Presented by Bryan Dow

1. CONFIDENTIAL
Global Capital Markets &
Industry Outlook
April 12, 2016

2. CONFIDENTIAL
Bryan Dow, Executive Director (Silicon Valley)
 Senior member of Mooreland Partners Industrial
Technology Group
 Lead Mooreland’s Drone Coverage
 Advise companies in mergers, acquisitions, sales and
raising growth capital
 11+ years in technology M&A with over 50 completed
transactions
–Previously Head of the Clean Energy and Industrial
Technology Investment Banking Group at ThinkEquity
–Prior to ThinkEquity, member of the Technology
Investment Banking Group at Needham & Company
–Completed over 50 transactions
 BS from the Leavey School of Business at Santa Clara
University
Mooreland Presenter
2
October 2015
has been acquiredby
has acquired
September2015
June2015
has been acquiredby

3. CONFIDENTIAL
Mooreland Overview
Technology Focused
Industrial Technology | Digital Media and Internet
| Communications Technology | Enterprise Software
100% Partner
Owned
Founded 2002
One Global P&L
Global Reach
Serving North American, European and Asian
markets from offices in Silicon Valley,
New York and London
Team of 48
13 Nationalities
10 Languages Spoken
Ranked #1
in Mid-Market
Technology M&A
28 deals completed in 2015
Unrivalled
Experience
1,000+
Deals Closed in Combined Careers
3

4. CONFIDENTIAL
Focus on Key Technology Sectors
Energy Efficiency
Energy Storage
& Alternative
Energy
Emerging
Technologies
Semiconductors
& Components
Advanced
Manufacturing
Supply Chain
Services
Monitoring,
Analytics
& Controls
Energy Analytics
Power & Energy
Devices and
Systems
Electronics
& Materials
Recycling
Optics &
Photonics
Additive
Manufacturing
/ 3D Printing
Design
Services
Smart Sensors
Energy
Management
& Security
Solar & Wind Fuel Cells PCB & Flex
Automation
Systems and
Software
Advanced
Manufacturing
Services
Control Systems
& Software
Advanced
Lighting
Distributed
Generation
Services
Energy
Harvesting
MEMS &
Semiconductors
Process Equipment
& Analytical
Instrumentation
EMS
Industrial
Internet of Things
Technologies,Solutions&Services
Growth
Markets
Smart
Mobility
Drones
Advanced
Robotics and
Automation
Connected
Factories &
Offices
INDUSTRIAL TECHNOLOGIES
& ELECTRONICS
ENTERPRISE SOFTWARE &
SERVICES
COMMUNICATIONS
TECHNOLOGIES
DIGITAL MEDIA
Industrial Technologies & Electronics
4

5. CONFIDENTIAL
Extensive Experience in Industrial Technology M&A
Deals led by senior bankers at previous firm
December 2009
has acquired
has been acquiredby
July 2011
has been acquiredby
May 2010
a subsidiary of
has acquired
June2010
has divested its consumer
xenon flash businessto
June2010
a portfolio company of
GGV Capital
has been acquiredby
January2011
has secured$15.0 million
in Series E Funding
December 2010
has acquired
January2011
has been acquiredby
April 2011
has been acquiredby
June2011
has been acquiredby
February2011
has been acquiredby
May 2009
has secured€12.5 million
in equityfinancing
July 2009 November 2008
has sold LFCC
Technologyto
October 2008
has acquired has been acquiredby
January2008
has been acquiredby
August 2008
has sold its Circuit
Protection Business to
October 2008
has been acquiredby
January 2008 November 2007
has acquired
has been acquiredby
May 2012
has been acquiredby
March 2012June2012
has been acquiredby
has been acquiredby
September2011
has divested its Spire
Semiconductor Business
March 2012June2012
has been acquiredby
June2012
has been acquiredby
July 2012
has securedan undisclosed
roundof funding
December 2012
has acquired
March 2013
has been acquiredby
has divested its
SemiconductorSystems
Businessto
May 2013May 2013
has been acquiredby
August 2013
has been acquiredby
June2013
has been acquiredby
July 2013
has been acquiredby
October 2013
Acquisition of majority
interest and investment by
has been acquiredby
February2014
has been acquiredby
April 2014
has been acquiredby
April 2014
and portfolio company
July 2014
has divested its Disc
Publishingbusinessto
May 2015
has merged with has securedgrowth
equity investment from
October 2014
has been acquiredby
October 2014January2015
has been acquiredby
February2015
has been acquiredby
WIOT Technologies Oy
a holding company
backed byhas acquired
March 2015
has been acquiredby
April 2015
a portfolio companyof
June2015
has been acquiredby
October 2015
has been acquiredby
has acquired
September2015
5

