Chief Telecom Inc. · TPEX:6561

Chief Telecom — Investor conference (April 2023)

44 slides from Chief Telecom's conference presentation, Apr 7, 2023

1. Slide 1: Chief Company Introduction

   Chief Company Introduction Stock Code：6561 Apr. 7, 2023 https://www.chief.com.tw

2. Slide 2: Company Profile

   CHAPTER 1 Company Profile

3. Slide 3: Chief Services Start Every Day of Your Life!

   Chief Services Start Every Day of Your Life! Digital Life DIGI LIFE 2.0 CLOUD COMPUTING Digital Content  Network IOT e-Commerce Big Data • Music/Video • Global Network • B2B/B2B2C • Smart Health • Digital Marketing • Games/News • High Speed Internet • O2O/Shopping • Public Opinion • Data Analysis

4. Slide 4: Chief Makes Your Life Smart, Easy and Fun!

   Chief Makes Your Life Smart, Easy and Fun ! Smart City Smart Manufacturing AI Robots Digital Finance Smart Smart Traffic Medical Control 4

5. Slide 5: 1. Chief Profile

   1. Chief Profile Founded Jan. 19, 1991 Capital NT$ 707,448,810 Major Products IDC Services Cloud Services Data Network Services Voice Services Exchange Services Telecom Operational License ISP、Internet 、LLC VPN 、 ISR 、070 VoIP International Bandwidth B&S World-class IDC Buildings Chief ESG Report Ce

6. Slide 6: 2. Company History

   2.Company History 1990 2022 1991 2016 2020 Founded Apr. - Chief Subsidiary awarded ISP/VPN Jan. - Newly added 20G network backbone to each of Japan and Singapore telecom license in Shanghai Jul. - Provide Oracle cloud DX to Tokyo 2000 Aug. -Promote Health Cloud service via Set up first IDC to 2017 C

7. Slide 7: 3. Company Positioning

   3. Company Positioning Specialization/ Sharing/ Collaboration/ Multi-winners Platform + Connectivity + Value + Carrier Neutral 7

8. Slide 8: 4. Platform+

   4. Platform+ © CHIEF | #4 SIDD+WA

9. Slide 9: 5. Connectivity+

   5. Connectivity+ Global Internet & Network Type I : Int’l Carriers HGC PCCW NTT GCX Type II : Singtel Telstra Submarine Operators Multiplier effect Type III: Int’l ICP & Cloud Service Providers Google AWS CHT FB TFN FET Azure Type Ⅳ: Domestic Carriers & ISP Chief and its customers’ services have str

10. Slide 10: 6. Value+ (Clustering Magnetic Attraction Effect)

    6. Value+ ( Clustering Magnetic Attraction Effect) Chief Telecom is based on carrier neutral position to attract domestic and international Ecosystem carriers, submarine cable operators, content providers and Customers cloud service providers of colocation in Chief IDC buildings. With platform and m

11. Slide 11: 7. Chief Telecom Flywheel

    7. Chief Telecom Flywheel 2024 Q1 New IDC in Service • Neutrality and Connectivity • IDC Alliance One-stop shopping for Platform and connectivity products and services, to support more Combined with professional Complete and rich ecosystem, application scenarios, and constancy service to More applic

12. Slide 12: 8. Major Customers

    8. Major Customers Domestic Carriers International Carriers Chief Solution Enterprise Customers Global Cloud Providers TPIX Members 12

13. Slide 13: 9. Corporate Governance & ESG Execution

    9. Corporate Governance & ESG Execution  Set up a corporate governance supervisor, Establishment of Sustainability Committee and Risk Management Committee  Complete 2021 ISO-14064-1 GHG emission inventory & certification  Complete 2021 ESG report and upload to the TWSE  In 2023, plan to raise th

14. Slide 14: Recent Years Finance Performance

    CHAPTER 2 Recent Years Finance Performance • Revenue & Gross Margin • Net Margin & EPS • Percentage of Dividends • Product Service Revenue Percentage 14

15. Slide 15: 1. Revenue & Gross Margin

    1. Revenue & Gross Margin Unit: NT$K 3,500,000 60.0% 3,000,000 50.0% 2,500,000 40.0% 2,000,000 30.0% 1,500,000 20.0% 1,000,000 10.0% 500,000 0 0.0% 2018 2019 2020 2021 2022 營業收入 2,272,362 2,400,002 2,564,649 2,801,046 3,080,306 毛利率 39.3% 42.0% 43.7% 44.8% 47.7% 15

16. Slide 16: 2. Net Margin & EPS

    2. Net Margin & EPS Unit: NT$ 14 30.0% 12 25.0% 10 20.0% 8 15.0% 6 10.0% 4 5.0% 2 0 0.0% 2018 2019 2020 2021 2022 每股盈餘(註) 7.41 7.83 8.67 9.75 11.85 淨利率 21.4% 22.75% 23.80% 24.52% 27.18% 16

