Parade Technologies

January 5, 2021

Parade Technologies Best solution provider for touch, display and high-speed digital

interface applications

Safe Harbor Notice

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This presentation includes forward-looking statements. All statements,

other than statements of historical facts, that address activities, events

or developments that Parade Technologies Ltd. expects or anticipates

will or may occur in the future (including but not limited to projections,

targets, estimates and business plans) are forward-looking statements.

Parade’s actual results or developments may differ materially from those

indicated by these forward-looking statements as a result of various

factors and uncertainties, including but not limited to price fluctuations,

actual demand, exchange rate fluctuations, market share, competition,

environmental risks, change in legal, financial and regulatory

frameworks, government policies, international economic and financial

market conditions, political risks, cost estimates and other risks and

factors beyond our control.

Parade does not undertake any obligation to publicly update any

forward-looking statement to reflect events or circumstances after the

date on which any such statement is made or to reflect the occurrence

of unanticipated events.

About Parade Technologies, Ltd.

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World’s leading provider of Touch, Display and High-

Speed Digital Interface solutions

Market leader in DP/eDP timing controller

Leading expertise in DisplayPort technology and high-speed digital

interface transmission

Industry’s rich portfolio of high-speed interface product

Rich portfolio of touchscreen and TDDI solutions with the industry’s most

robust noise immunity and wet finger touch performance

Strategic collaboration with leading CPU/GPU vendor and tier-1

global brand end customers

IPO on September 13, 2011 - Taipei Exchange: 4966 Acquire Cypress TrueTouch mobile business on August

1, 2015 ; Acquire Fresco Logic on June 2, 2020

Worldwide 578 employees

L

T

Global Presence

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Korea

(Customer

Support)

Taipei

(Operations,

Sales, R&D,

Customer

Support)

Shanghai

(R&D, Customer

Support)

Hong Kong

(Sales,

Logistics)

Nanjing

(R&D) California

(Headquarters)

Sufficient, Timely and Efficient

Japan

(Customer

Support)

Washington

(R&D)

Ireland

(R&D)

Shenzhen

(Customer

Support)

Beijing

(Customer

Support)

Beaverton

(R&D)

Chongqing

(R&D,

Customer

Support)

Touch Controller Single touch, two-finger touch and

muti-touch for screen size from

1.5~10.1”

TDDI/Flexible AMOLED touch controller

For Smart phone/ Tablet/

Wearables/ E-reader//Industrial

High-Speed I/F

Re-driver/Re-timer/Jitter Cleaning; support DP, USB ,HDMI, PCIe, SATA

DP 1.4a to HDMI 2.0b Convertors; USB Type-C 10Gb/s re-timer; USB Type-

C re-driving switch/with USB-PD Controller; USB 3.2 Hub; Type-C PD

4,16-Channel PCIe 4(16Gb/s) re-timer For PC/ Notebook/ Dasktop/ Tablet/

TV/ Server/ Dongle applications

DP/eDP Tcon eDP v1.2/v1.4 Tcon; support TFT LCD and AMOLED panels, up to 4K resolution TED (Tcon-Embedded Driver);

Supports eDP 1.4b Panel Self-Refresh For Tablet/Notebook/ALL-in-One /Monitor applications

Parade’s Products

Source Driver

Point-to-Point source driver: SIPI / iSP

source driver

For Notebook/Tablet panels

applications

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Product Mix- FY2019

32%~37% 47%~52%

7%~12% 5%~10%

DP

eDP Tcons

High-Speed I/F

Repeater

Jitter Cleaning

Converter

Source Dr.

