ACCTON — Interim / Quarterly Report 2016

May 11, 2016

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智邦科技 2016年第1季法人說明會 #2345

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ACCTON GROUP 報告流程

Edward Lin, Spokesman JS Yu, President Rebecca Lin, CFO JS Yu, President Rebecca Lin, CFO Edward Lin, Spokesman

公司簡介 (1)

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1 Networking ODM Best-in-class brand business - innovative network expertise

Years OEM and ODM Business (from 1988) for Tier-1 network, system, and telecom companies

Edgecore, SMC, and IgniteNet SMB, enterprise, and service provider solutions

Data center network fabric

公司簡介 (2)

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Worldwide staff 3,300

Hsinchu, Taiwan | 650 network engineers

Development & architecture centers in Taiwan, China, & USA ; Over 500 world-wild registered patents Shenzhen, China since 2005: 18 SMT lines TAA-compliant production in Taiwan: 2 high-speed SMT lines

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智邦集團

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Cloud Networking
Carrier & Enterprise Networking
Worldwide, Since 2013 SMB & SOHO Networking
Worldwide, Since 2004
Worldwide, Since 1997
E- platform for charitable
works Taiwan, Since 2001
Manufacturing
China, Since 2005
Art Foundation
Taiwan, Since 2000
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我們的成就

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Network World’s 20 Best Products of 2015 Data Center Switch (AS5712-54X)

Distinguished Partner Award from Fujitsu Telecom Ltd.,

Innovation Luminary Award from Channel News Asia

CMO Asia Best CSR Practices Award

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主要產品線

Data Center Switch

Enterprise Wired

Carrier Access

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Enterprise Wireless Cloud Computing Appliance

Smart Home

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資料中心交換器

Agile, Scalable, Reliable

Bare-metal and white-box switches

High-density 10/25/40/50/100GE ports First OCP-approved TOR design Open hardware with leading Switch OS choices

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資料中心交換器的發展趨勢

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資料中心交換器 Bare Metal 成長

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198%
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資料中心交換器的自由化

 Benefits

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Disaggregation provides freedom of choice and removes vendor lock-in Greater control over infrastructure through open software platforms Rapid innovation through a community and develops approach Reduced CAPEX and OPEX

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OCP 的解決方案

 Accton & Edgecore Contributions to OCP

• 10G 48x10G, 6x40G TOR Switch First OCP-approved switch

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• 40G 32x40G TOR, Spine Switch Cost Optimized 40G Design

• 40G 16x40G Wedge TOR Switch Customer Design, Edgecore Mfg

• 100G 32x100G TOR, Spine Switch First Open 100G Design

• 100G 32x100G TOR, Spine Switch First Open Design

• Open Rack Switch Adapter Install 19” switches in 21” Open Rack

• Charter member UNH-IOL Open Networking Test Services Consortium

• ONIE & ONL on all Edgecore open switches

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對 Open Networking 的貢獻

• Network Technology: Accton (Edgecore parent)-- leading network ODM for 25 yrs

• Delivering at Scale: White-box DC fabric to Facebook and Hyperscale Operators

• Open Hardware Leader: 10G, 40G, 100G design contributions to OCP

• Open Software: OCP and ONF Atrium contributor, OpenSwitch charter member

• Software Ecosystem: Largest choice of NOS and SDN software

• Delivery and Support: Partners, Integrators, Resellers, OCP Solution Providers

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企業有線解決方案

Achieve Higher

Complete managed L2/3/4 switch solutions

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Web-smart, PoE/PoE+, and stacking options Green energy-efficient designs

2.5G/5G wired and wireless convergence

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全球交換器市場趨勢

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Dell’Oro Jan 2015

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交換器 (產品組合)

 Data Center, Enterprise, SMB segments

• 10G/40G and 25G/100G High-density Top-of-rack or Spine

• Complete Managed L2/3/4 switch with PoE+/PoE++ options

• Cost effective SMB Web-smart, PoE/PoE+, and stacking options

Telecom 500+ users

• 2.5G/5G wired and wireless convergence

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Enterprise
250- 1000 users
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Medium Business
(50-100 users)
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Small Business
(10-50 users)
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SOHO
(1-10 users)
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Consumer

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電信接取設備解決方案

Connect and Protect

Edge Smart Router

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Carrier Switch/Router Mobile Backhaul Device GPON.ONT NG-PON1 MDU

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電信接取設備產品的優勢

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Edge Smart Router
• VDSL Switch • Carrier Access
• GPON ONT, Switch
HGW, SFP • Carrier Access
ONT Router/Gateway
• Ethernet
• NG-PON1 SOHO
Demarcation Device
MDU SMB
Residential
Broadband Large Carrier Switch / Router
Access Enterprise
Ethernet
Backhaul
Aggregation
3G/4G/5G
Core Edge Mobile
Controller Backhaul
Access
• Aggregation Smart Router Mobile Backhaul Device
Switch
• Edge • Mobile Backhaul
Controller
Device
• IP Edge
Smart Router
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GPON ONT/ NG-PON1 MDU

• High-end family of 100G service routers for a unified Services Edge, unified IP Edge.

