FocalTech — Interim / Quarterly Report 2013

Nov 1, 2013

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October, 2013

Company Profile

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Date of spin-off from SUNPLUS

31th March, 2006

TSE ticker

3545

Capital (as of 13’/9/30) Market Cap. (as of 13’/9/30)

Location

NT$ 1,392 million

NT$ 7,114 million Hsinchu Science Park, Taiwan

Major Shareholders (as of 13’/9/30)

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Sunplus
35%
Others
65%
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Employee Status on 13’/9/30 Master:67% Total # 365 R&D: 73% ISO-14001 ISO-9001:2008 OHSAS-18001:2007

Sony Green Partner

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Company Profile

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

Dividend/ share

Dividend/ share	81% - $0.8 $0.99 2011 78% - $2.8 $3.57 2010 84% - $1.9 $2.25 2009 59% - $1.2 $2.03 2008 - $0.5 $0.6 Stock Payout % Cash EPS 79% $0.7 $0.89 2012 62% $1.2 $2.74 2007 38% $0.3 $2.37 2006
Sony Green Partner ISO-14001

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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
STN	Mono	Calculator/ Watch/ Telephone…

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Product Application
Handset IT & Tablet
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 1 1 1
90%
Other
80%
47 47 47 44
54
54
70% 58 61 61 60 58 62 57
66 Mobile
72
75
60% 79
83
86
50% 7 10 TCON
19 20 9 6
40% 14 5 4
16
13 3
11 AV
30% 16 15 16 14 3
19 16 13
3
18 18 12 2
12 13 4
20% 12 11 16 26 24 7 41 1 Mid
4 8 7 13 16 17 18 13 18 31 4
10% 3 5 12 11 13
12 8 10
7 7 7 8 7
0% 3 5 5 5 4 4 5 5 4 2 2 2 2 STN
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 13'2Q 13'3Q
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Revenue by Customer Mix

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13’ 3Q
13’ 3Q 13’ 2Q 12’ 3Q
Others Others
Others,
2% 4%
3%
TW LCM,
36% TW LCM CN LCM TW LCM
CN LCM, CN LCM 44% 40% 49%
44% 44%
JP LCM
JP LCM, JP LCM,
7%
17% 10%
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Shipments & Vendors

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120,000 TFT STN
100,000
80,000
60,000
40,000
20,000
-
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 13'2Q 13'3Q
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				2009		2010	2011	2012	12'YoY		13'3Q
	TFT Driver ICs			270,735		309,757	264,914	202,753	-23.46%		91,720
	STN Driver ICs			68,275		58,387	39,377	33,768	-14.24%		7,702
	Total			339,010		368,144	304,291	236,521	-22.27%		99,422
Vendors
		Foundry				TSMC, UMC, Vanguard, etc.
		Gold bump				Chipbond, ChipMOS
		Testing & packaging				ASE, Chipbond, Greatek, SPIL,			YTEC, etc.
		Note: in alphabetic order

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Quarterly Income Statement

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Preliminary, Amt: in NT$ M

3 months ended on	2013/9/30	2013/9/30	2013/6/30	2013/6/30	2012/9/30	2012/9/30	QoQ	YoY
Net Revenue	2,315.3	100.0%	2,924.9	100.0%	1,367.5	100.0%	-21%	69%
Cost of Rev.	1,909.4	82.5%	2,370.0	81.0%	1,137.4	83.2%	-19%	68%
Gross Profit	405.9	17.5%	555.0	19.0%	230.0	16.8%	-27%	76%
Op. Exp.	264.4	11.4%	299.4	10.2%	187.4	13.7%	-12%	41%
Income from Op.	141.5	6.1%	255.5	8.7%	42.7	3.1%	-45%	231%
Non-Op. Income & Exp.	-16.7	-0.7%	9.0	0.3%	-11.9	-0.9%	-285%	40%
IBIT	124.8	5.4%	264.6	9.0%	30.8	2.2%	-53%	306%
Income Tax	-20.1	-0.9%	-37.9	-1.3%	(4.7)	-0.3%	-47%	331%
Net Income	104.6	4.5%	226.7	7.7%	26.1	1.9%	-54%	301%
EPS	0.75	0.00	1.63		0.19		-54%	295%
Profit Sharing	22.4		64.9		-
Note: EPS- -based on weighted average outstanding common shares.

