FocalTech — Interim / Quarterly Report 2014

May 27, 2014

Inspire Your Vision

May, 2014

Company Profile

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Date of spin-off from SUNPLUS 31th March, 2006

TSE ticker

3545

Capital (as of 14’/4/30)

NT$ 1,402 million

Market Cap. (as of 14’/ 4/30)

NT$ 7,627 million

Location

Hsinchu Science Park, Taiwan

Major Shareholders (as of 14’/4/30)

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Sunplus
34%
Others
66%
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Master:67%
Total # 363
R&D: 73%
ISO-9001:2008 OHSAS-18001:2007
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Employee Status on 14’/ 4/30

Sony Green Partner

ISO-14001 Inspire Your Vision

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Company Profile

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

Dividend/ share	EPS Cash Stock Payout %
	2006 $2.37 $0.3 $0.6 38%
	2007 $2.74 $1.2 $0.5 62%
	2008 $2.03 $1.2 - 59%
	2009 $2.25 $1.9 - 84%
	2010 $3.57 $2.8 - 78%
	2011 $0.99 $0.8 - 81%
	2012 $0.89 $0.7 - 79%
	2013* $2.62 $2.0 - 76%
Sony Green Partner ISO-14001

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Category	Product Application TCON (Timing Controller) NB/ Monitor Source Driver/ Gate Driver/ Feature Driver (SD+TCON) Portable DVD/ Digital photo frame/ Netbook/ Tablet PC/ E-book SoC AV (Wearable device/ DSC/ GPS/ MP3/ E-tag/ Multi-functional printer/ Automobile…) SoC Mobile phone Mono Calculator/ Watch/ Telephone… Product Category	Product Application TCON (Timing Controller) NB/ Monitor Source Driver/ Gate Driver/ Feature Driver (SD+TCON) Portable DVD/ Digital photo frame/ Netbook/ Tablet PC/ E-book SoC AV (Wearable device/ DSC/ GPS/ MP3/ E-tag/ Multi-functional printer/ Automobile…) SoC Mobile phone Mono Calculator/ Watch/ Telephone… Product Category
	Product	Application
Large	TCON (Timing Controller)	NB/ Monitor
Medium	Source Driver/ Gate Driver/ Feature Driver (SD+TCON)	Portable DVD/ Digital photo frame/ Netbook/ Tablet PC/ E-book
Small	SoC	AV (Wearable device/ DSC/ GPS/ MP3/ E-tag/ Multi-functional printer/ Automobile…)
	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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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

8 3 5 7 5 5 4 4 5 5 4 2 2 2 2 2 1 7 ~~12~~ 13 16 26 24 16 17 18 13 ~~11~~ ~~18~~ 13 8 10 9 6 18 18 19 ~~16~~ 14 16 16 13 ~~14~~ 12 7 4 4 3 4 5 ~~4~~ 19 20 9 6 7 ~~10~~ 5 3 ~~4~~ 3 2 3 ~~1~~ 1 1 1 1 47 47 54 54 47 44 ~~58~~ 62 ~~57~~ 66 75 72 ~~79~~ 86 83 83 88 ~~1~~ ~~1~~ ~~1~~ ~~2~~ ~~1~~ ~~1~~ ~~1~~ ~~1~~ ~~1~~ ~~1~~ 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 13'4Q 14'1Q Other Phone TCON AV Medium STN ~~1~~

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Revenue by Customer Mix

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14’ 1Q
13’ 4Q 13’ 1Q
Others
Others,
2%
2%
TW LCM,
32%
TW LCM
CN LCM
CN LCM, 45% 45%
45%
JP LCM
JP LCM,
8%
21%
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LCM: Liquid Crystal Module

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Shipments & Vendors

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Unit: 1,000 pcs

Unit: 1,000pcs
	2010	2011	2012	2013	13'YoY	14'1Q
TFT Driver ICs	309,757	264,914	202,753	356,971	76.06%	97,739
STN Driver ICs	58,387	39,377	33,768	30,158	-10.69%	6,558
Total	368,144	304,291	236,521	387,129	63.68%	104,297

