Axiomtek Profile YT Yang Chairman & CEO October 20, 2015 Agenda Milestone & Organization Sales and Product Analysis What Our Development Allied with IoT 2015 Axiomtek Profile 2 2015 Axiomtek Profile 3 Group Business Integration Networking Security ITS Computing Display & Power Automation Digital Signage Energy Gaming Transportation POS/Kiosk HMI Medical Surveillance Vertical Markets Innovations for the Connected World 2015 Axiomtek Profile 4 Global Operation Beijing Düsseldorf AXGM AXIT AXSZ AXDG Shanghai Shenzhen Dongguan AXTH Los Angeles AXHQ EWTW ADS AXCA Methuen AXMA EWUS Orange County AXMY 2015 Axiomtek Profile 5 Axiomtek BU Organization AXIT AXMY AXGM AXTH AXCA Franchise Partners AXMA AXSZ AXTW Channel Partners KA/ODM Regional Business Units Transportation Automation Energy Medical Design-in AXView 2.0/Wireless Gateway/Industrial Firewall for IoT & M2M EMB NBD RISC IMB SoM IPC SSBC EBDS GPPC EBM ESP (Embedded Board & Module) (Embedded Systems & Panel PC) HMSS Gaming ODM & NA DMS Strategic Business Unit/Product Groups AXSYS OBM AXDG in China PCBA & System Integration Chassis Assemble & Integration in USA Valued System Integration ODM PCBA & System Integration Facilities 2015 Axiomtek Profile 6 Agenda Milestone & Organization Sales and Product Analysis What Our Development Allied with IoT 2015 Axiomtek Profile 7 Financial Results 5,000,000 4,368,921 3,690,911 4,000,000 2,802,263 2,761,899 3,000,000 (EPS) 2,000,000 4.75 3.47 1,000,000 2.31 1.86 0 2011 Year Revenue (NTD K) 2012 2011 H1 2013 2012 H2 H1 2014 2015 2013 H2 H1 2014 H2 H1 2015 H2 H1 H2 1,440,429 1,321,470 1,342,883 1,459,380 1,666,028 2,024,883 2,226,335 2,142,586 2,172,132 2,761,899 2,802,263 3,690,911 2015 Axiomtek Profile 4,368,921 8 Product Revenue Breakdown by OBM/DMS(ODM) DMS 33.0% OBM 67.0% by Product Industrial Network, 21.0% Panel PC and Display, 10.0% Geography Asia, 11.0% Emerging, 3.5% Embedded Boards and SoMs, 20.0% Greater China, 13.0% America, 50.0% Embedded Systems, 49.0% Europe, 22.5% 2015 Axiomtek Profile 9 Agenda Milestone & Organization Sales and Product Analysis What Our Development Allied with IoT 2015 Axiomtek Profile 10 IoT and Industry 4.0 Internet of Things Lead industry in transforming businesses and the way we live by making it simple to create exciting, new IoT solutions Devices that connect to the Internet integrating greater compute capabilities using data analytics to extract information 2015 Axiomtek Profile 12 Talk About No. of Connectivity 13 Intelligent & End to End Security Solution VISUALIZE DATA AND MONETIZE INSIGHT TURN DATA INTO INSIGHT CONNECT THINGS AND DEVICES INTELLIGENCE AT THE EDGE How to Get Started for IoT Define What You’d Like to Learn From Sensors Build an IoT Network and Security Foundation Convert Devices and Controllers To Be As IPbased Equipment Establish Vertical Ecosystems With Allied Partners Collect data As Much As Possible, Convert Them To The Value Information 2015 Axiomtek Profile 15 Challenges That Could Slow IoT Grow Security & Privacy Diversified Vertical Markets and Industries IT/OT & Control/Data Integration Legacy Infrastructure Standards & Regulation 2015 Axiomtek Profile 16 Industrial 4.0 From Industry 1.0 to Industry 4.0: Towards the 4th Industrial Revolution Industry is on the threshold of the fourth industrial revolution. Driven by the Internet, the real and virtual worlds are growing closer and closer together to form the Internet of Things. 