Fiti — Investor Presentation 2017

Aug 25, 2017

Foxsemicon Company Introduction

Stanley Lu, CFO 2017/8/28

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Disclaimer
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 We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding our financial conditions and business strategies. We have based these forward-looking statements on our current expectations and projection are reasonable, such forward-looking statements are inherently subject to risk, uncertainties, and assumptions about us.

 We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risk, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

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Agenda
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01 Company Profile

02 Operation Strategies 03 Competitive Advantage 04 Operation Performance

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Company Profile
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01 Company Profile

02

Operation Strategies

03

Competitive Advantage

04

Operation Performance

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Company Profile
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Established: 2001/04/26 Listed on Taiwan Stock Exchange: 2015/7 President: Yin-Kuang, Liu Capital: NT$ 787.5 million Employees: 1800+ Business ：

Foxsemicon

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 Semiconductor equipment (Contract Manufacturing)

 Automation equipment (Total Solution Provider)

【 Headquarter 】 Hsinchu Science Park, TW Fiti – Chunan

【 Manufacturing Sites 】 Shanghai & Jiangsu, CN Fiti – Songjiang & Kunshan

【 Sales Office 】 CA & TX, US

Fiti – San Jose & Austin

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2016~
2006-2015
2001-2005
 2016 「
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 2016 「 Supplier Aftermarket Collaboration 」 awarded by world‘s leading semiconductor equipment provider

• 2007 Ranked 578th out of Taiwan Great 1000 Manufacture Company

• 2013 「 Supplier Performance 」 awarded by world‘s leading semiconductor equipment provider

 2016 Global Views: Taiwan‘s Rank 17 in 2000 Survey 「 Top 50th operating performance companies 」

• 2001 Foxsemicon Company setup in Chunan

• 2014 ISO ISO-13485 Certified

• 2002 Approved vendor certified by the  2015 IPO on Taiwan Stock Exchange largest semiconductor equipment maker of the world

 2017 「 Contract Manufacturing supplier of the year 」 awarded by world‘s leading semiconductor equipment provider

• 2003 Hsinchi Science Park HQ setup

• 2005 Shanghai, China Manufacture Center setup

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Title	Name	Experience	Years
President	Ying-Kuang, Liu	Senior Vice President, Hon Hai Precision IND. CO., LTD	>30
Senior Vice President of Sales Dept.	Jackson Huang	Chairman, Prosys Technology Integration, Inc. Vice President, Sales department of ASYST/PST	>25
Vice President of R&D Dept.	Cheng-Tsu Fu	Director, SIMPLO TCHNOLOGY CO., LTD. Associate Professor, National United University	>25
Executive Assistant to Chairman	Frank Chen	CFO, Promise Technology, Inc. Vice President, Foxsemicon Integrated Technology Inc. Controller, Applied Materials Taiwan	>30
Senior associate vice president of Sales Dept.	Kevin Chiu	Manager of Prosys Technology Integration, Inc. Manager of Sales department of ASYST/PST	>20
Senior Manager of Financial Control Division	Stanley Lu	Senior Deputy Manager, FIH Mobile Limited Deputy Manager, Foxconn Technology Co., LTD.	>20
Manager of Account Dept.	Deborah Chung	Foxsemicon Integrated Technology Inc.	>15

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Operation Strategies
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01

Company Profile

02 Operation Strategies

03

Competitive Advantage

04

Operation Performance

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Semiconductor front-end process equipment

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Automation equipment

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Upstream Mid-stream Downstream Layer 5
Business
IC Manufacturing IC
IC Packaging & Testing
(Foundry/Memory) Module
Layer 4 Flexibility Service
Factory
IP Design
/IC Design IC Design
OEM Manufacturi
ng Manufacturing Layer 3 System
& Mask Chemicals Inspection & Substrate Frame Lead IC Speed Cost
Inspection equipment Channel
equipment Layer 2 Machine
Layer 1 Component
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Contract Manufacture Business Model

One-stop shop for integrated service solution

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Product Distribution
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• Thin Film Equipment(CVD,PVD)

