CUB — Investor Presentation 2021

Apr 20, 2021

CUBELECPARTINC.(2231) Company Introduction of 2021 Investor Conference

2021/04/21

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PART 01 CUB Introduction

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CUB Profile

Year of Establishment: 1979 Year of IPO: 2010 Capital: 43 M U.S.D.

Name of Representative : Arbula Yu, Chairman Number of Employees: 900+ Quality Management System： IATF 16949 ISO 14001

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Harbinger (New Taipei City)

ITM (CA)

CUBTEK (Hsinchu) CUB HQ (Changhua) SH Vei Sheng (Shanghai)

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Company Profile ◼ Cub Group

Transportation system Automotive parts Radar R&D, manufacturing and sales (Taiwan) 420+employees

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SH Vei Sheng
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TPMS mmWave Radar manufacture and sales (Shanghai) 200+employees

mmWave Radar ADAS system R&D and sales (Taiwan/Shanghai/Beijing) 265+employees

Government project Automotive engine contract in the domain of replacement parts defense, transportation, business (North communication and America) system integration 15+employees (Taiwan) 90+employees

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Product Line
Intelligent Fleet Safety Multi-Intelligence
V2X
Transportation Management System Safety Monitoring System
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The largest AM auto parts maker to USA 1979

The best universal TPMS of the world 2007

Cross-strait leader Global top3 mmWave Radar supplier 2016 2021 Multi-intelligence

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PART 02 Financial Information

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Financial Report(2015~2020)

單位：新台幣仟元 Unit: NTD		2015	2015	2016	2016	2017	2017	2018	2018	2019	2019	2020	2020
		Amount	%	Amount	%	Amount	%	Amount	%	Amount	%	Amount	%
Net sales 銷貨收入		2,822,080	100	3,416,549	100	3,520,466	100	4,023,647	100	4,094,666	100	3,340,199	100
COGS 營業成本		1,259,917	45	1,561,638	46	1,645,848	47	2,076,464	51	2,022,724	49	2,067,788	62
Gross Profit 營業毛利		1,562,163	55	1,854,911	54	1,874,618	53	1,947,183	49	2,071,942	51	1,272,411	38
OP Expense 營業費用		313,049	11	499,848	15	572,666	16	705,516	18	894,253	22	886,043	26
OP Profit 營業利益		1,249,114	44	1,355,063	39	1,301,952	37	1,241,667	31	1,177,689	29	386,368	12
Profit before tax 稅前盈餘		1,303,897	46	1,341,336	39	1,153,171	33	1,281,383	32	1,128,848	28	292,503	9
Consolidated income 本期淨利-業主		1,120,274	39	1,115,580	32	1,011,821	29	1,087,876	27	977,780	24	244,534	8
EPS（元） 基本每股盈餘		13.45	-	12.14	-	10.00	-	9.48	-	8.00	-	2.03	-
Capital資本額		833(M)		919(M)		1,012(M)		1,149(M)		1,228(M)		1,219(M)

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PART 03 CUB Group Growing Factors

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CUB Growing Factors

Multi Sensor Integration Intelligent Safety 4 1 Business Key Factors 3 2 Applications

Growing AM Market

Competitive

In-house Development Ability Variant Product Offering Lean Manufacturing

Regulation Built-in Radar

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PART 04 Competitive Edge Independent Technical Solutions Product diversity Lean Manufacturing

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ADAS Advantages

ADAS Core Technology

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ADAS Advantages

⚫ Professional R&D

⚫ Patent Reword

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Engineering functions distribution

經/副理Manager 課長/主任Section Manager 資深工程師Principle Engineer 高級工程師 Senior Engineer 助理工程師 Engineer 工程師 Assistant Engineer

Item	Engineer	Engineer
	TW	SH
FAE	35	12
PM	9	6
S/W Engineer	54	7
H/W Engineer	21	0
ME	32	20
Total	151	45

CUB group developed 24GHz、77GHz and 79GHz Radar (both S/W and H/W) including of Radar algorithm which is core technology. CUB has many patents related to Multi-antenna and circuit fields.

CUB’s 77GHz self-developed Radar technique is flexible for customization.

