VIA TECHNOLOGIES,INC 3Q2020 Business Review
2020/12/04 Safe Harbor Notice
VIA’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward- looking statements.
Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future evens, or otherwise.
VIA Confidential and Proprietary Agenda
1.VIA Company profile 2.VIA Business update 3.Recap of Recent Major Events 4.VIA Embedded Business update 5.VIA Labs Inc. Product Introduction 6.Q&A
VIA Confidential and Proprietary Company profile • Name of Company：VIA TECHNOLOGIES, INC • Date of Incorporation:：11th September ,1992 • Public Listing date：March 1999 • Company address：8F, 533, Chung-Cheng Road, Hsin-Tien, Taipei 231, Taiwan • Amount of Capital：NT$4.933 billion • Number of employees worldwide：1500 • Scope of Business ： Mainly for integrated circuit chip design, research, development, manufacturing and sales, but also the world's leading manufacturer of highly integrated embedded platform 、hardware and software system solutions, and committed to IoT, M2M, machine learning and other fields of application development. In recent years, we have more specialized in artificial intelligence, edge computing, intelligent image recognition and other big data software development, applications include advanced driving assistance systems, vehicle ring-view stitching navigation, license plate identification system, face recognition, retail new marketing, intelligent building and intelligent medical services management etc..
VIA Confidential and Proprietary VIA Business update VIA Business update 3Q2020 P&L (CONSOLIDATED)
In NT Millions 3Q20 2Q20 QoQ% 3Q19 YoY% Net Sales 1,723 1,509 14% 1,401 23% Cost of Sales (1,153) (995) 16% (928) 24% Gross Profit 570 514 11% 473 21% Operating Expenses (546) (611) -11% (643) -15% Operating Income 24 (97) -125% (170) -114% Non-operating Items (25) 26 -196% 213 -112% Income Before Tax (1) (71) -99% 43 -102% Income Tax (9) (7) 29% (13) -31% Net Income (loss) (10) (78) -87% 30 -133% Minority Interest 31 31 0% 15 107% Net Income(attributable to the parent)(41) (109) -62% 15 -373% EPS (0.08) (0.22) 0.03 VIA Confidential and Proprietary VIA Business update 1Q-3Q2020 P&L (CONSOLIDATED)
In NT Millions 1Q-3Q20 1Q-3Q19 YoY% Net Sales 4,749 4,119 15% Cost of Sales (3,123) (2,771) 13% Gross Profit 1,626 1,348 21% Operating Expenses (1,760) (1,932) -9% Operating Income (134) (584) -77% Non-operating Items 105 675 -84% Income Before Tax (29) 91 -132% Income Tax (28) (24) 17% Net Income (loss) (57) 67 -185% Minority Interest 88 30 193% Net Income(attributable to the parent) (145) 37 -492% EPS (0.29) 0.08
VIA Confidential and Proprietary VIA Business update Sales % by product in the first three quarters for 2020 and 2019
2020 Q1-Q3 2019 Q1-Q3 Others Others 4% 3%
USB Chip 30% USB Chip CPU Platform CPU Platform 28% 48% 45%
Embedded Embedded 21% 21%
VIA Confidential and Proprietary Recap of Recent Major Events 1.Certain intangible assets related to chipset products held by VIA and its subsidiaries VIATECH CO.LTD. and VIABASE CO. LTD. were sold at total transaction amount US$138,974 thousand in October. 2020. After eliminating unrealized gains based on the shareholding ratio 14.75%, the estimated after tax profit of the disposition is approx. US$106,628 thousand. The profit of this disposition is expected to be recognized after the payment is received within next year. Above figures are the company's self-assessed. The actual figures are subject to the financial report audited by CPA.
2.Certain intangible assets related to cpu products held by VIA's subsidiary, VIABASE CO., LTD., were sold at total transaction amount US$118,418 thousand in October. 2020.After eliminating unrealized gains based on the shareholding ratio 14.75%, the estimated after tax profit of the disposition is approx. US$90,856 thousand. The profit of this disposition is expected to be recognized after the payment is received within next year. Above figures are the company's self-assessed. The actual figures are subject to the financial report audited by CPA.
3.VIA Labs Inc. (stock code: 6756), a VIA’s subsidiary, has successfully obtained the TWSE approval for stock listing. Stock bidding will start on the 4th Dec., and it is expected to be listed in late December. VLI was established in 2008 and its main product line is control chips for USB high-speed transmission, Type-C and USB PD related technologies. The current capital is NTD600 million, and VIA holds 66.33%.
