SYSCOM — Investor Presentation 2024

Mar 27, 2024

SYSCOM COMPUTER ENGINEERING CO. Best System Integration Company for Business Competitiveness 2024.3.27

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 our introduction of new pricing, timely project acceptance by customers, timely 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

• Market and Business Outline

• Business Achievement

• Vision

• ESG Sustainable Development

• Q&A

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About Syscom

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Establishe 1975 d IPO 2001

Business

• System Integration & Professional Services

• ◼ IT Consulting & Training

◼ Software & Hardware Sales and Service ◼ E-Commerce & Information Security Services ◼ Network & Wireless Design & Construction ◼ R&D for Smart Service-based Robot, AYUDA ◼ Artificial Intelligence Services ◼ Cloud Application & Services ◼ Solutions for ESG sustainable development Customer Finance, Telecom, Public Sector/ Defense, Healthcare, Domains Transportation, Manufacturing, Education , Retail

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Achievements and Awards

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• The 27th National Quality Award-BEST PRACTICE AWARD FOR INDUSTRIAL SUPPORT(2024)

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

• OMFLOW(2023/2024)

• Smart Service Robot Ayuda (2021 Silver Award /2023/ 2024 Silver Award )

• NETCenter(2021-2023)

• DBMaker (2013-2015/2017/2020-2023)

• Wins the first place of “Service Innovation Award” of the Ministry of Communications’ “5G-driven Intelligent Transportation Technology, Service Innovation and Industrial Development Program” (2022)

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

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

• SYSCOM wins the 25th National Quality Award - BEST PRACTICE

• AWARD FOR MANUFACTURING QUALITY(2018)

• Passes the certification of “CNS 27001:2014” (2023-2025) and “ISO/IEC 27001:2013” (Applicability version 5: 2023-2025).

• Passes the certification of “ ISO/IEC 20000-1:2018 “ (2023-2026)

• ◆ Passes the certification of “ISO/ISE27701:2019 “(2023-2025)

• Passes the appraisal of “CMMI-DEV v1.3 Maturity Level 3” (2023)

• Passes the certification of “BS 10012:2017”(2022-2025)

• 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)

• SYSCOM’s robot Ayuda Wins “2017 Cloud

IOT Innovation Champion Award” with its smart robot platform (2017)

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

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

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

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

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Following the “25th National Quality Award-Best Practice Award for Manufacturing Quality”(2018), we continued to improve and won the "27th National Quality Award-Best Practice Award for Industrial Support” (2024) The only CMMI Level 5 service provider in Taiwan

Winning the award in 2018 is recognition of SYSCOM’s comprehensive optimization achievements

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2006 2018 S/W to H/W Static to Transform to SYSCOM Dynamic Generative AI Sustainable Won the "National Implement "capacity Quality Award-Best utilization" from software Implement the self-developed humanApply generative AI Operation Practice for development to hardware machine process service to conduct overall Center Manufacturing technical services, and use automation engine – digital transformation. Being the best ESG system OMFLOW in the whole NETCenter to manage integrator, we build Quality Award" company for SYSCOM Sustainable overall information and comprehensive digital Development Operation communication operation transformation. Center by coupling with services. GreenMaker, SYSCOM’s smart power-saving management platform.

Passed the CMMI Level-5 Won the "National appraisal for the first time, Quality Award-Best began to establish a Practice for "capacity utilization" Manufacturing system for software Quality Award" development based on international software development processes.

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Well use IT systems to achieve overall digital transformation

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Capacity Utilization Digital Dashboard Resource monitoring digital dashboard Process Automation Supply and Installation Engine Digital Dashboard Power monitoring digital dashboard Information Security Event Management Platform Digital Dashboard

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SYSCOM Sustainable Development Operation Center

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Committed to Sustainable Development

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• Starting from 2020, we reduce the company’s overall per capita carbon emissions year by year through overall computer room monitoring and automation tools.

• SYSCOM cooperated with Evercomm to publish the “Smart Carbon Reduction Strategy Plan" on the first day of the 2023 Smart City Exhibition and declared 2023 as the "First Year of SYSCOM's Carbon Reduction“.

• • Integrate and launch products and complete solutions including energy management, greenhouse gas inventory, carbon neutral and low-carbon equipment, environmental testing and energy saving, cloud database and cloud services, paperless meetings and contract management, and more to share with customers.

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The 25th National Quality Award-

Best Practice Award for Manufacturing Quality Being committed to improving software quality, SYSCOM is the only CMMI Level 5 service provider in Taiwan.