6. Advanced Robotics and Automation

7. CONFIDENTIAL
 The industrial segment will continue to represent the majority of
near-term revenue, however…
 Technological advances are enabling new markets and applications
 Increased start-up activity with funding from VCs, strategic
investors and government
 Emergence of “out of segment buyers” (i.e. Teradyne, Google,
Amazon) targeting very large new market opportunities
 Robot is becoming a symbiotic partner to humans with the
accelerating adoption of “Cobots” into integrated work
environments
 Emerging “Blue Ocean” market applications likely to be larger than
legacy industrial market
The Robotics Industry Has Been Experiencing a “Renaissance”
Enabling Technologies
Advanced Sensors
and Detectors
Advanced Precision
and Motion Control
Intelligent
Navigation
Mapping Systems
Connectivity and
Smart Device
Enabled
Data AnalyticsVision Technologies
Cooperative Ability
with Humans
Advanced
Processors and
Microcontrollers
Predictive Motion
Planning
Force Sensing
Speech Recognition
12

8. CONFIDENTIAL
Robotics Markets are Evolving - Emerging “Blue Ocean” Opportunities
Market Example Applications Example End Customers Major Players
• Industrial
• Machine Tending
• Pick-and-place
• Packaging
• Process Application
• Assembly
• Assembly/Machine Tending
• Product Testing
• Large enterprises: lighter payload apps
that require precision and safety
• Small to medium size enterprises –
mainly mfg. and material handlingCollaborative /
/
• Cleaning
• Smart Home Technology
• Outdoor Maintenance
• Video Collaboration
• Robotic Kiosks
• Mapping / Navigation
• Security / Safety
• Consumers
• Schools
• Retail
Consumer
• Precision Agriculture
• Film / Photo / Video
• Inspection / Monitoring
• Mapping / Surveying
• Public Safety
• First Response
• Consumers and Prosumers
• Government / Defence / Safety
• Surveillance organizations
• AgricultureDrones
• Self-Driving Cars
• Underwater Vehicles
• Consumers and prosumers
• Oil and gas companies
• Mapping and navigation companies
• Defence organizations
Other
Autonomous
• Material transport
• Logistics Management
• Mfg line replenishment
• Security / Defense
• Asset tracking
• Manufacturing operations
• Warehouse and logistic operations
• Defence & Public security
Mobile
/
• Surgical Procedures
• Surgical Training
• Telemedicine
• Caregiver Support
• Bionics
• Hospital
• Healthcare facilities
Med / Surg.
Auris Surgical
Robotics
8

9. CONFIDENTIAL 9
 China is the world’s largest consumer of robotics
 Market will continue to be a growth market as
robotics penetration is still very low vs. more
advanced markets
– 23 robots per 10,000 workers vs. over 300
robots per 10,000 workers in Japan & S. Korea
 Government support and subsidies driving growth
– Goal of creating 4 or 5 robotic “champions”
– Goal of supplying 1/3 of domestic demand from
domestic robotic suppliers (on track)
– Handing out RMB200-500 million /yr subsidies
 Number of Chinese Robotics growing rapidly
– ~420 domestic robotics companies
 Increasing M&A and funding interest
– Investments in robotics are to hit record levels -
$500M+ in 2015
– Increased interest in global M&A as a means to
acquire technologies and enter the market
China is Now the World’s Largest Market for Robots
China Robotics Market Dynamics Global Robot Stock – Significant Growth in China Expected
182
311
237
428
343
292
0
100
200
300
400
500
China EU North America
2014 2017
Unitsin‘000s
Select Chinese Robotics and Automation Players
Public Private
Market Cap: $6.2B
EV/LTM Rev.: 22.4x
EV/LTM EBITDA.: NM
Market Cap: $962M
EV/LTM Rev.: 12.8x
EV/LTM EBITDA.: NM
Market Cap: $1.2B
EV/LTM Rev.: 1.9x
EV/LTM EBITDA.: 6.5x
Market Cap: $926M
EV/LTM Rev.: 3.7x
EV/LTM EBITDA.: 62.5x
(Drones)
(Drones)(Consumer)
(Consumer)
(Industrial)
(Industrial and Consumer)
Source: International Federation of Robotics

