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TECOM Investor Presentation 2021

Nov 3, 2021

52005_rns_2021-11-03_a9f46016-025f-47b9-94c8-9af10eadfd41.pdf

Investor Presentation

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Tecom – Investor Conference

11/3, 2021

Disclaimer

The information presented and referred herein are based upon the information obtained internally and externally from our company. In light of the forwardlooking operational results, financial condition and business results, they might be different from those information expressly or impliedly presented herein due to various factors , including but not limited to market risks , supply chains , market demand and our upcoming high-quality products. We undertake no obligation to publicly update or revise any statements regarding those information presented and referred herein in the event of any further changes or updates to the information presented herein.

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TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021

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Agenda

Company Overview

Major Business and Products

 Key Products & Applications

Financial Report

Q & A

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021

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Company Overview

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021

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Overview

Established : 1980 : Headquarter Taiwan (SBIP, Hsinchu) IPO : 1991/11 Chairman : C. K. Liu GM : K.R. Chen Capital : 9.5B

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TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 5

Overview

TECOM Co., Ltd, a TECO Group High-tech company was established in 1981, at the famous Hsinchu Science Park.

  • Teco Established in 1956; the No. 1 Motor Manufacturer in Taiwan; acquired whole Motor Division of Westinghouse, USA in 1995.

  • Ranked No. 4 Mid-High Voltage Industrial Motors maker in the world.

  • Motors, Inverters, Switch-Gears, Circuit-Breakers, marketing in 62 countries worldwide.

  • One of the Role-Model, Hightech Start-up in the Science Park

  • ODM supp li ers to most wor ld l ea di ng ven d or

  • Taiwan No.1 Business Communications Maker

  • e-Home System, Taiwan No.1

  • The innovative applications of the IoT Gateway lead Taiwan.

  • Industrial Internet of Things (IIoT), a full range of Smart IoT Gateways, Wired/Wireless Smart Vibration Sensor components, Smart Monitoring equipment and Cloud Health Management Platform, Automatic Inspection Monitor System, leading the industry with a variety of innovative applications.

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TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021

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Major Products & Applications

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021

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TECOM Communication System Platform: Eco-System

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 Communication
AI Terminal
Smart Home
Appliances Equipment
 Conference
Smart
 Monitor Integrate Business Home Voice Enterprise and Home
Communications
Identification
UC&C Appliances Telephone Switchboard
Call Center
Business System
 Data Community
Communication
Communication
Data Voice
 Control
Transmission Access
Industry
Smart Equipment Control Smart Community
 Mobile Health Management IoT
System Intercom Building Access
Video Control Intercom
 Network Integrated Digital System
Conference
Monitoring
Video
Room
 Visual Monitor
Industrial/Commercial
Mobile Router Video Conferencing System
Audio and Video Terminal
 Cloud
Image Monitoring System
Camera Terminal
With Hard Drive
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TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 8

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Product Solution for Small-Medium Enter rise p

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Business Communication System
Converged Business Phone System
IPKTS (50~200 users )
KTS (10 ~300 users)
IP100A/IP320A SDX500/IP1000L
SD632/SD616A
Video Conference Speakerphone
Access Control System
Broadband Access
Fusion Access System for SMB 4G/5G LTE Router
TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 9
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Market A lications pp

  • Video Conferencing System: In the post-epidemic era, considering information security, we provide a series of video conference products for Small and Medium-sized enterprises.

  • Cloud Customer Service System: Integrated IP switches, combined with UC&C (Integrated Communication and Collaborative Cooperation) applications, enable enterprises to provide high-quality services with cost-effective communication systems and strengthen customer.

  • Intercom System: With Cloud applications and the popularity of Smart Phones, provide better access of security control and management for community buildings and residents, using mobile phones for video intercom and monitoring at any time.

  • Mobile Wireless Router: Government actively promotes the management of the Green Energy Industry and the safety of passenger and freight vehicles. Monitoring data and images such as Electric Vehicle battery switch stations, Electric Vehicle charging stations, street intersection monitoring and safe driving information are sent back to the Control Center in real time.

  • Large IP Switch: Global IP Network Communications are widespread, providing a complete series of IP network switches. When companies expand their operations, they can integrate and upgrade the existing IP switch capacity to meet the growth needs of companies.

