Chilisin Confidential Investor Presentation October 2014 Chilisin Electronics Corp

Chilisin Confidential

Investor PresentationOctober 2014

Chilisin Electronics Corp.

Chilisin Confidential 2

This announcement is not, and is not intended to be, an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. Any public offering of securities to be made in the United States must be made by means of a prospectus containing detailed information about the issuer of the securities and its management as well as financial statements. There is not, and is currently not intended to be, any public offering of securities by Chilisin Electronics Corp. in the United States.

Disclaimer


Positive industry trends drive demand for passive components

Passive components are essential components of any electric circuitry

Demand for electronic devices drives demand for passive components

Smartphones, 4G base station, tablet, PCs, home appliance, automobile electronics, industrial, LED, lighting, healthcare equipment, IoT

Inductors is one of the three main sub-categories of passive components

Demand for inductors has been driven strongly by more sophisticated electronic devices requiring higher quantity and higher efficiency components

Inductor2012-2016 Global Demand Forecast

Source: Paumanok Publications, Inc .

USD (M)Qty (M pcs)


Chilisin is an inductor specialist offering total solution for a broad product range

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40 years of history, from local ferrite producer to global player

A Local Ferrite Producer

Business Expansion

Major Domestic Player

World-class Company

1972 1977 1990 1998 1999

Year

40,000

80,000

120,000

2002

Established

Developed Mn-Zn and Iron Core

Developed SMD Power Inductor

Public listingon TWSE

20012000

60,000

1997 2003

Re

ve

nu

e

K $USD

20072005 20112009 2014

100,000

Established second plant

Developed Wire-Wound and Multilayer

Developed High-Frequency Chip Inductor

Expanded ChinaDongGuan plant

EstablishedChinaSuZhouoffice

Constructed Hukou new HQ and plant

Established China Henan plant

Company established

EstablishedU.S. office

Established China DongGuan plant

EstablishedKorea office

Acquired Belkin Int’l

Formed strategic alliance with Yageo

Developed Moldingand Thin-Film Technology


$64,375

$99,433

$115,000 $120,330 $124,556

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2009 2010 2011 2012 2013

CEC Sales Revenue

$2,580,000

$2,216,000

$2,479,000

$2,218,000

$2,408,000

$2,000,000

$2,100,000

$2,200,000

$2,300,000

$2,400,000

$2,500,000

$2,600,000

$2,700,000

2009 2010 2011 2012 2013F

Global Value

Superior performance against broader market in recent years($USD ’000) ($USD ’000)

Source: Paumanok Publications, Inc .

2009~2013 Global

Revenue Growth 93.49% -6.67%

CAGR 17.94% -1.71%

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2013EVolume:247Bpcs

Strong market position: rank global #4, Greater China #1 in 2013 by volume

2013EValue:2,345M

USD

Product coverage: wire-wound, multilayer, and thin-film inductors for power and signal applications

Chilisin: #4 global position with 5.1% market share of estimated volume 246,965MpcsChilisin: #6 global position with 3.6% market share of estimated value USD2,345M

Source:株式会社マーケティング・アイ (MAKETINKUAI CORP) http://www.m-eye.co.jp/


PC22%

Mobile16%

Consumer13%

Industrial 3%

NB3% Automotive

2%

Communication 41%

Strategic diversification across application and region…

8

2013 Sales By Region

2013 Sales By Application

Asia21%

America10%

Europe & Others

7%

Greater China62%


…Not a single direct customer accounts for more than 12% of salesPC / SystemsPC / Systems Consumer ElectronicsConsumer ElectronicsTelecommunicationTelecommunication

AutomotiveAutomotive

*Any trademarks or logos used throughout this presentation are the property of their respective owners, Chilisin does not claim ownership or distribution rights of the above logos

OEMs / EMSsOEMs / EMSs


GC-based manufacturing with global presence in US and Europe

10

Chilisin HQ and Factory

Hsinchu, Taiwan

Powder FactoryTouliu, TaiwanFactory

Dongguan, China

FactorySuzhou, China

FactoryHenan, China

Distributors and agents Sales offices

Branch OfficeSuwon, Korea

Branch OfficeSan Jose, USA

Manufacturing sites with sales offices


FactoryDongguan, China

Est. 1997Employee: 1,199

FactoryHenan, China

Est. 2010Employee: 518

FactorySuzhou, China


HeadquarterHsinchu, Taiwan


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Well-established risk management system limits short-term shocks

Molding

Wire-Winding

Multi-layering

Thin-film

Through-hole

Manufacture Site Finished Products Inventory

-----------------------------------All factories are ISO 9001 and TS 16949 certified ----------------------------------


MoldingWire-winding Multi-layering Thin-film Process

Power Inductor

• Wide range• for power solution

Magnetic-resin Power Inductor• 2016~3030 size for mobile phone• 4040~5050 size for tablet PC• 6060~8080 size for TV/audio

Chip Inductor

• Ferrite core for baseband application Size: 0402

• Ceramic core for RF application

Downsize from 0402 to 0201• Common Mode Choke

• for USB2.0/3.0/HDMI

Power Inductor

• DIP type• for motherboard

Power Inductor

• SMD type• for notebook & tablet PC

New - Power Inductor• SMD Miniature type:

3225~1608 size, t: 0.6mm• for smartphone & tablet

Ferrite Bead

• Up to GHZ band• Downsize from 0402 to 0201

Chip Inductor

• For RF application• 0201 size +/-0.1nH

Horizontal and vertical integration…

Power Inductor

• 2520~1608 size, t: 0.55mm• for handset & ultrabook

Common-mode Choke

• 0805,0504 package• for USB2.0, MIPI interface

Chip Inductor

• Baseband &RF application• Downsize from 0402 to 0201


Technical Service

What else do we offer? Value-added services, with a focus on flexibility and technical support

RFQ Response

24hrs

Delivery Response

48hrs

Logistic VMI

Capacity Fully

Support 100%CustomerSatisfactio

n


Customer Design-in

Circuit Simulation

Material Research &

Development

Technical Seminar

Product Development

R/L/C Engineering

Support

A team of FAE with EE background offering technical services is critical to deliver a total solution package


Best Supplier Award from New Kinpo (2010)(2013) Best “Cooperate To Win” Award from Lenovo (2011) Outstanding Supplier Award from SerNet (2011) Best Supplier Award from Asus (2005)(2007) Best Supplier Award from Solectron (2007) Best Supplier Award from Zyxel (2006)(2007) TS16949 Certification (Since 2005) Samsung Eco-Partner Certificate (Since 2005) ISO 14001 Certification (Since 2004) Sony Green Partner Certificate (Since 2003)

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Outstanding partnerships with key industry players


Well-recognized by customers for delivering both competitive products and value-added services

Competitive Products

Full range of magnetic series Sufficient capacity support Vertical integration from powder mixing to inductor manufacturing World-class quality Cost-competitiveness Quick delivery and flexible logistic support

Value-added Service

Total solution provider for EMI, power and RF Design-in capability Professional engineering support Material research & development Concurrent product innovation

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Thank you!

Documents

Chilisin Confidential Investor Presentation October 2014 Chilisin Electronics Corp