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For The Media That Matters
April 2015
Strictly Private & Confidential
1
Safe Harbour Statements
Certain information in this presentation and oral statements made during this meeting are forward-looking and relate to ViXS’
anticipated financial position, business strategy, events and courses of action. Words or phrases such as “anticipate,” “objective,”
“may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or
similar expressions suggest future outcomes. Forward-looking statements include, among other things, statements about: our
expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our
estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our
customers; our ability to achieve new design wins; our plans for future products and enhancements of existing products; our future
growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we
operate. Such statements reflect our current views with respect to future events and are based on assumptions and subject to
significant risks and uncertainties. Although we believe that the assumptions underlying these statements are reasonable, they may
prove to be incorrect. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking
statements. Our actual results, performance or achievements could differ materially from those contemplated, expressed or implied in
our statements as a result of various risk factors, including, but not limited to, business, economic and capital market conditions; market
conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our
ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract,
retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our manufacturing
supply chain, including pricing of goods and availability of adequate manufacturing capacity from our manufacturing suppliers; our
ability to transition to new wafer fabrication process technologies and achieve higher levels of design integration; our ability to manage
risks inherent in foreign operations; our ability to successfully maintain and enforce our intellectual property rights and defend thirdparty claims of infringement of their intellectual property rights; our ability to manage cash flow, foreign exchange risk and working
capital; our ability to manage our growth; fluctuation in our quarterly operating results; and our dependence on key personnel.
Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result
of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of
unanticipated events. Neither we nor any of our representatives make any representation or warranty, express or implied, as to the
accuracy, sufficiency or completeness of the information in this presentation. Neither we nor any of our representatives shall have any
liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this
presentation by you or any of your representatives or for omissions from the information in this presentation.
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ViXS is the Leader in Video Processing Solutions
XCode 6
Series
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Company Overview
30 Million+
Media Processors Shipped
Leading Provider of Video Processing
Semiconductor Solutions
503+
Patents Issued and Pending
$250 Million+
Invested in R&D
$4.1 Billion
Addressable Market
Strictly Private & Confidential
Headquartered in Toronto with
offices in the USA, Asia and Europe
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The “New” Media Consumers
“A new generation of media
consumers has risen,
demanding content
delivered when they want it,
how they want it and very
much as they want it.
Rupert Murdoch
Source: Cisco
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Video Patterns Driving Extraordinary Growth
66%
79%
2013
2018
IP Video Dominates
Internet Traffic
77%
Consumers Stream
Video Weekly
36% Place Shift
Weekly
4x
Growth in Internet
Video to TV by 2018
22% of VOD
Traffic by 2018
2013
2018
5
8
Connected Devices
per Household
Source: Cisco Virtual Networking Report & Ericsson TV Viewing Report
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ViXS Chips Enable the Delivery of Video
» Processing & Distributing Video
Process Ultra HD 4K Video
Reduce the Amount of Bandwidth over Networks
Convert Video Formats to Support Different Devices
» Ultra HD TVs
» Media Gateways
» Set Top Boxes
» Network Media Streamers
» MoCA & EoC
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Biggest Technology Shift in 15 Years
High Efficiency Video Coding
4x Pixels of Current
High Definition
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Up to 50% Bandwidth
and Cost Savings
8
Over 68 Billion
Possible Colours
Diversified Tier One Customers
Highlighted Products Using ViXS Chips
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Large Addressable Market
Consumer
Infrastructure
Consumer
Pay TV
Cloud
$1.4B
$2.4B
$1.4B
Devices in the Home
Ultra HD
TVs
$900M
Chinese
$400M
Consumer
Boxes
$450M
Non Chinese
$500M
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Cable and Satellite
Providers
Ultra HD
