Sysgration Ltd. · TPEX:5309

Sysgration — Q3 2021 Earnings Presentation

39 slides from Sysgration's earnings presentation, Nov 16, 2021

  1. Slide 1: 2021/Q3 Investor Conference Sysgration Ltd.

    2021/Q3 法人說明會 Sysgration Ltd. (5309) Investor Relationship: Angel Dai sys5309@sysgration.com Sysgration Confidential 1 http://www.sysgration.com +886(2)2790-0088 2021/11/16

  2. Slide 2: Outline

    01 經營策略方向 Mark Lee 02 2021/Q3營運績效摘要 TF Hsieh Outline 03 營運成長動力 TF Hsieh 04 SDG永續發展與ESG TF Hsieh 05 Q&A Sysgration Confidential 2 http://www.sysgration.com 2021/11/16

  3. Slide 3: Business Strategy Direction

    經營策略方向 Sysgration Confidential 3 http://www.sysgration.com 2021/11/16

  4. Slide 4: Core Values

    企業核心價值 感 1 INTEGRITY誠信 知 Exhibit Honesty and Ethicality at all time CORE 2 PASSION熱情 感 動 Fuels our work and guides what we do Core Values VALUES 感 Dedicated to the success of 3 COMMITMENT合作 恩 our customers, employee and shareholders 感 4 INNOVATION創新 性 That makes a difference Sysgration Confidential

  5. Slide 5: Business Direction and Technology Advantages

    營運方向與技術優勢 Automotive Solutions Power and Energy Management Electric Vehicle 1. TPMS CAGR >9% 1 Energy Storage System Tire Pressure 2. Expected 6 million EVs in 3 1. ESS CAGR >25% 2021 Monitoring 2. Global Power Shortage 3. Bluetooth Patents Systems EV 3. Renewable Low Carbon Energy Li-Ion Based ESS

  6. Slide 6: Global EV Growth Trend

    全球電動車成長趨勢 Millions Global Passenger Car Sales EV % 90.0 100.0% Data Source: https://canalys.com/newsroom/canalys-global-electric-vehicle-sales-2020 80.0 90.0% 70.0 80.0% 70.0% 60.0 60.0% 50.0 50.0% 40.0 40.0% 30.0 30.0% 20.0 20.0% 10.0 10.0% - 0.0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2

  7. Slide 7: Industrial Vehicle IoT Applications

    工業車聯網應用 Products Offering CAGR: 5.6% Body Control Module(BCM) Mobile Device Terminal Vehicle Gateway Off Road ATV/UTV Construction Equipment CAGR: 4.2% Rugged Vehicle Terminal Vehicle Surveillance ADAS System Truck/Long Haul Truck CAGR: 13.1% Fleet Management Agriculture Precision Farming CAGR: 15%

  8. Slide 8: Metaverse Trend Opportunities

    元宇宙趨勢商機 Millions 4.5 4 3.9 3.5 3 Remote Mentor 2.5 2.11 2 1.5 Document Navigation 0.96 1 0.5 0.41 0.17 0.25 0 2019 2020 2021 2022 2023 2024 IIoT Visualization Source: Statista 2021 Sysgration Confidential 8 http://www.sysgration.com 2021/11/16

  9. Slide 9: Global Energy Crisis

    全球能源危機 Large Capacity of Energy Storage System Required Solar PV Power Factory Wind Power Hydro Power Community Smart Grid Metropolitan EV Charging Nuclear Power Thermal Power Sysgration Confidential 9 http://www.sysgration.com 2021/11/16

  10. Slide 10: LEO Satellite Communication Trend

    低軌道衛星通訊趨勢 SpaceX Starlink OneWeb Telesat Lightspeed Amazon Project Kuiper Launched 1,445 146 1 0 Planned 12,000 (FCC Approved) 2,000 1,600 3,236 30,000 (Pending) Service Start 2020 2021 2023 2026 Orbit (Frequency) 560 km (Ku-band) 1,200 km (Ku-band) 1,000 km (Ka-band) 590-630 km (Ka-band) Required C

  11. Slide 11: Corporate Sustainability ESG

    企業永續經營ESG What Sysgration Do For ESG 1. ESG Enabler: Expand business through light-weight, high-efficiency, low- Climate Change carbon-mission products to help the world reduce air pollution. 2. Participate and contribute to low-carbon initiative associations. Green Energy 3. Supplier Chain Manageme

  12. Slide 12: 2021/Q3 Operating Performance Summary

    2021/Q3 營運績效摘要 Sysgration Confidential 12 http://www.sysgration.com 2021/11/16

  13. Slide 13: Quarterly Revenue

    營業收入 800,000 NT$ K Quarterly Revenue Historical High YoY 86% 700,000 679,466 YoY 118% 590,482 600,000 YoY 72% 490,457 500,000 3X 407,835 400,000 364,373 341,958 300,000 284,571 269,912 264,828 220,692 214,806 200,000 100,000 - 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 202

