FICG — Interim / Quarterly Report 2021

Nov 1, 2021

FIC GLOBAL Future Market Position & Business

1[st] of Nov, 2021

1

FICG Historical Evolution

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FIC Established Transformation Transformation
IPO FICG Upgrade
• Sales Dropping • Sold non-profitable Factories • Eliminating debts, Kept
• Various Businesses • Factories upgraded 3C to 4C profitable businesses,
Search for new • Invested Future Potential upgraded business structure
direction, like FITEL Products, like IPC, Automotive • PCBA service upgraded to Aviation Level
Financial loss electronics, expanding auto- • 組裝升級至航太等級
business in OE market. Aiming • Gain orders from potential customers
automotive electronic manu- • Cooperated with Tier 1 to develop AR HUD
facturing service.
• Computer Agent Business
• 1985 Start Producing Production
Computer in China
• 1990 Computer Business Prior Transformation
Growing in TW Consequence
Time
1979 1991 2004 2005 2008 2016 2018
Business Value
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• The first 20 Years, focused on MB & computer assembly business, stable and IPO, but sales dropped after because of market competition severely.

• ■ After 2008, started eliminating non-profitable factories, searched for new profitable direction

2

FICG Future Plan

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Business Value
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• Target Confirm, Expand Escalating Curve Speed up Business • Expand ARHUD Market Shares Globally • Build Up Smart Green System Platform, increase city energy management

• • Business Models and Products

• • Lower Cost, Increase Production Capacity, Efficiency and Gross Profits.

  • Expand ARHUD Market Shares Globally

  • • Build Up Smart Green System Platform, increase energy exchange rate, provide optimization of smart city energy management

  • Bringing Smart Green City Management into Real Business Models and Products

• Focus on developing new technology for

• profitable products and markets.

• Received Aviation Certification AS9100D

• AR HUD ready for Shipping, Orders Keep Growing Up.

• • Target, Market Position, Business Direction, Profit Model Confirm

Time

2021 2022~2026

■ ARHUD drives sales and profits, and focuses on technology development, aiming for future revenue growth ■ Cooperate with Tier1 and car manufacturers for automotive and green business, expanding growth curve, targeting as being an international large scale of automotive electronics supplier , and Innovative Business Model of Green energy management for creating, saving and storing energy. ■ Also, profound investing in IPC business, layout in marine, military, aviation, 6G businesses. 3

FIC Global Structure

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FIC Group DMS

• ODM/DMS Service

• Digital Cluster Design

• AR HUD Design

• IVI/ADAS/ECU/BMS/V CU/OBDII Designs

• Fleet Management

• Energy Management

• (Create/Store/Save)

• Intelligent Surveillance Solution

• EPC(Solar Power Plant)

• Smart City Solution

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3CEMS Group EMS

• PCB & FPCB

• PCB Assembly

• Box-Build

• EMS/JDM

• Supply Chain Management

• Turnkey Solution

• System Assembly

• System Integration

• Server Manufacturing

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Ubiqconn Tech IPC ODM

• ARM/x86

• Windows/Android/Linux

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• Rugged Mobile Computers

• SI Business

Balance Sheet Highlights

Unit ： NT$K

	2021.06.30	%	2020.06.30	%
Cash and cash equivalents	955,421	12	553,987	8
Accounts receivable, net	1,926,792	23	1,787,487	27
Current inventories	2,348,700	29	1,399,889	21
Property, plant and equipment	571,416	7	610,418	9
Right-of-use assets	386,208	5	475,527	7
Investment property, net	957,062	12	959,951	14
Total assets	8,165,256	100	6,761,779	100
Total liabilities	4,377,054	54	3,315,554	49
Total equity	3,788,202	46	3,446,225	51

