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ContentContent

Company OverviewCompany Overview

Sales & MarketingSales & MarketingProducts & TechnologyProducts & Technology

Financial OverviewFinancial Overview

New BusinessNew Business

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Company Profile

• TXC Corporation, founded in 1983, is a leading professional frequency

control product manufacturer. We have devoted to the research, design,

manufacture, and sale of Dual-Inline-Package (DIP) and Surface Mount

Device (SMD) quartz crystal products. TXC now specializes in five

categories of products such as high quality Quartz Crystal, Crystal

Oscillator (CXO), Tuning Fork (TF) Surface Acoustic Wave (SAW) Filter,

and Timing Module (TM).

• Our goal is to add value to our customers by providing a complete solution

of frequency devices and modules, design-in service to fully satisfy

various needs of the esteemed customers. We believe based upon the

competence of cost effectiveness, quality, lead-time, and customer service

TXC will go beyond customers' expectation.

• www.txccorp.com

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1983

Established TCXO Production

Established SMD Production

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20061984 …

Implemented Oracle ERP

Founded- Capital US$ 95,000

IPO’ed- Increased Capital to US$ 34.8M

Listed in Taiwan Security Exchange (Code- 3042)

Completed Ningbo Factory in China

2007

Total Capacity up to 186 M/month

2008 2009

Ranked 4th

Business

TS16949

6 Sigma

IECQ QC080000

ISO 14001:1996 ISO 14001:2004

2010

Quality

Paid-in Capital: US$102M

Taiwan National Quality Award

2011 Establishing Chongqing Factory in China

Established SAW Production

2011

Green Product Policy & QS 9000

ISO 9001:2000

Production

PAS2050:2008

ISO 14064-1:2006

OHSAS18001:2007

MilestonesMilestones

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Headquarter - Taiwan Taipei

Factories(2)- Taiwan Ping-ChengChina NingboChina Chong-Qing (2011/2012)

Sales FAEs(10) - Taiwan TaipeiField Application Engineer China Shanghai, Suzhou, Shenzhen, Wuhan

USA LAJapan Yokohama, OsakaEuropeSingapore

Distributors(12)- Europe-UK, Germany………

Representative (8)- Korea, India, Mexico…….

Worldwide LocationsWorldwide Locations

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Crystal & OscillatorConnecting Technology Together

Miniaturization Stable(Ex. Smart Phone)(Ex. WLAN)

Ultra stableHigh FrequencyAOM/TCXO

(Ex. Base Station)(Ex. GPS)

MiniaturizationUltra stableZero Defect(Ex. Medical Device)

Ultra stable Zero defect

(Ex. Automotive products)

Miniaturization Price Competitive

(Ex. LED TV)

StablePrice Competitive

(Ex. Digital Camera)

Miniaturization Price Competitive(Ex. NB, Tablet PC)

Miniaturization Ultra stable

(Ex. Security Door System)

StableTCXO

(Ex. Smart Grid)

Stable High Frequency

(Ex. Industrial Monitoring System)

Application Application v.sv.s. Frequency Control Unit applied. Frequency Control Unit applied

1Specific requirement for different industry

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Business ModelBusiness Model

88

Worldwide Ranking & Market ShareWorldwide Ranking & Market ShareWorldwide Revenue of the Top Crystal and Oscillator Suppliers (Unit: Millions of USD)

* Data Courtesy of CS & A

CS&A forecasts 7.2% YoY Growth in 2011, and 4.9% in 2012

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Competitive Advantage of TXCTXC Competitors

of JapanCompetitors of

TaiwanCompetitors of

ChinaOverhead Cost

Quotation advantage due to JPY appreciation

High Low High High

Market Focus

Flexibility

Relationship with ODM

High Low High Low

Diversification

Ability Of Production Line

Transfer

Economic Scale

Manufacturing Technology

Quality Control

LowMediumHighMedium

Asia(Growing)

High

HighPC, Automotive,

Networking, Mobile, Consumer, Global

High

High(SMD)High

2016,1612

High

USA, Europe(Declining)

Low

HighAutomotive,

Networking, Mobile, Consumer, Global

High

Highest(SMD & TCXO)

