Slide 1: Stark Technology Inc.(2480) 2020Q4 Investor Conference
Stark Technology Inc.(2480) 2020Q4 Investor Conference
Slide 2: Safe Harbor Notice
Safe Harbor Notice There are variety of factors which may influence statements or contents been drafted within this presentation, therefore we strongly recommend audience to refer to the information published on MOPS website in case any adjustment has been made.
Slide 3: STI General Information
STI General Information • Founded in 1993, public traded in 2001 • 521+ Employees • The largest domestic system integrator in Taiwan • One of Taiwan’s top 500 service enterprises company. • Rated as Taiwan’s top 6% - 20% company over the 6th Corporate Governance Evaluation • 2020/07 Included in the
Slide 4: Awards
Awards • 2020/10 Won the two awards of “2020 Executive Performance Evaluation'' and “2020 Best Partner'' by Far EasTone Telecom • 2019 Best Supplier of Taiwan Mobile and 2020 Best Supplier of Fubon Financial • Fortinet _2019 Self-improvement Award • Hitachi Vantara_FY19 Top Reseller of the Year • VM
Slide 5: STI Service Network
8 branch offices in Taiwan 3 branch offices in China 1 branch office in Vietnam US STARK in San Jose Stark Technology Inc. 5 Pi ha RAR BBR ZG)
Slide 6: Sales Operation – by Industries
Sales Operation – by Industries Sales BU Industry / Product / Region IBM products, High-tech industries, E-commerce, Finance, and BU1 Automobiles, the main area in Hsinchu and middle Taiwan. High-tech manufacturing, Defense, Military, and Traditional BU2 production, Education, the main area in Hsinc
Slide 7: We've been worked and working on:
We’ve been worked and working on: Cloud Services & Data Analytics Infrastructure internet Enterprises Enterprise/PC Factories Security Cloud Big Data & Cable Medical Enterprise Apps Computing Broadband Cloud Cloud Home/PC Data Integration Deep Learning SmartTV Buyers, Analytics Mobile APP 4G/5G Spon
Slide 8: Information Technologies
Information Technologies Portal Personalization Content Mgmt Single sign-on eCommerce Vertical Apps. Professional Enterprise Apps OSS, VAS High Freq. Trade ERP,CRM,SCM IoT Services MES, PLM Probe/CEM by Trade AML (Environmental Monitoring) MFG Telco FSI Travel Medical Gov’t Consulting Design Deploym
Slide 9: AI (Machine, Deep Learning)
AI(Machine、Deep Learning) Data Science Training Modeling Inference Who? : Auto ML Who? : AI Engineer Who? : End users . Rapid ML/DL modeling, . Process customization . Manpower constraint . ML/DL inference deployment STI : ML, DL computing hardware/software framework integration 3rd party alliance :
Slide 10: Managed Security Service Provider (MSSP)
Managed Security Service Provider(MSSP) Global CTI Platform Identity mgmt.@Cloud Security Gears Deployment STI & Fine tuning Security Services VA@Cloud On-Premise API Security@Cloud Security Services
Slide 11: Tel-Communication Technologies
Tel-Communication Technologies (5G) IP Core Network Small OTN/Metro OTN Small Cell SD-WAN Cell Gateway (Software-Defined WAN) (5G Back-Haul) (5G IP Core) CWDM/NG-PON (5G Front-Haul)
Slide 12: Meet up 5G + MEC@AI@Cloud
