WINMATE INC Enabler of Enterprise Mobility 3416 TT INVESTOR PRESENTATION May 2021

COMPANY SNAPSHOT

Winmate Inc. (3416 TT)

We are a pioneer in rugged mobile computing technology, particularly in rugged tablet. We have provided business leaders with reliable, mobile, rugged solutions made for the most challenging industrial conditions worldwide.

2020 Total sales: USD65m 2020 Gross margin: 35% 2020 ROE: 12% 2020 Net cash: USD35m Market Cap: USD186m Net cash to equity: 46%

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400+ Employees 50+ Distribution Channels Worldwide (ODM, OEM, Direct, SI) 150+ R&D Engineers

EXECUTIVE SUMMARY

Winmate to see rapid multi-year growth from the Enterprise Mobility trend

2020 was a big year for us, as we garnered two of the biggest rugged tablet orders in play in the market from two Tier 1 clients, solidifying our position as a key enabler of Enterprise Mobility and as a leader in the global rugged tablet solutions market. We aim to become the World #1 rugged tablet solution provider and to achieve 20-30% annual revenue growth for the next few years, as we make further market share gains and benefit from the global trend towards Enterprise Mobility.

Continue to attack key verticals with our market-ready solutions

As our economies of scale continue to rise, our plan is to aggressively attack key verticals to further enhance our scale efficiency and operating leverage. Most solutions are customized for certain verticals, so the use-case within each vertical will be similar from one company to the next. As time to market is key, this offers us a head start.

High growth, high net-cash-to-equity ratio, robust dividend policy

We aim to achieve 20-30% revenue growth per annum for the next few years and we also have a strong balance sheet. 1Q21 net-cash-to-equity was 41%. We are committed to return earnings back to our shareholders, having paid out an average of 103% of annual net income over the past 5 years. We expect our payout ratio to be around 75%+ going forward.

Key concept: Enterprise Mobility Industry Outlook

A G E N D A

Who we are & What we do Growth Strategy Commitment to Sustainability Financial Performance

ENTERPRISE MOBILITY

KEY CONCEPT: ENTERPRISE MOBILITY

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01

Enterprise Mobility is an approach to work in which employees can do their jobs from anywhere using a variety of devices and applications.

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Commonly refers to the use of mobile devices, such as smartphones and tablets.

MORE MOBILITY NEEDED FROM THE INDUSTRIAL SPACE

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Early adaptors of Enterprise Mobility in the industrial space are the Utilities, Mining, Oil & Gas, and Field Service industries due to their widely dispersed 03 workforce. Rugged tablets have become indispensable due to their portability. mobility.

As the smart manufacturing transformation takes hold, more and more manufacturing companies are using rugged tablets for enhanced mobility on the production line, as well as in warehouses and service centers.

INDUSTRY OUTLOOK

RUGGED TABLET OFFERS THE MOST MOBILITY IN ENTERPRISE MOBILITY

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Rugged Tablet
&
Rugged Notebook
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We look only at the industrial segment (global rugged display market) under Enterprise Mobility. The market size is about US$7.5bn with growth of 6-7% per annum.
The Global rugged display market encompasses rugged display, rugged PDA, rugged tablet, and rugged NB.
Within the industrial space, the Enterprise Mobility transformation is causing a demand shift towards rugged tablet and rugged NB, from stationary products such as rugged display and Embedded PC.
The shift to rugged tablet is especially apparent.

Source: Market study report, Winmate estimates

ENTERPRISE MOBILITY – RUGGED TABLET THE BIGGEST BENEFICIARY

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Rugged Tablet Market
US$2bn
US$1bn
•
We expect double-digit YoY growth within the rugged tablet
segment and its market size could double in 5 years ;
•
We believe our overall sales can grow at around 20-30% per year
on the back of the Enterprise Mobility Transformation and
market share gain versus our Japanese peers ;
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2021

2025

WHO WE ARE & WHAT WE DO

WHAT IS A RUGGED TABLET?

