UT — Call Transcript 2015

Aug 12, 2015

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Investors Conference for 2015

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Aug 12, 2015

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Disclaimer

The statements of unitech for its current expectations provided herein are forward-looking. These statements are subject to risks and uncertainties that might cause significant deviations from actual results. Unitech undertakes no obligation to update the forwardlooking statements to reflect events or circumstances after the issuance of the statements.

Nothing contained herein constitutes an investment advice, offer or solicitation for the purchase or sale of any financial instrument. Neither unitech nor any of its officers or employees shall be liable for any direct, indirect or consequential loss, damage, cost or expense incurred or arising from any use of the information contained herein.

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Agenda

• Company Profile

• Financial Review

• Q&A

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Company Profile

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unitech Group Organization

Stock unitech computer co., ltd ( 2414 ) No.

58.52% Stock unitech electronics co., ltd ( No. 3652 ) 100% 100% 100% 85.57% UTA UTI UTC UTJ unitech American unitech Europe unitech China unitech Japan

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unitech Computer Market Position

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(unitech)
SI / VAD Government
Whole
General
Seller
Distributor
Enterprise
Reseller
High-tech
products
Makers
Chain Store
SMC
Mail
Order Store
Direct sell
HOME
Department
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unitech Computer Main Distribution Brand

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unitech Computer Business Model

Integration of Distribution, Maintenance and Logistics with IT infrastructures

1. Maximize add on value

2. Enhance productivity for cost saving

3. Upgrade operation quality

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unitech Computer main products Introduced since 2014

Brand	Product line
AXIS	Security and Video Surveillance Systems
Brother	Printers
DIGIEVER	Network Video Recorders (NVR)
GARMIN	Wearable Devices (Outdoor Sports Products)
Lenovo	Servers、PCs、Notebooks
OCZ	Storage Solutions
Synology	Network Attached Storage (NAS)、 Network Video Recorder (NVR)

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Subsidiary - unitech Electronics Co. Ltd

Developing Automatic Data Collection (ADC) products base on the core competence on RFID and Barcode technologies

1. Design and manufacture innovative ADC products to sell and market it worldwide under the own brand name

2. Major applications

3. Warehousin g, Logistics, Supply Chain

4. Management

5. Retail Management

6. Field Services

7. Government / Police / Public Services

8. Health Care / Tele Care Services

9. Smart Living Solutions

10. Energy Saving Solutions

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Subsidiary - unitech Electronics Co. Ltd Major Product Lines

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Integrated Terminal
of Security & Home
Automation
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Full Range Hand Held Barcode Scanners

RFID Mobile / Fixed Readers

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The Group of Unitech Computer – Recent achievements

1. According to the report of Common Wealth Magazine

2. ‧ In 2014, unitech Computer is rank as No.102 among Top 2,000 ，

3. enterprises in Taiwan service industry, No.18 in 3C channel and Top 2 largest distributors in Taiwan IT channel.

4. ‧ The subsidiary, unitech Electronics Co. Ltd. is the 28th largest Computer manufacturer, base on its sales revenue in 2014.

5. According to the statistic data of VDC, an US professional research ，

institution [unitech] is rank as No. 1 brand of industry level ruggedized Mobile Computer in Taiwan, and also Top 10 brands worldwide.

1. [unitech] brand Healthcare Mobile Computer PA520MCA & Smart Gateway MT90 won the award of the 23rd “Taiwan Excellence” honored by the Ministry of Economic Affairs of R.O.C.

2. Both unitech Computer and unitech Electronics won the ranking of “Top 20% Enterprise” in the first Corporate Governance Evaluation in Taiwan.

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Financial Review

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unitech Group Operational Result Summary Ⅰ

Unit ： NT$ Thousand

	Y15H1	Y14H1	YoY(%)
Revenue	7,286,849	7,218,714	0.94%
Gross profit	703,083	694,915	1.18%
Operating expense	554,774	541,773	2.40%
Operating income	148,309	153,142	-3.16%
Others income (expense)	(4,606)	2,017	-328.36%
Pre-tax income	143,703	155,159	-7.38%
Net income	115,526	131,529	-12.17%
EPS(NT$)	0.69	0.77	-10.39%
Gross profit %	9.65%	9.63%
Operating expense %	7.61%	7.51%
Operating income %	2.04%	2.12%
Others income (expense) %	-0.06%	0.03%
Pre-tax income %	1.97%	2.15%
Net income %	1.59%	1.82%

