Telsys Ltd.

Call Transcript • Sep 15, 2020

טלסיס בע"מ )להלן: "החברה"(

15 בספטמבר 2020

לכבוד לכבוד www.tase.co.il www.isa.gov.il

רשות ניירות ערך הבורסה לניירות ערך בתל -אביב בע"מ

הנדון: דו"ח מיידי - שיחה ועידה עם משקיעים

החברה מודיעה כי ביום ד' ה- 30.09.2020 בשעה 11:00 תקיים החברה שיחת ועידה באמצעות אפליקציית ZOOM בעניין הדוחות הכספיים של החברה ליום 30 ביוני 2020 ופעילות חברת הבת "ואריסייט".

מטעם החברה ישתתפו מנכ"ל החברה מר אלישיב )שיבי( דקל, מנכ"ל חברת הבת - ואריסייט, מר אוהד יניב ומזכיר החברה וסמנכ"ל הכספים מר בועז פינקלשטיין.

השיחה תתבצע באמצעות ZOOM, להלן פרטי ההתחברות לשיחה:

Topic: INVESTOR MEETING Time: Sep 30, 2020 11:00 AM Jerusalem

Join Zoom Meeting https://us02web.zoom.us/j/84478936517

Meeting ID: 844 7893 6517 One tap mobile +13017158592,,84478936517# US (Germantown) +13126266799,,84478936517# US (Chicago)

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מצגת אשר תוצג במהלך שיחת הועידה מצורפת לזימון זה.

לא יאוחר מיום 01.10.2020 החברה תפרסם את הקישור לאתר ZOOM שבו ניתן יהיה למצוא הקלטה של שיחת הועידה.

בכבוד רב, טלסיס בע"מ

Company Overview

Leading System-on-Module Design and Manufacturer

About Variscite Key Figures:

Variscite is a leading System-on-Modules designer and manufacturer.

• Established: 2003
• Target Markets: Embedded products
• Customer base: Over 5000 customers WW
• Production: In-house production facilities
• Sales : Over 25% Steady YoY growth
• Local offices in Germany, US, Italy. Headquartered in Israel
• ISO 9001:2015, ISO13485:2016, ISO14001:2015 certified

About Variscite

Variscite current

• positioning A leader in the ARM-based SoM market, with extensive customer base and pipeline
  • 17 years in the SoM market supporting over 5000 WW customers
  • The most diversified ARM based product portfolio, with extensive longevity and compliance policies
  • The only SoM vendor in NXP's Platinum membership and its partner on the entire i.MX8 product line

THE CHALLENGE

VARISCITE PROPRIETARY AND CONFIDENTIAL 4

Market says MORE ▪ More bells and whistles

Market is moving to "Smart devices". Basic UI just doesn't cut it

▪ More connectivity

IoT - Everything is now connected

▪ More features

OEMs continuously introduce new generations and derivative with new features

▪ More support

Complexity of the processors and entire system design requires higher level of hardware and mainly software support

▪ More features

OEMs continuously introduce new generations and derivative with new features, more graphics and integrated intelligence

For example:

The Evolution of a coffee vending machine

• Basic Microprocessor
• Alpha numeric display
• No connectivity
• Mechanical coin-based payment

• High performance application processor
• 1080p graphics and video rendering
• Video stream via Wireless network
• NFC based wireless payment

