SOLOMON — Investor Presentation 2021

Aug 31, 2021

Solomon Technology Corporation Investor Presentation 2021

August 31, 2021

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For

President Securities Corporation Q3 Investment Outlook Forum

Disclaimer

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The following presentation and its associated contents contain forward-looking statements regarding operational strategy, financial results and business forecasts, which are based on internal information of the Company and observations of the overall external environment.

Forward-looking statements should not be understood or construed as guarantees of future performance, as such projections involve factors including but not limited to market demand, price fluctuations, competitive situation, global economic activity, foreign exchange rates, and other uncertainties beyond the control of the Company that may cause actual results to differ. Information presented herein are based upon the Company’s assumptions of the future outlook to date, and are not representative, explicit or implicit, of correctness, completeness or reliability. Should there be subsequent changes in circumstances, the Company does not assume any responsibility to update or review forward-looking statements. The contents of this presentation should not be copied, edited, revised, shared or repurposed in any without the or consent of the way knowledge Company.

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Agenda

※ Company Profile

※ Financial Results

※ Outlook & Strategy

• ※ Q&A

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Agenda

※ Company Profile

• ※ Financial Results ※ Outlook & Strategy ※ Q&A

Company Profile

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Established: 1990

Publicly Listed: 1996 (TWSE 2359) Capital: NT$1.715 billion

Core Businesses: Machine Vision, IoT, Robotics, Automation, Energy Equipment, Optoelectronics

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GoldTek Taiwan
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Solomon Taipei HQ

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● Los Angeles (USA)

Global Network

Northern China

• Beijing

Southwestern China

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Eastern China

● Shanghai

● Suzhou

●

●

Southeast Asia

• Hanoi (Vietnam)

●●

● ● ● ●

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●
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Taiwan

• Taipei (HQ)

• Hsinchu

• Taichung

• Kaohsiung

• Bangkok (Thailand)

• Singapore

Southern China

• Shenzhen

• Hong Kong

• Dongguan

• Xiamen

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Solomon Group Core Structure

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Smart Automation Power Generation
AI & 3D Vision Fuel equipment
Robotics Gas generation
IoT Power quality
Automation Solomon Energy Tech Corp
Optoelectronics
Electronics
Manufacturing
Optoelectronics
Goldentek Display Corp.
Components
Solomon Data International
Corp.(formerly Data
International)
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Agenda

※ Company Profile

※ Financial Results ※ Outlook & Strategy ※ Q&A

Financial Results - Consolidated Revenue

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Unit: NT$ 100 million
45.00
39.49
40.00 37.37
35.27
35.00
30.00
25.00
19.10
20.00
16.44
15.00
10.00
5.00
0.00
2018 2019 2020 2020 H1 2021 H1
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Financial Results - Sales Breakdown (by BU)

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2021 Q1-Q2 2020
2% 4%
10%
14%
30%
26%
29%
28%
26%
31%
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Automation

Electronics

Energy & Power

Optoelectronics

Others

Financial Results - Consolidated Income Statement

Unit: NT$'000

主要科目 Particulars	2021年Q1-Q2	2021年Q1-Q2	2020年Q1-Q2	2020年Q1-Q2	與去年同期比較 % YoY	2020年度 2020	2020年度 2020
	$	%	$	%		$	%
Revenue	1,909,528	100.00	1,644,112	100.00	16.14	3,527,149	0.00
Grossprofit	392,653	20.56	367,311	22.34	0.07	746,144	21.15
Operating expenses	(366,410)	(19.19)	(340,606)	(20.72)	0.08	(699,206)	(19.82)
Operating income	26,243	1.37	26,705	1.62	(0.02)	46,938	1.33
Interest income	33,458	1.75	16,922	1.03	0.98	39,033	1.11
Other income	31,786	1.66	49,036	2.98	(0.35)	86,329	2.45
Finance costs	(3,933)	(0.21)	(566)	(0.03)	5.95	(2,061)	(0.06)
Othergains and losses	61,041	3.20	(4,003)	(0.24)	16.25	(86,742)	(2.46)
Share of profit accounted for using equity method	2,342	0.12	421	0.03	4.56	448	0.01
Total non-operating income and expenses	124,694	7.58	61,810	3.76	1.02	37,007	1.05
Earnings before tax	150,937	7.90	88,515	5.38	0.71	83,945	2.38
Income tax	(15,962)	(0.84)	(30,046)	(1.83)	(0.47)	(53,555)	(1.52)
Net income	134,975	7.07	58,469	3.56	1.31	30,390	0.86
Profit (loss),attributable to owners ofparent	128,778	6.74	53,003	3.22	1.43	20,318	0.58
EPS(NT$)	0.75		0.31		1.42	0.12

