TXC — Interim / Quarterly Report 2017

Oct 18, 2017

==> picture [275 x 98] intentionally omitted <==

法人說明會 October 2017

==> picture [208 x 132] intentionally omitted <==

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

Disclaimer

• Except for statements in respect of historical matters, the statements in this release are forwardlooking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance, financial condition or results of operations of TXC to be materially different form what may be implied by such forwardlooking statements.

• The financial forecasts and forward-looking statements in the release reflect the current belief of TXC as of the date of this release and TXC undertakes no obligation to update these forecasts and forward-looking statements for events or circumstances that occur subsequent to such date.

• The statements in respect of historical matters may contain unaudited information, which may have certain deficiency or weakness so as not to fairly present financial condition or the results of operations of TXC.

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

1

財務績效 財務報告, 每股盈餘, 每股股利, 資本支出

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

2

每季財務績效 營收穩定成長

單位 : 新台幣百萬元

		2014: 9,526	2014: 9,526					2015: 9,266			2016: 9,637	2016: 9,637
		(年成長 +0.23%)					(年成長 -2.73%)				(年成長 +4.00%)
	14.Q1	14.Q2	14.Q3		14.Q4	15.Q1	15.Q2	15.Q3 15.Q4	16.Q1	16.Q2	16.Q3 16.Q4	17.Q1	17.Q2
Revenue(QoQ)	-9.8%	8.9%	6.8%		-1.4%	-14.0%	4.0%	8.9% 3.2%	-15.4%	8.3%	13.9% 1.7%	-19.3%	-0.9%
Revenue(YoY)	-6.9%	1.2%	3.0%		3.5%	-1.4%	-5.9%	-4.1% 0.5%	-1.2%	2.9%	7.6% 6.0%	1.1%	-7.5%

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

3

每季財務績效 營業毛利

==> picture [810 x 153] intentionally omitted <==

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

單位 : 新台幣百萬元
----- End of picture text -----

Gross Margin(%)

2014: 2,331 2015: 2,235 2016: 2,554 (年成長 +6.24%) (年成長 -4.12%) (年成長 +14.27%)

Gross Profit

	14.Q1	14.Q2	14.Q3	14.Q4	15.Q1	15.Q2	15.Q3	15.Q4	16.Q1	16.Q2	16.Q3	16.Q4	17.Q1	17.Q2
Gross Profit(QoQ)	-7.3%	13.8%	5.2%	4.1%	-15.9%	-8.0%	18.4%	8.6%	-3.3%	-7.3%	20.0%	3.2%	-13.9%	-14.9%
Gross Profit(YoY)	-2.5%	2.3%	9.3%	15.5%	4.8%	-15.3%	-4.6%	-0.5%	14.4%	15.2%	16.8%	11.0%	-1.1%	-9.2%

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

4

每季財務績效 稅後淨利

==> picture [137 x 16] intentionally omitted <==

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

單位 : 新台幣百萬元
----- End of picture text -----

Net Margin%

Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%	Net Profit 2016: 1,016 (年成長 +8.31%) 2015: 938 (年成長 -5.72%) 2014: 995 (年成長 +6.42%) 14.Q1 14.Q2 14.Q3 14.Q4 15.Q1 15.Q2 15.Q3 15.Q4 16.Q1 16.Q2 16.Q3 16.Q4 17.Q1 17.Q2 Net Profit(QoQ) -8.3% 9.0% 10.7% -1.9% -15.9% -19.9% 61.5% -11.0% -11.1% -6.3% 27.3% 14.3% 4.1% -47.5% Net Profit(YoY) 6.2% 10.0% 1.5% 8.7% -0.4% -26.9% 6.7% -3.3% 2.3% 19.7% -5.6% 21.3% 42.0% -20.5%
	14.Q1	14.Q2	14.Q3	14.Q4	15.Q1	15.Q2	15.Q3	15.Q4	16.Q1	16.Q2	16.Q3	16.Q4	17.Q1	17.Q2
Net Profit(QoQ)	-8.3%	9.0%	10.7%	-1.9%	-15.9%	-19.9%	61.5%	-11.0%	-11.1%	-6.3%	27.3%	14.3%	4.1%	-47.5%
Net Profit(YoY)	6.2%	10.0%	1.5%	8.7%	-0.4%	-26.9%	6.7%	-3.3%	2.3%	19.7%	-5.6%	21.3%	42.0%	-20.5%

