Promise Technology, Inc. · TWSE:3057
Promise Technology — Investor Conference 2018
31 slides from Promise Technology's conference presentation, Dec 7, 2018
Slide 1: 2018 Result Announcement
Promise Technology Inc.(3057) 2018 Result Announcement Speaker：Edward Lin, Chairman of Promise Technology Inc. Date: Dec. 7, 2018
Slide 2: Disclaimer Clause
Disclaimer Clause： This document is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. No part of
Slide 3: Agenda
AGENDA • State of Operation • Storage Market Dynamics • Promise Opportunities • Strategy of Technologies and Achievement • Strategy of Marketing and Target • Executive Focus and Conclusion
Slide 4: State of Operation
TECHNOLOGY STATE OF OPERATION
Slide 5: Company Profile
Company Profile • PROMISE Technology, Inc.，stock symbol： 3057 was founded in San Jose, USA, Dec., 1988 • More than 300 employees and 40 % of them are R&D staffs globally. Our business territories across US, Europe, Japan, China, APAC and MENA • Promise has earned a reputation for developing innovati
Slide 6: Financial Result
Financial Result Income Statement, 2018 vs. 2017 Jan. ~ Sep. Income Statement 2018 2017 variance (Unit:NT$M) Q1 Q2 Q3 Jan~Sep Q1 Q2 Q3 Jan~Sep Net Sales 449 498 490 1,437 519 445 464 1,427 10 Gross Margin 151 165 148 464 205 180 163 548 (84) % 34% 33% 30% 32% 39% 40% 35% 38% -6.11ppt Total Operating
Slide 7: 2018 Improvement Plan
2018 Improvement Plan Root Cause: 1. Tried to transformed business entity to ‘matrix’ organization by different business units, but unable to create short-term revenue caused by the fragmented resources 2. Reduction of OEM accounts Action to Improve: 1. Coming up with ways to cut costs and increase
Slide 8: Storage Market Dynamics
TECHNOLOGY STORAGE MARKET DYNAMICS
Slide 9: Trend #1: Cloud Storage for Big Data and AI - Big Data Appliance
Trend #1: Cloud Storage for Big Data and AI 1.1 Big Data Appliance: • Data growth intensively: Significant network security requirement • Unstructured data dominate the future storage: Audio and Rich Media • In-depth data value identification: Digitalization on the spot
Slide 10: Trend #1: Cloud Storage for Big Data and AI - AIoT Revolution
Trend #1: Cloud Storage for Big Data and AI 1.2 Exploring the AIoT Revolution • Accelerating shift toward AI and IoT, Data is crucial to AIoT • AIoT contain three key elements: Edge、Core and Cloud • A solution with flexibility of store and extend all the data is necessary to enterprises • Promise de
Slide 11: Trend #2: Hit Back of Edge Computing
Trend #2: Hit Back of Edge Computing • Reducing transmission costs, shrinking latency, and improving quality of service • The reasons of enterprises are willing to migrate and adopt edge computing storage solutions： Cost of cloud storage is way higher than end-user computing Security and encrypt
Slide 12: Trend #3: Continuous Growth of External Storage
Trend #3: Continuous Growth of External Storage • External storage (SAN, NAS, DAS) as percentage of all storage once significant lower in Q1, 2017, and rallied soon which was above 45% in average 資料來源: IDC （Promise Technology is also one of the vendors of external storage）
Slide 13: Trend #4: Infrastructure of Cloud Storage
Trend #4: Infrastructure of Cloud Storage • Cloud storage architectures are primarily about delivery of storage on demand in a highly scalable and multi-tenant way. • One key focus of cloud storage is cost. For this reason, cloud storage must be self-managing to a large extent.