Rugged tablets are designed to withstand hard knocks, long drops, high or low temperatures, moisture, dust and even explosions (for oil rigs or military usage) , yet still provide a great user experience.
Rugged tablets have been put through rigorous testing to make sure they can survive extreme conditions. A few examples of mission-critical uses are oil and gas, marine, military, aerospace, and medical.
Other key rugged tablet use cases are production lines, field service, logistics and warehouses.

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MILESTONES & TRANSFORMATION

Bid for Mercedes Benz worldwide service centers rugged tablet Apple launched orders (large quantity) 1[st] generation iPad but failed

Transformation into an IPC company

1996 2005

2008

2010

2014

2019

Started out as Touch Winmate was one First major panel (ELO) distributor of the first to breakthrough with in Taiwan successfully Mercedes Benz develop rugged (small order) tablets

Five years later, Winmate beat all other vendors and won a multi-year contract to supply Mercedes Benz service centers globally Many new order inquiries soon followed…

OUR PRODUCTS – TOUCH DISPLAY CENTRIC SOLUTIONS

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Transportation Warehouse & Logistics Vehicle Diagnostics Healthcare
8”~10.1” 7”~10.1” 11.6”~13.3” 4.3”~13.3”
Rugged Tablet Series Vehicle Mounted Computer Series Ultra Rugged Tablet Series Medically Certified
Rugged Tablet Series
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KEY CUSTOMERS

SALES BY PRODUCT TYPE SALES BY BRAND (2020)

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NT$m Industrial Display / Rugged Display
Rugged Tablet / Embedded Computing
Others
1,846
2,000 1,666
1,565
14%
15%
1,500 18%
1,000
82%
82%
78%
500
4%
4% 3%
0
2018 2019 2020
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2020 SALES BY REGION

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15%
39%
ASIA
8%
EUROPE
35%
TAIWAN
AMERICAS
3%
OTHER REGIONS
16
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2021 FOCUS INDUSTRIES & MARKETS

25% Warehouse & Logistics Vehicle Diagnostics 31% Electric Vehicles

10%[Industrial Automation] Healthcare 7% Applications

Field Service Heavy Duty Vehicles 20% Oil & Gas/ Public Safety 7% Military/ Marine/ Aviation

GROWTH STRATEGY

OUR RUGGED SOLUTIONS ARE GAINING MOMENTUM

Opportunities in Enterprise Mobility – Companies, manufacturing facilities, even mission critical industries are all collecting Big Data.
Rugged tablets are the best way to collect data due to their portability. We are attacking key verticals with market-ready solutions.

Industrial Market (Full Rugged & Ultra Rugged)

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Mobile computing for Vehicle Warehouse & Logistics for
Diagnostics (810G/IP65~68) inventory management
Ultra-Rugged Tablet with Rugged Handheld Tablet
Automation Industrial Warehousing Field Service Oil & Gas VIBRATION 4 ft.DROP SHOCK
& Logistics Chemical
(IIOT)
ATEX and C1D2, Zone2
MIL-STD-810G/810F
collecting data in remote
certified rugged design
rig and pipeline locations for Aviation
Food &
Heavy Duty Transportation Public Safety
Beverage
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Mission Critical (Military Standard & Medically Certified)

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Marine Military Healthcare
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Meet the regulatory requirements of the Marine industry (IEC60945/IACS-E10/DNV)

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Military-grade Healthcare-grade (C1D2/ATEX/461F/810G) for (UL60601/ISO13485) challenging tasks and tough Rugged Tablet 19 environments

WHY CUSTOMERS CHOOSE WINMATE

Client-centric design philosophy yields accurately defined products

In-house lamination process to ensure best touch module quality

Different from traditional R&D led design, our design philosophy is based on what the end client needs (the process is led and defined by our Chairman), resulting in products best suited for each niche/specific use case. Many clients also use our market-ready solutions due to their well-defined specs, thereby eliminating 1.5-2 years of design process and certification time.

Given that our DNA is from touch panel, we understand the importance of touch module as it is the only human machine interface (HMI) for tablets. Our in-house touch module ensures high standards in touch sensitivity, light transmittance and product longevity.

