Date: 2019/11

ECS Overview

• Founded in 1987 in Taipei, Taiwan

• Public Listing Company

• Chairman - Mrs. W.Y. Lin

• President – Mr. Sunny Yang

• Capital: 185M USD

• WW around 8,000 Employees

• HQ Location: Taipei, Taiwan

• Comprehensive Product Lines: • Education Notebook/Tablet/ 2 in 1

• Motherboards/IPC Board/Sever Board

• Desktop/Barebones/SFF System

• PCB

• Mini PC

• All-in-One

• IoT

• PC Stick / Compute Card

About ECS -1

•Innovation、Quality、 Competitiveness

Founded in 1987, ECS, the Elitegroup Computer Systems, is a top-notch

manufacturer and supplier of several families of computer products in the industry.

With 30 years of experience, ECS not only produces high-quality products such as

motherboards, desktops, notebook computers, graphics cards and other mobile

products, but also provides customized computer programming and hardware/

software design service for a wide variety of customers.

More than three decades, ECS has overcome a great deal of obstacles encountering

new businesses and has experienced the joy of significant growth and development.

ECS is strongly committed to develop cutting-edge technology in order to generate

innovative products under environmental friendly designs. ECS comprehensive

system of quality control provides our clients with reassurance and fosters long term

cooperation.

About ECS -2•Green Touch, Good Life

ECS commits to protect the Earth by reducing the global environmental loading as the

priority of her corporate sustainable strategy. Confronting more and more global

environmental impacts; climate change, natural resources depletion and the crisis of

ecological imbalance, ECS devotes the Green Solutions for the Earth sustainable

development without compromising customer satisfaction. ECS expects bringing people

with more Green Touch for a Good Life.

Starting from 2006, ECS has been implementing the “ECS Green Competitive Advantage

and Quality Plan” and introduced Green Products through 4-stages of non-toxic

management; including non-toxic suppliers, non-toxic material, non-toxic manufacturing

& processing, and, non-toxic quality controls. That empowers ECS desire of providing end

users with HSF (Hazardous Substance Free) products to ensure a quality green life.

The ECS engineering teams are engaged to create products under a Green concept by size

reduction, product longevity, easy disassembly, recycle potential, substance restriction

and energy saving. For example, ECS green motherboards apply to the three

environmental directives – the WEEE (Waste Electrical and Electronic Equipment)

promoted by the European Union; RoHS (Restriction on Hazardous Substance Directive)

and EuP (Eco design of Energy-using Products Directive).

About ECS -3•Knowledge management、Sustainable development

In addition to the use of new technologies to develop new products, to design product, to

manufacture equipment, parts supply systems, sales and inventory management are

constantly updated as the company scales up. Actively to construct a complete

knowledge management system, to accumulate each piece of information into

professional knowledge, and to transform it into wisdom to reserve energy for sustainable

operation.

Milestones

2000 Achieved MB sales record of 1 Million units/month.

1994 Listed on Taiwan’s Stock Exchange. (Code 2331)

1987 Founded as a professional MB company in Taiwan.

2006 Acquired Tatung Desktop PC BU & Uniwill computer Corp.

Added new manufacturing sites in China (Shenzhen and Suzhou)2005 Established new offices in China, Korea and Russia.

2003 Added ECSM Plant II to produce NB and DT systems.

2001 Created the DeskNote PC, completely change the NB market segmentations.

1998 Established ECSM in Shenzhen, China starting with a capacity of 0.6M MB

2002 Achieved 2 Million units/month in MB sales. Ranked #8 in the BusinessWeek InfoTech 100

2007Headquarters moved to ECS owned new building, Extended notebook manufacturing

site in China (Suzhou)

2008 Headquarters new building completion, New BU for advanced communication product

2009 Integrated manufacturing sites at Golden Elite in Shenzhen for better productivity and

supply chain management

2014

2017

ECS headquarters adopted smart building system to optimize building energy efficiency.

ECS 30th Anniversary Celebration.

