April 12, 2017

Stock No : 4549

1

Company Profile

Speaker: Nancy Hsu/Special Assistant

Introduction

� Group overview

� 2016 Financial outlook

� Grow up driving

- new product

- high value industry

- Internet of thing

2

Group Overview

3

集團概況

4

Set up Shanghai factory

Build upM&A

Aplus Finetek

Set up SingaporeFinetek Pte Ltd

Set up I-Lan Factory

Flow Meter Calibration pass TAF Laboratory Certificate

Set up Indonesia Branch office

Set up Malaysia branch office

M&A Germany mutec GmbH in Oct. 2016 Set up Germany

Finetek GmbH

November 2014 IPO

Company Milestone

� The largest level and flow sensor manufacturer for Process Automation

in Taiwan and Asia countries

� Over 60% customs design solution with high margin

� Products application cover all of automation industry

5

About Finetek

Factory

� Taiwan Tu-Cheng

- Key components production line

- Customs design production line

- supply to China, Taiwan and overseas market

� Taiwan I-Lan

- Standard products and high volume orders

- Flow meter Calibration system

- supply for oversea and Taiwan market

� China Shanghai

- Simple Assembly line

- supply for China market only

6

Organization

245

2060

180

TotalTu-Cheng FactorySales & RD center

I-Lan Factory, Taiwan

Shanghai FactorySales office in China

Overseas sales office

525

7

20

Hamburg Factory, Germany

8

Global Sales Channel

� Taiwan – Head Quarter, RD Center, Main Production

� China – 8 sales branch offices, head office in Shanghai

� Overseas office - Germany Frankfurt, Hamburg

USA Los Angeles and Chicago

Singapore, Indonesia, Malaysia

� Overseas distributor – over 500 distributor in the world

2016

Financial outlook

9

10

Revenue & Net Income

11

Gross Margin & Net Margin

12

Earnings Per Share & Return on Equity(%)

5.12

5.68

3.50

4.35

21.90%

19.17%

10.82%

13.64%

5.00%

10.00%

15.00%

20.00%

25.00%

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2013 2014 2015 2016

EPS(NT$) Return on Equity

Income statement

Item 2014 2015 2016

NT$ % NT$ % NT$ %

Sales Revenue 915,529 100 829,080 100 865,748 100

Gross Profit 539,886 59 476,165 57 495,079 57

Operating Income 217,143 24 139,842 17 188,148 22

Non-operating Income and Expenses

27,702 3 23,446 3 (3,565) (1)

Net Income 192,807 21 131,960 16 167,437 19

Earning Per Share 5.68 3.50 4.35

Cash dividends 3.8 2.8 3.0

Stock dividends 0.2 0.2 0.5

Payout ratio 70% 86% 80%

In NTD thousands, except EPS

13

Balance sheet

Item 2014 2015 2016

NT$ % NT$ % NT$ %

Cash and cash equivalents 520,708 36 564,265 40 465,609 31

Receivable 189,894 13 150,548 10 185,109 13

Inventory 187,456 13 169,691 12 178,733 12

Other Current Assets 135,347 9 42,969 3 20,980 2

Property, plant and equipment, Other Non-current Assets

423,525 29 498,863 35 620,333 42

Total Assets 1,456,930 100 1,426,336 100 1,470,764 100

Bank Debt 14,070 1 20,000 1 28,385 1

Other Current Liabilities 152,265 11 135,239 10 158,930 11

Other Long-term liabilities 62,671 4 59,203 4 40,500 3

Total Liabilities 229,006 16 214,442 15 227,815 15

Total Equity 1,227,924 84 1,211,894 85 1,242,949 85

AR Turnover Days 69 75 71

Inventory Turnover Days 174 185 172

AP Turnover Days 45 44 51

In NTD thousands

14

15

Item 2014 2015 2016

Cash flows from operating activities

176,513 211,376 188,255

Cash flows from investing activities

(125,134) (15,076) (142,305)

Cash flowIn NTD thousands

Grow up driving

- new product

- high value industry

- internet of thing

16

Solid

Level Sensor

Application to measure and control the storage for various powder, solid, mining, volume feeding or chemical plastic….

17

Application to measure and control the storage for various water, waste water, flow liquid, chemical acid or petro-chemical….

Liquid

Total Solution for Powders & Bulk Solids

19

Flow Meter Business

� Sanitary : Food、Medical Equipment

� Battery : remote districts、Desert area、Loop Power Area

� Separate : Waste Water、Drinking Water

� Standard : Machine Maker、Water Treatment

� Paddle : F&B、Chemical

� Economic : suitable install in site of factory

Sanitary

SeparateStandard Paddle

Economic

20

Pneumatic Vibrator

Air Hammer

Air Control Unit

21

ED Series Speed

Monitor

SRS Series

Safety Cable Pull Switch

SRT Series Conveyer Belt Misalignment Switch

Materials Management System

Conveyer Safety system

22

Oil & Gas Business

� Resistive Float Level Transmitter

� Magnetic Flow Transmitter

� Level Switch

� Enclosure/Components

23

Integrated System- Remote control System

Flexible Magnetic Duel Float Level Transmitter for interface application

Ship Ballast tank ( Irregular tank shape)

Onshore Drilling ( Fracking process )

Duel-Float to detect oil & water at the same time.

24

IOT - Smart City Business

� Radar : River water level monitoring

� Ultrasonic : River water level measuring

� Pressure : sewer water monitoring

� Flow Meter : waste & rainy water monitoring

� Capacitance (Solar Energy、GSM)

* Dealers underpass

* under ground water monitoring

Radar Pressure Flow Meter CapacitanceUltrasonic

25

� Grain Storage Tank Monitoring

� Food、Feeding、Storage Tank

Temperature

MMS Grain Temp & Level Monitoring System

IOT – Raw Material Storage Tank

Monitoring System

FineLink Moisture Measuring

26

Integrated System- ATG System

with Magnetostrictive Level Transmitter

Magnetostrictive Level Transmitter

• Interface detection• 1-4 digit temperature

display• Linking Alarm• Shift record• Volume / Height

conversion • Ex-proof enclosure

certificate• Accuracy +/- 0.1mm

27

Integrated System- LORA Transmissionwith Capacitance Level Transmitter (Solar battery)

Q & A

28