MHC — Call Transcript 2020

Aug 14, 2020

MITAC HOLDINGS CORPORATION Online Earnings Conference

August 14[th] , 2020

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Safe Harbor Notice

This presentation may contain forward-looking statements. These forward-looking statements reflect the current expectations, assumptions, estimates and projections regarding the anticipated developments and other factors based upon the information now available to us. These forward-looking statements are not historical facts, nor are the guarantees of future performance and are subject to risks, uncertainties and other factors. Consequently, actual results could differ materially from those contained, expressed, implied or forecasted in these forward-looking statements. There are factors that could cause actual results to differ materially from those reflected in these forward-looking statements.

The financial information contained here within in presented in conformity International Financial Reporting Standards (IFRSs).

Except as imposed by law, we undertake no obligation to publicly revise or update these forward-looking statements, whether as a result of new information, future events or otherwise.

2

• Financials by Doris Huang, VP of Finance and Deputy Spokesperson

• Cloud and Edge Computing Business by Michael Lin, President of MCT

• Automotive and A-IoT Business by Steve Chang, President of MDT

• Q&A

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Financials

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Income Statement

Unit: NT$ Million

	Item	2015	2016	2017	2018	2019	2020 1H
	Operating Revenues	50,055	48,342	48,761	30,752	35,832	19,267
	Gross profit	5,584	5,554	5,665	4,788	5,190	2,384
	Gross profit %	11.16%	11.49%	11.62%	15.57%	14.48%	12.37%
	Operation Income (loss)	297	683	740	334	501	(13)
	Income Before Tax	2,014	3,061	2,902	3,473	3,083	1,107
	Net Income (loss)-attributable to owners of parent	1,754	2,719	2,581	3,296	2,818	1,098
	EPS(NTD)–Adj. Retrospectively	2.23	3.44	2.81	3.11	2.37	1.03
	Weighted Average Outstanding Common Shares	785	791	917	920	1,061	1,064
	Dividend (NTD)	2.0	2.5	2.8	3.0	2.20
	Cash Dividend	1.6	2.5	1.3	1.5	1.00
	Stock Dividend	0.4		1.5	1.5	1.20
	Payout Ratio 86%		73%	86%	84%	83%
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Profitability Analysis

Revenue

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NT$ Million Growth Rate %
19% 17%
60,000
1%
-3%
50,000
50,055 -37%
48,342 48,761
40,000
30,000 35,832
30,752
20,000
19,267
10,000
0
2015 2016 2017 2018 2019 20201H
Net Income
NT$M Profit Margi n % 11%
8%
3,500
6% 5% 5%
3,000
3,296
4%
2,500
2,774
2,719 2,581
2,000
1,500
1,754
1,000
500 1,031
0
2015 2016 2017 2018 2019 20201H
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Gross Profit NT$M GP% %

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15.6%
14.5%
12.4%
11.5% 11.6%
11.2%
5,584 5,554 5,665 5,190
4,788
2,384
2015 2016 2017 2018 2019 20201H
EPS
NT$ Growth %
125%
54%
11%
-18%
-24%
3.44
3.11
2.81
2.23 2.37
1.03
2015 2016 2017 2018 2019 20201H
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Balance Sheet

Unit: NT$ Million

Item	2015.12.31	2016.12.31	2017.12.31	2018.12.31	2019.12.31	2020.6.30
Cash and Cash Equivalents	8,798	7,657	8,090	5,725	6,665	4,483
Current Assets	21,840	25,553	20,499	19,034	23,189	23,456
Long-term Investments	15,888	16,565	17,974	19,904	22,132	22,504
Property, Plant and Equipment	5,468	6,031	6,698	7,155	7,811	7,785
TOTAL ASSETS	45,163	50,064	47,185	48,046	55,410	56,026
Current liabilities	10,955	14,887	11,761	9,438	14,103	14,876
Non-current liabilities	654	660	785	805	1,753	1,738
Share capital	7,778	8,156	8,190	9,368	10,773	12,066
Total equity	33,554	34,516	34,749	37,803	39,555	39,413
Total Liabilities and Stockholders'Equity	45,163	50,064	47,185	48,046	55,410	56,026

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Operating Performance Analysis

Receivables Turnover(Days)

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69
60 59 61
55
50
2015 2016 2017 2018 2019 2020.06
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Inventory Turnover (Days)

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104
99
93
65 65 64
2015 2016 2017 2018 2019 2020.06
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Payable Turnover (Days)

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75
72
67
63 62
54
2015 2016 2017 2018 2019 2020.06
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Cash Turnover (Days)

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93
89 89
61 62
57
2015 2016 2017 2018 2019 2020.06
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2020 1H Business Units (Consolidate)

BU	Amount	%
MCT	15,301	79.4%
MDT	2,367	12.3%
MIC	1,599	8.3%
Total	19,267	100%

Unit: NT$ Million

MCT (MiTAC Computing Technology Corp.) MDT (MiTAC Digital Technology Corp.) MIC (MiTAC International Corp.)

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Cloud and Edge Computing Business

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Hyperscale openEDGE/OTII HPC/GPGPU
Datacenter Platforms Platforms
High-density Servers for 5G Multi- High-performance
deployment of EIA access Edge computing, hybrid
and OCP servers Computing (MEC) workload
Typical customers Typical customers Typical customers
- - -
Variety CSPs (IaaS, 5G SPs (Telecom Finance (FinTech,
PaaS, CDN, Social Operators) Block Chain, HFT)
Media) - Edge cloud DCs - Academic
- Private cloud - CAD/CAE/CAM
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Server Network
Storage Appliance
Software-defined, Server appliances
scale-out storage built managing network
on servers traffic and security
Typical customers Typical customers
-
Variety CSPs (IaaS, - Leading networking
PaaS, CDN, Social technology brands
Media)
-
Private cloud
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Automotive and A-IoT

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Automotive

• Dashcam / PND

• ADAS

• Navigation Solution

• Outdoor Recreation

A-IoT

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• Connected Car

• Smart City

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Professionals

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• Industrial Tablet

• Industrial Handy Terminal  Fleet Management Solution  Device Management Platform

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Q & A

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Mitac IR Website: https://www.mitac.com/en-global/investors_overview/index https://www.mitac.com/en-global/quarterly_statement/index/ Quarterly Financial Statements:

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