Company Overview 2013 Q4 by Marketing Div. Q2, 2015 TXC Confidential and Proprietary 1 Vision To become one of the Best Managed Companies in the world; competitive product offering, service excellence, growth sustainability, revenues-profit performance, values to the shareholders, quality brand name, and employee satisfaction Paul Lin Chairman & Founder Mission To achieve a Win-Win-Win partnership in the Supplier-TXC-Customer relationships Peter Lin President TXC Confidential and Proprietary 2 Over 30 Years in Timing Industry Facts • Founded in 1983, headquarters in Taipei, Taiwan • Taiwan Security Exchange, listed in 2000 • Diversified into Sensors Market, 2013 • Timing Market Share no.3, CS&A 2015 Awards • National Quality Award, Ministry of Economic Affairs 2010 • Corporate Citizenship Award, CommonWealth Magazine 2010~2012 • Information Disclosure Appraisal Award, Securities & Futures 2005~2012 • Inclusive Green Growth Award , BSI 2013 • Taiwan Mittelstand Award, Ministry of Economic Affairs 2013 TXC Confidential and Proprietary 3 Business Sustainability Corporate Social Responsibility • • • Community charity work Education and research Culture and arts Operation Management Commitment • • • Corporate Governance frame Information disclosure and transparency Stockholders rights and interests Environment Safety and Health • • • Government policy Protection, safety and health plan Environment safe hygiene TXC Confidential and Proprietary 4 Manufacturing Facility 1983(Taipei)/1996(PCF) 1999 2012 Automotive Automotive Taiwan, Ping Cheng (PCF) China, Ningbo (NGB) • kHz/MHz Crystal • kHz/MHz Crystal • TSX • TSX • XO/SO/MO • XO China, Chongqing (CKG) • MHz Crystal • TCXO/VCTCXO • VCXO • OCXO • RTC • Sensors 7M/m • • • • • 3 manufacturing facilities 200+ automated production lines 300M+ monthly capacity 2 R&D centers (PCF, NGB) 400+ engineers TXC Confidential and Proprietary 5 Quality Management System Integrated all market requirements into TXC systems 2002 2006 ISO 9001 Quality System (品質系統) ISO 14001 Environmental (環境管理系統) 2008 2010 IECQ/QC 080000 Hazardous Substances (有害物質系統) ISO/TS 16949 Automotive (汽車業品質系統) Samsung ECO Partner SONY Green Partner CSR Report Accountability And Sustainability (企業社會責任 報告書查證) OHSAS 18001 Occupational Health and Safety (職業安全衛生系統) 2011 ISO 50001 Energy Management (能源管理系統) ISO/IEC 27001 Information Security (資訊安全 管理系統) ISO 28000 Supply Chain Security (供應鏈安全 管理系統) ISO 14064-1 Greenhouse Gas Emission (溫室氣體) 2012 2013 2014 China Voluntary RoHS Certification (中國國推RoHS認證) TWAEO Authorized Economic Operator (優質企業) Water Footprint (產品水足跡) PAS 2060 Carbon Neutrality (產品碳中和) CNS 15506 Occupational Health and Safety (職業安全衛生系統) PAS 2050 