Sercomm Corporation

Company Profile
Safe Harbor Notice
The following presentation may contain forward-looking
statements regarding, among other things, our financial
condition, future expansion plans and business strategies
based on our current expectations and projections about
future events. Although we believe that these expectations
and projections are reasonable, such forward-looking
statements are inherently subject to risks, uncertainties and
assumptions.

The company undertakes no obligation to publicly update or

revise any forward-looking statements whether as a result of
new information, future events or otherwise. The actual
results could differ materially from those contained in these
forward-looking statements.
Introduction
 Established Year 1992
 IPO Year 1999 (TWSE:5388)
 Locations
Headquarters Taipei, Taiwan
Design Center Taipei & Suzhou
(1,200+ RD Engineers)

Manufacturing Suzhou, China

Hsinchu, Taiwan
Calamba, Philippines

Global Branches California, USA

Atlanta, USA
Paris, France
Dusseldorf , Germany
Moscow, Russia
Tokyo, Japan

 2018 Revenue US$ 1.1 Billion

 Total Employees 7,000+
 Main Products
- xDSL Gateway - Cable DOCSIS 3.x
- FTTx / GPON - SMB Products
- Triple-Play / IAD - Small Cell Products
- Smart Home Control - IoT Devices
“Embed IP Everywhere”－Our Mission
- An Embedded System Provider to
Timely Offer Total Networking Solutions
Time
To
Market

Embedded Software

Simplicity Internet Intellectual Affordability

Protocols Properties

Reliability
 Global Offices Sales Center
RD Center
Manufacturing

Dusseldorf
Germany Moscow
Russia

Atlanta Tokyo
USA Moscow Suzhou Japan
Russia China
Paris
France Suzhou
Milan China
California Italy Taipei
USA Taiwan
Manufacturing
Suzhou, China
Manufacturing
Hsinchu, Taiwan
Manufacturing
Calamba, Philippines
 Winning Value Proposition

Embedded
Software

Artificial Hardware
Intelligence Design
(AI)
Total IoT
Solution
Operation Provider Product
Management
Assurance
Software

Manufacturing
& Testing
Technology
Well-Recognized Market Position
 Top 3 Supplier Worldwide for Wi-Fi CPE

 Top 3 Supplier Worldwide for FTTx Products

 Top 3 Supplier Worldwide for Small Cells

 “Most Honored Companies” － Institutional Investor, 2018

 “Best Mid-cap Company” － FinanceAsia, 2015~2018

 “Best Managed Company ” － Asiamoney, 2015~2018

“Best Executive in Taiwan”

“Best for Corporate Social Responsibility”

 Enrolled in MSCI Global Small Cap Index since 2011

Sercomm Product Portfolio
 Sales Revenue Growth 38,600
36,702
35,012
NT$ MN 33,385

CAGR = 24%
23,193

19,268 19,077

13,242
10,255
9,133
8,535 8,640
5,670 7,089
5,012
3,799
1,886
928
717

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
 Evolving Product Mix
2016 2017 2018

NT$MN $36,702 $38,600 $33,385

FM Fixed-Mobile Home
14% FM
Enterprise 25% Products Gateway
10% HG
35% 39%
HG
IoT 64% 54%
Enterprise
12%
11%
IoT
10%
Enterprise IoT
Products Products
14% 12%
 Sercomm Manufacturing Centers
 State-of-the-art Manufacturing Site
- Specialized in RF Integrated Products
- Eco-friendly Green Factory

 Total 7,000+ Employees

- Manufacturing Engineers: 530
- RD Engineers: 1,200

 Manufacturing Capacity
- 3.5 Million Units per Month
- AI Embedded Automated Production Lines

 Certificates
- ISO 9001, ISO 14001, OHSAS 18001,
TL 9000, CMMI3
1Q’19 Income Statement - YoY
2019 2018
NT$ Million 1Q % 1Q % Change
Net Sales 6,480 100.0% 7,963 100.0% -18.6%
Cost of Goods Sold 5,320 82.1% 6,931 87.0% -23.2%
Gross Profit 1,160 17.9% 1,032 13.0% 12.4%
Operating Expenses 953 14.7% 822 10.3% 15.9%
Operating Profit 207 3.2% 210 2.7% -1.4%
Non-operating Income
64 1.0% 26 0.3% 146.2%
& Expenses
Income Before Tax 271 4.2% 236 3.0% 14.8%
Net Income Attributable to
211 3.3% 186 2.3% 13.4%
Owners of Parent
EPS After Tax (NT$1) 0.86 0.76
Weighted Average
245 246
Shares (MN)
2018 Income Statement
2018 2017
NT$ Million Amount % Amount % Change
Net Sales 33,385 100.0% 38,600 100.0% -13.5%
Cost of Goods Sold 28,907 86.6% 33,572 87.0% -13.9%

Gross Profit 4,478 13.4% 5,028 13.0% -10.9%

Operating Expenses 3,578 10.7% 3,494 9.0% 2.4%

Operating Profit 900 2.7% 1,534 4.0% -41.3%

Non-operating Income &
130 0.4% 49 0.1% 165.3%
Expenses
Income Before Tax 1,030 3.1% 1,583 4.1% -34.9%
Net Income Attributable to
808 2.4% 1,312 3.4% -38.4%
Owners of Parent
EPS After Tax (NT$1) 3.32 5.38
Weighted Average Shares
243 244
(MN)
Balance Sheet
Mar. 31, 2019 Mar. 31, 2018
NT$ Million Amount % Amount %
Cash Equivalents 5,782 25.5% 5,854 25.9%
A/R 5,163 22.8% 5,724 25.3%
Inventory 5,263 23.2% 5,890 26.1%
Other Current Assets 1,646 7.3% 671 3.0%
Non-current Assets 4,808 21.2% 4,447 19.7%
Total Assets 22,662 100.0% 22,586 100.0%
Loan 2,633 11.6% 1,960 8.7%
A/P 8,321 36.7% 9,370 41.5%
Leasehold Payable 401 1.8% 124 0.6%
Other Payable & Liabilities 3,772 16.7% 3,691 16.3%
Total Liabilities 15,127 66.8% 15,145 67.1%
Total Equity 7,535 33.2%　 7,441 32.9%
A/R Turnover Days 82 74
Inventory Turnover Days 88 79
A/P Turnover Days 156 137