FIS — Interim / Quarterly Report 2020

Dec 18, 2020

Fortune Information Systems Corp.

2019 Investor Conference

Disclaimer

◆ This presentation may contain statements of future prospects. The statement is based on the expectation of the present situation, but at the same time is limited by the known or unknown risks or uncertainties. Therefore, the actual results may be different from the content of the statement.

◆ Except as required by laws, the company is not obliged to voluntarily its of the future outlook in the of new update presentation light information or future events.

◆ There are variety of factors which may influence statements or contents been drafted within this therefore we presentation, strongly recommend audience to refer to the information published on MOPS website in case any adjustment has been made.

Outline

• ⚫ About FORTUNE

⚫ Products & Services ⚫ Financial report ⚫ Q&A

About FORTUNE

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Hong Kong
Kinmen
Subsidiary IPAC
Integrity Subsidiary
Taipei HQ
Innovation
Penghu
Jhongli Branch
Service
Hsinchu Branch
Yilan
Fortune Information Systems Corp.
Established 1977.04.11 Taichung Branch
IPO 2001.09.17 Hualien
Headquarter Taipei City, Taiwan Service
Tainan Branch
Centre
Number
311
of staff Taitung
Industry Information Service
category Industry
Kaohsiung Branch
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Main business

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System integration and professional services Software and hardware sales and maintenance services

Video projector, image product sales and information image processing Insurance Industry Information System Outsourcing Service

Integrate modularized own software to provide customized software value-added services

Industry trends and Development

IDC prediction :

Enterprise infrastructure technology adoption

Top10 20% of enterprises will use hybrid cloud architecture, and 25GbE networks are beginning to rise

Note: The percentage is the proportion of companies that adopt this item

Source :iThome

SI - CMP

This year’s annual priority goals Top10 60% are focus on information security first, and 30% want to push digital transformation

Source : iThome 2020 CIO investigate

SI Development plan

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Trend Project

Application

CMP extended development Microservice VMware VCF platform construction and maintenance. CMP Promote FIS CMP Integrate VMware7.x Customization Process management DLP Forcepoint integration

SI Development direction

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Follow the industry development trend, develop related business of multi-cloud management (CMP), make products optimization / modularization / standardization. In response to the continuous rapid growth of data volume and data diversification, continue to develop storage equipment and backup related solutions.

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Continue develop the information security related solutions .

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Based on CMP, integrate container technology’s application service to help FORTUNE customer digital transformation .

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。 Develop AIOT automation equipment.

Device Maintenance - AIOT

• Will focus on the development of AIOT (Intelligent IOT)

• Continuous improvement of service model

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EZpost
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Add
value
machine
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• New EZpost case

We have three advantages ：

• ➢ Economies of scale

• ➢ Quick repair

• ➢ High integration standard

(integrate multiple devices and software)

SI- Achievements

CMP

⚫ Ministry of Education –CMP and maintenance

⚫ Department of Education-Information resources are up-centralized virtual server to build a service case

Information Security

• ⚫ Clearing House-Data Leakage Safety Protection System Software License Purchase Case

⚫ Central bank-Social engineering mail attack defense system upgrade procurement case

• ⚫ First Commercial Bank-Remote connection monitoring record case

Backup ⚫ Bank Sinopac-Overseas new core storage backup procurement case

SI- Achievements

AI & Virtualization

⚫ Taiwan Cooperative Bank-RPA Process automation construction project ⚫ Central bank-Network server and virtualization platform construction project

⚫ Joint Credit Information Center-Case of replacing virtual platform in control zone

• ⚫ Taipei Veterans General Hospital-A batch of server and network

• Equipment equipment ⚫ Chungwa Post Co. - i mailbox – 940 set cabinet equipment integration ⚫

• integration Chungwa Post Co. - i mailbox – 400 set cabinet equipment integration

• ⚫ Chungwa Post Co. - i mailbox – 940 set cabinet equipment integration ⚫ Chungwa Post Co. - i mailbox – 400 set cabinet equipment integration

• ⚫ Chungwa Post Co. – EZPost Purchase case of mail receipt printing system

• ⚫ Clearing House-Account management, inventory and behavior track record tools ⚫ Central bank- Network equipment upgrade plan for internal local area network

Other

• ⚫ Taipei Veterans General Hospital-Continuous data integration system case

• ⚫ Taipei Veterans General Hospital-Data conversion tool software expansion

• ⚫ Bank of Taiwan- Online learning platform construction project

• ⚫ Joint Credit Information Center-RS6000 Host and related equipment replacement and intermediary software upgrade case

Imaging Product Services Document and image management applications

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(System structure)

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Form Customized
Combination manag expansion
ement
of
software Interfacing
Data
and with external
index
hardware databases
Data System
classific integration
ation application
Human
Services
13
Authority
Document
Management Multiple Digital
management File template management
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Imaging Product Services - Achievements

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Digital scanning of examination papers, digital collection of books

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College Entrance Examination Center - Digital scanning of examination papers

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Business needs

• Every year the exam brings a lot of test papers to be processed

• Manual review of test papers and poor scoring in time

Kodak Alaris

• Kodak i4850-A3 size high-speed / mass scanning

• Benefits

• Fully electronic, electronic

• scoring (improving efficiency).

• Easy to review, manage and

• high efficiency.

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• It can be extended from the centralized examination to the daily evaluation of the universities, and the results can be quickly processed in real time.