Carbon Footprint (產品碳足跡) TXC Confidential and Proprietary 6 Product Portfolio Timing solutions & sensors for growing markets Crystals Metal Can Glass Seal Seam Seal Tuning Fork Oscillators & Modules Oscillators Crystal (XO) MEMS Oscillators (MO) Sensors SAW Oscillators Light Sensors (SO) (3-in-1) Temperature Compensated E-compass Sensors (TCXO/VC-TCXO) Sensor Crystal Temperature(TSX) Voltage Controlled (VCXO) Oven Controlled (OCXO) Real Time Clock (RTC) More sensors coming soon Automotive AEC-Q100/200 TXC Confidential and Proprietary 7 Manufacturing Quality Control • Calibration System • Testing Equipment Development • Multi-Skill Training and Grading System • E-Learning System Man • Maintenance Tracking System (MTS) • Computer Integrated Manufacturing System (CIM) • ERP Tracking System Machine Measurement ZERO Defect Concept Material Environment • • Class 1,000 clean room Particle Check System Method • • • • SPC PAT/SYA TPS PLM TXC Confidential and Proprietary 8 Total Revenue CAGR: 7% USD: Million 500 450 USD377M 400 USD327M 350 300 USD326M USD300M USD323M USD240M 250 200 2.3B units 2.6B units 150 100 50 0 Net Profit 2009 2010 2011 2012 2013 2014 10% 12% 13% 11% 10% 10% TXC Confidential and Proprietary 9 Market Segment Others 8% Automotive 5% Mobile Communication 29% Network & Infrastructure 38% 2014 Revenue USD323M Growth Drivers Xtal, TSX, XO, TCXO Ambient Lights & Proximity Sensors E-Compass Sensors Xtal, XO, VCXO, S3 TCXO, OCXO Xtal, XO, TCXO Mobile Computing 20% TXC Confidential and Proprietary 10 Market Share 2014 Rank Company Name 2014 Revenue (M) Percent of Total 1 Epson Toyocom $449 14.1% 2 NDK $417 13.1% 3 TXC $323 10.1% 4 KCD $293 9.2% 5 KDS $264 8.3% 6 Vectron $176 5.5% 7 SiWard $99 3.1% 8 9 10 Hosonic Rakon Failong $95 $71 $65 3.1% 2.2% 2.0% Other Companies $938 29.3% Total Revenue $3190 100.0% *TXC total revenue included others Source: TXC, CS&A 2015 TXC Confidential and Proprietary 11 Shipping Record 2014 Crystals & Oscillators Shipping Record Source: TXC, CS&A 2015 Units Share Position kHz Crystal 140M+ 2% No. 4 MHz Crystal 2.2B+ 25% No. 1 XO 90M+ 12% No. 3 TCXO 173M+ 12% No. 3 VCXO 9M+ 10% No. 4 OCXO 5K+ <1% TXC Confidential and Proprietary 12 Global and Localized Support IC Design Houses Europe • Germany Tier 1 China • Ningbo • Chongqing • Shenzhen • Shanghai • Suzhou • Beijing • Wuhan Enterprises Taiwan • Ping Cheng • Peitou Contract Manufacturers Japan • Yokohama • Osaka America • San Jose • Los Angeles • 14 Sales and Marketing offices, 150+ Account managers TXC Confidential and Proprietary 13 Product solutions TXC Confidential and Proprietary 14 Mobile, Computing – Small & Thin Solutions • 3G/4G LTE • WiFi • BT/BLE Crystal