ALLTEK — Interim / Quarterly Report 2017

Dec 25, 2017

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ALLTEK (3209) Chairman Louis Wu 2017/12/25

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Safe Harbor Statement

• These information which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on Alltek’s current expectations. Actual results may differ materially from those expressed or implied .

• in these forward-looking statements

• Except as required by law, our release of financial forecasts and forward-looking statements at any particular time does not create any duty of disclosure, and we expressly disclaim any obligation to publicly update or revise any forecasts or forward-looking statements, whether as a result of new information, future events or otherwise.

• In addition, any financial information contained here within

• is presented in conformity with International Financial Reporting Standards (IFRSs).

1

Alltek Technology Corp. was founded in April 1991 as a professional communication components distributor and solution provider and progressively enters fields of biology, automobile components, and maritime communication components. Group revenue from January 2017 till November 2017 is NTD 29.6 billion (approximate USD 1 billion.)

2

Affiliates Map

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ALLTEK
Alltek (SIG)
Pantek AMEC Alltek Group GLB
Shares:40%
Shares:100% Shares:54% Shares:100% Shares:23%
www.alltek.sg
www.pantek.com.tw www.alltekmarine.com www.alltek.com.tw www.glbiotech.com.tw
All Plus.(BVI) Alltek (H.K.) All Plus (Brunei)
Shares：100% Shares：100% Shares：100%
Alltek(SZ) All Plus(SH)
Shares：100% Shares：100%
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3

Alltek Snapshot

• Founded: 1991

� Employees: TWN (232) CHN (200) � Paid-in Cap: 16.1 (NTD 100M) � Headquarter: Taipei, Taiwan

• Date of IPO: Mar. 29, 2004

• Office Locations: 16

4

Dividends Trend

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3.0
2.8 2.8
2.5
2.0
2.1 2.15
1.9 1.9
1.8 1.6
1.6
1.5
1.52 1.5 1.6
1.0 1.4
1.0 1.0 0.65
0.8 0.8 0.5 0.5 0.9
1.5 1.5 0.5
1.0 1.1 1.4 1.4 1.1 1.3 1.2 1.1
0.8 0.3
0.8 0.72 0.6
1995 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017
Cash NTD Stock NTD Total NTD
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Dividends	Dividends	1995	1996	1997	1998	1999	2000	2010	2011	2012	2013	2014	2015	2016	2017	Total
Cash	NTD	0.8	1	1.1	0.72	0.8	1.4	1.4	1.5	1.1	0.6	1.5	1.3	1.2	1.1	15.5
Stock	NTD	1	1	1.4	0.8	0.8	0.5	0.5	1.5	1	0.3	0.65	1.5	1.6	0.5	13.1
Total	NTD	1.8	2	2.5	1.52	1.6	1.9	1.9	3	2.1	0.9	2.15	2.8	2.8	1.6	28.6

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Top 14 High Dividend Stocks (Commercial Times 2017.2.19)

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6

Revenue/Profit

Unit : NTD 100 M

evenue/P	rofit		Unit : NTD 100 M	Unit : NTD 100 M	Unit : NTD 100 M	Unit : NTD 100 M
Income Statement	2015	2016	2017
			Q1	Q2	Q3	Total
Revenue	243.59	280.70	81.00	70.86	87.29	239.15
COGS	13.18	12.77	2.75	2.70	3.50	8.95
Op. Expenses	9.38	8.96	2.36	2.34	2.46	7.16
Op. Income	3.80	3.81	0.39	0.36	1.04	1.79
Others	0.77	(0.65)	0.54	(0.21)	(0.02)	0.31
Net Profit	3.93	2.56	0.75	0.09	0.83	1.67
EPS	2.88	1.80	0.52	0.06	0.57	1.15
ROE	19.85%	11.91%	13.31%	7.69%	10.00%	10.00%
COGS %	**5.41% **	4.55%	3.40%	3.81%	**4.01% **	3.74%
Op. Exp. %	**3.85% **	3.19%	2.91%	3.30%	**2.82% **	2.99%
Op. Income %	**1.56% **	1.36%	0.48%	0.51%	**1.19% **	0.75%
Others %	**0.32% **	-0.23%	**0.67% **	**-0.30% **	**-0.02% **	0.13%
Net Profit %	**1.61% **	0.91%	0.93%	0.13%	**0.95% **	0.70%

Revenue/Profit-1

Unit : NTD 100 M

Revenue

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300.00
280.70
243.59
250.00 239.15
200.00
150.00
100.00 81.00 87.29
70.86
50.00
0.00
2015 2016 2017
Q1 Q2 Q3 Total
Revenue 243.59 280.70 81.00 70.86 87.29 239.15
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Revenue/Profit-2

