DAVICOM — Investor Presentation 2016

Dec 15, 2016

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Davicom Semiconductor, Inc. (Ticker Symbol: 3094)

Investor Conference

Held by Reliance Securities Co., LTD. Dec. 15, 2016

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Agenda

• Company Profile

• Product Application & Development

• IoT & Cloud Service

• Product Roadmap

• Strategy in China and Japan Market

• Operation in Retrospect and Prospect

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Agenda

• Company Profile

• Product Application & Development

• IoT & Cloud Service

• Product Roadmap

• Strategy in China and Japan Market

• Operation in Retrospect and Prospect

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Worldwide Headquarters

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Located at Hsinchu Science Park, Taiwan, R.O.C.

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Facts Briefing

100+

and Solution Provider Ethernet, Video Decoder, E-Paper Display Driver and SoC

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Core Technology

Microprocessor & MCU

Mixed Signal

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Product Portfolio

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Ethernet E-Paper Display Driver (EPD) SoC Video Decoder

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Agenda

• Company Profile

• Product Application & Development

• IoT & Cloud Service

• Product Roadmap

• Strategy in China and Japan Market

• Operation in Retrospect and Prospect

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The Next Big Things - IoT

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Courtesy of TI

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IoT - General View, 3 Layers

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Where We Are 機場 都會 公共 農業 遠距 Public Remote APPLICATION LAYER (Cloud)Air port 管理 ManagementMetropolis 管理 Security 安全 Agriculture 規劃 Medical service 醫護 APPLICATION LAYER (CLOUD) NETWORK LAYER 智慧醫 Davicom Ethernet 網路 Networking 療健康 監視器 Connectivity Products 智慧 穿戴式 智慧貨 家居 裝置 架標籤 Davicom SoC Davicom EPDSENSOR NETWO Davicom RK LAYVideo ER Products Products Decoder Products SENSOR NETWORK LAYER

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Electronic Shelf Label

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Wireless to
Ethernet
Bridge
Solution
EPD
Solution
for ESL
( 電子貨架
標籤 )
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Smart Retail
Cloud
Service
EPD $3.99 RFID
Solution Solution
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Elder Nursing System

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Public Community
RFID
Reader
Cloud
Services
Son
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Child Guard System
Elementary School
Siren
with Public
RFID RFID
Tag Reader
Cloud
Services
Parents
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HearingPod System

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Product Roadmap Ethernet Ethernet • IoT Markets: Wireless to • IoT Markets: Wireless to Ethernet Bridge Ethernet Bridge Ethernet • Features: Low Power • Features: Protocol Accelerator Segment EPD Dot-Matrix EPD • Markets: OTP (One-Time • Markets: ESL, Wearable Devices • Power Saving Password) ATM Card/PreEPD • • Features: Graphic Display, Rugged Devices paid Card, ESL, Wearable/Portable Devices Multiple Colors • Wireless Energy Harvesting • Features: Diversity of Segments, Low Power SoC SoC SoC • Markets: Healthcare • Features: RF Power Driven Gadgets, Battery-Powered Devices, OTP ATM Card/Prepaid Card • Features: Low Power Promoting Developing

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System Solution

• Smart Retail System

• Multi-linked e-paper module

• Broadcasting gateway

• Customer behavior analysis cloud

• Elder Nursing System

• Commercial grade UHF sensor

– Wireless data-collection

– Go-out record cloud

• Child Guard System

– Siren-based active tag

– Tracking cloud

• HearingPod System

• HearingPod gadget

• User experience cloud

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Agenda

• Company Profile

• Product Application & Development – IoT & Cloud Service

• Product Roadmap

• Strategy in China and Japan Market

• Operation in Retrospect and Prospect

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Marketing Strategy in China

• Extension

Following up the existing success of network on the PC since 1990 and the embedded system since 2000, now penetrating to the network on the IoT domain since 2010

• Expansion

Optimizing the resources in IoT and strengthening collaboration for EPD applications, to broaden the China markets in Smart Card, ESL, Sensor Networking and Industrial fields

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Marketing Strategy in Japan

• Extension

Following up the long term of relationship with the branded entities and the solution providers in Japan domestic, to penetrate the Japan IoT market

• Expansion

In the diversity of IoT domain, by adopting product lines of EPD and RFID solutions, integrating ODM resources in Taiwan and system integrators in Japan, and aiming at Smart Card Market and ESL Market

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Agenda

• Company Profile

• Product Application & Development

• IoT & Cloud Service

• Product Roadmap

• Strategy in China and Japan Market

• Operation in Retrospect and Prospect

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Operation in Retrospect and Prospect

• Retrospect

Upholding the pragmatism and prudent business management, running Ethernet as a core business, and pursuing a high profit of business. ~ Revenue and Profit, Q3/2016 Q1 Q3/2016 Revenue NTD 76,450K NTD234,952K Gross Margin 69% 70% Operating Income NTD 13,989K NTD 47,023K Earning After Tax NTD 13,234K NTD 48,781K

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Operation in Retrospect and Prospect

• Prospect

Along with the success of networking business, moving toward the people-oriented and diverse IoT domains, focusing on the prospective businesses – offering key components and core solutions for Smart Card, Smart Retail, Smart Medical, Cloud Service.

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Connectivity Beyond Limits

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