Sporton International Inc. · TPEX:6146
Sporton International — Q2 2023 Earnings Presentation
39 slides from Sporton International's earnings presentation, Jan 15, 2023
Slide 1: SPORTON INTERNATIONAL INC.
SPORTON INTERNATIONAL INC. Finance Director - Grace Pan Special Assistant of the G.M. Office - David Chou Stock code 6146 TW
Slide 2: Outline
Outline 1 Industry Trends & Growth Momentum……………….. 2 Business Operation & Core Strengths………………... 3 2023 1H/Q2 Financial Analysis Report……………….. 4 Business Opportunities from Developing Technology………………………………………………………. 2
Slide 3: Industry Trends & Potential Growth Momentum
1 Industry Trends & Potential Growth Momentum 3
Slide 4: Industry Trends & Growth Momentum
Industry Trends & Growth Momentum Industry Trends ◼ MTK ： AI will not only be in the cloud, but will also be imported into all smart devices such as smart phones and cars. ◼ Edge AI：The investors analyze, that the future trend will be that the device side must bear part of the AI computing so that
Slide 5: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total Commercially available 2,039, 100% 1,650, 80.9% Industrial or Phones 1083 53.1% enterprise Fixed wireless access CPE 291 14.2% routers, gateways, or Modules 228 11.1% modems 8.1% Industrial or enterprise routers, 167 8.1% gateways, or mod
Slide 6: 5G Advance & 6G
5G Advance & 6G ◼ The first of 5G Advanced standards is expected to complete in 2024. ◼ 6G is expected to be standardized starting from Release 21. ◼ The first of 6G standards may finalize in 2028, followed by continuous improvement. 5 Source: https://www.ericsson.com/zh-tw/reports-and-papers/white-
Slide 7: Current Market Trends—Development of 5G+AIoT
Current Market Trends— Development of 5G+AIoT • 3GPP 5G Release Evolution 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Protocol Stage 3 Rel-17 Freeze Coding Freeze Package Stage 2 Protocol Stage 3 Rel-18 (Content) Functional Freeze Coding Approval Freeze Freeze • The latest version of 5G
Slide 8: 5G CA (Carrier Aggregation)
5G CA(Carrier Aggregation) CA(Carrier Aggregation) 5G CA 5G mmWave 20 MHz 10 MHz 5 MHz 5G Sub-6GHz 7 References: 電子工程專輯、FETnet
Slide 9: Wi-Fi 7
Wi-Fi 7 2007 2013 2019 2021 2024 Wi-Fi 4 Wi-Fi 5 Wi-Fi 6 Wi-Fi 6E Wi-Fi 7 802.11n 802.11ac 802.11ax 802.11ax 802.11be 1~7.25G 2.4G/5G 5G 2.4G/5G 2.4G/5G/6G (2.4G/5G/6G) 1.2Gbps X3 3.5Gbps X 2.7 9.6Gbps 9.6Gbps X 4.8 46Gbps 20/40/80/80+ 20/40/80/80+ 20/40/80/80+ 20M/40M 320Mhz 80/160 MHz 80/160 MHz 8
Slide 10: 5G + Wi-Fi 6E/7 + BT Integrated application
5G + Wi-Fi 6E/7 + BT Integrated application Smart Home Wi-Fi 7 + BT Smart TV Wi-Fi 7 Mobile Devices CPE/WFA Wi-Fi 7 + BT 5G NR mmWave + Wi-Fi 7 Wi-Fi Router Smartphone Wi-Fi 7 5G NR mmWave + Wi-Fi 7 10 Reference：5G Americas、GSA 、Ericsson 、DIDITIMES Research
Slide 11: SAR (Specific Absorption Rate)
SAR (Specific Absorption Rate) Head SAR Testing 12 Reference: Schmid & Partner Engineering AG, ResearchGate
Slide 12: Customized R&D and Sales of Passive Components
Customized R&D and Sales of Passive Components 1 Specialized Inductive Product Niche Market Provider Add Value to Our Products – Testing Specialization Provide R&D / Custom Solutions 2 Our safety testing specialization allows us RF: to offer better solutions, such as reducing o High-performance NFC
Slide 13: TLVR coupled inductors used in high-power AI servers
TLVR coupled inductors used in high-power AI servers According to industry analysis, due to the significant increase in power consumption, AI servers have higher inductance specifications, and the average unit price is about 5 times higher than that of ordinary servers. Due to the significant increa
Slide 14: Quality First Policy – Parts Department Outcome
Quality First Policy – Parts Department Strictly follows the ISO 9001 Standard to successfully fulfill our quality objectives and risk management standards. Manufacturing Product Completion Before Shipment 1 2 3 4 IQC IPQC FQC OQC (Incoming Quality Control) (In Process Quality Control) (Final Qualit
