GEMTEK — Investor Presentation 2018

May 22, 2018

Gemtek Company profile

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Safe Harbor Notice
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• 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 forwardlooking statements.

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About Gemtek

• Established: 1988

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

• Global Total Employees:≈ 3,100 (TWN: 930 )

• Capital: NT$3.4 Billion (US$114.5 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

Plant Size: 102,000 SQF

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Hsinchu Headquarter

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

Certified Sites:

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KuShan Plant
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ISO 9001 Plant Size: 330,000 SQF ISO 14001 Land Area: 150,000 SQF ISO 13485 OHSAS 18001 TL9000 C-TPAT

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Develop Mission
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Gemtek’s Core Value

Commercialization RF & Engineering SW Integration & Customization

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Organization Chart

CHAIRMAN & PRESIDENT Howard Chen Business Strategy & Advance Technology Business Development GENERAL MANAGER Legal Affairs Cost Center Kenny Su GM Office CMO CTO COO CFO Rock Cheng Fred Yeh TC Lin Charlin Lin

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2018 Q1 Financial Results

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2018 Q1 Income Statement
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Units: NT$ Thousands; Consolidated

Units: NT$ Thousands;	Consolidated	Consolidated
	March 31 2018		March 31 2017
	Amount %		Amount %
Sales Revenue (k)-	3,721,602	100%	3,882,939	100%
Gross Profit(K)	321,615	9%	638,031	17%
Operating Income	(56,110)	1%	225,517	6%
Non-Operating income and expense	115,831	3%	13,173	-
Net Profit After Tax (k)	44,932	1%	189,506	5%
EPS after tax	0.14		0.63

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2018 Q1 Balance Sheet
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Units: NT$ Thousands; Consolidated

				Liability and Equity	March 31 2018 Amount %	March 31 2018 Amount %
Asset	March 31 2018 Amount %
				Short-term borrowing	604,853	4%
**Cash Equivalents **	2,053,103	14%
				A/P	3,918,722	26%
A/R	3,571,158	23%
				Other Payables& Current Liabilities	371,681	2%
Inventory	2,618,219	17%
				Non-current Liabilities	210,952	2%
Other Current Assets	634,082	4%
				Total Liabilities	5,106,208	34%
Non-current Asset	6,337,186	42%
				Total Equity	10,107,540	66%
Total Assets	15,213,748 100%			Total Liabilities & Equity	15,213,748 100%

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2018 Q1 Breakdown by Product
Telecom Infrastructure
WiFi clients
15~20%
15~20%
Cloud foundry
6~10%
15~20%
40~45% AP / Router
Integrated Products
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Future Outlook and New Technology

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Strategy

Core business model ( CM,OEM,ODM)

Internet Of Things

• Increase production lines utilization rate

• Seize opportunity to increase revenue

• Focus on the product of Telecom infrastructure Ex: LTE CPE, small cell, Pre-5G product

• Cooperate with SI or ISP on LPWAN market

• Provide total solution of Wifi service platform • Focus on AIoT market and related product EX: Vita, AI module, Sensor kit

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5G Strategy
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• 5G NR (New Radio), Release 15 commercial schedule is in Q2 2019

• Before 2019, Pre 5G or Non standard (NSTD) 5G is the contingent approach priori to 3GPP standard release (Rel. 15 and higher)

• Gemtek 5G road map are based both on NSTD 5G in 2018 and full 5G NR release in 2019 and 2020 (IMT2020)

• Gemtek 5G product development road map are focusing on small cell, CPE and Celluar IOT modules

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Meet Gemtek ViTA AI Controller
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Voice Service Giga+ Connectivity Full Wi-Fi Coverage Cloud Service Background Scan IoT Service Local Analytics

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IoT Vision – Gemtek Smart World

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Market Trend and Product Introduction

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Product Introduction
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Telecom Infrastructure

Integrated products

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AP/Router Cloud
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Gemtek LTE Small Cell Family

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LTE Single mode LTE Single mode
Residential Small Cell LTE Single mode Outdoor Small Cell
In production in 2017 (Pre 5G in 2018)
l ~16 or ~32 simultaneous calls l ~64 or ~128 simultaneous calls
l Band: FDD/TDD l Band: FDD, TDD includes CBRS and
5G New Radio (3.5GHz, Sub 6G, and 28GHz)
l MIMO and SON, all in one with EPC and
HSS
Enterprise Small Cell
In production in 2017
l ~ 32 or ~64 simultaneous calls
l Band: FDD, TDD
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Wireless Broadband Network

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Gemtek LTE Xcell System

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Product Introduction
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Telecom Integrated Infrastructure products AP/Router Cloud

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Fixed Line Broadband

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Main
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Telecom Integrated Infrastructure products AP/Router Cloud

Telecom Infrastructure

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Whole-Home WiFi
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Gemtek Full Coverage Seamless Connection System incorporates the most advanced Wi-Fi connection technology to establish highreliability and multi-connection features.

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Main
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Telecom Integrated Infrastructure products AP/Router Cloud

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Gemtek IoT Solutions Comparison
WLAN LPWAN
Category
Short range communication Low data transmission
IoT Solution
• •
Well established standards Emerging PHY solutions
• •
Better for: Better for:
• •
Mobile devices Long range
• •
In-home Long battery life
Pros & Cons
• •
Short range Low cost
• •
Poor for: Poor for:
• Battery life • Low data rate
•
Long range
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Gemtek Smart Home Butler & Sensors
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SOS Button

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Thermal Sensor

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PIR Sensor
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IR Sensor

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Vita EYE

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Door Sensor

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AI Cloud

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IoT End-to-End Solution

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IoT
Module Device Concentrators System
Platform
Cat 1 Car Tracker
Cat M1/NB1 Module Cat M1/NB1 Car Tracker
LoRa Femto
Cat M1/NB1 Gateway
Personal/Asset Tracker
RPMA Module
LoRa Cattle Tracker
LoRa Outdoor
LoRa GL6509 Module Gateway
LoRa Manhole Sensor
Market LTE Enterprise Small
Place Cell
LoRa SiP Module
Vita AI Controller
Mining
Sensors Gateway
General Purpose Cloud &
Nodes Small Cell
Analysis
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State of Operation and 2018 Outlook
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l Revenue and Margin Challenge Ø The shortage and price hike of components.

• l 2018 outlook Ø Cooperating with worldwide tier 1 operators, increasing telco market share.

• Ø Launching Pre-5G related products. Ø 5G main focus: Small cell , CPE and Celluar IoT modules.

• Ø Focus on high value-added market.

  • AI Voice controller and sensors

  • LPWAN vertical market

  • Celluar IoT product

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THANK YOU

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Q & A

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