Promise Technology

2013 Investor Conference

Speaker: James Lee, CEO, Promise Technology

Date: May 2, 2013

• PROMISE’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements.

• Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Disclaimer

Agenda

• Situation

• Position

• Financial Data

• Strategy

• Execution

• Visio

Situation –Infrastructure (1)

2012 PROMISE Confidential

China Sales & Marketing Engineering Post service & support

HQ Sales & Marketing Engineering Manufacturing Quality Assurance Traded at TAIEX

MEMA Sales & Marketing Post service & support Logistic Hub

USA Sales, Marketing Engineering Quality Assurance Post service & support

209; 49%

91; 22%

68; 16%

56; 13%

Global total 424

R& D

MFG & QA

S & M

ADM

people ; %

Situation – Employee (2)

Situation – Storage value chain(3)

Components

Storage platform

Solution

Position – in Storage industry(1)

Source: Gartner Magic Quadrant for General Purpose Disk Arrays,

Published: Mar. 21, 2013

2003 2013

Service Oriented

Position – Transformation Model (2)

Storage IC

Storage Platform 磁碟陣列櫃

Solution 軟硬兼修、應用導向

雲端儲存、監控、多媒體

Storage HBA 磁碟陣列卡

1993 1998 1988

Leading Provider

Financial Data-Income Statement (1)

(in NT millions) 1Q13 4Q12 1Q13 over 4Q12

1Q12 1Q13 over 1Q12

2012

Net Revenue 852 763 11.7% 792 7.6% 3,108

Gross Margin 39.7% 41.2% 36.5% 38.7%

Net Profit 65 47 39.2% 10 525.8% 100

Net Profit Margin 7.64% 6.13% 1.31% 3.23%

EPS(NTD) 0.32 39.0% 0.07 524.8% 0.68

ROE 3.85% 2.86% 0.67% 6.34%

Average Exchange Rate (NTD: USD)

29.48 29.57 29.70 29.57

0.44

792

837

717

763

852

600

650

700

750

800

850

900

1Q 12 2Q 12 3Q 12 4Q 12 1Q 13

7.6%

Revenue, NT$M

11.7%

Financial Data- Revenue Analysis(2)

Net Revenue by Market Segment(3)

47

302

402

12

59

330

11

-

50

100

150

200

250

300

350

400

450

26.55% 9.29% 12.51% -10.64%

Surveillance Rich Media Cloud/ IT Other

Q1 13 over Q4 12 Q4 12_R

Q1 13_R

Revenue,NT$ M

452 208 ; 6.7%

1,282 ; 41.3%

1,537 ; 49.5%

81 ; 2.6%

Y2012 Surveillance

Rich Media

Cloud/ IT

Other

in NT millions ; %

Revenue: 3,108

47 ; 6.1%

302 ; 39.5% 402 ; 52.7%

12 ; 1.6%

Q4 12 Surveillance

Rich Media

Cloud/ IT

Other

in NT millions ; %

Revenue: 763

59 ; 6.9%

330 ; 38.7% 452 ; 53.1%

11 ; 1.3%

Q1 13 Surveillance

Rich Media

Cloud/ IT

Other

in NT millions ; %

Revenue : 852

Net Revenue by Geography(4)

2,003 ; 64%

648 ; 21%

457 ; 15%

Y2012 America

Asia & Pacific

EMEA

in NT millions; %

Revenue：3,108

439 ; 58% 152 ; 20%

171 ; 22%

Q4 12 America

Asia & Pacific

EMEA

in NT millions ; %

Revenue：763

474 ; 56%

121 ; 14%

257 ; 30%

Q1 13 America

Asia & Pacific

EMEA

in NT millions ; %

Revenue： 852

439

152 171

474

121

257

0

50

100

150

200

250

300

350

400

450

500

7.97% -20.61% 50.12%

America Asia & Pacific EMEA

Q4 12_R

Q1 13_RQ1 13 over Q4 12 Revenue,NT$ M

Financial Data- Gross Profit(5)

In NT millions ; of revenue %

Financial Data- Net Income(6)

In NT millions ; of revenue %

Balance Sheets & Key Indices (7)

Selected Items from Balance Sheets

Amount % Amount % Amount %

Cash & Marketable Securities 540 19 469 17 412 14

Notes & Account Receivable 244 8 168 6 97 3

Inventories 621 21 656 23 852 28

Restricted Assets 134 5 498 18 480 16

Net PP&E 433 15 433 15 472 16

Defferred Expenses 408 14 418 15 449 15

Prepayment & Other assets 515 18 197 7 237 8

Total Assets 2,895 100 2,838 100 2,998 100

Total Liabilities 1,169 40 1,183 42 1,433 48

Total Shareholders' Equity 1,726 60 1,655 58 1,565 52

Key Indices AR Turnover Days

Inventory Turnover Days

Current Ratio(X)

Quick Ratio(X)

*Weighted average outstanding shares were 147,861,784 units in 1Q13

1Q13 4Q12 1Q12

40

159

1.47

1.05 0.84 0.57

(In NT millions)

50

1.84

46

149

1.74

113

Strategy –Market Segment (1)

Costumer Oriented

Execution – Resulted and Progress

Cloud

Surveillance

Rich Media

Resulted – Obtained certificates from global well-known

surveillance and IP cam will companies and completed

various installation bases globally.

Progress - Corporate with well-known surveillance

company – VMS – in technology integration and

partnership.

Resulted – More than 5 customers had installed Promise

Cloud data centers solutions already.

Progress – Expand Cloud software RD team to develop

B2B/B2G cloud solutions, integrate technology and

application, and install and certify at enterprise cloud system.

Resulted – cooperated with many US Media companies in

Sales and built up global image, obtained certificates,

recognition and trust.

Progress – strengthen HW/SW technology, provide based to

higher end products.

Vision – Growth Driver

Cloud

Surveillance

Rich Media

will corporate with well-known surveillance company – VMS -

through technology integration and partnership. This will

promote company image, enhance sales/channel capability,

and expand customer base.

will base on current customers base, execute strategy

implementation with two digits growth target.

It expects 15 – 25% growth as HW/SW technology

enhancement, all functional products launch, market maturity,

and global customer recognition.

19

Thank You!