Sporton International Inc. · TPEX:6146
Sporton International — Q4 2022 Earnings Presentation
38 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 G.M. Office - David Chou
Slide 2: Outline
Outline 1 Industry Trends & Growth Momentum 2 Business Operation & Core Strengths 3 3Q 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: Current Market Trends
Current Market Trends More smartphones are adopting 5G mmWave. At least 16 brands are going to use Snapdragon 8 Gen 2 chipset, including 12 from China, 2 from Japan, 1 from the U.S., and 1 from Taiwan. Demensity 9200 will be used by at least 4 brands, including 3 from China and 1 from Taiwan. 8 Gen
Slide 5: 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 6: Comparison between NSA and SA Carrier Aggregation (CA)
Comparison between NSA and SA 4G 5G NSA 5G SA 4G Core 4G Core 5G Core 4G 4G & 5G 5G Base Station Base Station Base Station Carrier Aggregation (CA) 4G 4G + 5G 5G 5G CA mmWave 5G Sub-6GHz 20 MHz 10 MHz 6 5 MHz References: 電子工程專輯、FETnet
Slide 7: 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 8: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total (3.6% increase between October and November 2022) Commercially available 1,709, 100% 1,347, 78.8% Industrial or Phones 883 51.7% enterprise Fixed wireless access CPE 245 14.3% routers, gateways, Modules 210 12.3% or modems Industrial or e
Slide 9: 5G + Wi-Fi + BT: Stable Connections, Seamless Service
5G + Wi-Fi 6 + BT: Stable Connections, Seamless Service 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 Smartphone 5G NR mmWave + Wi-Fi 7 Wi-Fi Router Others (drone, head-mounted Material source ：5G Americas、GSA 、Ericsson 、 Wi-Fi 7 display, robots,
Slide 10: VR, AR, MR, XR—Wireless Network Applications
VR, AR, MR, XR—Wireless Network Applications for Various Types of Virtual Reality Terminals Indoor use - Wi-Fi 6E/7 Outdoor use - mmWave VR (Virtual Reality) AR (Augmented Reality) MR (Mixed Reality) XR (X-Reality or Cross Reality) 10 Reference: JIRAROJ PRADITCHAROENKUL/Getty Images 、Rolling Stone
Slide 11: SAR (Specific Absorption Rate)
SAR (Specific Absorption Rate) Head SAR Testing 11 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 High-performance NFC antenna (RF) to offer better solutions, such as re
Slide 13: Quality First Policy – Parts Department
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 14: Business Operation & Core Strengths
2 Business Operation & Core Strengths 14
Slide 15: Business Operation
Business Operation 91% 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 16: Business Operation
Business Operation Testing and Certification Testing and 91% Certification 91% 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 17: 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 18: 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 18 specializes in IoT testing.
Slide 19: 5G NR Case Counts Published by FCC and NCC
5G NR Case Counts 5G NR Case Counts Published by FCC Published by NCC Sporton 2022/01/01 -2022/12/31 33.86% FCC 5G NR (Original Equipment) Sporton 108 33.86% UL 34 10.66% Sporton Waltek 3 0.94% CAICT 29 9.09% 7Layers 2 0.63% 45.97% Element 22 6.90% Bureau Veritas 2 0.63% HCT 81.14% 22 6.90% Chongqin
Slide 20: High-end Wi-Fi 6E Devices Case Count Published by FCC
High-end Wi-Fi 6E Devices Case Count Published by FCC FCC Filling Projects FCC Filling Projects (2022/01/01 – 2022/12/31) (2022/01/01 – 2022/12/31) Master Device Client Device Sporton + ICC 36 48.0% Sporton + ICC 44 40.0% MRT 19 25.3% Sporton Element 18 16.4% Bureau Veritas 7 9.3% 48.0% UL 13 11.8%
Slide 21: 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. 21
Slide 22: 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 23: Core Strengths
Core Strengths Comprehensive 5G NR Testing Laboratories Regulatory OTA RegulatoryAuthorities- Antenna Performance Testing CE/FCC/NCC o CTIA (Cellular Telecommunications and Internet Association) Comprehensive o Telecommunication Network Operators in Europe/North 5G NR Testing America Laboratories Fi
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 Near Field Third Generation Partnership OnGo Alliance and Electronics Communication (NFC) Project (3GPP) Engineers (IEEE) Forum Cellular PCS Typ
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: Core Strengths and Competitive Advantages
Core Providing 5G and telecommunication product Strengths 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 3 top smartphone and telecommu
Slide 27: Major Clients
Major Clients ®» BandRich Inc. GARMIN. -@ © p D-Link | Sus Wa HUAWEI LonecHEeR Building Networks for People © © P T | ON 3,6 Brightstar pujirsy «Bs Microsoft OO Meta @d nest —e olpleltt. Gea a il 4, ” Google QUALCOMWW Drnx BLU se ae BC2F yy @D amazon QO au Honeywel hrc 6 ms Haier (intel: VIVO fh y W
Slide 28: COVID-19 Epidemic Prevention Management
COVID-19 Epidemic Prevention Management Strictly follow the CDC regulations announced by the Ministry of Health and Welfare to ensure the implementation of epidemic preventive policies. Offer every employee to access full-day paid leave to get each dose of the COVID-19 vaccine. Hold cross-department
Slide 29: 4Q Financial Analysis Report
3 4Q Financial Analysis Report 29
Slide 30: Consolidated Income Statement (4Q)
Consolidated Income Statement (4Q) 2022 / 4Q 2021 / 4Q 2022 2021 Amount ％ Amount ％ YoY Amount ％ Amount ％ YoY Total Revenue 1,185,833 100 1,107,536 100 7.07% 5,015,224 100 4,320,822 100 16.07% Gross Profit 610,349 51.47 555,244 50.13 9.92% 2,758,049 54.99 2,161,904 50.03 27.57% Operation Expenses 225
Slide 31: Revenue Breakdown
Revenue Breakdown Testing and Certification 91% 91% 9% 9% Customized R&D and Sales of Passive Components 31 31
Slide 32: 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 Total Revenue (100 Million) 7.37 9.14 9.27 9.38 10.09 10.4 11.64 11.08 12.35 12.79 13.16 11.86 Net Pr
Slide 33: Revenue Breakdown by region/department
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 8.20% 9.94% 8.65% 8.87% 5.10% 9.31% 10.93% 4.59% 4.68% 3.21% 3.11% 4.35% 23.50% 18.46% 22.66% 16.87% 20.72% 26.76% 63.20% 67.01% 62.41% 62.71% 68.37% 55.19% 2017 2018 2019 2020 2021 2022 Taiwan China ICC Components US Unit: %
Slide 34: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 48.59% 48.92% 50.03% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 37.00% 31.46% 33.23% 30.57% 28.89% 28.36% 28.42% 28.45% 27.86% 25.58% 23.86% Gross profit margin exceeds 50% for the first time in 2021. 2012 2013 2014 2015 2016 2017 2018 2019 202
Slide 35: EPS and Dividends during the last 10 years
EPS and Dividends during the last 10 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 4.83 5.25 0.0 0.2 0.1 0.1 0.1 0.0 0.5
Slide 36: Business Opportunities from Developing Technology
4 Business Opportunities from Developing Technology 36
Slide 37: Scenarios for 5G Mobile and Wireless Communications
Scenarios for 5G Mobile and Wireless Communications Welcome to the next-generation network for the year 2023! The release of the latest 5G NR/Wi-Fi 6E chipset enhances the development of next- generation connectivity, indicating that the global testing, inspection, and certification market size is e
Slide 38: 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 — Q4 2022 Earnings Presentation on 6ix