UT — Interim / Quarterly Report 2018

Aug 14, 2018

==> picture [777 x 99] intentionally omitted <==

Investors Conference for 2018

==> picture [625 x 17] intentionally omitted <==

==> picture [480 x 42] intentionally omitted <==

Aug 14, 2018

1

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

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.

2

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Agenda

 Company Profile

 Financial Review

• Q&A

3

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Company Profile

4

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Group Organization

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

58.15% 100% Stock Jingho computer unitech electronics co., ltd ( 3652 ) No. co., ltd. 100.00% 100.00% 100.00% 96.43% 100.00% UTA UTI UTC UTJ TASHI Smartech unitech unitech unitech unitech co., ltd. American Europe China Japan

Jingho computer co., ltd.

5

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Computer Market Position

==> picture [665 x 367] intentionally omitted <==

----- Start of picture text -----

(unitech)
SI / VAD Government
Whole
General
Seller
Distributor
Enterprise
Reseller
High-tech
products
Makers
Chain Store
SMC
Mail
Order Store
Direct sell
HOME
Department
----- End of picture text -----

6

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Computer Main Distribution Brand

==> picture [613 x 412] intentionally omitted <==

7

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

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

8

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Computer main products Introduced since 2017

Brand	Product line
AMD	CPU
ASUS	HDD line
Juniper	Network switch & Firewall equipment
Lenovo	Consumer Notebook
Milestone	Surveillance system
Quantum	Corporate storage solution
RAZER	Gaming Laptop computer

9

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

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. Warehousing, Logistics, Supply Chain Management

4. Retail Management

5. Field Services

6. Government / Police / Public Services

7. Health Care / Tele Care Services

8. Smart Living Solutions

==> picture [313 x 305] intentionally omitted <==

• Energy Saving Solutions

10

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Subsidiary - unitech Electronics Co. Ltd Major Product Lines

==> picture [196 x 63] intentionally omitted <==

----- Start of picture text -----

Integrated Terminal
of Security & Home
Automation
----- End of picture text -----

Full Range Hand Held Barcode Scanners

RFID Mobile / Fixed Readers

==> picture [261 x 161] intentionally omitted <==

==> picture [240 x 151] intentionally omitted <==

==> picture [200 x 154] intentionally omitted <==

==> picture [167 x 155] intentionally omitted <==

==> picture [352 x 148] intentionally omitted <==

==> picture [220 x 119] intentionally omitted <==

11

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

The Group of Unitech Computer – Recent achievements

1. According to the report of Common Wealth Magazine

2. ‧ In 2017, unitech Computer is rank as No.91 among Top 2,000 enterprises in ，

3. 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 26th largest Computer manufacturer, base on its sales revenue in 2017.

5. According to the VDC research, unitech is currently ranked top 9 vendor in Handheld/PDA form factor rugged mobile computer. Also the first ranked in Taiwan.

6. The unitech TB128 Rugged Tablet Computer Wins German Design Award for .

Excellent Product Design

1. Unitech HT1 Rugged HandHeld Computer- Winner of the 26nd Taiwan Excellence Award.

2. Got “ Buying power-The new product and service of social innovation Purchase Reward ” by Ministry of Economic Affairs.

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Financial Review

13

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Group Operational Result Summary Ⅰ

Unit ： NT$ Thousand

	2018H1	2017H1	YoY (%)
Revenue	7,950,235	7,824,913	1.60%
Gross profit	766,548	761,016	0.73%
Operating expense	606,117	601,976	0.69%
Operating income	160,431	159,040	0.87%
Non-Operating income and expense	(3,119)	(176)	1672.16%
Pre-tax income	163,550	159,216	2.72%
Net income	141,473	133,218	6.20%
EPS (NT$)	0.88	0.82	7.32%
Gross profit %	9.64%	9.73%
Operating expense %	7.62%	7.69%
Operating income %	2.02%	2.03%
Pre-tax income %	2.06%	2.03%
Net income %	1.78%	1.70%

• Cumulative consolidated numbers were reviewed by CPA

14

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Group Operational Result Summary Ⅱ

Unit ： NT$ Thousand

	2017	2016	YoY (%)
Revenue	16,844,529	16,180,029	4.11%
Gross profit	1,575,161	1,523,393	3.40%
Operating expense	1,235,524	1,227,558	0.65%
Operating income	339,637	295,835	14.81%
Non-Operating income and expense	(1,166)	(1,714)	-31.97%
Pre-tax income	340,803	297,549	14.54%
Net income	276,083	248,730	11.00%
EPS (NT$)	1.59	1.44	10.42%
Gross profit %	9.35%	9.42%
Operating expense %	7.33%	7.59%
Operating income %	2.02%	1.83%
Pre-tax income %	2.02%	1.84%
Net income %	1.64%	1.54%