FIC confidential and proprietary. Subject to change without further notification

2021.01.01~ 2021.06.30 % 2020.01.01~ 2020.06.30 % Operating revenue 4,437,305 100 3,017,562 100 Operating costs (3,881,158) (87) (2,570,166) (85) Gross profit from operations 556,147 13 447,396 15 Total operating expenses (464,886) (11) (483,970) (16) Net operating income (loss) 91,261 2 (36,574) (1) Total non-operating income and expenses 119,693 3 82,803 2 Tax expense (16,323) (1) (26,567) (1) Profit 194,631 4 19,662 - Net Income Attributable to Stockholders of the Parent 116,109 2 (13,942) (1) EPS（NTD） 0.61 (0.07) Statements of Comprehensive Income Unit：NT$K	2021.01.01~ 2021.06.30 % 2020.01.01~ 2020.06.30 % Operating revenue 4,437,305 100 3,017,562 100 Operating costs (3,881,158) (87) (2,570,166) (85) Gross profit from operations 556,147 13 447,396 15 Total operating expenses (464,886) (11) (483,970) (16) Net operating income (loss) 91,261 2 (36,574) (1) Total non-operating income and expenses 119,693 3 82,803 2 Tax expense (16,323) (1) (26,567) (1) Profit 194,631 4 19,662 - Net Income Attributable to Stockholders of the Parent 116,109 2 (13,942) (1) EPS（NTD） 0.61 (0.07) Statements of Comprehensive Income Unit：NT$K	2021.01.01~ 2021.06.30 % 2020.01.01~ 2020.06.30 % Operating revenue 4,437,305 100 3,017,562 100 Operating costs (3,881,158) (87) (2,570,166) (85) Gross profit from operations 556,147 13 447,396 15 Total operating expenses (464,886) (11) (483,970) (16) Net operating income (loss) 91,261 2 (36,574) (1) Total non-operating income and expenses 119,693 3 82,803 2 Tax expense (16,323) (1) (26,567) (1) Profit 194,631 4 19,662 - Net Income Attributable to Stockholders of the Parent 116,109 2 (13,942) (1) EPS（NTD） 0.61 (0.07) Statements of Comprehensive Income Unit：NT$K	2021.01.01~ 2021.06.30 % 2020.01.01~ 2020.06.30 % Operating revenue 4,437,305 100 3,017,562 100 Operating costs (3,881,158) (87) (2,570,166) (85) Gross profit from operations 556,147 13 447,396 15 Total operating expenses (464,886) (11) (483,970) (16) Net operating income (loss) 91,261 2 (36,574) (1) Total non-operating income and expenses 119,693 3 82,803 2 Tax expense (16,323) (1) (26,567) (1) Profit 194,631 4 19,662 - Net Income Attributable to Stockholders of the Parent 116,109 2 (13,942) (1) EPS（NTD） 0.61 (0.07) Statements of Comprehensive Income Unit：NT$K	2021.01.01~ 2021.06.30 % 2020.01.01~ 2020.06.30 % Operating revenue 4,437,305 100 3,017,562 100 Operating costs (3,881,158) (87) (2,570,166) (85) Gross profit from operations 556,147 13 447,396 15 Total operating expenses (464,886) (11) (483,970) (16) Net operating income (loss) 91,261 2 (36,574) (1) Total non-operating income and expenses 119,693 3 82,803 2 Tax expense (16,323) (1) (26,567) (1) Profit 194,631 4 19,662 - Net Income Attributable to Stockholders of the Parent 116,109 2 (13,942) (1) EPS（NTD） 0.61 (0.07) Statements of Comprehensive Income Unit：NT$K
	2021.01.01~ 2021.06.30	%	2020.01.01~ 2020.06.30	%
Operating revenue	4,437,305	100	3,017,562	100
Operating costs	(3,881,158)	(87)	(2,570,166)	(85)
Gross profit from operations	556,147	13	447,396	15
Total operating expenses	(464,886)	(11)	(483,970)	(16)
Net operating income (loss)	91,261	2	(36,574)	(1)
Total non-operating income and expenses	119,693	3	82,803	2
Tax expense	(16,323)	(1)	(26,567)	(1)
Profit	194,631	4	19,662	-
Net Income Attributable to Stockholders of the Parent	116,109	2	(13,942)	(1)
EPS（NTD）	0.61		(0.07)

FIC confidential and proprietary. Subject to change without further notification

AR HUD The Future Standard Market Trends of Automotive Electronics

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CES 2021

Innovation Awards Winner / AR HUD – Laser Beam Scanning

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7

Driver’s Pain Point ： Pay attention to many things to ensure driving safety.

Pain Points

Needs

Solution

• It's dangerous to look down at • Get the required driving • The vehicle information is the cluster or navigation. information without leaving the displayed on the front windshield.

• • Navigation instructions are focus on the road. • AR dynamic navigation indication. abstract and difficult to • Simpler navigation method. • Night and road blind spot visual understand. • Clearer warning of foreign emphasis function.

• • It's hard to see cars coming objects on the road. • Visual reminder of real-time road from the blind spot. • Remind the driver to mark the conditions and speed limit.

• • • Foreign objects that are difficult blind spot. Visual dynamic object emphasis to notice on the road. • Remind drivers of speed limit. reminder.

• • Many driving blind spots are • Warn drivers of the dangers dangerous. they must pay attention to while

• • Violation caused by unclear driving. Drivers can have a better driving speed limit.

• • Unclear pedestrian position experience of safety information. causes traffic accident.

Drivers can have a better experience of safety information.

8

AR HUD provide complete dynamic information Becomes an indispensable display screen (function) of the vehicle.

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Speedometer Navigation
Tachometer Driving Condition
Core Info
Front Car
Fuel
Info
Water Temp Position
Navigation
Outside Temp Night
Safety Condition
Normal Instant Liters Front Car
Infor
Vehicle Environmental
Transmission
Info Info Bluetooth
Warning Life
Guiding Info Parking
Info
Active
Warning Info 1
Meeting
Warning Info 2 Business
Tire Email
Extra Functions
Core Functions
Outer Park Entertain Music
Important Functions
ment
Balance Assistance Functions Internet
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9

AR HUD PROVIDES ACTIVE DRIVING INFO, FUTURE STANDAR FUNCTION

Tesla has removed the cluster. In the future, AR HUD will become the standard and function of future vehicles under the driver's pain points, active driving and safety demands.