SIPI

iSP

Touch

Single Touch

Muti –Touch

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Major Customers

US Japan Korea

China Taiwan

Industry Trend

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Data Transmission Move to Higher Speed

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1G LEGACY

10G TODAY

40G TOMORROW

100G NEXT GEN

Jitter and signal degrade

problems will become

significant due to

increasing data rate

USB 2.0 SATA 1.0 PCIe HDMI 1.0

USB 3.1 Gen 2 SATA 3.0 DP 1.2/ eDP 1.3 HDMI 2.0

DP 2.0 Thunderbolt 4

PCIe 4/5 HDMI 2.1 USB 4.0

? High-Speed interface

products will become

important to solve the

Jitter and signal

degrade problem

Higher resolution/ Higher refresh rate/ HDR

– faster speed and higher bandwidth

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HD FHD QHD→4K

1366 X 768

1 Gb/s

1920 X 1080

3 Gb/s

2560 X 1600

8 Gb/s~20Gb/s

Resolution:

Data Rate:

2011 2015

Evolution of DP/eDP- Low power/Higher bandwidth

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DP v1.2a

2012

2014

DP v1.3

2016

DP v1.4

2019

DP v2.0

eDP v1.1

2008

2010

eDP v1.2

eDP v1.3 (PSR)

eDP v1.4 2011

2014

- Added AUX channel commands

to control panel backlight and other

display functions

- Added HBR2 5.4 Gb/s as option

Fast link training by Sink made

mandatory

-Added Partial-Update

Panel Self-Refresh(PSR)

option -Added Display Stream

Compression option

-Added Regional Backlight

Control option

-Added Multi-touch over

AUX options

eDP v1.4 (a/b)

- Addition of specifying

Y-coordinates for

partial frame update

- Refinement to eDP 1.4

standard

- * Automotive leans to

adopt DP similar

standard for their

advanced panel

display

2015

Expansion product portfolio to match

mobile panel evolution and high-speed

data transmission Build up broad Tcons, source drivers, touch

and high-speed I/F solutions portfolio for

different mobile device applications

Address products unique features by leverage

our core technology and innovation

Provide best integrated solution for high-

speed transmission, high-end display,

lower cost, lower power and lower EMI/RFI

Customized solution for target customers Through integrate more functionalities to offer

customers the ability to deliver differentiated

features and user experience to their end-

customers

Continue to cultivate strong relationship

with strategic partners Best performance and production quality

Timely deliver new technology and products

Growth Strategies

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DisplayPort

Technology

SERDES

Technology

Low Power

Low Cost Low EMI/RFI

High Speed/

Bandwidth

Parade

Touch Sensing

Technology

Equalizer/

Jitter Cleaning

Technology

Target Markets

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Industry’s most advance products

• Very low power eDP 1.2 v Tcon with Smart-Backlight TM feature

• eDP 1.4b Tcon support PSR2 for lower power, lower BOM cost

• eDP Tcon for AMOLED Panels supports eDP 1.4b for Extended

Battery Life

Leading market share position

• eDP1.4v Tcons have mass production for years and available

supporting low power/higher resolution and high refresh rate

panels and multiple Tcon to Source Driver interfaces

• Demand on PSR Tcon in major OEM and general Notebook

market increased

• Have majority market share in Notebook eDP Tcons

• Secured design-wins with major OEMs

Developing highly integrated solutions for thin-profile

panels

• TED(Tcon embedded driver) solution for thin-profile panel has mass production

Parade in Timing Controller Market

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Advance

Leading

Opportunity

Parade in Source Driver Market

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Notebook/Tablet Panel – Move to higher bandwidth

• While eDP removed the data bottleneck between the GPU

and Tcon, there was still a difficulty for the Tcon output

specially when supporting higher-bandwidth, COG panels

Ability to support high-resolution/high refresh, COG

panels

• With our core high-speed technology and advantages of SIPI interface, SIPI source driver provide advantages over the market existing source drivers

• SIPI source driver will get more benefit when Notebook/ Tablet panel move to higher resolution and high bandwidth demand

SIPI source driver growth well

• eDP v1.2 and eDP v1.4 TCON paired with SIPI source driver has design-in/win with many panel makers and are leading soulations for NB/Tablet panel

