Sporton International Inc. · TPEX:6146
Sporton International — Q3 2023 Earnings Presentation
39 slides from Sporton International's earnings presentation, 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 Q3/Q1~3 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 The first year of Generative AI, AI-powered smartphones and AI-enabled PCs (laptops) have ignited a wave of upgrades with new applications of human-machine interfaces. Growth Momentum Intel's 14th generation Raptor Lake Refresh, coupled with the
Slide 5: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total Commercially available 2,185, 100% 1,796, 82.2% Phones 1159 53.0% Industrial or enterprise Fixed wireless access CPE 299 13.7% routers, Modules 243 11.1% gateways, or modems Industrial or enterprise routers, gateways, 8.5% 185 8.5% 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
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 Technical specifications of communication 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 Published by FCC and NCC
5G NR Case Counts Published by FCC 5G NR Case Counts 2023, Q1~3 FCC 5G NR (New) Published by NCC SPORTON + ICC 63 30.14% UL Verification + UL Korea + UL 30 14.35% Japan SPORTON SGS + Compliance Certification Services (Kunshan) Inc 25 11.96% + ICC PCTEST + Element Materials 15 7.18% SORTON Eurofins C
Slide 22: High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC
High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC FCC Filling Projects (2023, Q1~3) Master FCC Filling Projects(2023, Q1~3) Master Device Client Device Sporton + ICC 30 38% Sporton + ICC 40 33% Element 15 13% Bureau Veritas 16 21% Sporton + UL 13 11% MRT 10 13% UL ICC Bureau Veritas 11 9% 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 Europëenne (CE) Mutual Recognition Arrangemen
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=5LA amazon OO Meta Google BE Microsoft AA) @ Verifone \h. ZEBRA Honeywell nest ee Otomtom OPTION intel. LET QD il eit, rockchia vy s!sn59 sonim Cinterion doro VERTU Gntinental} SONY MITSUMI FUITSU TOL ETonepLus cooload WA Huawei CPPS VIVO @ Lenovo realme (gj GIONEE @.... ITE
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: Q3/Q1~3 Financial Analysis Report
3 Q3/Q1~3Financial Analysis Report 30
Slide 32: Consolidated Income Statement (2023 Q3)
Consolidated Income Statement(2023 Q3) 2023 / 3Q 2022 / 3Q 2023 1-3Q 2022 1-3Q YoY YoY Amount ％ Amount ％ Amount ％ Amount ％ Total Revenue 1,195,715 100 1,315,540 100 -9.11% 3,676,890 100 3,829,391 100 -3.98% Gross Profit 646,024 54.03 760,223 57.79 -15.02% 1,992,755 54.2 2,147,700 56.08 -7.21% Operat
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 2023/3Q 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
Slide 34: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 2.29% 8.20% 9.94% 8.65% 8.87% 7.78% 5.10% 9.31% 10.93% 4.59% 4.68% 3.11% 2.89% 4.35% 3.21% 23.50% 13.56% 18.46% 22.66% 16.87% 20.72% 26.76% 68.37% 73.48% 63.20% 67.01% 62.41% 62.71% 55.19% 2017 2018 2019 2020 2021 2022 2023/Q
Slide 35: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 54.20% 48.59% 48.92% 50.03% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 37.00% 38.39% 33.23% 30.57% 31.46% 28.36% 28.42% 28.45% 27.86% 28.89% 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 — Q3 2023 Earnings Presentation on 6ix