#1SOLOMON Solomon Technology Corporation Investor Presentation 2021 August 31, 2021 SOLOMON SOLOMON SOLOMON Technology Corporation#2SOLOMON For President Securities Corporation Q3 Investment Outlook Forum#3SOLOMON Disclaimer The following presentation and its associated contents contain forward-looking statements regarding operational strategy, financial results and business forecasts, which are based on internal information of the Company and observations of the overall external environment. Forward-looking statements should not be understood or construed as guarantees of future performance, as such projections involve factors including but not limited to market demand, price fluctuations, competitive situation, global economic activity, foreign exchange rates, and other uncertainties beyond the control of the Company that may cause actual results to differ. Information presented herein are based upon the Company's assumptions of the future outlook to date, and are not representative, explicit or implicit, of correctness, completeness or reliability. Should there be subsequent changes in circumstances, the Company does not assume any responsibility to update or review forward-looking statements. The contents of this presentation should not be copied, edited, revised, shared or repurposed in any way without the knowledge or consent of the Company.#4SOLOMON Agenda * Company Profile * Financial Results * Outlook & Strategy * Q&A#5SOLOMON Agenda * Company Profile * Financial Results * Outlook & Strategy * Q&A#6SOLOMON Established: 1990 Company Profile Publicly Listed: 1996 (TWSE 2359) Capital: NT$1.715 billion Core Businesses: Machine Vision, IoT, Robotics, Automation, Energy Equipment, Optoelectronics LOWON GoldTek Taiwan Solomon Taipei HQ SOLOMON 所羅門股份有限公司#7SOLOMON Global Network Northern China Beijing Southwestern China Los Angeles (USA) Southeast Asia Hanoi (Vietnam) Bangkok (Thailand) Singapore Southern China Shenzhen Hong Kong Dongguan Xiamen Eastern China Shanghai Suzhou Taiwan Taipei (HQ) Hsinchu Taichung Kaohsiung#8SOLOMON Solomon Group Core Structure Smart Automation Al & 3D Vision Robotics IoT Automation Electronics Optoelectronics Components Power Generation Fuel equipment Gas generation Power quality Solomon Energy Tech Corp 所羅門 SOLOMON Optoelectronics Manufacturing Goldentek Display Corp. Systech Limited (formerly Data International)#9SOLOMON Agenda * Company Profile * Financial Results * Outlook & Strategy * Q&A#10SOLOMON Financial Results - Consolidated Revenue Unit: NT$ 100 million 45.00 39.49 40.00 37.37 35.27 35.00 30.00 25.00 20.00 19.10 16.44 15.00 10.00 5.00 0.00 2018 2019 2020 2020 H1 2021 H1#11SOLOMON Financial Results - Sales Breakdown (by BU) 2021 Q1-Q2 2% 30% 14% 26% 2020 4% 10% 26% 29% 28% 31% Electronics Optoelectronics Energy & Power Automation Others#12SOLOMON Financial Results - Consolidated Income Statement Unit: NT$'000 2021 Q1-Q2 2020 Q1-Q2 與去年同期比較 2020年度 主要科目 $ % $ % % $ % Revenue 1,909,528 100.00 1,644,112 100.00 16.14 3,527,149 0.00 Gross profit 392,653 20.56 367,311 22.34 0.07 746,144 21.15 Operating expenses Operating income Interest income Other income (366,410) (19.19) (340,606) (20.72) 0.08 (699,206) (19.82) 26,243 1.37 26,705 1.62 (0.02) 46,938 1.33 33,458 1.75 16,922 1.03 0.98 39,033 1.11 31,786 1.66 49,036 2.98 (0.35) 86,329 2.45 Finance costs (3,933) (0.21) (566) (0.03) 5.95 (2,061) (0.06) Other gains and losses 61,041 3.20 (4,003) (0.24)" 16.25 (86,742) (2.46) Share of profit accounted 2,342 0.12 421 0.03 4.56 448 0.01 for using equity method Total non-operating 124,694 7.58 61,810 3.76 1.02 37,007 1.05 income and expenses Earnings before tax Income tax 150,937 (15,962) (0.84) 7.90 88,515 5.38 0.71 83,945 2.38 (30,046) (1.83) (0.47) (53,555) (1.52) Net income 134,975 7.07 58,469 3.56 1.31 30,390 0.86 Profit (loss),attributable to 128,778 6.74 