LOOP — Investor Presentation 2024

Nov 21, 2024

www.looptelecom.com
Loop Telecommunication Int‘l, Inc.
Investors’ Conference

Nov. 21, 2024

Dr. Mawlin Yeh

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Disclaimer Concerning Expectations

Certain of statements given herein, verbal or written, are expectations, which are best estimates of our future performance. Actual results may differ significantly due to many uncertainties.
Examples of such uncertainties include but not limited to (a) local and global regulations, (b) market demands, and (c) competitive landscape.
Such changes in expectation may not result in any notice on our part.
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Agenda
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Loop Telecom Highlights

Established in 1991, IPO (TSEC) in 2002
Headquarters: Hsinchu Science Park, Hsinchu, Taiwan
Products/Solutions & Technologies
Network Managements
WDM Solutions for OTN Layer
SDH/SONET-MPLS Hybrid Transport with Integrated Access Solutions
Universal Access Aggression Multiplexer
L2/CE/L3/MPLS Packet Transport Networking (PTN) Solutions
TDM over Ethernet (TDMoE)
5G for MCC Solutions
MCC OT Firewall Security Solutions
Next Generation Enterprise Secured Networking Solutions

For Mission Critical Communication (MCC) Backbones Markets
For MCC’s 5G Distribution Markets
For MCC OT Security and
Enterprise NG Office Secured Networking Markets
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Loop Telecom Headquarter

Design Center
Factory

EMC Chamber
Network Emulation Beta Testing Facility
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International Standards

Compliances
ISO-9001 company since 1995
RoHS 1 and 2 Compliant
ISO-14001 company since 2004
ANSI/ESD S20.20 2007
TL9000 since 2011
ISO-27001 company since 2022
IEC62443-4-1 company since 2024

Certifications
FCC, UL, NEBS, DOC/CSA, JITC, TUV, BABT, 3C, Taiwan CHT, CE, CB, Pan European, BZT, ETS, Thailand, Indian, AT&T, Korea, Ecuador, Colombia, SEC/NG, ……
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Corporate Technology Milestones

MCC Backbone
OTN
MCC Communication Solutions:
Converter: 1992 ~
Access: 1997 ~
Transport: 2007 ~
OTN: 2022 ~
5G: 2024 ~
Security (Physical/Environment & Information) Solutions:
IIoT (Physical/Environment Security): 2022 ~
GCB: 2023 ~
MCC OT Firewall: 2023 ~
Enterprise Secured Networking Solution: 2023 ~

Transport
Access
RTU

Local
Distributions

RTU
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Agenda
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Loop Telecom
- Consolidated income statement -
113/1/1~113/9/30

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Loop Telecom
- Consolidated balance sheet -
113/9/30

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According to the Loop's consolidated financial report for the first three quarters of 2024, the cumulative in EPS after-tax was $2.79.
Key Highlights of Loop's Financial Report for Q3 2024 and Year-to-Date:
Revenue:
Consolidated revenue for the first three quarters totaled NT$484,152 thousand, representing a year-over-year growth rate of 21%.
Gross Profit and Operating Profit:
Consolidated gross profit for the first three quarters was NT$330,918 thousand, with a gross profit margin of 69%, reflecting a year-over-year growth of 33%.
Consolidated operating profit reached NT$142,744 thousand, showing a year-over-year profit growth of 107%.
Net Profit:
Consolidated profit before tax for the first three quarters was NT$177,926 thousand, a year-over-year increase of 40%.
Consolidated net profit after tax was NT$158,301 thousand, with a net profit margin increasing by 45% year-over-year.
Earnings Per Share (EPS):
EPS for Q1 was NT$0.63; for Q2, NT$0.61; and for Q3, NT$1.55.
Year-to-date EPS after tax totaled NT$2.79.
Historical EPS Performance (Past 5 Years):
The company’s future performance outlook is as follows:
Proactive Transformation: Despite challenging market conditions in the networking and communications industry, Loop Telecom has been actively transforming in recent years. The company has strategically developed diverse solutions to address rapidly evolving market demands.
MCC Networking: Leveraging Mission Critical Communication (MCC) networking solutions and maintaining favorable profit margins, Loop Telecom has established a solid market presence and is steadily progressing toward a harvest phase.
New Product Market: Loop Telecom's new product G7800 has received positive market feedback. Furthermore, the company is preparing to launch its "Next-Generation MCC Backbone Solution." These developments reflect strong market demand and excellent product performance. The company has steadily expanded into the power utility and railway markets, with partial customer deliveries completed and several trials underway. Revenue and profitability are expected to grow across major regions, establishing new milestones in business development.

