innodisk corporate · taipei shanghai japan tokyo / china shenzhen bejing chengdu n. america...

Innodisk CorporateInvestor Conference(Symbol: 5289)

Randy Chien

Chairman

2020.04.09

Copyright © 2018 Innodisk CorporationCopyright © 2018 Innodisk Corporation

Disclaimer

This file and the financial information and forecast information are based on information obtained by the company from internal and external sources. The actual operating results and financial conditions of the company may differ from these predictive sets of information due to various uncontrollable factors.

The viewpoints in this file reflects the company's opinion on the future by the current date. If there are any changes or adjustment in the future, the company is not responsible for notifying the reader or updating the content.

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Agenda

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• Company Profile and Overview

• Market Focus and Product Overview

• AIoT Market Trend and Activities

• Innodisk Group Strategy

• COVID-90: Effect and Initiative

• Financial information

• Q & A

Company Profile and Overview

4

5

RevenueNTD$7,362M

Shipment Growth

20% YoY

Patents115

2005 Founded

CapitalNTD$797M

Customers

3,000+

6

Worldwide Operation

Shanghai

Tokyo, Japan(2010)

Shenzhen(2011)

Beijing

Chengdu

Fremont, CA (2008)

Marlboro, NJ

Overseas Branch Office (4)Sales & Service points (5)

Headquarters, TaipeiR&D Center, HsinchuFactory Site, Yi-Lan

Total Employees: 681(Taiwan 574, Overseas 107)

EindhovenThe Netherlands2012 Established

2019 New Building

Austin, TX2019 Established

Copyright © 2018 Innodisk Corporation

1,000K / Monthly (2019)

ISO9001 / ISO14001 / ISO45001 /

IECQ QC080000

New Taipei City / Yi-Lan County

Production

Certifications

Manufacturing

ISO9001 X ISO14001 X ISO 45001 X IECQ QC080000

Manufacturing Site at Yi-Lan

8

Lot Size

10,000Sq. Meter

Floor Area (4 floors)

12,000Sq. Meter

2019 Capacity

600K SMT x 4

Partnership and Alliance

9

2016Innodisk was listed as one of Asia’s 200 Best Companies Under A Billion in Forbes.

2017Microsoft officially supports SATADOM™ Boot-up Drive for Windows Server.

2019Official partner of Azure Sphere

2016 - 2019Official Intel® IoT Solution Partner

2016SATADOM™ is qualified on the EVO: Rail platform

2018 - 2019Top 35 International Taiwanese Brand

2018/2019No. 1 Global Industrial Grade SSD

Gartner

2018年度Top 10 DRAM Module Suppliers

Market Focus and Product Overview

10

11

APPLICATIONS==========CUSTOMIZEDPRODUCTS

Military

Transportation

Infra-structure

Aero-space

GamingIn-vehicle

Medical

Communication


FLASH – Complete Storage Solutions

PCIe

PATA

SATA

USB

SD

CFexpressOCuLinkDOMM.2 (NGFF)

2.5”/1.8” SATA SSD SATA Slim mSATA

M.2 (NGFF) SATADOM CFast nanoSSD

2.5” PATA SSD CF EDC

SD Card/ MicroSD

USB Series

Multi-level PLP (Power-Loss -Protection)

Features for Vertical Markets

Combination with MS Azure

Optimized Firmware for

Industrial Applications

Data Security & Integrity

Longevity Support

13World’s First Industrial PCIe_NVMe Gen 4 SSD

High R/W Speed to 4GB/s Industrial grade 3D TLC

AES 256bits Encryption

Wide temperatures-40° to 85° C

Flexible capacity options to 4TB


Define Out-of-Band (OOB) Management in AIoT

Hardware

OS

Application

Public, Private Cloud

In-Band ManagementOOBManagement

Cloud Management Platform

InnoAGE SSD Remote Management

• Independent secured WiFi or Ethernet connection• Enable remote device management on update, recovery,

