Institutional Investors Conference report Date:2014.4 西柏科技股份有限公司 Institutional Investors Conference report Date:2014.4

Outline 1.Company Introduction .......................................... 1 2.Major product introduction ................................... 5 3.Marketing strategy ................................................ 12 4.Financial results ..................................................... 16 5.New products introduction .................................... 20

1.Company Introduction Basic information History of Cypress Technology ● Basic information History of Cypress Technology

Basic information Business Model: own-brand、OEM、 ODM Founded Date:Jan 21,1991 Chairman Chuan-ping Yang General manager Norton Tsai Authorized Capital NT 380,884,920 Employees Hired 261 (Until Mar,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.

History Of Cypress Technology Jan,1991 Company founded date, Authorized Capital:NT1,000,000 Handle cash injection in Capital, Authorized Capital:NT5,000,000 ISO 9001 Certified. ISO 14001 Certified. Listed on Emerging Market. (Stock no : 3541) Listed on OTC Market. Invest CYP(UK)&Lektropacks(for promoting European market.) Establish Payroll Committee(for corporate governance purpose) Apr,1991 Feb,2005 Mar,2006 May,2007 Dec,2009 Feb,2011 Dec,2011

Organization chart Board of directors Chairman Chuan Ping Yang Internal Auditor Marie Cheng General Manager Nortor Tsai Spokes person Fred Tseng Research & Develoment Vice President Jones Hsu Quality & reliability Management Manager Wu. Sales Vice President Frank Chye Purchasing Director Leu Administration CFO King Wang Factory Chief Bao-chuan Chen

2.Major product introduction ● Major product introduction

Professional AV products(1): Video System Converter The video system converter connected between a VCR/Satellite Receiver/Camcorder and your color TV that enable you to view another video system on the local TV system.

Professional AV products(2): Video Effect Mixer This High Definition HD/SD digital A/V Mixer allows you to make adjustments to the position of your video

Professional AV products(3): pattern Generator This item can offer you hundreds of sophisticated TV testing patterns in multi-system, is ideal for use in factory production, R&D, TV station, CATV head- end system etc.

Professional AV products(4): Audio Video Receiver The Multichannel AV amplifier is made with high efficiency design, these allows users to enjoy high quality true sound with no delay true colors, used for Movie Theater ,large conference room,etc. 10

Professional AV products(5): HDMI series Splitter: It allows one HDMI source to connect up to many HDMI displays simultaneously. Switcher: This is a high performance four-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

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

Attending Exhibitions summary 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 ISE-Amsterdam,Holland (CYP(UK) attends only ) ●

Website:www.cypress.com.tw

4.Financial results Profit & Loss analysis ● Profit & Loss analysis Major products sales analysis Major sales Region analysis 2014 Q1 Profit & Loss (comparing with 2013 Q1)

Profit & loss analysis(2010~2013) In Thousands of New Taiwan Dollars, Except Earnings Per Share

Major product sales analysis NT thousand dollars

Sales Region analysis thousand dollars

2014 Q1 Profit &Loss 項目 2014Q1 2013Q1 Difference Sales Revenue 317,719 241,904 75,815(31.34%) Cost of Sales 202,874 164,796 38,078(23.11%) Gross Margin 114,845 77,108 37,737(48.94%) Gross Margin Rate 36.14% 31.87% 4.27%(13.40%) Operating Expense 60,632 58,347 2,285(3.92%) Operating Income 54,213 18,761 35,432(188.97%) Operating Income Ratio 17.06% 7.76% 9.3%(119.85%) Non-Operating Income &Expense 10,346 4,065 6,281(154.51%) Income Before Tax 64,559 22,826 41,733(182.83%) Tax expense 11,203 3,910 7,293(186.52%) Net profit 53,356 18,916 34,440(182.07%)

5.New products introduction New product introduction Applications Description ● 20

AV CENTER FOR MOVIE THEATER

AV center application server PROJECTOR AV CENTER(CYP) Amplifier MAIN SPEAKER

HD Base T Solutions-Matrix, Repeater(with CAT5 cable)

2013 Cinema Screens by Format and Region

4k*2k Series splitter scaler Martix

this device allows you to split an image two or three this device allows you to split an image two or three times to connected displays

Professional smart monitors-TV WALL

APPLICATION 1-Conference room

Application2:Home theater

IR Applications-Smart residence 30

西柏科技股份有限公司 Thank you Q&A 31

西柏科技股份有限公司 CYP Ideas for Video