APEX — Investor Presentation 2017

Oct 13, 2017

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夆典科技開發股份有限公司 APEX SCIENCE & ENGINEERING CORP.

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Investor Conference OCT 18, 2017

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Disclaimer
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This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements.

The forward-looking statements in this presentation include, but are not limited to, growth rates for various markets estimated by third party sources, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are no guarantee of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forwardlooking statements to reflect subsequent events or circumstances, except as required by law.

This presentation and the information contained herein are the property of Apex Science & Engineering Corp.

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Agenda

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Part I ： Corporate Profile Part II ： Operation Status Part III： Financial Summary Part IV： Strategy and Prospect

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PART I : Corporate Profile

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Establishment：Year 1976 Listed at Taiwan Stock Market：Year 1995（Stock Code：3052） Paid-In Capital ：NT$ 2,330,045,540. Business：（1）Construction （2）Engineering （3）Electronic components marketing, optoelectronic products′ manufacturing & marketing Corp. Website：http://www.apexgrp.com.tw

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PART I : Corporate Businesses

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Civil engineering, IrED, LED chips construction, hydraulic engineering services marketing

Electronic SMD lighting components marketing manufacturing

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PART II : Operation Status-Constructions

◤ Brief Introductions

With prosper development of construction science in Taiwan, Grade A level, Chang ji Construction has decades-experienced top quality team, offers hi-end quality living housing projects, which include land development, construction planning / development / sales etc. Examples of〝Raphael-The Royal Kingdom 〞in Neihu Dist.,〝Crillon Taipei〞mansion projects in Datong Dist., Condominium projects of〝Best-Rich〞in Neihu Dist. and〝Riverside Scence Palace〞in Wenshan Dist., and〝Universal Hall〞mansion projects in Zhongzheng Dist. All received exceptional sales record, a milestone for Apex Science & Engineering Corp. in construction field. ◤ Business Spirit “Human spirit & integrity management”is working philosophy, building up a long-live house good for human, like build up a dream house for self. After sale service must reach 100% customer satisfactions, mission is to provide every customer a best-ever house to live in.

◤ Business Spirit

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PART II : Operation Status-Constructions

◤ Classic Projects

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Universal Hall Riverside Scence Palace Taipei City Zhongzheng Dist. Taipei City Wenshan Dist. Completion：2014 Completion：2013

Best-Rich Taipei City Neihu Dist. Completion：2013

Crillon Taipei Taipei City Datong Dist. Completion：2010

Raphael-The Royal Kingdom Taipei City Neihu Dist. Completion：2008

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PART II : Operation Status-Engineering

◤ Brief Introductions

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Engineering department established in year 1976, business spirit is ”Being Professional, seeking extraordinary development”. Dedication efforts locally in Taiwan, building up professional engineering skills as foundation, steadily growth, and contribute top-notch quality for long-term corporation goal.

Apex Science & Engineering Corp. has been aggressively collaborated with brand name hiskill companies from Europe, USA & Japan. Other than expanding engineering project services at preliminary stage, Apex also set up instruments & electronics department and environmental engineering department for complete Apex service. Well-planning in cost management, flexible project management for customers′ various needs. From design, planning, purchasing, construction, trial & after-service, Apex provides turnkey total solutions.

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PART II : Operation Status-Engineering

◤ Engineering Quality

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Practical Design & Purchase Manufacturing After-sale
Building & Trial
Research Planning Controlling Management service
Economical research According to design According to design According to detailed Quality assurance is Strict engineering
& technical research. standards, accords plan′s material charts, design drawing or conducted by close quality & after-sale
Including marketing and laws, conduct set up purchase sub-manufacturing monitoring at on-site service are both
survey, concept design and standard operating drawing conduct construction, all principles at Apex, in
manufacturing method rating, detailed supply drawings on design, procedure, differentiate internal production Well-production work. according situation on the field, to actual order customer′s to meet full
material source, purchase of purchase from external planning standard to arranging proper satisfaction.
applicable capacity, manufacturing spec purchase, price achieve strict quality specialists responsible Swift & complete
environmental & accords. Quality negotiation with check, finished for safety & hygiene responses for any of
influence, control procedure & suppliers, contracting products are set for work as well as customer′s questions.
professional skill, cost standards are all strict delivery date/ meeting customers’ construction relevant All customer
& margin analysis. All conformed & issued quality demand/ cost satisfaction. controlling works. satisfaction data
information will be with project costing etc. Equipment setup & sheet are filed
shown in complete planning & assign professional properly in order to
report for strategic development. technicians to assist all contact for regular
reference. equipment testing, follow-ups. Constant
operations & trainings. improvements are
Ensure all working staff Apex′s
has sufficient
responsibilities as
knowledge operating business motto.
the equipment.
Customer-oriented is
the principle.
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PART II : Operation Status-Engineering