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The 27th National Quality AwardBest Practice Award for Industrial Support Won “National Quality Award” for the second time

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Outline

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• About Syscom

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•
Market and Business Outline
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• Business Achievements

• Vision

• ESG Sustainable Development

• Q&A

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Major Trends for Taiwan ICT industry in 2024

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The next wave of development of GenAI technology: comprehensive
industrialization
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The rise of new thinking about FinOps that attaches importance to cloud
financial management
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Data Source: IDC, Dec. 2023

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Core Technology R&D

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• Innovative Application Development, SaaS Cloud Service, Big Data Analysis and Storage Repository

• Integrate GenAI results to enhance the competitive advantage and add value of large-scale system projects

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Solutions and Business Achievements

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• E-trade Risk Control & Management

• High-Frequency Trading planning, construction and maintenance services

• Digital account online opening system

• Banking, Securities, Futures, Insurance Core Business Systems

• Payment System

• Wealth Management

• System Test & Performance Tuning

• Service-based Robot, Ayuda

• Financial Services Channel Integration Platform

• Smart & Integrated Information

• Hybrid cloud planning and construction

• Network-management integrated monitoring platform

• Network-Cloud network architecture planning and construction

• SDDC overall planning and construction design services

• 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

• Cloud Services

• Public sector shared data center planning, construction, and maintenance services

• AI platform storage system planning and construction

• Service-based Robot, Ayuda

• Human Resource & Payroll Management System

• IT/OT Outsourcing Services

• E-Government Planning, Construction & Maintenance Services

• Information Security Architecture Consulting, Planning, and Construction Services

• Brand Sales & Maintenance Service

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Solutions and Business Achievements

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• Long-term Care System

• Cloud Service

• Service-based Robot, Ayuda/Ayuda cute

• Hospital Information Systems (HIS)

• Dr. Rounds

• Women & Children Health Mobile Nursing System

• Health Care System

• Smart Wards

• Smart Care Platform

• 5G integrated with AIoT applied to smart traffic control program

• ICT construction and maintenance services of Taoyuan Airport ICT system

• Real-time Integration, Automation, and Operations Environment

• Smart Transportation /Bus Terminal Information System

• ETC & traffic control system

• Highway Supervision Information System

• Ticket vending machine

• Intelligent customer service

• eCommerce/Retail Cloud/Smart Recipes

• Integrated Cloud Computing Solution & Services

• Information Security Management SystemConsulting, Planning and Implementation

• Energy Monitoring and Saving System)

• Service-based Robot, Ayuda

• Smart Sales, and Smart Security

• ICT System construction and maintenance

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Outline

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• About Syscom

• Market and Business Outline

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•
Business Achievement
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• Vision

• ESG Sustainable Development

• Q&A

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Application of Leading Technology

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5G Communication

• Get license for 5G private network

• • Smart Transportation Verification Project for Suhua Road Corridor

GenAI Application

• Smart Transportation

• Smart Healthcare

• Smart Finance

• Government Service

Cloud Service

• Planning and construction services for private cloud and hybrid cloud

• Enterprise-level commercial cloud services

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ICT Security
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• Overall information security architecture planning

• • Information security inspection services

• Managed Service Provider

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NETCenter

IT Infra Network Monitoring Management Center

• Private brand, sold to major public sector and financial institutions

• Let IT managers fully control the operational and service status of server/network/database/application system

▪Dashboard allows managers and related personnel to see clearly at a glance

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20

OMFLOW- Information Process Automation

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• Private brand, sold to major public sector and financial institutions

• Higher-degree integration of IT and human being - process information and mobile phones

• An excellent tool for enterprises to achieve "net-zero carbon emissions" and "environmental sustainability"

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Simplify software complexity and help enterprises standardize IT through
four main axes
Agile
Self service Self service adjustment
Task submit application Process Submit for review Quick
concentration processing task service Request for ruling response
Mobile device Mobile device Reduce Cost
Drag-and-drop form
User self-service Modular process Mobile application
design process
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OpenAI- Integrated Application

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• Apply GenAI for Integration

▪Enterprise Knowledge Management

▪Code Generator

▪Ayuda + OpenAI

Ayuda + OpenAI

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KM
KM
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OpenAI Enterprise KM

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Agent
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OpenAI Code Generator

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Smart robots combine LLM to become smarter and more humane

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Establish a corporate knowledge base, and integrate enterprises’ internal tools and systems

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Combined with OpenAI Codex, program code is automatically generated to help engineers quickly develop programs

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2023 AIoT Show “5G and GenAI Application”

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• Time: 2023/10/25-27

• Venue: Nangang Exhibition Hall 1

• Seven Themes Presented

▪ESG

▪5G Application

▪AI Application

▪Smart Retail

▪Smart Security

▪Smart Healthcare ▪Digital Transformation

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2024 Smart City Expo “ESG and AI⁺ Smart Sustainability”

• Focus on AI and ESG, and more than 20 smart sustainable applications were exhibited.

