FIS — Investor Presentation 2018

Dec 13, 2018

Fortune Information Systems Corp.

2018 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  Business Achievements  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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SI-Business Category

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Partner and Vendors

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Distributor/
Agency
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Cloud
services
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Network
and security
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IT Equipment
maintain
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 Fortune has more than 100 professional certifications, and has been recognized by the original factory and obtained 。 the qualification of partners.

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Partner qualification

Partner

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New generation digital computer facilities architecture (CMP)

Management

Cross-platform integration

Automatic service management

Automated application deployment

Cloud infrastructure

Secure multiple lease

Software defined DC service configuration

Software Software Software Software defines defines defined defined storage network security availability device connection

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Elasticity
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Cloud API

Application transfer between clouds

Virtualization

Automated cloud operations management

Software defines operation and memory

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Negotiate with the partner system

SI_CMP application

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CMP platform

1. It can deploy and manage public and private clouds.

2. Has a single console interface, cross-physical device / cross-label / cross-platform monitoring capabilities.

3. Hybrid cloud resources can help each other to create a balance of resource applications by leveraging internal and external IT resources.

4. It can fully integrate enterprise processes, culture and expand the effect of cloud on

comprehensive platform enterprise development.

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Industry trends and Development

 IDC predicts 10 major trends in IT development in Taiwan

• ”

• • It is expected that the main contribution of global and Taiwan's GDP in 2021 will come from “digitalization , and the “future business” model will become an important source of profit for enterprises.

• Digital Technology pushes up the formation of enterprise Digital Intelligence Platform, unmanned business model is coming.

• Cloud at the Edge will accelerate the adoption of cloud computing technology, and the cloud service application environment will become more complex.

• AI at the edge，Smartphone-as-a-platform

• In the digital economy, information security will have the ability to "learn" and "predict". "Security" has become an important indicator of corporate value and reliability.

• Digital transformation is intensifying, micro-service architecture will become mainstream.

• Under the decentralization and high lure, the blockchain still grows and grows in the groping improvement.

• Although the blockchain is still in the process of exploration, it still grows because of the high trend of centralization.

• The cross-industry cooperation becomes a normal state, and the open enterprise mechanism is gradually formed.

• NB-IoT wins in the LPWAN market, promoting new business opportunities for IoT services before the 5G, and telecom operators will be more active towards platform and ecological construction roles.

• Gaming 3.0 is coming, user experience is the core of development

SI Development direction

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• Continue to develop Fortune CMP product related business, optimize/ module/ standardize it, and help customers to complete the environment of the basic cloud platform for applications such as AI and Microservices.

• Depends on the continuous rapid growth of data volume and diversified data, we continue to develop solutions for storage devices and backup solutions.

• Continue to develop information security solutions.

• Depends on digital transformation and DevOps development trends, we help customers to build microservices applications.

• Research AI related solutions and establish AI basic platform (including network, server, storage device) .

Image Technology Application

_Medical Warehousing System

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 For digital transformation needs

1. Utilize Kodak Alaris' high-performance scanner and developed document management system by Fortune to help hospitals improve document management efficiency and reduce manpower.

2. Follow up the decree of the Bureau of National Health Insurance, submitted electronic file of the medical record, application for the hospital health insurance points and help customers reduce costs.

 Benefit ：

• Improve work efficiency

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• Check and access file information immediately

• Reduce storage space

• Information security protection

Success case in Hospital

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Image Technology Application

_Medical Warehousing System

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• Follow the government's smart city policy

• Compare the seals that people applied for the financial seals, scan the seal data into digital files instead of manual verification.

• Automated comparison through software tools, greatly reducing the loss of manual work and improving work efficiency .

• Planning the direction of digitizing the financial institution’s seals and work process.

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Image Technology Application _Medical Warehousing System

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Logistics _WMS System

• Improve warehouse efficiency and improve quality management.

• Optimize warehousing and quality inspection functions, make quality guaranteed.

• First-in-first-out goods and effective management.

• Elasticity of shipping operations to improve warehouse efficiency

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： Software development

• Develop the Food/Drugs/Cosmetics GDP WMS Management System.

• Develop the application and management of smart warehousing.

