FocalTech — Annual Report 2012

Apr 8, 2013

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Inspire Your Vision

April, 2013

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Company Profile

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Date of spin-off from SUNPLUS 31th March, 2006 TSE ticker 3545 NT$ 1,390 million Capital (as of 13’/3/31) Market Cap. (as of 13’/3/31) NT$ 6,591 million Location Hsinchu Science Park, Taiwan Major Shareholders (as of 13’/3/31) Sunplus 35% Others 65% Employee Status on 13’/3/31 Master:66 Total # 332

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Company Profile

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Board members Director # 9 (incl. 3 independent directors)

Dividend/ share	EPS Cash Stock Payout %
	$0.6 2006 $2.37 $0.3 38%
	$0.5 2007 $2.74 $1.2 62%
	2008 $2.03 $1.2 - 59%
	2009 $2.25 $1.9 - 84%
	2010 $3.57 $2.8 - 78%
	2011 $0.99 $0.8 - 81%
	2012 $0.89

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Product Category

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Category	Product	Application
Large	TCON (Timing Controller)	TV/ NB/ Monitor
Mid.	Source/ Gate Driver/ Feature Driver	Portable DVD/ Digital photo frame/ Netbook/ Tablet PC/ E-book
Small	SoC	AV (DSC/ GPS/ MP3/ E-tag/ Multi-functional printer…)
	SoC	Mobile phone

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Product Application

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Handset IT & Tablet
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Consumer
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Revenue by Product Mix

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100% 1 1 1 1 1 1 1 1 1 1 2 1 11 1
90%
Other
80%
47 44
47 47
54
54
70% 58 61 61 60 58 62 57 Mobile
66
72
75
60% 79
TCON
50% 10
7
19 20 9 6
40% 14 5 4
16
13 11 3 AV
30% 16 15 16 14 3
19 16 13
3
18 18 12 2
12 13 4
20% 1
11 26 24 7 4 Mid
12
4 16 18
8 7 13 16 17 13 18
10% 3 5 12 11 13
12
7 7 7 8 7
3 5 5 5 4 4 5 5 4 2 2
0% STN
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Revenue by Customer Mix

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13’ 1Q
13’ 1Q 12’ 4Q 12’ 1Q
Others Others
Others,
2% CN LCM 6%
2%
17%
TW LCM, CN LCM
CN LCM, 45% TW LCM
38%
45% 50% JP LCM TW LCM
10% 67%
JP LCM, JP LCM,
8% 10%
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Shipments & Vendors

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- 20,000 40,000 60,000 80,000 100,000 120,000	- 20,000 40,000 60,000 80,000 100,000 120,000		TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN	TFT STN
								2009							2010					2011						2012							12'YoY							13'1Q
	TFT Driver ICs							270,735							309,757					264,914						202,753							-23.46%							71,624
	STN Driver ICs							68,275							58,387					39,377						33,768							-14.24%							7,354
	Total							339,010							368,144					304,291						236,521							-22.27%							78,978

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Vendors
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Foundry

TSMC, UMC, Vanguard, etc.

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Quarterly Income Statement

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Audited, Amt: in NT$ M

3 months ended on	2012/12/31	2012/12/31	2012/9/30	2012/9/30	2011/12/31	2011/12/31	QoQ	YoY
Net Sales	1,896.0	100.0%	1,367.5	100.0%	887.4	100.0%	39%	114%
COGS	1,591.9	84.0%	1,137.4	83.2%	716.4	80.7%	40%	122%
Gross Profit	304.1	16.0%	230.0	16.8%	171.0	19.3%	32%	78%
Op. Exp.	230.7	12.2%	187.4	13.7%	155.7	17.5%	23%	48%
Op. Income	73.5	3.9%	42.7	3.1%	15.4	1.7%	72%	379%
Non-Op. Income	7.5	0.4%	7.8	0.6%	-6.3	-0.7%	-5%	-220%
Non-Op. Exp	6.7	0.4%	19.8	1.4%	0.5	0.1%	-66%	1347%
EBT	74.2	3.9%	30.8	2.2%	8.6	1.0%	141%	760%
Income Tax Gain (Exp)	-11.8	-0.6%	(4.7)	-0.3%	1.5	0.2%	152%	-874%
Net Income	62.4	3.3%	26.1	1.9%	10.2	1.1%	139%	515%
EPS	0.45	0.00	0.19		0.07		137%	543%

