Getac — Call Transcript 2021

Aug 16, 2021

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Investor Conference Q2’21 Business Report Aug 18, 2021

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Getac Technology Corporation

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Disclaimer 議程

This presentation and release contain “forward-looking statements” which may include projections of future results of operations, financial condition or business prospects based on our own information and other sources. Getac undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

Our actual results of operations, financial condition or business prospects may differ from those expressed or implied in these forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our control.

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www.getacgroup.com

Agenda 議程

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1
2 3
Business
Financial Q&A
Update
Update
Chairman CFO
James Hwang Vicky Hsieh
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www.getacgroup.com

About Getac

Getac Consolidated Revenue Trends

NT$: billion

神基科技股份有限公司

Getac Technology Corporation

Founded in 1989

IPO in 2002

TWSE:3005

Capital: NT$ 5.9B 2020 Consolidated Revenue: NT$27.84 billion

2020 Market cap : NT$28.81 billion

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27.84
26.95
24.69
22.20
20.41
18.33
2015 2016 2017 2018 2019 2020
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www.getacgroup.com

Electronic Products

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Rugged Computing Solutions (Getac Brand)

Getac provides safe and reliable rugged computer solutions for defense, public safety, utility, transportation and logistics, manufacturing, and energy industries, helping professionals improve front-line operational efficiency and digital transformation.

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Getac Video Solution

Getac video solution integrates IoT hardware devices such as in-car video solution and body-wearable cameras, with cloud computing platform as the architecture to perform image data transmission, aggregation, storage, and intelligence analysis.

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www.getacgroup.com

Mechanical Solutions

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Combo Mechanical Products

An industry’s leading manufacture of composite materials , dedicated to the development of advanced process and surface treatment technology, combined with RHCM plastic injection and various process technology composite materials, to provide the industry's most lightweight, environmentally friendly, strong and stylish mechanical components.

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Getac has 39% Ownership
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Aerospace Fasteners TWSE:3004

Automotive Mechanical Products

IATF16949 certified manufacturer, providing OEM services for automotive light metal die-casting parts, focusing on ADAS (advanced driver assistance and new systems) energy vehicle applications. Our production volume of seatbelt spindles and spools represents around 40% of the global supply.

AS9100 and IATF16949 management system certified manufacturer, which produces fastener products for and aerospace high-end industrial applications. It is one of the few certified fastener aerospace manufacturers in the Asia-Pacific region.

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www.getacgroup.com

Manufacturing Locations

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Chengsu,China Kunshan, China Taiwan Hanoi, Vietnam

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Manufacturing Base Of Each Product Line Kunshan, China (1) Rugged Computers Xizhi, Taiwan (1) Linkou, Taiwan(1) Kunshan, China(2) Combo Mechanical Hanoi, Vietnam(1) Chengshu, China(1) Automotive Parts Hanoi, Vietnam(1)

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www.getacgroup.com

Outstanding Business Performance

Sustainability Commitment

• Consolidated revenue is growing for eight consecutive years

• James Hwang, chairman of Getac technology corporation, was selected by Harvard Business Review Chinese edition as one of the top 100 CEOs in Taiwan.

Recognized Sustainable Performance

• Getac received Taiwan corporate sustainability awards (TCSA) for both “Corporate Comprehensive Performance Award- Merit” and “Corporate Sustainability Report- Gold.

• • Getac ranked as the Top 6-20% of listed companies in the Corporate Governance Evaluation.

Selected In Corporate Social Responsibility Indexes

• TWSE corporate governance 100 index │ TWSE RAFI® Taiwan high compensation 100 index.

Certified Friendly Workplace

• Received the prestigious HR Asia award as the best companies to work for in Asia, 2018 & 2019, Taiwan edition.

Accredited As A Healthy Workplace

• Accredited as a “healthy workplace” by health promotion administration, ministry of health and welfare

• Received “The Exercise Enterprise Certification” by Sports Administration, Ministry of Education

www.getacgroup.com

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Last Five Quarters Revenue Distribution by Products