17. Slide 17: 3. Percentage of Dividends

    3. Percentage of Dividends NT$ 14 12 10 10 9.3 8.8 8 8 7.5 6 4.97 4 2 0 2017 2018 2019 2020 2021 2022 Year Note：2022dividends include 9 dollars cash dividends plus one dollar stock dividend (total 10 dollars) 17

18. Slide 18: 4. Product Revenue Percentage

    4. Product Revenue Percentage 100.0% 11.0% 9.8% 8.6% 7.7% 11.9% 90.0% 8.4% 11.2% 13.5% 15.3% 16.1% 80.0% 70.0% 60.0% 52.3% 49.6% 47.6% 46.7% 45.0% 50.0% 40.0% 30.0% 20.0% 28.2% 29.1% 29.4% 31.2% 27.4% 10.0% 0.0% 2018 2019 2020 2021 2022 語音通信服務 雲端應用服務 數據網路服務 IDC機房服務 18

19. Slide 19: Product Line Introduction

    CHAPTER 3 Product Line Introduction 19

20. Slide 20: Product Line Introduction

    Product Line Introduction Chief Company Introduction https://youtu.be/GwYa4Bw9lnM IDC Service Data Service Cloud Service Exchange Center Voice Service ISO Information Security Quadruple Certification & DCOS-4 Certification 20

21. Slide 21: 1. IDC Colocation Services – Carrier Neutral

    1. IDC Colocation Services – Carrier Neutral  World-class carrier neutral IDC to provide high quality IDC services  World-class IDC SLA  Customized design and deployment  7X24hrs NOC  ISO & DCOS certified  Complete connection for L.Y. H.D. domestic/international optical network  Fiber ring am

22. Slide 22: 2.1 Data Service – Global Internet Services

    2.1 Data Service – Global Internet Services • Complete resources of domestic bandwidth and international bandwidth • An important internet service hub in Taiwan International Carriers Domestic Telecom TWGate & Submarine Cable Operators APBT CT Global Operators ICP/CDN HiNet HE FET GCX TFN TWIX Other

23. Slide 23: 2.2 Data Service Global IPLC & VPN

    2.2 Data Service Global IPLC & VPN (virtual private network) With forward-looking network deployment and complete enterprise solutions to expand global VPN services. Northern China Global VPN Network Beijing/Tianjin /Qingdao Vancouver Central China Seoul Tokyo Chongquing/Wuhan Chengdu/Hefei Eastern

24. Slide 24: 3.1 Cloud Service Comprehensive Solution

    3.1 Cloud Service _Comprehensive Solution PaaS Application Service Customer Service Portal Enterprise Cross-cloud & Hybrid Cloud Solutions SaaS Application Cloud Exchange Service Cloud Platform Security Industrial Applications Solution Enterprise Cloud Storage • Enterprise Business Applications • Bi

25. Slide 25: 3.2 Cloud Service IaaS Solution

    3.2 Cloud Service _ IaaS Solution Cloud Service - IaaS Level Cloud Customer Self- Cloud Cloud Storage Network Security management Computing Data Sharing Integration Detection Service VM SLB &Defense Cloud Application Service Deployment System Cloud Resource and Service Management System System Platf

26. Slide 26: 3.3 Cloud Service SaaS Application

    3.3 Cloud Service _SaaS Application _ Easy to control health status Chief i Health App Convenient collection of health data  "Personal Health Information"  Health Kit & Google Fit data collection management platform  Wearable and measuring device data upload  Chinese Smart Health Risk Analysis 

27. Slide 27: 4.1 Taipei Cable Exchange Center (TPCX)

    4 .1 Taipei Cable Exchange Center (TPCX) • Private cables (NCC licensed Pacnet/Telstra, TIGC, Reach, GCX) and consortium cables are connected in Chief IDC site, most of fixed network operators in Taiwan all set up PoPs in Chief IDC site for submarine cable interconnection. • Chief TPCX is only one p

28. Slide 28: 4.2 Taipei Internet Exchange Center (TPIX)

    4.2 Taipei Internet Exchange Center (TPIX) TPIX provides internet traffic exchange service for both international and domestic customers. TPIX is a world class Internet exchange hub. Social Search CDN F G AKI Network Engine Operator Cloud E-commerce A Multimedia N M Operator International TPIX ranke

29. Slide 29: 4.3 Chief Cloud eXchange (CCX)

    4.3 Chief Cloud eXchange (CCX) Public Cloud • High Speed • Safety • Compliance CCX Direct Connect Private & Secure Channel Public Internet Congestion & Security Risks Enterprise Data Center 29

30. Slide 30: 5. 070 Cloud PBX & ISR Services

    5. 070 Cloud PBX & ISR Services 070 VoIP: 1st choice for Cloud PBX Service Cross-Operator/Network/Platform/Device NCC E.164 Numbers for worldwide use. Support PC 、NB、Pad、Mobil phone Support mobile、ADSL、 VPN 、 Wi-Fi Cloud IP-Centrex Management Center Provide IP-Centrex Customer web portal to manage s

