FocalTech — Interim / Quarterly Report 2013

Jun 26, 2013

Inspire Your Vision

June, 2013

Company Profile

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Date of spin-off from SUNPLUS

31th March, 2006

TSE ticker

3545

Capital (as of 13’/5/31) Market Cap. (as of 13’/5/31)

Location

NT$ 1,391 million

NT$ 7,596 million Hsinchu Science Park, Taiwan

Major Shareholders (as of 13’/5/31)

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Sunplus
35%
Others
65%
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Employee Status on 13’/5/31 Master:66% Total # 344 R&D: 72% 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
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
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
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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 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							13'1Q
		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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Quarterly Income Statement

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Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement	Quarterly Income Statement
Audited, Amt: in NT$ M
3 months ended on	2013/3/31		2012/12/31		2012/3/31		QoQ	YoY
Net Revenue	1,965.5	100.0%	1,896.0	100.0%	787.1	100.0%	4%	150%
Cost of Rev.	1,679.0	85.4%	1,591.9	84.0%	623.0	79.2%	5%	169%
Gross Profit	286.5	14.6%	304.1	16.0%	164.0	20.8%	-6%	75%
Op. Exp.	202.5	10.3%	230.7	12.2%	132.4	16.8%	-12%	53%
Income from Op.	84.0	4.3%	73.5	3.9%	31.6	4.0%	14%	166%
Non-Op. Income & Exp.	14.5	0.7%	.8	0.0%	-18.1	-2.3%	1837%	-180%
IBIT	98.5	5.0%	74.2	3.9%	13.5	1.7%	33%	629%
Income Tax	-17.1	-0.9%	-11.8	-0.6%	(1.9)	-0.2%	45%	827%
Net Income	81.4	4.1%	62.4	3.3%	11.7	1.5%	30%	597%
EPS	0.59	0.00	0.45		0.08		31%	638%
Profit Sharing	-		24.9		-
Note: EPS- -based on weighted average outstanding common shares.

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Balance Sheets & Key Indices

Audited, Amt: in NT$ M

As of	2013/3/31	2012/12/31	2012/3/31	QoQ	YoY
Total Assets	5,096	4,197	3,199	21%	59%
Cash Equivalent	353	233	974	52%	-64%
AR	2,254	1,954	1,061	15%	113%
Inv.	1,823	1,346	946	35%	93%
Total Lia.	2,445	1,631	642	50%	281%
Short-term Loans	626	319	-	96%
AP	1,577	1,071	497	47%	217%
Shareholder Eqt.	2,651	2,566	2,557	3%	4%
Net CF In (Out)	120	(526)	(119)	-123%	-201%
CF fm Operation	(196)	(374)	160	-48%	-222%
ROE-annualized	12.48%	4.83%	1.83%
AR Days	98	115	131
Inv. Days	86	101	139

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Quarterly Revenue & Exp.

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Quarterly Rev.

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NT$ M 1,965
1,896
2,000
1,608
1,450 1,434
1,600 1,367
1,320
1,211 1,150 1,211 1,168
1,072 1,038 1,039
1,200 956 941
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 13'04 13'05
Quarterly Opex.
NT$ M %
Opex Op.M
15.0
260 13.4
12.2 231
230 12.0
10.0
9.9 9.5 203
200 8.3 187 9.0
177
170
5.8 156 141 156
150
141 6.0 141 142 132 3.9 4.3 6.0
140 149 4.0 3.1
133
138 4.3 2.1
134 3.0
110 94
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
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Quarterly EBT & EPS
Quarterly IBIT
NT$ M EBT EBTM 12.7 12.5 %
200
12.0
201
160 8.8 9.2 9.2 182
99
120 6.8 8.0
5.3
133 111 5.0
80 4.5 107 3.8 3.2 3.9
61 79 2.7 9 2.7 2.2 4.0
40 51 1.0 1.7 74
33
29 29 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 13'1Q
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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
0.59
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
-
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
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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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