Disclaimer. Any case, this statement can not be used as evidence legally responsible for the investment decisions of investors.

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2 Disclaimer is Prediction information included in this statement that have not been verified by individual verification procedures. It is,not past and related to as future event, means details the company s expected future business and financial performance, and contain a word such as Expected, Prospects, Plan and (E) expressively. Above "Prediction information" is influenced by the changing environment of management for future operations, and contain essentially uncertainties. Actual future performance related to these uncertainties can occur a significant differences from those expressed or implied by such statements. In addition, the future prospects are created based on the Presentation conducted Considering the current market conditions and the Company's management direction. That can be changed according to changes in the market environment and strategy modification. Please understand it may be subject to change without notice note. Any case, this statement can not be used as evidence legally responsible for the investment decisions of investors. 2

3 INDEX Ⅰ. Company Overview Ⅱ. Optical Filter Division Ⅲ. Image Solution Division Ⅳ. 2Q14 Earnings Report Ⅴ. Appendix

4 Ⅰ. Company Overview 1. OPTRONTEC is 2. Major Products & Application Trend 3. GROWTH STORY 4. GOALS & VISION

5 1. OPTRONTEC is Ⅰ. Company Overview Glass Based Optical/Optoelectronic product Maker TSOP(Tianjin) #1 in Global Blue Filter Market World Largest Blue Filter Capacity Pangyo R&D Lab Optical Lens & Module Car Black Box Global OPTRONTEC Network - Korea : R&D and Core Tech - China : Manufacture & Marketing Daejeon 1 st Factory Image Solution R&D Daejeon 2 nd Factory DOPT (Dongguwan) IR Cut-off Filter / Blue Filter / Special Optical Filter Changwon Head Office Optical Pick-up Filter / IR Assembly Optical Lens & Module 5

6 2. Major Products & Application Trend Ⅰ. Company Overview IMAGE SENSOR FILTER ㅁ Camera Phone (Low Pixel) (Reflective) IR Cut-off Filter Smart Phone, Tablet (High Pixel) (Absorptive) Blue Filter IMAGE SOLUTION Security Camera Digital Camera Car Black Box Analog Device Digital Device OEM ODM OPTICAL PICK-UP FILTER #1 Global Market Share, Declining Trend of Global Optical Pick-up Device ~

7 3. Growth Story Ⅰ. Company Overview (Sales, KRW BN) (E) 2015(E) Establishment~ ~ ~ Growth Factors Optical Lens & Lens Modules Image Sensor Filter Image Sensor Filter & Automotive Camera Applications Target Business Digital Camera CCTV, Video Cam Smartphone, Tablet, etc. Various smart IT devices / IP camera, DVR for Car, etc. 7

8 4. GOALS & VISION Ⅰ. Company Overview Technology Management Continuous R&D Investment ; 4% of annual Sales Revenue Domestic/Overseas Patents ; Total 38 Patents (Korea 32, Overseas 6) Quality Management World best credibility guaranteed by own-developed Automatic Inspection Machine Quality Certification ; ISO 9001, Single PPM, etc. Eco-friendly Management Green Biz movement ; Environment Report, overall environment data management, Environment management system Environment Certificate ; ISO 14001:2004, Green Biz, Carbon Report, etc. The 1 st of Global IR Cut-off Filter Market Share Blue filter Capacity / Global BF Market Share Domestic Automotive HD Lens Market Share Certification IR Cut-off Filter, chosen as World-Class Korean Product for 9 consecutive years by MOTIE(Ministry of Trade, Industry & Energy) of Korea Designated as Korean Hidden Champion Initiative by Korea EXIM Bank 8

9 Ⅱ. Optical Filter Division 1. Mobile Phone Market 2. Blue Filter Market 3. Products & Core Competitiveness 4. Major Customers

10 1. Mobile Phone Market Ⅱ. Optical Filter Division Mobile Phone Market Trend (MN Units) Growth Factors Global MP Global SP China SP Demand 1,776 1,807 1,746 1,597 Change of Killer Application(Market) in Mobile Phone Mobile Phone(2000~) Camera Phone(2004~) Smart Phone(2010~ ) Chinese market/maker(2014) Development led by Display and Camera 1,222 1, High growth of Chinese SP Industry World biggest demand : from 70M(2011) to 331M(2013) Low growth of leading companies, innovative move of Chinese makers : Using own-developed AP(Huawei), 50M Camera(OPPO), the thinnest, 5.5mm SP(Gionee), etc New functions and experiences Biometric information record: fingerprint, iris, motion, etc. Activating wearable device development Source : Gartner Feb

