SYSCOM — Investor Presentation 2021

Mar 30, 2021

SYSCOM COMPUTER ENGINEERING CO.

Best System Integration Company for Business Competitiveness 2021.3.30

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

IPO 2001

1,134 (Dec.2020) Employees

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

• Three Self-developed Syscom Computer Products Win the 2021 "Taiwan Excellence Award" .

• Smart Service Robot Ayuda Wins the Silver Award in one fell swoop(2021)

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

• NETCenter(2021)

• DBMaker (2013/2014/2015/ 2017/2020/2021)

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

• Honored with “Information Security Management Excellence Award” by SGS (2020)

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

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

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

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

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

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

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

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

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

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

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Quality

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• Passes the certification of “ISO/IEC 27001: 2013”, ISO/IEC 20000-1:2018” (2020)

• Passes the certification of “BS 10012:2017”(2019)

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

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

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

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

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

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Founder Raff Liu awarded an honorary doctorate from Donghua University

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Smart Service-based Robot Getting Great Results

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HPE Product Strategic Partner

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11

Partners Awards

CISCO

• The first CISCO dealer in Taiwan (1997)

• Gold Partner for 22 years running (1998-2021)

• Has the largest number of CCIE in Taiwan

• CISCO gives the first place of the Barbarian Award to SYSCOM in the first annual for its special contribution on projects (2012)

• Cisco ATP Certifications : - Network Services Orchestrator (the sole in Taiwan)

• Application Centric Infrastructure

Hewlett Packard Enterprise

• Platinum Partner

• Obtains Server, Storage, and Services triple gold certification

• Platinum Networking Partner HPE Aruba(2017)

• Qualified for the Storage Partner Support Program

• The only NonStop Server distributor in Taiwan & the sole authorized service provider in the world

• Awarded with the HPE Security Partner Award

• FY20 Product Strategy Partner Award

• FY20 Best Distribution Partner Award

Microsoft

• Microsoft Licensing Solution Partner (MLSP)

• • Licensed dealer of Microsoft Cloud Solution Provider

• 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)

Fortinet

• The Platinum Partner in Taiwan

• Has the largest number of NSE4 certified engineers in Taiwan

• 2016 sales champion dealer in Asia Pacific region

• The 2016 Taiwan Area Sales, Technology, and Services Award

TrendMicro

• TrendMicro Global Elite Partner

Palo Alto Networks

• Gold Partner

• Has the top level Palo Alto technical certificate and many security technical consultants

Imperva

• Best Dealer Award in Taiwan

• Has Imperva DAM and WAF technical certificates

VMware

• Solution Provider Premier Partner

• Has 25 VCP certificates for strong technical support

• Obtains the Master Services Competency (MCS) certification

Radware

• Best Partner Award

Professional Certifications & Expertise

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Quality Assurance Certifications

Industry Standard Certifications

Product Certified Engineers

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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

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Cloud Application &
Service
Mobile Mixed •
Cloud-based
Platform
SYSCOM Productivity Control
•
Police Cloud、EPA System
ABC
Cloud
•
Apps
Development loud
& Backend
pps
System
Integration ig Data
Big Data Analysis
Service
•
Helping Police
with criminal
cases
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Brand Sales and Service

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Cloud
Computing Big Data
Finances Public Sector
Securities Transportation Cisco (UCS)
Telecommunication
and Network Security
Enterprise
Outsourcing
Healthcare
16
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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 Server Cisco UCS QCT Storage HPE Storage / 3PAR NetApp Dell EMC NexentaStor Network Equipment Cisco HPE Aruba Brocade Cloud Management Micro Focus BMC & Information Microsoft System Center TrendMicro

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Cloud Services

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Public cloud, Private cloud, Hybrid cloud  Service planning  Application architecture design  Service platform integration  System and data transposition  Billing

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Cisco Webex
WebEx conference
cloud service
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Microsoft Azure
Azure & O365
introduced to build
and integrate cloud-
ground transposition
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SalesForce
Salesforce E-commerce
cloud
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Cloud-based Project Management Tool

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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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Outsourcing Service

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National Center for Highperformance Computing

Health and Medical Service Network

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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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• SYSCOM continues to invest in research and development and actively commercializes selfdeveloped products to open up the Blue Ocean Market. Three of above-mentioned wins the 2021 Taiwan Excellence Award

