Alpha — Investor Presentation 2014

Mar 27, 2014

2013 Results Presentation

2014/3/27

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

1. 2013 Financial Reviews

2. 2013 Business Updates

3. Alpha’s Cloud Deployment

4. Applications driven SDN

5. Deployment of 10G to100G Data Center SDN Switch

6. The Solution of SMB Hybrid SDN

7. 2014 Company Outlook

8. Q&A

2013 Consolidated Income Statement & YoY Comparison

Unit: NT$ million	2013	2012 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 % 24,104 100.0 20,394 84.6 3,710 15.4 2,876 11.9 834 3.5 130 0.5 964 4.0 780 3.2 1.60	Amt % % 24,907 100.0 -3.2 21,033 84.4 -3.0 3,874 15.6 -4.2 2,826 11.4 1.8 1,048 4.2 -20.4 (91) (0.4) 242.9 957 3.8 0.7 742 3.0 5.1 1.46

1 Attributable to stockholders of parent company, excluding non-controlling interests.

2013 Revenue Breakdown by Product & YoY Comparison

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2012 2013
LAN/MAN
14% 2% Wireless
18% [0%]
8%
11% 46% Mobile & Broadband
27% 49% 25%
Digital Multimedia
Others
NT$M
2012 2013
15,000
-9 % YoY
10,000
- 12 % YoY
5,000 12,183 11,078 24 % YoY 25 % YoY
6,779
5,948
2,087 2,595 3,453 4,311
0
LAM/MAN Wireless Mobile & Digital
Broadband Multimedia
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Alpha’s Cloud Deployment

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Mega Main Cloud
Data
Center
Broadband
PON/VDSL
Broadband
PON/VDSL
Enterprise Cloud
24G
Fixed
Radar Router
LTE/WiFi LTE CPE
Small Cell
LTE/WiFi Home Cloud
Private
Small Cell
Cloud Connected Home
Alpha is a complete Cloud Solution Provider
Copyright © 2014 Alpha Networks Inc. All rights reserved 6
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Applications driven SDN

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SDN Controller
Applications
Control Plane
Routing
Open Flow/
Protocols
Control ForCES/
Plane Decoupled Control and Data Planes, SNMP
Data Centralized network states and intelligent.
Data
Plane
Plane
Network
Management Network
Management
Control
Plane Control
Traditional
Data Plane Data
Plane Switch
Data Plane Data
Network Plane SDN Switch Plane
Control Network
Management
Plane Network Management Network
Management
Data Management
Plane
Data
Network Plane
Management
Network
Copyright © 2014 Alpha Networks Inc. All rights reserved Management 7
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Development of 10G to 100G Data Center SDN Switch

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24 x 40GE
4 x 100GE
32 x 40GE
SDN
40GE
48 x 10GE + 6 x 40GE
24 x 10GE + 4 x 40GE
SDN
10GE
Copyright © 2014 Alpha Networks Inc. All rights reserved
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The Solution of SMB Hybrid SDN
SDN Controller
Centralize Network Management, Accounting, Applications
Routing Authentication, Authorization, and
Protocols Provisioning,…, Controller
Control Network
Plane Management
Data
Plane
Routing
Network Control
Protocols
Management Plane SNMP, CLI
Data
Control
Plane
Plane Control
Traditional Switch
Data Plane
Plane
Data
Network Plane Control Alpha SMB
Management Control Network Plane SDN Switch Control
Plane Management Data Plane
Data
Plane Data
Plane
Plane
Network Control
Management Plane
Data
Plane
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• Simplify Network Management, solve the issue of IT staff shortage in SMB.

• Leverage the existing switches and protocols, centralize the management to Controller.

• Suitable for the environments that require frequent changes, such as Campus or Enterprise WiFi AP Networking.

2014 Company Outlook

• Expanding cloud business and engaging with first-tier customers.

• Developing products and biz of Internet of Things (IoT).

• A leading-edge product mix

• SDN, 40G/100G and Switch (Cloud Core)

• LTE Router/Small Cell (Cloud Path)

• Connected Home Devices, such as IP Cam, NAS, STB, Smart Router, …(Cloud CPEs)

• Capacity expansion in Changshu, China.

Q&A

Copyright © 2014 Alpha Networks Inc. All rights reserved