11 2. Blue Filter Market Ⅱ. Optical Filter Division Mobile BSI Image Sensor Market Size Technology Trend of Image Sensor Main Camera (with BF) Mainstream trend of applying BSI to handset : CAGR 43.4% (2011~2016) Start implementing BSI to front camera Source : TSR Jun , Front Camera (Potential BF Market) 1, , ,090 1, F 2013F 2014F 2015F 2016F (MN Units) Market Trend Our Action 2,144 Rising penetration of BSI Image Sensor Migration to higher pixel Increasing BSI for Front Camera Need for thinner compact camera module Introduction of compact camera module with new concept/technology Building up capacity and improving yield rate to meet the increasing need for Blue filter (35M/month, as of Q) Developing new Blue filter by pixel (Blue filter Line-up: 2M~20M) Improving strength and thickness of existing products (Filter Line-up : 0.1mm ~ 0.3mm) Developing new type of ultra-thin Blue filter with film Participating in the development process of handset/camera module makers Offering technical cooperation/solutions 11

12 3. Products & Core Competitiveness Ⅱ. Optical Filter Division Product Applications & Lineup Core Competitiveness Shot IR Camera Motion Tracking Iris recognition Leading technology development in the Filter Industry Introducing new products following trend of camera module/image sensor Expecting multiple applications by light wavelength with thin coating technology e.g.) IR Cut-off Filter, IR Bandpass Filter(for Motion Tracking, Iris Recognition, etc.) UV Visible Light Infrared Light 200nm 400nm 600nm 800nm 1000nm Material Filter Type High credibility from superior quality and productivity The World Highest Transmittance Managing 98~137% bigger wafer than other blue filter competitors Own-developed Automatic Particle Inspection Machine ; able to detect particles up to 3μm (3/1000mm) Glass Film Reflective IR Cut-off Filter Absorptive IR Cut-off Filter / Blue Filter Blue Filter with Black Masking Dual Bandpass, IR Band pass Filter Absorptive IR Cut-off Filter / Film Filter Film Filter with Black Masking Diversified supply chain 1st vendor of global top3 camera module makers Adopted by 5 out of global top 10 smartphone makers Secured new clients following growing demand of various filter : supplying for global smartphone/tablet/pc makers through Korean and Chinese camera module manufacturers 12

13 4. Major Customers Ⅱ. Optical Filter Division Diversified Clients from Camera Module Makers to Global Smart Phone Makers Image Sensor Filter (Blue Filter, IR Filter) Camera Module Smartphone SEMCO LG Innotek Others Sharp Tablet, PC, etc. Others Others 13

14 Ⅲ. Image Solution Division 1. Major Applications 2. Market Forecast 3. Products & Competitiveness

15 1. Major Applications Ⅲ. Image Solution Division Image Solution Security Camera CAGR 13% in Video Surveillance Industry ( IHS 2013) Rising replacement demand for high-end products with HD level picture and strong video surveillance function Expanding home security market with easy access products using existing home network system [Glass Lens] [VCL] [Automotive Camera Module] [Car Black Box] Automotive Camera Car Black Box Camera Multi-Camera (360 Surveillance Camera) Rear Camera Black box Camera has been developed from VGA to HD, from 1,2 channel to 4 channels, which is available around view Line Departure Warning Cam Application: car black box, automatic parking assistance system, blind spot detection, night vision, driver watching system, etc. Anti-sleep Camera Rear Parking Camera Side/Rear Surveillance Camera Back Seat Camera 8 camera modules are applied in a vehicle currently, 5 to 20 on average in

16 2. Market Forecast Ⅲ. Image Solution Division Camera Module Market _ Security/Automotive Market Size of Automotive Camera Market Stand-Alone Cameras Medical/Scientific Tablet&PC Others Camera Phones Security&Surveillance Automotive (MN Units) % $77.8B (+461%) 63 $55.5B (+93%) F F 2013F 2014F 2015F 2016F Source: IDC Worldwide Mobile Phone Tracker Source: TSR

17 3. Products & Competitiveness Ⅲ. Image Solution Division PRODUCT LINEUP LENS Lens Module / VCL Camera Module SET VCL Lens Ass y Front Automotive Camera Module 10X~37X Lens Automotive Lens Ass y Rear Automotive Camera Module Car Black Box LENS CAMERA MODULE COMPETITIVENESS Providing total solution for customer's needs and requirement with full production line of lens and camera module High quality Control & Assurance system will guarantee Customer's satisfaction APPLICATION CCTV/VCL/ Automotive LENS Automotive camera applications (DVR/LDWS/LKAS/Front & Rear CAMERA, etc.) 17

