Faraday — Interim / Quarterly Report 2018

Feb 8, 2018

Confidential

Statement of Comprehensive Income

Unit: NT$ Million	4Q17	3Q17	QoQ %
Net Operating Revenues	1,131	1,269	-10.9%
Gross Margin	618	666	-7.3%
Operating Expenses	(577)	(556)	3.8%
Operating Income	41	110	-63.0%
Net Non-operating Income and Expense	4	43	-90.9%
Income Tax Expense	(4)	(30)	-88.0%
Net Income (Attributable to Parent)	41	124	-66.7%
EPS (NTD)	0.17	0.50
Gross Margin Rate	54.6%	52.5%
Operating Income Rate	3.6%	8.7%
Net Income Rate	3.6%	9.8%

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Confidential

Statement of Comprehensive Income

Unit: NT$ Million	2017	2016	YoY %
Net Operating Revenues	5,343	5,260	1.6%
Gross Margin	2,648	2,556	3.6%
Operating Expenses	(2,333)	(2,184)	6.8%
Operating Income	315	372	-15.4%
Net Non-operating Income and Expense	16	(25)	-164.5%
Income Tax Expense	(70)	(46)	51.9%
Income from Continuing Operations	261	301	-13.4%
Income (Loss) from Discontinuing Operations	575	(19)	-3069.4%
Net Income (Attributable to Parent)	836	281	197.7%
EPS (NTD)	3.40	1.14
Gross Margin Rate	49.6%	48.6%
Operating Income Rate	5.9%	7.1%
Net Income Rate	15.6%	5.3%

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Confidential

Condensed Balance Sheet

Unit: NT$ Million	2017/12/31	2017/9/30
Cash and Cash Equivalents	3,160	2,758
Notes and Accounts Receivable	701	704
Inventories	434	531
Total Assets	6,936	6,942
Notes and Accounts Payable	543	673
Current Liabilities	1,355	1,499
Total Liabilities	1,406	1,557
Stockholders’ Equity	5,530	5,385

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Confidential

Sales Breakdown by Billing Method

2017 Q3

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2017 Q4 2017 Q3
NRE
NRE
11.9%
14.2%
IP
17.7%
IP
ASIC 19.9% ASIC
65.9% 70.4%
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Confidential

Sales Breakdown by Customer Type

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2017 Q4
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2017 Q3

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IP IP
19.9% 17.7%
System
System
House
House Design
53.9% Design
57.4% House
House
22.7%
28.4%
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Confidential

Sales Breakdown by Application

2017 Q3

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2017 Q4 2017 Q3
MM / Con /
MM / Con /
PC
PC
17.2%
20.2% Communication
AIoT
Communication
AIoT 32.8%
5.6%
34.0%
3.8%
Industrial
Industrial
42.0%
44.4%
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• MM / Con / PC includes multimedia, consumer electronics and PC peripheral.

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Confidential

Sales Breakdown by Technology

2017 Q4

2017 Q3

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≧ 0.22um
≧ 0.22um
8.4%
≦ 40nm 5.2%
30.0%
≦ 40nm
0.11um - 33.2%
0.11um -
0.18um
0.18um
55nm - 46.3% 55nm -
48.3%
90nm
90nm
15.3%
13.3%
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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-tech.com ir@faraday-tech.com

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