Altek — Investor Presentation 2014

Jun 2, 2014

Altek The imaging Solution Provider

June 2014

The Imaging Expert.

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Agenda

Company Overview Altek Business Financial Summary

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Overview‐ Innovation in digital image technology

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• Headquarter: Hsinchu, Taiwan

• Manufacture Site: Kunshan, China

The first camera solution shipment

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The first 1.0 M pixels
•
autofocus DSC. Launched
ADAS (Eagle View) altek Cubic
Camera
•
NO.1 sales of DSC
IPO in Taiwan
ODM company.
Year of Turn
Stock Exchange
Established
Around.
1996 1998 2002 2005 2008 2009 2010 2011 2013 2014
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Lunched the world's first 12MP Android camera phone with 3x optical zoom.

• First shipment of glucose meter.

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Core Competence

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ASIC design

Image Processing Algorithm

Optics

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Agenda

Company Overview Altek Business Financial Summary

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Camera solution applications

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Medical
Machine Vision,
Systems
Science &Space sensors
Sport Cam
Action Cam
Portable DV Low Volumes
Mobile Phone
<1M units
>1M units
~ 1B units
Security & >10M units
Surveillance
>100M units
>60M units
High Volumes
DSC & DSLR
Cameras Automobile Notebook &
& Transport Mobile audio, TV Notebook webcam
& Gaming devices
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Camera Solution for Smartphone

• Camera solution is the key differentiator for smartphone

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AP + Module AP + ISP + Module
3M 8M 13M 16M 20M
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• Hardware is simply not enough as a solution.

• Just like “Dual Camera”, for depth based applications, the know‐how is

• built in the SW algorithm and the calibration process.

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Camera Solution for Smartphone

• Depth application is the future trend ‐Instant auto focus

‐Bokeh application ‐3D moving detection ‐Speed detection

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Medical

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Worldwide leader’s strategic ODM Partner

• Easy lancing ‐ One‐click action with Clixmotion

• technology.

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•
•
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• Easy testing ‐ 50 tests on a continuous tape. No

• single test strips to handle or dispose of.

• Easy visualisation ‐ PC‐ready reports to easily

• visualise blood glucose values.

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New Accu‐Chek[®] Mobile system wins red dot design award!

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Medical

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Medical Imaging

Endoscope

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Camera solution for Automobile

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� 360 degree Surrounding System (Eagle View)

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Feature

• 360 ° surrounding view +

• Rear view display

• Startup: 3 second

• Video performance > 15fps

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Camera solution for Automobile

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Side View Corner View
�
Blind Spot Monitor
Blind Spot Detection (BSD)
Rear View Forward View
� Parking Assist System � Lane Departure Warning
Forward Collision Warning
Pedestrian Detection
Bird View
Drive Recorder
� 360° Surround View
Interior View
Motion Object Detection
Air Bag Deployment Alley View
Driver Mental Detection
Face Recognition
Baby Monitor
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Camera solution for system products

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� Camera solution for Security & Surveillance has strong demands.

• System camera for smartphone is emerging.

• DSC: Saturated but high‐end still has market.

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Agenda

Company Overview Altek Business Financial Summary

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Consolidated Income Statements

Unit: NT$ millions (Except EPS: NT$), %

Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %	Unit: NT$ millions (Except EPS: NT$), %
Quarter	14.Q1		13.Q1		2013		YoY
Item	Amount	%	Amount	%	Amount	%	%
Net Sales	3,804	100.0	4,014	100.0	19,166	100.0	(5.2)
Cost of Goods Sold	(3,495)	(91.9)	(3,748)	(93.4)	(18,007)	(94.0)
Gross Profit	309	8.1	266	6.6	1,159	6.0	+1.5 ppts
Operating Expenses	(289)	(7.6)	(326)	(8.1)	(1,223)	(6.4)	(11.5)
Operating Profit	20	0.5	(60)	(1.5)	(64)	(0.3)	+2.0 ppts
Non‐Operating Gain	78	2.1	15	0.4	(304)	(1.6)
Profit before Income Tax	98	2.6	(46)	(1.1)	(368)	(1.9)	+3.7 ppts
Income Tax Expense	(16)	(0.4)	0	0.0	37	0.2
Net Profit	82	2.2	(46)	(1.1)	(331)	(1.7)	+3.3 ppts
Basic EPS (after tax)	0.22		(0.12)		(0.88)