18 Ⅳ. 2Q14 Earnings Report 1. 2Q14 Earnings 2. Financial Indices 3. Outlook 2H 2014

19 1. 2Q14 Earnings Ⅳ. 2Q14 Earnings Report 2Q14 Sales KRW 15.5BN(YoY -79.2%, QoQ -35.6%), OP -7.6BN(YoY net loss, QoQ bigger loss ) Decreased sales due to sluggish demand for existing high-end smartphone and shipment delay for new flagship model Operating loss from marketing costs of subsidiary s new product(car black box) launch: subsidiary operating loss 1Q 1.6B, 2Q 2.1B Subsidiary asset impairment recognized in full due to subsidiary s sales slowdown: Intangible assets(1.2 B), Goodwill(3.0B) Sales Revenue (KRW BN) Profit/Loss (KRW BN) Optical Filter Image Solution Etc 2Q14 1Q14 2Q13 QoQ YoY Sales % -79% Operating Expenses Operating Profit N/A N/A Non-operating Income Non-operating Expenses Net Profit before Tax N/A N/A Income Tax Net Profit N/A N/A 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 Corporate Governance Equity Non-controlling interests

20 1. 2Q14 Earnings_by business Ⅳ. 2Q14 Earnings Report Sales Breakdown Q Image Solution, 29% Etc., 12% Optical Filter, 59% Optical Filter Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Image Solution (KRW BN) (KRW BN) Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Optical Filter - The level of the total filter shipments is similar to the previous quarter - Blue filter shipment over 8M dwindled from slow demand of high-end smartphone - Initial quantity supplied for Chinese local makers from Jun / mass production plan for major clients new flagship models in 3Q Image Solution - Weaker sales revenue from sales slump of new car black box, increased marketing costs 20

21 2. Financial Indices Ⅳ. 2Q14 Earnings Report Assets (QoQ -4.6%, YoY -8.3%) : Total 4.2B full impairment loss recognized associated with subsidiary Liabilities (QoQ 0.4%, YoY -1.3%) : Maintaining total debt by repayment of accounts payable and current portion of long-term debt / bond Financial Indices : Rising net borrowings ratio by increased short debt from working capital increases Financial Status (KRW BN) Financial Indices 2Q14 1Q14 2Q13 QoQ YoY Assets % -8.3% Net Borrowings Ratio Long Debt Ratio Short Debt Ratio 119.0% Liabilities % -1.3% 77.9% 73.7% Equities % -17.5% 69.2% Borrowings % 36.0% Cashable Assets % 19.2% 22.1% 26.3% Net Borrowings % 40.7% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 21

22 3. Outlook 2H 2014 Ⅳ. 2Q14 Earnings Report Market Projection 1. Expanding Global Blue Filter Market - Rising demand of over 8M Main Camera module : 40% up compared to 2013 (TSR) - Increasing BF demand from Low pixel(under 5M) front camera - Increasing BF demand from Chinese major SP makers 2. Growth of Chinese Smartphone Market and Chinese local smartphone makers - Chinese brand market share rose from 31% in 2013 to 33% in 1Q14 in global smartphone shipment - Upgrade low-mid end models to mid-high end lineup by enhancing qualities/profit with price competitiveness - SP market share in China by maker(2q14): Xiaomi(14%), Samsung, Lenovo, Yulong(12%), Huawei(11%) and Others(39%) 3. Importance of Camera in new tech - Strong security system needed in smart devices: Fingerprint/ Iris security system - Information recognition capacity required for motion tracking and 3D effects Our Strategy: To grow together with global market with world best tech/capacity and diversified clients - Holding world largest blue filter capacity(35m/month) and various product lineup(glass/film, 0.1mm~ 0.3 mm) : secured shipment to front/back Camera of middle range to high-end SP/Tablet in 2H Rising blue filter shipment from low to high pixel camera module for major customers flagship models from 3Q - New BF market : chosen to supply BF for major customer s Front Camera - Expanding supply to global makers through Korea/China/Japan major camera module makers - Having developed Special Filter lineup for motion tracking and iris recognition 22

23 Ⅴ. Appendix 1. COMPANY PROFILE 2. SUMMARIZED B/S (K-IFRS Consolidated) 3. SUMMARIZED I/S (K-IFRS Consolidated)

