FIS — Investor Presentation 2019

Dec 12, 2019

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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Industry trends and Development

 IDC prediction

• It is estimated that by 2021, the main contribution of global GDP will come from "digital transformation", and in the future, new business models will become the most important source of profit for enterprises.

• Digital technology promotes the formation of digital smart platforms for enterprises-the unmanned business model is coming.

• Cloud at the Edge will accelerate enterprises to adopt cloud-based technology, cloud service application environment becomes more complex.

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

• Under the digital economy, information security will have the ability to "learn" and "predict", and "security" has become an important indicator of corporate value and trust

• Digital transformation is intensifying, and microservice architecture is the main development direction

• Under the decentralization and high temptation, the blockchain is still exploding in the exploration

• Cross-industry cooperation has become the norm, and the open enterprise mechanism has gradually matured

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

SI-Micro service

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CMP & SI-Micro service

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FORTUNE Cloud service (CMP)

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1 Virtualization Enterprise Private Cloud 2
disperse
Server virtualization Web + AP + DB
4 public cloud hybrid cloud 3
System of
insurance
brokers
rental
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SI-CMP application

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CMP platform

1. It can deploy and manage multi-cloud.

2. Has a single console interface, manage the virtual machine and device/cross- brands / Heterogeneous platform and provide monitoring 。

functions

1. Use multi-cloud to help enterprises to create a balance point of application through the flexible use of internal and external IT resources.

2. Sign-off management can support multi-cloud architectures.

3. Integrate corporate processes and culture, expand the comprehensive effect of CMP on corporate development.

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Device Maintenance

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Card
reader
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Add
value
machine
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• Focus on maintenance speed and efficiency

• Changes in service models

We have three advantages ：

• Economies of scale

• Quick repair

 High integration standard (integrate multiple devices and software)

Smart Cabinet_ i-mailbox

_R & D design, construction and maintenance

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FORTUNE combining manufacturing factories with rich experience of cabinet production and abroad, and large cabinet storage and logistics companies with professional construction capabilities; jointly the i-mailbox construction project.

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This year, it has successfully expanded 1,600 bases, and is currently continuing to carry out maintenance work, and is actively planning to undertake the purchases project of i-mailboxes.

SI Development direction

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1. Follow the industry development trend, develop related business of multi-cloud management (CMP), make products optimization / ，

modularization / standardization help customer ”Move to Cloud”, “Run the Cloud”, “Innovate on Cloud”.

1. In response to the continuous rapid growth of data volume and data diversification, continue to develop storage equipment and backup related solutions.

2. 。

3. 1. Continue develop the information security related solutions

4. Based on CMP, integrate container technology’s application 。

service to help FORTUNE customer digital transformation

1. Develop AI solutions , building an AI-based platform( including 。

network, server and storage)

SI- Achievements

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CMP
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1. Ministry of Education –CMP and maintenance

2. Cathay Life Insurance – Microservice platform

3. Yuanta –Vmware purchase

4. case

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Information security
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1. Cathay Life Insurance – APT solution

2. Cathay Life Insurance – Forcepoint

3. Taiwan Business Bank-DLP

4. Taiwan Cooperative BankGuardium database monitoring upgrade

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Backup redundancy
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1. Taiwan Business Bank-CDP 2. Taiwan Cooperative BankEAI Offsite backup

3. CBC- Data backup and recovery mechanism optimization and expansion

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AI & Virtualization
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1. Taiwan Cooperative BankBatch scheduling management system

2. National Center for HighPerformance Computing-Ai platform

3. Taiwan Business Bank-VDI

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Equipment integration
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Other
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1. Chungwa Post Co. - i mailbox – 660 set cabinet equipment integration

2. Taiwan Cooperative Bankcredit card OCR input system

3. Financial Information Service Co. 2.

4. Heterogeneous platform solution

Taiwan Cooperative BankEATM

1. Bank SinoPac Co.- Replacement of high-end disk storage equipment

2. Taipei Veterans General Hospital - Replacement of workstation

Imaging Product Services

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Document and image management applications
(System structure)
Form Customized
manag
expansion
ement
Interfacing
Data
with external
index
databases
Data System
classific integration
ation application
Authority
Document
management File template Management management
Multiple Digital
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Logistics _WMS System

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Inbound
B2B
Inventory
Web
Track WMS Processing
Billing Outbound
TMS
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Existing industry applications

• Fresh food e-commerce / Retail and manufacturing / Third-party logistics

Future development

• Develop Pharmaceutical / cosmetic temperature logistics

• Developed TMS to provide shipping forecast information to 。

• improve on-time delivery rate

• WMS+TMS Track the entire history of cargo conditions and temperature, and display normal temperature reports and abnormal warnings, in compliance with government GDP regulations.

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Consolidated Balance Sheets

Consolidated Balance Sheets	Consolidated Balance Sheets	Consolidated Balance Sheets	Consolidated Balance Sheets	Consolidated Balance Sheets	Consolidated Balance Sheets	Consolidated Balance Sheets
Unit：NT$ thousand
Item	2019.09.30		2018.12.31		2018.09.30
	Amount %		Amount %		Amount %
Cash and cash equivalents	162,382	9%	196,764	12%	123,003	8%
Accounts receivable	790,366	42%	561,626	36%	627,856	40%
Inventories	181,111	10%	113,464	7%	125,989	8%
Other current assets	286,447	15%	232,818	15%	244,783	15%
Property, plant and equipment	244,899	13%	248,245	16%	249,687	16%
Investment Property	64,027	3%	64,616	4%	64,819	4%
Other non-current assets	156,347	8%	149,577	10%	152,505	9%
TOTAL ASSETS	1,885,579	100%	1,567,110	100%	1,588,642	100%
Short-term loans	155,000	9%	-	0%	-	0%
Short-term notes and bills payable	59,979	3%	-	0%	-	0%
Accountspayable	347,260	18%	297,676	19%	344,158	22%
Other liability	195,744	10%	140,346	9%	123,671	7%
TOTAL LIABILITIES	757,983	40%	438,022	28%	467,829	29%
TOTAL EQUITY	1,127,596	60%	1,129,088	72%	1,120,813	71%

Consolidated Income Statements

Consolidated Income Statements	Consolidated Income Statements	Consolidated Income Statements	Consolidated Income Statements	Consolidated Income Statements	Consolidated Income Statements	Consolidated Income Statements
Unit：NT$ thousand
Item	2019 01.01-09.30		2018 01.01-09.30		Different
	Amount %		Amount %		Amount Growth Rate
Operating revenue	1,458,756	100%	1,237,103	100%	221,653	18%
Operating costs	1,310,478	90%	1,096,095	89%	214,383	20%
Gross profit	148,278	10%	141,008	11%	7,270	5%
Operating expenses	118,650	8%	113,747	9%	4,903	4%
Operating income	29,628	2%	27,261	2%	2,367	9%
Non-operating income and expenses	10,674	1%	13,038	1%	(2,364)	-18%
Income before income tax	40,302	3%	40,299	3%	3	0%
Income tax expense	7,411	1%	8,954	0%	(1,543)	-17%
Net Income to Shareholders of the Parent Company	32,891	2%	31,345	3%	1,546	5%
EPS(NT Dollar)	0.47		0.45		0.02	4%

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