• Panel Key Components

• Etching Equipment

• Laser Cutter

• CMP Equipment

• Laser Repair

• Metrology Equipment

• AOI

• Spare Parts and Repair service

• Light-on Tester/Probe Station

• Fab Automation

• Loader/Unloader

• Micro Contamination Control

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  - Precise Wafer Saw

  - PECVD

  - Automated Material Handling

  - PV Module Production Line

  - LED Bulb Production Line

• Cassette

• Cell Phone Production Line

• Cable/Connector Production Line

• Li-ion Battery

• Robot Application

• Factory Planning and Building

• Mobile Nursing Cart

• Health Managing KIOSK

• Medical Automation

• Medical Equipment Key Components

• Integrated Eco Monitor Platform

• Waste Water Plant Automation

• DAQ and Monitor System

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Operation Strategies
Installed, RMA and Spare Factory
Parts professional service Automation
System
AOI
Integration
Sub-Module Advanced
Integration laser process
Frame and Optical Vision Cloud monitoring
Enclosure Integration algorithm system
Electromechanical Industry waste water
Special Automation Software treatment and AC
Treatment
Integration Cloud
Product development Integrate ES Equip.
Development of
Precise Parts engineering analysis
and AC Cloud high-end medical
equipment
Peripheral
Development
Medical critical
assembly parts
Installed, RMA and Spare
Parts professional service
Breadth
Depth
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Market Profile(1/2)
US$ Billion
Worldwide Semiconductor Equipment Market Expense
60.00 120%
54.33
49.64 100%
50.00
40.48 80%
40.00 36.53
37.49
60%
31.82
30.00 40%
20%
20.00
23%
18% 9% 0%
11%
10.00 -3%
-20%
-14%
0.00 -40%
2013(A) 2014(A) 2015(A) 2016(A) 2017(F) 2018(F)
Market Growth
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• SEMI forecasts global semiconductor equipment spending this year and next years will continue to record high

• The main growing momentum is coming from China market

Source: World Fab Forecast report, SEMI(2017/6)

US$ Billion

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60 World Semiconductor Equipment Market
6%
50 6% 9% Back end
9%
40 6%
7% 9%
9%
30 9%
Front end
23%
12% 85%
20 85%
85%
84%
10
0
2015(A) 2016(A) 2017(F) 2018(F)
Front End Equipment Test Equipment Package Equipment
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 Semiconductor front end equipment holds more than 80% of the expense, and estimated the equipment will continue to grow for 2017 and 2018.

Source: World Fab Forecast report, SEMI(2017/6)

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(2/2)
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Fab Equipment Spending by Region

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US$ Billion
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US$ Billion Europe &
Europe &
Mideast ROW
Mideast
ROW 4.60 2.13
3.82
1.95 8% 4%
8%
4% Taiwan
10.14
Taiwan
19%
China 12.11
China
6.86 24%
11.53
14%
21%
Americas
5.21 Korea
11% 15.12
Japan Korea Americas 28%
5.48
5.09 14.61 Japan
10%
10% 29% 5.33
10%
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Demand for 2017 US$ 49.6 billion

Demand for 2018 US$ 54.3 billion

Source: World Fab Forecast report, SEMI(2017/6)

• SEMI predicted Korea will be the world's largest regional market for semiconductor equipment in the next two years.

• China will exceed Taiwan and becomes the second largest region worldwide in 2018

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Competitive Advantage
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01

Company Profile

02

Operation Strategies

03

Competitive Advantage

04

Operation Performance

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Competitive Advantage
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Industry leading in vertically integrated manufacturer ability for the semiconductor equipment

Completely management system on design, manufacturing, quality and supply chain

Having crucial technology and obtain manufacturing process certificates

Semiconductor Fab automation and high-performance cleaner technology

Fields-crossed RD and integrated capacity of optics , machinery, electronics control, software and process

Comprehensive automation systems and output technology ability

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Operation Performance
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01

Company Profile

02

Operation Strategies

03

Competitive Advantage

04

Operation Performance

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(Unit: NT$m)

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9,000
7,838
8,000
+45%
7,000
6,000 5,409
+18%
5,000 4,603
3,897
4,000
3,000
2,000
1,000
-
2014 2015 2016 2017H1
Consolidated revenue Growth Rate
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Dividend Policy	Dividend Policy
		2014	2015	2016
	EPS(NT$)	5.38	8.11	9.05
	Cash DPS(NT$)	1	4	4
	Stock DPS(NT$)	-	-	0.5
	Total	1	4	4.5
	Payout ratio(%)	19%	49%	50%

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Thanks for your attention.

京鼎精密科技股份有限公司 Foxsemicon Integrated Technology, Inc.

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