SYSCOM — Investor Presentation 2020

Mar 31, 2020

SYSCOM COMPUTER ENGINEERING CO.

Best System Integration Company for Business Competitiveness 2020.3.31

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 to new needs into technologies, ability ramp 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 as of the date of this release and undertakes no Syscom Syscom 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

• Business Outline

• Business Achievements

• Visions

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About Syscom

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• Established： 1975.7.17

• IPO： 2001.5.22

• Employees： 1,094 (Dec.2019)

• 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, Education

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Milestones

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Enriches
Industry
Strengthens knowledge
Develops core and refines and upgrades
Grows and technologies software smart
Develops in expands to for global quality for capabilities
securities and network markets international
finance markets systems and expansion cooperation
with TANDEM OPEN systems
and peripheral ※ IPO in 2001 2015-
Now
equipment
2005-
2014
※ Founded in
1995-
1975
2004
1985-
1994
1975-
1984
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Achievements and Awards

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• SYSCOM DBMaker Cloud DB Given“Taiwan Excellent Product Award” (2013/2014/2015/2017/20)

• The only information service provider listed in the 50th Anniversary Book of the Industrial Development Bureau of the Ministry of Economic Affairs (2020)

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

• SYSCOM wins the 25th Annual National Quality Award - BEST PRACTICE AWARD FOR MANUFACTURING QUALITY

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

• SYSCOM’s robot Ayuda awarded “System Integration Export Award” by Taiwan Smart City Solution Alliance (2018)

• Enterprise-wide deployment of PIMS and PIMS BS10012:2009 certification(2012)

• SYSCOM’s robot Ayuda Wins “2017 Cloud IOT Innovation Champion Award” with its smart robot platform (2017)

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

• • Given “Taiwan ICT Best Practice Award” in Asia Pacific ICT Summit (2010)

• Passes the certification of “ISO/IEC 27001: 2013”, ISO/IEC 20000-1:2011 and “CNS 27001:2014”(2017)

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  - SYSCOM is the first Taiwanese company passing the globally top level software quality appraisal “CMMI-Maturity Level 5” (2006)

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

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

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

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

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

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

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

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

Excellent Industry Technology Award

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Information technology -- Service management

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CMMI Level 5

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Passes the appraisal of “CMMI-

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Excellence

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2014 – SYSCOM Wins the “Taiwan Mittelstand Award”

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Cloud Computing Innovation

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“Open Enterprise Cloud Hosting Services –

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Smart Service-based Robot Getting Great Results ( I )

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SYSCOM’s robot Ayuda Wins “2017
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Smart Service-based Robot Getting Great Results ( II )

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The 25th Annual National Quality Award

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2018 - SYSCOM wins “The 25th Annual National Quality
Award - BEST PRACTICE AWARD FOR
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Listed in IDB’s 50[th] Anniversary Book

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The Industrial Development Bureau of the Ministry of Economic Affairs celebrates its 50[th] anniversary in 2020. SYSCOM is the only information service provider listed in IDB’s 50[th] Anniversary Book, which introduces Taiwan’s industrial development history and lists 51 representative companies of Taiwan’s six industrial sectors.

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Professional Certifications & Expertise

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Quality Assurance Certifications

Industry Standard Certifications

Product Certified Engineers Cisco CCIE , CCDA , CCDP , CCNA ,

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Outline

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• About Syscom

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•
Business Outline
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• Business Achievements

• Visions

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Unified Smart Platform-SYSCOM ABC

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Focused on Global IT Trends. ABC stands for three major ICT trends as below.