4. Industrial Revolution based on Cyber-Physical production systems Industry 4.0 though introduction of electronics and IT for a further automation of production Industry 3.0 2. Industrial Revolution 1784 first mechanical loom though introduction of mass production based on the division of labor powered by electrical energy Industry 2.0 1. Industrial Revolution though introduction of mechanical production facilities powered by water and steam End of 18th Century Industry 1.0 Start of 20th Century Start of 70ies Today Degree of Complexity 3. Industrial Revolution Industrial Automation Coverage Industrial Controller Drives Machinery Industrial Connectivity Connectivity Automation Movement Software Controller (CNC, GMC) Feedback Systems 2015 Axiomtek Profile 18 Industrial Controller Coverage IPC DCS PLC/PAC Industrial Controller HMI RTU Embedded IoT Controller 2015 Axiomtek Profile 19 M2M for Industrial Automation Control units RTUs, PLCs, DCSs, HMI Applications ERP, PLM, MES, MRP, SCADA, web portal Field devices Actuators, valves, sensors, relays, switches, machines, robots Application interface XML, SOAP Network devices Routers, gateways, modems Data integration SCADA protocols, fieldbus, TCP/IP, serial Backoffice Segment Data gateway/storage WWAN/WLAN/WPAN Wi-Fi, Cellular, Wireless Hart, ISA100, Zigbee, Bluetooth Network Segment Facilities segment 2015 Axiomtek Profile 20 Framework of Industrial Automation Factory SCADA, MES Process SCADA, Data collection and control system Device Field 2015 Axiomtek Profile IPC IPC IPC, PLC, HMI PLC, RTU, DCS Sensor, Actuator, open loop controller, valve Increasing number of devices Enterprise MES, MRP, PLM Data capture system Devices Supervisor Increasing amount of data ERP, PLM Level Control System 21 Connected World thru IoT Smart Cities Connected Communities Smart Planet Smart Energy Green Environment Electric Grid Future Internet Smart Buildings Smart Transport Buildings, Smart Homes Internet of Things Smart Living Smart Industry Industrial Environments ITS, HEVs, EVs Entertaining, Leisure Smart Health Healthcare System 2015 Axiomtek Profile 22 What We are Working for IoT Platforms Industrial Automation EtherCAT Solution for Motion Control PoE Solution for Vision Inspection Integrated More IO for Remote Monitoring and Diagnosis Transportation Segmented More Domains with Specific Feature Wireless Gateway and Router PoE Solution for IP Surveillance EN50155, e-Mark, IEC60945, etc. 2015 Axiomtek Profile Energy & Utility Outdoor and Heavyduty Features Wireless Gateway and Router Isolated IO and Serial Ports IEC61850, 1588, ATEX (EU), C1D2 (US), etc. 23 What We Are Working on Embedded Board Design-in for IoT X86 Sector RISC Sector Aggressive on earlier access for EMB Focus on M2M gateway platforms Complete SOM platforms, ZIO and MiniPCIe modules Standardized module with open source platforms to support makers business Leverage China partners to cost down IMB series Promote ATP to increase design-in opportunities Developing DAQ for RTU series Leverage EBM ATP (Axiomtek Technical Portal) AXView 2.0 Remote Management Solutions (Firewall & Gateway) 2015 Axiomtek Profile 24 Product & Market Axiomtek IoT Architecture 2015 Axiomtek Profile 25 Axiomtek IoT & M2M Solution Devices & Process Gateway & Firewall Industrial Networking Software Transportation Solution: Railway, IVI, Marine Industrial Gateway Industrial Ethernet Switch Intelligent Management Solution (AXView) Smart Energy Solution Industrial Firewall Ethernet Extender SCADA EtherCAT Master Controller WWAN, WLAN Media Converter WLAN, WPAN 2015 Axiomtek Profile 26 Thank You 2015 Axiomtek Profile 27