Getac — Investor Presentation 2020

May 26, 2020

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Investor Conference Getac Technology Corporation Q1’20 Business Report

Getac Technology Corporation

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Investor Presentation

Disclaimer

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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Business Update

James Hwang Chairman

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About Getac

Basic Information

Founded in 1989 IPO in 2002 (TWSE:3005)

Worldwide Employee numbers: 9,141 Capital : NT$ 5.8B 2019 Consolidated Revenue: NT$ 27billion

Manufacturing Locations

Rugged Computers Taipei, Taiwan(1) Kunshan, China(1) Combo Mechanical Kunshan, China(2) Hanoi, Vietnam(1) Automotive Parts Chengshu, China(1) Hanoi, Vietnam(1)

Sustainability Performance

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2019 TCSA Corporate Sustainability Report Awards-Gold Award"

HR Asia Award : The Best Companies to Work for in Asia, Taiwan Edition.

FTSE TWSE Taiwan Dividend+ Index

&

Taiwan High Compensation 100 Index

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Investor Presentation

Business Coverage

Rugged Computing Solutions

Combo Mechanical Products

Automotive Mechanical Products

Aerospace Fasteners (TWSE:3004) 39%

Mobile Rugged Computing Solution Brand

RHCM Production Process Leading Manufacturer

Large Share Of WW Spindle/Spool Shipment Qty.

Certified Aerospace Fasteners Manufacturers In Asia Pacific Region.

Rugged Computing Solutions

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Getac Video

Solution

Plastic Injection Composite Materials (Fiber glass/Carbon fiber/others)

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Die-Casting Metal Parts (ADAS & New Energy Vehicle Related Application)

Bolt and nuts for airplane engine

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*Some product photos are blurred

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Revenue Distribution b Products y

Last Five Quarters Revenue Distribution

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System Products

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Combo Mechanical Automotive Aerospace Products Mechanical Products Fasteners

Mechanical Products= Combo mechanical products + Automotive mechanical products

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11%
10% 10%
11% 12%
43%
46%
43%
45%
43%
47% 47%
43%
46%
43%
19Q1 19Q2 19Q3 19Q4 20Q1
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Business Update

• Affected by the COVID-19 pandemic, Getac’s factories in China cooperated with the local government’s regulation to extend the Lunar Chinese New Year Holiday, so the sales in first quarter was hit by the resumption rate and failed to supply normally. Consolidated revenue in Q1 declined slightly by 1.5% from the same period last year.

• The supply chain resumed normal supply in the second quarter, but the epidemic in Europe and the United States and other countries intensified. Demand for some product lines slowed due to weak economic activity, but also brought new business opportunities to boost revenue growth in the second quarter. Overall, we will still see some growth in the first half of 2020 compared to same period last year.

• The COVID-19 pandemic severely impacted automotive industry. In quarter one, automobile original makers, OEMs and tier one parts suppliers in the United States, Europe, and Asia shut down their factories and required suppliers to stop shipping, resulting in a decline in revenue for Getac ‘s automotive component business.

Investor Presentation 7

Financial Update

Irene Sun/ IR Manager

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Q1’20 Consolidated Income Statement

Unit: NT$Million

	2019 2020
Item \ Year	Q1 Q4 Q1	QoQ(%) YoY (%)
Operating Revenue	5,684 7,028 5,599	-20.3% -1.5%
Gross Profit	1,477 2,105 1,451	-31.1% -1.8%
(%)	25.99% 29.95% 25.91%
Operating Expense	(1,044) (1,326) (1,093)	-17.6% 4.7%
(%)	-18.37% -18.87% -19.52%
OperatingProfit	450 791 373	-52.8% -17.1%
(%)	7.92% 11.25% 6.66%
Non-operatingIncome	21 42 16	-61.9% -23.8%
Profit before income tax	471 832 389	-53.2% -17.4%
Income tax expense	(89) (77) (69)	-10.4% -22.5%
Comprehensive income, attributable to owners of parent	333 701 276	-60.7% -17.2%
EPS(NT$)	0.57 1.21 0.47	-61.2% -17.5%

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Financial Performance Of Last Five Quarters

Consolidated Revenue

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[7,206M ]
7,035M 7,028M
5,684M
5,599M
19Q1 19Q2 19Q3 19Q4 20Q1
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Consolidated Operating Profit

862M 873M 791M 450M 373M 19Q1 19Q2 19Q3 19Q4 20Q1

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Financial Performance Of Last Five Quarters

Gross Margin(%) Operating Margin(%)

29.95% 28.84% 28.17% 12.25% 12.11% 11.25% 25.99% 25.91% 7.92% 6.66% 19Q1 19Q2 19Q3 19Q4 20Q1 19Q1 19Q2 19Q3 19Q4 20Q1

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Unit: NT$ millions

Q1’20 Balance Sheet

Item	2019.03.31	2019.12.31	2020.03.31
Cash And Cash Equivalents (Incl. Bank Deposit Over Three Months)	5,830	6,516	7,491
Accounts Receivable-net	4,985	6,360	5,206
Inventories-net	4,621	5,141	5,194
Financial Assets Measured At Fair Value Through Other Comprehensive Income	581	652	630
Investments Accounted For Under The Equity Method	1,219	936	886
Property, Plant And Equipment – Net	7,343	7,252	7,390
TOTAL ASSETS	27,938	30,608	30,259
Short-term Borrowings	194	558	1,085
Long-term Borrowings (include current portion)	2,029	2,073	2,126
Accounts payable	3,225	4,459	4,042
TOTAL LIABILITIES	10,910	13,935	15,047
TOTAL EQUITY	17,028	16,673	15,212

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Q1’20 O erational Efficienc p y

Unit: Days	Unit: Days
	2019.03.31 2019.12.31 2020.03.31
Account Receivable Turnover Days	83 79 94
Inventory Turnover Days	123 113 138
Account Payable Turnover Days	81 82 94
Cash Conversion Days	125 110 138

Investor Presentation

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Stable Profit and Pa -out Ratio y

NT$: million

Item 2017 2018 2019	2020Q1
Consolidated Revenue 22,197 24,694 26,953	5,599
Operating Profit 2,513 2,652 2,976	373
Profit (Loss) Attributable To: Owners Of The Parent 1,910 2,212 2,129	320
Eps(Nt$) 3.38 3.83 3.67	0.47
Cash Dividend(Nt$) 2.5 3 2.8	N.A
Pay Out Ratio(%) 74% 78% 76%	N.A

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Q & A

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Appendix: Condensed Income Statement

NT$: million

	2019 2020
Item\Year	Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD
Operating Revenue 5,684 7,035 7,206 7,028 26,953 5,599
Gross Profit 1,477 2,029 2,030 2,105 7,641 1,451
(%) 25.99% 28.84% 28.17% 29.95% 28.35% 25.91%
Operating Expense (1,044) (1,180) (1,167) (1,326) (4,717) (1,093)
(%) -18.37% -16.77% -16.19% -18.87% -17.50% -19.52%
Operating Profit 450 862 873 791 2,976 373
(%) 7.92% 12.25% 12.11% 11.25% 11.04% 6.66%
Non-operating Income 21 (66) (25) 42 (28) 16
Profit Before Income Tax 471 796 848 832 2,947 389
Income Tax Expense (89) (222) (189) (77) (577) (69)
Comprehensive Income, Attributable To Owners Of Parent 333 504 591 701 2,129 276
Eps (NT$) 0.57 0.87 1.02 1.21 3.67 0.47

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Thank You

Investor Presentation

Investor Relations Irene Sun Investor Relations Manager +886-2-27857888#5124 irene.sun@getac.com