Slide 14: Our Opportunities
TECHNOLOGY OUR OPPORTUNITIES
Slide 15: First: Technology and Experience over 3 Decades
First：Technology and Experience over 3 Decades Consultations and Services 2018 onward, Total solution provider Advanced Storage Solutions 2013, Best optimized appliance Authenticated Storage 2008, Apple-qualified SAN storage Storage Platform Enclosures 2003, Innovative technology Storage HBA RAID Ca
Slide 16: Second: New Product Launch Along with the Market Dynamics
Second：New Product Launch Along with the Market Dynamics AIOT A Storage Infrastructure with Big Data Edge Computing Innovation and Flexibility Cloud Computing Ingest Flexible Edit Reliable Deliver Scalable Archive Rich Media IT NAS Surveillance Cloud Easy Open Scalability Quick Optimized Integration
Slide 17: Third: Partnership with the First Tier Multinational Vendors
Third：Partnership with the First Tier Multinational Vendors
Slide 18: Fourth: Brand Awareness and Marketing Visibility
Fourth：Brand Awareness and Marketing Visibility Rich Media Video Surveillance IT/Cloud
Slide 19: Fifth: Storage Technology Licensing
Fifth：Storage Technology Licensing • It is believed the most valuable property of Promise Technology is the innovative technology which has been over three decades • Technology Licensing will help us to explore more business opportunities
Slide 20: Strategy of Technologies and Achievement
STRATEGY OF TECHNOLOGIES AND ACHIEVEMENT
Slide 21: Strategy of Technology P.1
Strategy of Technology P.1 Customer Demand Product Development Industry Dynamics 1. 1. Main strategy: Meet the needs of medium and large OEM customers or focus on specific vertical industry customer groups, to develop and deepen the functionality and customization of products。 2. Second strategy: In
Slide 22: Strategy of Technology P.2
Strategy of Technology P.2 產業趨勢 - 廣化 Eco-System & Alliance Partners' Certifications and Partnership Build-Up for Channel Business Rich Media VMS & iP Camera Server Companies Alliance ISV/AI Companies Alliance Companies Alliance Companies Alliance Partners Partners Eco-System & Alliance Partners Eco-
Slide 23: Strategy of Technology - IT/Cloud P.3
Strategy of Technology - IT/Cloud P.3 c. Product and Technology * IT/Cloud – Main product series VTrak D5000, Second product series Vess R3000 ◆ Main strategy: Customer demand • The VTrak D5000 was launched in the third quarter of this year and has been adopted by a well- known big manufacturer. It
Slide 24: Strategy of Technology – Rich Media P.4
Strategy of Technology – Rich Media P.4 *Rich Media –Pegasus, SANLink • Main strategy: Customer demand • Deepening of the products: The pegasus series will be launched in 2019 to match more different transmission interfaces and will be connected to the cloud, sharing the content of co-production of
Slide 25: Strategy of Technology – Surveillance P.5
Strategy of Technology – Surveillance P.5 Video *Surveillance –Vess A, Vess R Surveillance ◆ Main strategy : Customer demand - Deepening of the products: Support diverse Linux operating systems, NAS capabilities, providing the function of data backup, Vess A (Linux) synchronization and sharing of pu
Slide 26: Our Business Territories
Our Business Territories China EMEA & Germany Sales & Marketing Sales & Marketing Engineering Post service & support Post service & support Logistic Hub Integration Site Japan Sales & marketing Post service & support USA Dubai Sales, Marketing Sales & marketing PROMISE Dubai Engineering
Slide 27: Strategy of Marketing
Strategy of Marketing Direction： 1. OEM/ODM as value proposition, own brand as volume play 2. Technology licensing as the revitalization of current property 3. Strengthen the alliance with ecosystem partners for expanding business scope
Slide 28: Strategy of Marketing
Strategy of Marketing 1. Main Strategy: Product innovation in depth, and in align with ecosystem partners in width 2. Secondary Strategy: To centralize all the resources for those products which are able to generate revenue in a short time 3. Strategic Intent: To fulfill the demands of OEM and verti
Slide 29: Executive Focus and Conclusion
Executive Focus and Conclusion Execution: 1.Strengthen the engagement with existing OEM/ODM accounts in terms of technology and services in depth 2. Expedite the process of the engaging prospects, and bring the products to our own channel after accomplishing the projects 3. Strategy defined for the
Slide 30: A Tetralogy of Making a Counterattack
A Tetralogy of Making a Counterattack It is not proud to win, keep pursuing excellence; It is not discouraged to frustrate, never give up!
Slide 31: Thank You for Coming
Thank You for Coming THANKS! Any Question?