VIA Confidential and Proprietary VIA Embedded Business Update Investors Meeting Dec, 2020 VIA’s Transformation in the Age of AI
Embedded IC Design AI Solution Systems
VIA Confidential and Proprietary Race to autonomy The Next Major Computation Market
On-the-road Next-generation New-build
MAAS Vehicle Safety 90 Million Per Year
Integration Upgrade Experimentation
VIA Confidential and Proprietary On-the-road vehicle upgrades Making existing vehicles smarter and safer
Passenger Commercial & Public
1.1 billion+ 200 million+
VIA Confidential and Proprietary Market Forces Driving Changes Enhanced Safety & Efficiency
Taxis & Ride g Government Safety & New Models Regulations Insurance Emerging
VIA Confidential and Proprietary From Embedded to Automotive AI Why VIA is focusing on this market (1)
Huge Market that is going digital Annual new vehicles roughly 90Mil cars, already 1.1Billon on the road (20% commercial vehicles)
Good use of VIA’s Stregnths Industrial grade hardware+software Computer vision and sensor fusion Cloud to edge optimization for AI
Actual customer projects and market feedback
VIA Confidential and Proprietary Paradigm Shift of the Automotive Industry Why VIA is focusing on this market (2)
Source：What does the future of automotive market hold? “2016 Presentation Yole Developpement at CAR-ELE Japan Tokyo
VIA Confidential and Proprietary On-Road Vehicle Upgrades After-Market Opportunity
Huge Market Going Digital
1.1Billon already on the road (20% commercial vehicles)
North America and Europe make up the largest part of the global automotive aftermarket
“We expect the aftermarket to increase to ~EUR 1.2 Trillion by 2030”
VIA Confidential and Proprietary From Protection to Prevention More Eyes on the Road
Taxis & Ride g
Current Market Solutions New Market Requirements Electronic Logging Devices / Video evidence + Safety Black Boxes Alerts + AI Features
VIA Confidential and Proprietary VIA’s Competitive Advantages
Edge AI Systems Home-Grown AI Cloud Design & Sensor Fusion Management
System design for Cameras, radar, With all major industrial-grade quality ultrasound, lidar, etc enterprise clouds
VIA Confidential and Proprietary “Safety” in the Process ISO 26262 Certification
Covers VIA’s complete product development and operations process
Highest Level (ASIL-D) for automotive grade
VIA Confidential and Proprietary On-Road Vehicle Upgrades Taxis, Trucks, Buses & Commercial Fleets
Taxis & Ride g
Taxis & Ride Sharing Commercial Fleets Delivery & Logistics Bus & Coaches Industrial Vehicles
Taxis & Ride g Taxis & Ride g
Mobile360 D700 Series Mobile360 M800 Series Mobile360 D700 AI Dashcam Ready to Sample Solution – Cloud and Carrier certification
VIA Fleet - AWS Cloud Trial • 30 day trial • Unlimited tracking and Collision alert videos • 50 hours KVS streaming
VIA Confidential and Proprietary VIA Fleet Portal Safety Optimization
VIA Confidential and Proprietary VIA AI D700 Dash Cam and Cloud Portal AI Integration Benefit
Reduce operation cost Real-time accident report Efficient Route Planning Improve driver behavior With more intelligent data collection, analysis and insights to improve the efficiency of fleet management.
VIA Confidential and Proprietary VIA AI D700 Dash Cam/ Cloud Portal Simplify insurance claims and evidence search procedures
Accelerate the development of novel new applications and services for the insurance industry
VIA Confidential and Proprietary Japan Market Taxi Project Video Reporting AI integration and big data application
VIA Confidential and Proprietary Vehicle Safety System Huge opportunities across multi-markets
VIA Confidential and Proprietary New Infrastructure Plan
New ▶ New Infrastructure Plan ▶ Traditional infrastructure Infrastruc-ture Speed up Internet, Cloud, Digitalized upgrade Edge
Big Data Center New Energy Industrial Internet 交通 AI 能源 City Highway Internet 水利 UHV Cloud 市政 5G infrastructure Edge
VIA Confidential and Proprietary The China Industrial Vehicle Market Momentum – The Macro Policies Opportunities Target Application
The 14th Five Year Plan New Infrastructure Industrial Vehicle Forklift Safety (十四五 2021-2025) Plan (Forklift)
Transportation Safety Standardization Safety Monitoring GDP Growth Smart City GB/T 38893-2020 D-MOD Employment Rate Energy/Utility Approved in June ’20 Driver Monitoring Basic Livelihood Communication Announced in Dec ’20 Speed, Seatbelt, etc.
Construction / Heavy Technologies Mining Machinery Safety
IoT, AI, 5G, Data Center Transportation Safety Remote Control Cloud Computing, Work Area Safety Surround View Industrial Internet, Data Analytics D-MOD Automation, Robot Remote Management Asset Management Why Now?
