FocalTech — Interim / Quarterly Report 2015

Sep 8, 2015

Name Date

• After two quarters of loss, both operating income and net income turned profitable in Q2.

Q2 轉虧為盈，營業利益及淨利皆為獲利。

• The improved financial results in Q2 basically came from 1) market demand rebound, and 2) product mix improvement. Q2 營運財報的改善，主要來自於市場需求回溫及產品組合變好。

 FocalTech total shipment of Touch Controllers and LCD drivers exceeded 300M units in the first 6 months of 2015. Among them, more than 235M units were for smart phones. 上半年觸控和驅動IC出貨量超過300佰萬顆，其中超過235佰萬顆 為智慧型手機的應用。

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 Q2 Revenue is NT$ 3,202 million, up 32% QoQ. (NT$2,429 million in Q1) 。 Q2 營收為 NT$3,202 佰萬元，季增 32%

• Q2 Gross Margin is 16.8%, up 1.3% QoQ. (15.5% in Q1) ， 。

• Q2 毛利為 16.8% 較 Q1 毛利 15.5% 提升 1.3%

 The operating expense is kept basically identical for two quarters, while the H1 R&D expense is maintained at a level ~11% of H1 total revenue. 。 營業費用兩季基本上一致，其中上半年研發費用約占總營收之 11%

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Unit in NT$ Million /單位: 新台幣佰萬元

	2015 Q1	2015 Q2	2015 H1
Revenue/ 營業收入	2,429	3,202	5,631
Gross Profit/ 營業毛利	376	539	915
_Gross Margin/ _營業毛利率	15.5%	16.8%	16.2%
OperatingExpense/ 營業費用	522	510	1,032
OperatingIncome/ 營業淨利	(146)	29	(117)
Non OperatingIncome/ 營業外收入	96	27	123
Profit before Tax/ 稅前盈餘	(50)	56	6
EPS(Basic)/ 每股盈餘(基本)	(0.13)	0.15	0.02

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----- Start of picture text ----- GFF Hybrid Super IncellCover GlassCover GlassCover GlassTX Sensor &PolarizerPET Film PolarizerOCA RX Sensor Color FilterGlassRX Sensor& PET FilmColor FilterOCAGlassPolarizerVCOM &Color FilterVCOM & Tx Touch SensorGlassSensorTFTGlassIDC ICTFTTFTGlassGlassPolarizerFPCBPolarizerDriver IC Touch ICTx & Driver ICFPCB Rx Touch ICFPCB----- End of picture text -----

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----- Start of picture text ----- TP ControllerIDC(Integrated Driver & Controller)LCD Driver----- End of picture text -----

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Thinner & Lighter

Performance

Better Optical Performance

Simpler Structure: Easier to Make& More Reliable

Cost & Reliability

More Integration, Easier Supply Chain

More Cost Benefits

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• Fingerprint Sensor development continues to be one of the focuses

敦泰持續開發指紋辨識感應IC

• We will concentrate on the area type of sensors

其中以按壓式感應器為主

• Will pursue both types of module with either coating or cover lens

並搭配 Coating ( 薄膜 ) 或 Cover lens( 玻璃 ) 兩種型式模組

• Fingerprint sensor module with coating type is being sampled now. We are aiming to have the first MP within 6 months. 薄膜按壓式之指紋辨識模組已進行送樣，預計半年內量產。

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 The business outlook for the 2H of 2015:

• Business showed a seasonal dip in July but anticipate to rebound in the

2[nd] half of Q3

• 2H will be better than 1H.

2015 下半年展望： 7 月營運稍為下降但 Q3 中旬開始回升；下半年會 比上半年好。

• More new products of both touch controllers and LCD drivers will be introduced to improve product mix.

 Touch controllers with better margins will continue to roll out in 2H.

 For LCD drivers, shipment units of FHD will start to pick up momentum by end of Q3.

觸控和驅動 IC 新產品持續導入市場以改善產品組合。 多款新改良的觸控 IC 亦將陸續於 下半年推出。 FHD 驅動 IC 於 Q3 季底出貨量將顯著提升

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 In-Cell Market: The volume production of our first IDC in HD resolution will start this quarter. The 2[nd] IDC product with FHD resolution is being sampled and volume production will be in Q4 of this year.

In Cell 產品：敦泰第一顆整合單晶片 HD IDC 於第 3 季量產，另 FHD IDC 已送樣並預計於第 4 季量產。

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