SIWARD GROUP

Siward Investor Conference

Sep. 15[th] 2017

PATIENCE CONFIDENCE CONCENTRIC

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Topic Speaker Welcome JM Tseng Agenda Company Presentation (Video) 14:30~15:20 Financial Report Lynn Huang knowing Siward … products , Jesse Chang capacity , sales trend Business Summary Tony Tseng Q&A ©2017 Siward Crystal Technology, Inc.

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• Financial Report Financial performance, Dividends policy

Balance Sheet

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Statement of Comprehensive Income

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2,977,585	2,793,696	6.6%	1,585,074	1,431,623	10.7%
604,990	605,491	-0.1%	258,317	311,181	-17.0%
268,249	259,608	3.3%	98,993	137,506	-28.0%
288,954	332,015	-13.0%	90,275	127,579	-29.2%
241,034	255,972	-5.8%	76,435	98,602	-22.5%
20.3%	21.7%		16.3%	21.7%
9.0%	9.3%		6.2%	9.6%
8.1%	9.2%		4.8%	6.9%
8.2%	8.9%		2.5%	3.2%
1.48	1.67		0.46	0.58

Quarterly performance Revenue

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Revenue

				Re	venue				Unit:	NTD Million
										866
	705	655	760	673	709	723	785	761	719
	Q1-15	Q2-15	Q3-15	Q4-15	Q1-16	Q2-16	Q3-16	Q4-16	Q1-17	Q2-17
	Q1-15	Q2-15	Q3-15	Q4-15	Q1-16	Q2-16	Q3-16	Q4-16	Q1-17	Q2-17
Revenue(QoQ)	-4.1%	-7.1%	16.0%	-11.4%	5.3%	2.0%	8.6%	-3.1%	-5.5%	20.4%
Revenue(YoY)	20.9%	3.8%	-2.6%	-8.4%	0.6%	10.4%	3.3%	13.1%	1.4%	19.8%

Quarterly Performance Gross Profit

Gross Profit

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Unit: NTD Million

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178 178
158
141
143 140 144 133 126 132
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Gross Profit Rate
26.4%
24.7%
21.4% 18.5%
15.2%
20.3% 18.9% 18.8% 20.2%
17.6%
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Gross Profit(QoQ) -5.9% -2.1% 2.9% 23.6% -25.3% 33.8% -11.2% -10.8% -10.6% 4.8%
Gross Profit(YoY) 26.5% -2.8% -12.2% 17.1% -7.0% 27.1% 9.7% -20.8% -5.3% -25.8%
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Quarterly Performance Net Profit

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Net Profit Unit: NTD Million
99 100
89
58 59
50 49
43
18
10
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Net Profit Rate
13.0%
13.1%
12.3%
7.1%
7.3%
8.9% 6.8%
5.5%
1.4% 2.5%
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Net Profit(QoQ) -49.3% 24.9% 47.1% -44.1% -80.6% 772.8% -55.5% 139.9% -80.9% 172.1%
Net Profit(YoY) 35.1% -26.6% 33.8% -52.4% -80.0% 53.4% -56.6% 104.1% 80.0% -33.7%
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Dividend Policy

EPS and DPS

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Earnings Per Share Cash Dividends Per Share

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1.83
1.67
1.48
1.2
1.2
0.88
1
0.6
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	2013	2014	2015	2016
Unit : NTD	2013	2014	2015	2016
Earnings Per Share	0.88	1.83	1.67	1.48
Cash Dividends Per Share	0.6	1	1.2	1.2
Avg. Stock Price	12.07	19.64	19.85	18.8
Payout ratio(%)	68.18	54.64	71.86	81.08
Yields(%)	4.97	5.09	6.05	6.38