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YTD Income Statement

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Audited, Amt: in NT$ M

	2012	2012	2011	2011	YoY
Net Sales	5,006.7	100.0%	4,165.5	100.0%	20%
COGS	4,138.3	82.7%	3,440.8	82.6%	20%
Gross Profit	868.4	17.3%	724.7	17.4%	20%
Op. Exp.	700.6	14.0%	579.8	13.9%	21%
Op. Income	167.8	3.4%	144.9	3.5%	16%
Non-Op. Income	27.1	0.5%	38.0	0.9%	-29%
Non-Op. Exp	50.6	1.0%	32.1	0.8%	58%
EBT	144.3	2.9%	150.9	3.6%	-4%
Income Tax	(21.0)	-0.4%	(14.5)	-0.3%	45%
Net Income	123.3	2.5%	136.4	3.3%	-10%
EPS	0.89		0.99		-10%

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Balance Sheets & Key Indices

Audited, Amt: in NT$ M

As of	2012/12/31	2012/9/30	2011/12/31	QoQ	YoY
Total Assets	4,197	3,384	3,166	24%	33%
Cash Equivalent	233	407	811	-65%	-71%
AR	1,954	1,388	1,192	39%	64%
Inv.	1,346	1,235	946	0%	42%
Total Lia.	1,631	883	625	-24%	161%
Short-term Loans	319	-	-
AP	1,071	715	449	-20%	139%
Shareholder Eqt.	2,566	2,501	2,541	1%	1%
Net CF In (Out)	(526)	(352)	160	692%	-430%
CF fm Operation	(374)	(201)	432	-154%	-187%

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Quarterly Sales & Exp.

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Quarterly Sales

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NT$ M 1,896 [1,965]
2,000
1,608
1,450 1,434
1,600 1,320 1,367
1,211 1,150 [1,211] 1,168
1,072 1,038
1,200 956
887
787
644
800
400
0
09'1Q 09'2Q 09'3Q 09'4Q 10'1Q 10'2Q 10'3Q 10'4Q 11'1Q 11'2Q 11'3Q 11'4Q 12'1Q 12'2Q 12'3Q 12'4Q 13'1Q
Quarterly Opex.
NT$ M %
Opex OPM
15.0
260 13.4
12.2 231
230 12.0
10.0
9.9
9.5
200 8.3 187 9.0
177
170
5.8 156 156
141 141 141 142 6.0
6.0 3.9
140 149 4.0 150 3.1
138 133 4.3 132 2.1
134 3.0
110 941.5
1.7
1.3
80 0.0
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Quarterly EBT & EPS

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Quarterly EBT

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200 NT$ M EBT EBTM 12.7 12.5 %
201 12.0
160 8.8 9.2 9.2 182
120 6.8 8.0
5.3
133
111
4.5 107 3.8 3.9
80 3.2
61 79 2.7 9 2.7 2.2 4.0
40 51 1.0 1.7 74
29 29 33 14 26 31
0 0.0
09'1Q 09'2Q 09'3Q 09'4Q 10'1Q 10'2Q 10'3Q 10'4Q 11'1Q 11'2Q 11'3Q 11'4Q 12'1Q 12'2Q 12'3Q 12'4Q
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Quarterly EPS

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1.40 NT$ 1.32
1.15
1.20
1.00
0.83
0.74
0.80
0.64
0.56
0.60 0.46 0.45
0.36
0.32
0.40
0.22
0.17 0.19
0.14
0.20 0.07 0.08
-
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Future Outlook

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• Focus on smartphone & tablet application

• Build complete product portfolio

• Continue investments in new technology

• Collaborate with strategic partners for new application

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Thank you
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Investor Relations: Elsie Lin Tel: 886-3-6661660, Ext. 2717 Email: elsie.lin@orisetech.com