• 1RU NEBS Compliance

• 10G/40G/100G Carrier Switch/ Router

• Outdoor Harden design capability

• 3G / 4G backhaul access

• Support time synchronization

• GPON BOSA on board design

• NG-PON1 MDU SFP NNI port, support multiple xPON access modes.

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電信級設備朝向開放式平台

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• Facebook announced the Telecom

Infrastructure Project (TIP) to extend the scope of Open Compute Project to wireless telcos and infrastructure providers in 2016 February.

• OCP Members include AT&T, Deutshe Telekom (DT), EE (UK mobile network operator and Internet service provider), Verizon, Equinix and Nexius.

• Extend OCP TIP members include Facebook, Intel, Nokia, DT and SK Telecom, etc.

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企業無線解決方案

Secure Simplicity

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Carrier-grade indoor/outdoor designs

Adaptive MIMO smart antenna and location-tracking solution Wireless controller and cloud management Leading-edge 802.11ac Wave-2 APs with NBASE-T Ethernet

60 GHz wireless backhaul solutions

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WiFi 技術的改革趨勢

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企業無線產品優勢

• Adaptive MIMO (A-MIMO) Smart Antenna Access Points

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• Improve coverage edge throughput & coverage variety for high density throughput

• Reduce blind, dead spots

• Provide better interference rejection & air-link quality

• Multi-Band, Multi-Radio Access Points

• 3[rd] Radio Applications in High Dense Places

802.11ad

  - Spectrum Intelligence  / Band Steering for Good Airtime Fairness /Wireless Mesh Backhaul

• 60GHz Indoor Mesh Backhaul

• Transform merchant 802.11ad silicon solution to enterprise AP backhaul application.

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• Serve as a hassle-less dedicated gigabit high bandwidth backhaul.

• Equip beamforming antenna array with no antenna alignment efforts.

• Estimated LOS coverage target: 100 meters with 1Gbps throughput at indoor places.

 US patent filed

A-MIMO 智慧天線 AP 的優勢

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Advantages Advanced Nx10 parallel N-band active antenna elements with respective front end

Formed patterns provide additional peaking and nulling

Up to 2x512 concurrent dual-band antenna pattern combinations

Switching time is less than 300ns per band for antenna pattern steering

Patent-pending control algorithm for adaptation and artificial intelligence

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Benefits Improves coverage-edge throughput

Improves coverage variety for high-density multi-user throughput

Reduces blind/dead spots

Provides better interference rejection

Provides a stable and consistent air-link quality – connection reliability

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雲炬網路: Wi-Fi 自有解決方案 IgniteNet

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IgniteNet Cloud
OCP Wi-Fi OS
Controller Management
Cloud Management OCP Compliant Wi-Fi
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首家貢獻OCP之 Wi-Fi Access Points

EAP1028B-12 OAP1122B Product Type Indoor Outdoor Confi uration 11ac 3x3 11ac 3x3 g

• The First OCP Wi-Fi Access Point contributed to kick-start the market both indoor and outdoor

• Continue to initiate and contribute to this open networking market segment

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提供全方位的雲端服務 IgniteNet :

• IgniteNet devices and services are a gateway that enables endless OTT services that will keep the customers engaged and active.

• Advertisement

• Religious Router, Music Broadcast

• Smart Office/Home IOT integration

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MarketPlace
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Content Filtering Presence API

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戶外實測 IgniteNet : 1 KM (1) (2) (3)

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Test (1)
Realtek
Test (2)
Accton HQ
Accton
Building #2
Accton Building #2
The distance is around 1
HQ
km.
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Test (3)
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實際應用 IgniteNet : 60GHz + 5GHz PtP Radio

• Fixed Broadband Wireless Access

• Metro Wi-Fi

• Hybrid Fiber/Wireless Networks

• Campus Interconnection

• Wireless Last Mile, Ethernet extension

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在開放式網路領域持續成長 !!