Financial Results - Consolidated Balance Sheet

Unit: NT$ ‘000

Particulars	June 30, 2021	June 30, 2021	December 31, 2020	December 31, 2020	June 30, 2020	June 30, 2020
	$	%	$	%	$	%
Cash and cash equivalents	1,202,915	16.54	1,283,105	19.80	1,565,940	25.19
Financial assets	962,524	13.23	1,211,161	18.68	1,156,574	18.61
Accounts & notes receivable	870,124	11.96	693,053	10.69	760,229	12.23
Inventory	950,064	13.06	714,357	11.02	714,497	11.50
Other current assets	311,922	4.29	447,069	6.90	233,948	3.76
Financial assets at amortized cost	1,253,700	17.24	328,570	5.07	-	-
Property, plant & equipment	498,566	6.86	505,680	7.80	519,691	8.36
Investmentproperty (net)	846,356	11.64	952,520	14.69	945,642	15.21
Other non-current assets	376,501	5.18	346,922	5.35	318,782	5.14
Total assets	7,272,672	100.00	6,482,437	100.00	6,215,303	100.00
Short term loans	1,142,852	15.71	397,377	6.13	-	-
Contract liabilities(current)	449,327	6.18	369,932	5.71	386,756	6.22
Accountspayable	412,710	5.68	505,537	7.80	493,164	7.93
Otherpayables	240,435	3.31	181,154	2.80	305,089	4.91
Other current liabilites	91,079	1.25	94,301	1.45	91,413	1.47
Other liabilites	51,873	0.71	64,982	1.00	72,769	1.17
Total liabilities	2,388,276	32.84	1,613,283	24.89	1,349,191	21.71
Total equity	4,884,396	67.16	4,869,154	75.11	4,866,112	78.29
Total liabilities & equity	7,272,672	100.00	6,482,437	100.00	6,215,303	100.00
FInancial indicators
Current ratio	184%		281%		347%
Debt/asset ratio	33%		25%		22%
Debt/equity ratio	49%		33%		28%

Financial Results - EPS & Dividend Policy

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2.5
2.15
2 1.86
1.65
1.5
1.1
1 1 1
0.95
1
0.8
0.75
0.5
0.5 0.34
0.12
0
2015 2016 2017 2018 2019 2020 2021 H1
EPS Dividend
EPS(元/股) 股利(元/股)
(NT$/share) (NT$/share)
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Agenda

※ Company Profile ※ Financial Results

※ Outlook & Strategy

• ※ Q&A

Outlook & Strategy - Orders on Hand

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Unit: NT$ 100 million
45.00
39.41
40.00
Growth
35.00
59%
30.00
24.75
25.00
19.88
18.75
20.00
15.00 13.05
10.00
5.00
0.00
2017 2018 2019 2020 2021.7
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Outlook & Strategy - Energy Equipment

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Product Application
As the demand for energy equipment increases
1. Diesel generators
in response to the growth of electronic products
Old
2. Gas generators consumption, 5G construction, green power,
products
3. D-UPS and gas-fired powered plants, we see business
4. Busway opportunities in the following sectors:
Agent
1. S-UPS 1.Technology industry
Semiconductors, LCD panels, PCBs
2. DC charging systems
New
3. Smart cabinets
products 2. Public infrastructure
4. Energy storage
MRT, power factories, post offices
equipment
5. SolarEdge
3. Green energy
Solar power
Own
1. Diesel generators
Brands 4. Construction industry
High end offices, logistics hubs
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Outlook & Strategy - AI & 3D Vision

3D Robotic Vision Software (For manufacturing and logistics)

Leading choice of large 02 MNCs

Continue to win new MNC customers

03

Continuous innovation to sustain product leadership

01

Outlook & Strategy - AI & 3D Vision

Inspect defects unrecognizable to rule-based vision systems

AI Inspection Software

• Significantly reduce overkill rates of AOI systems

• ▪ No need to customize; no need to program

Superior recognition & ease-of-use vs. leading American brand

Taiwan customers - semiconductor OSAT, LED, AOI equipment

Overseas customers - food, footwear

Accolades

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Agenda

※ Company Profile ※ Financial Results ※ Outlook & Strategy

※ Q&A

Thank You