FocalTech — Interim / Quarterly Report 2013

Sep 9, 2013

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September, 2013

Company Profile

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Date of spin-off from SUNPLUS

31th March, 2006

TSE ticker

3545

Capital (as of 13’/8/31) Market Cap. (as of 13’/8/31)

Location

NT$ 1,392 million

NT$ 8,173 million Hsinchu Science Park, Taiwan

Major Shareholders (as of 13’/8/31)

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Sunplus
35%
Others
65%
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Employee Status on 13’/8/31 Master:67% Total # 361 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 44
47 47
54
54
70% 58 61 61 60 58 62 57 Mobile
66
72
75
60% 79
86
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 1
8 7 13 16 17 13 18 3
10% 3 5 12 11 13
12 8
7 7 7 8 7
3 5 5 5 4 4 5 5 4 2 2 2
0% 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
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Revenue by Customer Mix

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13’ 2Q
13’ 2Q 13’ 1Q 12’ 2Q
Others Others
Others,
2% 6%
2%
CN LCM
26%
TW LCM, TW LCM TW LCM
CN LCM, 44% CN LCM 45% 48%
44%
45%
JP LCM
JP LCM, JP LCM,
20%
10% 8%
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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	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 13'2Q TFT Driver ICs 270,735 309,757 264,914 202,753 -23.46% 98,397 STN Driver ICs 68,275 58,387 39,377 33,768 -14.24% 9,080 Total 339,010 368,144 304,291 236,521 -22.27% 107,477 Note: in alphabetic order ASE, Chipbond, Greatek, SPIL, YTEC, etc. Testing & packaging Chipbond, ChipMOS Gold bump TSMC, UMC, Vanguard, etc. Foundry Vendors
									2009							2010								2011								2012								12'YoY									13'2Q
		TFT Driver ICs							270,735							309,757								264,914								202,753								-23.46%									98,397
		STN Driver ICs							68,275							58,387								39,377								33,768								-14.24%									9,080
		Total							339,010							368,144								304,291								236,521								-22.27%									107,477

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Quarterly Income Statement

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Audited, Amt: in NT$ M

3 months ended on	2013/6/30	2013/6/30	2013/3/31	2013/3/31	2012/6/30	2012/6/30	QoQ	YoY
Net Revenue	2,924.9	100.0%	1,965.5	100.0%	956.1	100.0%	49%	206%
Cost of Rev.	2,370.0	81.0%	1,679.0	85.4%	786.0	82.2%	41%	202%
Gross Profit	555.0	19.0%	286.5	14.6%	170.1	17.8%	94%	226%
Op. Exp.	299.4	10.2%	202.5	10.3%	150.1	15.7%	48%	99%
Income from Op.	255.5	8.7%	84.0	4.3%	20.0	2.1%	204%	1175%
Non-Op. Income & Exp.	9.0	0.3%	14.5	0.7%	5.7	0.6%	-38%	58%
IBIT	264.6	9.0%	98.5	5.0%	25.8	2.7%	169%	927%
Income Tax	-37.9	-1.3%	-17.1	-0.9%	(2.7)	-0.3%	121%	1329%
Net Income	226.7	7.7%	81.4	4.1%	23.1	2.4%	179%	881%
EPS	1.63	0.00	0.59		0.17		176%	859%
Profit Sharing	64.9		-		-
Note: EPS- -based on weighted average outstanding common shares.

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YTD Income Statement

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Audited, Amt: in NT$ M

	2013 1H	2013 1H	2012 1H	2012 1H	YoY
Net Revenue	4,890.4	100.0%	1,743.2	100.0%	181%
Cost of Rev.	4,048.9	82.8%	1,409.0	80.8%	187%
Gross Profit	841.5	17.2%	334.2	19.2%	152%
Op. Exp.	502.0	10.3%	282.5	16.2%	78%
Income from Op.	339.5	6.9%	51.6	3.0%	557%
Non-Op. Income & Exp.	23.6	0.5%	-12.4	-0.7%	-291%
IBIT	363.1	7.4%	39.3	2.3%	824%
Income Tax	(55.0)	-1.1%	(4.5)	-0.3%	1123%
Net Income	308.0	6.3%	34.8	2.0%	786%
EPS	2.22		0.25		788%
Profit Sharing	64.9		-
Note: EPS- -based on weighted average outstanding common shares.

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Balance Sheets & Key Indices

Audited, Amt: in NT$ M

As of	2013/6/30	2013/3/31	2012/6/30	QoQ	YoY
Total Assets	6,777	5,096	3,631	33%	87%
Cash Equivalent	891	353	1,175	153%	-24%
AR	3,064	2,254	996	36%	207%
Inv.	1,697	1,823	1,232	-7%	38%
Total Lia.	3,926	2,445	1,160	61%	239%
Short-term Loans	690	626	0	10%
AP	1,857	1,577	888	18%	109%
Shareholder Eqt.	2,850	2,651	2,471	8%	15%
Net CF In (Out)	436	120	(44)	263%	-1082%
CF fm Operation	(701)	(196)	376	258%	-287%
ROE-annualized	22.75%	12.48%	2.77%
AR Days	94	98	115
Inv. Days	69	86	141

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Quarterly Revenue & Exp.

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Quarterly Rev.

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NT$ M
2,925
3,000
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
1,200 1,072 1,038 887 787 956 759 785
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 13'07 13'08
Quarterly Opex.
NT$ M %
Opex Op.M
320 15.0
13.4 299
290 12.2
12.0
260 10.0
9.9
9.5 231
8.7
230 8.3 9.0
203
200 6.0 187
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
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Quarterly EBT & EPS

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Quarterly IBIT

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NT$ M EBT EBTM 12.7 12.5 %
280
12.0
265
240
8.8 9.2 9.2
200
6.8 8.0
160 5.3 201 9.0
182
120 4.5 3.8 3.2 3.9 5.0
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
Quarterly EPS
2.00 NT$
1.63
1.50 1.32
1.15
1.00 0.83
0.74
0.64
0.56 0.59
0.46 0.45
0.36
0.50 0.32
0.14 0.22 0.17 0.19
0.07 0.08
-
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
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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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