• Leading network contributor to current open communities including OCP and ONF and OpenSwitch;

• Leading network hardware partner to current commercial software partners for NOS, SDN, NFV and Orchestration;

OCP Wi-Fi Initiator

• First OCP Wi-Fi Contributors to lead the new market

Wi-Fi Cloud Platform

First OCP Data Center Switch

• In-house advanced Wireless Smart Antenna Technology

• Self-developing Open Wireless Platform

• Advanced 60GHz Wireless Backhaul Technology

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合併綜合損益表 (2016Q1 vs. 2015Q4)

合併綜合損益表 (2016Q1 vs. 2015Q4)	合併綜合損益表 (2016Q1 vs. 2015Q4)	合併綜合損益表 (2016Q1 vs. 2015Q4)	合併綜合損益表 (2016Q1 vs. 2015Q4)
(In NT$M)
	2016Q1	2015Q4	Diff %
Net Revenue	5,928 23.2%	7,119 20.9%	-16.7% 11.0%
Gross Margin
Operating Expenses	(834) 9.1%	(892) 8.3%	6.5% 9.2%
Operating Margin
Non-operating income and expenses	(57) 398 6.7%	(22) 451 6.3%	-159.1% -11.8% 6.0%
Net Income to Shareholder of the Parent Company
Net Profit Margin
EPS (NT Dollar)	0.74	0.85	-12.9%

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合併資產負債表

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( In NT$M)

(2016/03/31 vs. 2015/12/31)

	2016/03/31	2015/12/31	Diff %
	Amount %	Amount %
Cash and cash equivalents	4,455 30% 3,094 21% 4,244 29% 1,648 11% 1,022 7% 406 3% 14,869 100%	5,383 36% 3,532 24% 3,632 24% 961 6% 1,068 7% 412 3% 14,988 100%	-17% -12% 17% 71% -4% -1% -1%
Notes and accounts receivable, Net
Inventories
Other current assets
Property, plant and equipment
Other non-current assets - other
Total ASSETS
Current liabilities	6,359 43% 25 0% 6,384 43%	6,782 45% 27 0% 6,809 45%	-6% -7% -6%
Non-current liabilities
Total liabilities
Capital surplus	5,378 36% 8,485 57%	5,370 36% 8,179 55%	0% 4%
Total Shareholders’ equity
Liabilities and Shareholders’ Equity	14,869 100%	14,988 100%	-1%
Debt Ratio(%)	42.9	45.4
Current Ratio(%)	211.4	199.2
Cash Conversion Cycle(day)	29.3	24.6

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合併綜合損益表

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(2016Q1 vs. 2015Q1)

合併綜合損益表 (2016Q1 vs. 2015Q1)	合併綜合損益表 (2016Q1 vs. 2015Q1)	合併綜合損益表 (2016Q1 vs. 2015Q1)	合併綜合損益表 (2016Q1 vs. 2015Q1)
(In NT$M)
	2016Q1	2015Q1	Diff %
Net Revenue	5,928 23.2%	4,947 17.0%	19.8% 36.5%
Gross Margin
Operating Expenses	(834) 9.1%	(695) 2.9%	-20.0% 210.8%
Operating Margin
Non-operating income and expenses	(57) 398 6.7%	(26) 110 2.2%	-119.2% 261.8% 201.9%
Net Income to Shareholder of the Parent Company
Net Profit Margin
EPS (NT Dollar)	0.74	0.21	252.4%

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合併資產負債表

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(2016/03/31 vs. 2015/03/31)

( In NT$M)

	2016/03/31	2015/03/31	Diff %
	Amount %	Amount %
Cash and cash equivalents	4,455 30% 3,094 21% 4,244 29% 1,648 11% 1,022 7% 406 3% 14,869 100%	4,490 34% 2,985 23% 3,167 24% 683 5% 1,185 9% 650 5% 13,160 100%	-1% 4% 34% 141% -14% -38% 13%
Notes and accounts receivable, Net
Inventories
Other current assets
Property, plant and equipment
Other non-current assets - other
Total ASSETS
Current liabilities	6,359 43% 25 0% 6,384 43%	5,512 42% 21 0% 5,533 42%	15% 19% 15%
Non-current liabilities
Total liabilities
Capital surplus	5,378 36% 8,485 57%	5,343 41% 7,627 58%	1% 11%
Total Shareholders’ equity
Liabilities and Shareholders’ Equity	14,869 100%	13,160 100%	13%
Debt Ratio(%)	42.9	42.0
Current Ratio(%)	211.4	205.5
Cash Conversion Cycle(day)	29.3	32.1

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Thanks for your coming & advice.