2020.04.15

眾達科技

PCL Technologies Inc.

(4977.TT)

This material has been prepared by PCL Technologies, Inc. (“PCL”).

Statements made in this material include forward-looking statements,

which include, without limitation, statements about the issues, plans

and expectations of PCL. Forward-looking statements reflect, among

other things, management plans and objectives for future operations,

current views with respect to future events and future economic

performances and projections of various financial items. These

forward-looking statements involve known and unknown risks,

uncertainties, and other factors which may cause actual results to

differ materially from those implied by such forward-looking

statements.

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PCL Technologies, Inc.

眾達科技股份有限公司

* Founded Date: 2007.10.16 * IPO Date: 2013.11.20

* Capital: NTD 6.87 Million

* Production Base:

PCL Technologies (Suzhou), Co., LTD. / Employees：802(March.2020)

PCL Technologies (Hsinchu), Co., LTD. / Employees ：38

PCL INARI TECHNOLOGIES SDN. BHD. / Employees ：32

* 主要產品:

High-Speed Optical Transceivers

Optical Transmitter / Receiver

Packaging and verification of laser, detector and sensor chips

Company Overview

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Company Overview

PCL Technologies (Suzhou), Co., LTD. PCL Technologies (Hsinchu), Co., LTD.

PCL INARI TECHNOLOGIES SDN. BHD.

COVID-19 Lockdown Digital Economy Optical Communications

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Optical communication

embraces a

Global Sales of Optical Transceivers

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2020~ back on track

5G network deployment.

100GbE/400GbE in MP.

Tariff issue slow down.

2018/2019 slow down

100GbE inventory.

U.S. China tariff issue.

Networking privacyconcerns.

5G Base station VS Optical Module

Base Station Optical Module(Unit) Speed

2G 3

3G 5

4G 8 6G(fronthaul)/ 10G(backhaul)

5G

6/12 25G/100G(fronthaul)

2/4 50G/100G(midhaul)

1/30 of total volumes of fronthaul

100G/200G/400G(backhaul)

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Source:中國產業信息網

5G Optical Modules of fronthaul, midhaul and backhaul

In a 5G network, the access network is no longer composed of BBU, RRU, and antennas. Instead, it was refactored into 3 functional entities: CU（Centralized unit） The non-real-time part of the original BBU will be segmented out and redefined as CU, which is responsible for handling non-real-time protocols and services.

DU（Distribute Unit） The remaining functions of BBU are redefined as DU, which is responsible for handling physical layer protocols and real-time services.

AAU（Active Antenna Unit） Part of the physical layer processing function of the BBU is combined with the original RRU and passive antenna to form AAU.

According to the standards proposed by 5G, CU, DU and AAU can be separated or co-located, so there will be multiple network deployment forms.

Fronthaul, midhaul, and backhaul are connections between different entities

fronthaul Refers to AAU connecting DU part

midhaul Refers to the DU connected to the CU part

backhaul Refers to the CU above

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In China's 5G infrastructure, the total demand of 5G optical modules (fronthaul + midhaul) >45.9 millions units

5G承載典型光模塊產品化能力

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5G Optical Modules of fronthaul, midhaul and backhaul

5G in Japan

Source: MIC, Japan, Apr, 2019

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Growth Trend of Hyperscale

Datacenter

Hyper-scale Data Center Until 2019 Q3, total 504 hyper-scale datacenters in the world.U.S. has 38%, China and Japan has 10% and 7% each,major applications: Cloud Computing Social Media Software Platforms Content Delivery Network

Data Center Growth & Region View 504

Source: Synergy Research Group

Country Share Q3 2019

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Upgrade Path of Datacenter

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100G has overpass 40G Ethernet in Ports by end of 2017 400G Volume ramps in 2020, overpass 100G bandwidth in 2022

Switch Port Migration From 40G To 100G/400G

Forecasted delivery volumes of 400G switch port will be more than 15 million ports.

Datacenter Migration

100G 400G

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4X the Network Capacities with same network topology

數通光模塊銷售預測

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But high ASP coat and complex linkage will propbably postpone 400G rollout in near term. Forecasted delivery volumes of 400G switch port will be more than 15 million ports.

Sales of 100GbEs Optical Modules wiill be more than 7bn USD 100G QSFP DD DR1/FR 1 will dominate the market.

100G Lambda (DR1/FR1) will replace current 4x25G 100G CWPM4 gradually.

Switch Chip VS Optical Module shipments

Optics solution will come following with the release of switch chip.

Tomahawk4 accelerates the adoption of 100/200/400 GbE.

Ethernet solution at a point where optics utilizing 50G PAM4 electrical connectivity are in high volumes.

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1.25G/2.5G 4G LTE SFP

1.25G/2.5G SFP GbE/OC48

10G XFP IR2/ZR

10G GPON

25G/32G SFP28 SR/LR

40G QSFP+ SR4

400G QSFP-DD DR4/FR4

8G/10G SFP+ SR/LR

16G SFP+ SR/LR

10G SFP+ ER/DWDM

6.1G/10G 4G LTE-A SFP+

DATACOM & DATACENTER

TELECOM

Wireless

Product Roadmap

100G QSFP28 CPRI

25G LR/ER 5G e-LTE

25G BOSA/ROSA

25G SR AOC

100G QSFP-DD DR

100G QSFP28 LR4

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64G SFP28 SR/LR

200GSR4 QSFP-DD

Key Investment Highlight

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Explosive growing & Addressable Markets

Long term strong Product Introduction (NPI ) to volume production, high barrier to entry sustained Partnership with Leading Industrial Customers with programs extending from new.

Unique NPN/ODM Expertise in Precision Customer-make Manufacturing Technologies, Sole supplier in vary Next-Generation products of Customers.

Highly Resources Committed on NPI/RD project, Demonstrated Track Record of Growth & Profitability geared to high cash dividend distribution.

Financials

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Company Goal

短期目標 Continue working with current customers to

increase business. Expand business with 1st-tier network/telecom and

web-scale customers.

100G / 400G optical transceiver module ODM capability development

Meet cloud computing, massive data processing

Data Center Ultra-High-Speed Transmission Module

5G application high-speed transmission module

中長期目標 Become a professional service manufacturer of high-speed

optical module integration process design solutions for international system integrators, Netcom telecommunications equipment manufacturers and operators

Co-develop Proprietary Optical Subsystem with global networking and telecom system equipment suppliers.

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謝謝參加

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