Slide 15: Heavy Current testing－Ultra-large 10-meter anechoic chamber
Heavy Current testing－ Ultra-large 10-meter anechoic chamber EMC Testing （Electromagnetic Compatibility） ◼ Radiation measurement ◼ Conduction measurement ◼ Tolerability measurement
Slide 16: Business Operation & Core Strengths
2 Business Operation & Core Strengths 15
Slide 17: Business Operation
Business Operation 92% Testing and Certification Testing and Certification 1 Mandatory Regulatory Compliance Following the guidelines and rules set by government organizations to legally launch a product. EMC (Electro-Magnetic Compatibility) Safety Inspection of battery, smartphone, communications,
Slide 18: Business Operation
Business Operation Testing and Certification Testing and 91% Certification 92% 2 Conformance and Performance Testing and Testing specifications of communication Technical Certification protocols required by phone carriers. Comprehensive testing and certification for 2G, 3G, 4G, and 5G devices Testin
Slide 19: Business Capacity
Business Capacity With 108 major testing facilities, Sporton has the highest testing capacity in the world. 966 semi-anechoic chamber (US standard) Fully anechoic chamber (European standard) SAR testing (Specific Absorption Rate) OTA Antenna performance testing Your Text Here Your Text Here Your Tex
Slide 20: Core Strengths—Deliver Excellent Service
Core Strengths— Deliver Excellent Service Service location in California Germany testing site 1.International Certification Co.(ICC): ICC is a wholly owned subsidiary. Founded in 2013, it has been profitable since 2014. 2. Sporton ShenZhen was founded in 2017. The lab 19 specializes in IoT testing.
Slide 21: 5G NR Case Counts
5G NR Case Counts 5G NR Case Counts Published by FCC SPORTON + ICC Published by NCC 38% 2023, 1H FCC 5G NR (New) SGS SPORTON + ICC 38 29% + CCS SGS + Compliance 18% Certification Services 18 14% SPORTON Nokia 3 2% (Kunshan) Inc 45.45% Morlab 2 1.4% 78% CAICT + China DEKRA Telecommunication 12 9% She
Slide 22: High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC
High-end Wi-Fi 6E/7 Devices Case Counts FCC Filling Projects(2023, 1H) Published by FCC Client Device Sporton + ICC 23 33.82% Element 12 17.65% Master FCC Filling Projects (2023, 1H) TUV 7 10.29% Master Device Audix 6 8.82% Sporton + ICC 20 44.44% Bureau Veritas 5 7.35% UL Bureau Veritas 9 20.00% UL
Slide 23: Regulatory OTA Field Trial
Regulatory OTA RegulatoryAuthorities- Antenna Performance Testing CE/FCC/NCC o CTIA (Cellular Telecommunications and Internet Association) o Telecommunication Network Comprehensive Operators in Europe/North 5G NR Testing America Laboratories Field Trial FTA Worldwide Telecommunication Conformance Te
Slide 24: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Standard-setting Civil Society Organizations Institute of Electrical Cellular Third Generation Partnership Global Certification and Electronics Telecommunications and Project (3GPP) Forum (GCF) Internet Associatio
Slide 25: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Certification Body National Certification Body International Laboratory Federal American Association for Conformitè Accreditation Cooperation Communications Laboratory Europë enne (CE) Mutual Recognition Arrangeme
Slide 26: Competitive Advantages
Providing 5G and telecommunication product 1 testing and certification services with the highest testing capacity in the world Designated testing laboratories by 2 5G and telecommunication chip manufacturers Competitive Designated testing laboratories by Advantages 3 top smartphone and telecommunica
Slide 27: Major Clients
Major Clients Qualcomm T=5Lq AMazon OO Meta G gl BE Microsoft AA) @ Verifone \t.ZEBRA nest ‘Ht otomtom 1 ] i s OPTION intel. if Telit, Rackchia “Ye SIERRA dorog VERTU SONY MITSUMI HUAWEI OPPO VIVO realme GIONEE @.... ZTE MEIZU Fibccom Haier MEI INGTEC// RQUECTER Foxconn FIH D-Link NTC a /eUS GARMIN.
