08/13/2014

GreTai Securities Market PHISON’s presentation contains forward-looking statements subject to significant risks and

uncertainties. Actual results may differ materially from those contained in the forward-

looking statements. Information as to those factors that could cause actual results to vary

can be found in PHISON’s annual reports and other documents filed from time-to-time with

the TWSE. 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.

D-U-N-S : 65-802-3291

Phison Electronics Corp.

K.S. Pua

2Q/2014

Financial Results

PHISON’s presentation contains forward-looking statements subject to significant risks and

uncertainties. Actual results may differ materially from those contained in the forward-

looking statements. Information as to those factors that could cause actual results to vary

can be found in PHISON’s annual reports and other documents filed from time-to-time with

the TWSE. 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.

D-U-N-S : 65-802-3291

Confidential

Statements of comprehensive income

(Amounts are on consolidated basis and are in NT$ millions unless

otherwise noted) 2Q14 1Q14 1H14 1H13 2013

EPS (NT$ per common share) 4.35 4.16 8.51 8.67 17.57

Net Revenue 8,088 7,701 15,789 15,412 32,174

Gross Profit 1,462 1,207 2,669 2,863 5,720

Gross Margin 18% 16% 17% 19% 18%

Operating income 942 664 1,606 1,695 3,414

Non-Operating Items 64 194 258 216 344

Income Before Tax 1,006 858 1,864 1,911 3,758

Net Income 787 750 1,537 1,564 3,171

Net Profit Margin 10% 10% 10% 10% 10%

Confidential

Controller 22%

Modules 57%

Others and services

21%

Revenue Analysis

0

6000

1Q 2QN

TD

/Millio

ns

Controller

QoQ

+58%

0

6000

1Q 2Q

NTD

/Millio

ns

Modules

QoQ

-10%

Confidential

0

100

200

300

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

EA

/m

illion

s

QoQ

+32%

Controller Shipments

* The shipments included the number of controller chips

sold directly and used in sold Modules.

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Balance Sheet Items

(Amounts are on consolidated basis and are in NT$ millions unless otherwise noted) 2Q14 1Q14 2Q13 2013

Cash & Marketable Securities 11,377 9,536 9,692 9,519

Accounts Receivable 4,188 3,817 4,818 3,855

Inventories 3,840 4,455 3,113 4,023

Investments 545 412 303 334

P&PEs 1,559 1,575 1,543 1,590

Total Assets 22,020 20,382 19,866 19,881

Short-term Loans 388 0 420 89

Total Liabilities 7,429 5,607 7,449 5,859

Total Equity 14,591 14,775 12,417 14,022

Key Financial Ratio

2Q14 1Q14 2Q13 2013

Days of Receivable 46 45 53 45

Days of Inventory 55 60 42 43

Current Ratio (x) 2.67 3.27 2.40 3.04

ROE(%) 21.49 20.85 24.57 24.10

ROA (%) 14.68 14.91 16.45 17.04

Key Products Roadmap

Confidential

Product & Application Overview

USB Flash Drive SD & microSD

CF

SSD

eMMC

Smart Card

microSD PATA/SATA

Flash Module

A strong, diversified product mix for NAND Flash applications

uSSD

eMMC & UFS

Confidential

TLC eMMC Chipset Qualification Status

PS8223 & PS8226 first eMMC 5.1 controllers, with 40nm process

For new controllers, no capacitors needed inside eMMC package, saving system BOM cost

TLC 8GB & 16GB eMMC chipset is QUALIFIED by several key semiconductor players

TLC 32GB eMMC sampling to major tablet customers

Confidential

2013 2014 2015

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S

eMMC & UFS New Controller Roadmap

PS8310 – UFS 2.0 Gear 3

PS8230 – eMMC 5.0 Seq R/W: 330/72MB/s Ran R/W 1G Sustained IOPS: 7000/2000 Packed Read/Cache Write IOPS: 20000/10000