monitor, and maintenance• Enable remote backup via FW across multiple OS

managements• Intuitive interface

AIoT Applications


DRAM –Industrial Memory Modules

15

Embedded Memory

Server Memory

Wide Temperature Memory

Customized Memory

ECC DIMM Mini DIMM RDIMM

WT DIMM WT ECC WT RDIMM

Rugged DIMM XR-DIMM

SODIMM UDIMM Very Low-ProfileHighest QualityOriginal IC

Add-On Selections

Free UpgradationAnti-Sulfuration

Strict In-House Testing

Industry Oriented

Complete Product Line


2020 DRAM

16

1 Merging Software Element-iSMART/ iCAP-SPD Remote Control

2 Changing the World- AIoT & 5G-DDR4 32GB & 3200 MT/s

3 Greeting the New Era- DDR5


Complete Form Factor Contact 8KV, Air 15KV ESD

Protection

AIOTApplication

Complete API and Software Support Up to 2500V

Isolation Protection

Industrial grade components

EP – Complete Embedded Peripheral

Display

Storage

RAID 0 and RAID 1 SATA

VGA, HDMI , DVI, LVDS

LAN, Serial, CAN bus, Power over Ethernet

Intel Movidius Myriad X VPU

AI

Comm

Disk Array

SATA and USB

EP Product Strategy

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Industrial I/O – CAN, LAN, Serial, Display

Innovation – I/O Device Server

AI Module

• Industrial Network Protocols Supported• Compatible with Legacy Systems• Balance cost and expandability

• Accelerator expansion• Easy AI implementation• AI SDK integration

• MCI level I/O integration• Remote I/O Research

Integration Innodisk Group from Edge to Cloud

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Cloud Internet

Edge

Sensor

LAN/WAN

Data visualizationDevice managementBusiness logic

Edge computing Data collectionData filter & optimizationAI module inference AI module

partners

Data CollectData Transmission

AIoT Market Trend and Activities

20

IPC Market

Embedded(IPC) Market

PLC & Industrial PC

Vertical Market (IIoT)

Vertical Market

Embedded SI

Thin Client

Gaming

POS

Medical

IPC

Automation

Energy

Networking

Aerospace & Defense

Others

Smart Vertical Market (AIoT)

Multi-Vertical Smart Application

Embedded SI

Thin Client

Gaming

POS

Medical

IPC

Automation

Energy

Networking

Aerospace & Defense

Others

Smart Surveillance

Smart Applications: the New Growth Engine!

22

Global AIoT Conference

HEADQUARTERSTAIPEI

Shanghai

JapanTokyo

/ ChinaShenzhen

Bejing

Chengdu

N. AmericaFremont

New Jersey

• Present Innodisk Group AIoT landing cases

• Partner and Alliance Endorsement

• Customer Interactions and Cooperations

Apr.2019. China > 400 Attendee

Oct.2018. Taiwan > 500 Attendee

Aug.2019. U.S.A. > 150 Attendee

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Innodisk & Microsoft Alliance: Accelerate AIoT Landing

From Cloud to Edge OOB Architecture

• InnoAGE SSD: Word’s first Azure Sphere powered SSD

• Specially designed for Smart device management

• Realize secure remote device and data management via Out-of-Band (OOB)

Innodisk Press Conference with Microsoft

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IoT in ActionSanta Clara (U.S.A)

Place: Santa Clara (U.S.A.)

Date: 2019. 10. 10

25

IoT in ActionNagoya (Japan)

Place: Nagoya (Japan)

Date: 2019. 11.05

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IoT in Action Warsaw (Poland)

Place: Warsaw (Poland)

Date: 2019. 11.13

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Microsoft IoT in ActionTaipei (Taiwan)

Place: Taipei (Taiwan)

Date: 2019.11.20

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IoT in Action Shenzhen (China)

Place: Shenzhen (China)

Date: 2019. 12.03

Innodisk Group Strategy

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Innodisk Group Strategy

IPC Market

PLC & Industrial PC

Smart Vertical Market (AIoT)Vertical Market (IIoT)