Unit : NTD 100 M

COGS, Operating Income and Net Profit

-2 0 2 4 6 8 10 12 14 13.18 12.77 2.75 2.70 3.50 8.95 9.38 8.96 2.36 2.34 2.46 7.16 3.80 3.81 0.39 0.36 1.04 1.79 2015 2016 2017 Q1 Q2 Q3 Total COGS 13.18 12.77 2.75 2.70 3.50 8.95 Operating Expenses 9.38 8.96 2.36 2.34 2.46 7.16 Operating Income 3.80 3.81 0.39 0.36 1.04 1.79 Other Incomes(Exp.) 0.77 -0.65 0.54 -0.21 -0.02 0.31 Net Profit 3.93 2.56 0.75 0.09 0.83 1.67 0.77 3.93 -0.65 2.56 0.54 0.75 -0.21 0.09 -0.02 0.83 0.31 1.67

9

Revenue/Profit-3

EPS(NTD) and ROE

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3 2.88
2.5
2
1.8
1.5
1.15
1
0.57
0.52
0.5
19.85%
11.91% 13.31% 0.06 7.69% 10.00% 10.00%
0
2015 2016 2017
Q1 Q2 Q3 Total
EPS 2.88 1.8 0.52 0.06 0.57 1.15
ROE 19.85% 11.91% 13.31% 7.69% 10.00% 10.00%
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Revenue/Profit-4

Unit : %

% of COGS, Op. Income and Net Profit

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6.00%
5.41%
5.00% 4.55%
3.85% 3.81% 4.01%
3.74%
4.00%
3.40%
3.30%
3.19%
2.91% 2.82% 2.99%
3.00%
2.00% 1.56% 1.61%
1.36% 1.19%
0.67% 0.75%
0.91% 0.93% 0.95%
0.70%
1.00% 0.48% 0.51%
0.32% 0.13%
0.13%
0.00%
-0.23% -0.30% -0.02%
-1.00%
Q1 Q2 Q3 Total
2015 2016 2017
COGS % 5.41% 4.55% 3.40% 3.81% 4.01% 3.74%
Operating Expenses % 3.85% 3.19% 2.91% 3.30% 2.82% 2.99%
Operating Income % 1.56% 1.36% 0.48% 0.51% 1.19% 0.75%
Other Income (Exp.) % 0.32% -0.23% 0.67% -0.30% -0.02% 0.13%
Net Profit % 1.61% 0.91% 0.93% 0.13% 0.95% 0.70%
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11

Financial Structure

Items	Items	2015	2016	2017/3Q
Debit Ratio	%	71	80	81
Net per share	$	17.4	16.1	15.2
PB	times	1.5	1.5	1.4
Collection	days	53	53	49
Inventory	days	30	46	64
Payment	days	(17)	(23)	(28)
Opt. Cycle	days	66	76	85

12

Subsidiaries and Joint Ventures

Unit : NTD 10K

Subsidiaries and Joint Venture	Main Business	Shares	Subsidiaries and Joint Venture Profit (Loss)	Subsidiaries and Joint Venture Profit (Loss)	Subsidiaries and Joint Venture Profit (Loss)
			2015	2016	2017/3Q
Alltek Group	Invest in Overseas and Greater CHN	100%	2,490	2,619	4,330
Pantek	Electronics Distributor	100%	**(163) **	(2,041)	(2,772)
AMEC	Marine Electronics	54%	2,035	2,136	(219)
GLB	Meters and Strips(GLU,TC,UA,HB.)	Alltek 23%、 Compal 50%、 WK 10%、CDIB 8%	**(4,645) **	(1,145)	(243)

13

Networking Topology

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ISP/CO/Data Center
Enterprise/
PSTN/Internet Storage, AP, SW
Base
xDSL, Cable, xPON, MPLS
Transmission Technology
Residential/
CPE, Home Auto.
GPS
Mobility Solution
3G/4G
Handheld
Base Station
Antenna
devices, Kiosk
etc
Automotive Solution
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Specialty Distributor…more than buys & sells

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xDSL, xPON, Router,
Optical… etc.
Telecom
VoIP, Router, HomeAuto
Circuit Protection,
Power Datacom L2/L3 Switches …etc.
Rectifiers, AC-DC, DC-DC,
Sensor… etc.
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System BLE, IEEE 802.11, NFC,
H/W, S/W and Firmware
Design & Wireless IoT, 3G, LTE..etc
in Communication and
Implementation
Network Integration
Multimedia
NB, STB, DVR,
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NB, STB, DVR,
Smart Phone, Tablet, Kiosk…
etc.
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15

Recognition

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2016
2015
2013 2014 57
2012 63 58
Common Wealth 2010 2011 73 place
84
Magazine 2008 2009 84
2007 93
500 Service [127]
Companies
182 [145]
(Annual Revenue )
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16

In the future, Alltek Group will follow trends and broaden the scope of Investment and Business in below fields:

• BIG DATA (Data Center)

• AI

• IOT

• 5G

• Autonomous Vehicles

• Bio Tec.

17

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Q&A

• Getting More Info

about ALLTEK

www.alltek.com

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18