◤ Achievements

Category	Project Name
Industrial Park Development	Chiayi Machouhou Industrial Park, Stage 1（Contracting, Sale & Management）
Consolidated Contracting （Civil Engineering & Equipment Electronics）	NCTU Boai Campus Forward-Thinking Cross-Fields Bio-Medical Engineering Buildings Project NCTU Guangfu Campus Graduate Students No.3 Dormitory New-Built Project Taichung Education University Teaching Building New-Built Project Mod Military Reserve Bureau Shui-Nan Airport Relocation（Airforce Material Allocation Storage, Taichung） Project Taiwan Water Cooperation Donggang River Pre-Process Project New Taipei City Luzhou Water Pumping Station Kaohsiung Veterans General Hospital Geriatric Medical Building Project Taichung City Futien Water Resource Recycle Center-Expansion Project Stage 2 Tainan City Rende Area Water Resource Recycle Center-Stage 1 New Built & 3-Year Trial Operation Project
Environmental Engineering	Tainan City Yongkang Water Pumping Station New Built Project（First Archimedes Spiral Type Water Pumping Machine In Taiwan） Yilan County Yilan River Embankment Water-Pumping Project（East Yilan Water Pumping & diversion Pipeline） Kaohsiung City Mid Area Pollution Water Process Plant-Stage 4（Nanqian Pre-Process, Expansion Sea-Water Electrolysis & Others）
Food Process	Council Of Agriculture, Executive Yuan, Livestock Research Institute Feed Mill New-Build Project Taiwan Tobacco & Liquor CORP. Fuxing Beer Plant, Barrel Package Assembly Line-New Build Project

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PART II : Operation Status-Engineering

◤ Achievements

Category	Project Name
Petrochemical	CPC Dalin Plant 5/6 Re-Shuffle For De-Bottleneck Project Linyuan Petrochemical Waste Alkali Oxidation Equipment Project Sanfu AirASAHIⅢH2 & N2 Plant Sanfu Air Chimei Plant CPC Chiayi Lubrication Oil Plant Section 2, Equipment Automation Project
Technology Plant	UMC12A P5 Stage 2 PSB/CUB/OB/LAB & Electrical Engineering For Security Room AUOL7B/L8A Plant Clean Room Engineering INNOLUXT2 Plant New-Built Engineering（Fire Station, Fire Alarm, Smoke Alarm） UMC 12A P5 STAGE 2-Ventilation / Air Con / Fire New Built Project
Electricity Equipment Controlling	TFC Sea-Water Electrolytic Sodium Hypochlorite System Design & Building Project TFC Ammonium Sulfate Plant Design & Building Project CSCBF1, 2, 3 Drilling Of Blast Furnace Dragon Steel Electric Furnace Factory – Hot Metal Water Into Furnace Controlling System Dragon Steel#1 & #2 Blast Furnace Slag Water Quenching System Electricity Engineer Dragon Steel Fragile X Metal Retardation Protein（FMRP）Process Automation Engineer

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PART II : Operation Status-Optoelectronic

◤ Brief Introductions

Optoelectronics department established in year 2000, dedication of LCD, TFT LCD module, OLED, LED Display & components. Supply standard LCD Display & custom-made spec service. Excellent experienced R&D, FAE team. Top quality product & efficient capacity for on-time delivery in order to meet customers′ demands. Best after-sale service is also included.

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Our vision is to become professional supplier of offering turn-key solutions, with ISO9001 & ISO14001 certified, Apex optoelectronics will continuously grow with innovation, wellfunctioned products for meeting customer′s quality & cost consideration. All is for win-win relationship.

