MHC — Investor Presentation 2016

Nov 28, 2016

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Investor Conference November 28, 2016

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 forwardlooking 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.

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Agenda
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Company Today By Billy Ho President

Financials By Doris Huang, VP of Finance Q&A

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About
MiTAC
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Background MiTAC Holdings Corporation (3706), through a 100% stock swap from MiTAC International Corp. , was established on September 12, 2013 Year of Establishment MiTAC International Corp. was established in 1982 Capital NT$ 8.1 Billion Worldwide Employees 7000+ Brands

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Computing Brand SoLoMo Brand
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MiTAC Today

Cloud Computing Business Group

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Cloud Infrastructure- Backbone
& Cloud Computing
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� Data Center (IDC, HPDC)
� High Performance Computing
� Industrial Computing
B2B
ODM, JDM, OEM, OPM
TYAN Brand
� Servers (HPC / GPGPU,
Hyperscale, Enterprise )
� Storage (Storage Server,
Cloud Storage)
� Security Appliance
� POS (Mobile, Retailer)
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Mobile Communications Business Group

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Connected Edge Service & Smart Devices
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� Safe & Monitoring
� Healthcare & Wellness
� Off-road SaaS
B2B / B2C
Mio, Magellan, Navman
Brands
� Dash Cam
� Smart Home
� Heart Rate & Sports
Wellness and Healthcare
� Off-road Navigation
System
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� Connected Auto
� Fleet Management
(Fleet Service Provider,
Car Rental)
� Drive Recorder
B2B
ODM, OEM, OPM
Magellan Brand
� Connected IVI (SaaS)
� MRM / RTR™ / HOS /
Platform (PaaS)
� Integrated Drive Recorder
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Cloud Infrastructure - Backbone & Cloud Computing

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Value Position

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Strong Brand
Cross-Platform
and ODM/OPM
Design
Experience
Industry Focus
Design and
Product Offering
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Advanced Design With Proven Record

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High-density compute CPU / GPU hybrid Cold storage server JBOD storage Network load balancer
Cache server workload High-Performance High-density storage Anti-virus,
NVMe storage server Anti-SPAM
Rack mount server End customers
-
Commercial bank End customers End customers
End customers
End customers - -
Academic Private cloud - Leading server brand
- - Leading network
- IaaS provider - Mobile cloud service - Hybrid cloud - Hyperscale DC appliance brands
Private cloud - -
Labs Mobile cloud service
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-
-
Semiconductor
Network DC
CAD / CAE / CAM
-
Social media DC
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Growth Engine

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AI and
Deep-Learning Advanced
Variety of
Engineering
Platform
Video Streaming Service
Services
Growth of
MiTAC
Private Cloud
Cloud Centric
Design for
HPC
Business Hyper Scale
Development of GP GPU
Datacenter
Cloud Service
Popularity of Smart
Devices Partner with Flexible Supply
Regional System for Dynamic
Increase of Integrator Demand
Network Speed
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Connected Edge Service & Smart Devices

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Growing Business
Dash Cam
Off-Road GPS Navigation
GPS Navigation
B2B2C
Connected Car
Fleet Management
Dash Cam
Off-Highway Vehicle
Smart Home
Heart Rate Wearables
B2B
B2C
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MiTAC Connected Auto

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Hours of Service Return To Route
(HOS) (RTR)
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Tethered Navigation
Off-Road Navigation
Off-Board Navigation
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Smart Devices and IoT Service

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Connected Things
Connected City
Car Tablet /
Connected AVN
Telematics Box
Heart Rate & Sports Dash Cam Smart Home
Wellness and
Healthcare
CE0044 Personal
Smart IP
Cloud
Home Camera
Gateway
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Growth on Professional Service

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Telematics Box
Dealer Options
Smart Connect
Cam
Triaxial
High Definition GPS Audio 3G or Wi-Fi
Acceleromete
Video Location Recording Connectivity
r
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Financials

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2016 Q1~Q3 Products Profile (Consolidate)

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MIC CM /
Product Amount %
MBU Others
MCT 28,025 83.9%
12.4% 3.7%
MIC MBU 4,140 12.4% MCT
83.9%
CM / Others 1,240 3.7%
TTL 33,405 100%
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NT: Million

MCT (Cloud Computing Business Group ) MIC MBU (Mobile Communications Business Group) CM/Others :Contract Manufacture, Service, Spare

