Andes Technology Corporation 2017 Investor Conference … >204 license agreements signed ... Fingerprint Recognition • Touch Screen • eBook/eDictionary • Power management

WWW.ANDESTECH.COM

Driving InnovationsTM

Stock #: 6533 2018/03/26

Andes Technology Corporation 2017 Investor Conference Report

Confidential Driving InnovationsTM

2

Safe Harbor Notice

Except for the historical information contained herein, the matters addressed in this presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially, including but not limited to weather, impact of competitive products and pricing, industry-wide shifts in the supply and demand for semiconductor products, rapid technology change, semiconductor industry cycle, and general economic conditions. Except as required by law, Andes undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Agenda

Overview of Andes Technology Corporation Operating Results Product Application New Products and Ecosystems Concluding Remarks

Driving Innovations™ 3

Overview of Andes Technology Corporation

• Founded in March 2005 in Hsinchu Science Park, Taiwan, ROC. • Core RD team from AMD, DEC, Intel, MIPS, nVidia, and Sun veterans. • Just over 140 people; 80% are engineers. • EETimes' Silicon 60 Hot Startups to Watch (2012) • TSMC OIP Award “Partner of the Year” for New IP (2015) • A founding member of RISC-V Foundation (2016) • IPO on Taiwan Stock Exchange (March 2017)

Andes Highlights

• Innovate performance-efficient processor solution for low-power SoC Andes Mission

• Smart and Green electronic devices • Cloud Computing, Artificial Intelligence and Internet

of Things

Emerging Opportunities

Operating Results

5 Driving Innovations™


6

>145 commercial licensees Geographically distributed in Taiwan,

China, Korea, Japan, Europe, and USA. >204 license agreements signed

AndeSight™ IDE: >11,000 installations

Eco-system: >120 partners

2.5B Accumulative SoC Shipped: (by 2017 end)

Business Status Overview

Andes-Embedded SoC

Design Service / Foundries

Miscellaneous

目目目目目目目目目目

Development Environment

IP / EDA




http://www.globalunichip.com/index.php


7

Agreement Growth Analysis

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017IP Agreements 1 2 3 6 12 16 16 24 27 27 31 39Accumulated IP Agreements 1 3 6 12 24 40 56 80 107 134 165 204

0

50

100

150

200

250


8

2017 Revenue Analysis

0

50,000

100,000

150,000

200,000

250,000

300,000

2016 2017Revenue 208,635 289,377

(NT$

thou

sand

s)

Up 38.70%


9

2017 Top 10 Customers Analysis by Revenue

-

5,000

10,000

15,000

20,000

25,000

30,000

Revenue (NT$ thousands)

47% 53%

Top 10 Customer Contributed 53% Revenue


10

Royalty & Contributors Analysis (NT$ thousands)

2011 2012 2013 2014 2015 2016 2017

Royalty 445 660 1,285 10,81912,23213,32038,287Customer numbers 1 2 5 9 15 15 25

1 2

5

9

15 15

25

0

5

10

15

20

25

30

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000


11

-

500

1,000

1,500

2,000

2,500

20162017

2016 2017Annual Shipment 430 590Accumulated Shipment 1,910 2,500

Total Customers Annual and Accumulated Shipment

(Unit: M ps)


12

Royalty Analysis

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2016 2017Royalty 13,320 38,287

(NT$ thousands)

Up 187%


13

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2017 Top Ten Royalty Contributors Analysis by Application

(NT$ thousands)

3%

97%

Top 10 Royalty Customers Contribution: 97%


14

Consolidated Gross Margin

(NT$ thousands)

2016 2017Gross Profit 207,599 288,437Gross Margin 99.50% 99.68%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000


15

Consolidated Operating Expenses

261,545 245,107

YoY +6.71%

(NT$ thousands)

75,766 95,059

45,199 58,416

124,142 108,070

-

50,000

100,000

150,000

200,000

250,000

300,000

2016 2017

Selling expenses Administration expenses R&D expenses


16

Consolidated Operating Income

YoY -％; +64,400千元

(NT$ thousands)

(37,508) 26,892

(40,000)

(20,000)

