CAGR 1.5%10Source: Prismark Research & NTI

Printed Electronics is Growing Fast, Surpassing FPCs by 2022 6.8 B2018 - 2023CAGR 13.6 B100%50%8.8%PV Cells10.4%LightingPanels/Solutions29.2%RFID ays2018202325.3%Source: Prismark Research & NTICombinedCAGR of15%

Aerospace & Defense Will Lead Printed Electronics Growth12

APAC: Largest & Fastest-Growing Printed Electronics Region13Source: MarketsandMarkets

Flexible Electronics is the Fastest-Growing of all Segments Global demand for the flexibleelectronics market was valuedat 9.5B in 2018 and isexpected to generate revenueof 16.5B by 2021, growing ata CAGR of slightly above21% between 2016 and 2021 Key elements of the market,in the view of most analysts,include flex displays, sensors,batteries, and memory IDTechEx Research finds thatthe total market for printed,flexible and organicelectronics will grow from 31.7 Billion in 2018 (of whichthe 9.5B opportunity forPrinted Electronics is asubset) to 77.3B in 20299.514Source: Zion Research, iConnect 007, IDTechEx Research

Flexible Hybrid Electronics (FHE)FHE is an emerging form of Flexible Electronics enabled by the advances made in the FPC,Rigid-Flex, Printed Electronics, Semiconductors and Roll-to-Roll Assembly technologies15

Printed and Flexible Electronics Market Dynamics16Source: MarketsandMarkets

Lessons Learned: Fitness Bands – Tech & Cost Challenges17

Lessons Learned: Running Shoes – Software Drives Success18Source: Mensjournal.com, Multek, running.pocketoutdoormedia.com

Lessons Learned: Smart Glasses – Market May Not Materialize19Source: Google, Snap, Magic Leap

Lessons Learned: Smart Clothing – Simpler is Better20Source: Flex, Youtube

Typical Technology Outlook for Flexible Circuits (Panel)21

Typical Technology Outlook for Flexible Circuits (Roll-to-Roll)22

Typical Technology Outlook for Rigid-Flex Printed Circuits23

Technology Outlook for Roll-to-Roll (Flexible) AssemblyMature24AdvancedIn Development

Profit PoolsConclusion: Focus on the Right MarketsLowHighEnd-Use Systems Markets ( B) in 2022FPC Value of End-UseSystems MarketsFocus on Faster Growth Larger or Niche Segments 2017-2022 Market CAGR25Source: Prismark & MultekOther ConsumerA/V Personal ElectronicsAutomotiveServer/Data StorageWireless InfrastructureMobile PhonesPCsWired InfrastructureAerospace & DefenseMedical

And Leverage Partners who Understand Technology Across Verticals26

Thank You!

Flexible Electronics is the Fastest-Growing of all Segments Global demand for the flexible electronics market was valued at 9.5B in 2018 and is expected to generate revenue of 16.5B by 2021, growing at a CAGR of slightly above 21% between 2016 and 2021 Key elements of the market, in the view of most analysts,