	TW	China	USA	Eu	Total(Note*)
Award	34	25	8	3	70
Examination	6	10	18	4	38
Total	41	35	26	7	108

Note*: not including unofficial applications

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77GHz / 79GHz Product Line

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77GHz
MRR
79GHz Imaging 77GHz
Radar SRR
(2022 Phase in) High precision 79GHz
Vital Sign
Turn Assist
Detection
Radar
79GHz Radar 77GHz
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ADAS Applications

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AEB
Corner
FCW
Radar
RCW
Turn
FUSION
FCW Assist
LDW
Radar
BSD Modules
LCA Innovative
RCTA R&D
DOW
In-vehicle
Parking
Detection Biological Imaging Radar…etc.
Detection
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ADAS Application of Commercial Vehicle ◼ Commercial Vehicles Driving Assistance

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BSD
BSD
LCA
LCA
Turn Assist
RCTA
DOW
FCW
LCA
Rear Collision
Warning System
BSD
BSD LCA
LCA Turn Assist
RCTA
DOW
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ADAS Application of Passenger Car ◼ OEM Passenger Cars

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FCW
AEB
ACC
Stop &
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In-vehicle
Biological Detection
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ADAS Application of Passenger Car

• ◼ In vehicle Biological Motoring ◼ Vital signs detection

• Euro NCAP starts to rate for cars whether it supports incar kids presence detection.

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• USA is considered to execute HOT CARS act , which force to built-in alarm system to make sure no kids stay alone in a car.

• China is following EU regulations, major car makers pay attention to related technologies.

• In the case, the number of new cars with in-vehicle life presence detection system will be gradually increased in 2022.

In particular, radar technology , which can sense light breathing and heartbeat, detect sleeping baby and pet, become a leading technology in this field. China

China No Car Maker environment Approved effect

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Vital signs
detection
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Privacy
protection
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V2X
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Passenger Cars

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Parkin Assist +BSD g

Hi h S eed BSD、PA、RCW g p

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Su ort Auto-Parkin pp g

BSD、PA、RCW、RCTA

Low S eed p

PA

PA、RCTA

Sto Mode p

DOW

DOW

• Combined serval driving assist functions to reduce total installing time.

• Replace rear side Ultrasound sensor, drilling into bumper is not required.

• Support Auto-parking, replace 6 ultrasound sensors (long + short distance)

• Features Replace rear side Ultrasound sensor, drilling into bumper is not required. 註：倒車輔助系統(PA)：功能符合ISO 17386、ISO22840規範 19 盲區偵測系統(BSD) ：功能符合ISO 17387規範 、 、 後方來車警示(RCW) 側向來車警示(RCTA)

• RAEB supports reverse parking and brakin . g

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Lean Manufacturing ◼ Cross strait automated production line

Shanghai  Automated Production Linex1

Taiwan

 Automated Production Linex1

 x1

 Capacity: 100Kpcs/month

 Capacity: 100Kpcs/month

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◼ Quality System

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ISO 9001
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ISO 1400
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IATF 16949
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PART 05 Regulation Pre-installed Radar

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Global Regulations

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•
China：GB/T 38186、JT-T1242
•
EU：ECE R131、ECE R152、E-NCAP
-
Mid Range AEB C to C test protocol_v3.0.2
•
Radar USA：SAE J3087
•
(MRR) International：ISO 19377、ISO 15623
•
Japan：ECE R131
•
Taiwan：VSCC 72
Regulations •
Short-Range China：GB/T 37471
and •
International：ISO 17387
Corner Radar
•
Standards USA：SAE J2802
•
(SRR)
EU：E-NCAP adopt it for higher rating obtention
Turn Assist
•
China：GB/T XXXXX—XXXX (Draft stage)
BSD Radar for
•
EU：ECE R151 、BMVI Nr. 149
Commercial •
Japan：ECE R151
Vehicles
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ADAS Application of Commercial Vehicle ◼ China Commercial Vehicle OEM

Turn Assist System Continuously deliver products to contribute CUB revenue.

China Top5 Commercial Vehicle Car Maker

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FCW / AEB

CUB market share achieve more than 50%

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2020 China Truck Sales Volume and FCW Radar Scale	2020 China Truck Sales Volume and FCW Radar Scale	2020 China Truck Sales Volume and FCW Radar Scale	2020 China Truck Sales Volume and FCW Radar Scale	2020 China Truck Sales Volume and FCW Radar Scale	2020 China Truck Sales Volume and FCW Radar Scale	Car Qty Unit: 10K	Car Qty Unit: 10K
Ranki ng	Truck Maker	2020 Jan.~Dec.	FCW Radar
			Regulation (GB/T33577-2017) Force implement (JT/T1178.1-2018 Tractor) (JT/T1178.2-2019 Truck)			Regulation kick off (Estimation) 2021 Shipping Qt keeps increasing arket share achie ~~more than 50%.~~
			Tractor	Truck	Amount ~~m~~
1	一汽解放	37.69	23.27	2.88	26.15	5.36
2	東風集團	31.11	11.40	3.94	15.34	4.82
3	中國重汽	30	15.64	2.87	18.51	8.82
4	陝汽集團	22.73	14.13	1.72	15.85	5.34
5	北汽福田	15.02	9.24	1.16	10.40	3.22
6	上汽紅岩	8.01	2.54	1.09	3.63	1.38
7	江淮汽車	5.39	1.39	0.80	2.19	0.61
8	大運汽車	3.57	3.22	0.07	3.29	1.20
9	徐工汽車	2.77	0.90	0.37	1.27	0.53
10	華菱汽車	2.12	0.60	0.30	0.91	0.20
11	其他	3.89	1.17	0.54	1.71	0.72
Total		162.30	83.49	15.76	99.25	32.20

