STARK — Interim / Quarterly Report 2018

Dec 10, 2018

Stark Technology Inc.

2018 Investor Conference

Safe Harbor Notice

There are variety of factors which may influence statements or contents been drafted within this presentation, therefore we strongly recommend audience to refer to the information on published MOPS website in case has been any adjustment made.

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STI General Information

• Founded in 1993, public traded in 2001

• 490+ Employees

• The largest domestic system integrator in Taiwan

• One of Taiwan’s top 500 service enterprises company.

• Rated as Taiwan’s top 6% - 20% company over the 4[th] Corporate Governance Evaluation

• Dedication to service and maintain 1,600+ majority of the 2,000+ company enterprise business

• Providing more than 40 products & solutions to service our customers

• Our vision is to assist our customers to become a

• Information Service Provider

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STI Service Network

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Sales Operation – by Industries

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We’ve been worked and working on:

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Cloud Services & Data Analytics
Infrastructure
internet
Enterprises Enterprise/PC
Factories
Travel Cloud
Big Data & Cable
Medical Enterprise Apps Computing Broadband
Cloud Cloud Home/PC
Data Integration
SmartTV
Deep Learning
Buyers, Analytics Mobile APP
3G/LTE
Sponsors FSI Cloud
(Fintech, Blockchain) WiFi
IoT
Factory
Automation
Smart Mobile
Industry 4.0 LoRa
Developers, NB-IoT
Content Providers,
IoT Devices
Consumers
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、 、 Inter-connect : Telecomm Broadcast/Cable Internet 、 、 、 Multi-Screens : PC NB/Pad Smartphone SmartTV

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Information Technologies

Portal Personalization Content Mgmt Single sign-on

eCommerce Travel Medical Gov’t Enterprise Apps Professional OSS, VAS High Freq. Trade ERP,CRM,SCM Services Probe/CEM by Trade IoT MES, PLM AML (Environmental Monitoring) MFG Telco FSI Vertical Apps. Consulting Design EAI@SOA Middleware Data Integration@BI Deployment Integration Data Mgmt. Security

System & Platform Resource Mgmt (CPU/GPU/VM/Container/Bare Metal) Networking Platform Load Balancing Network Mgmt

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Tel-Communication Technologies

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OTN/ROADM/OXC
Backbone
OXC
DWDM
NG-SDH/PTN Ring
STM-16/64
STM-1
SDH Mux Carrier-Ethernet
ATM switch
Core/Regional
Gigabit Ethernet
Ring
TDM FTTx, x-PON xDSL Metro-Ethernet Metro./Access
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Products & Solutions

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Software Development Tools
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Info. Security
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Resource MGMT.
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Data MGMT.
Open Systems
Telcomm.
STI Professional Service
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Balance Sheet Overview (Consolidated)

Units:NT$ thousand

	2018/9/30	2018/9/30	2017/9/30	2017/9/30	2016/9/30	2016/9/30
	AMT	%	AMT	%	AMT	%
Cash and cash equivalents	1,261,214	28%	1,280,314	31%	1,653,273	36%
Accounts receivable (including contract assets)	777,954	17%	1,220,432	30%	1,329,861	29%
Inventories	1,370,863	31%	599,350	15%	753,234	16%
Property,Plant and equipment	462,858	10%	450,690	11%	372,468	8%
Total Assets	4,476,561	100%	4,128,385	100%	4,646,974	100%
Current Liabilities	1,897,699	42%	1,638,692	40%	1,937,168	42%
Equity	2,526,294	57%	2,454,749	59%	2,682,241	58%

Source: Market Observation Post System

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Income Statements Overview (Consolidated)

Units: NT$ thousand

	2018/9/30	2018/9/30	2017/9/30	2017/9/30		2016/9/30	2016/9/30
Item	AMT	%	AMT	%	YOY	AMT	%
Revenues	3,342,424	100%	3,148,151	1	6%	2,981,489	100%
Gross profit	977,465	29%	795,477	0.25	23%	798,212	27%
Operating expense	624,359	19%	540,808	0.17	15%	552,481	19%
Operating income	353,106	10%	254,669	0.08	39%	245,731	8%
Other income	22,722	1%	20,716	0.01	10%	26,119	1%
Pre-tax income	375,828	11%	275,385	0.09	36%	271,850	9%
Net income	283,116	8%	233,349	0.07	21%	232,801	8%
EPS(NT$)	2.66		1.88			1.75

Source: Market Observation Post System

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Sales Revenue & Net Income

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Units:NT$
Sales Revenue
thousand Net Income Units:NT$
4,500,000 4,201,110 4,222,518 310,000 thousand
305,667
4,000,000
305,000
3,342,424
3,500,000 299,699
300,000
3,000,000
295,000
2,500,000
290,000
2,000,000
285,000 283,116
1,500,000
1,000,000 280,000
500,000 275,000
0 270,000
2018Q3 2017 2016 2018Q3 2017 2016
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EPS & Capital

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EPS Capital Units:NT$
thousand
Units:NT$
2.70 2.66 1,400,000 1,329,504
2.60 2.56 1,200,000 1,063,603 1,063,603
2.50 1,000,000
2.40 800,000
2.30 2.25 600,000
2.20 400,000
2.10 200,000
2.00 0
2018Q3 2017 2016
2018Q3 2017 2016
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Record date of the capital reduction :2017/07/01,ratio:20%, common shares after the capital reduction:1,063,603

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Sales Revenues by Type

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2018Q3
2017
Storage PC
19% System Platform & 1% Storage PC
Application Server 17% System Platform & 1%
14% Peripheral Application Server
Other Other
5% 15%
1% 1%
Peripheral
7%
Enterprise Network
Consulting/Mainte 21% Consulting/Mainte Enterprise Network
nance nance 20%
32% 31%
Application
Application
Software
Software
7%
8%
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Revenue:33.42billion

Revenue:42.01billion

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Q & A Thank you!!