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YTD Income Statement

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YTD Income Statement	YTD Income Statement	YTD Income Statement	YTD Income Statement	YTD Income Statement	YTD Income Statement
Preliminary, Amt: in NT$ M
	2013 1-3Qs		2012 1-3Qs		YoY
Net Revenue	7,205.7	100.0%	3,110.7	100.0%	132%
Cost of Rev.	5,958.3	82.7%	2,546.4	81.9%	134%
Gross Profit	1,247.4	17.3%	564.2	18.1%	121%
Op. Exp.	766.4	10.6%	469.9	15.1%	63%
Income from Op.	481.0	6.7%	94.3	3.0%	410%
Non-Op. Income & Exp.	6.9	0.1%	-24.3	-0.8%	-128%
IBIT	487.8	6.8%	70.0	2.3%	597%
Income Tax	(75.2)	-1.0%	(9.2)	-0.3%	719%
Net Income	412.7	5.7%	60.9	2.0%	578%
EPS	2.97		0.44		575%
Profit Sharing	87.4		-
Note: EPS- -based on weighted average outstanding common shares.

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Balance Sheets & Key Indices

Preliminary, Amt: in NT$ M

As of	2013/9/30	2013/6/30	2012/9/30	QoQ	YoY
Total Assets	6,652	6,777	3,384	-2%	97%
Cash Equivalent	318	891	407	-64%	-22%
AR	2,639	3,064	1,388	-14%	90%
Inv.	2,480	1,697	1,235	46%	101%
Total Lia.	3,689	3,926	883	-6%	318%
Short-term Loans	517	690	-	-25%
AP	1,877	1,857	715	1%	163%
Convertible Bonds	918	917	-	0%
Shareholder Eqt.	2,963	2,850	2,501	4%	18%
Net CF In (Out)	57	436	(352)	-87%	-116%
CF fm Operation	(1,011)	(701)	(201)	44%	402%
ROE-annualized	19.90%	22.75%	3.22%
AR Days	87	94	114
Inv. Days	88	69	117

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Quarterly Revenue & Exp.

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Quarterly Rev.
NT$ M
2,925
3,000
2,315
2,400 1,896 [1,965]
1,800 1,211 [1,450] 1,150 [1,211] [1,434] [1,608] 1,320 1,168 1,367
1,072 1,038 887 956
1,200 787
644
600
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 13'2Q 13'3Q
Quarterly Opex.
NT$ M %
Opex Op.M
320 15.0
13.4 299
290 12.2
264 12.0
260 10.0
9.9
9.5 231
8.7
230 8.3 9.0
203
200 6.0 187 6.1
5.8 177
4.3 6.0
170 156 156 150 3.9 4.3
141 142 132
141 3.1
140 94 138 149 133 141 4.0 2.1 3.0
110 134
1.5 1.3 1.7
80 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 13'1Q 13'2Q 13'3Q
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Quarterly EBT & EPS

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Quarterly IBIT

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NT$ M EBT EBTM12.7 12.5 %
280
12.0
240 265
8.8 9.2 9.2
200
6.8 8.0
160 5.3 201 9.0
182 5.4
120 4.5 3.8 3.2 3.9 5.0
125
80 107 133 61 111 79 2.7 1.09 1.7 2.7 2.2 74 99 4.0
40
0 29 51 29 33 14 26 31 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 13'1Q 13'2Q 13'3Q
Quarterly EPS
1.80 NT$ 1.63
1.60
1.32
1.40
1.15
1.20
1.00 0.83
0.74 0.75
0.80 0.64
0.59
0.56
0.60 0.46 0.45
0.36
0.32
0.40 0.14 0.22 0.17 0.19
0.07 0.08
0.20
-
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 13'2Q 13'3Q
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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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