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

5

重要財務指標 損益表

單位:新台幣仟元	2015	2016	成長率(%)	1H 2016	1H 2017	成長率(%)
營業收入	9,265,656	9,637,101	4.0%	4,392,894	4,246,502	-3.3%
營業毛利	2,235,175	2,554,069	14.3%	1,175,287	1,116,338	-5.0%
營業淨利	908,335	1,114,394	22.7%	502,956	422,830	-15.9%
稅前淨利	1,087,610	1,192,272	9.6%	512,406	568,621	11.0%
稅後淨利	938,203	1,016,164	8.3%	438,085	489,653	11.8%
毛利率(%)	24.1%	26.5%	-	26.8%	26.3%	-
營業利率(%)	9.8%	11.6%	-	11.4%	10.0%	-
淨利率(%)	10.1%	10.5%	-	10.0%	11.5%	-

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

6

重要財務指標 資產負債表

單位:新台幣仟元 Q2 2016 2016 Q2 2017 流動資產 8,385,690 8,818,130 8,043,161 固定資產 4,221,080 4,277,905 4,390,707 總資產 14,559,277 14,841,968 13,662,819 流動負債 2,920,430 3,156,105 3,387,900 長期負債 1,868,236 1,912,681 1,543,659 總負債 4,788,666 5,068,786 4,931,559 股東權益 9,770,611 9,773,182 8,731,260 32.9% 34.2% 36.1% 負債比率(%) 287.1% 279.4% 237.4% 流動比率(%) 速動比率(%) 226.9% 227.5% 183.1% 31.36 31.38 28.04 每股淨值(元)

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

7

每股盈餘與每股股利 穩定股利政策與高配息率

0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4	0 0.5 1 1.5 2 2.5 3 3.5 4
每股盈餘		3.48	3.79	3.02	3.21	3.03	3.28
現金股利		2.2	2.2	2.2	2.5	2.5	2.8
股價(Apr. end)		43.55	46	43.55	39.9	41.1	44.5
股息發放率(%)		63.22	58.05	72.84	77.88	82.51	85.37
殖利率(%)		5.05	4.78	5.05	6.27	6.08	6.29

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

8

資本支出 擴充產能規模

==> picture [479 x 261] intentionally omitted <==

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

•
•
----- End of picture text -----

單位: 新台幣元

金額: 4.0億

• TSX

• • Sensors

金額: 2.5億

• SMD Crystal

• • Facility

金額: 1.5億

• SMD Crystal

• ACAP Crystal

• • Facility

總金額: 8.0億

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

9

Roads to New Growth 趨勢, 機會, 成長

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

10

物聯網連結應用

==> picture [334 x 297] intentionally omitted <==

==> picture [91 x 30] intentionally omitted <==

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

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

They are capable of these… Sense > Connect > Communication > Analytics > Actions > Value They built-in these…

Sensors Sensors Timing Timing (TXC) (TXC)

Technology (Wireless) 4G/5G BT, WiFi, etc

A.I. Lock/ Unlock Lock/ Unlock Real time, Security, etc. Clouds (TSE Solenoid) Software/Apps

(August)

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

11

趨勢 數位化已存在，且趨向智慧化

The path to connect anything and anywhere is on going > Massive Internet of Things (大規模互聯網)

New mission-critical control services being introduced > Mission-Critical Control (關鍵任務服務)

Moving into the era of immersive experiences, and hyper connectivity > Enhanced Mobile Broadband (增強移動寬帶)

(Qualcomm)

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

12

數位與智能 數據不斷成長, 人工智慧時代來臨

Mobile data will Data Storage will Big Data 6.4M Apps 30B grow grow to 1.8 volumes will reach available as of connected devices 18-fold in 5 years Zettabyte (1000[7] ) 247 Exabyte today, by 2020 (Cisco) By 2020, (1000[6] ) by 2020, CAGR 40% (IDC) CAGR 40% CAGR 58% (Statista) (Cisco) (Cisco) Mobility Cloud Big Data Apps Internet of Things

