1. 西柏科技股份有限公司 Institutional Investors Conference report Date:2014.11

2. Outline 1.Company Introduction.......................................... 1 2.Major product introduction................................... 4 3.Marketing strategy................................................ 15 4.Financial results..................................................... 20 5.R&D department manpower………………………..24 6.New products introduction.................................... 25

3. Basic information 2 ● Founded Date:Jan 21,1991 ● Chairman Chuan-ping Yang ● General managerCheng-yi Tsai ● Authorized Capital NT 386,045,920 ● Employees Hired280 (Until SEP,2014) ● Certification ISO 9001 / ISO 14001 ● Company character:Own Design, produce ● Business Model: own-brand 、 OEM 、 ODM ● Major Products: Professional smart AV Products, Professional smart Monitors.

4. History Of Cypress Technology 3 Jan,1991 Company founded date, Authorized Capital:NT1,000,000 ISO 9001 Certified. ISO 14001 Certified. Listed on Emerging Market. (Stock no : 3541) Listed on OTC Market. Invest CYP(UK)&Lektropacks-both 49% shares(for promoting European market.) Establish Payroll Committee(for corporate governance purpose) Feb,2005 Mar,2006 May,2007 Dec,2009 Feb,2011 Dec,2011 Jul,2014 Invest CYP(UK),Lektropacks-51% shares and CYP(Europe)-100%shares,the three above became subsidiaries

5. Organization chart Chairman Chuan Ping Yang Spokes person Fred Tseng Board of directors General Manager Cheng-yi Tsai Research & Develoment Vice President Jones Hsu(97) Factory Chief Bao-chuan Chen(90) Quality & reliability Management Director Wu(19) Sales Vice President FrankChye (30) Purchasing Director Leu (21) Administration CFO King Wang (28) Internal Auditor Marie Cheng 4

6. 2.Major product introduction 5 ● Major product introduction

7. ProfessionalAVproducts(1): HD-BASET PRODUCTS ● The cornerstone of HDBaseT technology is 5Play™, a feature set that converges uncompressed full HD digital video, audio, 100BaseT Ethernet, power over cable and various control signals through a single LAN cable. 7

8. HD-BASET SERIES- TX,RX,MATRIX CH,507TX,RX(WALL PLATE) CH506TX,RX MATRIX

9. Application(1) 11 PLAY STATION 3 HDMI RS-232 2 WAY IR PoE HDMI HD TV

10. HD-BASET Application(2)

11. Professional AV products(2): HDMI / DVI series ● Splitter: It allows one HDMI source to connect up to many HDMI displays simultaneously. ● Switcher: This is a high performance multiple-input &one-output High- Definition Multimedia Interface ● Equalizer:a high performance cable equalizer allows HDMI/DVI cable to run up a long distance ● Matrix: Upgraded items with multichannel digital audio from up to many high definition sources to up to eight HDMI outputs and allowing any source to be independently displayed on any monitor

12. Professional AV products(3): scaler series The Multi-Format to HDMI Scaler is designed to upscale digital/analog video signals from Composite, S-Video, PC, Component (HD) and HDMI input sources, to digital HDMI output of a wide range of HDTV and PC resolutions including 1080p and WUXGA (1920 x 1200). (upscaler) The HDMI to CV/S-Video Converter is designed to convert the digital signal from HDMI (or DVI) source to analog signal of NTSC or PAL system, with L/R stereo audio.(downscaler) Multiple scaler Multiple scaler Pc to HDMI Scaler HDMI to SV downscaler

13. Professional AV products(4): Extender series The CH-1507 transmitter and receiver set can send uncompressed audio/video and IP data over a single run of CAT5e/6/7 cable at a distance up to 100 meters. It has the added benefit of control through the built-in RS- 232 and IR ports and an LAN serving connection

14. Professional AV products(5): DCT series The Stereo Analog to Dual Outputs Digital Converter (ADC) is designed to convert analog stereo audio to Coaxial and TOSLINK Optical digital outputs

15. DCT Application Outdoor stereo system it provides high quality sound conversion. The Dolby Digital Decoder function guarantees that Dolby Digital audio signals are downmixed to analog stereo without loss of quality.