Smallest and Thinnest 0.30mm 1.2x1.0x0.30mm TSX • GNSS • HiFi Audio • Sensors Smallest and Thinnest 1.6x1.2x0.55mm TCXO/VCTCXO High stability ±0.5ppm Smallest: 1.6x1.2x0.55mm Sensors XO Ambient Light + Proximity e-Compass Low Jitter 1ps Smallest: 2.0x1.6x0.75mm TXC Confidential and Proprietary 15 Wearable, Sport & Fitness – Small & Thin Solutions • 3G/4G LTE • WiFi • BT/BLE Crystal Smallest and Thinnest 0.30mm 1.2x1.0x0.30mm TSX • GNSS • HiFi Audio • Sensors Smallest and Thinnest 1.6x1.2x0.55mm TCXO/VCTCXO High stability ±0.5ppm Smallest: 1.6x1.2x0.55mm Sensors XO Ambient Light + Proximity e-Compass Low Jitter 1ps Smallest: 2.0x1.6x0.75mm TXC Confidential and Proprietary 16 Healthcare – Small & Thin Solutions • 3G/4G LTE • WiFi • BT/BLE Crystal Smallest and Thinnest 0.30mm 1.2x1.0x0.30mm TSX • GNSS • HiFi Audio • Sensors Smallest and Thinnest 1.6x1.2x0.55mm TCXO/VCTCXO High stability ±0.5ppm Smallest: 1.6x1.2x0.55mm Sensors XO Ambient Light + Proximity e-Compass Low Jitter 1ps Smallest: 2.0x1.6x0.75mm TXC Confidential and Proprietary 17 Smart Home – Small & Thin Solutions • • • • 3G/4G LTE WiFi BT/BLE ZigBee • HiFi Audio • E-Meter • Sensors Crystal Smallest and Thinnest 0.30mm 1.2x1.0x0.30mm TSX Smallest and Thinnest 1.6x1.2x0.55mm XO Low Jitter 1ps Smallest: 2.0x1.6x0.75mm Sensors 32kHz RTC Ambient Light + Proximity e-Compass High stability ±5ppm Temperature Compensated TXC Confidential and Proprietary 18 Network, Storage – Low Jitter Solutions TCXO Ultra Stability ±100ppb Stratum 3 VCXO Super Computer Center Data Center Ultra Low Jitter 50fs Frequency up to 700MHz XO, SO Ultra Low Jitter 50fs Frequency up to 800MHz Design Center Department Crystal High Stability ±10ppm Frequency up to 400MHz TXC Confidential and Proprietary 19 Infrastructure – Ultra Stability Solutions OCXO S3-TCXO VCXO UltraStability Stability±3ppb ±3ppb Ultra Stratum3/3E 3/3E Grade Stratum HighStability stability ±100ppb ±100ppb Ultra Stratum33 Stratum UltraLow LowJitter Jitter50fs Ultra 50fs High Frequency 700MHz Frequency up to 700MHz XO, SO UltraLow LowJitter Jitter50fs Ultra 50fs High Frequency 800MHz Frequency up to 800MHz Crystal HighStability Stability±10ppm ±10ppm High Fund. Frequency 400MHz Frequency up to 400MHz 32kHz RTC HighStability Stability±5ppm ±5ppm High TemperatureCompensated Compensated Temperature TXC Confidential and Proprietary 20 Automotive – High Reliability Solutions Telematics & Infotainment System Security Electronic System Safety Electronic System Advanced Driver Assisted System ISO/TS 16949 Certified Crystal (AEC Q200) Metal Can: G2 Glass: G0 Seam: G1 XO (AEC Q100) Seam: G2 TCXO (AEC Q100) Seam: G2 Notes: G3:-40~85ºC / G2: -40~105ºC / G1: -40~125ºC / G0: -40~150ºC TXC Confidential and Proprietary 21 Sensors Introduction TXC Confidential and Proprietary 22 The smallest Ambient Light and Proximity Sensor (ALS+PS) integrated in ceramic package Smartphone Tablet Smart Home Smart Wearable TXC Confidential and Proprietary 23 Ambient Light & Proximity Sensor Features Patented stacking ceramic structure design for Miniature • Best for single aperture design 1.6mm 1.6mm • Wider Ambient Light view angle >90 degree • Excellent Proximity performance for black hair in Zero distance (PA12) TXC Confidential and Proprietary 24 Ambient Light & Proximity Sensors (PA Series) ALS+PS Sensor Product Series Voltage (V) Shutdown Current Output Light Peak Wave Length PA12 (2.5 x 2.0 x 1.0 mm) 2.5~3.6 1 μA Max. Digital I2C 850, 940nm (LED) PA23 (4.5 x 0.9 x 1.0 mm) 2.5~3.6 1 μA Max. Digital I2C 850, 940nm (LED, VCSEL) PA224 2.5 x 2.0 x 1.0mm 2.5~3.6 1 μA Max. Digital I2C 850, 940nm (LED, VCSEL) PA22A 2.5 x 2.0 x 1.0mm 2.5~3.6 1 μA Max. Digital I2C 850, 940nm (LED, VCSEL) TXC Confidential and Proprietary 25 The world first anti-magnetic interference & low power consumption e-Compass Smartphone Tablet Smart Wearable TXC Confidential and Proprietary 26 e-Compass Sensor Features • 3-Axis Anti-magnetic interference eCompass, free of calibration (PM131) • Low power consumption, 72uA@8Hz • Good thermal stability, <+/- 2 degree@-40C~85C • Package size, 1.6 x 1.6 x 1.0 mm TXC Confidential and Proprietary 27 e-Compass Sensor Features • Single chip 6-Axis e-Compass with 3-Axis magnetometer and 3-Axis Accelerometer (PM363) • Anti-magnetic interference e-Compass, free of calibration • Low power consumption, 400uA@50Hz • Acceleration scale, +/-2g ~ +/-8g • Built-in interrupt trigger for free-fall detection and motion detection • Package size, 2.4 x 2.5 x 1.0 mm TXC Confidential and Proprietary 28 e-Compass Product Series E-compass Sensor Axis Product Series Dimension Voltage Power consumption Output 3-Axis (Magnetometer) PM131 1.6 x 1.6 x 1.0mm 1.72 ~ 3.6V 80uA@10Hz Digital I2C 6-Axis* (Magnetometer+ Accelerometer) PM363 2.5 x 2.5 x 0.95mm 2.4~3.6V 400uA@50Hz Digital I2C TXC Confidential and Proprietary 29 Sensors Oscillators Product Catalog Crystals TXC Confidential and Proprietary 30 kHz Crystals (Mold, Seam Seal) kHz Crystal Product Series Frequency Range Feature Oscillation 32.768kHz ±10ppm / ±20ppm at 25ºC Tuning Fork 9H T10 (3.2 x 1.5 x 0.75 mm) 9H T11 (2.0 x 1.2 x 0.6 mm) 9H T12 (1.6 x 1.0 x 0.5 mm) TXC Confidential and Proprietary 31 MHz Crystals (DIP) DIP Crystal Product Series Frequency Range Feature 9B (HC-49S) 3.2 ~ 90MHz 2 Leads Oscillation Fundamental 3rd Overtone 9C (HC-49S SMD) 3.2 ~ 90MHz 2 Flatted Leads Frequency Range