LOTES — Annual Report 2017

Jan 31, 2018

Confidential

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1

Milestone

1986.8	LOTES funded
1993.1	LOTES Guangzhou established
2004.5	LOTES Suzhou established
2007.12	LOTES been listed TWSE
2010.9	LOTES Hengnan established
2010.8	LOTES got the certification of ISO/TS 16949
2011.9	LINTES funded

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Geographic profile (2/2)

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Suzhou

• Established in 2004

• Function: Product Design, Tooling, Molding, Stamping, e-plating and Assembly

• Hangman

• • Established: 2010

• Function: Tooling Center, Cable Assembly

• Established: 1993 Guangzhou

• • Function: R&D, Tooling, Molding, Stamping, electro-plating and Assembly

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LINTES
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• Established in 2011

• Product: Thunderbolt, Type C, High speed cable, Active Optical Cable

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LOTES
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• Established: 1986

• • Function: R&D, Sales, Finance

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LOTES’ Competitiveness

✓ LOTES is specializing in design and manufacture of inter-connection solutions including sockets, connectors, wire hardness, and cables.

✓ Main officially qualified CPU sockets supplier in the world.

✓ Fully integrated processes in house including design, tooling, molding, stamping, electro-plating and automation assembly.

• ✓ LOTES owned over 2500 patents applied worldwide.

• ✓ Three LOTES self-owned tooling workshops render flexibility to go with customized demands.

• ✓ With ISO17025 certification, Lotes reliability test lab capable of providing industry standards test reports and also meeting customers’ test requirements.

• ✓ Certified with ISO 9001, TS 16949, ISO 13486, AS 9100, ISO 14001, OHSAS 18001, QC 080000, ISO 14064.

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Tooling & Automation

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Features of R605B1

Similar to human arm

Suitable for small parts assembly Design for tight spaces

Max arm stretch: 610mm Easy to operate

Easy to integrate with RordVision(LOTES’ AOI sys.)

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Stamping Die Injection Mold
100% design and
fabricate in house
Assembly Jigs Automation
Machines
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• Precision cumulative tolerance for stamping die can reach 0.01mm and injection mold 0.02mm

• Modularized assembly equipment enabling quick switch of production line for different types of product series.

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LINTES’ capabilities

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Customize
Socket
Design 4mil 3m il 8mil 6.9mil Micro Lens Design
High Speed Socket Precision Micro Lens Fiber
Design Capability design capability
(Collimated beam
PIN (VCSEL)
inside the lens)
Chip to Chip Link
High Speed Cable
(Optical / Electrical /
Active / Passive)
Active Copper Cable
Precision Die/Wire Electrical/Optical
bond capability Cable HVM
Precision Package Assembly Accessory Design Active Optical Cable
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LOTES

FINANCIAL DATA

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Income Statement

Million NTD

	2013	2014	2015	2016	2017 Q1～Q3
Revenue	8,062	8,304	8,197	8,863	7,493
Gross profit	2,490	2,834	2,765	2,817	2,460
Operating profit	883	1,104	780	728	937
Net Profit	725	1,078	796	690	769
EPS(NT$)	7.76	11.53	8.52	7.38	8.23
DPS (NT$)	3.5	5.5	4.5	4	�
Payout R(%)	45.10%	47.70%	52.82%	54.20%	�
Gross Margin(%)	30.89%	34.13%	33.73%	31.79%	32.83%
Operating Margin(%)	10.95%	13.30%	9.52%	8.21%	12.49%
Net Margin(%)	8.99%	12.98%	9.71%	7.79%	10.26%
EBITDA(NT$/Share)	13.38	17.84	14.99	13.55	-
ROE(%)	11.30%	14.87%	10.00%	8.67%	-

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Balance Sheet

Million NTD

	2013	2014	2015	2016	2017.09.30
Total Assets	10,035	10,500	10,857	10,478	11,365
Cash	1,006	1,396	2,041	1,465	1,367
Accounts receivable	3,272	3,015	3,263	3,736	3,954
Inventories	1,156	1,192	1,277	1,557	1,742
Property, plant and equipment	1,930	2,272	2,193	2,528	2,845
Total liabilities	3,273	2,664	2,769	2,503	3,173
Short-term borrowings	1,058	591	416	108	445
Accounts payable	1,373	1,213	1,352	1,447	1,611
Total equity	6,713	7,776	8,039	7,897	8,106
Share capital	935	935	935	935	935
Capital surplus	2,352	2,362	2,366	2,383	2,383
Retained earnings	3,311	4,060	4,346	4,616	5,011
Current Ratio(%)	238.83%	297.40%	281.06%	287.80%
Debt Asset ratio(%)	32.61%	25.36%	25.50%	23.38%
Average AR turnover days	148	138	140	144
Average Inventory turnover days	75	84	91	97
Average AP turnover days	83	87	87	85

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THANK YOU

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APPENDIX

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Worldwide Device Shipments

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500
375
250
125
0
2016 2017 2018 2019
Ultramobiles (Basic and Udlity)
Ultramobiles (Premium)
Tradidonal PCs (Desk-Based and Notebook)
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Device Type	2016	2017	2018	2019
Traditional PCs
(Desk-Based and Notebook)	220	204	195	188
Ultramobiles (Premium)	50	59	70	81
Total PC Market	270	263	265	269
Ultramobiles (Basic and Utility)	169	162	161	160
Computing Device Market	439	425	426	429
Mobile Phones	1,893	1,882	1,926	1,932
Total Device Market	2,332	2,307	2,352	2,361

Source : Gartner Says Worldwide Device Shipments Will Increase 2 Percent in 2018, Reaching Highest Year-Over-Year Growth Since 2015, 2017/10/17

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Server Market Outlook

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Mn units
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Source: MIC

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