PS8222 – eMMC 5.0

PS8220 – eMMC 4.51 (Up to 64/128GB)

Seq R/W: 330/68MB/s Ran R/W 1G Sustained IOPS: 7000/1800 Packed Read/Cache Write IOPS: 14000/6000

Seq R/W: 172/63MB/s Ran R/W 1G Sustained IOPS: 7000/1750 Packed Read/Cache Write IOPS: 12000/5000

PS8211 – eMMC 4.5 Cost Down (for eMCP)

PS8210 – eMMC 4.5 (Up to 32GB) Seq R/W: 165/42MB/s Ran R/W 1G Sustained IOSPS: 6000/1450 Packed Read/Cache Write IOPS: 11000/5000

Phison PS3110 SATA SSD Controller Unleash the Power and Go Beyond Your Expectations

Confidential

Retailer/B2B

Industrial Applications

PC OEM/ODM

Enterprise Solutions

Intensive customization; consistent performance over time; outstanding reliability

Medium effort of customization; high performance and reliability

Competitive performance and great reliability

shapes products and

defines services.

Suitable for main storage applications

PS3108 Performance SATA3 SSD

High performance & low density Perfect for cache SSD/module

PS3109 Embedded SATA3 SSD

High performance and high density Best for enterprise applications

PS3110 Ultimate SATA3 SSD

UMC 55nm; SATA Rev. 3.0/3.1 Support Hynix, Intel, Micron and Toshiba1

Seq. read/write2 up to 550/530 MB/s Ran. read/write2 up to 100K/90K IOPS

1Listed in alphabetical order; 2Estimation based on TSB A19nm MLC

PS3110-S10 PCB Designs based on BGA132/152 PKG

2.5 SATA SSD 128GB – 1TB Max. 8PCS flash

M.2 2280 64GB – 512GB Max. 4PCS flash (Double-sided)

M.2 2260 64GB – 256GB Max. 2PCS flash (Double-sided)

mSATA 64GB – 512GB Max. 4PCS flash (Double-sided) TSOP56 is also

supported!

Confidential

Secure Care Industrial Reliable Phison AES SATA SSD comes with FDE (Full Disk Encryption),

which consists of Phison AES

controller and one or more NAND flash

memory chips.

All Phison SSD support

S.M.A.R.T., and we can also customize additional monitoring

attributes based on customer requirements.

Our industrial product line is

unique and specially designed

for rigorous environments.

We have a complete top-

down qualification for

SSD products. We do not comprise when it comes to

reliability.

Features Functions

Confidential

Phison’s Care Application

To help User understand Phison’s SSD better, we have developed our care application to retrieve more device status, as well as provide additional functions. • Device Info and Status • S.M.A.R.T. • Firmware Upgrade* • Security Erase • SSD Optimization

*Only available with the complete version.

Phison SATA Toolbox

Confidential

Product

Know How Value

Support

Market

Customer Business

These are the reasons why you should choose Phison.

We offers a wide range of product collection.

We designs and develops our own flash

controllers.

We understand the balance between

performance and cost effectiveness for SSD.

It is not just consumer service. It’s our promise

to you.

Each controller withstands market

trends and competition over a year.

Our customers include flash vendors, iPC

providers, PC OEM/ODM and retailers.

Our business models are flexible, covering from PCBA to turnkey

solutions.

We Know what you need.

Confidential

We challenge ourselves.

We believe in “one step further”.

We endeavor to learn.

With Phison PS3110, we are now beyond your expectations. Phison has dedicated over 100 research engineers and spent more than a year designing, constructing, and enhancing the hardware and firmware of PS3110. The design of PS3110 covers various applications including consumer, OEM/ODM, industrial and datacenters solutions. We also create many unique features and algorithms to bring performance, reliability and endurance of SATA SSD to the top.

