RichWave Technology Corp. Investor Presentation Macquarie Taiwan Corporate Day Oct. 2017
About RichWave Richwave confidential 2
Trend in Net Sales & Units Unit: NT$ Million +26% 2400 2000 1600 +29.4% +24% 1,382 +24% 1,716 2,161 1,951 1200 1,113 800 400 860 302 420 564 656 823 702 0 2012 2013 2014 2015 2016 2017Q1-Q3 Revenue Shipment Unit: Million pcs Richwave confidential 8
WiFi Is Ubiquitous Access All Industries 9 Richwave confidential 9
Embedded-WiFi Connects IoT Point to Multi-Point Enterprise Outdoor/Indoor Applications Source: SIPSS-GLOBAL Richwave confidential 10
Product Range Source: SIPSS-GLOBAL Richwave confidential 11
WiFi in AI ERA Router Cable Fiber IP Cam Automotive Smarthome Robotics Gaming IoT Ethernet, WiFi Video, WiFi GPON, WiFi Camera, Video, WiFi Sensor, Video, WiFi (cloud, V2V, V2X) Speaker- WiFi, Sensor, Control (WiFi, BT, Others) Sensor, Motor, WiFi Video, WiFi Sensor, WiFi, BT, Lora, Sigfox, NB-IoT Source: www.conceptdraw.com Richwave confidential 12
Segments Embedding WiFi & Players Retail Router Enterprise Router IP Cam STB/ OTT Gaming Smart Speaker Smart TV Smart Phone Automotive AI/ Robotics IoT TP-Link, ASUS, Netgear, Belkin, Buffalo Cisco, HP/Aruba, HUAWEI Hike-Vision, Netgear, Nest Roku, Technicolor, Xiaomi Nintendo, SONY, Microsoft Amazon, Google, Harman, Xiaomi, Alibaba Samsung, LG, Xiaomi ASUS, Samsung, LG, TCL, Xiaomi, Meizu KOR/JPN module companies ASUS- Zenbo, Softbank- Pepper, Anki- Cozmo Gemtek, Azureware, WNC, Fujitsu, Panasonic Richwave confidential 13
Total Addressable Market for RichWave Segments 2017 (f) 2020 (f) Growth (%) Remarks AP Router (DSL, Cable, PON) 350 400 14% M units STB/OTT 380 460 21% M units, 2020 Smart Phone 1,517 1,697 11.91% M units Smart TV 104 114 9.6% M units, 2018 Game Consoles 33,800 46,000 36% US$M Smart Speaker 8.3 94 1075% M units, US,2016 IoT 20,000 30,000 50% M units Smart Home 65 320 392% M units Automotive (info..) 1,062 7,914 645% US$M, 2016 PC/Laptop/ Tablet 435 433-0.5% M units, 2016 Source: IDC, IHS, Accelerating Biz analysis, frost & Sullivan, Ovum, Statista, IDATE, Gartner, Voicebot.ai, Edison Research, Digital Market Outlook, ABI Research Richwave confidential 14
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Cable & STB Drives WiFi Adoption Source: ARRIS Investor Day 2017 Richwave confidential 16
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Living-Room WiFi-Connectivity Fast Increase Richwave confidential 19
WiFi-in-Smart Speaker Grows Rapidly Richwave confidential 20
WiFi is Adopted from IOT, Home, M2M to Cloud and Everywhere Richwave confidential 21
Consumer WiFi AP-Routers Widely Adopted, High-end to Low-end in Variety Fields Source: Netgear, 2017/08 Richwave confidential 22
Enterprise WiFi AP-Routers are Different Source: IDC 2017 Richwave confidential 23
Wireless RF and Various Systems Richwave confidential 24
Coming Wireless: WiFi, 4G, 5G & IOT Complement Each Other Range (m) WAN (>1000) City and Nation LORA 3G Cellular 4G LTE-A relesse 10 Cat 4: 150Mbps Cat 6: 300Mbps LTE-Advance Pro (release 13) Cat 10:450Mbps 5G Network WiFi WLAN (100) Local Area Proprietary Sub-GHz 2.4GHz 802.11n 4x4 MIMO (~600Mbps) 802.11ac 4x4 MIMO (~6.9Gbps) 802.11ax 8x8 MIMO (~9.6Gbps) WPAN (10) WBAN (1) NFC RF4CE ZigBee BLE Bluetooth 5G mmwave (~10Gbps) FCC: licensed Spectrum 28 to 40 GHz Phase Array 25 0.01 1 10 100 1000 10,000 Data Rate (Mbps) Richwave confidential 25
Next Generation: 802.11ax Giving Faster Data Rate Source: ARRIS Investor Day 2017 Richwave confidential 26