10. CONFIDENTIAL
Movement of Private Capital into the Sector has Accelerated
 Robotics and Automation private placement fundings have risen significantly since 2014, in both volume
and $ amount (a record of $923M was invested in Robotics and Automation in 2015)
 The market has also witnessed an influx of strategic investors (i.e. Bosch, KUKA, Mitsui, GE, Flextronics,
iRobot, ABB, Nike, Foxconn, Alibaba, QUALCOMM, SanDisk, Shanghai Electric, etc…)
10
Sources: CapitalIQ, 451 Research, Press Releases, Internal Estimates
Private Placement in Robotics Since 2008 - Present
2008 2009 2010 2011 2012 2013 2014 2015
Total Funding $42 $76 $85 $224 $198 $269 $447 $923
# of Investments 10 18 17 30 29 45 71 75
10
18 17
30 29
45
71
75
0
10
20
30
40
50
60
70
80
2008 2009 2010 2011 2012 2013 2014 2015
(#offundings)

11. CONFIDENTIAL 11
Select Robotics Private Placements – Focus on New Applications
Company Investors Category Date Amount Raised Total Raised
Mitsubishi UFJ Capital Co. Ltd. Mar-2016 $10.6M $10.6M
Accel Partners Mar-2016 Undisclosed Undisclosed
EDB Investments Pte. Ltd., Intel Capital, Northern Light Venture
Capital
Jan-2016 $15.0M $17.0M
Haiyin Venture Partners, Taylor Ventures Dec-2015 $9.5M $9.5M
Pontifax Ltd., Khosla Ventures, Syngenta Ventures, Innovation
Endeavors, Data Collective, Monsanto Growth Ventures
Nov-2015 $17.1M $30.4M
Summit Partners Oct-2015 $46M $46M
BlueTree Capital, Eagle Ventures, Hercules, Pittsburgh Life
Sciences Greenhouse, Slater Technology
Sep-2015 $25M $134M
SoftBank Capital, Shasta Ventures, O'Reilly AlphaTech Ventures Jun-2015 $20M $23M
Andreessen Horowitz, First Round, GE Ventures, Kleiner Perkins
Caufield & Byers
Jun-2015 Undisclosed $40M
ABB, Formation8, NIKE Jun-2015 $15M ~$20M
Intel Capital Apr-2015 $75M $135M
J.F. Shea, Mayfield, QUALCOMM, Atlantic Bridge, O'Reilly
AlphaTech, True Ventures, Foundry Group; WestSummit, SanDisk
Feb-2015 $64M ~$100M
UAV
Gripper
UAV
UAV
Mobile
Healthcare
UAV
Gripper
Agricultural
Mobile
Mobile
Gripper

12. CONFIDENTIAL
 Robotics M&A activity is growing but still
relatively small
 Historically acquisitions had focused on
consolidation
 However, buyers are starting to focus on
emerging tech and next gen apps
 “Out-of-segment” buyers increasing
Notable M&A Transactions
12
8
14
12
21
19
23
2010 2011 2012 2013 2014 2015
NumberofTransactions
Robotics and Automation M&A Activity
(1)
Notes:
1. 2013 total transactions include 8 successive acquisitions by Google * Mooreland Estimate
Acquirer Target Category Date
Transaction
Size (EV)
EV/
Rev.
Feb’16 $45m Conf.
Oct’15 $201m 3.6x
Jul’15 Conf. Conf.
May’15 $350m 9.2x
Apr’15 Conf. Conf.
Feb’15 Conf. Conf.
Sep’14 $390m 0.5x
Jul’14 $347m 1.5x
Mar’14 $20m Conf.
Apr’14 Conf. Conf.
Dec’13 Conf. Conf.
Collaborative
Collaborative
Consolidation
Services
UAV
UAV
Consolidation
UAV
Motion Control
Industrial and Mobile
(Defense & Security
Business)
Defense

13. CONFIDENTIAL
• Robotics and Automation public valuation has retracted from last year’s high and is now trading below
the Nasdaq
• Current public players, mostly selling traditional industrial technologies into slowing growing markets,
will need to organically and/or inorganically develop solutions for new emerging markets and find
growth
Robotics and Automation – Broad Equity Market Performance
Broader Robotics Indices – 36 Months Relative Performance
Google acquired 8 robotics
companies
13

14. CONFIDENTIAL 14
Robotics and Automation – Equity Market Performance in China
• Chinese public Robotics and Automation companies have experienced significant correction following
unprecedented run-up in 2015
• However, these stocks are still very highly valued vs. all other markets
• Still very significant disparity with Western stock markets, which results in tempting arbitrage
opportunity for Chinese companies to acquire foreign robotics companies
China Robotics Index – 36 Months Relative Performance