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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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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	2014/3/31		2013/12/31		2013/3/31		QoQ	YoY
Net Revenue	2,611.6	100.0%	2,156.8	100.0%	1,965.5	100.0%	21%	33%
Cost of Rev.	2,207.0	84.5%	1,925.9	89.3%	1,679.0	85.4%	15%	31%
Gross Profit	404.5	15.5%	230.8	10.7%	286.5	14.6%	75%	41%
Op. Exp.	254.4	9.7%	280.1	13.0%	202.5	10.3%	-9%	26%
Income from Op.	150.2	5.8%	-49.3	-2.3%	84.0	4.3%	-405%	79%
Non-Op. Income & Exp.	19.2	0.7%	3.3	0.2%	14.5	0.7%	483%	32%
IBIT	169.4	6.5%	-46.0	-2.1%	98.5	5.0%	-468%	72%
Income Tax	-22.4	-0.9%	-2.9	-0.1%	-17.1	-0.9%	664%	31%
Net Income	147.0	5.6%	-48.9	-2.3%	81.4	4.1%	-401%	81%
EPS	1.06		(0.35)		0.59		-403%	80%
Profit Sharing	26.0		-10.1		-
Note: EPS- -based on weighted average outstanding common shares.

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Balance Sheets & Key Indices

Audited, Amt: in NT$ M

	As of	2014/3/31	2013/12/31	2013/3/31	QoQ	YoY
	Total Assets	6,537	6,314	5,096	4%	28%
	Cash Equivalent	626	383	353	63%	77%
	AR	2,500	2,261	2,254	11%	11%
I	nv.	2,490	2,772	1,823	-10%	37%
	Total Lia.	3,458	3,392	2,445	2%	41%
	Short-term Loans	625	760	626	-18%	0%
	AP	1,474	1,263	1,577	17%	-7%
	Convertible Bonds	926	922	0	0%
	Shareholder Eqt.	3,079	2,922	2,651	5%	16%
	Net CF In (Out)	184	151	120	22%	53%
	CF fm Operation	398	(1,187)	(196)	134%	303%
	ROE-annualized	19.60%	13.26%	12.48%
	AR Days	83	82	98
I	nv. Days	109	95	86

Inspire Your Vision

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Quarterly Revenue & Exp.

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Quarterly Rev.

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NT$ M
2,925
3,000 2,612
2,315
2,157
2,400 1,896 [1,965]
1,800 1,211 [1,434] [1,608] 1,320 1,168 1,367 1,205
1,072 1,038 887 956
1,200 787
600
0
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 13'4Q 14'1Q 14'04
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Quarterly Opex.

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NT$ M % 16.0
Opex Op.M
320 13.4
12.2 299
13.0
290 280
264
8.7
260 8.3 254 10.0
9.5 231
230 6.0 203 6.1 5.8 7.0
4.3 4.0
200 187
177 2.1 4.0
1.7 3.9
170 156 1.3 3.1 4.3
140 133 141 141 141 142 156 132 150 (2.3) 1.0
-2.0
110
80 -5.0
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 13'4Q 14'1Q
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Quarterly EBT & EPS
Quarterly IBIT
NT$ M 12.7 12.5 EBT EBTM %
280 265
12.0
240 9.2 9.0
200 6.5
6.8 8.0
160 5.4
3.8 5.0
120 182 201 3.2 2.2 3.9
80 111 2.7 1.0 1.7 2.7 99 125 169 4.0
40 51 79 9 74
29 33 14 26 31 (46)
0 0.0
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 13'4Q 14'1Q
-40
-80 (2.1) (4.0)
Quarterly EPS
2.0 NT$
1.63
1.5 1.32
1.15
1.06
1.0 0.74 0.75
0.56 0.59
0.45
0.36
0.5
0.14 0.22 0.17 0.19
0.07 0.08
0.0
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 13'4Q 14'1Q
(0.5) (0.35)
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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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