Feature 7A (5.0 x 3.2 x 1.2 mm) 8 ~ 54MHz ±10ppm / ±30ppm -10 ~ 70ºC 2 Pads 7V (3.2 x 2.5 x 0.8 mm) 9.9 ~ 54MHz 7S (2.5 x 2.0 x 0.75 mm) 12 ~ 64MHz MHz Crystals (Glass Seal) Glass Seal Crystal Product Series ±10ppm / ±30ppm -10 ~ 70ºC 4 Pads TXC Confidential and Proprietary Oscillation Fundamental 32 MHz Crystals (Seam Seal) MHz Crystal Product Series Frequency Range 7B (5.0 x 3.2 x 0.9 mm) 8 ~ 125MHz 7M (3.2 x 2.5 x 0.7 mm) 10 ~ 64MHz 8Z (2.55 x 2.05 x 0.5 5mm) 12 ~ 66MHz 8Y (2.0 x 1.6 x 0.5 mm) 16 ~ 54MHz 9Q (1.6 x 1.2 x 0.33 mm) 30 ~ 60MHz 8J (1.2 x 1.0 x 0.3 mm) 36 ~ 54MHz Feature Oscillation Fundamental 3rd Overtone ±10ppm / ±30ppm -10~70ºC / -40~85ºC Fundamental ±10ppm / ±20ppm -10~70ºC / -40~85ºC MHz Crystals (AuSn Seal) MHz Crystal Product Series Frequency Range 8H (2.0 x 1.6 x 0.35 mm) 16 ~ 60MHz 8Q (1.6 x 1.2 x 0.35 mm) 24 ~ 60MHz Feature Oscillation ±10ppm / ±20ppm -30~85ºC Fundamental TXC Confidential and Proprietary 33 Temperature Sensing Crystal (TSX) TSX Product Series Frequency Range OZ (2.5 x 2.0 x 1.0 mm) 12 ~ 54MHz OY (2.0 x 1.6 x 0.65 mm) 19.2 ~ 54MHz OW (1.6 x 1.2 x 0.65 mm) 26 ~ 54MHz Feature Oscillation ±10ppm -30 ~ 85ºC Fundamental TXC Confidential and Proprietary 34 Crystal Oscillators (CMOS) XO Product Series Frequency Range 7J (14.0 x 9.0 x 5.4mm) 1 ~ 170MHz 7W (7.0 x 5.0 x 1.3 mm) 1 ~ 170MHz 7C (5.0 x 3.2 x 1.2 mm) 1 ~ 150MHz 7X (3.2 x 2.5 x 1.0 mm) 1 ~ 125MHz 8W (2.5 x 2.0 x 0.8 mm) 4 ~ 75MHz 8N (2.0 x 1.6 x 0.75 mm) 4 ~ 54MHz Feature ±25ppm / ±50ppm -40 ~ 85ºC 1.8 ~ 5V <0.35ps Oscillation Fundamental 3rd Overtone Fundamental MEMS Oscillators (CMOS) MO Product Series Frequency Range Feature Oscillation TA (7.0x5.0x0.90mm) TB (5.0x3.2x0.75mm) TC (3.2x2.5x0.75mm) TD (2.5x2.0x0.75mm) TE (2.0X1.6x0.75mm) 1 ~ 150MHz (CMOS) ±20ppm / ±50ppm -20~70ºC / -40 ~ 85ºC 1.8 ~ 3.3V PLL (Silicon) TXC Confidential and Proprietary 35 Crystal Oscillators (Differential) Oscillator Product Series Frequency Range Output Type Feature Oscillation 7J (14.0 x 9.0 x 5.4 mm) 25 ~ 700MHz LVPECL LVDS BA/BB (7.0 x 5.0 x 1.3 mm) 25 ~ 200MHz BC (7.0 x 5.0 x 1.3 mm) 75 ~ 700MHz PLL BE/BF (7.0 x 5.0 x 1.3 mm) 25 ~ 200MHz Fundamental/ 3rd Overtone BG (7.0 x 5.0 x 1.3 mm) 75 ~ 700MHz BX (7.0 x 5.0 x 1.3 mm) 25 ~ 200MHz HCSL CA/CB (5.0 x 3.2 x 1.2 mm) 25 ~ 200MHz LVPECL CE/CF (5.0 x 3.2 x 1.2 mm) 25 ~ 200MHz LVDS Fundamental 3rd Overtone CX (5.0 x 3.2 x 1.2 mm) 25 ~ 200MHz HCSL 3rd Overtone DA/DB (3.2 x 2.5 x 0.95 mm) 25 ~ 200MHz LVPECL Fundamental 3rd Overtone DE/DF (3.2 x 2.5 x 0.95 mm) 25 ~ 200MHz LVDS Fundamental 3rd Overtone DH (3.2 x 2.5 x 0.95 mm) 25 ~ 200MHz HCSL 3rd Overtone BS/BT (7.0 x 5.0 x 1.6 mm) 150 ~ 700MHz CS/CT (5.0 x 3.2 x 1.2 mm) 150 ~ 700MHz