• Cumulative consolidated numbers were reviewed by CPA

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unitech Group Operational Result Summary Ⅱ

			Unit：NT$Thousand
	2014	2013	YoY (%)
Revenue	15,431,111	14,490,382	6.49%
Gross profit	1,409,418	1,254,368	12.36%
Operating expense	1,100,005	1,060,347	3.74%
Operating income	309,413	194,021	59.47%
Others income (expense)	(10,517)	(8,411)	25.04%
Pre-tax income	319,930	202,432	58.04%
Net income	265,908	166,763	59.45%
EPS(NT$)	1.56	0.97	60.82%
Gross profit %	9.13%	8.66%
Operating expense %	7.13%	7.32%
Operating income %	2.01%	1.34%
Others income (expense) %	-0.07%	-0.06%
Pre-tax income %	2.07%	1.40%
Net income %	1.72%	1.15%

*Cumulative consolidated numbers were audited by CPA

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unitech Group Operational Result Summary Ⅲ

Quarter	Y13Q3	Y13Q4	Y14Q1	Y14Q2	Y14Q3	Y14Q4	Y15Q1	Y15Q2
Gross profit %	8.39%	8.30%	9.94%	9.35%	8.60%	8.80%	10.23%	9.11%
Operating expense %	6.88%	6.67%	7.79%	7.26%	6.58%	7.02%	7.67%	7.56%
Operating income %	1.51%	1.63%	2.15%	2.09%	2.02%	1.78%	2.56%	1.55%
Pre-tax income %	1.46%	1.70%	2.18%	2.12%	2.18%	1.82%	2.50%	1.48%
EPS (NT$)	0.25	0.31	0.40	0.37	0.47	0.32	0.44	0.25
Year	2008	2009	2010	2011	2012	2013	2014	2015H1
Gross profit %	11.11%	9.83%	9.69%	9.57%	8.80%	8.66%	9.13%	9.65%
Operating expense %	8.61%	7.53%	7.62%	7.68%	7.22%	7.32%	7.13%	7.61%
Operating income %	2.49%	2.30%	2.07%	1.90%	1.58%	1.34%	2.01%	2.04%
Pre-tax income %	2.13%	2.27%	2.04%	1.94%	1.68%	1.40%	2.07%	1.97%
EPS (NT$)	1.14	1.42	1.47	1.50	1.28	0.97	1.56	0.69
ROE	8.54%	9.64%	9.75%	9.80%	8.43%	6.59%	10.16%	4.70%

• Cumulative consolidated numbers were audited/reviewed by CPA

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Revenue & Gross Profit Rate– Channel of Technology Products

Unit ： NT$ Million

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Revenue & Gross Profit Rate– Automatic Data Collection (ADC) products

Unit ： NT$ Million

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unitech Group Balance Sheet & Key Index

Assets

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Assets Liabilities & Equities
Unit: NT$ B
54.0 53.6 54.0 53.6
3.5 3.5 5.7
6.8
17.8 15.4
24.6 24.3
Cash
Int. bearing debt
AR
AP
2.0 3.2
Inventories
Other debt
FA
Equities
12.4 12.3 Others
28.5 28.2
10.9 11.0
2.6 2.5
2015/6/30 2014/6/30 2015/6/30 2014/6/30
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	2015/6/30	2014/6/30
Current ratio	169.81%	174.98%
Quick ratio	118.93%	122.66%
Debit ratio	47.22%	47.48%
Net Int. bearing debt / equity	19.99%	24.11%
Book valueper share(NT$)	14.78	14.52

*Cumulative consolidated numbers were reviewed by CPA

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unitech Group Dividends Policy

Unit ： NT$

Year	2008	2009	2010	2011	2012	2013	2014
EPS	1.14	1.42	1.47	1.50	1.28	0.97	1.56
Cash dividends (share)	1.10	1.32	1.32	1.35	1.15	1.00	1.20
Average market Price	8.79	20.98	16.30	13.22	14.17	14.62	17.88
Average dividend yield	12.51%	6.29%	8.10%	10.21%	8.12%	6.84%	6.71%

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Q & A

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Many thanks for your inputs We wish you all the best To find out the latest information on Unitech, please visit: www.unitech.com.tw

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