High1612,1210

Highest

Asia(Growing)

High

LowSpecific to one or two

field

Medium

Low

Medium2520,2016

Medium

China(Growing)

High

LowPC, Consumer

Medium

High(DIP)Low

3225,2520

Low

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Operating Revenue Operating Revenue

(Unit: Millions of USD)

5%

19%22%

40%

20%

18%

31%

25%

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2010 2011(F)

TXC Sales Revenue by Marketing FieldsTXC Sales Revenue by Marketing Fields

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2011(F)Shipment by product category

2011(F)Revenue by product category

TXC 2011 Forecast by product categoryTXC 2011 Forecast by product category

1313

Revenue TrendRevenue Trend(Unit: Millions of NTD)

1414

Unit: $NT in Million

Gross Profit TrendGross Profit Trend(Unit: Millions of NTD)

420

471

589

537

273

422

576 633

532 629

696 679

576 609

630

26.00%26.26%27.36%

29.76%

19.61%

23.15%

26.00%27.59%

25.16%26.91%

27.75%

25.20%

24.63%

24.69%

24.89%

0%

5%

10%

15%

20%

25%

30%

35%

0

100

200

300

400

500

600

700

800

08.Q108.Q208.Q308.Q409.Q109.Q209.Q309.Q410.Q110.Q210.Q310.Q411.Q111.Q211.Q3

Quarterly Gross Profit Gross Margin

1515

Unit: $NT in Million

Net Profit TrendNet Profit Trend(Unit: Millions of NTD)

206 212

276257

69

170

213

361

237248

305

331

283260

285

10.02%

10.13%

10.61%

14.37%14.15%

10.08%

12.34%11.74%

9.31%

4.97%

14.26%12.84%

11.82%

12.79%12.23%

0

50

100

150

200

250

300

350

400

450

08.Q1 08.Q2 08.Q3 08.Q4 09.Q1 09.Q2 09.Q3 09.Q4 10.Q1 10.Q2 10.Q3 10.Q4 11.Q1 11.Q2 11.Q3

0%

2%

4%

6%

8%

10%

12%

14%

16%Quarterly Net Profit Net Margin

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Capital Expenditures Capital Expenditures

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Unit: NT$ in Million(Unit: Millions of NTD)

400Sum

10 Production Lines (New & Old)150Equipment

150 million invested in 2011(Mass Production in Q3, 2012)250FactoriesCKG

factory

1,144Total

118Sum

4Others

Production Lines: Tuning Fork*392Equipment

22Building

NGB factory

1,026Sum

36Others

RD Equipment

Sapphire Equipment

TCXO/AOM*6

Production Lines:

725Equipment

265Building

Ping-Cheng factory

NotesAmountsItems

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Dividend PolicyDividend Policy

• Compensation payable to directors and supervisors– 2%(2010)

• Employee Bonus– 15%(2010)

2005 2006 2007 2008 2009 2010

Earning Per Share 2.73 4.13 4.88 3.56 2.75 4.06

Cash Dividend Per Share 0.99 1.94 1.98 2.00 2.00 2.50

Stock Dividend Per Share 0.59 0.97 0.99 0.50 0.20 0.2

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New Project : Sapphire Substrate• LED Related Application

– 1. Backlight– 2. LED signboard– 3. Lighting

• Targeted Position within LED industry– Upstream of Epitary manufacturer

• Manufacturing process TXC will involve in

• 1. Crystal Growing• 2. Cutting / Lapping / Polishing• 3. PSS

. Capital Expenditure Plan (2011) - 260 million NT for equipments - 100 million NT for factory

TXC LED BU Vision and MissionTXC LED BU Vision and Mission

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High end timing products will ramp up along with raising Cloud Computing and Infrastructure applications.

Revenue will grow gradually and stably.

China Market is still the major sales driving force.

Continue penetrating Handset (Smartphone) 3G/4G market.

Gross margin will be maintained due to better product mix.

Business HighlightsBusiness Highlights

New Business will bring new growth momentum.New Business will bring new growth momentum.

Tablet PC will be an important growth driver in a few years.