Favite — Investor Presentation 2017

Nov 29, 2017

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FAVITE Inc.
Investor Conference
2017.11.29
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Disclaimer

Favite’s statements of its current expectations and estimates are forward-looking statements subject to significant known and unknown risks and uncertainties and actual results may differ materially from those contained or implied in the forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore one should not place undue reliance on them. Except as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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Agenda

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01 Company Profile & Milestone
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02 Service Location & Factory Sites
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03 Product & Application
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04 Operating Performance
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05 Growth Opportunities
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Company Profile & Milestone
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• 02 Service Location & Factory Sites • 03 Product & Application • 04 Operating Performance • 05 Growth Opportunities

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Company Profile

 Founded：March, 2000

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 Capital：NT 790,523,560

 Headquarter：No.197, Sec. 2, Huanbei Rd., Zhubei City, Hsinchu County 302, Taiwan Factory：Huanbei & Taihe, Zhubei City, Hsinchu County Office：Taichung Office/ Tainan Office Employee：230

• Subsidiary in China：Favite (Shanghai) Co., Ltd.

• Employee ：30

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Milestone

• Favite Inc. Founded at ITRI's Open Lab & Incubator 2000 • Move to Tai Yuen Hi-Tech Industrial Park, Zhubei City 2003 • Purchase Taihe Factory, Zhubei City 2005 • Move to Huanbei Rd., Zhubei City 2007 • IPO listing on the Taiwan Stock Exchange 2008 • Established Favite (Shanghai) Co., Ltd. 2012

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• 01 Company Profile & Milestone • 02 • 03 Product & Application • 04 Operating Performance • 05 Growth Opportunities

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Service Location & Factory Sites

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Kunshan
Xi'an
Shanghai
Fuzhou
Putian
Xiamen
Chongqing Headquarter in Hsinchu
Factory (Huanbei &
Taihe)
Taichung Office
Shenzhen
Tainan Office
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• 01 Company Profile & Milestone • 02 Service Location & Factory Sites • 03 Product & Application • 04 Operating Performance • 05 Growth Opportunities

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Main Markets / Main Customers

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Favite Markets Customers
Taiwan China
Inspection检测 Metrology量测
Panels 面板 Reticle光罩
Semi Global
NDA company
NDA
Manufacture制造 Service软件
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Milestone

Enter TFT Array Market Enter China Enter OLED Market 2004 2009 2012 2015 2017 2006 2010 2014 Enter CF/Cell Market Enter LTPS Market Enter wafer Market • CF AOI : • Array AOI • TP AOI • LTPS AOI • OGS AOI • 538 PPI • Wafer AOI TOKKI﹅Auto • Laser Repair • 3D Lens • OLED Array AOI Mura﹅OD﹅ • inline MURA AOI Mask/Frit • Hi-Res CF Auto Review • inline AOI AOI CD measure spectrometer • Color AOI • PI AOI • Cell AOI

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Main Product & Application

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TFT LCD Array LTPS / AMOLED TFT LCD CF Others Related
Touch Sensor AOI
AOI AOI AOI AOI
■ Inline AOI ■ Offline LTPS AOI ■ Color, Thickness, ■ Inline AOI ■ Semi AOI
OD Measurement
■ Offline AOI
■ OLED Mask AOI
■ Offline AOI ■ Mask AOI
■ CF Inline &
■ On Cell AOI
Offline AOI
■ OLED Frit AOI
■ TP Cover ■ E-paper AOI
■ Auto Review Glass AOI
■ OLED FS AOI
■ Cell AOI
■ CF Mura
Inspection
■ Glass AOI
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Main Product

Defect Inspection

• High Speed Defect Inspection

• Real Time Defect Classification AOI

statistics software

Review System

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AICM
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• AOI AICM monitor

• Defect code re-judgement

• High resolution color image capture

• Data analysis

• Auto Defect Judgement

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YMS
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• CD/OL Measurement

Other process

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Repair
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• Other vender