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Di ital Conference Room Pro ect Strate g j gy

Goal - There are currently 1.5 million Small and Medium-sized companies in Taiwan, most Meeting Rooms are still using traditional 720P projectors, and the company's digital transformation is just beginning. TECO's large-size 4K Liquid Crystal Display, with a digital Conference Room solution can assist Small and Mediumsized companies in digital transformation.

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Clean Air
Solution Multi-Person
Wireless
Project Solution
LIVE Broadcast
Solution
Long-Distance
Video Conference
Solution
Wall Television Panoramic Intelligent
Multimedia Image Tracking
TECO 4K Display
Solution Solution
Smart Interactive Whiteboard
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TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 11

Product Solution for Consumer

Smart Home System

Cumulative installed nearly 100,000

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IP Video IP Video 7” / 10” Outdoor Phone Outdoor Phone Indoor Phone

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APP for e-Gateway Android , iOS Central Mana g ement Securit y Phone

Smart Video Doorbell

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IP Video Doorbell
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Cloud Video Doorbell
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APP for Android, iOS

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TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 12

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Tecom Inte rated Buildin Mana ement S stem g g g y

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好宅大平台
(Integrated Building Management System)
Health and Facility Video Safety and Disaster Energy-saving
Comfort Management Surveillance Prevention management
Environmental Quality Security Protection Intelligent Video Electrical and
M on it or ng ys i S t em M on it or ng ys i S t em Surveillance System Emergency Intercom Mechanical Facilities
Monitoring System
空氣品質監測系統
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Development Platform, widely used in every Construction Project, Increase Revenue per Project; Including building access control, IP CAM, BA controller... etc.,

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Smart Buildin Desi n and Plannin g g g

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Comprehensive
Healthy
Installation
Comfortable
Facility
Management Communication
Disaster 好宅大平台 System
Prevention Integration
Energy Intimate
Saving Convenient The progress of the Smart
Construction Project
Confirmation of Contract
(Consultant Agreement): 6 cases
Follow-up negotiation: 22 cases
TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 14
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IIoT -Smart Machine Products

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Smart
value-added
Chiller expert platform Metal forming expert platform
Smar Motor platform
(energy-saving) (energy saving + Life Extension)
Unmanned
Inspection Solution VB-168
Bluetooth AG-868
for Electric Motors
Vibration Gauges IoT Gateway Smartphone APP Smart Display (Android TV)
Maintenance
Portable Vibration
Pro-3200 Pro-3600 Pro-9000P
Diagnosis Instrument
Data Collection
Smart
Smart Chiller
MHm-API water pump
system
system
IoT Gateway
AG-868 IoT Gateway
AG-300 Smart Gateway AG-300Plus Smart Gateway xDAQ- 600 IoT Gateway TP-7 IoT Gateway
Sensors
Bluetooth
Vibration Gauges Bluetooth
Vibration Temperature
Electrical Meter Temp. Sensor Smart Vibration Gauges with Display Vibration Gauges Gauges
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New Key rP oduct

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「 」 Fully Automatic Inspection Solution

Many conventional types of motors, fully automatic 「Basic Health Data」: Vibration Value, Temperature Va ue anl d Hea tl h Index. Replace traditional manual inspection

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Vibration Temperature Warning Health Index Prevention
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This Solution is specially designed for the inspection of the Motors “Vibration" and “Temperature" in the Factory. Vibration Temperature Sensor can be installed on various type of Motor, the information regarding the Motor can be obtained:

Vibration Value, Temperature Value, Warning Information, Health Index, Prevention Time Frame. The acquired data can be presented in “Real Time” to Smart Display Platform and mobile phones, which is simple and easy to use.

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, Three Views Multiple Choices

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MHm-P/KB Health
Management Platform
Central Control
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Mobile Phone Monitor Automatic Inspection Mobile View Display Platform TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 19 On-Site Inspection

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Applications

1. Factory : Taiwan’s First-line Panel Factory, with factories in Taiwan and China Application : Automatic inspection of factory (water) equipment

  • Pure water pump motor (first batch of 147 units)

  • Originally manual inspection, upgraded to Automatic Inspection

  • System replaces manual labor, accurate test data

  • Immediate system reports and maintenance is processed quickly

  • Health Index arranges scheduled maintenance and overhaul schedule

2. Factory : Taiwan’s Top Delivery Company, Automatic Warehousing Application : Automatic Inspection of conveyor belt motor sorting system

  • Originally manual inspection, upgraded to Automatic Inspection

  • Usage of Health Index H5 (H4) as the limit. When Health Index reaches the limit, it is time to replace motor.