Intelligent Networks

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

13

高傳輸速度, 高傳輸量 加速進入5G世代

==> picture [920 x 395] intentionally omitted <==

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

Multiple networks
Smart grid and monitoring Higher system capacity Multiple RATs
Smart cities (1000x capacity/km [2 ] Tough to have one-for-all
深刻體驗 mHealth Scalability 高密度
Automotive Cost-efficiency
Energy savings, Fitness Reduced latency Automated system management 高覆盖率
High resolution video/ Games/ Entertainment Coverage
cost reductionsPublic safety (<1 ms)HetNets
Green networks – low power
Virtualized networks
Tight sync for OFDM-based radio
Too much overhead for some traffic types 高容量 Cell edge problems 5G
IoT=Everything connected
Latency reductioReliability n Low power 低能耗
Mission critical integration
低成本 Targets Mobility D2D=Direct Communication between devices
Integration of overlaying cells Uplink too thin Higher data rate 4G  5G Massive device connectivity Universal software 攜帶性
超低延迟 More interferences Higher mobility (100x connected devices )
(100x typical data rate) Unsynchronized assignment for some apps
Base station still close to UE
Many applications each with different set of QoE Non-orthogonal signaling for some aps
Higher throughputs for some apps: 100x but still equalization in frequency domain 高可靠性
Lower latency for other apps: <1 ms 高傳輸速率 Massive MIMO = more MIMO
Higher netwrok capacity: 1000x More Carrier Aggregation 高安全性
Massive device connectivity: 100x TXC More interference coordination
Become the leader in 5G by delivering high quality, high performance, or cancelation (simultaneous TX/RX) More internode coordination
Beamforming
highly integrated timing and sensing solutions – zero risk concept
Network coding
(Qualcomm, IS Wireless)
----- End of picture text -----

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

14

4G, 5G 與其他無線傳輸將共存

==> picture [400 x 312] intentionally omitted <==

==> picture [262 x 55] intentionally omitted <==

==> picture [256 x 54] intentionally omitted <==

==> picture [234 x 54] intentionally omitted <==

(IS Wireless)

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

15

機會 萬物互聯網時代來臨

==> picture [896 x 113] intentionally omitted <==

Drive the Timing and Sensing growth vs. Time for market adoption, change, regulation, etc.

==> picture [829 x 92] intentionally omitted <==

(Qualcomm)

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

16

物聯網 頻率元件 (Crystal & Oscillator)

==> picture [571 x 359] intentionally omitted <==

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

(IDC)
----- End of picture text -----

TXC #3 in Global Timing Market

• Total Timing solutions provider

• • Market leader in product miniaturization and integration

Coming in 2017

• Miniature Crystals & Oscillators

• Wide Temperature Range Crystals & Oscillators

• High Frequency & Ultra Stability Oscillators

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

17

物聯網 感測元件

==> picture [571 x 369] intentionally omitted <==

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

(IDC)
----- End of picture text -----

TXC #1 to launch Smallest & High Performance

Ambient Light + Proximity Sensor in 2.5x2.0mm ceramic package

Coming in 2017

• Color + Proximity Sensor

• • PM2.5 Sensor Module

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

18

市場需求 頻率與感測元件預估穩定成長

Global Timing Market

Estimated to reach US$3.8 billion by 2020 CAGR 4.2% (2015~2020)

TXC YoY 4% (NT$)

Forecasted 28 billion units by 2020 CAGR 8.5% (2015~2020)

TXC YoY (12%)

Source: CS&A, TXC

Cons:

MCU and AP integration will reduce the use of timing

Pros:

Global Light Sensor (Ambient, Color, Proximity) Market in Smartphone, NB, Tablets, Wearables

Estimated to reach US$ 2.14 billion by 2022 CAGR 9.3% (2016 and 2022)

TXC great opportunity to grow

Forecasted 6 billion units by 2022 CAGR 18% (2016~2022)

Source: IHS, Yole, TXC

Cons:

