Senao Networks, Inc. Taiwan TPEX Listed Company

Code : 3558

Presented by Tommy Tsai

Oct, 2015

2

Outline

Company Profile

Financial Performance

Technologies Development Schema

Product Portfolio

Investment Highlights

Company Profile

Company Profile

Founded in 2006

Chairman & CEO : Tommy Tsai

Working Capital : NT$ 489M(US$15M)

Market Capital : NT$10.5Bn(US$324M) of Sep, 2015

Employees : 1200+ around the world

Brand ：EnGenius®

OEM / ODM / JDM business

Product focuses:

• WLAN Solutions

• Ethernet Connectivity Products – PoE / L2 / L3

• Network Security Products – VPN / Firewall / UTM

• IP Surveillance Solutions – Mesh IP Cam / VMS / NVR

• Enterprise Cordless Phone

• Industrial Personal Computer (IPC)

• Industrial Switching Power Supply

• Wireless Antenna

4

Finance

Human

Resource

Organization Chart

Quality

Assurance

MQM

SQC

QE

RMA

R&D

Data Comm.

Video Comm.

Voice comm.

SQA

Marketing

& Sales

Sales I

Sales II

RBU IT

President

Board of Directors Remuneration

Committee Internal

Auditing Office

Chairman & CEO

Adm.

Manufacturing

Production &

Mat’l Control

Process

Engineering

Logistics

Operation

5

SENAO Taoyuan, Taiwan

36,300 m2 (Plant 1)

Manufacturing Site

• HQ Location: Taoyuan, Taiwan (15 km from Taoyuan airport)

• Total Manufacture Facility: 48,000 sq. meters

SENAO Taoyuan, Taiwan

11,700 m2 (Plant 2)

6

7

LinKou NeiHu

HsinChu

R&D

Center

R&D Center

Worldwide Service & Support

8

Worldwide branches & distributors :

Los Angeles & Miami / USA, Amsterdam / Netherlands, Singapore, Dubai / UAE.

Financial Performance

10

Financial Performance

Sales Revenue 38.94 48.74 49.81 61.84 36.88

EPS (NT$) 4.22 7.16 10.03 12.63 7.86

2015

1H

In millions of NTD

11

Financial Performance - Sales Revenue

In millions of NTD

12

Y2014 ～ Y2015.Q2

2015

1H

Financial Performance – Net Profit

In millions of NTD

13

EPS Y2014 ～ Y2015.Q2

2015

1H

Financial Performance – EPS

In millions of NTD

14

Y2014 ～ Y2015.Q2

Consolidated Balance Sheets

In millions of NTD

2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2

Cash & Cash equivalents 2,066$ 2,378$ 2,289$ 2,536$ 2,470$ 2,735$

Accounts Receivable 834 913 1020 1032 1,180 1,193

Inventories 548 471 587 542 662 698

Total Assets 3,743$ 4,092$ 4,276$ 4,483$ 4,743$ 5,107$

Accounts Payable 1,422 1,917 1,888 1,930 1,993 2,514

Current Liabilities 1,686 2,202 2,218 2,254 2,323 2,958

Total Liabilities 1,747$ 2,231$ 2,252$ 2,278$ 2,349$ 2,984$

Stockholders' Equity 1,996$ 1,861$ 2,024$ 2,205$ 2,394$ 2,123$

15

Y2014 ～ Y2015.Q2

Consolidated Statements of Cash Flows

In millions of NTD

Y2014Q1 Y2014Q2 Y2014Q3 Y2014Q4 Y2015Q1 Y2015Q2

Cash Balance - Beginning of Period 2,181$ 2,066$ 2,378$ 2,290$ 2,536$ 2,470$

Cash Flows from Operating Activities (101) 339 240 302 (1) 339

Cash Flows from Investing Activities (15) (40) (45) (44) (67) (77)

Cash Flows from Financing Activities (2) 17 (287) (20) 5 6

Effect of Exchange Rate Changes 3 (4) 4 8 (3) (3)

Cash Balance - End of Period 2,066$ 2,378$ 2,290$ 2,536$ 2,470$ 2,735$

16

Y2013

Marketing Territory

Y2014

Y2015 1H

Technologies Development

Schema

Wireless Management Switch

Zone 1 Wireless Managed Access Point

Wireless Managed IP Camera

Neutron NMS

Sector Antenna Access Point NMS

Zone 3

ezMaster Off-site physical server/

Cloud instance

Public / Private Network

Mesh IP Cam

Technologies Development Schema

Zone 2

UTM

Wireless Managed Access Point

Power Module

18

Neutron NMS

Distributed Cloud Network Management Solution

Product Portfolio

Wireless Cloud Management Access Point

20

Indoor Multi-function Dual

Concurrent AP with MIMO

Antenna

Indoor Ceiling Mount High-

power High-sensitivity AP

Indoor Ceiling Mount Dual

Concurrent AP with MIMO Antenna

Long Range Point-to-point CPE

with High-gain Antenna

Cloud Routers

Dual Concurrent (2.4GHz/5GHz) AP

with MIMO Antenna

Phone Routers

Wireless Networking System

Wireless IoT Gateway

Dual Concurrent (2.4GHz/5GHz) AP

with MIMO Antenna (4T4R)

