Faraday — Interim / Quarterly Report 2018

Feb 27, 2019

Confidential

Statement of Comprehensive Income

Unit: NT$ Million	4Q18	3Q18	QoQ %
Net Operating Revenues	1,352	1,406	-3.9%
Gross Margin	712	725	-1.8%
Operating Expenses	(626)	(615)	1.9%
Operating Income	86	110	-22.0%
Net Non-operating Income and Expense	13	(10)	-237.8%
Income Tax Expense	(22)	(13)	65. 7%
Minority Interests	2	-	NA.
Net Income Attributable to the Parent	79	87	-9.8%
EPS (NTD)	0.32	0.35
Gross Margin Rate	52.7%	51.6%
Operating Income Rate	6.3%	7.8%
Net Income Rate	5.8%	6.2%

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Confidential

Statement of Comprehensive Income

Unit: NT$ Million	2018Y	2017Y	YoY %
Net Operating Revenues	4,905	5,343	-8.2%
Gross Margin	2,605	2,648	-1.6%
Operating Expenses	(2,322)	(2,333)	-0.5%
Operating Income	283	315	-10.1%
Net Non-operating Income and Expense	33	16	105.0%
Income Tax Expense	(55)	(70)	-22.0%
Income from Continuing Operations	261	261	0.3%
Income from Discontinuing Operations	-	575	-100.0%
Minority Interests	2	-	NA.
Net Income Attributable to the Parent	263	836	-68.5%
EPS (NTD)	1.06	3.40
Gross Margin Rate	53.1%	49.6%
Operating Income Rate	5.8%	5.9%
Net Income Rate	5.4%	15.6%

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Confidential

Condensed Balance Sheet

Unit: NT$ Million	2018/12/31	2017/12/31
Cash and Cash Equivalents	2,388	3,160
Notes and Accounts Receivable	883	701
Inventories	596	434
Total Assets	6,815	6,936
Notes and Accounts Payable	809	543
Current Liabilities	1,766	1,355
Total Liabilities	2,003	1,406
Stockholders’ Equity	4,812	5,530

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Confidential

Sales Breakdown by Billing Method

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4Q 2018 3Q 2018
NRE
NRE
21.5%
25.6%
ASIC
IP
ASIC 14.4% 59.7% IP
64.1% 14.7%
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Confidential

Sales Breakdown by Customer Type

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4Q 2018 3Q 2018
IP IP
14.4% 14.7%
Design
Design
System House System
House
House House
24.5%
26.3%
61.1% 59.0%
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Confidential

Sales Breakdown by Application

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4Q 2018 3Q 2018
Others
6.7%
Others
12.6% Communication
MM / Con/ PC
Communication 21.0%
12.7%
29.1%
MM / Con / PC
14.2%
AIoT
Industrial
AIoT 26.8%
32.8%
15.7% Industrial
28.4%
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• MM / Con / PC includes multimedia, consumer electronics and PC peripheral.

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Confidential

Sales Breakdown by Technology

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4Q 2018 3Q 2018
≧ 0.22um ≧ 0.22um
≦ 28nm
5.6%
5.3%
≦ 28nm 14.2%
20.9%
0.11um -
0.11um -
40nm 0.18um 40nm
0.18um
14.1% 39.5% 25.4% 41.3%
55nm -
90nm 55nm -
20.2% 90nm
13.5%
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Confidential

Sales Breakdown by Billing Method

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2018Y 2017Y
NRE
11.7%
NRE
26.3% IP
16.3%
ASIC
57.8%
ASIC
IP
72.0%
15.9%
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Confidential

Sales Breakdown by Customer Type

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2018Y 2017Y
IP IP
15.9% 16.3%
System
System Design
House Design
House House
57.7% House
60.4% 23.3%
26.4%
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Confidential

Sales Breakdown by Application

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2018Y 2017Y
Others
MM / Con / PC
11.1%
Communication 20.7%
MM / Con / PC 23.9% Communication
AIoT
13.6% 37.6%
4.6%
AIoT Industrial Industrial
17.1% 34.3% 37.1%
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• MM / Con / PC includes multimedia, consumer electronics and PC peripheral.

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Confidential

Sales Breakdown by Technology

2017Y

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2018Y 2017Y
≦ 28nm
≧ 0.22um
1.8%
5.8%
≦ 28nm
≧ 0.22um
18.6%
5.6%
40nm 0.11um -
0.11um -
41.0% 0.18um
40nm 0.18um
38.2%
19.7% 39.4%
55nm -
90nm 55nm -
16.5% 90nm
13.4%
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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-tech.com ir@faraday-tech.com

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