Embedded SI

Thin Client

Gaming

POS

Medical

IPC

Automation

Energy

Networking

Aerospace & Defense

Others

Hardware/Module

• Traditional product selling• More focus on Hardware development• Meet industrial requirements

Device/Solution

• Application driven • Firmware bundles hardware • Solution thinking to sell modules

Integration

Software/Service

• Smart application driven • Software bundles hardware & Firmware • Platform thinking to sell modules

Integration

Hardware Value Up

Solution Value Up

Service Value Up

Smart Surveillance

Embedded SI

Thin Client

Gaming

POS

Medical

IPC

Automation

Energy

Networking

Aerospace & Defense

Others

Service creates “Value”

服務創造價值

Create “Service Value”創造服務的價值

Innodisk Solutions and Ecosystem

InnodiskAIoT

Platform

Smart Module

AIoT Ecosystem

5G

Innodisk Group Solution Strategy

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Cloud Computing

• Public Cloud• Private Cloud

Fog Computing

• Fog• Fog Node

Communication

Communication

Edge Computing

5G/WiGig

NB-IoTLoRA

Industrial AI GPU

Industrial Memory /Storage

Industrial 5G/WiGig

Industrial IoV

Eco-system partners

( Cloud, AP, Algorithm, Sensors, SI…)

Industry 4.0

Smart Medical

Smart Surveillance

Smart Transportation

Expansion

Expansion

Industrial Sensors

COVID-90: Effect and Initiative

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COVID-19: Effect and Initiative

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• Employee: － Staff health and safety are top priority － HQ completed drill exercise on working and doing business at home & company system

pressure testing － Overseas branches: China resumes working; work from home for U.S.A., Europe, and Japan

regions

• Production: － Taipei and Yi-Lan factories to function and operate independently－ Remote Backup Mechanism supporting Disaster Recovery and Backup on both factories

• Supply Chain: － Secure key components supplies with long term partners － Elevated safety inventory level of common parts

• Market Responses:－ Business risk is evenly distributed as customers and markets are evenly spread out － Short Term: some markets demands are deferred but compensated by surge demand in other

markets － Long Term: AIoT Smart Applications demand will recover rigorously

Financial information

35


Revenues over last 5 years

4,385,985 4,645,526

6,544,206

7,866,250 7,361,665

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2015 2016 2017 2018 2019

NT$:K

36


Net Profits and EPS over last 5 years

37

560522463582

767880 8430841010254

9.02

7.06

10.86 10.87

12.73

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2015 2016 2017 2018 2019

Net Profit (NT$: K)

EPS: NT$


Revenue Breakdown by Product Lines

38

59%

37%

4%

2017

53%42%

5%

2018

56%38%

6%

2019

DRAM FLASH OTHERS


Revenue Breakdown by Regions

39

19 21 22

19 20 22

29 24 21

21 21 20

10 12 13

2 1 2

0

10

20

30

40

50

60

70

80

90

100

2017 2018 2019

Taiwan Europe America China Asia Others

％


Annual Income Statement

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2017 2018 2019 YoYRevenues 6,544,206 7,866,250 7,361,665 -6.4%Cost of good sold 4,770,505 5,925,784 5,043,889 -14.9%

Gross profit 1,773,701 1, 940,466 2, 317,776 19.4%Operation expenses 777,465 831,211 928,889 11.8%

Operation profits 996,236 1,109,225 1,388,887 25.2%Non-operating income and

expenses(78,308) (10,733) (74,252) 591.8%

Profit before tax 917,928 1,098,522 1,314,635 19.7%Income tax expense 187,067 248,072 285,436 15.1%

Net profits 730,861 850,450 1,029,199 21.0%Non-controlling interests (37,019) 7,366 14,945 102.9%

Net profit attributable to

parent company767,880 843,084 1,014,254 20.3%

EPS 10.86 10.87 12.72

Gross margin 27.1% 24.7% 31.5%

Operating margin 15.2% 14.1% 18.9%

Net profit rate 11.2% 10.8% 14.0%

Q & A

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innodisk corporate · taipei shanghai japan tokyo / china shenzhen bejing chengdu n. america...

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