*Cumulative consolidated numbers were audited by CPA

15

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

unitech Group Operational Result Summary Ⅲ

Quarter	2016Q3	2016Q4	2017Q1	2017Q2	2017Q3	2017Q4 2018Q1	2018Q2
Gross profit %	9.03%	8.65%	9.72%	9.74%	9.21%	8.83% 9.66%	9.62%
Operating expense %	7.00%	7.33%	7.64%	7.75%	6.77%	7.30% 7.55%	7.69%
Operating income %	2.03%	1.32%	2.08%	1.99%	2.45%	1.53% 2.11%	1.93%
Pre-tax income %	2.06%	1.25%	2.08%	1.99%	2.55%	1.44% 2.13%	1.99%
EPS (NT$) 0.40		0.26	0.43	0.39	0.50	0.27 0.49	0.39
Year	2011	2012	2013	2014	2015	2016 2017	2018H1
Gross profit %	9.57%	8.80%	8.66%	9.13%	9.28%	9.42% 9.35%	9.64%
Operating expense %	7.68%	7.21%	7.32%	7.13%	7.32%	7.59% 7.33%	7.62%
Operating income %	1.90%	1.59%	1.34%	2.01%	1.97%	1.83% 2.02%	2.02%
Pre-tax income %	1.94%	1.69%	1.40%	2.07%	1.90%	1.84% 2.02%	2.06%
EPS (NT$)	1.50	1.28	0.97	1.56	1.38	1.44 1.59	0.88
ROE	9.80%	8.65%	6.59%	10.16%	8.92%	9.21% 10.02%	5.71%

• Cumulative consolidated numbers were audited/reviewed by CPA

16

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Unit ： NT$ Million

Revenue & Gross Profit Rate– Channel of Technology Products

==> picture [708 x 147] intentionally omitted <==

----- Start of picture text -----

17
----- End of picture text -----

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Unit ： NT$ Million

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

18

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

「 Distribution Business 」 main accounts

Unit ： NT$ B

Distribution Bu	Distribution Bu	siness」main accounts Unit：NT$ B
~~0.38~~ ~~0.70~~ ~~0.88~~ ~~0.39~~ 6.96 7.31 7.15 6.94 7.76 7.53 7.35 7.28 7.01 7.29 7.32 7.14 22.86 24.88 22.01 22.35 2.14 2.21 3.22 1.90 2008 2009 2010 2011 47.12 49.92 47.93 45.99 Cash and Cash Equivalents AR Inventories FA Long-Term Investments Other Assets		~~7~~ 6.58 6.91 7.00 6.84 6.81 6.76 6.58 7.69 7.60 7.47 7.46 7.38 7.27 7.23 6.54 7.66 7.87 11.61 9.50 9.66 10.53 20.77 22.22 21.17 23.39 24.73 22.88 20.93 1.84 1.78 1.25 0.82 1.64 1.52 1.54 46.68 45.33 43.66 50.76 50.79 48.74 47.58
	~~0.38~~ ~~0.70~~ ~~.~~ ~~0.39~~ 2008 2009 2010 2011	56 65 57 62 64 58 54 19 24 23 33 26 26 29 118 136 123 135 132 123 122 ~~0.23~~ ~~0.50~~ ~~0.57~~ ~~0.64~~ ~~0.73~~ ~~0.65~~ ~~0.6~~ 2012 2013 2014 2015 2016 2017 2018H1
AR Days 68 68 55 60 Inventory Days 22 21 20 21 Total Assets Days 140 137 120 124

• ， Cumulative consolidated numbers were reviewed by CPA (2018H1:end of June others end of the year)

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

「 Distribution Business 」 main accounts

Unit ： NT$ B

	「Distribution Business」main accounts Unit：NT$ B
Int. bearing debt AP Other debt Equities	28.52 24.57 24.34 24.41 23.96 23.87 24.79 25.10 25.36 25.72 24.92 1.53 2.45 1.51 1.82 1.96 1.68 2.75 2.40 4.27 4.09 6.32 6.69 9.13 9.06 7.41 8.62 11.32 10.67 12.99 12.26 13.51 12.12 10.37 13.78 13.02 12.35 9.12 9.81 7.12 10.27 8.91 5.43 4.23 47.12 49.92 47.93 45.99 46.68 45.33 43.66 50.76 50.79 48.74 47.58
	2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018H1
Current ratio 191.23% 142.99% 145.55% 152.40% 156.76% 146.50% 152.52% 143.71% 146.15% 153.66% 150.64% Quick ratio 149.51% 113.13% 113.32% 117.77% 121.60% 111.43% 113.23% 97.51% 107.72% 110.29% 102.64% Debit ratio 39.47% 50.79% 49.22% 46.92% 45.12% 48.86% 45.32% 50.55% 50.08% 47.24% 47.62% Net Int. bearing debt / equity 36.38% 56.08% 53.52% 50.60% 38.06% 41.10% 28.72% 40.92% 35.13% 21.09% 16.96% Book value per share (NT$) 13.84 15.19 15.05 15.09 14.81 14.76 15.33 15.52 15.68 15.90 15.41

• ， Cumulative consolidated numbers were reviewed by CPA (2018H1:end of June others end of the year)

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Dividends Policy

										Unit：NT$
Distribute year	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Operating year	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
EPS	1.14	1.42	1.47	1.50	1.28	0.97	1.56	1.38	1.44	1.59
Cash dividends (share)	1.10	1.32	1.32	1.35	1.15	1.00	1.20	1.25	1.30	1.40
Stock price(ave.)	13.71	14.88	18.37	14.81	14.85	14.33	16.86	17.57	16.52	18.62
Yield rate	8.02%	8.87%	7.19%	9.12%	7.74%	6.98%	7.12%	7.11%	7.87%	7.52%

21

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

Q & A

22

==> picture [144 x 33] intentionally omitted <==

==> picture [539 x 75] intentionally omitted <==

==> picture [478 x 32] intentionally omitted <==

==> picture [43 x 107] intentionally omitted <==

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

23