16. Professional Smart monitor-TV wall

17. 3.Marketing strategy ●●●●●● Latest attending exhibitions Website updated Investment company-CYP(UK) marketing in Europe with own-brand “” 12

18. Attending Exhibitions summary 13 ●●●●●●●●●●●●●● International CES SHOW(U.S.A) Computex Taipei(R.O.C) HDCP plugging test committee(U.S.A) Hongkong Electronics Fair(Autumn edition) CCBN in Beijing, China Shanghai Digital signage show ISE-Amsterdam,Holland (CYP(UK) attends only )

19. 14

20. Website:www.cypress.com.tw 15

21. Showroom-Cyp(uk)

22. 4.Financial results 16 ●●●●●● Profit & Loss analysis Major products sales analysis Major sales Region analysis

23. Profit&lossanalysis(2009~2014) In Thousands of New Taiwan Dollars, Except Earnings Per Share,2014(1-9) is compared with 2013(1-9) 17 Items200920102011201220132014 (1~9) Revenue 724,955823,028876,6361,013,4091,080,4581,123,297 Margin 218,198290,835307,843341,265358,262422,460 Operating income 76,458138,349130,942128,035123,881222,688 Net income 64,734116,295118,455100,342106,589208,625 EPS(NT dollars) 1.903.063.272.692.785.47 Revenue growth ratio - 13.53%6.51%15.60%6.62%45.46% R.O.E 14.88%22.38%20.72%16.74%16.98%-

24. Major product sales analysis NT thousand dollars 18 Items2011201220132014(1~9) Professional smart AV Products 793,684919,3671,034,5261,089,693 LCD TV mainboard 9,14916,69500 Professional smart Monitors 31,03120,1608,3644,783 others 42,77257,48937,56830,991

25. SalesRegion analysis 19 thousand dollars REGION 2011201220132014(1~9) amount% % % % Domestic sales123,48014.08%127,19812.55%75,6937.01%58,0265.16% Asia55,5116.33%63,1546.23%60,5085.60%48,3284.29% Europe209,78423.93%299,90529.58%267,95124.82%252,08122.40% America469,92553.61%510,39550.35%658,48360.99%750,24566.66% Others17,9362.05%13,0591.29%17,0861.58%16,7871.49%

26. 5.R&D department manpower ApplicationNumber Firmware Engineer30 Hardware Engineer27 Layout7 System Integrator9 Industrial Design & Mechanical Engineers7 Safety Engineers2 Design QA Engineers6 PM & Sustain9 Total97

27. 6.New products introduction 20 ●●●● New product introduction Applications Description

28. (1)AV CENTER FOR MOVIE THEATER 21

29. AV center application PROJECTOR AV CENTER(CYP) MAIN SPEAKERAmplifier 22

30. (2)4k2k Products 1×16 HDMI 4K2K Splitter 4×4 HDMI 4K2K Matrix Switch and route any multiple HDMI sources to any multiple connected HDMI displays, supporting resolutions up to 4K2K.

31. (3)HDMI modularized matrix The 32 by 32 Modularized Matrix provides a professional way to route up to 32 sources to 32 displays over different formats, currently it supports inputs of HDMI, DVI-D and VGA, and outputs of HDMI, DVI-D and HDBaseT™ of different specs

32. (4)Demopad control system The CENTRO 8 controller is enabling an installer to create customised commercial or residential control systems. Utilising advanced embedded software, and programmable using DemoPad Designer Software, the CENTRO 8 processor is the heart of your control system providing complete control over automated and manual control functions.

33. IR Applications-Smart residence 30

34. 31 AV PRODUCTS MARKET SIZE FORCAST The new 2014 Global AV Market Definition and Strategy Study (MDSS) is projecting that audiovisual products and services will become a $116 billion global industry by 2016 Data source :Informn International association

35. CYP Ideas for Video 西柏科技股份有限公司