0

20,000

40,000

2016 2017


17

Consolidated Operating Margin YoY

+ 27.27pt

-17.98%

9.29%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

2016 2017


18

Consolidated Operating Income

YoY -%; +53,394千元

(NT$ thousands)

(31,861)

21,533

(40,000)

(30,000)

(20,000)

(10,000)

0

10,000

20,000

30,000

2016 2017


19

Consolidated Net Profit Margin YoY

+ 22.71 pt

-15.27%

7.44%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

2016 2017


20

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

2016 2017EPS -0.86 0.54

NT$

dol

lar

Consolidated Earnings Per Share


21

Revenue Analysis by Payment Model

83%

13% 4%

(2017/01-12 New Agreements: 39) License Royalty Maintenance and others


22

Revenue Analysis by Region

47%

25%

16%

12% Taiwan

China

USA

Others


23

Revenue Analysis by Product

28%

20% 16%

12%

7%

6% 4%

2% 2% 1%

1% 1%

0%

N13

D10

N9

N8

N7

N10

D15

N6

E8

EVB

Platform IP

S8

N12


24

37%

18% 12%

9%

6%

3% 3%

3% 3% 3% 3%

IoT

Storage

Sensing

MCU

Connectivity

Artificial Intelligence

Audio

Automotive

Navigation

Networking

Others

Customer Application Analysis

*Based on 2017 agreements number

Product Application



26

• Wireless display • WiFi, Bluetooth • GPS, GPON, NFC • Gateway/router • Portable Karaoke • Sigfox LPWAN • IoT Cat0 base station • IoT MCU ․ESL • Smart Meter ․ Smart Lighting

Rich Customers’ Applications

• Motor Control

• Wireless Charger

• Surveillance

• Barcode scanner

• ADAS

• VEDR

• 4K2K CODEC

• 8K4K CODEC

•USB3.0

•SSD, eMMC

•Anti-virus

•Sensor Hub

•mSATA

•Secure SD

•Fingerprint Recognition

• Touch Screen • eBook/eDictionary • Power

management • Bio-medical

device • CMMB • MCU • TCON

Communication

& IoT

Consumer Storage & Sensor

Industrial & Video

and more…..

http://images.google.com.tw/imgres?imgurl=http://music.columbia.edu/%7Edouglas/classes/motor_mania/AC_motor.jpg&imgrefurl=http://music.columbia.edu/%7Edouglas/classes/motor_mania/&usg=__3i4SidbzW03t-gw-hqEF_Kq2XOQ=&h=1751&w=2048&sz=296&hl=zh-TW&start=1&um=1&tbnid=R2kQecm8tY0qIM:&tbnh=128&tbnw=150&prev=/images?q=motor&hl=zh-TW&rlz=1T4ACAW_zh-TWTW308TW309&sa=N&um=1


27

IoT Application -1

N7 N8

Electronic price tags Sensor Hub

Healthcare device

Wearable device

Sigfox LPWAN Bluetooth Speaker


28

IoT Application -2

N9 D10

GPS/Beido in shared bikes

Wearable devices

Contactless payment (NFC)

WiFi/GPS/FM/Bluetooth combo

Portable Karaoke

Drone


29

Andes Core™

N13 Calibration of AVM (Around

View Monitoring) in NISSAN New X-Trial

N10 CAR Event Recorder ADAS

Automotive Applications

D10 ADAS


30

AI Applications

N9 Dataflow Processing

D10 Voice Recognition

N9 AI companion

Courtesy: Wave Computing

D15F Video recognition

SoC for WiFi in AI Companion


31

Emerging Applications

AI Deep Learning

Next generation TV Network Engine Router

Drone Robot … Many new applications are emerging

New Products and Ecosystems



33

New AndesCore™ Revealed in 2017 Pe

rfor

man

ce

Power consumption

IoT graphic source: Wilgengebroed on Flickr

N9 Sensor WiFi

BT sensor ZigBee sensor Strong security

Switch Router

D10(F) N10(F)

N13

E8

N8 N7 S8

Wearable Sensor WiFi Gateway

New Cores Announced/Released in 2017

N25 NX25

Protocol Processing Gateway Storage

D15(F) N15(F)

DSP FPU

N8

E8

https://www.flickr.com/photos/wilgengebroed/







34

AndesCore™ V5 Families

Extensible Instructions

Modern Architecture

Ultra Performance

N25 V5m, 32-bit

5-stage, 1GHz Compact

NX25 V5m, 64-bit,

5-stage, 1GHz Compact

E25*

V5m, 32-bit 5-stage, 1GHz Custom Inst.

