GEMTEK — Annual Report 2015

Mar 29, 2016

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Access

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[Safe Harbor Notice ]

The following presentation may contain forward-looking statements regarding, among other things, our financial condition, future expansion plans and business strategies based on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties and assumptions.

The company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The actual results could differ materially from those contained in these forward-looking statements.

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Company Introduction

• Established: 1988

• Location office: Hsinchu Industrial Park,Hsinchu ,Taiwan(Headquater)

 Global Total Employees: ≈ 4,500 (TWN: 950 )

 Capital: NT$3.02 Billion (US$104.85 Million)

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Chang Shu Plant
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Plant Size: 441,600.SQF Land Size: 1,635,520.SQF

Czech Republic

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Plant Size: 102,000 SQF
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KuShan Plant
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Plant Size: 330,000 SQF Land Area: 150,000 SQF

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Hsinchu Headquarter
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Floor Space: 322,000 SQF Land Area: 215,000 SQF

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2015 Financial Performance

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2015 Income Statement

Units: NT$ Thousands; Consolidated

	2015	2015	2014	2014
Sales Revenue (k)-	17,529,601	100%	17,684,261	100%
Gross Profit(K)	2,132,421	12.16%	1,850,401	11%
Operating Income	111,398	0.64%	(202,305)	(1%)
Non-Operating income and expense	140,183	0.80%	353,346	2%
Net Profit After Tax (k)	206,665	1.18%	71,644	0.4%
EPS after tax	0.69		0.23

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2015 Balance Sheet

Units: NT$ Thousands; Consolidated

Asset	2015 Amount %	2015 Amount %		Liability and Equity	2015 Amount %	2015 Amount %
Cash Equivalents	3,880,733	25%		Short-term borrowing	1,821,788	12%
				A/P	2,457,059	15%
A/R	3,936,879	26%
				Other Payables& Current Liabilities	2,488,363	17%
Inventory	1,108,564	7%
				Non-current Liabilities	192,529	1%
Other Current Assets	578,470	4%
				Total Liabilities	6,959,739	45%
Non-current Asset	5,948,193	38%
				Total Equity	8,493,100	55%
Total Assets	15,452,839 100%
				Total Liabilities & Equity	15,452,839 100%

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2015 Revenue Breakdown by Product

Telecom Infrastructure (Femtocell) 17%

Ap gateway 11%

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Wifi clients (IoT) 16%

Intergrated Products (IAD,HA,Cloud) 56%

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2015 Summary of facts

• The China Exchange Rate Volatility and Labor costs increase has impacted the whole environment last year. But we see more and more sevice provider coming up which means more opportunities for Gemtek .

• IPSTB shipment is getting lower shipment since last year because of our indirect customer merged the other branding company in changing to Satellite STB.

• Ap router product itself is a mature and standardized products . Strategic decrease the portion of low margin router products.

 We have our first customer adopted our Smart Home cloud solution last year.

 We see the valuation in IoT market,and the investment in GIoT RD resource which haven’t contribute to the revenue yet.

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2016 Driver

 Wireless Broadband infrastructure driven :

• New G.fast technology customers are emerged in IAD business.

• Wireless 4G infrastructure products coming up in 2H2016.

• New customer in Wireless Broadband Market coming up 2H2016.

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2016 Driver

• Cloud foundry revenue driven:

• Next generation of Smart home gateway start to ship out in

2Q2016.

• GIoT revenue driven not only from hardware trackers shipment fees, but also from Connectivity fees, License service fees, Operation fees in 2H2016.

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Product Lines

Product Lines

Telecom Infrastructure

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4GLTE CPE gateway (In/Out) Dongle Mifi Small cell

Integrated Products IAD: xDS L Cloud: GPON IPcam G.fast Smart grid Smart home gateway

Enterprise AP Router

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High End Ap router Telco router Long Range AP

W-HDMI/PLC

IoT

Wifi Combo Modules

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Wifi Repeater Long Range IoT

Sample Products

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LTE Market Growth

 By early 2018, there will be 1 billion LTE connections  . The small cell market grow $2.5billion by 2018

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Source: Infonetics Research Forecast

LTE Teleco Proven customer -permises product

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STB
PC Wire Ethernet
Switch
LTE
Wire Phone
Wire Wi-Fi
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Gemtek LTE Small Cell

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Enterprise
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G.Fast broadband standard

G.FAST is the next generation provides up to 1Gbps of ultra broadband access to consumers over their existing copper telephone wiring.

1.FIBER performance over copper wiring 2.LOWEST cost per megabit delivered( No trenching or in-home installations )

3. FAST and easy to deploy

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Integrated Products :GPON & G.fast

• New G.fast technology customers in North America have already emerged in IAD business.

• The next generation of DSL - G.fast solution which could enhance the Internet surfing experience .

 The highly integration consists Giga LAN, up to 4x4 11a/b/g/n/ac Wi-Fi, MoCA, Voice, could be integrated into one box

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High End Access Point

 Gemtek 802.11ac wave 2 Router, that delivers up to 1750Mbps wireless and Ethernet connectivity from 100Mbps to 1Gbps, provides multi-functional capabilities, particularly the high-performance throughput and high-quality security to propose an integrated, thorough SOHO solution.

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Source: AnandTech

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Indoor IoT solutions (Home Automation)

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Home Automation

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• Leak Detector
• Motion Sensor
•
Window/Door Sensor
•
Temperature/Humilty Sensor
Monitor
• Lighting Switch
Cloud
Lighting
Zigbee
Zigbee WAN
• Light Switch
• Smart-Plug WiFi Gateway
Smart OTT Box
Energy WiFi
WiFi
WiFi TV
IP Cam
Sprinkler
Sprinkler Coordinator
Thermostat
With HA Coordinator Function
Temperature/Humidity Sensor
Motion Sensor
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HVAC
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Long Range IoT solutions

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Global devices connected to the Internet

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21

IoT Current Challenges

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Limited
High Power
Concurrent
Consumption Current
Clients
Challenges
3H + 2L
Limited
High
Transmit
Communication
Distance
fee
High Cost
Infrastructure
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Long Range IoT LPWAN

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Distance
(Meters)
10000
5000 LPWAN
WiMAX
2000 5G
2G 3G 4G
300
Zigbee Wi-Fi Wi-Fi
RFID
100 11a/b/g/n 11ac Data Rate
Blue
NFC Tooth (Mbps)
0 0.25 0.5 1 10 100 1000
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Taipei IoT Smart City

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● Location

• Taipei, first-tier city in Taiwan

● Time

• Infrastructure ready by February, 2016

● Launch

• Coverage : 271.8 km[2 ] (whole city)

• 12+ outdoor APs

• Indoor APs for dead space and better

coverage after field application deployed.

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Smart Parking

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Internet Service
GIoT Provider
LPWAN
3G/4G
APP Billing
Direction
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Smart Parking Sensor
(Magnetic, Infrared, Radar)
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Thank You

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