Microcontrollers Global Top Smart MCU Innovator 2017 Company

Microcontrollers Global Top Smart MCU Innovator 2017 Company Profile June 2017

Table of Contents 01 MCU 02 Business 03 Vision 04 Introduction Product Portfolio ABOV Business Area MCU Global Market ABOV Management Market Segmentation Sales Category Future Opportunity Foundation Leading Products & References ABOV Sales in China Vision Organization New Products Growth and Margin Expansion Annual Sales Record ABOV Network Core Competency

01 MCU • • Product Portfolio Market Segmentation ABOV Leading Products New Products

Product Portfolio GP MCU § Memory Type • Flash MCU • OTP MCU AS MCU § Remote Controller • Single, Universal, LCD, IR blaster § Sensor • Touch Key, Light Sensor § Core Type • 32 -bit • 8 -bit • 4 -bit § Multimedia • 3 D Glasses • LED BLU (Back Light Unit) • Voice § Motor § Custom Solution • 12 V MCU • PPG MCU • Inverter Motor § Battery Management • Battery Charger • Power Bank • Smart Battery System ASIC § Peripherals • Segment LED/LCD/VFD Driver IC • I/O Expander § LED Lighting • AC Direct LED Driver § Audio Solution • PWM Processor • Audio So. C • Digital Class-D Amplifier

MCU Market Segmentation Consumer Automotive 1) Remote Controller Small home application Mobile / PC Motor Controller Medical / Healthcare 2) 1) Head/Rear Lamp, Day Light, Door Lock 2) Outside Mirror Folding, Power Window Infotainment/HVAC Industrial Energy White goods TV STB Building , Factory automation, High-speed railway train

ABOV Leading Products Remote Controller MCU Touch Key MCU Battery Charger Mobile IR Blaster MCU Integrated Platform for White Goods Power Bank MCU Back Light Unit MCU Ambient Light Sensor

ABOV Leading Products – (1/3) 6 kkpcs/y Washing Machine Air-Conditioner(Indoor) AC 33 GC 256 Main AC 33 GC 256 Inverter AC 33 C 6064 (Main Controller) Core: Cortex-M 3 (32 -bit) Flash: 256 KB SRAM 24 KB PKG: MQFP-100 2. 5 kkpcs/y AC 33 C 6064 (Inverter Motor Controller) Core: Cortex-M 3 (32 -bit) Flash: 64 KB SRAM 12 KB PKG: LQFP-64 Refrigerator Main AC 33 GC 256 Inverter AC 33 C 6064 Air-Conditioner(Outdoor) Main AC 33 GC 256 FAN AC 33 C 6064 Inverter Control AC 33 GC 256 Inverter AC 33 C 6064

ABOV Leading Products – (2/3) PHILIPS ODM/OEM MC 97 F 1104 MC 96 F 1608 MC 96 F 8316 MC 96 F 6432 MC 96 FT 242 MC 96 F 8208 MC 81 F 8816 MC 96 F 4548 MC 96 F 6332 MC 96 F 7864 PHILIPS ODM/OEM MC 96 F 6432 MC 96 F 8316 MC 96 F 8208 MC 96 F 6432 MC 97 F 1204 MC 96 F 8208 S MC 96 F 7616 A A 31 G 112 MC 81 F 4204 MC 80 F 1604 MC 80 F 0504 MC 81 F 4104

ABOV Leading Products – (3/3) Rice Cooker IH Cooker CUCKOO MC 96 F 8316 MC 80 F 1604 MC 81 F 6204 MC 96 F 8204 AC 33 M 4064 MC 96 F 6432 MC 96 F 8316 MC 96 FT 242 Refrigerator A 33 G 257 A 33 G 256 Inverter AC 33 M 4064 Inverter AC 33 M 6128 Air-Conditioner (Outdoor) MC 96 F 643 MC 96 F 8316 MC 96 F 7864 Microwave Oven

New Products Bluetooth Low Energy • • • RF Remote Controller Wearable Device Beacon Payment LED Lighting Control(MESH) USB Type-C PD MCU • Laptop/Laptop Adapter • Power Bank • Monitor/TV Class-D Audio AMP(30 W) Automotive MCU • TV • Soundbar • Wireless Speaker • Parking Assist System • General Purpose TA(Travel Adapter) IC Wireless Charger IC • Smartphone • Small Home Appliances 13

02 Business • • ABOV Business Area Sales Category ABOV Sales in China Growth and Margin Expansion

ABOV Business Area Domestic 2016 Actual Sales KRW 103 bn / U$89 m Global CUCKOO Application Region Total ≒ 600 Customers ≒ 200 Customers ≒ 400 Customers