High Resolution/

Bandwidth

Ability

Status

DP/USB/HDMI/PCIe has increasing their data

rates • USB Tpye-C goes to 20 Gbps; HDMI 2.1 goes to 12 Gbps

• Strong demand for high-speed interface products to solve

high-speed transmission problems

Market leader in USB Type-C switch and Repeaters

• High-Speed interface products have qualified by Tier-1 OEMs

• Market leader in USB Type-C 10Gb/s re-timer and USB Type-C

re-driving/re-timing switch/with USB-PD Controller

• HDMI 2.0 repeater with Jitter cleaning: market best solution to

solve design challenge of HDMI 2.0

• New DP1.4a to HDMI 2.0b converters may remove jitter during

the protocol conversion process and may support HDR at 4K

• 4 &16-Channel 16 Gb/s PCIe retimer: for server with low power

Acquisition of Fresco Logic on June 2, 2020

• Synergy of Fresco’s USB expertise with Parade’s proven high-

speed data transport experience will position Parade as a key

supplier of integrated solutions for USB4 host, hub, docking and

device applications

Parade in High-Speed Interface Market

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Acquisition

Opportunity

Leading

Parade in Touch Market

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Acquire Cypress’s TrueTouch mobile business

• Purchase price of $100 million

• 90 employees from Cypress. Included R&D, Marketing and Sales

Expands market position in display and touch market

• Own unmatched IP portfolio of hundreds of capacitive touch-sensing patents

• Market-leading touch solutions • Enables roadmap for touch and display integration (tTED)

Developing total solutions for panel maker

• Integrated Touchscreen Controller and Display Driver Solution(TDDI) for Smartphone FHD / FHD+ LTPS in-cell displays has mass production

• Keep developing AMOLED touch and other display/touch integrate solutions (tTED/TSD)

Acquisition

Status

Developing

Financial

Results

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Revenue

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Revenue (US in millions)

$51

$79

$161

$142

$205

$226

$282

$340 $343

$382

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Annual Financial Performance

Net Revenue

(US$ in millions)

Gross Margin

(% of Net Revenue)

Net Income R&D Expense

(US$ in millions) (US$ in millions)

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$51 $79

$161 $142

$205 $226

$282

$340 $343

$382


42.6%

48.0% 51.4%

43.5% 41.3% 40.3% 41.1% 40.5% 41.5% 42.7%


$7.1 $10.9

$18.1

$22.6 $24.2

$32.4

$44.4 $45.6

$50.7 $53.6


$8.6

$15.4

$43.4

$22.9

$40.5 $36.0

$42.0

$63.6 $65.1

$78.7


Key Balance Sheet Items

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(in USD thousands) 12/31/2016 12/31/2017 12/31/2018 12/31/2019

Cash and Cash Equivalents 124,987 160,055 195,701 270,380

Account Receivable 47,558 52,272 45,944 39,944

Inventory 26,329 34,275 35,800 31,481

Total Assets 305,674 355,912 391,746 459,393

Shareholders' Equity 232,616 281,533 316,455 375,577

Business Outlook

Based on current business outlook, Parade is providing

the following guidance for the fourth quarter of fiscal

2020:

Revenue: US$135 - 149 Million

Gross margin: 41.5%-44.5%

Operating expense: US$27- 28 Million

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Investment Highlights

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Leading Position in Fast Growing DisplayPort and High-Speed

Interface Markets

Leading expertise in DisplayPort technology and high-speed

digital interface transmission

Technology leader for next-generation display-touch

integration solutions

Own unmatched IP portfolio of hundreds of capacitive touch-

sensing patents New development for the high-speed applications in server

market

Strategic Collaborations with Leading CPU/GPU vendor and

Tier-1 Global Brand End-Customers

Focus on Driving Future Growth and Profitability

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Thank You

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Parade Technologies

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