15. CONFIDENTIAL
Mooreland Taxonomy for Robotics and Automation
VerticalPlatforms
Semiconductor
Defence&
Security
Automotive
Consumer
Specialty
RobotPlatforms
Fixed
Robotics
Mobile Robotics
Medical and
Surgical Robotics
Parts,
Components
&Accessories
Modules & Parts (Grippers, Vacuum Pumps, Hands, Rotary Units, etc.)
Components (Sensors, Actuators, etc.)
Controllers
SystemIntegrators
Manufacturing Execution Systems
Supply Chain Management Software
ERP Software
Surgical
Warehouse&
InventoryMgmt.
Collaborative
Robotics
Drone / UAV(1)
Solar
ElectronicsMfg.
&Factory
Automation
Food&Beverage
Mining&
Agriculture
Healthcare&Life
Sciences
Logistics
Other
Autonomous
(Underwater,
Satellite, Self-Driving
Vehicles)
(1) UAV = Unmanned Aerial Vehicle
15

16. CONFIDENTIAL
Robotics Market Landscape – Robots, Parts, Accessories &
Components
RobotPlatforms
Fixed
Robotics
Mobile Robotics UAV
Collaborative
Robotics
Medical and
Surgical Robotics
Other
Autonomous
Parts,Components
&Accessories
ControllersComponentsModules and Parts
16

17. CONFIDENTIAL
Robotics and Automation Landscape - Vertical Platforms
Automotive Consumer Defense and Security Electronics Mfg. / Factory Automation
Food and Beverage LogisticsHealthcare / Life Sciences Mining & Agriculture
Solar SurgicalSpecialty Warehouse / Inventory Mgmt.
Auris Surgical
Robotics
17

18. CONFIDENTIAL
Commercial Drones

19. CONFIDENTIAL
Commercial Drones - New Opportunity Taking Flight
19
 Multifaceted and complex connected vehicles built with sensors
that collect data and carry payloads for specific commercial
purposes
 Basically another IoT node
 FAA expects the number of drones flying in U.S. domestic
airspace to hit 30,000 by 2020
 FAA also brings regulation, which is still shaping up
 Enormous potential in key industries and applications
Key Applications
Precision Agriculture
Film / Photo / Video
Inspection /
Monitoring
Mapping / Surveying
Public Safety / First
Responders
Drones, Unmanned Aerial Vehicles (UAVs), & Unmanned Aircraft Systems (UASs)

20. CONFIDENTIAL
UAV – The Big Picture
20
 UAVs continue as the most dynamic growth
sector of the world aerospace industry
 Development of UAVs for different
applications, by different industries has led to
a wide variety of airframes and capabilities
 Key external drivers
– Gov’t funding for military
– ↑ sophistication and ↓ price of components
 M&A trends
– Expansion within verticals
– Node in IoT
– Internet to remote geographies
 Financing trends
– Inspection
– Delivery/logistics
– Cloud services
Source: Teal Group, 2014
UAV Classification
0 – 200 ft.
Low-speed, low altitude missions,
film and inspection
500 – Above ft.
Manned aircraft; military grade
drones
200 – 400 ft.
High-speed transit
zone for sophisticated
drones (e.g. delivery drones)
400 – 500 ft.
No-fly zone

21. CONFIDENTIAL
Commercial Drone Landscape
21
Software Only ServicesSystems & Software

22. CONFIDENTIAL
Drone Market Size
22
 Over $6 billion /year spent on
military and commercial drones
 Estimated to grow to $8.6 billion by
2019, representing a 6% CAGR
$0.7
$5.1
2014 2015 2016 2017 2018 2019
Commercial Drone Spending
$, Billions
$6.4
$8.6
2014 2015 2016 2017 2018 2019
Total Military & Commercial Drone Spending
$, Billions
Key Observations
 Commercial estimated to grow to
$5.1 billion by 2019, representing a
51% CAGR
 Commercial to grow from ~10% of
the market today to ~60% by 2019

23. CONFIDENTIAL
Country Drone Governing Body Registered Commercial Drones
Federal Aviation
Authority (FAA) ~3,850 Drones
French Civil Aviation
Authority (DGAC) ~2,200 Drones
Civil Aviation Authority
(CAA) ~1,400 Drones
Civil Aviation Safety
Authority (CASA) ~500 Drones
Market Share & Commercial Drone Use
23
 Major commercial use is aerial photography and
video, however infrastructure inspection,
construction, and agriculture are emerging uses
 In the US, DJI has established a significant leadership
position with its Phantom 3 (~$500 ASP)
 Although small, the number of people and
organizations authorized to operate commercial
drones is growing rapidly in the US. (~4,500 by year
end)
Proposed Drone Missions in the US Approved Under FAA 333
Key Observations
Commercial Drone Penetration in the US
Source: Oppenheimer February 2016, TechCrunch, April 2015
2,550
1,250
1,100
900
600
400
400
400
350
250
Photography & Video
Inspection
Survey
Real Estate
Search & Rescue
Agriculture
Data Collection
Mapping
Construction
Drone Training
United Kingdom
France
United States
Australia
(2%)
(1%)
(2%)
(84%)
(11%)