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• Investor Conference

sales trend knowing Siward …products , capacity ,

Who We Are

Innovative Timing solutions for things that connect the world

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Yamagata
Japan
China
Tokyo
Hu Bei USA
USA
Shenzhen Taiwan New Jersey
California
Malaysia
Penang
CY2016 revenues $97.9 million
Listed: TWSE Headquarter Taiwan,
(3 RD Center + 2 Sales Office + 3 Manufacture)
1000 [+] employees worldwide
RD Center
40 [+] R&D engineers
Manufacture
4 manufacturing sites
7 sales & marketing offices Sales Office
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©2017 Siward Crystal Technology, Inc.
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Our Products

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Synthetic Quartz
Crystal 石英晶振 Oscillator 振盪器
Voltage-controlled
Metal Can Glass Weld Crystal Osc
oscillator (VCXO)
Ceramic seam Tuning Fork TCXO (VC)TCXO
Tuning Fork wafer
3” MEMS Wafer Processing
©2017 Siward Crystal Technology, Inc.
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Manufacturing sites

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kHz crystal
•
15KK/M Oscillator
•
10KK/M
MHz crystal 130M [+] monthly
•
100M [+] /M
(VC)TCXO
•
3KK/M (2017 Q3 )
TSX
•
10KK/M( 2017 Q3)
©2017 Siward Crystal Technology, Inc.
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Manufacturing sites

Manufacturing:

 Crystal

 RD Center

Tuning Fork Xtal

 Manufacture

OSC
Sales Office

Manufacturing:

 MEMS wafer

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3” Q-MEMS Wafer Processing

(VC)TCXO

Manufacturing sites

Manufacturing:

 Synthetic Quartz Bar

Manufacturing:

 Crystal  Tuning Fork Xtal

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©2017 Siward Crystal Technology, Inc.
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World Ranking

2015 Rank	2016 Rank	Company Name	Revenue(M)	Revenue(M)	Revenue(M)	Market Share(%)	Market Share(%)
			2015	2016	Percent Change	2015	2016
1 1 Seiko Epson 2 2 NDK 3 3 TXC 4 4 KCD 5 5 KDS 6 6 Vectron			$427 $409 -4.2% $338 $357 5.4% $302 $310 2.8% $301 $287 -4.5% $201 $212 5.5% $163 $160 -2.0%			13.8% 12.9% 10.9% 11.3% 9.7% 9.8% 9.7% 9.1% 6.5% 6.7% 5.3% 5.1%
7	7	SIWARD	$95	$103	8.8%	3.1%	3.3%
8 8 Hosonic N/A 9 Mega Chips 10 10 Murata Others Total Revenue			$91 $94 2.8% $35 $73 108.6% $69 $72 5.0% $1,080 $1,088 0.7% $3,102 $3,165 2.0%			2.9% 3.0% 1.1% 2.3% 2.2% 2.3% 34.8% 34.2%

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，。 World ranking # 7 Taiwan ranking # 2

(CS&A)

Revenue by Market Segments

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Revenue by market
Mobile segments_Y2016($103M)
Communication
15% Networking
32%
IoT/Wearable/
Modules
16%
PC/Consumers Others
18%
19%
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Revenue by market segments_Y2017
Mobile H1($52M)
Communication
13%
IoT/Wearable/
Networking
Modules
36%
17%
PC/Consumers
18%
Others
16%
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、、、、
Focus on networking industry(mobile broad-band cable wireless router gateway 。
STB..etc) continue to growth
。
IoT/wearable device/modules application drives for miniature products demands

Revenue by Product Types

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Revenue by Product Types_Y2016($103M) Revenue by Product Types_Y2017
H1($52M)
(VC)TCXO Others Others
6% 2% (VC)TCXO 1%
Turning Fork 5%
X'tal Turning Fork
X'tal
14%
X'tal
14%
57%
X'tal
OSC
OSC 57%
21%
23%
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，。
Crystal are the major products maintained at 57% of the revenue
。
Expect growth of TCXO products in Q4 2017 and 2018
、。
High stability TCXO HF XO development and mass production in Q4 2017

