RichWave Technology Corp. Investor Presentation

Oct. 2017

Macquarie Taiwan Corporate Day

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About RichWave

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Unit: NT$ Million

Trend in Net Sales & Units

Unit: Million pcs

0

400

800

1200

1600

2000

2400

2012 2013 2014 2015 2016 2017Q1-Q3

860

1,113

1,382

1,716

2,161

1,951

302 420

564 656

823 702

Revenue Shipment

+24%

+29.4%

+24%

+26%

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WiFi Is Ubiquitous Access All Industries

9

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Embedded-WiFi Connects IoT Point to Multi-Point – Enterprise Outdoor/Indoor Applications

Source: SIPSS-GLOBAL

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Product Range

Source: SIPSS-GLOBAL

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WiFi in AI ERA

• Ethernet, WiFi Router • Video, WiFi Cable

• GPON, WiFi Fiber • Camera, Video, WiFi IP Cam • Sensor, Video, WiFi (cloud, V2V, V2X) Automotive • Speaker- WiFi, Sensor, Control (WiFi, BT, Others) Smarthome

• Sensor, Motor, WiFi Robotics

• Video, WiFi Gaming

• Sensor, WiFi, BT, Lora, Sigfox, NB-IoT IoT Source: www.Conceptdraw.com

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Segments Embedding WiFi & Players •TP-Link, ASUS, Netgear, Belkin, Buffalo… Retail Router • Cisco, HP/Aruba, HUAWEI Enterprise Router

• Hike-Vision, Netgear, Nest IP Cam • Roku, Technicolor, Xiaomi STB/ OTT • Nintendo, SONY, Microsoft Gaming • Amazon, Google, Harman, Xiaomi, Alibaba Smart Speaker

• Samsung, LG, Xiaomi Smart TV

• ASUS, Samsung, LG, TCL, Xiaomi, Meizu Smart Phone

• KOR/JPN module companies Automotive

• ASUS- Zenbo, Softbank- Pepper, Anki- Cozmo AI/ Robotics

• Gemtek, Azureware, WNC, Fujitsu, Panasonic IoT

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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

Total Addressable Market for RichWave

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Source: ARRIS Investor Day 2017

Cable & STB Drives WiFi Adoption

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Living-Room WiFi-Connectivity Fast Increase

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WiFi-in-Smart Speaker Grows Rapidly

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WiFi is Adopted from IOT, Home, M2M to Cloud and Everywhere

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Consumer WiFi AP-Routers Widely Adopted, High-end to Low-end in Variety Fields

Source: Netgear, 2017/08

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Source: IDC 2017

Enterprise WiFi AP-Routers are Different

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Wireless RF and Various Systems

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Coming Wireless: WiFi, 4G, 5G & IOT Complement Each Other

25 0.01 1 10 100 1000 10,000

WBAN (1)

WPAN (10)

WLAN (100)Local Area

WAN (>1000)City and Nation

Data Rate (Mbps)

NFC ZigBee

BLE

Bluetooth

Proprietary

2.4GHz

Sub-GHz

WiFi

802.11n4x4 MIMO(~600Mbps)

802.11ac4x4 MIMO(~6.9Gbps)

802.11ax8x8 MIMO(~9.6Gbps)

Cellular

5GmmWave(~10Gbps)

4G

3G

LTE-A relesse 10 Cat 4: 150Mbps Cat 6: 300MbpsLTE-Advance Pro (release 13) Cat 10:450Mbps

RF4CE

Range (m)

LO

RA

FCC: licensed Spectrum 28 to 40 GHz Phase Array

5G Network

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Source: ARRIS Investor Day 2017

Next Generation: 802.11ax Giving Faster Data Rate

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WiFi Generation Migration: Increasing Bandwidth, Modulation & MIMO

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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

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) V V V V

Mobility FEM (PA+LNA+SW) V V V V

Main Chipset (5GHz)

Main Chipset (2.4GHz)

CPU

LNA PA SWITCH

LNA PA SWITCH

LNA PA SWITCH

LNA PA

LNA PA SWITCH

LNA PA SWITCH

LNA PA SWITCH

LNA PA SWITCH

SWITCH

Diplexer/ Filter

PFEM

FEM

Source: D-Link

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High power PA/FEM for Go Far

11ac (3x3)

11n (1x1)

11n (3x3)

LNA for Sensitivity

WiFi Range Coverage in 11ac & Beyond - Need High Power FEM/PA & LNA

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Growth Strategy & Advantages

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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

0

400

800

1200

1600

2014 2015 2016 20171H

1059 1319

1529

922

0

30

60

90

120

16Q3 16Q4 17Q1 17Q2

59

94 95 102

3

22

40 29

77 89

102

120

FEM-Brand/Carrier FEM-Cable PA

Unit: NT$ Million

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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

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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

0

30

60

90

2015 2016 20171H

48

74 66

0

1 13

LTE SW LTE LNA

Unit: Exabytes per month

Source: Cisco VNI, 2017

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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

0

150

300

2015 2016 20171H

164

295

137 156

239

105

FM Wireless Video

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Our Coming Years Advantages Industry Trend Our advantage

WiFi 11AC => 11AX+ 1AC MIMO 2x2~4x4 In Router/Cable/STB/PON

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

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Our Coming Years Advantages Industry Trend Our advantage

IOT Multiple protocol Complete FEM/SW+Passive-Integration Low Power Technology

LTE

WiFi-Mob => 11AC CA complexity & PAMid blended

Small-form/LP WiFi-Mob FEM technology With complete active-elements & Integration

5G Antenna/Active/Integrated EM-Lumped-concept obsolete

Antenna technology & Antenna/Active integrations

A MARKET THAT WILL MORE THAN DOUBLE IN SIX YEARS!

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Our WiFi 802.11ac Win by Performance Output Power

L

H

Data Connected Video Stream

Set-top box

IOT

Data Connected

Parameter RichWave Ref.

5GHz FEM

Pout @1.8% EVM 22.5dBm 22.5dBm

Pout @1.8% EVM 20dBm 19dBm

Pout @1.8% EVM 16dBm 16dBm

2GHz FEM Pout @3% EVM 27dBm 26dBm