Modularized functions and features

The most complete line of rugged tablet solutions

Customization is key. We are able to customize features and functions for end customers specific needs and usage, resulting in superior products and faster time to market (faster time to market by 3-6 months)

Our rugged tablet product line ranges from 4.3” to 13.3”. The most complete line in the industry. We have custom solutions for all key applications.

KEY ENTRY BARRIERS FOR RUGGED PRODUCTS

Strong rugged design team

In order to meet extreme environmental challenges, such as extreme temperatures, sunlight, dustproof, waterproof, explosions, etc.

Talented Software team System Integration Experience

Own lab to simulate tests for certifications

To enable our products to connect seamlessly to other IoT industrial applications

Our rugged mobile devices are designed to function as part of a larger system Decrease time to market when we can perform all the tests to ensure product certification by third parties goes smoothly

Manufacturing capability

We hold multiple production certifications needed to manufacture embedded systems and rugged products such as ISO 9001, 13485, 14001, IECQ QC80000, ATEX IECEx C1D2, etc. In-house developed testing program to ensure high product quality

OUR NEXT STEP: RUGGED NOTEBOOKS

Oligopoly industry dynamic with a TAM of about US$2.5-3bn

We know this market – Some of our rugged tablet customer base overlaps with that of rugged notebook

We already own rugged notebook design knowhow for rugged exteriors, heat dissipation, internal structure, testing and certifications

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COMMITMENT TO SUSTAINABILITY

CONTINUED ESG EFFORTS

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Materials Sourcing:

Adopted IECQ/QC 080000:2017 Hazardous Substance Management System
Comply with RoHS, REACH and regulations of SVHC
Prohibit use of conflict materials

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Supply Chain Management:

Supplier evaluation system implemented
Follow the Code of Conduct of the Responsible Business Alliance (RBA)

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Customer Privacy Protection:

Regularly conduct annual customer satisfaction surveys to ensure that we judiciously incorporate feedback and maintain strong relationships.
Vigilant in protecting customer privacy and customer information.

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Green Manufacturing:

Adopt ISO 14001:2015 Environmental Management System Certification and ISO 14064 Greenhouse Gas Inventory
CO2 emission intensity has decreased 16.28% in 2019 compared to the base year in 2016.

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CO2e (ton) CO2e/Revenue (ton/NT$mn)
850 0.559 0.567 1
0.505 1
0.468
1
750 0
0
753 803 790 779 0
650 0
2016 2017 2018 2019
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Total Energy Consumption (MWh)
1400 Energy/Revenue(MWh/NT$mn) 0.930
1300
1200 0.880
1100 0.893 0.786 0.830
1000 0.761
0.780
900
0.730
800 1,264 1,230 1,268
700 0.680
2017 2018 2019
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Employee Diversity:

As of December 2019, the number of employees was 353, with 45% female staff members.

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Female Male Female/Male (%)
500 45% 45% 48%
450 44% 46%
400 42% 44%
350 41% 42%
300
40%
250200 194 191 183 190 193 38%
150 36%
10050 138 131 142 158 160 34%32%
0 30%
2015 2016 2017 2018 2019
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Employee Health & Safety:

Occupational health and safety committee consists of 10 members, 6 of which are workforce representatives.
No fatal occupational accidents in 2019, and only two minor incidents.

FINANCIAL PERFORMANCE

REVENUES & MARGINS

1Q21 Revenues and Margins

1Q21 Revenue reached a record high of NT$585m, increasing 67% YoY and 3% QoQ.
1Q21 Gross Margin was 34.3%, increasing from 32.3% in 4Q20. Operating margin was 17.8%, increasing from 14.8% in 4Q20. Net margin was 14.0%, increasing from 12.3% in 4Q20.