In addition to doubling down on its Made in China 2025 and China Standards 2035 initiatives, it would spend approximately US$1.4 trillion on a digital infrastructure public spending program.
VIA Confidential and Proprietary China 28% 國三退場、10年汰舊
In 2019, a total of 1,493,271 forklifts were sold All kinds of lifting machinery products began to worldwide, up 0.25% year on year, including recover in 2017, and a large number of lifting machinery sold in 2008-2011 is expected to enter the 608,341 ones or 40.7% sold in China. peak period of upgrading around 2020.
The global forklift truck market size was valued The truck crane market presents a "three pillars" at $45.01 billion in 2019 and is projected to pattern. Xu Zhong (a wholly-owned subsidiary of reach $81.40 billion by 2027, registering a Xugong Machinery), Zoomlion, and Sany Heavy CAGR of 7.3% from 2020 to 2027. Industry have a combined market share of over 90%, and the market concentration is relatively high. -Allied Market Research -2020-2026 China's crane industry development model analysis and investment development potential report VIA Confidential and Proprietary Safety Monitoring for Forklifts Installation & User Interface Smartphone Taxis & Ride Taxis & Ride Calibration g g
Taxis & Ride Taxis & Ride g g
Taxis & Ride Taxis & Ride g g
Taxis & Ride Taxis & Ride g g
VIA Confidential and Proprietary Mobile360 M500 AI Forklifts Safty Kits Display UI
Abnormal System Alert WIFI/4G ＷIFI Connect Status
Front Camera Rear Camera
Front People Alert Rear People Alert
No Belt Alert Fatigue driving alarm
Speed/Overspeed Alerm VIA Confidential and Proprietary Reach Crane
Crane 三一智礦
幸匯國創
Ｍinecart
VIA Confidential and Proprietary Smart Cities
VIA Confidential and Proprietary Smart Hosipital - Application Field
Emergency Clinic Medical Dashboard Patient Early Warning System It is more effective to Patient Exam Warning System query the integrated information of handover Patient Trends Collection System shift, the timeline of the patient's course, the T h e information status of patients in each dashboard specified district, the emergency for medical staff to team... and other clinical u n d e r s t a n d the medical information. patient status, easy checking, monitoring. Emergency Mobile Information App In addition to pre-filling emergency registration information, shortening the time for on-site inspection and Bedeside Terminal reporting, it also allows emergency p a t i e n t s to i n q u i r e a b ou t the To replace the traditional individual's current medical treatment paperwork and easy for status, inspection report progress, doctors/nurse/family waiting and bed waiting status in each easy to understand the area during the treatment period. current status of patients.
VIA Confidential and Proprietary Smart Hosipital - Application Field
Smart Calling System Self-service check in System Provide patients with self- The out-of-diagnosis billboard can service check-in and smart display the list of pre-scheduled d r e s s i n g information numbers in real time, so that d i s p l a y . Ａ l s o d i g i t a l patients can more clearly understand checklists, digital practice the waiting sequence. The operation licenses of radiologists, and in the clinic is based on the practical digital display functions of experience in the clinic, and provides the photo studio approved intelligent processing after the licenses, making more interface with HIS, so as to reduce p r o c e s s e s p a p e r l e s s . the burden of the nursing staff in the arrangement of p a t i e n t s . Smart Counter Shunting System for c ou n t er p er sonn el allows the number call o p e r a t i o n to p r o v i d e priority number allocation function, smart helper support function, and smart switch function of the number picking machine a cc or d in g to d em an d .