Meet up 5G + MEC@AI@Cloud Smart City GOV. Cloud Cloud@CN AI @DL,ML A/R, V/R Entertainment AI@DL,ML Training @Cloud Medical Autonomous Car Cloud Automobile AI @DL,ML Mobile APP FSI Cloud (Fintech, Blockchain) AI @DL,ML AI @DL,ML IoT MFG. Automation Industry 4.0 New Inference Feed MEC : Multi-Access E
Slide 13: Products & Solutions
Products & Solutions Info. Security Software Development Tools Resource MGMT. Data MGMT. Data Comm. Open Systems Telcomm. STI Professional Service Nokia Networks
Slide 14: Balance Sheet Overview (Consolidated)
Balance Sheet Overview (Consolidated) Units:NT$ thousand 2020/12/31 2019/12/31 2018/12/31 Item AMT % AMT % AMT % Cash and cash equivalents 1,348,404 24% 1,567,177 30% 1,310,169 26% Accounts receivable(including 1,108,125 20% 874,148 17% 838,305 16% contract assets) Inventories 1,957,859 34% 1,470,52
Slide 15: Income Statements Overview (Consolidated)
Income Statements Overview (Consolidated) Units: NT$ thousand 2020 Jan.-Dec. 2019 Jan.-Dec. Item AMT % AMT % YOY Revenues 5,542,811 100% 5,521,432 100% 0.4% Gross profit 1,377,627 25% 1,345,072 24% 2.4% Operating expense 834,206 15% 824,015 15% 1.2% Operating income 543,421 10% 521,057 9% 4.3% Other
Slide 16: Consolidated Revenues
Consolidated Revenues Units: NT$ thousand YoY QoQ YoY 0.4% 17.9% -0.6% 5,545,000 1,650,000 5,542,811 1,600,000 1,573,932 1,583,331 5,540,000 1,550,000 5,535,000 1,500,000 5,530,000 1,450,000 1,400,000 5,525,000 5,521,432 1,350,000 1,334,795 5,520,000 1,300,000 5,515,000 1,250,000 1,200,000 5,510,000
Slide 17: Consolidated Gross profit%
Consolidated Gross profit% QoQ YoY YoY 1.5pt 0.3pt 0.5pt 25.5% 25.3% 24.9% 24.9% 25.0% 24.8% 25.0% 24.7% 24.5% 24.6% 24.5% 24.0% 24.4% 24.4% 23.8% 24.3% 23.5% 24.2% 23.0% 24.1% 2020Q4 2020Q3 2019Q4 2020 2019
Slide 18: Consolidated Operating expenses
Consolidated Operating expenses QoQ YoY Units: NT$ thousand YoY 25.7% 2.4% 1.2% 300,000 860,000 834,206 253,261 840,000 247,287 824,015 250,000 820,000 25,470 26,428 201,437 800,000 200,000 23,576 93,676 780,000 98,780 150,000 760,000 227,791 740,000 220,859 100,000 177,861 720,000 700,000 740,530 5
Slide 19: Consolidated Operating income
Consolidated Operating income Units: NT$ thousand QoQ YoY YoY 24.4% -2.1% 4.3% 550,000 160,000 144,893 147,982 545,000 543,421 140,000 540,000 120,000 116,452 535,000 100,000 530,000 80,000 525,000 521,057 60,000 520,000 40,000 515,000 20,000 510,000 0 505,000 2020Q4 2020Q3 2019Q4 2020 2019
Slide 20: Consolidated Operating income%
Consolidated Operating income% QoQ YoY YoY 0.5pt -0.1pt 0.4pt 9.4% 9.9% 9.3% 9.3% 9.8% 9.2% 9.8% 9.2% 9.1% 9.7% 9.0% 9.6% 8.9% 8.8% 9.5% 9.4% 8.7% 9.4% 8.7% 8.6% 9.3% 8.5% 8.4% 9.2% 2020Q4 2020Q3 2019Q4 2020 2019
Slide 21: Consolidated Net income
Consolidated Net income Units: NT$ thousand QoQ YoY YoY 18.1% 11.9% 11.4% 140,000 510,000 137,442 500,000 497,618 135,000 490,000 130,000 480,000 125,000 122,843 470,000 120,000 460,000 116,363 450,000 446,501 115,000 440,000 110,000 430,000 105,000 420,000 2020Q4 2020Q3 2019Q4 2020 2019
Slide 22: Consolidated Net income%
Consolidated Net income% QoQ YoY YoY 0pt 0.9pt 0.9pt 9.0% 9.2% 8.7% 8.7% 9.0% 8.8% 9.0% 8.6% 8.8% 8.4% 8.6% 8.2% 8.4% 8.0% 7.8% 8.2% 8.1% 7.8% 8.0% 7.6% 7.4% 7.8% 7.2% 7.6% 2020Q4 2020Q3 2019Q4 2020 2019