Wireless Management Controller

Layer 2 PoE Managed Switch (L2 : 8/24/48 Ports) PoE Managed Switch (8 Ports)

Wireless Management Switch & Security Appliance

PoE Ethernet Switch

Industrial Personal Computer (IPC intel X86 series)

21

Wireless Management Controller Unified Threat Management (UTM) Switch

Wired Networking System

22

Outdoor Bullet IP Cam Indoor Box IP Cam Indoor Dome IP Cam

Indoor mini Box

IP Cam Outdoor mini

Bullet IP Cam

Indoor Dome

IP Cam Home Cam

IP Surveillance

Network Camera

VMS / Cloud Monitoring System

CMS – 32 Channels Mobile APP

Single Port PoE Adapter

Proprietary 54V Compatible

Gigabit PoE Adapter

802.3af/at Compliant

Gigabit PoE Adapter

Power Module 150W

Open Frame Power Module

Power Adapter 30W Power Adapter 90W

Power Adapter

Proprietary 24V Compatible

10/100 PoE Adapter

Power Module 300W Power Module 900W Power Module 589W

23

Power Module

24

Omni Antenna 2.4GHz 2x2MIMO 10dBi 5GHz 2x2MIMO 13dBi

2.4GHz 3x3MIMO 10dBi 5GHz 3x3MIMO 13dBi

Panel Antenna 2.4GHz 2x2MIMO 20dBi 5GHz 2x2MIMO 23dBi

2.4GHz 3x3MIMO 16dBi 5GHz 3x3MIMO 19dBi

Wireless Antenna

Dipole Antenna 2.4GHz 5dBi 5GHz 7dBi

Sector Antenna 2.4GHz 2x2MIMO 16dBi 5GHz 2x2MIMO 19dBi

2.4GHz 3x3MIMO 12dBi 5GHz 3x3MIMO 15dBi

Wireless Antenna

25

1-Line Frequency Hopping

Long Range Cordless Phone

Up to 1 ～ 3 Km

4-Line Frequency Hopping

Long Range Cordless Phone

Up to 1 ～ 3 Km

Enterprise Cordless Communication System

Enterprise Cordless/ IP Communication System

4 Simultaneously call

Long Range IP & Cordless Phone

Up to 1 ～ 3 Km

Walki-Talki & Cordless

Long Range Dual Mode Phone

Up to 1 ～ 3 Km

26

2012

2013

2014

TAIWAN EXCELLENCE AWARD EP800H

EAP350

reddot design award EAP600

COMPUTEX d&i ESR300H

ENH700EXT

TAIWAN EXCELLENCE AWARD EAP600– Silver Award

ESR750H

ERB300H

COMPUTEX d&i ERB600

ENH900EXT

iF Design Award ETR150

TAIWAN EXCELLENCE AWARD 2014 EDS1130 Day/Night Compact Network Camera

EDS6110 Mini Day/Night Dome Network Camera

ENH1750EXT Wireless Access Point

ESR Cloud Router Series

reddot design award ENH Dual Band Outdoor Access Point

CES Innovation Design and Engineering Award ESR2300 ProAV Wireless AC2300 Gigabit Router

EP800H ESR300H ESR750H ERB300H EAP350 ETR150 ERB600

ENH700EXT

ENH Dual Band Outdoor AP ENH900EXT / ENH1750EXT

EAP Ceiling Mount AP

ESR Cloud Router EDS6110

EDS1130

ESR2300

Product Awards

Investment Highlights

Total Solution Differentiation

Vertical Integration

Innovation

Investment Highlights

28

29

Time

Emerging

Mature

Established

Horizons

Corporate Wireless

Access Point

Unified Threat

Management (UTM)

Long Range Cordless

Phone

Ethernet PoE Switch

IP Cam

2.4G/5G Wifi Antenna

Outdoor / LTE Antenna

Industrial Personal

Computer (x86 series)

Industrial Switching

Power Supply

Mesh IP Cam

2015 2016

Investment Highlights – Technology/Product

R & D

30

Investment Highlights – R&D

R&D expense is average 5~6% of revenue

Total R&D Headcount of 300 people of September/30/2015

Headcount

HQ

RD Lab

Hsinchu

RD Lab

Neihu

RD Lab

Education Experience

Seniority

Q & A