Fundamental 3rd Overtone PLL Fundamental 3rd Overtone LVPECL LVDS PLL LVPECL LVDS ±25ppm / ±50ppm -40 ~ 85ºC 2.5 ~ 3.3V ±50ppm / ±100ppm -5 ~ 85ºC 2.5 ~ 3.3V TXC Confidential and Proprietary 3rd Overtone Fundamental 3rd Overtone SAW-Based SAW-Based 36 Temperature Compensated Crystal Oscillators (TCXO) TCXO Product Series Frequency Range Feature Oscillation ±0.5ppm / ±2.0ppm -30 ~ 85ºC 1.8 ~ 3.3V Fundamental 7Q (3.2 x 2.5 x 1.0 mm) 13 ~ 52MHz 7L (2.5 x 2.0 x 0.8 mm) 7Z (2.0 x 1.6 x 0.75 mm) 26 ~ 52MHz 8P (1.6 x 1.2 x 0.55 mm) TCXO (S3) Product Series Frequency Range Feature Oscillation 7P (5.0 x 3.2 mm) 7N (7.0 x 5.0mm) 12.8MHz 19.2MHz 19.44MHz 20MHz 25MHz 26MHz 38.4MHz ±0.1ppm ~ ±0.28ppm -40 ~ 85ºC 2.7 ~ 5.5V Fundamental TXC Confidential and Proprietary 37 Voltage Controlled Crystal Oscillators (VCXO) VCXO Product Series Frequency Range Output Type Feature Oscillation 7H (14.0 x 9.0 x 5.4 mm) 50 ~ 700MHz CMOS LVPECL LVDS APR ±50ppm -40 ~ 85ºC 3.3 ~ 5.0V Fundamental 6U (7.0 x 5.0 x 1.3 mm) 1 ~ 59MHz BR (7.0 x 5.0 x 1.3 mm) 50 ~ 200MHz Fundamental BJ (7.0 x 5.0 x 1.3 mm) 50 ~ 250MHz Fundamental BK (7.0 x 5.0 x 1.3 mm) 60 ~ 700MHz BM (7.0 x 5.0 x 1.3 mm) 200 ~ 700MHz Multiplier BN (7.0 x 5.0 x 1.3 mm) 50 ~ 250MHz Fundamental BP (7.0 x 5.0 x 1.3 mm) 60 ~ 700MHz CN (5.0 x 3.2 x 1.2 mm) 50 ~ 200MHz CR (5.0 x 3.2 x 1.2 mm) 50 ~ 200MHz CMOS Fundamental CJ (5.0 x 3.2 x 1.2 mm) 50 ~ 200MHz LVPECL Fundamental DR (5.0 x 3.2 x 1.2 mm) 50 ~ 200MHz CMOS Fundamental DJ (5.0 x 3.2 x 1.2 mm) 50 ~ 200MHz LVPECL Fundamental Fundamental CMOS PLL LVPECL LVDS APR ±50ppm -40 ~ 85ºC 3.3V PLL Fundamental TXC Confidential and Proprietary 38 Oven Controlled Crystal Oscillators (OCXO) OCXO Product Series Frequency Range Feature Dimension OC 10 ~ 25MHz ±5ppb 36 x 27 x 14 mm (Dip type) OB 10 ~ 25MHz ±10ppb 25 x 25 x 11mm (Dip type) OE 12.8 ~ 25.6MHz ±30ppb 9 x 14 x 7.7mm (SMD type) TXC Confidential and Proprietary 39 Automotive Crystals / Oscillators / TCXO / TSX Type Crystal Oscillator TCXO TSX Product Series Frequency Range Temperature Range AS (HC-49S) 4~62.4MHz -40~+105℃ AT (HC-49S/SMD) 4~62.4MHz -40~+105℃ AX (8045 Glass) 6~40MHz -40~+150℃ AA (5032 Glass) 8~48MHz -40~+150℃ AV (3225 Glass) 9.84~62.4Mhz -40~+125℃ AH (3215 Seam) 32.768kHz -40~+125℃ AB (5032 Seam) 8~50MHz -40~+125℃ AM (3225 Seam) 10~50MHz -40~+125℃ AZ (2520 Seam) 16~80MHz -40~+125℃ AY (2016 Seam) 16~50MHz -40~+125℃ AC (5032 Seam) 1~70MHz -40~+105℃ AU (3225 Seam) 1~70MHz -40~+125℃ AW (2520 Seam) 4~54MHz -40~+125℃ AQ (3225Seam) 13~52MHz -40~+105℃ AL(2520 Seam) 13~52MHz -40~+105℃ AE(2520 Seam) 19.2MHz -40~+105℃ TXC Confidential and Proprietary Manufacturing NGB PCF PCF 40 Thank you TXC Confidential and Proprietary 41