i.MX8 Quad Max Processor Block Diagram

The problem

Product designs are getting more complex

Core Complex 1	Core Complex 2	Core Complex 3	Core Complex 4
		1 x Cortex-M4F	1 x Cortex-M4F
4 x ARM® Cortex®-A53 core	2 x Cortex-A72 core -	16 KB L1 I and D	16 KB L1 I and D
32 KB L1-I 32 KB L1-D	= - 32 KB L1-I 32 KB L1-D	256 KB SRAM	256 KB SRAM
1 MB L2 with ECC	1 MB L2 with ECC	1 x PC. 1 x UART. 1 x GPIO	1 x IPC. 1 x UART. 1 x GPIO
Multimedia GPU	Memory Connectivity
1 x 4-8 Shader 1 x 4-8 Shader bridge OGL, Vulkan OGL. Vulkan VX Extensions VX Extensions	LPDDR4 (1600 MHz) DDR4 (1200 MHz)	PCle 3.0 with L1 substate - 1-lane
	1 x QSPI 1 x QSPI	PCle 3.0 with L1 substate - 1-lane
VPU		1 x SATA3 and PHY 1-lane
Video: h.265 dec 4K/2K h 264 declenc 1080p	1 x FPGA Interface (QSPI based)	(or PCle with L1 substate 1-lane)
	3 x SD 3.0/eMMC 5 USB3 dual-role and PHY
Display Display Processor with SafeAssure®	USB2 OTG and PHY NAND (SLC/MLC) = BCH62 USB2 Host/HSIC
Display Processor with SafeAssure	Security		2 x 1 Gb Ethernet +AVB
Audio	HAB, SRTC, SJTAG, TrustZone® 3 x CAN FD
32 KB I 1 x HiFi 4 DSP 64 KB TCM 48 KB D	AES256, RSA4096, SHA-256	MLB150
	3DES, ARC4, MD-5 1 x S/PDIF Tx/Rx, 1 x ASRC
Display and Camera I/O	Flashless SHE, ECC	2 x ESAI, 4 x I²S/SAI
1 x MIPI DSI 1 x MIPI DSI	Tamper, Inline Enc Engine	5 x I2C High-Speed with DMA
(4-lanes) (4-lanes)	System Control	8 x FC Low-Speed (no DMA) Attached to Camera. Display 10
1 x LVDS Tx 1 x LVDS Tx	Power Control, Clocks, Reset	Available if Cam/Disp not used
1 x HDMI 2,0a/eDP 1.4/DP 1.3 with HDCP 2.2	BootROMs	4 x SPI 8 x PWM
1 x HDMI 1.4 Rx with HDCP 2.2 PMIC interface (dedicated IPC)		2 x 12-bit ADC (16-Channel)
1 x MIPI CSI 1 x MIPI CSI (4-anes) (4-lanes)	Domain Resource Partitioning	5 x UART

What is a System on Module:

SOM and Carrier structure

The solution

Off-The-Shelf stability, Custom design flexibility

• Fast time to market
• Reduce R&D cost
• Scalable AND Upgradeable
• 100% yield All the time
• Production-ready software support
• Free support for customers: Customer Portal, GitHub, Variwiki, CAD
• Tested and used by hundreds of customers proven high reliability and low risk!

Solutions for all market segments

Variscite customized solutions are engineered and manufactured for all industrial sectors. Fully integrated systems provide the critical components to optimize your product design, development and manufacture. Variscite experts have developed end-to-end solutions that deliver core technology capabilities across a unique range of industries.

Variscite SoM Sales per region

VARISCITE PORTFOLIO

VARISCITE PROPRIETARY AND CONFIDENTIAL 13

Variscite: The Widest ARM SoM Portfolio – Legacy Products

The Widest SoM Portfolio: Core Products and New Releases

Variscite Pin2Pin product families

Two highly scalable product families based on NXP processors

VAR-SOM Pin2Pin Family

Pin2Pin Compatible

Note:

pin2pin compatibility depends on pinmux options

VARISCITE CUSTOMER SUPPORT

Variscite customer support

✓ Quick start guide

✓ 2D/3D Mechanical files

✓ EMC radiation report

✓ Product brief

✓ Datasheet

✓ Schematics

Comprehensive software wiki:

-

Variscite customer support

Variscite customer support

Customer portal: Online ticketing systems, direct link to Variscite R&D experts

VARISCITE PRODUCTION

VARISCITE PROPRIETARY AND CONFIDENTIAL 21

New In-house Production Facilities

State of the art production lines, ISO 13485 certified

• Assembled components traceability
• IPC610 certified team
• Complete boundary scan and functional testing on 100% of the SOMs
• Test log traceability for failure analysis

Variscite: One Stop Shop from Concept to Mass Production

• Production ready HW and SW
• Full span of configurable SoM solutions
• Carrier boards used as Reference & Production
• Full development kit
• Customized design:
  • Custom carrier designs
  • Custom driver/BSP