2019 Established ECSTL in Thailand

Worldwide Location

Branch Offices：H.Q. (Taipei)

Fremont, USA

Tokyo, Japan

Seoul, Korea

Sales rep Mexico

Peru

Argentina

Colombia

Russia

Brazil

India

ECS USA* Fremont

ECS Taiwan *Taipei

ECS Japan *Tokyo

ECS Mexico

ECS Brazil

ECS Korea *Seoul

ECS Manufacturing Site ：

Golden Elite Technology (Shenzhen)

Elitegroup Technology (Thailand) Co.,

Ltd.

GECS Plant*Shenzhen

ECS Colombia

ECS Peru

ECS Argentina

ECS India

ECS Russia

ECSTL Plant*Thailand

Professional IT Supplier

Product portfolio: comprehensive product lines, including Motherboards, Mini

PC, Desktop PCs, Education Notebooks, Tablet, Intelligent IOT Gateway , which is

selling all over the world.

Our StrengthsISO 9001, 14001 and QC080000 certified

Advanced manufacturing technology

(ATE, AOI, Cross-section exam, thermal

shock test, etc.)

Recognized by major OEM/ODM clients

Well positioned

production sites in

China (Shenzhen )

Creative and

experienced R&D teams

for MB, NB, DT, Tablet

and CE products

Completed vertical integration

for PC production

Dominated economy of scale

Advanced ERP, PLM,

and CRM systems

Innovated Product Design

Creative and experienced design and R&D teams develop cutting-edge

MB, NB, DT, Tablet, Mini PC and IoT solutions

ECS Competition Niche

1.The Top 1 scale of Manufacturing and Quality

2. Perfect Vertical Integration

3.Good Supply Chain Management

4.Rapid Rapid Market Response

5.Excellent Human Quality

6.Green Touch, Good and Rich Life

Condensed Statement of Comprehensive Income ( Consolidated )

(NT$mn) YR2014 YR2015 YR2016 YR2017 YR2018 YR2019/1~9

Operating Revenue 55,895 48,387 29,946 29,947 31,796 21,097

Gross Profit 5,574 5,472 4,245 3,033 2,517 2,258

Gross Profit % 10.0% 11.3% 14.2% 10.1% 7.9% 10.7%

Profit (Loss) from Operations 1,614 1,546 (1,792) (3) (324) (227)

Profit (Loss) from Operations % 2.9% 3.2% -6.0% -0.01% -1.02% -1.1%

Total non-operating income and expenses 423 143 457 379 353 191

Profit (Loss) Before Income Tax 2,037 1,690 (1,335) 376 29 (36)

Income Tax 735 578 (456) 152 7 4

Net Profit (Loss) Attributable to:

Owners of the Company1,386 1,151 (945) 222 20 (47)

Net Profit (Loss) % 2.5% 2.4% -3.2% 0.7% 0.1% -0.2%

Basic Earnings (Loss) per share (NT$) 2.09 2.07 (1.70) 0.40 0.04 (0.08)

Condensed Balance Sheets (Consolidated)

(NT$mn)As of

Dec. 31, 2014

As of

Dec. 31, 2015

As of

Dec. 31, 2016

As of

Dec. 31, 2017

As of

Dec. 31, 2018

As of

Sep. 30, 2019

Current Assets 24,729 19,240 16,384 15,583 16,896 16,669

Property, plant and equipment 4,388 3,830 3,261 3,021 2,854 2,740

Intangible Assets 642 639 628 633 633 630

Other Assets 2,715 2,534 3,112 2,684 3,117 4,115

Total Assets 32,473 26,244 23,385 21,921 23,500 24,154

Current Liabilities 15,645 11,159 10,711 9,632 11,845 12,284

Non-Current Liabilities 610 632 698 529 484 778

Total liabilities 16,255 11,790 11,409 10,160 12,329 13,062

Total equity attributable to

owners of the Company16,085 14,356 11,814 11,606 11,011 10,923

Share capital 5,571 5,574 5,574 5,574 5,574 5,574

Capital surplus 6,486 6,489 6,461 6,427 5,882 5,903

Retained earnings 3,647 2,006 (34) 207 228 181

Other equity 381 286 (188) (602) (673) (735)

Treasury stock 0 0 0 0 0 0

Non-Controlling Interests 133 98 162 154 161 168

Total equity 16,218 14,454 11,976 11,760 11,171 11,091

Thank you