FocalTech — Interim / Quarterly Report 2012

Mar 6, 2013

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February, 2013

Company Profile

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Date of spin-off from SUNPLUS

31th March, 2006

TSE ticker

3545

Capital (as of 13’/1/31) Market Cap. (as of 13’/ 1/31)

Location

NT$ 1,388 million

NT$ 5,488 million Hsinchu Science Park, Taiwan

Major Shareholders (as of 13’/ 1/31) Sunplus 35% Others 65% Employee Status on 13’/ 1/31 Master: 67% Total # 330 R&D: 74% Sony Green Partner ISO-14001 ISO-9001:2008 OHSAS-18001:2007

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Company Profile

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

Dividend/ share

Dividend/ share	Dividend/ share
	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 81% $0.8 $0.99 2011 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
90%
Other
80%
47 44
47 47
54
54
70% 58 61 61 60 58 62 57 Mobile
66
72
75
60%
TCON
50% 10
7
19 20 9 6
40% 14 5 4
16 AV
3
13 11
30% 16 15 16 14 3
19 16 13
3
18 18 12 2
12 13 4
20% Mid
11 26 24 7
12
4 16 18
8 7 13 16 17 13 18
10% 3 5 12 11
12
7 7 7 8 3 5 7 5 5 4 4 5 5 4 2 STN
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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Revenue by Customer Mix

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12’ 4Q
12’ 4Q 12’ 3Q 11’ 4Q
Others, CN LCM Others
Others,
4% 14% 5%
2%
CN LCM, JP LCM
38% TW LCM, CN LCM, TW LCM, 6%
50% 49%
40%
TW LCM
75%
JP LCM, JP LCM,
10% 7%
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Shipments & Vendors

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TFT STN

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120,000 TFT STN
100,000
80,000
60,000
40,000
20,000
-
07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4
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	2008	2009	2010	2011	2012	12'YoY
TFT Driver ICs	215,355	270,735	309,757	264,914	202,753	-23.46%
STN Driver ICs	90,290	68,275	58,387	39,377	33,768	-14.24%
Total	305,645	339,010	368,144	304,291	236,521	-22.27%

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Vendors
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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	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%
Employee bonus	24.9		-		2.6
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
	2012		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%
Profit Sharing	24.9		27.5
Note: EPS- -based on weighted average outstanding common shares.

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Balance Sheets & Key Indices

Preliminary, 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 Loan	319	0	0
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%
ROE-annualized	4.83%	3.22%	5.15%
AR Days	115	114	121
Inv. Days	101	117	111
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Quarterly Sales & Exp.

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Quarterly Sales

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2,000 NT$ M 1,896
1,608
1,600 1,431 1,450 1,434 1,367
1,320
1,211
1,200 1,158 [1,210] 1,150 [1,211] 1,168 1,0721,038 956
887
769 787
644 655
800
400
0
08'1Q 08'2Q 08'3Q 08'4Q 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 13'01
Quarterly Opex.
NT$ M %
Opex OPM
15.0
260
13.4 231
230 12.0
12.2
10.0 9.9
200
8.2 187 9.0
7.8 9.5 177
8.3
170
177 5.8 156 6.0 156
5.1 149 150 6.0
140 3.8 138 134 133 141 4.3 142 4.0 3.9
123 148 141 3.1
110 132 1.5 141 1.3 1.7 132 2.1 3.0
94
80 0.0
08'1Q 08'2Q 08'3Q 08'4Q 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 EBT & EPS
Quarterly EBT
NT$ M EBT EBTM 12.7 201 %
200
12.0
160 10.0 8.8 9.2 9.2 12.5
182
120 6.8 8.0
5.7 143 133 5.3
4.6 111
5.1
80 4.5 107 3.8 79 2.7 3.2 1.0 1.7 2.7 3.9 4.0
66 61 14 2.2
40 62 35 51 9 74
29 29 33 26 31
0 0.0
08'1Q 08'2Q 08'3Q 08'4Q 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
Quarterly EPS
1.40 NT$ 1.32
1.15
1.20
1.00
1.00 0.83
0.74
0.80 0.64
0.56
0.50
0.60 0.46 0.45
0.35 0.36
0.32
0.40 0.22
0.18 0.14 0.17 0.19
0.20 0.07 0.08
-
08'1Q 08'2Q 08'3Q 08'4Q 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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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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