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Revenue & Gross Profit

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Gross Profit
Revenue
60,000 10,000 16.00%
9,000
14.00%
50,000
50,055 8,000
12.00%
7,000
40,000 42,060
10.00%
6,000
30,000 33,405 5,000 5,704 5,584 8.00%
4,000
4,114 6.00%
20,000
3,000
4.00%
2,000
10,000
2.00%
1,000
0
0 0.00%
2014 2015 20163Q YTD 2014 2015 2016Q3 YTD
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Income Statement

Income Statement	Income Statement	Income Statement	Income Statement	Income Statement	Income Statement
Unit: NT$M It 2014 2015 20163 YTD
	It	2014	2015	20163 YTD
	em			Q
	Operating Revenues	42,060	50,055	33,405
	Gross profit	5,704	5,584	4,114
	Gross profit %	13.56%	11.16%	12.32%
	Operating Income (Loss)	(361)	297	472
	Income Before Tax	1051	2014	1721
		,	,	,
	Net Income	761	1,754	1,580
	EPS(NTD)	1.03	2.32	2.00
	Weighted Avg. Outstanding Common Shares	742	755	792
	Dividend (NTD)	0.70	2.00
	Cash Dividend	070	160	-
. . Stock Dividend - 0.40 - Payout Ratio 68% 86%		.	.
	Stock Dividend	-	0.40	-
	Payout Ratio	68%	86%

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Balance Sheet

Unit: NT$M

Unit: NT$M	Unit: NT$M	Unit: NT$M	Unit: NT$M	Unit: NT$M	Unit: NT$M
Items 2014.12.31 2015.12.31 2016.09.30 Cash and Cash Equivalents 9,676 8,798 11,788 Current Assets 25,754 21,840 27,729 Long-term Investments 15,048 15,888 15,596
	Items	2014.12.31	2015.12.31	2016.09.30
	Cash and Cash Equivalents	9,676	8,798	11,788
	Current Assets	25,754	21,840	27,729
	Long-term Investments	15,048	15,888	15,596
	Property, Plant and Equipment	5,211	5,468	5,682
	Total Assets	48,203	45,163	51,106
	Current Liabilities	15,421	10,955	17,320
	Non-current Liabilities	631	654	611
	Share Capital	7694	7778	8132
, , , Total Equity 32,151 33,554 33,175 Total Liabilities and Stockholders' Equity 48,203 45,163 51,106		,	,	,
	Total Equity	32,151	33,554	33,175
	Total Liabilities and Stockholders' Equity	48,203	45,163	51,106

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O/I & Net Income

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Operating Income (Loss)
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400 472
200 297
0
2014 2015 2016Q3 YTD
(200)
(361)
(400)
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Net Income
2,000
1,800
1,754
1,600
1,580
1,400
1,200
1,000
800
761
600
400
200
0
2014 2015 2016Q3 YTD
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Capital Structure and Liquidity Analysis

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250%
200%
150%
100% Quick ratio %
Current Ratio %
Debt Ratio %
50%
Debt to Equity
0%
2014 2015 20163Q
Quick ratio % 118% 140% 115%
Current Ratio % 167% 199% 160%
Debt Ratio % 33% 26% 35%
Debt to Equity 50% 35% 54%
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Operating Performance Analysis

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90
80
80
70 75
71 71
65 66
60
61 62
62
50 54 53
50
40
30
20
10
0
2014 2015 20163Q
Receivables Turnover (Days) - a 62 50 53
Inventories Turnover (Days) - b 80 65 75
Payable Turnover (Days) - c 71 54 66
Cash Turnover (Days) = a+b-c 71 61 62
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Profitability Analysis

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10.00% 10.00
9.00% 9.00
8.00
8.00%
7.00
7.00%
6.00
6.00%
5.00
5.00%
4.00
4.00%
3.00
3.00%
2.00
2.00%
1.00
1.00%
0.00
2014 2015 20163Q
0.00% Asset Turnover
2014 2015 20163Q 0.91 1.07 0.92
Rate
ROE (%) 2.42% 5.33% 4.73% Fixed Assets
8.08 9.37 7.98
ROA (%) 1.71% 3.81% 3.30% Turnover Rate
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Q&A
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THANKS

Investor Conference Email: stock@mic.com.tw