  14. Slide 14: Quarterly Gross Margin and Ratio

    營業毛利 NT$ K % 140,000 Quarterly Gross Margin and Ratio 25.0 YoY 61% 127,064 120,000 21.7 YoY 104% 20.0 19.7 YoY 67% 104,001 19.7 100,000 18.4 18.8 17.8 17.6 87,484 17.3 79,032 80,472 15.0 80,000 60,000 52,374 50,821 10.0 10.2 40,000 37,178 8.2 22,566 5.0 21,809 3.7 20,000 12,815 - - 2019Q1 2019Q2 201

  15. Slide 15: Quarterly OPEX and Ratio

    營業費用 NT$ K % 160,000 Quarterly OPEX and Ratio 60.0% 140,000 49.2% 50.0% 120,000 42.8% 42.4% 40.5% 40.0% 100,000 34.5% 35.3% 80,000 30.0% 22.2% 22.1% 60,000 17.7% 20.0% 16.2% 40,000 14.0% 10.0% 20,000 - 0.0% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 Sysgration Confi

  16. Slide 16: Quarterly R&D Expense and Ratio

    研發費用 NT$ K Quarterly RD Expense and Ratio % 180,000 20.00% 160,627 160,000 155,444 140,000 128,953 14.91% 15.00% 116,991 120,000 111,747 12.11% 100,000 10.00% 80,000 8.84% 60,000 7.35% 6.65% 5.00% 40,000 20,000 - 0.00% 2017 2018 2019 2020 2021Q3 Sysgration Confidential 16 http://www.sysgration.com 2

  17. Slide 17: EBITA

    EBITA NT$ K Quarterly EBITA & Ratio % 80,000 YoY 300% 15.00% 8.98% 60,000 10.00% 7.04% 5.38% 40,000 4.02% 5.00% 1.82% 20,000 0.00% 0 -5.00% (20,000) -5.05% -6.39% -10.00% (40,000) -11.57% -15.00% (60,000) -13.18% -14.02% (80,000) -20.00% -22.15% (100,000) -25.00% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2

  18. Slide 18: Quarterly Profit (Loss) after Tax

    稅後淨利 NT$ K Quarterly Profit (Loss) after Tax 60,000 40,000 33,845 20,000 9,717 6,679 0 (6,793) (20,000) (15,430) (40,000) (39,661) (36,431) (60,000) (54,735) (59,229) (64,373) (80,000) (100,000) (106,422) (120,000) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 Sysgrati

  19. Slide 19: Quarterly EPS

    每股盈餘 NT$/Share Quarterly EPS 0.40 0.22 0.20 0.06 0.04 0.00 (0.04) (0.10) (0.20) (0.26) (0.24) (0.40) (0.36) (0.39) (0.43) (0.60) (0.70) (0.80) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 Sysgration Confidential 19 http://www.sysgration.com 2021/11/16

  20. Slide 20: Annual ROE

    股東權益報酬率 10.00% Annual ROE 5.90% 5.00% 0.00% -5.00% -10.00% -9.22% -15.00% Dupont Analysis 2019 2020 2021Q3 -20.00% Net Margin -27.32% -7.41% 2.86% Asset Turnover * 0.60 0.61 0.88 -25.00% Equity Multiplier -26.02% 1.57 2.04 2.36 * *annualized number of 2021Q3 -30.00% 2019 2020 2021Q3 Sysgration Confi

  21. Slide 21: Debt Ratio

    負債比 % Debt Ratio 70.00 60.00 57.64 51.06 50.00 40.00 35.53 30.00 2020/10 NT$500M Convertible Bond 20.00 10.00 0.00 2019 2020 2021Q3 Sysgration Confidential 21 http://www.sysgration.com 2021/11/16

  22. Slide 22: Growth Drivers

    營運成長動力 Sysgration Confidential 22 http://www.sysgration.com 2021/11/16

  23. Slide 23: Sysgration Overview

    系統電子綜觀 1977 600+ 40+ 4 5309 Founded Worldwide Years Locations TW Stock Employees Design & Taiwan - Taipie/NanKang Publicly Trade Manufacturing China - Huizhou/ZhenJiang Capital: NT$1.5 B Service Experiences Market Value NT$5.5 B • Sysgration • TS-16949 Certificated • Rear-Seat • BLE TPMS ODM for • U

  24. Slide 24: Target Markets and Main Products

    經營市場與主要產品 Automotive Solutions Power and Energy Management Rugged Head-Mount Tire Pressure AR Device Li-Ion Battery Pack Wireless Camera Monitoring Systems for Semiconductor Fab Li-Ion Based Around-View System Energy Storage Systems Infotainment System EV Battery Pack Body Control Module Industrial

  25. Slide 25: Global TPMS Regulations and Demand

    全球胎壓偵測器法規與需求 Country Car Sales Subtotal TPMS Legislation China 25,769,000 O USA 17,038,617 O Canada 1,928,468 O Germany 3,905,597 56,092,077 O Annual 300M Pcs OE Demands France 2,677,830 O plus 100M Aftermarket Demands UK 2,676,885 O Italy 2,095,680 O Japan 5,119,652 X India 3,464,125 11,247,347 X B

