Faraday — Interim / Quarterly Report 2018

Jul 27, 2018

Confidential

Statement of Comprehensive Income

Unit: NT$ Million	2Q18	1Q18	QoQ %
Net Operating Revenues	1,104	1,043	5.9%
Gross Margin	604	564	7.2%
Operating Expenses	(566)	(515)	10.0%
Operating Income	38	49	-21.5%
Net Non-operating Income and Expense	6	24	-75.6%
Income Tax Expense	(16)	(4)	334.6%
Net Income (Attributable to Parent)	28	69	-58.7%
EPS (NTD)	0.11	0.28
Gross Margin Rate	54.7%	54.0%
Operating Income Rate	3.5%	4.7%
Net Income Rate	2.6%	6.6%

2

Confidential

Condensed Balance Sheet

Unit: NT$ Million	2018/6/30	2018/3/31
Cash and Cash Equivalents	3,193	3,309
Notes and Accounts Receivable	647	457
Inventories	508	595
Total Assets	7,235	7,006
Notes and Accounts Payable	764	797
Current Liabilities	2,299	1,500
Total Liabilities	2,383	1,539
Stockholders’ Equity	4,852	5,467

3

Confidential

Sales Breakdown by Billing Method

==> picture [558 x 294] intentionally omitted <==

----- Start of picture text -----

2Q 2018 1Q 2018
NRE
NRE
27.6%
32.1%
ASIC
ASIC
55.0%
49.8%
IP
17.4%
IP
18.1%
----- End of picture text -----

4

Confidential

Sales Breakdown by Customer Type

==> picture [554 x 294] intentionally omitted <==

----- Start of picture text -----

2Q 2018 1Q 2018
IP IP
18.1% 17.4%
System
System
Design House
House
House 49.5% Design
59.6%
22.3% House
33.1%
----- End of picture text -----

5

Confidential

Sales Breakdown by Application

2Q 2018 1Q 2018

==> picture [554 x 273] intentionally omitted <==

----- Start of picture text -----

Others
Others
9.0%
17.2%
Communication
Communication
MM / Con /
22.1%
22.8%
MM / Con / PC
PC 15.5%
12.1%
AIoT
AIoT
6.9% Industrial 16.4% Industrial
41.0% 37.0%
----- End of picture text -----

• MM / Con / PC includes multimedia, consumer electronics and PC peripheral.

6

Confidential

Sales Breakdown by Technology

==> picture [359 x 17] intentionally omitted <==

----- Start of picture text -----

2Q 2018 1Q 2018
----- End of picture text -----

==> picture [563 x 270] intentionally omitted <==

----- Start of picture text -----

≧ 0.22um ≧ 0.22um
≦ 28nm ≦ 28nm
6.3% 6.2%
21.5%
18.6%
0.11um -
40nm 0.11um -
0.18um
15.0% 0.18um
35.0%
40nm
41.3%
23.7% 55nm -
55nm - 90nm
90nm 18.9%
13.5%
----- End of picture text -----

7

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.

8

Confidential

==> picture [184 x 6] intentionally omitted <==

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

==> picture [625 x 9] intentionally omitted <==

9