Trends & Opportunity

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A. Trends to miniature
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B. Higher OTR, higher stability requirement

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C. High stability , low jitter ,
low phase noise
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、、。
The IoT wearable and WiFi LTE modules industry requires miniature components
Crystal & XO products are required to operate in higher temperature range to adopt in new customer designs.
、
Products for GNSS system small cells that requires high stability low jitter phase noise TCXO & High stability HF XO had been developed for mass production in Q4 2017。

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• Business Summary Investment & Alliance

Investment & Alliance Strategy

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The combination of Rakon’s technology and Siward’s manufacturing 。 will enable the capability of producing middle & high end products

USD10 Million Investment in Rakon a Potential Game-changer 20 December 2016

Taiwanese company Siward Crystal Technology Company Limited (“Siward”) is to invest USD10 million in NZX-listed Rakon Limited (“Rakon”), a transaction Rakon Managing Director Brent Robinson says could be a game-changer for both companies

……

“Siward’s manufacturing scale and expertise is a perfect complement to Rakon’s leading-edge technology,” Mr Robinson said.

“This partnership will give both companies a broader range of products and alternative channels into new and existing markets.”

……

Mr Robinson said Siward’s highly efficient manufacturing operations coupled with Rakon’s leading technology will enable each company to offer its customers new levels of value.

Investment & Alliance Strategy

Rakon products & applications

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SPACE & DEFENCE TELECOMMUNICATIONS GLOBAL POSITIONING
DPCSS USO OCSO OCXO TCXO VCXO XO SAW CRYSTAL
FILTERS RESONATORS
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Investment & Alliance Strategy

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The alliance of SIWARD and the China largest Tunning Fork manufacturer enhanced the competitiveness of Siward to provide cost sensitive 。 products to the market

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• Q&A Investor Conference

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AI assistant

SIWARD Interim / Quarterly Report 2017

52117_rns_2017-09-15_dca2f752-9ce7-49e3-b95b-16a99c163ff7.pdf

SIWARD GROUP

Siward Investor Conference

• Financial Report Financial performance, Dividends policy

Balance Sheet

Statement of Comprehensive Income

Quarterly performance Revenue

Revenue

Quarterly Performance Gross Profit

Gross Profit

Unit: NTD Million

Quarterly Performance Net Profit

Dividend Policy

EPS and DPS

• Investor Conference

Who We Are

Our Products

Manufacturing sites

Manufacturing sites

Manufacturing sites

 Synthetic Quartz Bar

World Ranking

Revenue by Market Segments

Revenue by Product Types

Trends & Opportunity

• Business Summary Investment & Alliance

Investment & Alliance Strategy

USD10 Million Investment in Rakon a Potential Game-changer 20 December 2016

……

……

Investment & Alliance Strategy

Rakon products & applications

Investment & Alliance Strategy

• Q&A Investor Conference

AI assistant

SIWARD — Interim / Quarterly Report 2017

52117_rns_2017-09-15_dca2f752-9ce7-49e3-b95b-16a99c163ff7.pdf

SIWARD GROUP

Siward Investor Conference

• Financial Report Financial performance, Dividends policy

Balance Sheet

Statement of Comprehensive Income

Quarterly performance Revenue

Revenue

Quarterly Performance Gross Profit

Gross Profit

Unit: NTD Million

Quarterly Performance Net Profit

Dividend Policy

EPS and DPS

• Investor Conference

Who We Are

Our Products

Manufacturing sites

Manufacturing sites

Manufacturing sites

 Synthetic Quartz Bar

World Ranking

Revenue by Market Segments

Revenue by Product Types

Trends & Opportunity

• Business Summary Investment & Alliance

Investment & Alliance Strategy

USD10 Million Investment in Rakon a Potential Game-changer 20 December 2016

……

……

Investment & Alliance Strategy

Rakon products & applications

Investment & Alliance Strategy

• Q&A Investor Conference

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SIWARD Interim / Quarterly Report 2017