  26. Slide 26: High-Value Differentiated Innovation

    系統電子高價值差異化創新 WW 2nd WW 1st & #1 WW 1st Multi-Band Universal RF TPMS BLE TPMS Tri-Band TPMS Internal TPMS External TPMS Tire Mounted Sensor (TMS) Voice Display Voice Truck Trigger Tool Receiver Receiver Repeater for Truck Sysgration Confidential 26 http://www.sysgration.com 2021/11/16

  27. Slide 27: Global EV Growth Trend

    全球電動車成長趨勢 Millions Global Passenger Car Sales EV % 90.0 100.0% Data Source: https://canalys.com/newsroom/canalys-global-electric-vehicle-sales-2020 80.0 90.0% 70.0 80.0% 70.0% 60.0 60.0% 50.0 50.0% 40.0 40.0% 30.0 30.0% 20.0 20.0% 10.0 10.0% - 0.0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2

  28. Slide 28: Advantages of Lithium Batteries over Lead-Acid

    鋰電相較鉛酸之優勢 ◆ More Environment Friendly ◆ Less Hazard Substances ◆ Higher Energy Density ◆ Higher Power Density ◆ Smaller Volume ◆ Longer Lifecycle ◆ Lower Maintenance Cost ◆ Lower Air-Con Cost Sysgration Confidential 28 http://www.sysgration.com 2021/11/16

  29. Slide 29: Energy Storage Applications in Smart Grid

    系統電子儲能設備在智慧電網之應用 Large Capacity of Batteries Required Solar PV Power Factory Wind Power Hydro Power Community Smart Grid Metropolitan EV Charging Nuclear Power Thermal Power Sysgration Confidential 29 http://www.sysgration.com 2021/11/16

  30. Slide 30: SDG and ESG

    SDG永續發展 與ESG Sysgration Confidential 30 http://www.sysgration.com 2021/11/16

  31. Slide 31: SDG Implementation Status

    系統電永續發展目標執行狀況 Sysgration Confidential 31 http://www.sysgration.com 2021/11/16

  32. Slide 32: COVID-19 Vaccination Rate

    COVID-19疫苗施打率 Gender vs Vaccination Female 199 (51%) Male 207 (49%) • Taiwan Country 56% (as of 2021/11/30) vs. Sysgration 74% • Vaccination Dose: 406 Female 199 (49%) vs. Male 207 (51%) • Staff: 552 Female 319 (58%) vs. Male 233 (42%) • Staff well-being during COVID-19 pandemic No Layoffs, No Halti

  33. Slide 33: Green Energy and Low-Carbon Lightweight Products Drive Growth

    綠能與低碳輕量化產品帶動高幅經營成長 NT$M 800 1.2 679 1 700 590 0.8 600 490 0.6 500 0.4 408 400 364 0.04 0.22 0.2 312 0.06 265 285 270 0 300 221 215 -0.04 -0.2 -0.1 200 -0.39 -0.7 -0.24 -0.36 -0.43 -0.26 87.5 127 -0.4 79 80.5 104 100 52.4 50.8 -0.6 22.6 37.2 21.8 12.8 0 -0.8 Revenue GP EPS • Li-Ion Battery Storage Sy

  34. Slide 34: Green Design of Production and Packaging

    生產流程與包材之綠色設計 • Sustainable Production = Green Packaging Production Optimization, Cost Down, Green Material, Lightweight, Reduce Electricity Consumption • Sysgration China Factory Electricity LIGHT User = Carbon Emission Friendly • Sysgration Taiwan Factory Expand AUTOMATION = Climate Change Friendly

  35. Slide 35: Carbon Footprint and Energy Reduction

    碳足跡能源降耗 Carbon Consumption and Renewable Energy 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - HQ ZJS HZS NKS Total Electricity(kWh) 514,052 243,968 962,774 1,440,394 3,161,188 Electricity GHG(kg) 261,653 124,180 490,052 733,161 1,609,046 Water(m3) 2,234 1,377 6,138 7,162 16,9

  36. Slide 36: Corporate Governance Development Goals

    系統電公司治理發展目標 2022 CSR report assurance in 2022/Q4. 2021 To be top in 5% for 2022. Benchmarking on disclosing information and CSR indicators. 2020 Expecting ranked at level of Lower ranking 6%~20% for 2021. at level of 66%~80%. Taiwan Corporate Governance Evaluation System https://cgc.twse.com.tw/eval

  37. Slide 37: Commitment to Sustainable Operations

    系統電對於永續經營之承諾 ◆Light-Weight Solutions Customers’ ◆High Added Values Satisfaction Stakeholders’ ◆High Efficiency Benefits ◆Energy Saving Value Environment ◆Low Carbon Emission Differentiations Human Life Friendly Global Enhancement Sustainability ◆Battery Rejuvenation Sysgration integrates sustainabil

  38. Slide 38: Q&A

    Q&A Sysgration Confidential 38 http://www.sysgration.com 2021/11/16

  39. Slide 39: Thank You

    Thank You Sysgration Confidential 39 http://www.sysgration.com 2021/11/16

Sysgration — Q3 2021 Earnings Presentation on 6ix