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Business Achievements

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BALANCE SHEET HIGHLIIGHTS (Consolidated)

(Unit ： NT$ Thousand)

Item	December 31, 2023	%	December 31, 2022	%
Cash and cash equivalents	884,494	18%	600,941	13%
Contract assets-current	483,322	10%	486,381	11%
Notes and accounts receivable	1,437,760	30%	1,491,770	34%
Inventories	473,593	10%	453,997	10%
Investments	100,884	2%	95,255	2%
Property, plant and equipment	362,728	8%	357,328	8%
TOTAL ASSETS	4,846,270	100%	4,434,940	100%
Short term loan	190,855	4%	180,922	4%
Notes and accountspayable	1,453,664	30%	1,416,049	32%
TOTAL LIABILITIES	2,728,966	56%	2,380,127	54%
SHAREHOLDERS’EQUITY	2,117,304	44%	2,054,813	46%

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Business Achievements

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INCOME STATEMENT(Consolidated)

(Unit ： NT$ Thousand)

Item	2023	%	2022	%	YoY
Net Operating Revenues	6,383,820	100%	5,950,524	100%	7.28%
Gross Profit	1,660,878	26%	1,518,500	25%	9.38%
Operating Expenses	1,375,419	22%	1,254,095	21%	9.67%
Operating Income	285,459	4%	264,405	4%	7.96%
Net Nonoperating Income and Expenses	44,048	1%	40,251	1%	9.43%
Net Income	276,638	4%	244,945	4%	12.94%
Net Income Attributable to the Shareholders of the Parent	278,293	4%	250,730	4%	10.99%
EPS(NTD)	2.78		2.51		10.99%

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Outline

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• About Syscom

• Market and Business Outline

• Business Achievement

• Visions

• ESG Sustainable Development

• Q&A

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Operating Strategy

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Make of the most use of system energy to create a high quality
customer service experience.
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Expand developing the leading technologies and accelerate
implementing application services.
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Drive R&D capacity and expand fields for core product
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Implement the company's digital and sustainable transformation
with GenAI
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Strengthen international cooperation and expand overseas
markets.
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Generative AI Application Development

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Establish an intermediate layer between humans and AI, and establish a local knowledge base so that the large language model can accurately answer questions within the scope of the intermediate layer

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Query
Person NeuroChain • TAIDE
•
Azure Open AI
•
Meta Llama V2
•
Mistral
•
Google Gemini
Large Language Model
The text is converted into multiple languages, segmented into words and
sentences, and embedded into vectors, and stored in the vector database
Enterprise internal
documents to form a knowledge base.
PDF Web Page Text file Form
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Schematic diagram of scalable AI architecture

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Review information
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Review information Public inquiries Semantic association
未核准
規範表 分類表 核准案例 常見問題 使用規範 語意關聯
Feedback review results 案例
向量化內嵌 向量化內嵌 向量化內嵌
Prompt Engineering
• TAIDE
Summary • Azure Open AI
• Meta Llama V2
Chain Of Thought • Mistral
Review AI
• Google Gemini
results and fill
Few-Shot Learning
in review Knowledge graph vector database LLM
comments Intent Parsing
(expanded)
RAG
review results GenAI integration platform
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Auditors

Highlights of Artificial Intelligence Applications Smart Robots + Generative AI

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2. LLM+ Intent prompt
1. Convert user questions to
Person The text is interpreted by the
text via STT(Speech-To-
LLM to interpret the user's
Text)
1 intent and entity recognition.
LLM
Speech-To-
Analyze user
Text
Query question
2
intent
Query
NeuroChain
5
AI
Search built-in
Text-To-
or combined
Speech with external 3. Embed knowledge
tools base or integrate
5. Answer users via LLM 3 external systems or
tools to find the right
Smart robots combine with TTS(Text-To-Speech) Compile
GenAI to become smarter 4 answers answers
and more humane
4.LLM+ compile prompt
Compile Answer
31
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Vision

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Outline

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• About Syscom

• Market and Business Outline

• Business Achievement

• Vision

• ESG Sustainable Development

• Q ＆Ａ

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ESG Sustainability

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	Environmental		Social		Corporate
	Sustainability		Prosperity		Governance
•	Implement ISO 14064 – Greenhouse	•	Caring for the community and active in	•	Strengthen risk management and
	Gas Accounting and Verification		public welfare		control -balance mechanism
	standard
		•	Increase cooperation opportunities	•	protect the rights and interests of
•	Develop GreenMaker to monitor		between enterprises and academia		shareholders
	corporate energy-saving performance	•	Actively sponsor scholarships to	•	Implement governance practices and
•	Develop building energy-saving		academic groups		integrity management
	management system	•	Implement human rights and diversity	•	Ensure legal compliance and
•	Continue energy saving and carbon		in the workplace		information disclosure
	reduction measures
		•	Continuous employee care and safe	•	Implement information security
•	Implement occupational safety and		workplace		systems and strengthen information
	health management	•	Build a sustainable supply chain		security protection
				•	Encourage employees to innovate and
					protect intellectualproperty

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Thank you

www.syscom.com.tw