LONGEVITY & COMPLIANCE

Variscite - Securing your long term supply

• Providing the most generous longevity commitment on its SoM solutions
• De-facto supporting over 5000 customers for more than 17yrs
• Internal production lines with over 50% capacity overhead and in-line redundancy
• External fallback production plants in different countries as a part of a backup disaster plan
• Optional Escrow agreement to provide another layer to secure customer's production continuity

Product Longevity Policy

• Variscite is not EOL its product "for convenience"
• Providing 10-15 years longevity from product launch

Product	Expected Longevity
VAR-SOM-MX8M-NANO	2033
VAR-SOM-MX8M-MINI	2033
VAR-SOM-MX8	2033
SPEAR-MX8	2033
VAR-SOM-MX8X	2033
DART-MX8M-MINI	2033
DART-MX8M	2033
VAR-SOM-6UL	2030
DART-6UL	2030
DART-MX6	2027
VAR-SOM-MX7	2026
VAR-SOM-MX6	2027
VAR-SOM-SOLO	2027
VAR-SOM-DUAL	2027
DART-SD410	2025
VAR-SOM-AM43	2024
VAR-SOM-AM33	2025
DART-4460	2022
VAR-SOM-OM44	2022
VAR-SOM-AM35	2023
VAR-SOM-OM37	2023
VAR-SOM-MX25	2020

Product compliance policy

ISO 13485:2016

Variscite production is performed at fully ISO 13485 compliant facilities, satisfying an international customer and regulatory requirements for a broad range of industries including medical devices and related services. To download Variscite's ISO 13485:2016 certification.

ISO 9001:2015

Variscite is a fully certified ISO 9001:2015 company, as a cornerstone for Variscite's overall Quality Control methodology of developing and producing top quality products. From early design concept and up to production and customer service, Variscite sets the bar for the highest quality products and services in the SOM industry. To download Variscite's ISO 9001:2015 certification.

ISO 14001:2015

Variscite has achieved the internationally recognized ISO 14001:2015 certification awarded for an organization's environmental performance. By meeting the certification's standards, Variscite takes a significant step towards fulfilling its social and environmental responsibility while being up to date with the latest best-practice in environmental management. To download Variscite's ISO 14001:2015 certification.

RoHS I / II

Variscite certifies to the best of its knowledge that Variscite's products are compliant with the threshold requirements of the European Union Restriction on Use of Hazardous Substance Directive 2002/95/EC ("RoHS 1"), Directive 2011/65/EU ("RoHS 2"), Directive (EU) 2015/863 amendment of Directive 2011/65/EU ("RoHS 3") as well as the China Management Methods for Controlling Pollution by Electronic Information Products ("China RoHS").

REACH

Variscite produces "Articles" as defined in REACH regulation and not chemicals which need to be registered according to the REACH regulation. There is no intended release of substances subjected to REACH and therefore registration does not apply to our products. The European Chemicals Agency (ECHA) Candidate List of the Substances of Very High Concern (SVHC) is monitored regularly by Variscite with its approved suppliers. As far as we know, our products do not currently contain any of these SVHCs in a concentration above 0.1% of the weight of the product. To download Variscite's REACH statement.

Conflict Minerals

We have received several inquiries from our customers in respect to the Conflict Minerals issue addresses in Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was passed by the US Congress in July 2010. Variscite does not purchase 3T&G directly from smelters or mines, so we must rely on the source information provided by our suppliers. We will continue to assess the conflict status of our supply chain and, if identified, will eliminate the use of supplier materials that include 3T&G from conflict sources as soon as commercially practicable. To download Variscite's Conflict Mineral letter.

UL 94V-0

UL 94 is the Standard for safety of flammability of plastic materials released by Underwriters Laboratories (UL) of the USA. The standard classifies plastics according to how they burn in various orientations and thicknesses. All Variscite's products are based on PCBs and components classified as UL 94V-0, which is the most flame-resistance class under the UL 94 standard.

THANK YOU!