Sales Category AS MCU GP MCU 100% 90% 16, 259 80% 4, 424 Peripheral IC 664 Audio Other 8, 568 2, 958 5, 182 1, 979 70% 50, 287 60% 56, 478 40, 748 40% 30% 20% 10% 27, 108 34, 818 33, 930 2015 2016 0% 2014 구분 2014 2015 2016 AS MCU 27, 108 34, 818 33, 930 GP MCU 40, 748 50, 287 56, 478 4, 424 5, 182 1, 979 Audio - 2, 958 2, 246 Other 16, 259 664 8, 568 88, 539 93, 909 103, 201 Peripheral IC 합계 (Unit: m. KRW) 2, 246

ABOV Sales In China (K$) (EA) 35, 000 400 30, 000 25, 000 350 300 250 20, 000 200 15, 000 150 10, 000 5, 000 0 Year 100 50 0

Growth and Margin Expansion Revenue Growth and Margin Improvement (Unit: KRW 100 M) ABOV Revenue Gross margin ABOV H. K Revenue Operation margin R&D Cost Investment

03 Vision • MCU Global Market • Future Opportunity • Vision

MCU Global Market APAC Market (Unit: $bn) Others, $0. 97, 10% EMEA, $4. 07, 25% Americas, $2. 81, 17% (Unit: $bn) Korea, $1. 00, 10% APAC, $9. 45, 58% China, $3. 90, 39% Japan, $2. 13, 21% Taiwan, $1. 93, 19% (Source: IHS 2015)

Future Opportunities I : SMART-MCU RF Sensor and Algorithm merged into a Smart MCU for upcoming Io. T market Present MCU Future Smart MCU • Internal applications control Memory • RF functions synchronized to connected applications CPU Memory Manufacturing Process CPU Bluetooth Algorithm Sensor In/Out S/W 1. RF (BLE, Wi. Fi, Zig. Bee, etc) 2. Protocol stack 3. MCU 21 Cloud

Future Opportunities II: SMART Home Application Smart Home applications will be the core growth engine for Io. T Wireless Communications, Sensors, Precise Control Devices will be the big growth engine SMART HOME MARKET 1) (Unit: $100 M) R/F Sensor Control Adm. 520 CAGR 25% 1, 407 CAGR 6% Smart Home Smart Grid Smart Education 172 Smart Home Smart Appliance Entertainment Automotive Healthcare 1, 073 Smart Car 2013 22 1) Deloitte Analysis (2013), i. Suppli (2013) 2018

Vision Global TOP Smart MCU Innovator Growth Automotive Industrial Io. T MCU Smartphone Measuring Instrument Medical Devices Large Home Appliances (32 bit) LED Tap driver Remote controller Battery Charger (BTC) Small Home Appliances 8 -bit 2006 2014 2015 Future

04 Corporate Overview • • • ABOV Management Foundation Organization Annual Sales Record ABOV Network Core Competency

ABOV Management Name Career - Korea Aerospace Univ. Telecommunication Engineering CEO Choi, Won - LG Electronics MCU Sales Team Leader - Green. Chips, CEO - ABOV Semiconductor, CEO - Yonsei Univ. CFO Kim, Yeong Jin - CPA - KPMG - ABOV Semiconductor, CFO - Yonsei Univ. Electronic Engineering R&D Chae, Jae Ho - Hynix Semiconductor, Director - Dongbu Hitek, Executive Vice President - ABOV Semiconductor, Executive Vice President - In. Ha Univ. Industrial & Management Engineering ABOV H. K Choi, Jae Kyung - Greentech (Shanghai), Director - ABOV Semiconductor, Managing Director

Foundation More than 25 years of accumulated R&D experience for MCUs 2006년 1월 11일 “ 2012, Hidden Champion” “ 2014, World Class 300”

Organization R&D Focused (>50 %) CEO Management Support Team ACT R&D Unit Confidential HIT R&D Unit IP Group ABOV HK Domestic Sales, Global Sales Manufacturing

Annual Sales Record Major Products CAGR Compound Annual Growth Rate : ≈ 14 % Remote Controller MCU 170, 000 units/year Touch Key Sensor MCU 90, 000 units/year LED BLU MCU Power Bank MCU 50, 000 units/year 32 -bit MCU 10, 000 units/year Microwave Oven MCU 10, 000 units/year Year 5, 000 units/year 2016 89. 0 2015 83. 5 2014 87. 5 2013 80. 4 2012 72. 9 2011 Etachips Acquisition 61. 5 2010 50. 6 2009 Global Economic Recession 35. 1 2008 36. 5 2007 28. 2 0 20 40 60 80 100 [$ million] Wide range of products and mass-production capability OVER Confidential 533, 000 Shipped Annually

ABOV Network Germany Krefeld Kriftel Mexico Korea Seoul Ochang India Guadalajara Japan New Delhi Osaka Tokyo China Brazil São Paulo Shenzhen Hong Kong Shanghai Shunde Australia Subiaco Taiwan Taipei Singapore R&D Entity Test House Sales Office Sales Agency Confidential