FocalTech — Interim / Quarterly Report 2012

Jan 8, 2013

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January, 2013

Company Profile

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Date of spin-off from SUNPLUS

31th March, 2006

TSE ticker

3545

Capital (as of 12’/12/31) Market Cap. (as of 12’/ 12/31)

Location

NT$ 1,387 million

NT$ 5,382 million Hsinchu Science Park, Taiwan

Major Shareholders (as of 12’/ 12/31) Sunplus 35% Others 65% Employee Status on 12’/ 12/31 Master: 67% Total # 327 R&D: 74% 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	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 0 0 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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Audited, Amt: in NT$ M

3 months ended on	2012/9/31	2012/9/31	2012/6/30	2012/6/30	2011/9/31	2011/9/31	QoQ	YoY
Net Sales	1,367.5	100.0%	956.1	100.0%	1,038.2	100.0%	43%	32%
COGS	1,137.4	83.2%	786.0	82.2%	882.7	85.0%	45%	29%
Gross Profit	230.0	16.8%	170.1	17.8%	155.5	15.0%	35%	48%
Op. Exp.	187.4	13.7%	150.1	15.7%	141.7	13.6%	25%	32%
Op. Income	42.7	3.1%	20.0	2.1%	13.8	1.3%	113%	209%
Non-Op. Income	7.8	0.6%	2.5	0.3%	34.6	3.3%	216%	-77%
Non-Op. Exp	19.8	1.4%	-3.2	-0.3%	14.9	1.4%	-710%	32%
EBT	30.8	2.2%	25.8	2.7%	33.4	3.2%	19%	-8%
Income Tax Gain (Exp)	(4.7)	-0.3%	(2.7)	-0.3%	(3.9)	-0.4%	76%	19%
Net Income	26.1	1.9%	23.1	2.4%	29.5	2.8%	13%	-12%
EPS	0.19	0.00	0.17		0.22		12%	-14%
Employee bonus	-		-		5.7
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
Audited, Amt: in NT$ M
	2012 First 3Qs		2011 First 3Qs		YoY
Net Sales	3,110.7	100.0%	3,278.1	100.0%	-5%
COGS	2,546.4	81.9%	2,724.4	83.1%	-7%
Gross Profit	564.2	18.1%	553.7	16.9%	2%
Op. Exp.	469.9	15.1%	424.1	12.9%	11%
Op. Income	94.3	3.0%	129.6	4.0%	-27%
Non-Op. Income	19.6	0.6%	44.2	1.3%	-56%
Non-Op. Exp	43.9	1.4%	31.6	1.0%	39%
EBT	70.0	2.3%	142.2	4.3%	-51%
Income Tax	(9.2)	-0.3%	(16.0)	-0.5%	-43%
Net Income	60.9	2.0%	126.2	3.9%	-52%
EPS	0.44		0.92		-52%
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	2012/9/31	2012/6/30	2011/9/31	QoQ	YoY
Total Assets	3,384	3,631	3,414	-7%	-6%
Cash Equivalent	407	1,175	769	-65%	-53%
AR	1,388	996	1,377	39%	28%
Inv.	1,235	1,232	1,050	0%	-17%
Total Lia.	883	1,160	884	-24%	-31%
AP	715	888	713	-20%	-24%
Shareholder Eqt.	2,501	2,471	2,530	1%	2%
Net CF In (Out)	(352)	(44)	12	692%	463%
CF fm Operation	(201)	376	380	-154%	1%
ROE-annualized	3.22%	2.77%	6.37%
AR Days	114	115	123
Inv. Days	117	141	110

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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
1,431 1,450 1,434
1,600 1,320 1,367
1,211
1,113 [1,2251,1581,210] 1,150 [1,211]
1,1681,0721,038
1,200 915 887 956
769 787
717
644
800
400
0
07'1Q 07'2Q 07'3Q 07'4Q 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 Opex.
NT$M Opex % of sales %
187
17.0
15.7 177 177
180 17.7
17.2
16.8
15.7
156 142 156
148 149 14.0
150 14.7 138 141 141 141 150
132 134 133 13.6 132 13.7
13.2
123 12.2
120 112 103 118 12.4 10.2 12.1 11.0
103 11.7
11.4
10.9
11.0 11.0 10.7
11.3 94
9.6 10.6
9.3
90 8.0
07'1Q 07'2Q 07'3Q 07'4Q 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
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Quarterly EBT & EPS Quarterly EBT

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200 NT$ M 12.3 EBT % of sales 12.7 201 %
10.0 12.0
10.1
160 9.2
8.8 9.2
182 12.5
124
120 3.8 6.4 137 143 133 79 8.0
5.7 5.1 4.6 5.3 51
80 4.5 111 33 31
14 26
61 6.8 29 9 4.0
66 107
40 28 59 62 1.7
1.0
35 29 3.8 2.7 3.2 2.7 2.2
0 0.0
07'1Q 07'2Q 07'3Q 07'4Q 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
Quarterly EPS
1.40 NT$ 1.32
1.15
1.20
1.00
0.97
0.93
1.00
0.83
0.74
0.80 0.64
0.56
0.50
0.60 0.45 0.46
0.35 0.36
0.32
0.40 0.23
0.18 0.14 [0.22] 0.17 [0.19]
0.20 0.07 0.08
-
07'1Q 07'2Q 07'3Q 07'4Q 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
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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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