TECOM — Investor Presentation 2022

Nov 2, 2022

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Tecom – Investor Conference

Q4, 2022

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 © 2022

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Agenda

 Company Overview

 Major Business and Products

 Key Products & Applications

 Financial Report

 Q & A

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Company Overview

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Overview

Established : 1980 : Headquarter Taiwan (SBIP, Hsinchu) IPO : 1991/11 Chairman : C. K. Liu GM : K.R. Chen Capital : 9B

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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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Major Products & Applications

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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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Product Solution for Small-Medium Enter rise p

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Business Communication System
Converged Business
Phone System
IP1000L
IPKTS (50~200 users )
KTS (10 ~300 users)
SDX500
SD632/SD616A
Video Conference Speakerphone
Access Control System
Broadband Access
Fusion Access System for SMB 4G/5G LTE Router WiFi Router
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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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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 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
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IIoT -Smart Machine Products

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Smart
value-added Unmanned Inspection Solution Energy Efficiency Next-Generation Machine Learning
Management System (CEm)
Meter
VB-800ML
VB-168 AG-300Plus CEm System Wireless Sensor
Wireless Sensor AG-868 APP Smart Display Gateway
IoT Gateway (Android TV) Flowmeter Smartphone APP
Maintenance
Portable Vibration
Pro-3200 Pro-3600 Pro-9900
Diagnosis Instrument
Data Collection
MHm-P CEm
Carbon inventory
Cloud Management Management
System
System System
IoT Gateway
AG-868 AG-800
IoT Gateway IoT Gateway
AG-300 Smart Gateway AG-300Plus Smart Gateway xDAQ- 600 IoT Gateway
Sensors
Bluetooth
Vibration Gauges Bluetooth
Vibration Temperature
Electrical Meter Temp. Sensor Smart Vibration Gauges with Display Vibration Gauges Gauges
2023
2015
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Cognitive
ctive
Predi
Connected
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New Key rP oduct

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VB-800ML To re ort motor’s Health conditions p and electricity waste

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What is VB-800ML ?

 Wireless (BT) Vibration + Temp. Sensor

 With Built-in Micro-controller, able to do edge computation: Machine Learning and FFT

 Support Direct Connectivity with Mobile APP (No Gateway Required)  Battery-Operated (3-Yr)

No need Power Wiring , No need Network wiring , No need any Network Environment

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 DIY 47-KG Pulling Resistance, 3M Industrial Grade Tape

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What are VB-800ML’s Unique Features ?

1. Machine Learning and Health Indices : VB-800ML algorithm calculates the vibration median and generates Hx.

2. Estimation of Electricity Waste due to Motor degradations : Look for Top-2 Causes for electricity waste

3. ① Misalignment and ② Imbalance

4. Predictive Maintenance Schedule

What are the Benefits to large motor users ? The VB-800ML provides Electricity Waste estimation of operating motors, it would be better felt and appreciated by the users. It is a compelling feature.

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- VB 800ML, what is it used for ?

To report motor’s Health conditions and electricity waste. These are Key Information for the users to make timely and accurate decisions for maintenance and even replacement.

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APP

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Health Index

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Electricity Waste Estimation

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The to 2 causes wastin extra ener p g gy

1) Misalignment between motor axis and Load Axis 2) Imbalance

The research results of American experts have shown that the worst waste of misalignment can be as much as 8.5%, while 5.2% from imbalance.

The VB-800ML App defines the 7 levels of degradation by calculating t h e va ues o l f FFTs at 1 x Ba ance ( l ) an d 2 x a ignment an ( l ) d vi b ration values (RMS). For each level of degradation, a corresponding waste percentage is recorded, processed and converted into actual money amount.

VB-800ML is one and only in the market The money waste would be more felt and appreciated by the user.

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Financial Report

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Financial Re ort-Consolidated Income Statement p

Consolidated Statements of Comprehensive Income-YOY:6 Months

Unit: NT$M

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2022 2021
% %
Jan. ~ Jun. Jan. ~ Jun.
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	2022 Jan. ~ Jun.	%	2021 Jan. ~ Jun.	%
Net Operating Revenue	535.2	100	520.3	100
Gross Profit	123.2	23	117.6	23
Operating Expenses	(121.4)	(23)	(111.9)	(22)
Operating Income	1.7	-	5.8	1
Net Income	18.5	3	6.1	1
Basic EPS(NT$)	0.16		-

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	Financial Report-Consolidated Balance Sheets Unit: NT$M Assets 2022/6/30 % 2021/6/30 % Cash and Cash Equivalents 141.5 7 84.8 4 Current Assets 1,038.3 53 960.2 50 Total Assets 1,948.2 100 1,929.0 100 '	Financial Report-Consolidated Balance Sheets Unit: NT$M Assets 2022/6/30 % 2021/6/30 % Cash and Cash Equivalents 141.5 7 84.8 4 Current Assets 1,038.3 53 960.2 50 Total Assets 1,948.2 100 1,929.0 100 '	Financial Report-Consolidated Balance Sheets Unit: NT$M Assets 2022/6/30 % 2021/6/30 % Cash and Cash Equivalents 141.5 7 84.8 4 Current Assets 1,038.3 53 960.2 50 Total Assets 1,948.2 100 1,929.0 100 '
	Total Assets	1,948.2 100
	'
	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	2022/6/30 % 485.2 25 1,055.7 54 1,510.8 78 437.4 22	2021/6/30 % 632.4 33 1,191.8 62 1,466.8 76 462.2 24 1,929.0 100
	Liabilities and Stockholders’ Equity	1,948.2 100

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Q and A

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Thank You

www.tecom.com.tw

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