  • Original maintenance system, motors are replace regularly. According to the Health Index, the Automatic Inspection can pick out the motor that needs to be replaced, reducing excessive maintenance costs.

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Examples of Factory and Production Equipment : ~~Production Line Conveyor Belt~~

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Water Chiller

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Water Pum p

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Wind Blower

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Air Compressor

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Textile Mill

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VB-168 is installed on the bearing Install VB-168 on the motor, then cover the side
of the Textile Machine motor plate of the Textile Machine
AG-868
AG-868 installed on the Production Line
processing VB-168 data
A TV display is installed and
the Health Status of the
production line motor is
clear at a glance!
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Pa er Mill p

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Vacuum Pump
Smart Detection
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Conclusion

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Self-Service Inspection Factory
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Traditional Manual Inspection Terminator

  • Use modern technology and equipment to replace the traditional work mode.

  • Use intelligence to realize unattended and unmanned inspection

  • Manned to unattended

  • Sensors provide real-time data return, and central control management

replaces on-site inspection

  • Blue collar to white collar

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Financial Report

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Financial Re ort- p

Consolidated Statements of Comprehensive Income-YOY:6 Months

Unit: NT$M 2021 2020 % % Jan.~Jun. Jan.~Jun. Net Operating Revenue 520.3 100.0 550.0 100.0 Gross Profit 117.6 22.6 75.0 13.6 Operating Expenses (111.9) (21.5) (122.2) (22.2) Operating Income(Loss) 5.8 1.1 (47.2) (8.6) Net Income(Loss) 6.1 1.2 (26.8) (4.9) - Basic EPS(NT$) (0.60)

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021 30

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Financial Report-Consolidated Balance Sheets
Unit: NT$M
Assets
2021/6/30
%
2020/6/30
%
Cash and Cash Equivalents
84.8
4.4
127.6
6.1
Current Assets
960.2
49.8
1,024.0
49.1
Total Assets
1,929.0
100.0
2,087.3
100.0



'




Financial Report-Consolidated Balance Sheets
Unit: NT$M
Assets
2021/6/30
%
2020/6/30
%
Cash and Cash Equivalents
84.8
4.4
127.6
6.1
Current Assets
960.2
49.8
1,024.0
49.1
Total Assets
1,929.0
100.0
2,087.3
100.0



'




Financial Report-Consolidated Balance Sheets
Unit: NT$M
Assets
2021/6/30
%
2020/6/30
%
Cash and Cash Equivalents
84.8
4.4
127.6
6.1
Current Assets
960.2
49.8
1,024.0
49.1
Total Assets
1,929.0
100.0
2,087.3
100.0



'




Financial Report-Consolidated Balance Sheets
Unit: NT$M
Assets
2021/6/30
%
2020/6/30
%
Cash and Cash Equivalents
84.8
4.4
127.6
6.1
Current Assets
960.2
49.8
1,024.0
49.1
Total Assets
1,929.0
100.0
2,087.3
100.0



'




Financial Report-Consolidated Balance Sheets
Unit: NT$M
Assets
2021/6/30
%
2020/6/30
%
Cash and Cash Equivalents
84.8
4.4
127.6
6.1
Current Assets
960.2
49.8
1,024.0
49.1
Total Assets
1,929.0
100.0
2,087.3
100.0



'




Assets
Cash and Cash Equivalents
Current Assets
Total Assets 1,929.0
100.0


'
Li biliti
d St
kh ld
E
it
a
es an
oc
o ers
qu y
Short-term Credit
Current Liabilities
Total Liabilities
Stockholders' Equity
2021/6/30
%
632.4
32.8
1,191.8
61.8
1,466.8
76.0
462.2
24.0
2020/6/30
%
673.9
32.3
966.0
46.3
1,548.9
74.2
538.4
25.8
2,087.3
100.0
Liabilities and Stockholders’ Equity 1,929.0
100.0

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Q and A

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Thank You

www.tecom.com.tw

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2021

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