SYSCOM — Investor Presentation 2018

Mar 28, 2018

Best System Integration Company for Business Competitiveness

2018.3.28

Disclaimer

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.

Outline

• About Syscom

• Products & Services
• Business Achievements
• Outlooks

About Syscom

• Established:1975. 7. 17
• IPO:2001. 5.22
• Employees:1,016 (Dec.2017)
• Business Scope:

• 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

Milestones

※ Founded in 1975

Achievements and Awards

• SYSCOM's robot Ayuda awarded "System Integration Export Award" by Taiwan Smart City Solution Alliance (2018)
• SYSCOM's robot Ayuda Wins "2017 Cloud IOT Innovation Champion Award" with its smart robot platform (2017)
• Passes the appraisal of "CMMI-Dev v1.3 Maturity Level 3" (2017)
• Passes the certification of "ISO/IEC 27001:2013" and "CIS 27001:2014" (2017)
• "Dedicated Enterprise Cloud Hosting Services - Pracla" Given "2016 Cloud Service Award" by Industrial Development Bureau, Ministry of Economic Affairs (2016)
• "Open Enterprise Cloud Hosting Services OpenStack Pracla" Honored with "2016 Cloud Award"(2016)
• 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)

• Wins the 2nd annual Taiwan Mittelstand Award (2014)
• Wins the first place in "Cloud Innovation Competition" held by Cloud Computing Association in Taiwan (2014)
• Enterprise-wide deployment of PIMS and PIMS BS10012:2009 certification(2012)
• Passes the appraisal of "CMMI-DEV v1.2 Maturity Level 5" (2011)
• The first Taiwanese company passed the appraisal of "CMMI Maturity Level 5" (2006)
• Passes the certification of "ISO/ICE 27001:2005" (2006)
• Passes the certification of "ISO 9001:2000" (2003) and "ISO 9001:1994" (2000)
• IPO in 2001

Partners Awards

BMC

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

CISCO

• Gold Partner for 18 years running (1998-2017)
• 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

• Platinum Partner
• Has the largest number of NSE4 certified engineers in Taiwan
• The sales champion dealer in Asia Pacific region

Hewlett Packard Enterprise

• Platinum Level Partner(2017)
• The first "Partner Support Program" certified dealer in Taiwan (2012) ***only three in Taiwan
• Partner Rrady Service Partner
• The only Tandem mainframe dealer given the HPE Security Partner Award

Imperva

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• 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

NetApp

• Gold Partner
• Awarded NetApp HCI Best Sales Partner (2018)

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

VMware

• Solution Provider Premier Partner
• Has 25 VCP certificates for strong technical support

Professional Certifications & Expertise

Quality Assurance Certifications

CMMI Level 5 ISO 9001、ISO 9002 ISO 27001(BS7799)、PIMS10012, and more

Industry Standard Certifications

Over 300 certified engineer in HL7, satellite control (government, space, financial, telecom, and more)

Product Certified Engineers

Cisco CCIE , CCDA , CCDP , CCNA , CCNP , DCUCD , Cisco VPN Security ; HP ASE, Master ASE; Microsoft MCITP, MCTS, MCSE; MCSA ; VMware VCP, VTSP; EMC EAS, EASE; TrendMicro TCSE; Fortinet FCNSA, FCNSP; RedHat; IBM, and more

Outline

• About Syscom
• Products & Services
• Business Achievements
• Outlooks

Unified Smart Platform-SYSCOM ABC

Cloud Application &

Focused on Global IT Trends

Technical Domains

Cloud System Integration Service

Technical evaluation, Service planning, Application design, Service Platform Deployment, System Test & Tuning

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Cloud-based Project Management Tool

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

Brand Sales and Service

Service-based Robot, Ayuda

• Ayuda is completely MIT, using mobile robot platforms, robot components, voice recognition, voice chat communications, automatic maps and navigation learning, video conferencing, and provides many more functions which integrate with legacy systems.
• Domains:

Financial、Public Sector、Healthcare、Education

2017 Cloud IOT Innovation Champion Award

2018 System Integration Export Award

Outline

• About Syscom
• Products & Services
• Business Achievements
• Outlooks

Business Achievements-Finance

• Banking, Securities, Futures, Insurance Core Business Systems
• Payment System
• Wealth Management
• Risk Control & Management
• System Test & Performance Tuning
• Service-based Robot, Ayuda

Business Achievements - Telecom

• 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

Business Achievements-Public Sector

• Cloud Services
• Police Cloud、EPA Cloud、Food Safety Cloud….
• Service-based Robot, Ayuda
• Solutions for Smart City
• Smart Transportation、Smart Security、Smart Power、 Smart Healthcare
• Human Resource & Payroll Management System
• Information System Outsourcing Services
• E-Government Planning, Construction & Maintenance Services
• Information Security Architecture Consulting, Planning, and Construction Services

Business Achievements-Healthcare

• Hospital Information Systems (HIS)
• Dr. Rounds
• Mobile Nursing System
• Health Care System
• Women & Children Health Care Platform
• Service-based Robot, Ayuda

Business Achievements

BALANCE SHEET (Consolidated)

(Unit:NT\$ Thousand)

Item	December 31, 2017	%	December 31, 2016	%
Cash and cash equivalents	368,566	10%	465,372	14%
Notes and accounts receivable	1,424,212	39%	1,236,065	38%
Inventories	346,813	10%	282,633	9%
Investments	139,655	4%	138,548	4%
Property, plant and equipment	495,372	14%	530,152	16%
TOTAL ASSETS	3,618,735	100%	3,248,371	100%
Short term loan	311,574	9%	200,669	6%
Notes and accounts payable	1,013,915	28%	912,447	28%
TOTAL LIABILITIES	1,858,171	51%	1,509,066	46%
SHAREHOLDERS'EQUITY	1,760,564	49%	1,739,305	54%

Business Achievements

INCOME STATEMENT(Consolidated)

(Unit:NT\$ Thousand)

Item	2017	%	2016	%	YoY
Net Operating Revenues	4,803,074	100%	3,905,581	100%	23%
Gross Profit	1,071,109	22%	951,057	24%	13%
Operating Expenses	1,009,688	21%	899,238	23%	12%
Operating Income	61,421	1%	51,819	1%	19%
Net Nonoperating Income and Expenses	49,455	1%	17,617	1%	181%
Net Income	86,976	2%	62,481	2%	39%
Net Income Attributable to the Stockholders of the Parent	91,028	2%	66,469	2%	37%
EPS(NTD)	0.91		0.66		37%

Outline

• About Syscom
• Products & Solutions
• Business Achievements

Powerful Integration Ability for Future Trend

Outlooks

• Develop Smart Operation Platform
• Service-based Robot
• Artificial Intelligence
• Big Data
• Mobile Economy
• Cloud Services

• Build Smart City Infrastructure

• Smart Security
• Smart Transportation
• Smart Healthcare
• Smart Power

Thank you

www.syscom.com.tw www.syscom.com.tw