TECOM — Investor Presentation 2024

Dec 13, 2024

==> picture [154 x 34] intentionally omitted <==

==> picture [218 x 253] intentionally omitted <==

==> picture [216 x 253] intentionally omitted <==

==> picture [221 x 253] intentionally omitted <==

Tecom – Investor Conference 12/20, 2023

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

1

Disclaimer

The information presented and referred herein are based upon the information obtained internally and externally from our company. In light of the forward-looking 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.

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

2

A enda g

◼ Company Overview

◼ Major Business and Products

◼ I nnovative Solutions

• Financial Report

◼ Q & A

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

3

Company Overview

Overview

==> picture [666 x 357] intentionally omitted <==

----- Start of picture text -----

Established : 1980
:
Headquarter Taiwan (SBIP, Hsinchu)
IPO : 1991/11
Chairman : C. K. Liu
GM : Brian Tien
Capital : 3.3B
----- End of picture text -----

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

5

Overview

==> picture [125 x 40] intentionally omitted <==

The No. 1 Motor Manufacturer in Taiwan, established in 1956. Acquired whole Motor Division of Westinghouse, USA in 1995.

• Ranked No.3 Mid-High Voltage Industrial Motors maker in the world.

==> picture [146 x 33] intentionally omitted <==

• A TECO Group Company, world renowned Advanced Communications Equipment Manufacturer, established in 1980.

• Since 2016, TECOM has become the Anchor of TECO Group’s Smart Machinery Product Lines, in the capacity of design, manufacturing, marketing and sales.

• Currently, TECOM leads the Smart Machine market in Taiwan.

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

6

Head uarters q

==> picture [960 x 237] intentionally omitted <==

TECO Headquarters, Taipei

TECOM Headquarters, HsinChu Science Park

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

7

Major Business and Products

Product Solution for Small-Medium Enter rise p

==> picture [843 x 284] intentionally omitted <==

----- Start of picture text -----

Business Communication System
Converged Business
Phone System
IP1000L
IP500M
App
PC-8824
KTS (10 ~300 users) IPKTS (50~200 users ) PC EKT Phone
SD632/SD616A SDX500
Video Conference Speakerphone
Access Control System
----- End of picture text -----

==> picture [870 x 126] intentionally omitted <==

----- Start of picture text -----

Broadband Access
Fusion Access System for SMB 4G/5G LTE Router WiFi Router
----- End of picture text -----

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

9

Product Solution for Consumer

Smart Home System

Cumulative installed nearly 100,000

==> picture [810 x 175] intentionally omitted <==

----- Start of picture text -----

APP for
Android, iOS
e-Gateway
Central Management
IP Video IP Video 7” / 10”
Outdoor Phone Outdoor Phone Indoor Phone Security Phone
----- End of picture text -----

==> picture [229 x 31] intentionally omitted <==

----- Start of picture text -----

Smart Video Doorbell
----- End of picture text -----

==> picture [52 x 85] intentionally omitted <==

==> picture [743 x 141] intentionally omitted <==

----- Start of picture text -----

APP for
Android, iOS
IP Video Doorbell Cloud Video Doorbell
----- End of picture text -----

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

10

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

==> picture [101 x 99] intentionally omitted <==

(Integrated Building Management System)

==> picture [238 x 128] intentionally omitted <==

==> picture [611 x 214] intentionally omitted <==

----- Start of picture text -----

Health and Facility Video Safety and Disaster Energy-saving
Comfort Management Surveillance Prevention management
Environmental Quality Security Protection Intelligent Video Electrical and
Monitoring System Monitoring System Surveillance System Emergency Intercom Mechanical Facilities
Monitoring System
空氣品質監測系統
----- End of picture text -----

Development Platform, widely used in every Construction Project, Increase Revenue per Project; Including building access control, IP CAM, BA controller... etc.,

