ACES — Investor Presentation 2019

Nov 22, 2019

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宏致電子股份有限公司 股票代號3605 ACES Electronics Co., Ltd. Investor Conference

Nov 22, 2019

‧ ‧ 知識視野 價值態度 �諾執行力 Knowledge·Vision·Value·Attitude·Commitment·Execution

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• ACES Group Established in Nov. 1996.

• Over 5,000 employees worldwide

Profile

• Headquarters: Taiwan Taoyuan

• 、 、 、 、 、

• Factories: Taiwan China (Dongguan Kunshan Suzhou) Philippines Vietnam

• 、 、 、 、

• Overseas Sales Offices: Japan Singapore Philippines Germany USA

• We are focusing on designing/producing/selling high technique connectors, cables assemblies, dongles, and solution of electronic devices.

• • End Product including: Industry 4.0, IPC, Medical, Cloud Computing, Server, Automotive, Transportation, Laptop Computing, Consumer Electronics

ACES 集團

ACES GROUP

龍翰

Cable Group

廣迎�

宏致 CPC 志展

Sales Channel Stamping Metal & RF Group Connectors

Connector Group

MEC Taiwan ACES Taiwan ACES Kunshan CPC Taiwan KY Taiwan 台北龍翰 台灣宏致(總部) 昆山宏致 台北志展 廣迎�桃園 MEC HT Suzhou ACES PEC Taiwan ACES Dongguan CPC Vietnam KY Dongguan 蘇州瀚騰 台灣精工中心 東莞宏致 越南 東莞廣迎 GALIS Kunshan MECHPT Dongguan ACES Japan CPC Germany KY Suzhou 東莞奇翰 宏致日本辦公室 Plating 德國辦公室 蘇州廣迎 昆山加利� 金屬工藝中心 MEC Philippnes ACES USA 龍翰菲律賓 宏致美國辦公室 MEC USA ACES Singapore 龍翰美國辦公室 宏致�加坡辦公室

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Plant Overview-宏致ACES

Proportion : Taiwan 11% / China 89%

MEC ACES CPC 55% KY

總部 精工中心 東莞宏致 昆山宏致 Precision Headquarters Dongguan Plant Kunshan Plant Galis Engineering Center Marketing R&D Sales Sales R&D Plating Sales Tooling R&D Tooling Molding Tooling Molding Stamping Molding Stamping Connector Stamping Connector and Cable Assembly Assembly Assembly Automotive parts

Precision Headquarters Engineering Center

MEC23%

Plant Overview-龍翰MEC

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ACES
CPC
KY
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Proportion : PHIL 46% / SZ 45% / DG 9%

龍翰科�

MEC IMEX Inc.

Marketing Sales Product Design High Speed Cable

AC/DC Power Cord, Appliance Cable, Industrial Cable

東莞奇翰

蘇州瀚騰 SUZHOU Hanteng Electronics Tech. Co., Ltd.

MEC Homepride Tech. Inc.

LVDS Cable Dongle Cable, Automotive Data Cable Cable , Wire Appliance Cable Harness,

Plant Overview- 志展CPC

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MEC
ACES
CPC 12%
CPY
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志展實業 德國宏高 CPC Headquarters CPC Germany

Sales R&D Sales RF Connector Logistic RF Cable Supply Chain

RF Connector RF Cable Zinc Die Casting Aluminum Die Casting Barrel Plating Hanging Plating Lathe / CNC

Plant Overview-廣迎�KY

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MEC龍翰
ACES宏致
志展CPC
KY 10%
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廣迎�工業 東莞廣迎 KY Taiwan KY Dongguan

Stamping Metal Stamping Metal Stamping Metal CNC RFI Connector

Plant Overview-廣迎�KY

• ：

• Established 1991

• HQ : New Taipei City, Taiwan

• ：

• Capital USD 9 Million

• ：

• Products/Services

• Stamping Metal

• Connector & Accessory

• Electroplating Service

• Tooling Parts

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Cloud
Consumer
Electronics
40%
60%
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• Yearly Revenue about USD 30 Million

USB RFI

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TP-LINK Archer C3150

ASUS-RTN18U

ASUS-RTAC5300

TP-LINK Talon AD7200

USB RFI EMI interference problem caused seriously on these band segments RFI (Radio Frequency Interference)

Strategic Planning for main market category

Industry Cloud Automobile Laptop Computer Consumer UPS, Industrial & Computing Transportation Electronics IPC, Medical Communication Equipment Server

ICAN

Industrial & Industry 4.0 / IPC / Medical

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Consumer
Electronic
Cloud
Automobil
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Industry 21%

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N-NB
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� Cable and Connector for Industrial Equipment � Cable and Connector for IPC � Cable and Connector for Medical Equipment

ICAN

Cloud Computing & Communication and Server

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Industry
Consumer
Electronics Cloud,8%
Automobile
N-NB
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• High Speed Connector and Cable

• High Power Connector

� RF connector (Radio Frequency Connector ) and Cable

High Speed Cable PCIe 4.0 Assembly

• Other Connector and Cable

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ICAN
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Industry
Automobile / Consumer
Electronics
Cloud
Transportation
Automobile
N-NB ,6%
� Connector & Cable for Reverse Parking Sensor
High Power Connector
Connector & Cable Assembly
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� Connector & Cable for Advanced Driver Assistance Systems

• Electronic Control Module

• Connector & Cable for Electric Vehicle

Body Control Module Connector

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ICAN
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Laptop Computer / Consumer Electronics

� High technique Connectors & Harness for Note Book and Peripheral products

• High technique Connectors & Harness for Smart Phone

• Connector & Cable for Smart Home

• Dongles

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Consumer Industry
Electronics,
Cloud
34%
Automobile
Note Book,31%
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Slimmate IDC Female
connector0
FPC
Connector
Wafer
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• USB/HDMI/IO Cable

Strategic Planning for main market category

Industry Cloud Automobile

NoteBook& Consumer

2018 25% 5% 8% 62% 2019 21% 8% 6% 65% 2020

Financial Results

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Last 5 Years Revenue
KY CPC MEC ACES YOY
Merger KY
in Jul 2019
單位新台幣億元
Merger CPC
8,000,000 35%
in Jul 2017
67.1 億
7,000,000
31% 30%
Merger MEC
in Oct 2015
6,000,000 56.7 億
25%
51.8 億
5,000,000
20%
39.7 億 19%
4,000,000
15%
3,000,000
10%
2,000,000 9%
9%
5%
1,000,000
0 0%
2015 2016 2017 2018 2019
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NTD Million ACES MEC CPC KY Group Revenue $1,187 $468 $240 $203 $2,058 Margin % 33% 9% 15% 18% 25% SG&A % 22% 12% 15% 19% 19% Operating 11% -3% ~0% -1% 6% Income %

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NTD Million ACES MEC CPC KY Group Revenue $3,129 $1,336 $690 $591 $5,240 Margin % 29% 8% 15% 18% 22% SG&A % 22% 13% 16% 19% 19% Operating 7% -5% -1% -1% 3% Income %

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