GEMTEK — Investor Presentation 2018

Mar 12, 2018

Gemtek Company profile

March 13, 2018 Gemtek Confidential Distribution Prohibited

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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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• Established: 1988

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

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

• Capital: NT$3.2 Billion (US$109.5 Million)

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Chang Shu Plant
Plant Size: 441,600.SQF
Land Size: 1,635,520.SQF
Czech Republic
Plant Size: 102,000 SQF
Certified Sites:
KuShan Plant
ISO 9001 Plant Size: 330,000 SQF
ISO 14001 Land Area: 150,000 SQF
Hsinchu Headquarter ISO 13485
OHSAS 18001
Floor Space: 322,000 SQF TL9000
Land Area: 215,000 SQF
C-TPAT
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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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2017 JAN-SEP Financial Results

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Units: NT$ Thousands; Consolidated

	September 30 2017	September 30 2017	September 30 2016	September 30 2016
	Amount %		Amount %
Sales Revenue (k)-	10,165,661	100%	10,895,600	100%
Gross Profit(K)	1,373,724	14%	1,682,350	15%
Operating Income	102,714	1%	237,738	2%
Non-Operating income and expense	337,713	3%	253,094	3%
Net Profit After Tax (k)	400,016	4%	417,618	3%
EPS after tax	1.30		1.40

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Units: NT$ Thousands; Consolidated

Asset	September 30 2017 Amount %	September 30 2017 Amount %	Liability and Equity	September 30 2017 Amount %	September 30 2017 Amount %
**Cash Equivalents **	2,559,267	17%	Short-term borrowing	1,256,500	8%
			A/P	2,870,502	18%
A/R	3,469,581	22%
			Other Payables& Current Liabilities	1,254,590	9%
Inventory	2,038,402	13%
			Non-current Liabilities	183,183	1%
Other Current Assets	841,230	6%
			Total Liabilities	5,564,775	36%
Non-current Asset	6,584,219	42%
			Total Equity	9,927,924	64%
Total Assets	15,492,699 100%		Total Liabilities & Equity	15,492,699 100%

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2017 JAN-SEP Breakdown by Product
Telecom Infrastructure
WiFi clients
15~20%
10~15%
Cloud foundry
6~10%
15~20%
40~45% AP Routers
Integrated Products
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Future Outlook and New Technology

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• 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 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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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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 Revenue and Margin Challenge

 Inventory adjustment by clients.  The shortage and price hike of components.

 2018 outlook  Cooperating with worldwide tier 1 operators, increasing telco market share.

• Launching Pre-5G related products.

• 5G main focus: Small cell , CPE and Celluar IoT modules.

• 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