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AOI Operation Flow

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Image capture

Defect detection Data analysis

Line Scan Technology Inspection / Algorithm Defect Classification High Resolution Regular Area : Period Comparison Defect characteristic : High scanning speed Irregular Area : Panel to Panel X, Y , Area , GL , GL-Difference , High Image Capture rate Glass to Glass Zone Glass to Golden

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Auto Image Capture Machine (AICM) Introduction

High throughput Review System

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High Throughput Review System

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Auto Defect Judge (ADJ)

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• High speed/high resolution color image capture

• Auto focus function

• Auto Defect Judge to do further defect classification

• Support CD/OL Function

(Frit/Seal width measurement)

• Support frit height measurement

CD/OL Measurement

Frit Height Measurement

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YMS Introduction

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YMS Introduction

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Real Time Defect Information Defect code
Tool Monitor Analysis Rejudgement
Real Time Monitor (MNT) Statistics Process Control (SPC) Offline Video Classification (OVC)
Real Time Trend (RTT) Remote Defect Viewer (RDV)
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•
01 Company Profile & Milestone
•
02 Service Location & Factory Sites
•
03 Product & Application
•
04 Operating Performance
•
05 Growth Opportunities
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Statements of Comprehensive Income

		Accounting Title 3Q/2017 3Q/2016 YOY ue 580,933 833,040 -30.3% gin Ratio 18.9% 21.1% -2.2ppt Expenses 199,135 173,135 15.0% Expense Ratio 34.3% 20.8% 13.5ppt Operations (93,543) (13,817) 577.0% Margin Ratio -16.1% -1.7% -14.4ppt ating Items (37,693) (66,811) -43.6% o Shareholders of Parent Coman (131236) (80628) 628% (Unit：In Thousands of NTD，except for EPS in NTD)
		Accounting Title	3Q/2017	3Q/2016	YOY
	Net Reven	ue	580,933	833,040	-30.3%
	Gross Mar	gin Ratio	18.9%	21.1%	-2.2ppt
	Operating	Expenses	199,135	173,135	15.0%
	Operating	Expense Ratio	34.3%	20.8%	13.5ppt
	Loss From	Operations	(93,543)	(13,817)	577.0%
	Operating	Margin Ratio	-16.1%	-1.7%	-14.4ppt
	Non-Oper	ating Items	(37,693)	(66,811)	-43.6%
	Net Loss to Shareholders of Parent Company	o Shareholders of Parent Coman	(131236)	(80628)	628%
			,	,	.
	EPS(NT Dollar)		(1.66)	(1.03)	0.63

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• 01 Company Profile & Milestone • 02 Service Location & Factory Sites • 03 Product & Application • 04 Operating Performance

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Growth Opportunities
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2018 China FPD New Plant Building - OLED

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Location：Mianyang
Location ： Wuhan
Maker：BOE
Maker ：CSOT
Generation ：G6
Generation ： G6
Capacity：48K/Month
Capacity ：45K/Month
(Note) Location ： Shanghai
Maker ：EDO
Estimated Generation ： G6
Investment Amount Capacity ：15K/Month
USD32.4 Billions (Note)
Location ： Wuhan
Maker ：TIANMA
Generation ： G6
Capacity ：15K/Month
(Note)
Location ：Shenzhen
Location ： Jian Maker ： ROYOLE
Maker ： HOLITECH Generation ： G5.5
Generation ： G6
Capacity ：30K/Month
Note：Capacity Excluded Phase II &III Capacity ：TBD (Note)
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2018 China FPD New Plant Building – TFT LCD

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Location ：Chuzhou
Estimated Maker ：HKC
Investment Amount Generation ：G8.6
Capacity ：120K/Month
USD26.5 Billions
Location ：Jian Location ：Wuhan
Maker ： HOLITECH Maker ：BOE
Generation ：G6 Generation ： G10.5
Capacity ：50K/Month Capacity ：120K/Month
Location ：Guangzhou Location ：Shenzhen
Maker ：SDP Maker ： CSOT
Generation ：G10.5 Generation ： G11
Capacity ：90K/Month Capacity ：140K/Month
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Thank you

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