WiFi Generation Migration: Increasing Bandwidth, Modulation & MIMO Richwave confidential 27
RichWave has Complete WiFi RFFE Solutions WiFi RFFE is Key for Performance: MU- MIMO Features Increase # RF Front End PA for range, LNA for Sensitivity. RFFE Quantity Proportional to MIMO LNA PA SWITCH Main Chipset (5GHz) FEM LNA PA SWITCH LNA PA SWITCH LNA PA SWITCH PFEM CPU Source: D-Link Main Chipset (2.4GHz) LNA PA SWITCH LNA PA SWITCH LNA PA SWITCH Diplexer/ Filter LNA PA SWITCH Antenna output 5GHz 11ac 5GHz 11n 2GHz 11ac 2GHz 11n PA/LNA/SW V V V V FEM (PA+LNA+SW) V V V V FEM(LNA+SW) V V V V Enterprise FEM (PA+LNA+SW) Mobility FEM (PA+LNA+SW) V V V V V V V V Richwave confidential 28
WiFi Range Coverage in 11ac & Beyond - Need High Power FEM/PA & LNA 11ac (3x3) 11n (1x1) 11n (3x3) High power PA/FEM for Go Far LNA for Sensitivity Richwave confidential 29
Growth Strategy & Advantages Richwave confidential 30
Annually Solid Growth over 30% in WiFi 2017Q2 PA QoQ growth 17% with 802.11ac Retail Router, YoY 66%. 2017Q2 WiFi Overall QoQ growth 11%, YoY growth 32%. Driven by 11ac worldwide share, MIMO 2x2 and 3x3, and increasing Range-coverage. Unit: NT$ Million 1600 1200 800 400 0 1529 1319 1059 922 2014 2015 2016 20171H Unit: NT$ Million 120 120 102 102 94 95 89 90 77 59 60 40 29 30 22 3 0 16Q3 16Q4 17Q1 17Q2 FEM-Brand/Carrier FEM-Cable PA Richwave confidential 31
WiFi FEM for Mobile Will Take Off 11ac 2-in-1 FEM and switch already adopted by leading players. 11ac 3-in-1 FEM will start to be adopted by leading mobile players and contribute to revenue in 2018. Source: IDC: Top 15 Smart Phone Vendors in 2016-2017 Richwave confidential 32
Win 150~200% Growth on Brand Players in LTE 2017 1H LTE SW/LNA overall revenue exceed 2016 entire year. LTE SW/LNA growth mainly come from China top brand. Continue penetrating into global brands in 2017 2H. Unit: NT$ Million Unit: Exabytes per month 90 1 13 60 0 30 48 74 66 0 2015 2016 20171H LTE SW LTE LNA Source: Cisco VNI, 2017 Richwave confidential 33
Broadcasting and Wireless Video Keep expanding in broadcast and wireless video. FM continue win in Korea flagship phone. Wireless long-distance HD video ship to smart home, car backup, drone with our proprietary transceiver. Unit: NT$ Million FM Wireless Video 300 295 239 150 164 156 137 105 0 2015 2016 20171H Richwave confidential 34
Our Coming Years Advantages WiFi Industry Trend 11AC => 11AX+ 1AC MIMO 2x2~4x4 In Router/Cable/STB/PON Our advantage Good EVM Tech. Good Noise Tech. Complete FEM/PA+Passive-integration Integrated-Simple Process Tech. Smarthome Smart Speaker and Video Good EVM Tech. Flexible Application Specific FEM Richwave confidential 35
Our Coming Years Advantages Industry Trend Our advantage IOT Multiple protocol Complete FEM/SW+Passive-Integration Low Power Technology LTE 5G WiFi-Mob => 11AC CA complexity & PAMid blended Antenna/Active/Integrated EM- Lumped-concept obsolete Small-form/LP WiFi-Mob FEM technology With complete active-elements & Integration Antenna technology & Antenna/Active integrations A MARKET THAT WILL MORE THAN DOUBLE IN SIX YEARS! Richwave confidential 36
Output Power Our WiFi 802.11ac Win by Performance H Parameter RichWave Ref. Video Stream Data Connected Pout @1.8% EVM 22.5dBm 22.5dBm 5GHz FEM Pout @1.8% EVM 20dBm 19dBm Set-top box Data Connected Pout @1.8% EVM 16dBm 16dBm 2GHz FEM Pout @3% EVM 27dBm 26dBm L IOT Richwave confidential 37