TrueLight Corporation

Overview Company Profile Company Position Supply Chain & Major Customer Product & Application Market Market Trend & Financials Summary

Company Profile Founded：1997, Sep., Taiwan Headquarters：Hsinchu Science Park, Hsinchu, Taiwan Market Cap：NT$10B IPO： Listed in Taipei Exchange (#3234-TW) since 2011 Employees : Around 879 (40% : engineers & staff; 60%: operator) Facilities: Factory Area：6,037 m2 for 2x Manufacturing Centers - Wafer Fab & Die Fab - TO & OSA assembly

Company Position (Chip) (OSA) Revenue by product line: 1% 89% 10% (Epiwafer) ( TO-Can Packaging) (Chip) (OSA) (Transceiver) (Box) Major Application is for FTTX Market Major Application is for LTE/Datacenter Market

TrueLight is a leading fiber optics components Company Position TrueLight is a leading fiber optics components Maker / Vendor / Manufacturer Strong In-house Product Design and Development Capability Strong Sales Channel with own brand Own manufacture line with adequate capacity (Top TO-CAN Assembly capacity in the world)

Supply Chain Service Providers Component Vendors Transceiver Makers China Telecom China Mobile China Unicom AT&T Verizon Telefónica Component Vendors Avago BinOptics Oclaro Melco TrueLight Luxnet Equipment Manufacturers Huawei ZTE Fiberhome Alcatel-Lucent Nokia-Siemens Cisco Ericsson Transceiver Makers JDSU Oclaro Neo Photonics Hisense Oplink Source Photonics APAC Opto Delta Finisar

TrueLight Major Customer BOSA/Transceiver Box/ System Provider

Core Product Product Wavelength (nm) Speed (Gbps) Transmitter VCSEL 850 1-10 FP-LD 1310-1550 DFB-LD 2.5-10 Receiver PINTIA 10 APD 2.5

Product line(II) - Components “from Low-speed to 10G”… TO-46 & TO-56 TOSA & ROSA BOSA fiber-stub OSA

FTTX Access FTTX GPON Market EPON Market TrueLight Market Share in major supply chain ZTE ( 52% Market share ) Huawei (38% Market Share) Fiberhome( 55% Market Share) Others( 70%Markert Share) TrueLight Market Share in major Huawei (9% Market Share) ZTE ( 33% Market share ) Fiberhome( 17% Market Share) Alcatel-Lucent (33% Market Share) Others( 50% Market Share) EPON Market (Contribute 30% Revenue) Over 50% Market Share in the EPON Market GPON Market (Contribute 52% Revenue) Over 25% Market Share in the GPON Market TrueLight is the leading component provider in FTTX Market !

FTTX EPON market--- TrueLight’s receiver is No.1 in Japan. Market share is above 70%. TrueLight dominate EPON(Tx+Rx) market in China. Market share is above 50%. Cooperation with MELCO, TrueLight will take over Melco’s Tx market. It will expand Japan & worldwide EPON market. GPON market--- Gpon market share is around 25%~30% in China at the end of Q3, 2015.

LTE On receiver side, TrueLight is No.1 in Korea LTE market. Market share is above 80%. 10G ROSA & TOSA products are ready. China and North America are target market. Cooperation with American customer, TrueLight succeed to get into Amazon. Cooperation with Korean customer, TrueLight succeed to get into India LTE market.

Data Center TrueLight is the only one company in Taiwan with the capability to produce VCSEL chip/TO/OSA. TrueLight focus on VCSEL for years. On storage transceiver market (low bandwidth) , market share is around 6%. Main customers are distributed in Taiwan, Japan and China. Developing COB technique, product will extend from 10Gbps to 40Gbps

Market Trend FTTH LTE Cloud Computing Strong Demand

Sales Revenue NT$ thousand

2015 Revenue Breakdown by Application

Sales Revenue NT$ thousand 1,575,978 1,266,249 960,264 730,111 729,050 519,571 592,195 563,718

Gross Margin 32% 25% 23% 22% 21% 18%

Gross Margin 37% 33% 28% 27% 27% 25% 25% 21%

EPS 8.04 2.93 2.1 1.53 1.31 0.98

EPS NTD 3.25 3.0 1.1 0.99 0.71 0.77 0.65 0.47

Summary Optical communication industry still remain mild growth this year. TrueLight will keep double digit percentage of revenue growth in 2016. TrueLight continuously enhances product R&D. TrueLight complies with corporate governance requirements to ensure investor equity.

Q & A