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PART II : Operation Status-Optoelectronic

◤ Product Category

Character Graphic CSTN

Medium/small sizes touch panel

LED SMD LAMP 7 Segment Display

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PART III : Financial Summary

◤ Recent 3 Years Important Financial Information（Consolidated）

Amount Unit：NT$1,000

Item/ Year	2014	2015	2016	2017Q1+Q2
Operating Revenue	3,691,612	2,514,096	2,887,603	1,701,142
Gross Profit	439,204	301,672	165,833	95,716
Operating Income	232,986	146,653	44,915	27,747
Net Income	178,973	137,872	52,800	12,927
EPS（NTD）	0.91	0.70	0.22	0.04
Total Assets	7,130,528	8,189,468	9,105,178	7,112,995
Total Liabilities	4,102,857	5,143,505	6,131,456	4,201,052
Total Equity	3,027,671	3,045,963	2,973,722	2,911,943
Paid-In Capital	2,240,428	2,330,045	2,330,045	2,330,045

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PART III : Financial Summary

： ◤ 2017Q1+Q2 Operating Revenue Allocation（Amount Unit NT$1,000）

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1,400,000 Land Others： Sales
Disposal 20,254 Revenue：
1,200,000
Revenue： 1% 108,438
1,187,398
6% [Construction ]
1,142
1,000,000
Revenue：
0%
70,947
800,000
4%
Engineering
600,000
Revenue-
400,000 Electro：
312,963
200,000 312,963
19%
108,438 70,947 1,142 20,254
- Engineering
Revenue-
Civil：
1,187,398
70%
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PART IV : Strategy and Prospect

◤ Operating Strategy

Apex′s business concepts are quality upgrade, down-to-the-earth practice, profit-sharing, continuous expansion. Offer customers best service in responsible attitude.

Construction：

Data collection via industrial-university collaboration for getting future trend of real estate, land sources include purchase, collaborative project & city renewal project development. To satisfy customers′ various need, APEX will develop land via multi-modes & channels.

Engineering：

For public engineering, whole-plant building/expansions, APEX will reinforce cooperations domestically & internationally, on knowledge & skills upgrade for customers′ satisfaction.

Optoelectronics：

On top of current product lines, aggressively expand more new line of products, look for business partners to attract more clients by offering competitive quality & cost products in this field. Besides LED components & LCM modules, we keep work on consuming electronic product market, with new product lines & new business partners, we anticipate to create more business opportunities along with economy recovery.

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PART IV : Strategy and Prospect

◤ Business Short & Long Term Development Plan

Construction

Short-Term：

Business development focus on invest & sales for Taipei area, market demand for medium / small size project.

Long-Term：

Efficiently make best use of current cooperate resources, expansion of business angles & keep track of engineering project schedules. Human resources department offer training sessions for professionalists as well as attracts great staff to join APEX CORP. all to reinforce competition capabilities as well as customer service after-sale. Brand name establishment & well-know reputation resonate with customer′s royalty & sales revenue.

Future Project

Project Name	Location	Location	Product	Product	Lot Area （Pings）	Sellable Area （Pings）	Sellable Area （Pings）	Sellable Value （NT$mn）
Dream Kingdom	New Taipei City Luzhou Dist.		Residential		1,086.69	5,231		2, 800
Finished Project
Project Name		Location		Product			Unsold Value （NT$mn）
Universal Hall		Taipei City Zhongzheng Dist.		Residential			1,200

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PART IV : Strategy and Prospect

◤ Business Short & Long Term Development Plan

Engineering

Total Contracted Amount of Construction

Work in Progress 2017/06/30

Short-Term：

Hi-tech industries in Taiwan has been stablized with steady growth, expansion is also part of the growth. Special industry also have stable growth（ex. petrochemical industry & public engineering etc）, APEX CORP. aggressively gain sales in these fields by professional engineering background & experienced specialists.

Amount Unit：NT$1,000

10,000,000 public engineering etc）, APEX CORP. aggressively gain sales in these fields 8,000,000 by professional engineering background & experienced specialists. 6,000,000 9,991,518 Long-Term： Service-oriented for business 4,000,000 6,981,688 operation, both in private sector & 2,000,000 public engineering. Strive for top quality in electromechanical - construction turnkey projects with strict Electro Civil cost control & punctual completion. Engineering Engineering Project Project

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PART IV : Strategy and Prospect

◤ Business Short & Long Term Development Plan

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Purchase Order Value
Optoelectronics
Amount Unit：NT$1,000 2017/01/01~2017/06/30
Short-Term：
Keep market share of monochrome 60,000
displays; aggressively expand medium
56,347
/ small size TFT display as well as 50,000
backlight module market.
Long-Term： 40,000
A. Multi-channel sales methods in
both domestic & international
30,000
marketing, including attending
trade fairs in optoelectronics. 26,572
B. Excellent R&D offer professional 20,000
technical support for customers,
create added value & turnkey 10,000
service.
7,790
-
LCM TFT LED
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Q&A

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