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Agenda
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Notes:

Loop’s MCC Networking Solutions

MCC Backbone Networks
Network Architecture
Multi-language
Management
(EMS/NMS)

OTN
OTN

WDM1800

Transport

Transport
Access
O9400R
O9500R
G7800

RTU
Access

AM3440E
RTU
IP6704A
G7860A
G7820
AM3440

Local
Distributions

Local
Distributions
W8510
Network Architecture: OTN Units + Transport Units + Access Aggregation Units + RTUs + Local Distribution Units
OTN Layer (Optical Wavelength Switch/Transport): WDM1800
Transport Layer (SDH/SONET, MPLS): O9400R, O9500R, G7800
Access Aggregation Layer (Ethernet, SDH/SONET, TDM, Voices, Applications): AM3440, G7860A, G7820, IP6704A, AM3440E
RTU Layer: Customers’ Equipment
Local Distribution Layer: W8510

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Notes:

G7800: A New Generation MCC Multi-Protocol, Multi-Services, High-Capacity, All-in-One Transport/Access Product

The G7800 is a new generation all-in-one Transport/Access Platform product which supports:
High-Capacity with 100G/10G/1G Optical Links
MPLS-TP, Carrier Ethernet, L2/L3 for Packet Transport
SDH/SONET for Synchronous Optical Transport
PDH/TDM Services
Ethernet for Ethernet Services
MCC’s special services
Security & Secured End-to-End Communication

Phase 1 (Q1/2024): chassis, power, main switching functions & controller, MPLS/packet 100G uplinks released
Phase 2 (Q2/2024): 10 PDH low speed service cards released
Phase 3 (Q4/2024): packet/SDH/SONET high speed service cards released
Phase 4 (Q1/2025): SDH/SONET uplinks to be released
Phase 5 (Q1/2025): eDCS to be released
Phase 6 (Q3/2025): Encryption facility cards to be released
…
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Loop’s Physical/Environment & Information Security Solutions-1

Compliance
Management
Config Backup
Management

Compliance
Check
Built-In
Scheduler

Scheduled
Configuration
Backup

Configuration
Backup
GCB-NCM/Linux

Change
Analysis

Change
Monitoring
Config Change Analysis
Config Change Monitoring

Configuration Auto-Audits on Linux Servers/Firewalls to follow Government’s Guidelines
Physical & Environment Security
Loop-IoT0510 Physical/Environmental Security Monitoring System is designed for a variety of unattended and surveillance required locations such as: Data centers, IT rooms, Network infrastructure, Military camps, airports, government buildings, transportation stations, etc.
ISS2110 GCB includes five major functions: Compliance Check, Scheduled Configuration Backup , Change Monitoring, Change Analysis, and Backup management.
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Loop’s Physical/Environment & Information Security Solutions-2

Train
IPsec

IPsec

IPsec

OCC/BOCC

Wayside

Encrypted IPsec Tunnel

1. Next Generation Three-Layers Office High-Speed Networks
2. Secured Connections between HQ and Branches
3. Centralized Physical/Environment Control using Loop-IoT0510 Technologies
4. Centralized Information Security Management with AI with integrating needed minimum set of Security Solutions such as Firewall, GCB, Anti-Virus, DLP, User’s Behavior AI, Audit/Forensics, …
   OT Firewall for MCC Networks
   Loop-ISS2150 MCC Firewall is aimed to manage and enhance the security of the MCC Networks by utilizing the firewall to isolate security zones between different network areas to better protect and block the inbound information flow from cyber attacks.
   Loop-ISS2180 Next Generation Secured Enterprise Networking Solutions is aimed to provide very high speed office LAN using MCC WAN technologies plus information and physical security technologies.
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Agenda
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Application Markets
MCC Markets:
Utilities
Transportation
Oil & gas
Government:
Public Safety/Homeland Security/911
Military & Defense
Police Networks
Aviation/Airport
Education
Marine
…
Mining
Carrier Markets
Enterprise Markets
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Notes:

Fulfill Markets Needs?with G7800
SDH/SONET Transport/Access all-in-one (FPGA based) for small and medium size MCC backbone networks
MPLS-TP/CE/L3 Transport/Access all-in-one for large size MCC backbone networks
Hybrid Transport/Access all-in-one for those MCC wanting to continue to use SDH/SONET and migrating to MPLS-TP gradually
Merging Transport and Access into one box and one management system for MCC end-customers to build new generation backbone with cost down
MPLS-TP with VRFs for layer 3 services with service slicing provisioning for MCC end-customers
For bandwidth leasing business by MCC customers with logical isolation.
A new backbone solution can provide shortest latency for MCC end-customers’ critical services
A new backbone solution can provide various protections mechanism including zero packet loss for MCC end-customers’ critical services
A new backbone solution can provide highest cyber security mechanism including per-service encryption for MCC end-customers’ critical services
Hybrid big DS0 DACS for ILEC/CLEC/ISP for special services
…
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Notes:

Market Developments
International-SI Partners
Regional-SI Partners
Local-SI Partners
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Notes:

Agenda
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Conclusion
MCC Markets are big and growing.
Each MCC End-customer might have different requirements and solution in mind. Instead of developing several different products/solutions to meet different needs, Loop, with 30+ years experience in MCC markets, has developed the new generation single backbone product G7800 which can fulfill most needs.
G7800 is a Cost Effective Multi-Protocols Multi-Services All-in-One Solutions to provide flexibilities to Customers’ applications and to reduce cost, space & energy requirements.
Together with other Loop’s products, G7800 can lead and come up cost effective total solutions.
Currently, Loop is one of the top three MCC solutions providers in the world. Facing the replacement trends of aged backbone infrastructures in the next five years, Loop will promote the new Generation MCC Backbone Solutions and work closely with partners worldwide to continue to develop the global MCC markets with a high growth momentum.
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www.looptelecom.com

Multi-language Website

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Agenda
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