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

11

Smart Buildin Desi n and Plannin g g g

==> picture [618 x 421] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

12

IIoT – Machine Health Mana in S stem and Solutions g g y

==> picture [908 x 408] intentionally omitted <==

----- Start of picture text -----

Smart value-added
Carbon Neutral Consumption Efficiency Machine Health and Electricity Waste Energy Management System
Management System (CEm) Management (MHEw) (EMS)
Management System (CNm)
Meter Flow meter Meter Flow Meter APP
meter
AG-300Plus APP
Gateway VB-800ML
Wireless
Sensor
APP CNm System CEm System MHEw System EMS System
Maintenance
Portable Vibration
Pro-3200 Pro-9900
Diagnosis Instrument Series
IIoT Gateway
xDAQ- 600 IoT Gateway AG-868 IoT Gateway AG-800M IoT Gateway
AG-300Plus IoT Gateway
Sensors
Vibration Sensor Bluetooth Bluetooth ESG
Wired Vibration Sensors Temp. Sensor Electrical with Display Vibration Sensor Vibration Temp. Vibration Temp.
2015 Meter Sensor Sensor 2025
----- End of picture text -----

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

13

TECOM ESG – Read Platform y

==> picture [72 x 73] intentionally omitted <==

----- Start of picture text -----

Unique to
Market
----- End of picture text -----

==> picture [841 x 175] intentionally omitted <==

----- Start of picture text -----

Carbon Neutral Energy Management Machine Health and Consumption Efficiency
management module System Module Electricity Waste Management Module
(CNm) (EMS) Management Module (CEm)
(MHEW)
ESG-Ready Basic Software Platform
----- End of picture text -----

100% modularized

Enterprises are free to choose what timeframe to deploy the functions they need, building ESG capabilities step by step to achieve the best investment.

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

14

Innovative Solution A Carbon Neutral management and Digital Inventory Tool

There are two ries of ener savin and carbon reduction catego gy g

1. Manage carbon reduction

(use management mechanisms to achieve carbon reduction)

• Analyze real-time and continuous power consumption data, grasp the power consumption hot zones, use management methods to formulate factory power usage methods, personnel power usage habits, and promote various power-saving measures. Warm plate management (CNm) and traditional energy management (EMS) both belong to the managed carbon reduction category.

2. Equipment carbon reduction

(utilize equipment health, efficiency, and waste control to achieve carbon reduction)

• Use machine learning to calculate the health index (Hx) and energy efficiency index (Ex) of high-energyconsuming equipment, and estimate the % of equipment power waste for control.

• Equipment carbon reduction relies on high operating efficiency, health and actual waste reduction to save carbon emissions. Compared with carbon reduction through management methods, it has more tangible effects and has gradually become the mainstream of carbon reduction.

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

16

Tecom Carbon Neutral mana ement g

For management carbon reduction, Tecom launched the greenhouse gas inventory plan (CNm), which is introduced as follows:

1. Digital tools for inventory operations

2. Greenhouse gas inventory platform

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

17

Inventor mana ement O eration y g p

The difficulties in inventory management are

Tecom solution benefits

• Generally, enterprises use EXCEL tables and manual inventory methods to generate inventory lists.

• Data is correct and complete (Data Integrity) 2. Operation costs dropped significantly

• Inventory data often has accuracy and completeness issues

 This kind of inventory leads to a certain degree of lack of trust in third-party verifiers, which leads to re-verification of the data, which is time-consuming and may cause secondary distortion.

1. Provide additional Internet of Things (IoT) functions that can integrate key data on energy conservation and emission reduction to facilitate refined carbon reduction management.

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

18

Introduction to Tecom Di ital Inventor Tool g y

Digital Inventory Tool Description:

• This tool is a high-performanace software that includes :  Activity data recognition software

• ⚫ QR-Code recognition

• ⚫ OCR optical recognition

• ⚫ Third-party open API identification

 Inventory software

• ⚫ Complies with ISO-14064-1 warm plate specifications

• ⚫ Fully automated greenhouse gas inventory

The software can be installed in Intel i5 window-based computers.

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

19

Tecom reenhouse as inventor solution CNm g g y ( )

Carbon Management

CNm provides many advanced and easy-to-use functions to assist enterprises in reducing emissions.