53,003 3.22 1.43 20,318 0.58 owners of parent EPS (NT$) 0.75 0.31 1.42 0.12#13SOLOMON Financial Results - Consolidated Balance Sheet Unit: NT$ '000 June 30, 2021 December 31, 2020 June 30, 2020 Particulars Cash and cash equivalents Financial assets $ % $ % $ % 1,202,915 16.54 1,283,105 19.80 1,565,940 25.19 962,524 13.23 1,211,161 18.68 1,156,574 18.61 Accounts & notes receivable 870,124 11.96 693,053 10.69 760,229 12.23 Inventory 950,064 13.06 714,357 11.02 714,497 11.50 Other current assets 311,922 4.29 447,069 6.90 233,948 3.76 Financial assets at amortized cost 1,253,700 17.24 328,570 5.07 Property, plant & equipment 498,566 6.86 505,680 7.80 519,691 8.36 Investment property (net) 846,356 11.64 952,520 14.69 945,642 15.21 Other non-current assets 376,501 5.18 346,922 5.35 318,782 5.14 Total assets 7,272,672 100.00 6,482,437 100.00 6,215,303 100.00 Short term loans 1,142,852 15.71 397,377 6.13 Contract liabilities (current) 449,327 6.18 369,932 5.71 386,756 6.22 Accounts payable 412,710 5.68 505,537 7.80 493,164 7.93 Other payables 240,435 3.31 181,154 2.80 305,089 4.91 Other current liabilites 91,079 1.25 94,301 1.45 91,413 1.47 Other liabilites 51,873 0.71 64,982 1.00 72,769 1.17 Total liabilities 2,388,276 32.84 1,613,283 24.89 1,349,191 21.71 Total equity 4,884,396 67.16 4,869,154 75.11 4,866,112 78.29 Total liabilities & equity 7,272,672 100.00 6,482,437 100.00 6,215,303 100.00 Financial indicators Current ratio 184% 281% 347% Debt/asset ratio 33% 25% 22% Debt/equity ratio 49% 33% 28%#14SOLOMON Financial Results - EPS & Dividend Policy 2.5 2 2.15 1.5 1.86 1.65 1.1 1 0.95 1 1 1 0.8 0.75 0.5 0.5 0.34 0.12 0 2015 2016 2017 2018 2019 2020 2021 H1 EPS (NT$/share) Dividend (NT$/share)#15SOLOMON Agenda * Company Profile * Financial Results * Outlook & Strategy * Q&A#16SOLOMON 45.00 40.00 Outlook & Strategy - Orders on Hand Unit: NT$ 100 million 39.41 35.00 Growth 59% 30.00 24.75 25.00 19.88 18.75 20.00 15.00 13.05 10.00 5.00 0.00 2017 2018 2019 2020 2021.7#17SOLOMON Outlook & Strategy - Energy Equipment Agent Own Brands Product Old products New products 1. Diesel generators 2. Gas generators 3. D-UPS 4. Busway 1. S-UPS 2. DC charging systems 3. Smart cabinets 4. Energy storage equipment 5. SolarEdge 1. Diesel generators Application As the demand for energy equipment increases in response to the growth of electronic products consumption, 5G construction, green power, and gas-fired powered plants, we see business opportunities in the following sectors: 1.Technology industry Semiconductors, LCD panels, PCBs 2. Public infrastructure MRT, power factories, post offices 3. Green energy Solar power 4. Construction industry High end offices, logistics hubs#18SOLOMON Outlook & Strategy - Al & 3D Vision DB SCHENKER SIEMENS Valeo TRANE YKK GIANT ASE GROUP CAT GOOD YEAR DENSO 3D Robotic Vision Software (For manufacturing and logistics) M BAOSTEEL OMRON Haier okura amui Audi IN mo 國立故宮博物院 LIB NATIONAL PALACE MUSEUM ΤΑΤΑ KUDZUI Leading choice of large 01 02 MNCs Continue to win new MNC customers 03 Continuous innovation to sustain product leadership#19SOLOMON Outlook & Strategy - Al & 3D Vision Al Inspection Software Inspect defects unrecognizable to rule-based vision systems ◉ Significantly reduce overkill rates of AOI systems No need to customize; no need to program Superior recognition & ease-of-use vs. leading American brand Taiwan customers - semiconductor OSAT, LED, AOI equipment Overseas customers - food, footwear#20SOLOMON VisionSystems DESIGN Innovators Awards GOLD Accolades VISIONSYSTEMS DESIGN Innovators Awards AccuPick reddot winner 2020 SILVER best of the best interface design Taiwan Industrial Development Bureau IDB SI System Integration IT Services Al Technology Services 糕 台灣精品 2021 TAIWAN EXCELLENCE#21SOLOMON Agenda * Company Profile * Financial Results * Outlook & Strategy * Q&A#22SOLOMON