• Smart Service Robot-Ayuda

• IT Infrastructure Management -NETCener

• Database - DBMaker

• Enterprise Class Process Engine -OMFLOW

• Intelligent Integrated Security Service Platform -Diamond Guard

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Outline

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• About Syscom

• Business Outline

• Business Achievements

• Visions

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Solutions and Business Achievements

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

• Banking, Securities, Futures, Insurance Core Business Systems

  • Cloud Services

  • Service-based Robot, Ayuda

• Cloud Data Center Planning & Construction

• Payment System

• Human Resource & Payroll Management System

• Wealth Management

• Cross-Brand Network Management System

• Risk Control & Management

• IT/OT Outsourcing Services

• System Test & Performance Tuning

  • E-Government Planning, Construction & Maintenance Services

• Integrated Network Management & Monitoring Platform

• Service-based Robot, Ayuda

• Information Security Architecture Consulting, Planning, and Construction Services

• Financial Services Channel Integration Platform

• Information Security Planning & Design

• Brand Sales & Maintenance Service

• Smart & Integrated Information Security Service Platform

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Telecom
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Public Sector

• Hospital Information Systems (HIS)

• Information Security Management SystemConsulting, Planning and Implementation

• Dr. Rounds

• eCommerce

• Women & Children Health Mobile Nursing System

• Integrated Cloud Computing Solution & Services

• Health Care System

• IT Infrastructure Management Center

• Smart Wards/ Care Platform

• Service-based Robot, Ayuda

• Service-based Robot, Ayuda

• Smart Transportation, Smart Sales, and Smart Security

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Healthcare
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Others
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Smart City Expo shows applications in all aspects AI city of the future Smart Security

Smart Transportation

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Smart City Expo shows applications in all aspects

Smart Healthcare

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Smart Sales

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Business Achievements

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BALANCE SHEET HIGHLIIGHTS (Consolidated)

(Unit：NT$ Thousand)

Item	December 31, 2020	%	December 31, 2019	%
Cash and cash equivalents	379,767	9%	545,148	13%
Contract assets-current	567,136	13%	602,153	14%
Notes and accounts receivable	1,136,635	27%	1,240,986	29%
Inventories	561,050	13%	432,448	10%
Investments	70,679	2%	128,086	3%
Property, plant and equipment	362,489	8%	407,341	9%
TOTAL ASSETS	**4,289,866 **	100%	**4,318,189 **	100%
Short term loan	115,640	3%	355,312	8%
Notes and accountspayable	1,517,720	35%	1,324,508	31%
TOTAL LIABILITIES	2,395,162	56%	2,503,307	58%
SHAREHOLDERS’EQUITY	1,894,704	44%	1,814,882	42%

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Business Achievements

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INCOME STATEMENT(Consolidated)

(Unit：NT$ Thousand)

Item	2020	%	2019	%	YoY
Net Operating Revenues	**5,757,866 **	**100% **	5,910,857	100%	-2.59%
Gross Profit	1,310,988	23%	1,244,168	21%	5.37%
Operating Expenses	1,147,635	20%	1,143,928	20%	0.32%
Operating Income	163,353	3%	100,240	1%	62.96%
Net Nonoperating Income and Expenses	49,545	1%	50,496	1%	-1.88%
Net Income	166,842	3%	124,937	2%	33.54%
Net Income Attributable to the Shareholders of the Parent	169,958	3%	129,150	2%	31.6%
EPS(NTD)	1.70		1.29		31.6%

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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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• Driven by factors such as technologies evolution, popularization of intelligent applications, and changes in the industrial ecosystem, digital technology will gradually spread to applications in various industries, accelerate their digital transformation, and drive the advent of the digital economy, especially in manufacturing, service, healthcare, education, and entertainment. Under the pressure of the epidemic, the cloud, remote technology, virtual technology, and digital supply chain platforms will be used for technological transformation.

• Target new technology applications such as 5G, AI, IoT, and information security, and move towards innovative services.

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Powerful Integration Ability for Future Trend

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Innovation
Security
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Integration Technologies AI Smart Cloud IoT Mobility

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Future Development

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• Utilize system integration experience to develop smart operation applications.

• Optimize self-developed products and expand related application services.

• Expand developing the leading technologies and accelerate implementing application services.

• Strengthen international cooperation and expand overseas markets.

• Promote digital transformation for company's sustainable business strength.

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Thank you

www.syscom.com.tw

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