ECS — Annual Report 2017

Nov 27, 2017

Date: 2017/11

ECS Overview

• Founded in 1987 in Taipei, Taiwan

• Public Listing Company

• Chairman - Mrs. W.Y. Lin

• President – Mr. Sunny Yang

• Capital: 185M USD

• WW 6,421 Employees

• HQ Location: Taipei, Taiwan

• Comprehensive Product Lines:

  • Education Notebook/Tablet/ 2 in 1

  • Motherboards/IPC Board/Sever Board

  • Desktop/Barebones/SFF System

  • PCBA

  • Mini PC

  • All-in-One

  • IoT

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• PC Stick

Milestones

2017

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ECS 30th Anniversary Celebration.

2014

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ECS headquarters adopted smart building system to optimize building energy efficiency.

• 2009 Integrated manufacturing sites at Golden Elite in Shenzhen for better productivity and supply chain management

2008

2007

2006

2005

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• Headquarters new building completion, New BU for advanced communication product Headquarters moved to ECS owned new building, Extended notebook manufacturing site in China (Suzhou)

• Acquired Tatung Desktop PC BU & Uniwill computer Corp. Added new manufacturing sites in China (Shenzhen and Suzhou) Established new offices in China, Korea and Russia.

2003

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Added ECSM Plant II to produce NB and DT systems.

2002

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Achieved 2 Million units/month in MB sales. Ranked #8 in the BusinessWeek InfoTech 100

2001

2000

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Created the DeskNote PC, completely change the NB market segmentations. Achieved MB sales record of 1 Million units/month.

1998

1994

1987

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• Established ECSM in Shenzhen, China starting with a capacity of 0.6M MB Listed on Taiwan’s Stock Exchange. (Code 2331)

Founded as a professional MB company in Taiwan.

Worldwide Location

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----- Start of picture text -----  ECS Russia ECS Japan *Tokyo ECS Korea SeoulECS USA Fremont ECS Mexico  ECS Taiwan *Taipei GECS Plant ECS Colombia *Shenzhen ECS India ECS Peru ECS Brazil ECS Argentina Branch Offices ： Sales rep ECS Manufacturing Site ： H.Q. (Taipei)  Mexico Fremont, USA  Peru  Golden Elite Technology (Shenzhen) Tokyo, Japan  Argentina Seoul, Korea  Colombia Russia Brazil India----- End of picture text -----

Professional IT Supplier

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Product portfolio: comprehensive product lines, including Motherboards, Mini PC, Desktop PCs, Education Notebooks, Tablet, Intelligent IOT Gateway , which is selling all over the world.

Condensed Statement of Comprehensive Income ( Consolidated )

(NT$mn)	YR2012	YR2013	YR2014	YR2015	YR2016	YR2017Q3
OperatingRevenue	66,950	63,442	55,895	48,387	29,946	22,344
Gross Profit	4,531	5,664	5,574	5,472	4,245	2,572
Gross Profit %	6.8%	8.9%	10.0%	11.3%	14.2%	11.5%
Profit(Loss)from Operations	607	1,134	1,614	1,546	(1,792)	454
Profit(Loss)from Operations %	0.9%	1.8%	2.9%	3.2%	-6.0%	2.0%
Total non-operating income and	120	2,896	423	143	457	198
Profit(Loss)Before Income Tax	727	4,030	2,037	1,690	(1,335)	652
Income Tax	360	521	735	578	(456)	198
Net Profit (Loss) Attributable to:Owners of the Company	359	3,624	1,386	1,151	(945)	453
Net Profit(Loss)%	0.5%	5.7%	2.5%	2.4%	-3.2%	2.0%
Basic Earnings(Loss) per share(NT$)	0.30	3.44	2.09	2.07	(1.70)	0.81

Condensed Balance Sheets (Consolidated)

(NT$mn)	(NT$mn)	As ofDec. 31, 2012	As ofDec. 31, 2013	As ofDec. 31, 2014	As ofDec. 31, 2015	As ofDec. 31, 2016	As ofSep. 30, 2017
Current Assets		26,769	26,617	24,729	19,240	16,384	16,126
Property, plant and equipment		8,177	4,721	4,388	3,830	3,261	3,057
Intangible Assets		881	629	642	639	628	639
Other Assets		2,724	2,784	2,715	2,534	3,112	2,735
Total Assets		36,551	34,751	32,473	26,244	23,385	22,557
Current Liabilities	Before	14,942	15,730	15,645	11,159	10,711	9,945
	AfterDistribution	15,534	17,930	18,431	12,274	non-Distribution	－
Non-Current Liabilities		2,109	635	610	632	698	579
Total liabilities	BeforeDistribution	17,051	16,365	16,255	11,790	11,409	10,524
	AfterDistribution	17,643	18,565	19,041	12,905	non-Distribution	－
Total equity attributable toowners of the Company		19,186	18,177	16,085	14,356	11,814	11,879
Share capital		11,832	7,336	5,571	5,574	5,574	5,574
Capital surplus		6,462	6,462	6,486	6,461	6,461	6,427
Retained earnings	Before	882	4,467	3,647	2,006	(34)	444
	AfterDistribution	840	2,267	860	919	non-Distribution	－
Other equity		(539)	(88)	381	286	(188)	(566)
Treasurystock		0	0	0	0	0	0
Non-ControllingInterests		314	209	133	98	162	154
Total equity	BeforeDistribution	19,500	18,386	16,218	14,454	11,976	12,033
	AfterDistribution	18,908	16,186	13,431	13,339	non-Distribution	－

Thank you