==> picture [790 x 249] intentionally omitted <==

----- Start of picture text -----

1. Carbon Emission
3. Greenhouse Gas
2. Electricity Dashboard
Dashboard
Inventory
4. Multi-regional Carbon
Emissions Monitoring 6. Report
5. Mobile APP
----- End of picture text -----

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

20

Innovative Solution B MHEW Solution (Machine Health and Electricity Waste management)

Since last year (2022), we developed MHEW (Machine Health and Electricity Waste ) management platform. We deployed the MHEW platform on AWS cloud thus you can use it anywhere in the world.

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

21

Intelli ent E ui ment O eration and Maintenance g q p p

Motor Health and Electricity / Carbon Emission Waste Management

• The two major issues of "motor health" and "waste of electricity" in factories are important tasks for intelligent factory operation and maintenance to improve equipment operating efficiency and achieve energy conservation and emission reduction goals.

• The health of the motor is very important and is crucial to ① optimizing the availability of electromechanical equipment ② maximizing productivity ③ minimizing unexpected shutdowns. It is also the responsibility of the public works unit.

• At present, the factory can only measure the electricity consumption of the equipment but cannot measure the amount of electricity wasted and cannot control it.

• Factory equipment intelligent operation and maintenance management objects are divided into three categories :

1 Chiller Machine

2. Air compressor

1. Motors (pumps, fans, conveyor belts)

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

22

MHEW Solution

(Machine Health and Electricity Waste Management)

3 major key components:

1. ESG Sensor (VB-800ML)

2. Mobility Management (Mobile App)

3. Management Platform (＊MHEW)

• ＊MHEW : Machine Health and Electricity Waste

==> picture [117 x 40] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

23

==> picture [846 x 382] intentionally omitted <==

----- Start of picture text -----

Cloud
Deployment Architecture
MHEW Platform
WiFi/LAN Mobile
Network
AG-800)
IIoT Gateway
One gateway can manage Factory Network
VB-800ML
up to 8 VB-800ML
Local deployment
MHEW Platform can be
deployed at local site
……. Smart Phone App
Local
----- End of picture text -----

MHEW Deployment Architecture

Install VB-800ML on motor and gateway AG-800 on-site to communicate via Bluetooth. AG-800 automatically collects VB-800ML measured data at pre-defined intervals and uploads the measured

data to the cloud/local MHEW management platform.

• If staff get data directly from VB-800ML via mobile App, AG-800 gateway is not required. All management functions are provided by cloud/local MHEW management platform.

Financial Report

- Financial Report Consolidated Income Statement

Consolidated Statements of Comprehensive Income-YOY:9 Months

			Unit: NT$M
	2023 Jan. ~Sep.	%	2022 Jan. ~Sep.	%
Net Operating Revenue	580.7	100	781.6	100
Gross Profit	149.1	26	187.7	24
Operating Expenses	(175.9)	(30)	(183.8)	(23)
Operating Income	(26.8)	(4)	3.9	1
Net Income	(18.2)	(3)	29.3	4
Basic EPS(NT$)	(2.27)		0.64

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

26

Financial Re ort-Consolidated Balance Sheets p

		Unit: NT$M	Unit: NT$M
Assets	2023/9/30	%	2022/9/30	%
Cash and Cash Equivalents	253.5	17	201.8	11
Current Assets	789.1	54	1,000.7	53
Total Assets	1,455.5	100	1,892.7	100
Liabilities and Stockholders' Equity	2023/9/30	%	2022/9/30	%
Short-term Credit	400	28	715	38
Current Liabilities	567.9	39	974.7	51
Total Liabilities	998.1	69	1,426	75
Stockholders' Equity	457.4	31	466.7	25
Liabilities and Stockholders’ Equity	1,455.5	100	1,892.7	100

==> picture [36 x 19] intentionally omitted <==

==> picture [19 x 19] intentionally omitted <==

TECOM PROPRIETARY AND CONFIDENTIAL. TECOM © 2023

27

Thank You

www.tecom.com.tw