Note: Weighted‐average outstanding common shares of 14Q1 were 377,153 thousand shares

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Consolidated BS & CF Highlights

onsolidated BS & CF Highlights	onsolidated BS & CF Highlights
Year 14.3.31 13.12.31 13.3.31
Item Amount % Amount % Amount %
Cash & Marketable Securities 5,280 32.9% 5,062 32% 5,260 31.8% Notes & accounts receivables, net 2,720 17.0% 2,421 15% 2,627 15.9% Inventories 1,148 7.2% 1,343 9% 1,819 11.0% Property, Plant and Equipment 5,676 35.4% 5,657 36% 5,488 33.1%
TOTAL ASSETS 16,037 100.0% 15,718 100% 16,566 100.0%
Bank loan 1,200 7.5% 1,000 6% 250 1.5% Notes & accounts payable 2,323 14.5% 2,511 16% 2,957 17.8%
TOTAL LIABILITIES 5,896 36.8% 5,819 37% 6,179 37.3%
Common Stock 3,855 24.0% 3,903 25% 3,961 23.9% Retain Earnings 4,372 27.3% 4,375 28% 4,883 29.5%
TOTAL EQUITY 10,141 63.2% 9,900 63% 10,387 62.7%
Year 14.1.1~3.31 13.10.1~12.31 13.1.1~3.31
Item Amount % Amount % Amount %
Net Cash Provided by Operating Activities	(128) 734 (22)

Note: Outstanding common shares as of 14.3.31 were 377,280 thousand shares

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Disclaimer

This presentation is private and confidential and is being made available to the recipient on the express understanding that it will be kept confidential and that the recipient shall not copy, reproduce, distribute or pass to third parties this presentation in whole or in part at any time. This presentation is the property of Altek Corporation (“Altek”) and the recipient agrees that it will, on request, promptly return this presentation and all other information supplied in connection with the ideas and concepts presented herein, without retaining any copies.

This presentation has been prepared by Altek and is being delivered to the recipient and is for general reference only. The sole purpose of this presentation is to assist the recipient in understanding Altek. This presentation is not intended to form the basis of a decision to purchase securities or any other investment decision and does not constitute an offer, invitation or recommendation for the sale or purchase of securities. Any decision to purchase securities in any offering of Altek should be made solely on the basis of the information contained in a prospectus which may be published or distributed in due course in connection with such offering, if any. Neither the information contained in this presentation nor any further information made available in connection with the subject matter contained herein will form the basis of any contract.

This presentation does not purport to be comprehensive or to contain all the information about Altek, its business, its current or historical operating results or its future business prospects. The information contained herein is based on publicly available information and sources, which we believe to be reliable, but we do not represent it is accurate or complete. The recipient of this presentation must make its own investigation and assessment of the ideas and concepts presented herein. No representation, warranty or undertaking, express or implied, is or will be made or given and no responsibility or liability is or will be accepted by Altek or by any of its directors, officers, employees, agents or advisers, in relation to the accuracy or completeness of this presentation or any other written or oral information made available in connection with the ideas and concepts presented herein. Any responsibility or liability for any such information is expressly disclaimed.

In furnishing this presentation, Altek undertakes no obligation to provide the recipient with access to any additional information, or to update, or to correct any inaccuracies which may become apparent in, this presentation or any other information made available in connection with the ideas and concepts presented herein.

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Thank You.

The Imaging Expert.

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