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Gemtek Technology Co., Ltd. 2016 Results Investor Conference

Gemtek Technology Co., Ltd

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Page 1: Gemtek Technology Co., Ltd

Gemtek Technology Co., Ltd.

2016ResultsInvestorConference

Page 2: Gemtek Technology Co., Ltd

The following presentation may contain forward-looking statements regarding, among other things, our financial condition, future

expansion plans and business strategies based on our current expectations and projections about future events. Although we

believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks,

uncertainties and assumptions.

The company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new

information, future events or otherwise. The actual results could differ materially from those contained in these forward-looking

statements.

SafeHarborNotice

Page 3: Gemtek Technology Co., Ltd

• Established:1988

• Locationoffice:HsinchuIndustrialPark,Hsinchu,Taiwan(Headquater)

• GlobalTotalEmployees:≈3,500 (TWN:930 )

• Capital:NT$3.02Billion(US$95.04 Million)

FloorSpace:322,000SQFLandArea:215,000SQF

HsinchuHeadquarter

PlantSize:441,600.SQFLandSize:1,635,520.SQF

ChangShuPlant

PlantSize:330,000SQFLandArea:150,000SQF

KuShanPlant

PlantSize:102,000SQF

CzechRepublic

CertifiedSites:

ISO9001ISO14001OHSAS18001TL9000C-TPAT

AboutGemtek

Page 4: Gemtek Technology Co., Ltd

20161H3QFinancialResults

4

Page 5: Gemtek Technology Co., Ltd

20161H3QIncomeStatement

20161H3Q 20151H3Q

Amount% Amount%

SalesRevenue(k)- 10,895,600 100% 13,645,165 100%

GrossProfit(K) 1,682,350 15% 1,624,143 12%

OperatingIncome 237,738 2% 80,406 1%Non-Operatingincomeandexpense 253,094 3% 172,758 1%

NetProfitAfterTax(k) 417,618 3% 210,516 1%

EPSaftertax 1.40 0.70

Units:NT$Thousands;Consolidated

Page 6: Gemtek Technology Co., Ltd

20161H3QBalanceSheet

Asset20161H3Q

Amount%

CashEquivalents 2,859,832 20%

A/R 3,661,222 25%

Inventory 1,592,759 11%

OtherCurrentAssets 985,933 6%

Non-currentAsset 5,591,691 38%

TotalAssets 14,691,437100%

LiabilityandEquity20161H3Q

Amount%

Short-termborrowing 1,238,720 9%

A/P 3,181,596 21%

OtherPayables&CurrentLiabilities 701,800 5%

Non-currentLiabilities 1,154,564 8%

TotalLiabilities 6,276,680 43%

TotalEquity 8,414,757 57%

TotalLiabilities&Equity 14,691,437100%

Units:NT$Thousands;Consolidated

Page 7: Gemtek Technology Co., Ltd

20161H3QRevenueBreakdownbyProduct• Shipmentsof2productcategories,IntegratedProductsandTelecominfrastructure ,contributemorethan60% ofsalesrevenue.

• Newmarketexpansionforproductshipments:IoT ,Smartgateway,LTEmarket

TelecomInfrastructure

WiFi clients

Cloudfoundry

APRouters

IntegratedProducts

14~18%

40~45%

20~25%

6~10%

13~17%

Page 8: Gemtek Technology Co., Ltd

2016to2017MainDrivern TelecomInfrastructureprofitdriven: :

- LTECPE:Successfullydevelopnewcustomersandshipmentisexpectedtohavesignificantlygrowth.

- OnlyCat9/Cat12CPEs’manufacturerofHuawei.- Smallcellbasestation:Developnewcustomersandenlarge

producingquantitiesforcustomers.

n AP/Router- Startpromotingnew802.11ax,802.11ahproductsandkeep

developingnewcustomers.- RevolutionaryWifi products:Wholehomeandvoiceassistant

productssuccessfullydrawcustomers’attentionand massiveshippingcouldbeexpect.

- Marketsharewillhavephenomenalincrease.

Page 9: Gemtek Technology Co., Ltd

2016to2017MainDrivern Cloudfoundrydriven:- GIoT :- Broadenpenetrationgrowthinverticalmarketandtelcospace.- Agreatdealofdeploymentdemand from worldwide.- End nodes start largelyshipping.

- CooperatewithAxiataGroup- OneofAsia’slargesttelecommunicationsgroups– todeployLoRa systemin10countriesandtarget10milliondevicebase.

- SupportSIorSPtorealizeCloudserviceplatform,includinghardwareandsoftwaredevelopment,solutionlicense,systemoperation.

- IoT bringnewdemandofcommunicationmodulewhichbuildincustomizedproducts.

Page 10: Gemtek Technology Co., Ltd

ThankYou