EX25*

V5m, 64-bit 5-stage, 1GHz Custom Inst.

Next Generation V5 (V5m with adv. features)

28HPC Rvt library, slow silicon, 0.81V, 0C, with I/O constraints; * Available early 2018

Released

To Release

Under developing


35

Summary of AndesCores vs. Competitors

AndesCore™

AndesCore/ Competitor

Competitors Power Efficiency1

(DMIPS/mW)

N7 +42% Cortex-M0+

N8 +43% Cortex-M3

N9 +43% Cortex-M3

D10 +48% Cortex-M4

N13 +185% Cortex-A5

N13 +45% Cortex-R4

D15F +121% Cortex-M7 1. Power Efficiency is DMIPS/MHz divided by power consumption (mW/MHz) when running Dhrystone.


36

64 Bit Infrastructure and Eco-System

SW Stacks AndeSoft™

Processor Architecture AndeStar™

V5, V5m Development Tools

AndeSight™

Processor IP’s AndesCore™

NX25

Bus Interface Unit

AndesCore uCore

Instr LM Intf

Data LM Intf

Standby & VIC COP Intf

ITLB MMU/MPU DTLB

Data Cache

Instr Cache

DMA Engine

EDM

Development Platforms

AndeShape™

LMBRG Bus

Matrix Bus Slaves

FlashFetch

SPI (quad speed)

DMA

LMBRG

I2C UART

RTC WDT

GPIO

PWM/PIT

Sys. Mgmt Unit SPI

Data RAM

Flash ROM RAM Bus

Master

AndesCore

Bus Data Inst

AP

B B

ridge


37

Two Ecosystems: Andes and Knect.me


38

Knect.me Ecosystem Built up Ecosystem knect.me to help IoT Developing

to knect solutions - Silicon IP’s, SW stacks, tools, applications, systems and products

Includes: SoC IP Platforms Software Stack Development Boards Development Tools

To Form a IoT League to knect chip vendors, partners, application developers, system

vendors

LMBRG AHB Bus Matrix AHB Slaves

FlashFetch SPI (quad speed)

AndesCore AHB Intf

DMA

LMBRG

I2C UART

RTC

WDT

GPIO

PIT/PWM

Sys. Mgmt Unit Example

Data RAM

Flash/ ROM/ RAM

OTP for password, keys, etc.

ADC analog in

APB Bridge

MAC/PHY

AHB Masters

Crypto Engine

SPI

FreeRTOS, Contiki, eCos, Thread-X,uC/OS ,ITRON,Nucleus

Device Drivers

AndesCore App-

Specific Modules

Platform IP AE210

Comm. MAC PHY

A p p l i c a t i o n s

IPv4/IPv6, 6LoWPAN

MQTT-SN

HTTP, MQTT CoAP

TH

READ

Zigbee Pro

BT Smart

(Ready) TCP UDP

SSL/TLS DTLS

http://knect.me/


39

Added A.I. to Knect.me Ecosystem

Andes Awarded


41

Leader of IoT Solutions Providers

►“Top 25 IOT Solutions Providers 2017 — APAC CIOOutlook Magazine


42

Asian Science Park Excellence Prize

”2017 ASPA Excellence Prize” — Asian Science Park Association

Concluding Remarks


44

Andes: Even Better Value in Future

Andes revealed new AndeStar™ V5 architecture processor cores N25/NX25 IP, to be applied in networking, deep learning/AI, high end storage, etc. emerging application

Andes aggressively involved in RISC-V Foundation new technology and clusters development, contributing and leveraging RISC-V eco-system, promoting RISC-V to mainstream SoC, targeting to become world leader of embedding technology

Andes has proven its strength, core competence and value, now it is in another transition turning point

Driving Innovations

45

Thank You!

www.andestech.com

Q&A


Documents

Andes Technology Corporation 2017 Investor Conference … >204 license agreements signed ... Fingerprint Recognition • Touch Screen • eBook/eDictionary • Power management