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Logistics _WMS System

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Inbound
AI
Smart Inventory
logistics
Track WMS Processing
Billing Outbound
TMS
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Existing industry applications

• ⚫ Fresh food e-commerce / Retail and manufacturing / Third-party logistics / Food processing industry

Future development

• ⚫ Develop Smart logistics

• TMS develops smart routes to reduce route mileage and time costs

• Develop intelligent visual recognition applications, use advanced neural networks to automatically identify the types and quantities of items, integrate logistics systems, and reduce labor costs.

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Consolidated Balance Sheets

	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand
Item	2020.09.30		2019.12.31		2019.09.30
	Amount %		Amount %		Amount %
Cash and cash equivalents	106,909	6%	101,833	5%	162,382	9%
Accounts receivable	744,217	45%	800,675	42%	790,366	42%
Inventories	184,998	11%	245,989	13%	181,111	10%
Other current assets	169,964	10%	298,143	16%	286,447	15%
Property, plant and equipment	303,943	18%	243,243	13%	244,899	13%
Investment Property	-	0%	63,836	3%	64,027	3%
Other non-current assets	167,673	10%	154,420	8%	156,347	8%
TOTAL ASSETS	1,677,704	100%	1,908,139	100%	1,885,579	100%
Short-term loans	80,000	5%	40,000	2%	155,000	8%
Short-term notes and bills payable	-	0%	59,988	3%	59,979	3%
Accountspayable	295,218	17%	494,510	26%	347,260	18%
Other liability	160,210	10%	175,312	9%	195,744	11%
TOTAL LIABILITIES	535,428	32%	769,810	40%	757,983	40%
TOTAL EQUITY	1,142,276	68%	1,138,329	60%	1,127,596	60%

Financial Ratios

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250.0%
228.6%
200.0% 190.9% 191.4%
177.7%
153.5%
146.1%
150.0%
100.0%
68.1%
59.8% 59.7%
50.0% 40.2% 40.3%
31.9%
0.0%
Current ratio Quick Ratio Debt ratio Equity ratio
2019.09.30 2019.12.31 2020.09.30
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Accounts receivable turnover days & Inventory turnover days

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140
122
120
109
96
100
80
60
42
40 33 34
20
-
Accounts receivable turnover days Inventory turnover days
2019.09.30 2019.12.31 2020.09.30
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Consolidated Income Statements

	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand	Unit：NT$ thousand
Item	2020 01.01-09.30		2019 01.01-09.30		Different
	Amount %		Amount %		Amount Growth rate
Operating revenue	1,674,836	100%	1,458,756	100%	216,080	15%
Operating costs	1,498,814	89%	1,310,478	90%	188,336	14%
Gross profit	176,022	11%	148,278	10%	27,744	19%
Operating expenses	128,681	8%	118,650	8%	10,031	8%
Operating income	47,341	3%	29,628	2%	17,713	60%
Non-operating income and expenses	2,461	0%	10,674	1%	(8,213)	-77%
Income before income tax	49,802	3%	40,302	3%	9,500	24%
Income tax expense	9,164	1%	7,411	1%	1,753	24%
Net Income to Shareholders of the Parent Company	40,638	2%	32,891	2%	7,747	24%
EPS(NT Dollar)	0.58		0.47		0.11	23%

Sales revenue comparison

Unit：NT$ thousand

YoY QoQ 1,000,000 9.6% 45.7% 800,000 674,543 615,303 600,000 462,820 400,000 200,000 - 2019Q3 2020Q2 2020Q3

Consolidated Gross profit %

YoY QoQ 1.1pt -0.7pt

16.0% 12.0% 10.7% 10.0% 8.9% 8.0% 4.0% 0.0% 2019Q3 2020Q2 2020Q3

Consolidated Gross profit

Unit：NT$ thousand YoY QoQ 100,000 24.1% 36.1% 80,000 67,627 60,000 54,477 49,675 40,000 20,000 - 2019Q3 2020Q2 2020Q3

Consolidated Operating expenses

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Unit：NT$ thousand
YoY QoQ
7.4% 5.7%
60,000
50,000
42,705
40,406
39,749
40,000
30,000
20,000
10,000
-
2019Q3 2020Q2 2020Q3
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Consolidated Operating income

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YoY QoQ Unit：NT$ thousand
40,000
69.2% 168.9%
30,000
24,922
20,000
14,728
9,269
10,000
-
2019Q3 2020Q2 2020Q3
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Consolidated Operating income%

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YoY QoQ
1.3pt 1.7pt
5.0%
4.0%
3.7%
3.0%
2.4%
2.0%
2.0%
1.0%
0.0%
2019Q3 2020Q2 2020Q3
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Consolidated Net income

Unit：NT$ thousand YoY QoQ 30,000 37.1% 204.9% 19,817 20,000 14,455 10,000 6,499 - 2019Q3 2020Q2 2020Q3

Consolidated Net income%

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YoY QoQ
0.6pt 1.5pt
4.0%
2.9%
3.0%
2.3%
2.0%
1.4%
1.0%
0.0%
2019Q3 2020Q2 2020Q3
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Cumulative net profit

Unit：NT$ thousand

50,000

42,486 40,000 30,000 20,000 10,000

45,940

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40,638

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-

2018 年度

2019 年度

2020.01-09

EPS

Unit : dollar

0.80

0.66

0.61 0.60 0.40 0.20 EPS 2018 年度 2019 年度 2020.01-09

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0.58
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31