AVTECH Conference

AVTECH Corp. Conference

October 24, 2017Chap C.P. Tien, President

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[ A ] Company Profile

[ B ] Financial Results

[ C ] Products & Services

[ D ] Prospects & Opportunities

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Founded in 1996, 21 years of history. Business in video surveillance products design, manufacturing and sale, and branded electronic components agency.

Over‐the‐counter traded in 2003 and public traded in 2005.

Current capital in NT$800M. Business Focus:

Besting in unique HD image application market.Staying in small and strong contending organization.Persisting in long term talents pool fostering.Maintaining high‐standard financial disciplines.

[A]

Company Profile

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Milestones 

1996, founded with NT$5M.

1997, Made first camera.

2002, first DVR to market.

2003, over‐the‐counter traded.

2005, public listed and world first 16CH MPEG4 DVR.

2008, spin‐off ECD as Chieftron.

2012, entered IP surveillance market.

2017, extending video application.

[A]

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Made in Taiwan 

Factory HeadquartersOur factory is in New Taipei city Sanchongarea, all the productions and deliveries startfrom here. In this building are located:

•R&D and Engineering

•Testing

•Full production

•Services

AVTECH Headquarter is located in TaipeiNankang software park, close to the Taipeiexhibition center. In this building are located:

•Executives

•Sales center

•Business application software

•Administrative departments

Fully high‐quality manufacturing in Taiwan.Seeing growing investment in RD and production.

[A]

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Financial Results                        In thousands of New Taiwan Dollars                    

2012 2013 2014 2015 2016 2017 1H

3,277,336 

2,637,127 

1,916,473 

1,609,736 1,456,616 

541,123 

Yearly Consolidated Revenue

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Financial Results                        In thousands of New Taiwan Dollars                    

738,289 

516,317 

290,942 

146,372 

39,041 ‐4,878 

‐100,000

 ‐

 100,000

 200,000

 300,000

 400,000

 500,000

 600,000

 700,000

 800,000

2012 2013 2014 2015 2016 20171H

Consolidated Net Income

Consolidated Net Income

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Financial Results                        In thousands of New Taiwan Dollars                    

347,093 349,673 

398,766 

367,325 

279,353 262,533 

269,615 

189,504  191,244 

182,078 

107,740 94,215  102,377  96,768 

157,589  158,429 

216,688 

259,585 

185,138 160,156 

172,847 

 ‐

 50,000

 100,000

 150,000

 200,000

 250,000

 300,000

 350,000

 400,000

 450,000

2016/Q1 2016/Q2 2016/Q3 2016/Q4 2017/Q1 2017/Q2 2017/Q3

Quarterly Revenue

Consolidated

Video Surveillance

IC Trading

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Financial Results               In thousands of New Taiwan Dollars 

‐15,000

‐10,000

‐5,000

 ‐

 5,000

 10,000

 15,000

 20,000

 25,000

2016/Q1 2016/Q2 2016/Q3 2016/Q4 2017/Q1 2017/Q2

Quarterly Net Income

Consolidated

2016 Total year  39,041 YoY‐73%

2017 1H ‐4,878 , From profit to loss。

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Financial Results               In thousands of New Taiwan Dollars 

2,647,884  2,086,582 

1,244,525 838,176 

670,566 228,038 

646,702  564,728 

690,205 779,864 

792,291 400,870 

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 20171H

AVTECH (video surveillance )Subsidiary‐Chieftron (IC trading)

Video Surveillance IC trading

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Financial Results

36.14 36.91

14.22 19.4

171173.15

133.88 137.19

2014 2015 2016 20171H

Days of  sales outstanding Inventory turnover days

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Financial Results In thousands of New Taiwan Dollars 

2014 2015 2016 2017 1H

765,044 679,618 

1,022,237 

729,125 

1,946,443 1,796,810 

1,492,667 

1,693,332 

335,509 

182,078 117,077  143,297 

Cash、CA 、 CL

Cash Current   asset Current   liability

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AVTECH provides a complete range of digital and HD analogrecorders and cameras. The best feature of our products is the easeof use and setup. Our accessories are very popular and can makethe difference in particular projects. There are several versions ofCMS software the lite version for small installations and plus andpro for projects. The app Eagleeyes is one of the most downloadedfor remote security.

APP Android-IOS

Software for mac 16CH

CMS lite 32CHCMS plus 64CHCMS pro up to 1000CH

DVRs 4 - 8 - 16CH

CAMERAs 2 megapixel

IP CAMERAs 2–5-8 megapixel

NVRs 4-8-16-32-64CH

HDMI matrix merge 4 HDMI

TVI splitter 1 to 2

Joystick for PTZ control

Products Development

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Exclusive Features

This is an active video notification tosmartphone app. This service will provideyou evidences of the event before thesystem could be damaged.

Ezum cameras makes the installationeasier, you can remotely change thezoom level and adjust the focus, youdon’t need to go to the site everytime.

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Projects

AVTECH achieved many projects around theworld, we followed each project and we didprovide technical assistance for the preparationand installation. We won many of this projects byproviding solutions that shorten the installationtime and reduce the cost so that the projectcould be ready for the scheduled time.

IranPalladium

TaiwanNational museum

TaiwanSkyscraper 101

CzechShopping mall

TaiwanTelecom company

Germany

Hannover hotel

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• H.265, IVS.., the software advancement will lead the way in products competition instead of hardware improvement.

• Fierce price competition will soon spread out from lower tier CCTV market to IP and high‐end CCTV market.

• More and more manufacturers are seeking integration with other industry segments to avoid collision with few strong China players.

• The market (video surveillance) is still growing, but fewer and fewer suppliers left in the market due to competitions.   

Industry Trend 

[D]

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• Video technology is a fundamental element for most of the on‐the‐way tech applications.

• Best time for Differentiation Strategy.• Connecting with other industry segments.• Fully utilize the existing worldwide marketing 

network to challenge new applications.• Move to video extended application market 

Prospects & Opportunities

[D]

THANKS!