Sensors integration will reduce the use of standalone sensor

Everything connected is driving the timing growth

Pros:

Everything sense is driving the sensors growth

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

19

市場排名 TXC #3 in Global, #1 in China

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

TXC started to gain Ambient Light Sensors market share, shipped over 120M units to Tier 1 Smartphones

Top 4 Suppliers for high-end smartphone AMS (TAOS, Heptagon) Broadcom (Avago) ROHM

TXC

TXC great opportunity to grow

(CS&A)

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

20

成長動力 物聯網

NFC, BT, ZigBee, RF4CE Miniature Xtal (1210) Low package profile, low ESR

WiFi Module Low Profile Xtal (1210) High drive, low ESR, wide temp (105C)

Wireless Module

==> picture [240 x 84] intentionally omitted <==

Optical Sensor Module Miniature ALS+PS (2520) Single aperture and slim bezel smartphone Miniature Color+PS (2520) Single aperture and slim bezel smartphone

GNSS Module Miniature TCXO (1612) Low profile, low voltage, wide temp (105C)

5G Modem

Miniature TSX (1612) High frequency, high drive level Miniature VCTCXO (1612) High stability, wide temp (105C)

==> picture [369 x 121] intentionally omitted <==

==> picture [67 x 58] intentionally omitted <==

Particulate Matter Sensor Module Miniature PM2.5 Sensor Module

==> picture [157 x 59] intentionally omitted <==

High accuracy, integrated humidity and temperature sensors for environment monitor and control

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

21

成長動力 5G 基地台, 微型基地台與網通設備

5G & Synchronization RRU (Radio Remote Unit) Close-in Ultra Low Phase Noise VCXO (3225) BBU (Baseband Unit) Ultra Stability OCXO (1409, 9775) Ultra stability Stratum 3 TCXO (5032) High Freq. Stratum 3 TCXO (1409)

Data Center & Synchronization High Freq. up to 2.1GHz & Ultra Low Jitter XO and VCXO (7050)

==> picture [579 x 216] intentionally omitted <==

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

22

成長動力 汽車應用

Infotainment & Telematics

Car audio Glass AR(2016) WiFi/BT combo Seam AJ(1612) GPS TSX AF(2016) GPS/WiFi/BT TCXO AK(2016)

ADAS, V2X, Self-Driving Surround View XO AW(2520) Rear/Front View XO AN(2016) Radar (LR/SR) TCXO AL(2520)

Security Electronic System

BCM(MCU) Glass AX(8045) BCM(MCU) Glass AV(3225) Cluster XO AW(2520)

Safety Electronic System TPMS Seam AJ(1612) BMS XO AU(3225)

==> picture [257 x 88] intentionally omitted <==

==> picture [257 x 97] intentionally omitted <==

==> picture [256 x 93] intentionally omitted <==

==> picture [227 x 93] intentionally omitted <==

ADAS

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

23

新產品 小型化、創新與高度整合

Highly Integrated, Smallest, Ultra Stability Oven Controlled Crystal Oscillator (OCXO) integrated in 9x7mm SMD package (Heater Ceramic Package Patented)

Highly Integrated, Smallest, High Performance Color+Proximity Sensor integrated in 2.5x2.0mm ceramic package (3D Stacking Ceramic Package Patented)

==> picture [400 x 194] intentionally omitted <==

Baseband Radio Access Network, mall Cell, Synchronous Networks (IEEE 1588, SyncE)

==> picture [445 x 149] intentionally omitted <==

Smartphone, Tablet, Wearables, Camera, IoT

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

總結 創造客戶價值、達成成長目標

Key Business Segments

• IoT

• Automotive

• • 5G and Networking

1. Focus on new growth to achieve sales

2. Collaboration to accelerate technology and innovation development to achieve time to market

3. Highly market-driven strategy and trend alignment to maintain market leadership

4. Product mix and bundle strategy to achieve greater profits

5. Investment in facilities, technologies, and employees are crucial to achieve high standard of quality & performance, zero defect risk, and professional

==> picture [59 x 21] intentionally omitted <==

TXC Confidential and Proprietary

25