24 1. COMPANY PROFILE Ⅴ. Appendix At a Glance (As of ) Equity Structure CEO Lim, Jee-Youn Employees 906 (Korea 318, China 588) Issued Capital KRW 10.1BN Total Shares 20,168,748 Controlling Shareholders (32.3%) Major Products Image Sensor Filter Optical Lens & Lens Module Optical Pick-up Filter Others (65.7%) Treasury Stock (2.0%) Organization History 1989 Established OPTRONTEC CO., LTD. CEO 1996 Optical lens start manufacturing in Korea 2000 Established OPTRONTEC Tianjin Co., Ltd Established OPTRONTEC Dongguan Co., Ltd. Strategic Plan (Korea) Export sales achieved USD 30,000, Listed on KOSDAQ Certification for World-Class products, IR Cut-off Filter 2009 Merged with HAVIT Information Co., Ltd Established Optical Solutions R&D Optical Filter (Korea, China) Optical Filter (Korea, China) R&D Center (Korea) nd Factory of Optical Filter Division for exclusive Blue Filter Hidden Champion Initiative Awards (Korea Exim Bank) 2013 Took over HDB Information Communication Extended Blue Filter line in Daejeon 2 nd Factory 24

25 2. SUMMARIZED B/S (K-IFRS Consolidated) Ⅴ. Appendix (KRW MN) 2Q Q Current Assets 81,746 88,327 82,642 89,439 85,232 Non-current Assets 148, , , ,350 92,548 Total Assets 230, , , , ,780 Current Liabilities 106, ,269 90,526 82,741 92,966 Non-current Liabilities 35,293 36,430 26,296 19,450 10,919 Total Liabilities 141, , , , ,885 Stockholder s Equities 89,144 98, ,236 87,609 73,889 Non-controlling Interests (288) 2,310 2,982 (11) 6 Total Equity 88, , ,219 87,598 73,895 Borrowings(A) 131, , ,694 85,426 90,684 Cashable Assets(B) 25,525 21,663 15,832 14,733 15,637 Net Borrowing(A-B) 105, ,814 84,862 70,693 75,047 Debt Ratio 159.0% 139.6% 110.0% 116.7% 140.6% Borrowing Ratio 147.7% 123.5% 94.8% 97.5% 122.7% Net Borrowing Ratio 119.0% 102.0% 79.9% 80.7% 101.6% 25

26 3. SUMMARIZED I/S (K-IFRS Consolidated) Ⅴ. Appendix (KRW MN) 1Q Q 2Q 1Q 2Q 3Q 4Q Total Sales Revenues 24,069 15,492 43,857 74,452 53,609 30, , , ,813 Sales Cost 20,342 16,767 31,965 53,317 37,966 27, , ,705 87,427 Gross Profit 3,728 (1,275) 11,892 21,135 15,643 3,530 52,199 36,630 24,386 Margin(%) 15.5% -8.2% 27.1% 28.4% 29.2% 6.6% 25.7% 21.4% 21.8% Operating Expenses 6,135 6,353 4,965 7,935 6,567 4,943 24,410 15,732 11,203 Operating Profit (2,408) (7,628) 6,927 13,200 9,076 (1,414) 27,789 20,898 13,183 Margin(%) -10.0% -49.2% 15.8% 17.7% 16.9% -4.6% 13.7% 12.2% 11.8% Non-operating Income 1, ,841 1, ,204 2,350 3,509 Non-operating Expenses 2,859 6,702 2,548 4,337 2,968 4,141 13,995 11,881 10,492 Net Profit before Tax (3,287) (13,358) 6,220 10,646 6,984 (4,852) 18,998 11,367 6,201 Margin(%) -13.7% -86.2% 14.2% 14.3% 13.0% -15.7% 9.4% 6.6% 5.5% Income Tax 0 (1,740) 611 3,147 1,448 (284) 4,922 1,257 (1,259) Net Profit (3,287) (11,618) 5,609 7,499 5,536 (4,568) 14,076 10,110 7,460 Margin(%) -13.7% -75.0% 12.8% 10.1% 10.3% -14.8% 6.9% 5.9% 6.7% Corporate Governance Equity (2,615) (8,419) 5,609 7,535 5,626 (3,244) 15,526 10,112 7,461 Non-controlling interests (673) (3,199) 0 (36) (90) (1,324) (1,449) (2) (1) EBITDA Margin(%) 4.5% -25.8% 21.5% 21.5% 22.5% 7.4% 19.6% 17.8% 19.3% 26

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