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pps

Mobile Mixed Platform

• Police Cloud、EPA Cloud

• • Apps Development & Backend System Integration

• ig Data Big Data Analysis Service: Helping Police with criminal cases

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• loud Cloud-based Productivity Control System • Cloud-based Productivity Control System

• • Provide Cloud Data warehouse for large Japanese s

• shopping center

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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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Cloud System Integration Service

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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 Hyber-V Server Server Server HPE Sever QCT Cisco UCS Storage HPE Storage / 3PAR NetApp EMC NexentaStor Network Equipment Cisco Aruba Brocade Cloud Management BMC Cisco FortiNet Micro Focus & Information Microsoft System Center NETCenter 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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Outsourcing Service

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Health and Medical Service Network

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National Archive Management System

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National Space Program Office

Development and Maintenance of the Satellite Ground control system

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Image Source: National Space Organization

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Core Technology R&D

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• Including: Telecommunications, Network Management, Database Engines, and more.

• 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 、Shopping Center

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Outline

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• About Syscom

• Business Outline

• Business Achievements

• Visions

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Business Achievements－Finance

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• Banking, Securities, Futures, Insurance Core Business Systems

• Payment System

• Wealth Management

• Risk Control & Management

• System Test & Performance

• Tuning

• Service-based Robot, Ayuda

• Smart & Integrated Information Security Service Platform

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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

• Service-based Robot, Ayuda

• Solutions for Smart City

• 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)

• Women & Children Health Mobile Nursing System

• Health Care System

• Smart Wards

• Dr. Rounds

• Care Platform

• Service-based Robot, Ayuda

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Business Achievements

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BALANCE SHEET HIGHLIIGHTS (Consolidated) (Unit：NT$ Thousand)

Item	December 31, 2019	%	December 31, 2018	%
Cash and cash equivalents	545,148	13%	537,503	16%
Contract assets-current	602,153	14%	267,663	8%
Notes and accounts receivable	1,241,069	29%	904,579	27%
Inventories	432,448	10%	338,690	10%
Investments	128,086	3%	131,573	4%
Property, plant and equipment	407,341	9%	452,249	14%
TOTAL ASSETS	**4,318,189 **	100%	**3,338,658 **	100%
Short term loan	355,312	8%	122,626	4%
Notes and accountspayable	1,324,508	31%	926,199	28%
TOTAL LIABILITIES	2,503,307	58%	1,582,273	47%
SHAREHOLDERS’EQUITY	1,814,882	42%	1,756,385	53%

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Business Achievements

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INCOME STATEMENT(Consolidated)

(Unit：NT$ Thousand)

Item	2019	%	2018	%	YoY
Net Operating Revenues	**5,910,857 **	**100% **	4,726,730	100%	25.05%
Gross Profit	1,244,168	21%	1,110,131	24%	12.07%
Operating Expenses	1,143,928	20%	1,073,540	23%	6.56%
Operating Income	100,240	1%	36,591	1%	173.95%
Net Nonoperating Income and Expenses	50,496	1%	44,662	1%	13.06%
Net Income	124,937	2%	60,231	1%	107.43%
Net Income Attributable to the Stockholders of the Parent	129,150	2%	62,912	**1% **	105.29%
EPS(NTD)	1.29		0.63		105.29%

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Outline

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• About Syscom

• Products & Solutions

• Business Achievements

• Visons

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Market Trend

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• IDC predicts that the Taiwan market will be affected by the following ten trends in 2020: Fusion AI, Edge / Cloud AI Mutualism, Hybrid Cloud, Automation and lntelligent Process Automation, 5G, Digital Transformation: SME, Geopolitical Risks Drive Localization of Information Security, New era of Wearable Device, Omni-Platform Disrupting the gaming industry, and Anything as a Service.

• Technologies including AI, Cloud Computing, 5G, AIoT, and Security are important promoters of enterprise transformation.

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Powerful Integration Ability for Future Trend

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AI
Cloud
AIoT
Computing
Smart
Cloud
Security
Mobility
5G
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• Technologies • Integration

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•
Innovation
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Future Development

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• Develop “Smart SYSCOM” applications to showcase system integration abilities

• Develop “Smart operation platform” to maximize information value for customers

• Combine multiple applications for integrated information security service

• Expand international cooperation and extend to overseas markets with software development abilities

• • Promote digital transformation and strengthen the company's sustainable operating strength

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Thank you

www.syscom.com.tw

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