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Intuitive
Pedestrian
Navigation
Reminder
Oncoming Car
Reminder
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10

10m

B projection (far)

Navigation ADAS

LDW, FCW PD, TSD

A projection (near)

4m

Steady: Non-Steady: DMS: Speedometer Tachometer Facial ID Direction Gas meter Fatigue Manual pilot Incomings ZONE Abnormal Action Autopilot System failure Distraction Car info Warnings 360 〫 Charging

11

BUSINESS OPPORTUNITIES OF AR HUD

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CAR MANUFACTURERS POSITIVELY IMPLEMENTING AR HUD INTO CARS

12

13

AR HUD Light Sources Comparison LBS becomes mainstream of Light Source in the future

TFT (Thin Film Transistor)

Brightness: Lower

Projection becomes blurry when zooming in Grayscale / Backlight: Translucent, projected images on windshield Low light utilization, inefficient energy management that requires space and design for heat dissipation

DLP

(Digital Light Processing)

Brightness: Higher Large projection size Grayscale/backlight: backlight light leakage / gray scale: not dark enough Low light utilization, inefficient energy management that requires space and additional design for heat dissipation

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HUD
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LBS

(Laser beam Scanning)

Brightness: Higher Large projection size Free focus Small HUD package Easier heat dissipation

14

FIC AR HUD Advantage

Image quality of AR HUD in multi scene (day and night)Need to solve: brightness, color, clarity, contrast, ghosting... Etc LBS(LASER Beam Scanning) The Best Solution

The presentation of virtual imaging distance and image size depends on adjusting the optical design angle and sensing elements, while the volume is the smallest without focusing design.

There is no need to design images for car windshields in order to match cars, and which can save the cost on customized the windshields.

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Best Precise
Display Graphic
No Need High
To Focus Contrast
Cost Compact
Effective Size
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High contrast (80000:1) clear and accurate imaging recognition: such as user icons, people, traffic lights, scenes, etc.

High contrast resolution and virtual animation makes it easy for drivers to distinguish real scene from virtual reality.

The integration technology is very difficult, so it is necessary to effectively integrate the information software and hardware into the limited space (10ºHFOV 8L; 20º 16L; 30º 24L; 40º 30L; 50º 35L).

Utilizing LBS as light source, providing high resolution virtual imagery, and custom made UI/UX for AR functions

15

FIC AR HUD Core Competences

Cooperate with International Tier 1 manufacturer for 4 years, ready into MP stage in 2022. Providing ODM services to customers, and custom made products, also businesses from chipset to turnkey solutions, contracting with various oversea partners.

■ Strong software design experience, capable to cooperate with Tier1 car manufacturers, providing custom made UX/UI design, virtual imagery design, optical driver design.

• Custom made AR HUD different windshields

■ Profound experiences with OE car manufacturers SOP.

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Tier 1
Cooper
-ation
Techs
Custom
beyond
Service
others
Core
Values
Competi
Experie
-tive
- nces
Strength
Closed
Supply
Chain
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Expect 2023 : FOV: 42°, VHOV: 30°, VID: 20M (Others: FOV: 10°, VID: 10M)

Expect 2025：FOV: 50°, VHOV: 35°, VID: 35M (Others: FOV: 20°, VID: 25M)

■ 3CEMS group, FICG subsidiary, in automotive electronic manufacturing industry for many years.

16

Quality Assurances

Automotive Electronic Design & Manufacturing Regulations and Certification

VERIFICATION

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17

FIC AR HUD FUTURE PLANS

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• ⮚ Optimized AR HUD Products: Like naked-eye 3D functions

• ⮚ Vertical integration with high value supply chains, design self-MEMS, driver chipsets, control chipsets, custom made optical alignment equipment

• ⮚ Horizontal expanding business into oversea markets, providing AR HUD SW & HW technology business to international customers 18

FICG Businesses Keep Growing

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Investing in AR HUD Branding Business, Providing MEMS transceiver as in Automotive Electronics Design Services

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Electronic Manufacturing Service EMS/PCBA, Focus on Automotive, Industrial, Communication, Medical, Marine, Aviation and Consumer Electronic Products

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IPC, Rugged Computer, Targeting Mid-High End Markets and Applications, Custom Made and Self-Branding Products

19

Conclusion

■ AR HUD provides completed 3D visualized information like ADAS and HMI experiences, it’ll be standard.

• FIC with supreme technology and key customers for the future

• car business, providing extreme car techs.

■ Along with AR HUD business expanding globally, shipment will gradually and annually increase, lower manufacturing cost and driving more profits in the future.

20

THANK YOU

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