Slide 23: Consolidated EPS
Consolidated EPS QoQ YoY YoY Units: NT$ 17.3% 11.2% 11.4% 4.80 1.35 4.70 4.68 1.30 1.29 4.60 1.25 4.50 1.20 4.40 1.16 4.30 1.15 4.20 1.10 4.20 1.10 4.10 1.05 4.00 1.00 3.90 2020Q4 2020Q3 2019Q4 2020 2019
Slide 24: Sales Revenue & Net Income
Sales Revenue & Net Income Sales Revenue Units:NT$ Net Income Units:NT$ thousand thousand 5,800,000 600,000 5,600,000 5,542,811 5,521,432 497,618 500,000 446,501 5,400,000 404,220 400,000 5,200,000 5,000,000 300,000 4,800,000 4,648,442 200,000 4,600,000 100,000 4,400,000 4,200,000 0 2020 2019 2018 2
Slide 25: EPS & Capital
EPS & Capital Units:NT$ EPS Capital thousand Units:NT$ 5 4.68 1,200,000 1,063,603 1,063,603 1,063,603 4.5 4.20 3.80 1,000,000 4 3.5 800,000 3 2.5 600,000 2 400,000 1.5 1 200,000 0.5 0 0 2020 2019 2018 2020 2019 2018 2020 2019 2018 ROE 17.69 16.42 15.64
Slide 26: Dividends Policy
Dividends Policy Dividends in recent years Units:NT$ Year 2020 2019 2018 2017 2016 2015 2014 Amount 4.3 4.45 3.42 2.62 2.1 2 2 EPS in recent years Units:NT$ Year 2020 2019 2018 2017 2016 2015 2014 Amount 4.68 4.2 3.8 2.56 2.25 2.02 2.01 Payout ratio in recent years Units:% Year 2020 2019 2018 2017 2
Slide 27: 2020 Sales Revenues by Type
2020 Sales Revenues by Type Peripheral PC 5% 1% Application Software 13% Consulting/Maintenance 28% System Platform & Application Server 14% Enterprise Network 23% Storage 16% Revenue:5.543billion
Slide 28: Comparison of Sales Revenues by Type
Comparison of Sales Revenues by Type 100% 1% 1% 2% 1% 5% 5% 5% 90% 8% 13% 9% 80% 14% 14% 14% 70% 17% 17% 60% 16% 50% 22% 22% 40% 23% 30% 20% 31% 32% 28% 10% 0% 2020 2019 2018 Consulting/Maintenance Enterprise Network Storage System Platform & Application Server Application Software Peripheral PC Oth
Slide 29: Compare Sales Revenues by Type
Compare Sales Revenues by Type 2,000,000 1,800,000 1,726,228 1,600,000 1,551,755 1,400,000 1,260,850 1,190,875 1,200,000 1,000,000 925,619 866,201 745,551 800,000 782,044 712,979 600,000 509,292 400,000 283,754 300,882 200,000 109,020 74,201 11,028 12,846 0 1,119 0 Unit:NT K$ 2020 2019 Product 3,980
Slide 30: 2020 Sales Revenues by Industry
2020 Sales Revenues by Industry Transportation and Biomedical traditional manufacturing Other 2% 8% 6% Financial insurance 10% Electronic related(Including Semiconductor) 46% Government education unit 11% Telecommunications 17% Revenue:5.543billion
Slide 31: Comparison of Sales Revenues by Industry (Accumulated)
Comparison of Sales Revenues by Industry(Accumulated) 100% 2% 2% 3% 6% 6% 6% 90% 8% 7% 8% 80% 8% 8% 10% 70% 12% 11% 15% 60% 17% 18% 18% 50% 40% 30% 46% 43% 46% 20% 10% 0% 2020Q4 2019Q4 2018Q4 Electronic related(Including Semiconductor) Telecommunications Government education unit Financial insurance
Slide 32: Comparison of Sales Revenues by Region (Accumulated)
Comparison of Sales Revenues by Region(Accumulated) 100.0% 1.2% 0.9% 1.3% 98.0% 4.6% 96.0% 7.0% 94.0% 10.4% 92.0% 90.0% 88.0% 94.2% 92.1% 86.0% 88.3% 84.0% 82.0% 2020 2019 2018 Taiwan China(Including HK) Other
Slide 33: Quarterly revenue status
Quarterly revenue status Units:NT$ thousand
Slide 34: Q & A Thank you!!
Q&A Thank you!!