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NT$m Quarterly Revenue Trend Quarterly Margin Trend
600 80% 45.0% 25.0%
450 50%
35.0% 20.0%
300 20%
25.0% 15.0%
150 -10%
0 -40% 15.0% 10.0%
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Revenue (NT$m) Growth(YoY) Gross Margin (LHS) Operating Margin (RHS) Net Margin (RHS)
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EARNINGS & GROWTH

1Q21 Earnings and Growth

1Q21 Operating Income reached a record high of NT$104m, increasing 84% YoY and 23% QoQ.
1Q21 Net Income and EPS also reached a record high. Net Income rose 56% YoY and 17% QoQ to NT$82m. EPS rose 55% YoY and 16% QoQ to NT$1.13.

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NT$m NT$
Earnings & Growth Trend EPS
120 75% 1.50
90 50%
1.00
60 25%
0.50
30 0%
0 -25% 0.00
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Operating Profit Net Income to Parent Net Income Growth(YoY) EPS
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CONSOLIDATED INCOME STATEMENT – 1Q21

NT$ million	1Q21	4Q20	1Q20	QoQ	YoY
Net Revenue 585 568 350 3 67
Gross Profit 201 184 136 9 47
Gross Margin 34.3% 32.3% 38.9%
Operating Expenses 96 99 80 (3) 21
SG&A percent of Sales 16.5% 17.5% 22.7%
Operating Income 104 84 57 23 84
Operating Margin 17.8% 14.8% 16.2%
Net Non-Operating Income (Loss) (2) 3 9 (154) (120)
Pre-Tax Income 102 88 66 17 55
Income Tax Expense 20 18 13
Minority Interest 0 0 0
Net Income to Parent 82 70 53 17 56
Net Margin 14.0% 12.3% 15.0%
EPS(NT$) 1.13 0.97 0.73 16 55

ROE (annualized) 14.5% 12.9% 9.6%
Depreciation & Amortization 14 12 8
CAPEX 5 6 5

CONSOLIDATED BALANCE SHEET – 1Q21

NT$ million	2021/3/31	2021/3/31	2020/12/31	2020/12/31	2020/3/31	2020/3/31
	$	%	$	%	$	%
Cash and Cash Equivalents 838 25 426 15 457 18
Notes and Accounts Receivable, Net 333 10 234 8 158 6
Inventories 451 14 443 16 286 11
Other Current Assets 620 19 610 22 614 24
Fixed Assets 952 29 955 35 952 38
Other Long-term Assets 92 3 97 4 82 3
Total Assets 3,286 100 2,765 100 2,548 100
Notes and Accounts Payable, Net 210 6 255 9 127 5
Other Current Liabilities 282 9 296 11 215 9
Non-Current CB Payable 480 15 0 0 0 0
Other Non-Current Liabilities 16 0 12 0 10 0
Total Liabilities 987 30 563 20 352 14
Common Stock 725 724 722
Total Equity 2,298 70 2,202 80 2,196 86
Book Valueper Share(NT$) 31.7 30.4 30.4
Key Indices
Current Ratio ( Current Assets / Current Liabilities) 456% 311% 443%
Net Cash to Equity 41% 46% 47%

FINANCIAL HIGHLIGHTS

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NT$m
Annual Revenue Trend
2,000
10.8%
10.6%
1,750 6.4%
5.1%
1,500
-11.2%
1,250
1,347 1,415 1,565 1,666 1,846
1,000
2016 2017 2018 2019 2020
Revenue Growth(YoY)
NT$
EPS & ROE
4.00
3.00
11.3% 11.3% 11.7%
9.8%
2.00
7.2%
1.00
3.06 2.18 2.84 3.34 3.55
0.00
2016 2017 2018 2019 2020
EPS ROE
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Annual Margin Trend

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20.0% 40.0% 25.0%
38.4%
36.9%
35.3% 34.9%
34.4%
10.0% 35.0% 20.0%
16.3%
15.7% 15.8%
0.0% 30.0% 12.9% 15.0%
11.5%
14.5%
13.7% 13.9%
13.1%
-10.0% 25.0% 10.0%
9.5%
-20.0% 20.0% 5.0%
2016 2017 2018 2019 2020
Gross Margin (LHS) Operating Margin (RHS) Net Margin (RHS)
NT$
Dividend Payout
20.0% 4.0 160%
15.0% 3.0 134% 120%
113%
10.0% 2.0 98% 80%
92% 90%
5.0% 1.0 40%
3.0 2.5 2.6 3.0 4.0
0.0% 0.0 0%
2016 2017 2018 2019 2020
Dividend per share Payout %
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INCOME STATEMENT HIGHLIGHTS

