Sporton International Inc. · TPEX:6146
Sporton International — Q1 2023 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 the G.M. Office - David Chou
Slide 2: Outline
Outline 1 Industry Trends & Growth Momentum………………..3 2 Business Operation & Core Strengths………………...15 3 2023 1Q Financial Analysis Report……………………..30 4 Business Opportunities from Developing Technology……………………………………………………….36 2
Slide 3: Industry Trends & Potential Growth Momentum
1 Industry Trends & Potential Growth Momentum 3
Slide 4: Current Market Trends
Current Market Trends AI on 5G ◼ NVIDIA’s AI-on-5G Platform combines edge AI and 5G, enabling basic connectivity between billions of devices and extending the application of AI algorithms and application programs to all of the connected objects at the edge… ◼ Micron: The features of 5G wireless tech
Slide 5: 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 6: 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 7: Comparison between NSA and SA
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 7 5 MHz References: 電子工程專輯、FETnet
Slide 8: 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 9: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total (3% increase between February and March 2023) Commercially available 1,896, 100% 1,513, 79.8% Industrial or Phones 989 52.2% enterprise Fixed wireless access CPE 277 14.6% routers, gateways, Modules 219 11.6% or modems Industrial or enter
Slide 10: 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 display, Material source ：5G Americas、GSA 、Ericsson 、 robots, cameras
Slide 11: 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 o VR (Virtual Reality) o AR (Augmented Reality) o MR (Mixed Reality) o XR (X-Reality or Cross Reality) 11 Reference: JIRAROJ PRADITCHAROENKUL/Getty Images 、Rolling
Slide 12: SAR (Specific Absorption Rate)
SAR (Specific Absorption Rate) Head SAR Testing 12 Reference: Schmid & Partner Engineering AG, ResearchGate
Slide 13: 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 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: Business Operation & Core Strengths
2 Business Operation & Core Strengths 15
Slide 16: 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 17: 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 18: 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 19: 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 20: 5G NR Case Counts Published by FCC and NCC
5G NR Case Counts 5G NR Case Counts Published by FCC Published by NCC 2023/01/01 -2023/03/31 FCC 5G NR (Original Equipment) Sporton + ICC 21 30% Sporton SGS + Compliance Certification Services 14 17% + ICC (Kunshan) Inc 30% Sporton CAICT + China 79% SGS DEKRA 37.5% 50% Telecommunication 9 11% Techno
Slide 21: High-end Wi-Fi 6E Devices Case Counts Published by FCC
High-end Wi-Fi 6E Devices Case Counts Published by FCC FCC Filling Projects (2023/01/01 – 2022/03/31) FCC Filling Projects (2023/01/01 Master Device – 2022/03/31) Client Device Sporton + ICC 11 64.71% Sporton + ICC 18 48.65% Bureau Veritas 4 23.53% Audix 4 10.81% TUV 4 10.81% Beijing TIRT Technology
Slide 22: 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 23: 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 24: 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 25: 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 26: Major Clients
Major Clients Qualcomm T=5Lq AMazon OO Meta G gl BE Microsoft AA) @ Verifone \t.ZEBRA nest ul otomtom OPTION intel. if Telit, ackchia “Ye SIERRA doo (BYLLITT) vERTU SONY MITSUMI HUAWEI OPPO VIVO realme Uj GIONEE @.... ITE MEIZU Fibccon Haier MEI INGTEC/J RQUECTEL Foxconn FIH D-Link NTC a /eUS GARMIN
Slide 27: 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 28: 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 29: 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 30: 1Q Financial Analysis Report
3 1Q Financial Analysis Report 30
Slide 31: Consolidated Income Statement (1Q)
Consolidated Income Statement (1Q) 2023 / 1Q 2022 / 1Q 2022 2021 Amount ％ Amount ％ YoY Amount ％ Amount ％ YoY Total Revenue 1,290,312 100 1,235,350 100 4.45% 5,015,224 100 4,320,822 100 16.07% Gross Profit 705,476 54.67 668,393 54.11 5.55% 2,758,049 54.99 2,161,904 50.03 27.57% Operation Expenses 187
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 2023/1Q 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 Net Pro
Slide 33: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 0.70% 8.20% 9.94% 8.65% 8.87% 9.10% 5.10% 9.31% 10.93% 4.59% 4.68% 3.11% 2.34% 4.35% 3.21% 23.50% 16.87% 13.92% 18.46% 22.66% 20.72% 26.76% 73.94% 63.20% 67.01% 62.41% 62.71% 68.37% 55.19% 2017 2018 2019 2020 2021 2022 2023/1
Slide 34: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 55.00% 48.59% 48.92% 50.03% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 40.00% 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
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! 5G mmWave market is poised for take-off in 2023. Demand for private 5G network facilitates the development of 5G mmWave. Release of Wi-Fi 7 products in 2023. The applications of V2X (vehicle
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 — Q1 2023 Earnings Presentation on 6ix