SYSCOM — Annual Report 2016

Mar 31, 2017

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Best System Integration Company for Business Competitiveness

2017.3.31

Disclaimer

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The presentation and discussion contain certain forward-looking statements with respect to the results of operation, financial condition and current expectation.

The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to the impact of competitive products and pricing, timely project acceptance by our customers, timely introduction of new technologies, ability to ramp new needs into products, financial stability in end markets, and other risks that Syscom can not control.

The forward-looking statements in this release reflect the current belief of Syscom as of the date of this release and Syscom undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

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Outline

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• About Syscom

• Products & Services

• Business Achievements

• Outlooks

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About Syscom

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• Established： 1975. 7. 17

• IPO： 2001. 5.22

• Employees： 956 (Feb.2017)

• Business Scope：

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• System Integration & Professional Services

• IT Consulting & Training

• Software & Hardware Sales and Service

• ▪ E-Commerce & Information Security Services

• ▪ Network & Wireless Design & Construction

• Customer Domains： Financial、Telecom、Public Sector/Defense、Healthcare、Manufacturing

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Milestones

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Develops in Grows and securities and expands to finance markets network with TANDEM systems and and peripheral OPEN systems equipment

Develops core Strengthens and Enriches industry technologies for refines software knowledge and global markets quality for upgrades smart expansion international capabilities cooperation ※ IPO in 2001

※ Founded in 1975

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Achievements and Awards

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• Passes the appraisal of “CMMIDEV v1.2 Maturity Level 5” (2011)

• “Dedicated Enterprise Cloud Hosting Services - Pracla" Given "2016 Cloud Service Award" by Industrial Development Bureau, Ministry of Economic Affairs (2016)

• The first Taiwanese company passed the appraisal of “CMMI Maturity Level 5” (2006)

• “Open Enterprise Cloud Hosting Services - OpenStack Pracla” Honored with “2016 Cloud Award”(2016)

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• Passes the certification of “ISO/ICE 27001:2005” (2006)

• • Honored with “Best Partner of Information Security” by BSI (2006)

• • Passes the certification of “ISO 9001:2000” (2003) and “ISO 9001:1994” (2000)

• Awarded with “System Integration Export Award” by Taiwan Smart City Solution Alliance (2016)

• Passes the certification of “PIMS BS 10012: 2009” (2016)

• SYSCOM DBMaker Cloud DB Given “Taiwan Excellent Product Award” (2013/2014/2015/2017)

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• IPO in 2001

• Passes the certification of “ISO 9002:1994” (1999) and “ISO 9002” (1996)

• • Honored with “Excellent Industry Technology Award” (1998)

• Wins the 2nd annual Taiwan Mittelstand Award (2014)

• Wins the first place in “Cloud Innovation Competition” held by Cloud Computing Association in Taiwan (2014)

• Awarded with “Outstanding Information Software Award" (1993)

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Partners Awards

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BMC

• Tier-1 Partner in Taiwan with comprehensive technical support capabilities

CISCO

• Gold Partner for 17 years running (1998-2016)

• Has the largest number of CCIE in Taiwan

• Honored with the first place of the Barbarian Award in the first annual (2012)

• The first CISCO dealer in Taiwan (1997)

Fortinet

• The sole Platinum Partner in Taiwan

• Has the largest number of NSE4 certified engineers in Taiwan

• The sales champion dealer in Asia Pacific region

Hewlett Packard Enterprise

• Gold Level Partner(2017)

• The first “Partner Support Program” certified dealer in Taiwan (2012) ***only three in Taiwan

Imperva

• Best Dealer Award in Taiwan

• The only dealer having Imperva DAM and WAF technical certificates (2012)

Microsoft

• Microsoft Licensing Solution Partner (MLSP)

• Given the Country Award of The Year (2012/2013)

• Honored with Advanced Infrastructure Award(2004)

Palo Alto Networks

• Gold Partner

• Has many security technical consultants

• Has the top level Palo Alto technical certificate

Radware

• Best Partner Award

TrendMicro

• TrendMicro Global Elite Partner

• Partner Rrady Service Partner

• The only Tandem mainframe dealer given the HPE Security Partner Award

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Excellence

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2014 – SYSCOM Wins the “Taiwan Mittelstand Award”

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SYSCOM Honored for Cloud Capabilities ( I )

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SYSCOM Wins 1[st] Place at the 2014 Cloud Computing Innovation Competition with its Taiwan-based Cloud Comptuing Data Center Platform

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SYSCOM Honored for Cloud Capabilities (II)

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“Enterprise Private Hosted Cloud Service

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SYSCOM Honored for Cloud Capabilities ( III )

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“Enterprise Private Hosted Cloud Service
- OpenStack Pracla” Honored with
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Professional Certifications & Expertise

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Quality Assurance Certifications CMMI Level 5 ISO 9001、ISO 9002 ISO 27001(BS7799)、PIMS10012, and more Product Certified Industry Engineers Standard Certifications Cisco CCIE , CCDA , CCDP , CCNA , CCNP ,

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Outline

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• About Syscom

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•
Products & Services
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• Business Achievements

• Outlooks

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Unified Smart Platform-SYSCOM ABC