HEVC
STB
STB
$860M
$1.1B
$0.2B
EOC
Video Processing and
Distribution
Transcoding
$890M
Intel
DOCSIS
$440M
Source: ViXS Internal Estimates based on Third Party Research
Residential
Encoding
$490M
Home and Building
Networking
MoCA
$190M
Integrated
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Discrete
EoC
$50M
ViXS Leading the Ultra HD Roadmap
4320p
Bit depth : 12/14
Color Space : Rec.2020+
Audio : 5.1
HDR
HEVC
Main10
Phase 3
+2020
2160p
Phase 2
Bit depth : 10/12
Color Space : Rec.2020
Audio : 5.1
HEVC
Main10
HDR
2017/2018
Phase 1
2014/2015
2160p / 1080p
Bit depth : 10 (or 12)
Color Space : Rec.709
Audio : 5.1
HEVC
Main10
HDR Preferred
ViXS has been the First to Meet all the Requirements of the DVB Ultra HD
Phase 1 & 2
Source : EBU/SMPTE/DVB composite
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HDR / 12-Bit = Real Life Video
Brighter Picture and Truer Colors
8 Bit Color
17 Million Possible
Tones
12 Bit Color
68 Billion Possible
Tones
Original
HDR
Not Just More Pixels – Better Pixels
Source: Google Images
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ViXS Roadmap: Delivering Next Gen Video
HDR and 12-Bit Pushed and Specified
by Video Industry
Moving Picture
Experts Group
16 Million Colors
1 Billion Colors
XCode 6800 (Announced)*
 Ultra HD
 12-Bit Color
 60 Frames per Second
 High Dynamic Range (HDR)
 28nm Technology
 Reduced Power Consumption
World’s First SoC with High Dynamic Range and Ultra HD 12-Bit Color
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* Announced January 5, 2015
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ViXS Infrastructure Segment
Providing an End to End Solution from the Cloud into the Home
Tier One Customers
Cloud Transcoding
 Cost Savings
 Replaces Expensive Server Farms
 Smaller Footprint
 Lower Power
Smart Home Network
 Cost Effective Media Gateways
 Can Receive Content from the Cloud
 Secure
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Intel and ViXS Exclusive Global Partnership
Targeted at Pay TV Cable Market
To Enable New Services / Ultra HD
Local
Cable
Network
Complete Home Solution
• Media Gateway
• Modem
• Wireless Router
Leverages Intel Sales and Marketing
First DOCSIS 3.0 Video Gateway to Support HEVC and Ultra HD
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Ethernet-over-Coax: New Growth Product for ViXS
Delivery of Managed IP Services for MDUs
Enables 50% Lower Capital & Operational Costs
Support Triple Play Delivery – Video, Voice, Data
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Recap of Recent Highlights
Customers and Products
Jan.
XCode 6800 - World’s First SoC with High Dynamic Range and
Ultra HD 12-bit Color
Dec.
First Order for New Ethernet over Coax Chipsets
Nov.
New Ethernet over Coax Chipsets Launched
Oct.
Toshiba’s Ultra HD TVs Launched
Mar.
Corporate
26% Annual Revenue Growth
Feb.
Michael Michalyshyn joins management team as new General
Counsel
Feb.
Hugh Chow, appointed as Interim President & CEO
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Financials
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Strong Financial Performance
Quarterly Revenue Growth
Strong Margin
(USD Millions)
(%)
Fiscal 2015
$38.4M
$10.8
$11.2
$9.0
$7.4
42.1%
Q1 15
Q2 15
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Q3 15
Q1 15
Q415
19
43.3%
Q2 15
48.4%
Q3 15
49.2%
Q4 15
Key Operating Metrics
APR.
F1Q
JUL.
F2Q
OCT.
F3Q
JAN.
F4Q
APR.
F 1Q 2015 FYE
FYE
2014
2015
Revenue
($ mm)
$7.4
$9.0
$10.8
$11.2
$30.4
$38.4
Gross
Margin*
42.1%
43.3%
48.4%
49.2%
46.8%
46.2%
R&D
($ mm)
$4.6
$3.7
$4.7
$4.0
$17.2
$16.6
SG&A
($ mm)
$4.2
$4.2
$3.1
$3.7
$13.1
$15.3
Non-IFRS
Net Loss
($ mm)**
($4.4)
($3.8)
($2.2)
($2.0)
($15.4)
($12.9)
Cash
($ mm)
$19.7
$19.8
$16.6
$15.3
$25.6
$15.3
All Figures USD
Growth
26%
-17%
*Includes mask amortization
** Non-IFRS net income (loss) is defined as total comprehensive income (loss) before non-recurring or one-time items such as: stock-based transaction expense, share offering costs expensed,
listing fees, convertible preferred share revaluation adjustment, fair value adjustment on warrant liability, provision for repayable government assistance, and exchange difference related to
translating foreign operations. Non-IFRS net income (loss) does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other
companies. Non-IFRS net income (loss) from operations should not be considered in isolation or as a substitute for comprehensive income (loss) prepared in accordance with IFRS.
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Capital Structure
Shareholders
Capital Structure
Market Capitalization
$60.0 Million
Shares Outstanding
50.4 Million
Fully Diluted Shares
Outstanding
56.6 Million
52 Week High / Low
$2.62 / $0.93
Average 3 Month
Daily Volume
84,000 shares
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Public &
Other
36%
Celtic House
20%
NEA
15%
Mgmt. &
Institutions BOD
6%
24%
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For The Media That Matters
Strictly Private & Confidential
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