VIA Confidential and Proprietary Smart Hospita - Successful Cases
Emergency Mobile Emergency Information Bedside Terminal Information App System
Emergency Clinic Self-service checking shunting system Medical Dashboard
VIA Confidential and Proprietary Smart Hospita - Successful Cases En Chu Kong hospital Ministry of Health/Welfare Show Chwan Hualien Hospital Memorial Hospital
Taipei Veterans General China Medical University Hospital - Ilan Hospital-Hsin Chu Branch
VIA Confidential and Proprietary COMPANY PROFILE
39 Company Profile
Company name：威鋒電子股份有限公司
成立時間：July,2008
興櫃掛牌時間：Dec ,2019
公司地址：新北市新店區中正路529-1號7樓
Capital：NTD 600,000,000
全球員工人數：190人
主要產品：涵蓋USB高速傳輸、USB Type-C與USB PD相關技術 之控制晶片設計開發
母公司：威盛電子股份有限公司，持有66.33%
40 VIA Related Companies
宏達國際電子股份有限公 威盛電子股份有限公司 威鋒電子股份有限公司 司 Smart Phone, EXODUS, Smart Cities, SuperSpeed Plus USB 5G Hub, Video Wall, Audio Guide, 5Gbps / 10Gbps VIVE VR System Embedded Systems USB-C, USB PD & Power
41 Core Competitiveness
Participat e in Strong specificati R&D Team on Fast and developm Flexible ent backend Focus on support Specific Markets
42 Company Philosophy & Vision
【Company Philosophy】
Positive Innovati Disciplin Custom Integrity Attitude on e er Trust
【Company Vision】 Being a Global Leader in Mixed-Signal Centric Products from DC to Multi- Gigabit Applications
43 MARKET OVERVIEW PRODUCT INTRODUCTION
44 USB Specification Evolution
USB 3.X Name USB 1.1 USB 2.0 USB4 USB 3.0, USB 3.1, USB 3.2
Release Y1998 Y2000 Y2008 Y2013 Y2017 Y2019 Year
Marketing Low Speed High Speed SuperSpeed SuperSpeed+ SuperSpeed+ USB4 Name Full Speed
Transfer 1.5Mbps 480Mbps 5Gbps 10Gbps 20Gbps 40Gbps Rate 12Mbps
Power 500mA 500mA 900mA 900mA 1.5A 1.5A (PD: Max 100W)
Y2014：USB Implementers Forum launched innovative USB Type-C
45 USB-C (USB Type-C) Becomes Mainstream
USB-C has revolutionized USB. It improves upon traditional USB advantages of plug-and- play connectivity with a new sleeker and reversible form factor that provides a standards-based single-connector solution with support for fast charging, data transfers, and audio/video transmission. USB-C is now the gold standard for PC, mobile, and consumer electronic connectivity.
Data Video Power
46 Application Overview of Core Product Areas: SuperSpeed USB, USB Type-C, and USB PD
C
USB-C HDMI Multi-
Functio C
n USB Dock
PD
Data, Video and Power, All on Single USB-C
47 USB 3.2 v.s. USB4
USB 3.2 USB4
Bandwidth 20Gbps 40Gbps Focus on USB or USB4 tunneling protocol Protocol USB with DP Alt-Mode specification (USB/DP/PCIe) DP Alt-Mode or DP DP 1.4, DP Alt-Mode USB4 DP 1.4 Tunneling PCIe Unsupported PCIe 3.0 by USB4 Tunneling
TBT3 Unsupported Supported
Host-to-Host Unsupported Supported
48 Y2020 USB4 Controller
Apple M1 Intel Tiger Lake
49 Major Product Applications
VLI’s products cover a broad range from host to peripheral devices and everything in between. With continued development, USB-C will become more technically capable, enabling more and more future applications.
50 Market Prospect
USB-C Shipment
2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0 2019 2020 2021 2022 2023 2024 Switch Shipment 15.0 18.0 16.0 14.0 11.0 8.0 Unit: M PS5 Shipment 0.0 3.4 11.4 13.9 16.0 15.2 VR w/ USB-C 9.9 14.3 25.8 36.3 64.7 98.5 Monitor w/ USB-C 3.0 7.5 22.3 44.1 72.3 114.2 TV w/ USB-C 2.2 4.4 11.1 33.8 90.7 161.6 NB w/ USB-C 112.9 120.6 124.2 127.4 131.7 141.1 phone w/ USB-C 403.5 701.0 955.5 1,140.0 1,335.4 1,541.9 All 546.5 869.3 1,166.3 1,409.5 1,721.7 2,080.3
Source：Reference to DIGITIMES Research and IHS Markit Research
51 Application Example (I)
52 Application Example (II)
53 Application Example (III)
54 Current customers
55 COMPETITIVE ADVANTAGES & FUTURE PROSPECTS
56 Competitive Advantages
• VLI has a proven record of being • Rich Industry Experience first to certification and first to across various domains i.e. market with products based on the latest USB specifications. Digital logic design; • Numerous generations of Software / Firmware backwards compatibility and design; Analog design & First- interoperability experience System design Outstand continuously raise the entry Mover barrier for new competitors ing R&D Advanta Team ge
Comprehensiv Success in
• Bringing new concepts and e Products Mass • Proactive customer USB Technologies to market Solutions Production assistance and optimized • Application-specific design offers reference designs enable Experience new customers to quickly unique and highly integrated go to market. best-of-segment solutions • VLI takes cost and user • Proactive product management experience into allows VLI to anticipate and meet considerations to deliver mew market trends and needs. WIN-WIN solutions
57 6756.TW For more information about VLI: VIA Labs, Inc.
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