WELLTEND — Interim / Quarterly Report 2017

Nov 22, 2017

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TWSE Code: 3 0 2 1

2017Q3 Co mp a ny I nfo r matio n

2 0 1 7 / 1 1 / 2 2

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Disclaimer

The information on this document is intended to be for reference and general information purposes only. It does not purport to be comprehensive nor to provide any investment or other professional advice. Welltend Technology Corporation does not warrant or represent that such information is complete, accurate or up to date. Users should base on the public information or announcement in Market Observation Post System(MOPS), to find the financial and business information. If there is any inconsistency or ambiguity between the English version and the Chinese version, the Chinese version shall prevail.

Agenda

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About Wire Harness System Performance Q & A
Wellend Business Group Integration and Prospects
Business Group
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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

System integration business group ：

Wire harness business group ：

Provides system integration and IT services, with a complete product line and total solution. Welltend takes the leading position in enterprises and government.

With more than decades of experience, Welltend has insight in the industry needs. Products need to be tested by strict testing procedures. Provides customers with stable and reliable products, with the real-time support .

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Welltend WELLTEND has a strong management team and excellent RD capabilities, with vision and execution, towards future advanced investment.

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Histroy	Histroy
	Established	1993	．Cradle Technology was established ．IT products agents, sales and service
		2000	．Share listed in OTC market (Taipei Exchange)
	development
		2002	．Share listed in main board (TWSE)
		2008	．Name changed to Welltend Technology
	Restructure
		2009	．Wire harness group joined
		2010	．Invested in Shenzhen area
	Transition	2011	．Invested in Hunan, Kunshan
		2013	．Invested in Huizhou
		2014	．Invested in Philippines
	Expanding
		2016	．Assigned new GM for two business groups
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Organization
Chairman
Remuneration Management Committee
General Manager
Management Center System Integration Business Group Wire Harness Business Group
1. Group information, business 1. IT system equipment sales, For local and international
strategy, investor smessage planning and setup market, wire harness and
2. Human resources, legal 2. MIS outsourcing, on site connectors business R&D,
affairs, information, engineer service manufacturing, promotion,
procurement, accounting etc. 3. System/software and sales
engineering project
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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

• Professional cable, harness manufacturing partners

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• Reliable and stable quality, affirmed by Japanese customers

• Applications

• -Home appliances, office automation machines, information technology, automotives, industrial use

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Appliances
Automotives
IT
MFP
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Plants Scene

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• East China

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Appliances, Air conditioning, TV Industrial control, transformers Consumer Electronics Medical equipments

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• South China

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、 headlight Video/Audio s y stem MFP, Printers

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• South East Asia

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MFP, Printers
Appliances
Consumer Electronics
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2001/09 Shanghai site ISO-9001：2000 2003/05 Shenzhen site ISO/TS16949：2002 2003/05 Shenzhen site SONY GP 2005/05 Shanghai site ISO-14001：2004 2009/10 Shanghai site ISO-9001：2008 2011/07 Shanghai site ISO/TS16949：2009 - 2012/02 K uns h an s it e ISO 9001 ： 2008 2014/11 Huizhou site ISO14001:2004 2015/01 Philippines site ISO-9001：2008 2015/08 Huizhou site ISO/TS 16949:2009 1994/02 Shenzhen site CSA/UL 1997/02 Shanghai site CUL 2012/02 Kunshan site CUL 2015/01 Philippines site UL

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

• Hardware and software

• HP、IBM、Dell 、Lenovo, full product line

• 、 、

• Cisco HP Extreme, network products

• IT solutions

• Business Process Management(BPMFlow)

• Geographic information services(GIS)

• Data leakage protection(DLP)

• 、 、

• Virtualization Network architecture Information Security Planning

• System maintenance

• MIS team management

• Information equipment management

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Back-up
National-wide Branch IT equipment procurement,
Installation & testing
IT System Environment Assessment, Design, Consulting
Help Desk
IT H/W Maintenance Srv.
Maintenance
•
[7x24 island wide service]
Srv. Provider
• [IT Asset Count]
Printing Resource •
[Service Performance Monitor]
Management
•
[H/W Status alarm]
•
[Provide IT Service Level Report]
Equipment Mgt
HW：Server、 PC、Printer
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ution
Total Sol
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服務範圍
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台北
新竹
台中
花蓮
台南
高雄
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• Banking, insurance

• Government, public service sectors

• Hospitals, schools and universities

• • Listed companies, foreign business in Taiwan

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

• Compound annual growth rate over the past three years: +11.6%

• For wire harness group: +10.0%

• For system integration group: +16.7%

• Stable gross margin brings reasonable profits

• Sector contribution(2016):

• Wire harness: 77%

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• System integration:23%

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System Integration Wire Harness Gross Margin (TWD, million)

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• Revenues in Q3 are 538 million, YoY: + 8.5%, cumulative growth rate: + 12.3%.

• The gross margin is 24.8%. The quarterly gross margin ratio in 2017 is between 23.9% to 24.8%.

• Pre-tax net profit of 35 million, Q3 EPS: 0.34, the cumulative EPS: 0.91.

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Revenue Gross Margin Earnings before Tax (TWD, million)

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Income	Income	Income	Statement	Statement	Statement	Statement	Summary	Summary	Summary	Summary
											TWD, Thousand
			2017Q3		2016Q3				Cumulative Q3 in 2017		Cumulative Q3 in 2016
			amount	％	amount		％		amount	％	amount	％
	Revenue		537,721		495,674				1,555,593		1,385,768
	Gross Margin		133,190	25	110,993		22		379,911	24	331,944	24
	Operating Exp		90,963	17	77,942		15		265,834	17	236,692	17
	Operating Income		42,227	8	33,051		7		114,077	7	95,252	7
	Other Income		(7,486)	(1)	2,420				(18,045)	(1)	5,213	2
	EBT		34,741	7	35,471		7		96,032	6	100,465	7
	Tax		2,055		5,157		1		9,453		19,882
	Net Income		32,686	7	30,314		6		86,579	6	80,583	6
	EPS		0.34		0.31				0.91		0.79
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• In the past three years, shareholders have received cash dividends or capital reduction, the return is more than 5%.

• Company policy: share profits to long-term shareholders.

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Year	2012	2013	2014	2015	2016
EPS	0.63	0.45	0.75	0.82	1.05
Dividend	0	0.2	0.7	0*	0.7
payment
				(*) Capital
				reduction: $1
Average share price	13.26	11.39	13.4	12.13	12.35
Cash dividend yield	0%	1.8%	5.2%	0%	5.7%
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WELLTEND strategy

– – Customer first, quality first, consistent growth with a reasonable profit

Wire Harness Group ：

• Enhance the proportion of company production in smart home appliances industry and automotives electronics industry

• Expand Product manufacturing base in Southeast Asia

System Integration Group ：

• Software/application development capability

• Improving service income, consultancy capability

• Data leak prevention issues

Build market share in Southeast Asia

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

Spokesman 林冠宇 Eric Lin Headquarter 黃小菁 Emmy Huang Email ir@welltend.com.tw TEL (02) 8768-2688 ext 8843 Website http://www.welltend.com.tw