Alpha — Interim / Quarterly Report 2013

Mar 13, 2013

4Q12 Results Investor Conference

March 13, 2013

Safe Harbor Statement

Except for statement in respect of historical matters, the statement contained in this release are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of Alpha Networks Inc. to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements.

Agenda

2012 Financial Reviews

• Mason Liu, Vice President

2012 Business Updates & 2013 Company Outlook

• Harrison Chang, President

2013 Growth Drivers - Tim Kang, CTO

Q&A - John Lee, Chairman

• Harrison Chang, President - Tim Kang, CTO - Mason Liu, Vice President

2012 Financial Reviews

Presented by Mason Liu Vice President

4Q12 Consolidated Income Statement & QoQ Comparison

Unit: NT$ million	4Q12		3Q12 增(減)
Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Non-Op. Inc. (Loss) Income Before Tax Net Income1 EPS (NT$)	Amt % 5,536 100.0 4,672 84.4 864 15.6 683 12.3 181 3.3 10 0.2 191 3.5 175 3.2 0.35		Amt % % 6,210 100.0 -10.9 5,280 85.0 -11.5 930 15.0 -7.1 727 11.7 -6.1 203 3.3 -10.8 (36) (0.6) 127.8 167 2.7 14.4 143 2.3 22.4 0.28

1 Attributable to stockholders of parent company, excluding minority interest.

2012 figures are unaudited

4Q12 Non-op Income / Loss Breakdown & QoQ Comparison

==> picture [583 x 247] intentionally omitted <==

----- Start of picture text -----

Unit: NT$ million 4Q12 3Q12
(8) (10)
Interest Gain (Expense)
7 (56)
FX Gain / (Loss)
Others 11 30
Total 10 (36)
----- End of picture text -----

==> picture [177 x 14] intentionally omitted <==

----- Start of picture text -----

2012 figures are unaudited
----- End of picture text -----

2012 Consolidated Income Statement & YoY Comparison

Unit: NT$ million	2012	2011 YoY Change
Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Non-Op. Inc. (Loss) Income Before Tax Net Income1 EPS (NT$)	Amt % 24,907 100.0 21,040 84.5 3,867 15.5 2,845 11.4 1,022 4.1 (91) (0.4) 931 3.7 716 2.9 1.41	Amt % % 25,468 100.0 -2.2 21,701 85.2 -3.0 3,767 14.8 2.6 2,826 11.1 0.6 941 3.7 8.6 240 1.0 -137.9 1,181 4.7 -21.2 950 3.7 -24.6 2.01

1 Attributable to stockholders of parent company, excluding minority interest.

2012 figures are unaudited

2012 Non-op Income / Loss Breakdown & YoY Comparison

==> picture [583 x 247] intentionally omitted <==

----- Start of picture text -----

Unit: NT$ million 2012 2011
(41)
(30)
Interest Gain (Expense)
(77) 220
FX Gain / (Loss)
27
Others 50
Total (91) 240
----- End of picture text -----

==> picture [177 x 14] intentionally omitted <==

----- Start of picture text -----

2012 figures are unaudited
----- End of picture text -----

Dec .31’ 2012 Consolidated Balance Sheet & YoY Comparison

Unit: NT$ million	Dec.31, 2012		Dec.31, 2011 YoY change
Cash Account Receivable Inventory Other Assets Total Assets Current Liabilities L-T & Other Liabilities Total Liabilities Common Stock Shareholders’ Equity	Amt % 2,371 14.2 5,865 35.0 3,625 21.7 4,868 29.1 16,729 100.0 6,173 36.9 692 4.1 6,865 41.0 5,137 30.7 9,864 59.0		Amt % % 3,267 16.3 -27.4 7,319 36.5 -19.9 4,787 23.9 -24.3 4,662 23.3 4.4 20,035 100.0 -16.5 9,345 46.7 -33.9 1,047 5.2 -33.9 10,392 51.9 -33.9 4,757 23.7 8.0 9,643 48.1 2.3

2012 figures are unaudited

2012 Business Updates & 2013 Company Outlook

Presented by Harrison Chang President

4Q12 Revenue Breakdown by Products & QoQ Comparison

==> picture [678 x 373] intentionally omitted <==

----- Start of picture text -----

3Q12
4Q12 LAN/MAN
1%
15%
7% 17% 2% Wireless
49%
28% 8% 49% Mobile & Broadband
24%
Digital Multimedia
Others
NT$M
3Q12 4Q12
-11% QoQ
4,000
3,000 -27% QoQ
+2% QoQ
2,000 +10% QoQ
3,027
2,691
1,000 1,777
1,305
429 473 904 918
0
LAN/MAN Wireless Mobile & Digital
Broadband Multimedia
----- End of picture text -----

==> picture [177 x 14] intentionally omitted <==

----- Start of picture text -----

2012 figures are unaudited
----- End of picture text -----

2012 Revenue Breakdown by Products & YoY Comparison

==> picture [38 x 14] intentionally omitted <==

----- Start of picture text -----

2011
----- End of picture text -----

2012

==> picture [679 x 349] intentionally omitted <==

----- Start of picture text -----

LAN/MAN
1%
15% Wireless
14% [2%]
8% 8%
49% Mobile & Broadband
28% 48% 27%
Digital Multimedia
Others
NT$M
2011 2012
15,000 +0% YoY
-4% YoY
10,000
-8% YoY
12,181 12,183 -5% YoY
5,000
7,079 6,779
2,189 2,087 3,738 3,453
0
LAN/MAN Wireless Mobile & Digital
Broadband Multimedia
----- End of picture text -----

2012 figures are unaudited

2013 Company Outlook

• The investment in Mobile Broadband

• Capture the opportunities of Cloud applications

• Capacity expansion in Changshu, China.

• A more favorable product mix

• Focus on expanding first-tier customers

2013 Growth Drivers

Presented by Tim Kang CTO

10G/40G/100G Switch

Data Center Switch ( Cloud )

192 40Gbit Ports

20% -> 25%

768 10Gbit Ports

Support OpenFlow ( SDN )

Unified Switch

Alpha’s software ( KAPWAP )

Telco, Enterprise, SMB

Unified Switch

+

IEEE 802.11ac

1x1, 2x2, 3x3

10% to 15% of Wi-Fi Router

Enterprise AP / Hotspot AP

Deployed with Alpha’s software

Hotspot 2.0

3G/LTE Small Cell

Alpha’s software ( IuH standard ) 3G/Wi-Fi dual mode

IOT with Telco

G-PON SFP & ONT

Alpha’s software ( OMCI, eCos ) Smallest footprint

IP-Cam

Cloud Device ( Smart phone, ..., etc. )

Retail -> Telco

OTT Box

AOS ( Alpha Operating System )

DLNA, UPnP, Miracast Hybrid IP-STB

Q&A