31. Slide 31: 6. Multi-Product Lines to Drive Growth Curve

    6. Multi-Product Lines to Drive Growth Curve TPIX APP Cloud SaaS High speed applications internet Vertically Enrich Product Complete Carrier Lines, Horizontally Multi- ICT solutions Platform, and Cross-border Neutral Strategic Layout - Multi-cloud/ Hybrid cloud Local data solutions storage Cloud Dir

32. Slide 32: 7. Leverage Chief Campus to Satisfy Cloud + Network + Security Demands

    7. Leverage Chief Campus to Satisfy Cloud + Network+ Security Service Demands Chief Campus Service Coverage: from point to line and area CSPs Upstream data service providers Cloud/Security Service Providers CHIEF Campus + Internet + IEPL Industry Application Chief Digital Service Providers’ Solution

33. Slide 33: Regional and Industrial Development Trends

    CHAPTER 4 Regional and Industrial Development Trends 33

34. Slide 34: 1. Center of The First Island Chain and East Asia Submarine Cable Systems

    1. Center of The First Island Chain and East Asia Submarine Cable Systems Physical Location Taiwan – Center of The 1st Island Chain Network Logical Location Tokyo Taiwan Submarine Cables Taiwan – Center of the Converge to Chief Major 3 Submarine Cable Hubs (Tokyo, HongKng, *Center of the 1st island

35. Slide 35: 2. Global Cloud and IDC Market Trends

    2. Global Cloud and IDC Market Trends Note1: Global cloud service market in 2022~2030 CAGR 17.43% (Source: Precedence Research); Amazon(34%)/Microsoft(21%)/Google(11%)/Alibaba(5%)/ IBM(3%) Top 5 CSPs account for 2/3 public cloud market (Source: Synergy Research Group) 。 Note 2: Global IDC service ma

36. Slide 36: 3. Global Trends for Digitalization

    3. Global Trends for Digitalization Imagine the future…. High speed global connectivity AI Robots data stream and transmission exchange will have explosive growth 6G IoT HPC Smart City Digital Life Cloud Service VR/AR 36

37. Slide 37: Business Development Focus

    CHAPTER 5 Business Development Focus 37

38. Slide 38: 1. Business Development Focus

    1. Business Development Focus Taiwan island-wide Chief Campus optical ring Smart Health Service Expand CCX and Cloud Partners Enrich Network and 4thIDC(LY2) Telecom Resources Domestic and Expand TPIX and International International Network Symbolic Leading Backbone Ring Customers SDWAN & East Asia C

39. Slide 39: 2. L.Y.2 IDC - Digital Convergence Center Connectivity Hub

    2. L.Y.2 IDC- Digital Convergence Center Connectivity Hub 2024 Q1 Commercial Service 16,500 sqm Floor Area 20 MW Power Capacity LRB Seismic Isolation Design (A series magnitude 7.0 earthquakes) Floor Loading 2,000 kg/m2 Green/Smart Building Design 39

40. Slide 40: 3. Located in The Center of East Asia to Attract Global Service-Providers

    3. Located in The Center of East Asia to Attract Global Service- Providers to Set up Regional Center Both Google & Microsoft already Set up Regional Data Centers in Taiwan Chief 4th IDC L.Y.2 Attract another Global Service Providers to Set up Regional Data Service Centers at L.Y.2 40

41. Slide 41: 4. Three Rings Three Lines - Domestic and International Network Resources

    4. Three Rings Three Lines - Sufficient Domestic and International Network Resources China North-east Asia Danshui Station Complete Domestic and International South-east Asia Bali Stration USA Optical Networks Japan Europe • Taipei Ring: optical fiber network to Taipei Hsinchu Ring connect 4 IDC bui

42. Slide 42: 5. Expand International Backbone and Cooperate with Partners in East Asia

    5. Expand International Backbone and Cooperate with Partners in East Asia 1 The 1st carrier The 1st IXP st neutral IDC in (TPIX) in Taiwan Taiwan Korea Japan China The 1st cloud The major exchange submarine Hong Kong Thailand cable India gateway in Philippines Taiwan gateway in Cambodia Vietnam Taiw

43. Slide 43: 6. East Asia Digital Convergence and AI, Cloud Business Application Center

    6、 East Asia Digital Convergence and AI、 Cloud Business Application Center Taiwan is located in the center of Eastern Asia region, through customer clustering magnetic attraction effect. The company vision of Chief Telecom is to become East Asia Digital Convergence & AI、Cloud Business Application Ce

44. Slide 44: 2F, #68, Ruiguang Rd., Nei-hu T: 886-70-1018-6688 Dist. Taipei 11491, Taiwan,

    11491 台北市 2F, #68, Ruiguang Rd., Nei-hu T: 886-70-1018-6688 chief.com.tw 內湖區瑞光路 Dist. Taipei 11491, Taiwan, F: 886-2-2657-6728 68 號 2 樓 R.O.C.

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