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Trend of Electric Cars

Schedule of banning new gas cars

Schedule of prohibit from non-electric cars on road

Denmark Singapore, Sri Lanka , New York

Costa Rica

Japan, England, German, Norway, Dutch Korea, UA California, Canada Quebec

Dutch, Milan, London, Auckland, Canada, Spanish, French, Barcelona, Cape Town, Copenhagen, Taiwan(suspended), Heidelberg, Los angles, Seattle, British Columbia Vancouver, Hainan

Sweden, Israel, England(allow hybrid car), Ireland, Iceland, Slovenia, Denmark, Belgium, India(may cancel)

資料來源: TechNews 科技新報

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─ Radar Rapid Growing ADAS plus driverless will be the mainstream.

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North America Electric Car Trend

Our NA partner received new order with extreme high amount of electric bus . Pedestrian detection is must.

MIH Electric Car Platform CUB group is key partner.

資料來源: canalys https://www.canalys.com/newsroom/canalys-global-electric-vehicle-sales-2020

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Driverless Policy

To deal with complicated environment when driving, resolution、detection distance、detection angle、bandwidth…etc., has to be leveled up. SRR will replace ultrasound radar gradually, Radar usage is proportional to driverless level.

Imaging/AI

High Resolution

Consumption amount/ Distance/Angle

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放眼高度自駕-強化車內車外感知應用

資料來源：

Market Achievement

Japan Wrong step on brake & driving assist integration keeps shipping to customer. (Drivers older than 65 are granted )

2

3

1

China

• Selling FCW to top10 commercial car makers.

• • Market share over 50%

USA Pedestrian detection on school bus keeps shipping.

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PART 06 mmWave Radar Applications Growing AM Business

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– AM Applications Automotive Field

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Bus Engineering Vehicle Camping Car

Truck

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Automotive Applications
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Motorcycle

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AIM Expo 2019 Best Innovation Award

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Daimler Truck Detection System Award 2019

School Bus Police Car

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AM Applications – Turn Assist for Commercial Vehicle

High potential technique, the 1[st] radar turn assist system of the world

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China Market
6
5
1
4
Taiwan Market
2
EU Market
USA Market
Middle Eastern Market
3
Australian Market
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– Public Engineering and Others

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Public
Transport/
Driverless/
ADAS
Medical
LTC Agricultural
Plant Protect Drone
Radar
Public
Others
Utilities
Security Monitor
Intelligent
Railroad Crossing Monitor
Traffic
平交道監測
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PART 07 Multi Sensor Integration Intelligent Safety, Time to Market

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Multi Sensor Integration Intelligent Safety , Time to Market

	Anti-Light Interference	Unaffected whether day or night	Unaffected by Fog	Detection Sensitivity	Location Accuracy	Shape	Speed Accuracy	Privacy	Biological Characters	Traffic Signal & Lane Detection
mmWave Radar	Good	Good	Good	Good	High	No	High	Yes	Breath、 Heartbeat	No
Imaging Radar	Good	Good	Good	Good	High	Yes	High	Yes	Breath、 Heartbeat	No
Thermal Imager	Medium	Good	Medium	Good	Low	Yes	Low	No	Temp	No
Image	Bad	Bad	Bad	Medium	Low	Yes	Low	No	Breath、 Heartbeat (N/A at night)	Yes

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Intelligent Safety , Time to Market

mmWave Radar 1 CUBTEK Imaging Radar 2 CUBTEK Thermal Imager 3 3svision (4/29 Acquired)

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Intelligent Intelligent
Transportation Driving
Intelligent
City
Approaching
Strategy
National
Intelligent
Defense
Motoring
Field
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Multi Sensor 3 Integration 4

3svision (4/29 Acquired) Networking and System Integration Harbinger

5

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Intelligent Safety Motoring Achievement

◆ Obstruction Detection of Railroad Crossing (Taiwan Railway )

◆ Intelligent Intersection Motoring System

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Quiet Zone
Detection
Area
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Thermal Imaging Camera

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Radar Sensor

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WHY

Regulation Trends - Take Preemptive Actions

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In-house Technology & Industrial Leader

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Why
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Cross Fields Applications & Complete Product Line

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Reliable Supplier of Our Customers

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Your Driving Safety Guard
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Q & A

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