－ Business Achievements Finance

• CBCIntra and Host Environment Equipment Replacement and Expansion

• Host disk backup

• Safety Control Integration Management and Related Construction Services

• Network and the project of security control construction

• Database, application server software construction project

• Important core storage system project

• Open Platform Application Integration (EAI) Enhancement

• DLP setting up and process engine development

• Individual inventory and data leakage protection system (DLP) upgrade

• Cloud Data Center Virtualization (VMware)

• Server virtualization and monitoring system (VMware VSOM & Microsoft)

• Host disk drive equipment replacement and upgrading of remote backup transmission equipment procurement case

• Server Virtualization and Monitoring System (VMWARE +VDI)

－ Business Achievements Insurance

 CyberARK Privileged account system procurement case  Storage and backup equipment procurement project  Incoming and online underwriting project system  GPU host build project

 Microservice Platform Construction Project (including hardware, platform construction, software development)

• Core system disk replacement

－ Business Achievements Public Sector

• Server virtualization and cloud server management (Microsoft Azurepack Cloud)

• Virtualized data backup system case

• Server virtualization (VMware)

• Advanced AI computing environment leading experiment host procurement case

• GPU research and development procurement case

• Web hosting information service server and network system procurement case

• Second-hand auxiliary equipment warehouse management system

Business Achievements

－ Healthcare, Private Sector

• NAC Network management project

• CISCO wireless network integration case

• Medical record scanning operation

• Health Insurance Declaration Digitalization of Review Counter System

• Medical images of storage system

• Retail industry, batch number, transportation and warehousing management case

• Frozen food production history warehouse management case

Consolidated Balance Sheets

Unit ： NT$ Thousand

Item	2018.09.30	2018.09.30	2017.12.31	2017.12.31	2017.09.30	2017.09.30
	Amount	%	Amount	%	Amount	%
Cash and cash equivalents	123,003	8%	376,245	24%	276,933	19%
Accounts receivable	627,856	40%	438,956	28%	472,252	32%
Inventories	125,989	8%	121,179	8%	86,270	6%
Other current assets	244,783	15%	146,246	9%	139,043	9%
Property,plant and equipment	249,687	16%	250,641	16%	253,177	17%
Investment Property	64,819	4%	65,448	4%	65,666	5%
Other non-current assets	152,505	9%	164,233	11%	170,879	12%
TOTAL ASSETS	1,588,642	100%	1,562,948	100%	1,464,220	100%
Accountspayable	344,158	22%	280,314	18%	221,751	15%
Other liability	123,671	7%	164,857	10%	133,800	9%
TOTAL LIABILITIES	467,829	29%	445,171	28%	355,551	24%
TOTAL EQUITY	1,120,813	71%	1,117,777	72%	1,108,669	76%

Consolidated Income Statements

	Unit：NT$ Thousand	Unit：NT$ Thousand	Unit：NT$ Thousand	Unit：NT$ Thousand	Unit：NT$ Thousand	Unit：NT$ Thousand
Item	2018 01.01-09.30		2017 01.01-09.30		Different
	Amount	%	Amount	%	Amount	Growth Rate
Operating revenue	1,237,103	100%	955,814	100%	281,289	29%
Operating costs	1,096,095	89%	821,358	86%	274,737	33%
Gross profit	141,008	11%	134,456	14%	6,552	5%
Operating expenses	113,747	9%	108,171	11%	5,576	5%
Operating income	27,261	2%	26,285	3%	976	4%
Non-operating income and expenses	13,038	1%	5,301	-	7,737	146%
Income before income tax	40,299	3%	31,586	3%	8,713	28%
Income tax expense	8,954	-	6,376	1%	2,578	40%
Net Income to Shareholders of the Parent Company	31,345	3%	25,210	2%	6,135	24%
EPS(NT Dollar)	0.45		0.36		0.09	25%

Sales Revenues by Type

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Cloud architecture an
virtualization solutions
10%
Professional services Hardware
and others equipment
20% 20%
Computer equipment
Maintenance and system integration
service 44% AI and microservice Storage and
11% applications backup solutions
32%
12%
Professional Computer video
image products Cloud computer
processing 23% engine room Network and
service
rental value-added information Data center
2%
applications and security solutions monitoring
services 15% system
5% 6%
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