Confidential

Notebook

Ultrabook

Tablet

Industrial PC

Set-Top Box

Automotive

Server

Phone & Tablet

E-Book

GPS

Networking

Camera/Camcorder

Automotive

Digital TV

Telecommunication

Online Transaction

Medical

Military

Entertainment

Transportation

Cloud Computing

SSD Embedded Security

NAND Flash Market Outlook

NAND Flash market demand growing from an expanding number of applications

R&D Team and Patent

Confidential

R&D TEAM

R&D 60%

Others 40%

R&D is the Core of Phison

287

374

454 488

0

500

2011 2012 2013 2014/Jul.

R&D manpower

under 2yrs 19%

2-4yrs 18%

4-6yrs 11%

6-8yrs 13%

8-10yrs 12%

Over 10 yrs 27%

R&D Experiances

under 30 31%

30-40 62%

40-49 6%

over 50 1%

R&D Ages

Confidential

Patent Portfolio

* Updated July 2014

Region Pending Granted

Taiwan 184 251

China 228 177

USA 162 200

Others 2 29

Total 576 657

LBA to PBA mapping to improve Random Write Performance and maximize Device Life Time

Solve the problem of accumulated error

introduced by Copy Back operation

Smart card technology embedded Mobile Security

6,490,163 6,724,680 6,792,501 6,876,579 6,880,024 6,916,208 7,187,583 7,206,893 7,222,211 7,225,291 7,243,186 7,259,988 7,263,649 7,276,889 7,319,360 7,376,781 7,649,794 7,822,912 7,840,745 7,949,929 8,037,233 8,055,837 8,103,820 …..

Flash management for eMMC Products to

support new NAND Flash architecture and to improve performance

Data Integrity of MLC large block NAND.

Improve performance of partial page programming

Mobile Payment Services

Confidential

X 行動 支付 一張封裝群聯SD安全控制器及FISC II專屬晶片的Micro SD記憶卡 ，提

供身份識別、多重付款、資料儲存及專屬資訊保險箱的應

用。

X-Card

金管會核准發行

Confidential

內建群聯的SD安全控制器

Phone / P

C / N

B / S

mart T

V

Applica

tions

Nand Flash Memory

ISO7816

Flash I/F

Flash I/F

一般記憶體

專屬資訊保險箱

Phison SD 安全控制器

FISCII晶片

SD I/F

•與Smartcard晶片建立安全的資料連線 •提供加解密電路及金鑰管理等安控功能 •存取Flash一般記憶體 •存取Flash隱密區並提供檔案管理功能

•發卡行的個人化處理 •虛擬帳號 •發卡行專屬的TAC Key作認證之用 •Account Link

Confidential

使用X-Link 讓 X-Card可以 應用在不同平台

X-Card

PC/Phone/TV Android Phones

Ticket Online Services Data/Voice Secure Payment Healthcare

OTG X-Link

iPhone

將X-Card插入手機microSD卡槽中

X-Card插入X-Link 並使用 Lightning 介面在iPhone上使用

X-Card插入X-Link

並使用 OTG/USB介面在PC/手機上使用

Lightning X-Link

專屬保險箱首頁

緊急提醒資料輸入

密碼管理 私有隱密

健康資訊 證照管理 票證/收據

資訊/廣告 社團 法人

X-Card 已經整合的應用

不只是行動支付，而是個人安全應用的平台

行動醫療服務 - 慈濟醫院

Thank You

PHISON is a trademark of PHISON Electronics Corporation, registered in the United States and other countries.

SD Logo, miniSD Logo, microSD Logo, SDHC Logo, miniSDHC Logo, microSDHC Logo are trademarks.

CompactFlash® and CF logo are trademarks of the CompactFlash Association.

Windows 8 and the Windows logo are trademarks of the Microsoft group of companies.

General Notice: Other trademarks and product names used herein are for identification

purposes only and are the property of their respective owners.

PHISON disclaims any and all rights in those marks.

© 2014 PHISON Electronics Corporation. All rights reserved.

D-U-N-S : 65-802-3291