24. CONFIDENTIAL
Drones Face Hurdles to Growth
24
- FAA Regulation -
Speed of expansion relies heavily on federal rules
- Air Safety -
Growing number of drones seen flying
dangerously close to commercial aircraft
- Civilian Privacy Concerns -
17 states passed drone-related privacy legislation
- New Legal & Insurance Implications -
Heightened risk of property damage and liability
Challenges facing
commercial drone industry
- Unproven Business Models -
How will companies actually use drones to make
money?
Source: CBS Money Watch, August 2015

25. CONFIDENTIAL
Drone M&A Deal Volume and Selected Transactions
25
Source: CapIQ data as of April 5, 2016
Acquirer Target Date Transaction Description
Jan’16
• Aerial mapping and surveying
• Accelerates the development of
Intel visual sensing technologies
Dec’15
• Fully autonomous drones with
obstacle avoidance technology
• GoPro is using as a platform
Jan’15
• Small drones
• Platform to develop low-cost,
replaceable and expendable UAVs
Apr’14
• Solar-powered high-altitude long-
endurance drones
• Google using drones to deploy
internet in remote locations
Mar’14
• Solar powered long-endurance
drones
• Facebook using to deploy internet
in remote locations
Jul’12
• Aerial imaging drones
• Parrot to expand presence in the
commercial UAVs
Drone M&A Activity
Number of Transactions
3
2
5
6
4
9
15
6
2009 2010 2011 2012 2013 2014 2015 2016
YTD
 M&A activity growing but still relatively
small
 Historically focused on military
 Notable “out-of-segment” buyers
 Recent activity around flight control
software and autopilot systems

26. CONFIDENTIAL
Venture Community Heavily Engaged
26
Venture funding for UAV-related startups rose to $476M in 2015; a 148% YoY increase from 2014
 VCs have jumped into the commercial drone market in a
big way in 2015
 Many VCs more focused on software, not hardware
 Main categories includes:
 Inspection (e.g. mapping, precision agriculture,
infrastructure, energy, mining), delivery/logistics,
insurance and cloud services
Source: CapIQ, PrivCo, TechCrunch November 2014, CB Insights 2015
Drone Funding Activity
6 13
26
38
78
23$12
$36
$83
$192
$478
2011 2012 2013 2014 2015 2016 YTD
Number of Investments Total Annual Investment in $M
Selected Venture-Backed Companies
2011- 2016 YTD
Companies $ Raised
DJI Technology $105M
3D Robotics $99M
Airware $75M
Yuneec $60M
Aeronautics $53M
EHang (Ghost Drone) $52M
Skycatch $46M
Aeryon Labs $46M
CyPhy Works $37M
FLYPRO $36M

27. CONFIDENTIAL
Concentrated Investments from Select VCs
27
While there have been a significant number of investments made by venture capital firms, only a select
group of firms have made multiple investments in drones.
Venture Investors Investments

28. CONFIDENTIAL
 FAA regulations to continue to roll out, but will take longer than expected
– This brings uncertainty are can stifle innovation
– Needed in order for commercial drones to be ubiquitous and safe
 Strategic and VC private investments to continue to ramp
– Significant uptick in strategic interest as strategies get worked out at the BU level
– VCs are more cautious in hardware investments in this environment; into capital light models
 At least one major IPO in 2016 as there are already “public ready” companies
– Eventually will provide more choices for public investors
– Increases buyer universe driving further M&A
 Near-term M&A to be driven by large technology conglomerates, niche consumer
electronics players and mil/aero companies moving down market
– They have been on the sidelines for too long; starting to enter
– Outsiders, especially large cap players, bring further validation and clout to the industry
What We Expect From the Drone Market…
28

29. CONFIDENTIAL 29
Bryan G. Dow
Executive Director
950 Tower Lane, Suite 1950
Foster City, CA 94404
tel: +1 (650) 330-3788
bdow@moorelandpartners.com
Mooreland Partners LLC is a member of FINRA / SIPC

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