Slide 28: Environmental, Social, Governance
o Compared with 2021, in 2022, the electricity consumption Environmental reduced 0.68%; paper consumption reduced 42%, reducing 7.92t of CO2e. o Perspective Plan: Installing a solar electric system at Hwaya; Building rainwater collection or air-conditioning condensate recovery systems; replacing old
Slide 29: SPORTON: A Third-Party Testing Laboratory with Integrity
SPORTON: A Third-Party Testing Laboratory with Integrity We endeavor to deliver timely and accurate testing results for all of our clients. 28
Slide 30: For Those WITHOUT Integrity and Quality…
For Those WITHOUT Integrity and Quality… X Fraudulent or non-compliant testing reports will increase the risk of being issued invalid certifications. X Disqualified products will impact clients’ product sales and consumer health. Recently, the Federal Communications Commission (FCC, US), National Co
Slide 31: 1H/2Q Financial Analysis Report
3 1H/2Q Financial Analysis Report 30
Slide 32: Consolidated Income Statement (2023 Q2)
Consolidated Income Statement (2023 Q2) 2023 / 2Q 2022 / 2Q 2023 H1 2022 H1 YoY YoY Amount ％ Amount ％ Amount ％ Amount ％ Total Revenue 1,190,863 100.00 1,278,501 100.00 -6.85% 2,481,175 100.00 2,513,851 100.00` -1.30% Gross Profit 641,255 53.85 719,084 56.24 -10.82% 1,346,731 54.28 1,387,477 55.19 -2
Slide 33: Quarterly Revenue and Profit
Quarterly Revenue and Profit 14 70.00% 12 60.00% 10 50.00% 8 40.00% 6 30.00% 4 20.00% 2 10.00% 0 0.00% 2020/1Q 2020/2Q 2020/3Q 2020/4Q 2021/1Q 2021/2Q 2021/3Q 2021/4Q 2022/1Q 2022/2Q 2022/3Q 2022/4Q 2023/1Q 2023/2Q Total Revenue 7.37 9.14 9.27 9.38 10.09 10.4 11.64 11.08 12.35 12.79 13.16 11.86 12.9
Slide 34: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 1.44% 8.20% 9.94% 8.65% 8.87% 7.91% 5.10% 9.31% 10.93% 2.83% 4.59% 4.68% 3.21% 3.11% 4.35% 13.91% 23.50% 18.46% 22.66% 16.87% 20.72% 26.76% 73.91% 63.20% 67.01% 62.41% 62.71% 68.37% 55.19% 2017 2018 2019 2020 2021 2022 2023/1
Slide 35: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 54.28% 48.59% 48.92% 50.03% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 39.02% 37.00% 31.46% 33.23% 30.57% 28.89% 28.36% 28.42% 28.45% 27.86% 25.58% 23.86% GPM exceeded 50% starting in 2021. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 36: EPS and Dividends during the last 11 years
EPS and Dividends during the last 11 years The after-tax EPS was $15.85 NTD in 2022. For each share, the board of directors has resolved to distribute a cash dividend of $11.0 NTD and stock dividend of $0.5 NTD. 15.85 11.01 0.5 8.50 7.65 7.53 7.71 7.58 8.03 7.27 5.25 0.0 4.83 0.2 0.1 0.1 0.1 0.0 0.5
Slide 37: Business Opportunities from Developing Technology
4 Business Opportunities from Developing Technology 36
Slide 38: Next-generation mobile communication technology and application scenarios
Next-generation mobile communication technology and application scenarios 2024~2028 Entering the 5G Advanced. Wi-Fi 7 products are quickly introduced into various terminal applications, and will become the mainstream specification in 2024. AI applications will quickly penetrate into various wireless
Slide 39: THANK YOU
THANK YOU Should you have any questions, please contact David Chou via email (davidchou@sporton.com.tw) Presentations over the years
Sporton International — Q2 2023 Earnings Presentation on 6ix