Faraday — Interim / Quarterly Report 2016

Feb 22, 2017

Confidential

Statement of Comprehensive Income

Unit: NT$ Million	16Q4	16Q3	QoQ %
Net Operating Revenues	1,525	1,539	-0.9%
Gross Margin	673	679	-0.9%
Operating Expenses	-659	-591	11.5%
Operating Income	14	88	-84.0%
Net Non-operating Income and Expense	10	-19	-155.5%
Income Tax Expense	7	-19	-138.0%
Net Income (Attributable to Parent)	31	50	-37.0%
EPS (NTD)	0.12	0.21
Gross Margin Rate	44.2%	44.1%
Operating Income Rate	0.9%	5.7%
Net Income Rate	2.1%	3.3%

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Confidential

Condensed Balance Sheet

Unit: NT$ Million	2016/12/31	2016/09/30
Cash and Cash Equivalents	1,832	1,662
Notes and Accounts Receivable	1,026	708
Inventories	630	989
Total Assets	6,288	6,114
Notes and Accounts Payable	458	482
Current Liabilities	1,265	1,170
Total Liabilities	1,424	1,310
Stockholders’ Equity	4,864	4,804

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Confidential

Statement of Comprehensive Income

Unit: NT$ Million	2016	2015	YoY %
Net Operating Revenues	6,422	6,578	-2.4%
Gross Margin	2,817	3,139	-10.3%
Operating Expenses	(2,466)	(2,612)	-5.6%
Operating Income	351	527	-33.4%
Net Non-operating Income and Expense	(24)	41	-158.5%
Income Tax Expense	(46)	(110)	-58.0%
Net Income (Attributable to Parent)	281	461	-39.1%
EPS (NTD)	1.14	1.26
Gross Margin Rate	43.9%	47.7%
Operating Income Rate	5.5%	8.0%
Net Income Rate	4.4%	7.0%

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Confidential

Sales Breakdown by Billing Method

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2016 Q4 2016 Q3
NRE NRE
10.2% 13.6%
IP
13.8% IP
13.8%
ASIC ASIC
76.0% 72.6%
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Confidential

Sales Breakdown by Customer Type

2016 Q3

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2016 Q4 2016 Q3
IP IP
13.8% 13.8%
Design Design
House House
15.1% 16.0%
System System
House House
71.1% 70.2%
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Confidential

Sales Breakdown by Application

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2016 Q4 2016 Q3
Others
Others
8.6%
Consumer 9.9%
8.8%
Consumer
PC Communi
Communi 16.2%
Peripheral cation
cation
8.4% 42.3%
48.8% PC
Multi- Peripheral
9.1% Multi-
media
media
25.4%
22.5%
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Confidential

Sales Breakdown by Technology

2016 Q3

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2016 Q4 2016 Q3
≧ 0.22um ≧ 0.22um
5.3% 5.2%
0.11um - 0.11um -
0.18um 0.18um
≦ 40nm
26.2% 27.5%
≦ 40nm 43.9%
57.0%
55nm -
55nm -
90nm
90nm
11.5%
23.4%
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Confidential

• Confidential information

The material is being disclosed to you pursuant to a non-disclosure agreement between you or your employer and Faraday. Information disclosed in this presentation may be used only as permitted under such an agreement.

• Legal notice

The information contained in this presentation is intended to provide a general guide as to which product is suited for a given requirement and shows suggested product applications. Specified functions and properties for products are only valid when handling instructions and other stated conditions and recommendations have been considered and followed. All descriptions, illustrations and dimensions in the information represent general particulars and do not form part of any contract. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance. All information is subject to change without prior notice. Faraday assumes no responsibility whatsoever for any errors or inaccuracies about the information.

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Confidential

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www.faraday.com ir@faraday-tech.com

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