NT$ million	2016	2017	2018	2019	2020	YoY (%)	YoY (%)	YoY (%)	YoY (%)	YoY (%)
						2015	2016	2017	2018	2019
Sales Revenue	1,347	1,415	1,565	1,666	1,846	(11.2)	5.1	10.6	6.4	10.8
Gross Profit	517	487	553	615	645	(11.0)	(5.7)	13.6	11.2	4.8
Operating Profit	212	163	203	272	291	(15.8)	(23.0)	24.2	34.2	7.1
Net Non-Operating Income (Loss)	4	(11)	39	15	16	339.7	(397.7)	-	(60.8)	6.2
Pretax Income	216	152	242	287	308	(14.6)	(29.3)	58.7	18.8	7.1
Net Income	184	134	205	241	256	(13.0)	(27.0)	52.4	17.6	6.2
EPS (NT$)	3.06	2.18	2.84	3.34	3.55	(13.1)	(28.8)	30.3	17.6	6.3

Gross Margin	38.4%	34.4%	35.3%	36.9%	34.9%
Operating Margin	15.7%	11.5%	12.9%	16.3%	15.8%
Net Margin	13.7%	9.5%	13.1%	14.5%	13.9%
ROE	11.3%	7.2%	9.8%	11.3%	11.7%

BALANCE SHEET HIGHLIGHTS

NT$ million	2016	2017	2018	2019	2020	Percent of total assets (%)	Percent of total assets (%)	Percent of total assets (%)	Percent of total assets (%)	Percent of total assets (%)
						2016	2017	2018	2019	2020
TOTAL ASSETS	1,929	2,473	2,502	2,485	2,765	100.0	100.0	100.0	100.0	100.0
Cash	617	1,096	762	433	426	32.0	44.3	30.5	17.4	15.4
NR & AR	120	157	210	194	234	6.2	6.3	8.4	7.8	8.5
Inventory	236	281	289	254	443	12.2	11.3	11.6	10.2	16.0
Fixed Assets	511	496	495	487	955	26.5	20.0	19.8	19.6	34.5
TOTAL LIABILITIES	307	367	405	326	563	15.9	14.8	16.2	13.1	20.4
NP&AP	148	197	182	84	255	7.7	8.0	7.3	3.4	9.2
TOTAL EQUITY	1,621	2,106	2,097	2,159	2,202	84.1	85.2	83.8	86.9	79.6

A/R turnover days	34	36	43	44	42
Inventory turnover days	92	102	103	95	106
A/P turnover days	58	68	68	46	52
Cash conversion cycle	68	70	77	92	97

DIVIDEND PAYOUT & CAPEX

NT$ million	2016	2017	2018	2019	2020
Net profit	184	134	205	241	256
Dividend Paid	181	180	188	217	290
DPS (NT$)	3.0	2.5	2.6	3.0	4.0
Payout ratio	98%	134%	92%	90%	113%
Dividend yield	4.9%	4.4%	4.7%	4.9%	5.0%
Capex	49	18	12	488	30
Capex/Sales	3.6%	1.3%	0.8%	29.3%	1.6%

Note: 2016-2019 Yield calculated using market cap on the day prior to ex-dividend date. 2020 Yield calculated using market cap on 2021/4/29.

SAFE HARBOR STATEMENT

The following presentation contains projections and statements related to future business performance developments involving Winmate Inc. that may be seen as forward-looking statements. Actual events and results may differ materially from what is projected in the forward-looking statements and are subject to several risks and uncertainties what are beyond Winmate's control.

The forward-looking statements in this report reflect the views of Winmate as of the date they are made. Winmate Inc. does not intend, nor are obligated to revise or update these forward-looking statements in light of new events or information.