Automotive Combo Mechanical System Products Mechanical Products Products

Aerospace Fasteners

Mechanical Products= Combo mechanical products + Automotive mechanical products

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products + Automotive mechanical products
4%
8%
4% 4%
5% 5%
5%
51%
43%
42%
48%
51%
52% 53%
45%
49%
53% 45% 48%
43% 42%
20Q2 20Q3 20Q4 21Q1 21Q2 201H 211H
YTD YTD
www.getacgroup.com
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	Q2’21 Consolidated Income Statement	Q2’21 Consolidated Income Statement	Q2’21 Consolidated Income Statement	Q2’21 Consolidated Income Statement	YoY (%) 14.7% -0.6% n.m -22.8% n.m 146.8% n.m 153.2% 150.5%
		2020	2021
	Q1 Q2 1H		Q1 Q2	1H 14,912 3,705	(%)
Operating Revenue		5,599 7,399 12,998 1,451 2,278 3,729	7,243 7,669 1,749 1,956		14.7%
Gross Profit					-0.6%
(%)		25.91% 30.79% 28.69%	24.15% 25.51%	24.85%
Operating Expense		(1,093) (1,119) (2,212)	(1,193) (1,340)	(2,533)	n.m
(%)		-19.52% -15.12% -17.02%	-16.47% -17.47%	-16.99%
Operating Profit		373 1,173 1,546	568 626	1,194	-22.8%
(%)		6.66% 15.85% 11.89%	7.84% 8.16%	8.01%
Non-operating Income		16 (17) (1)	40 2,579	2,619	n.m
Profit before income tax		389 1,156 1,545	608 3,205	3,813 (898) 2,930 4.96	146.8%
Income tax expense		(69) (238) (307)	(107) (791)		n.m
Comprehensive income, attributable to owners of parent		276 881 1,157	504 2,426		153.2%
EPS (NT$)		0.47 1.51 1.98	0.85 4.10		150.5%
	www.getacgroup.com

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Consolidated Revenue

Unit: NT$M

7,753M 7,669M 7,399M 7,243M 7,087M 20Q2 20Q3 20Q4 21Q1 21Q2

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Consolidated Operating Profit Unit: NT$M

1,173M 856M 714M 626M 568M 20Q2 20Q3 20Q4 21Q1 21Q2

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www.getacgroup.com

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Gross Margin(%)

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30.79%
28.13%
26.34%
25.51%
24.15%
20Q2 20Q3 20Q4 21Q1 21Q2
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Operating Margin(%)

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15.85%
11.04%
10.07%
8.16%
7.84%
20Q2 20Q3 20Q4 21Q1 21Q2
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www.getacgroup.com

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Item	2020.06.30	2021.03.31	2021.06.30
Cash And Cash Equivalents (Incl. Bank Deposit Over Three Months)	5,298	7,323	6,964
Accounts Receivable-net	6,540	7,635	7,391
Inventories-net	5,529	5,960	6,487
Financial Assets Measured At Fair Value Through Other Comprehensive Income	690	750	715
Investments Accounted For Under The Equity Method	876	1,038	988
Property, Plant And Equipment – Net	8,327	8,527	8,503
TOTAL ASSETS	30,534	34,770	34,311
Short-term Borrowings	1,100	748	550
Long-term Borrowings (include current portion)	2,227	2,085	2,073
Accounts payable	4,730	6,303	5,824
TOTAL LIABILITIES	14,532	18,333	16,103
TOTAL EQUITY	16,002	16,437	18,208

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www.getacgroup.com

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Unit: Days

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2020.06.30 2021.03.31 2021.06.30
Account Receivable
91 96 91
Turnover Days
Inventory Turnover
126 115 118
Days
Account Payable
91 102 96
Turnover Days
Cash Conversion
126 109 113
Days
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www.getacgroup.com

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NT$: million

	2018	2019	2020	2021 1H
Consolidated Revenue	24,694	26,953	27,838	14,912
Operating Profit	2,652	2,976	3,116	1,194
Profit (Loss) Attributable To: Owners Of The Parent	2,212	2,129	2,577	2,930
Eps(Nt$)	3.83	3.67	4.40	4.96
Cash Dividend(Nt$)	3	2.8	3.6	N.A
Pay Out Ratio(%)	78%	76%	82%	N.A

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www.getacgroup.com

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Q & A

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	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021
Item\Year	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD
Operating Revenue	5,599	7,399	7,087	7,753	27,838	7,243	7,669
Gross Profit	1,451	2,278	1,867	2,181	7,777	1,749	1,956
(%)	25.91%	30.79%	26.34%	28.13%	**27.94% **	24.15%	25.51%
Operating Expense	(1,093)	(1,119)	(1,165)	(1,338)	(4,715)	(1,193)	(1,340)
(%)	**-19.52% **	**-15.12% **	**-16.44% **	**-17.26% **	**-16.94% **	-16.47%	17.47%
Operating Profit	373	1,173	714	856	3,116	568	626
(%)	6.66%	15.85%	10.07%	11.04%	11.19%	7.84%	8.16%
Non-operating Income	16	(17)	57	69	125	40	2,579
Profit Before Income Tax	389	1,156	771	925	3,241	608	3,205
Income Tax Expense	(69)	(238)	(110)	(155)	(572)	(107)	(791)
Comprehensive Income, Attributable To Owners Of Parent	276	881	656	764	2,577	504	2,426
Eps (NT$)	0.47	1.51	1.12	1.30	4.40	0.85	4.10

THANK YOU

Investor Relations Contact Irene Sun Director, Corporate Relations Office +886-2-27857888#5124 irene.sun@getac.com www.getacgroup.com

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