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Focused on Global IT Trends

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Cloud Application &
Service
Mobile Mixed •
Cloud-based
Platform
SYSCOM Productivity Control
•
Police Cloud、EPA System
•
Cloud ABC Provide Cloud Data
•
Apps warehouse for large
Development loud Japanese
& Backend shopping center
pps
System
Integration ig Data
Big Data Analysis
Service
•
Helping Police
with criminal
cases
14
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Technical Domains

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Cloud System Outsourcing
Integration Service
Service
Information Security
Cloud-based Project
Management Platform
Brand Sales and
Core Technology
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Cloud System Integration Service Technical evaluation, Service planning, Application design, Service Platform Deployment, System Test & Tuning

Product/Service

VDI Microsoft Office 365 Cloud Application Microsoft Azure DBMaker Cloud Database System SDPM CSF Virtualization VMware Microsoft Hyper-V Server Server Server HP Sever Cisco UCS Storage HP Storage / 3PAR NetApp EMC NexentaStor Network Equipment Cisco Brocade Cloud Management HP Software BMC Microsoft System Center TrendMicro

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Cloud-based Project Management Tool (CSF)

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Capacity utilization applied to software development includes: definition, quantification, optimization to control software development quality and efficiency

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Currently Dept. Annual Dept.
Capacity Analysis Capacity Analysis
Year-to-date Capacity Analysis
3 Month Outlook 6 Month Outlook
Dept. Capacity Analysis Dept. Capacity Analysis
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Brand Sales and Service

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Cisco (UCS)
Cloud Public
Computing Sector
Finances
Transportation
Securities Big Data
Telecommunicati
on and Network Security
Outsourcing Enterprise
Healthcare
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Outline

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• About Syscom

• Products & Services

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•
Business Achievements
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• Outlooks

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Business Achievements－Finance

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• Banking, Securities, Futures, Insurance Core Business Systems

• Payment System

• Wealth Management

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• Risk Control & Management

• • System Test & Performance

• Tuning

Business Achievements - Telecom

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• IP Core, Network Convergence, Network Access Planning & Construction

• Cloud Data Center Planning & Construction

• Cross-Brand Network Management System

• Integrated Network Management & Monitoring Platform

• Information Security Planning & Design

• Brand Sales & Maintenance Service

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Business Achievements－Public Sector

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• Cloud Services

• Police Cloud、EPA Cloud、Food Safety Cloud….

• Human Resource & Payroll Management System

• Information System Outsourcing Services

• E-Government Planning, Construction & Maintenance Services

• Information Security Architecture Consulting, Planning, and Construction Services

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Business Achievements－Healthcare

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• Hospital Information Systems (HIS)

• Dr. Rounds

• Mobile Nursing System

• Health Care System

• Women & Children Health

Care Platform

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Business Achievements

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BALANCE SHEET (Consolidated)

(Unit：NT$ Thousand)

Item	December 31, 2016	%	December 31, 2015	%
Cash and cash equivalents	465,372	14%	444,036	13%
Notes and accounts receivable	1,236,065	38%	1,177,097	36%
Inventories	282,633	9%	287,068	9%
Investments	138,548	4%	142,266	4%
Property, plant and equipment	530,152	16%	492,333	15%
TOTAL ASSETS	3,248,371	100%	3,315,230	100%
Short term loan	200,669	6%	151,164	5%
Notes and accountspayable	912,447	28%	982,801	30%
TOTAL LIABILITIES	1,509,066	46%	1,571,419	47%
SHAREHOLDERS’EQUITY	1,739,305	54%	1,743,811	53%

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Business Achievements

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INCOME STATEMENT(Consolidated)

(Unit：NT$ Thousand)

Item	2016	%	2015	%	YoY
Net Operating Revenues	3,905,581	100%	3,903,721	100%	0.05%
Gross Profit	951,057	24%	948,977	24%	0.22%
Operating Expenses	899,238	23%	884,855	22%	1.63%
Operating Income	51,819	1%	64,122	2%	-19.19%
Net Nonoperating Income and Expenses	17,617	1%	17,142	0%	2.77%
Net Income	62,481	2%	64,882	2%	-3.70%
Net Income Attributable to the Stockholders of the Parent	66,469	2%	65,417	2%	1.61%
EPS(NTD)	0.66		0.65		1.61%

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Outline

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• About Syscom

• Products & Solutions

• Business Achievements

• Outlooks

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Outlooks

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• Quality Persistence

• Strengthen existing technical domains

• Strictly implement SOP to improve and maintain SI project quality

• Innovative Development

• Develop and introduce new technologies including Robots, Virtual Reality, Augmented Reality, 3D Printing, Centralized multi-window video control platform, 360° VR Video, IoT, and Fintech solutions to better service customers

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Outlooks (cont.)

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• Develop Smart Operation Platform

• Mobile Economy

• Big Data

• Cloud Services

• Build Smart City Infrastructure

• Smart Security

• Smart Transportation

• Smart Healthcare

• Intensify SI Technologies for Overseas Markets ▪ Taiwan System Integration Promotion Platform

• ▪ New Southbound Policy

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Thank you

www.syscom.com.tw

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