FocalTech — Interim / Quarterly Report 2021

Feb 24, 2022

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敦泰電子 法人說明會 (3545)

FocalTech Investor Conference

2022/02/24

The world leader in human machine interface solutions

Agenda

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• 2021 Q4 and 2021 Annual Result Summary

• Future Outlook

• New Products

• Q&A

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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免責聲明DISCLAIMER

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• 本簡報之內容可能包括本公司基於從各項來源所取得的資訊，對於營運、財務狀況與企業發展情形的前瞻性預估。

• This presentation may contain “forward-looking statements” which may include projections on future results of operations, financial condition, and business prospects based on our own information and other sources.

• 因為包括但不限於市場需求、價格波動、競爭態勢、供應鏈變動、全球經濟局勢、匯率波動及其他本公司無控制力之風 險等各種因素，實際的營運、財務狀況與企業發展情形，可能會與本公司於預測中明示或默示敘述有差異。

• The actual results of operations, financial condition, and business prospects may differ from those explicitly or implicitly indicated in those forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, supply chain issues, global economic conditions, exchange rate fluctuation and other risks and factors beyond FocalTech’s controls.

• 本簡報之內容若有對未來之前瞻性預估，僅反映本公司於發佈當時之看法。本公司並無義務於日後情況變更時，更新前瞻 預估。

• The forward-looking statements in this presentation, if any, only reflect the current view of FocalTech as of the date of its release. FocalTech undertakes no obligation to update those forward-looking statements for events or circumstances that occur subsequently.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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2021 Q4 Result Summary /110年第4季營運成果

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 2021年第4季營收為55.97億元，較2020年同期相比大幅提升30%。獲利表現方面，第 4季毛利率為49.6%，較上一季度略為下滑，但符合預期，較2020年同期顯著成長18 個百分點；稅後淨利13.3億元，年增1.4倍，為公司歷史記錄第三高。  Fourth quarter revenue was NT$5.59 billion, up by 30% year-over-year. Gross margin reached 49.6%, slightly down quarter-over-quarter but still in line with expectations, and significantly increased by 18 percentage points year-over-year. Net profit after tax was NT$1.33 billion, rose by 140% year-over-year, which was the third highest result since our establishment.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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2021 Annual Result 年度營運成果 Summary /110

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 2021全年度合併營業額達NT$219.91億元，較2020年度有近6成的成長。毛利率為 48.8%，比2020年提高24個百分點。營業淨利NT$71.3億元，相較2020年大幅增加近6 倍。稅後淨利為NT$60.9億，基本每股盈餘NT$30.23元，創下公司成立以來的最佳 表現。

 2021 annual consolidated revenue reached NT$21.99 billion, increased by around 60% compared to the previous year. Gross margin was 48.8%, operating income was NT$7.13 billion, grew by nearly 6 times compared to 2020. Net profit after tax was NT$6.09 billion, with basic EPS of NT$30.23, which marked the Company’s historical high.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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Q4 21’Income Statement /110年第4季損益表

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Unit: NT$ Million /單位: 新台幣佰萬元

	21' Q4	21' Q3	QoQ	20' Q4	YoY
Revenue/營業收入	5,597	6,272	-11%	4,307	30%
Gross Profit/營業毛利	2,778	3,415	-19%	1,361	104%
Gross Margin/營業毛利率	49.6%	54.4%	-4.8%	31.6%	18.0%
Operating Expense/營業費用	1,029	998	3%	747	38%
Operating Income/營業淨利	1,749	2,417	-28%	614	185%
Non Operating Income/營業外收入	70	-12		27	159%
Profit before Tax/稅前淨利	1,819	2,405	-24%	641	184%
Profit after Tax/稅後淨利	1,333	1,827	-27%	555	140%
EPS(Basic)/每股盈餘(基本)	6.51	9.02		2.83

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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2021 Income Statement /110 年損益表

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Unit: NT$ Million /單位: 新台幣佰萬元

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2021 2020 YoY
Revenue/ 營業收入 21,991 13,800 59%
Gross Profit/ 營業毛利 10,729 3,429 213%
Gross Margin/ 營業毛利率 48.8% 24.8% 23.9%
Operating Expense/ 營業費用 3,599 2,398 50%
Operating Income/ 營業淨利 7,130 1,031 592%
Non Operating Income/ 營業外收入 473 126 275%
Profit before Tax/ 稅前淨利 7,603 1,157 557%
Profit after Tax/ 稅後淨利 6,097 983 520%
EPS(Basic)/ 每股盈餘(基本) 30.23 3.97
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CONFIDENTIAL

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Q4 21’Balance Sheet / 110年第4季資產負債表

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Unit: NT$ Million /單位: 新台幣佰萬元

	21'Q4	21'Q3	QoQ	20'Q4	YoY
Cash & Market Securities/現金及流動金融資產	11,103	9,686	15%	5,880	89%
Accounts Receivable/應收帳款	3,255	2,575	26%	1,634	99%
Inventory/存貨	3,822	2,494	53%	1,755	118%
Other Current Assets/其他流動資產	536	486	10%	185	190%
Non Current Asset/非流動資產	6,616	6,227	6%	2,891	129%
Total Assets/資產總計	25,332	21,468	18%	12,345	105%
Current Liabilities/流動負債	6,415	6,490	-1%	3,956	62%
Non Current Liabilities/非流動負債	5,269	2,783	89%	577	813%
Owner's Equity/股東權益	13,648	12,195	12%	7,812	75%
Total Liabilities and Owners' Equity/負債與權益	25,332	21,468	18%	12,345	105%

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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Future Outlook /未來展望 (I)

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• 目前半導體供應鏈產能緊張的狀況，已開始有所疏緩 ； 但由於部分製程仍極短缺， 預期2022年整體供應鏈長短料的情況仍需一段整理期。

 In the past few months, the semiconductor shortage problem has shown some sporadic improvements. Nevertheless, as shortage remains severe at some foundry process nodes, a wide-ranged relief may still hard to reach in the foreseeable future.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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Future Outlook /未來展望 (II)

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• 在終端市場方面，2021年第四季高階手機庫存略為偏高，惟中低階手機需求依然旺 盛，長短料不平衡的情況持續。春節期間庫存的調整狀況，為影響接下來供需的走 向的因素之一。

 In the fourth quarter of 2021, inventory level of high-end cellphones rose slightly, while demand for mid-to-low end products remained strong, resulted in sustaining material mismatch. Hence, inventory adjustment during Chinese New Year would be one of the factors that influence supply and demand going forward.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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Future Outlook /未來展望 (III)

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• 展望2022年，歷經過去半導體上下游產能緊張的狀況，公司已提早規劃面對未來市場 的不定性，完成了與下游關鍵客戶簽訂多年長期合約，以確保未來訂單及營運成長無 虞。相對的，敦泰也與晶圓代工廠綁定長約以確保產能的供給，2022年供應量可超越 2021年。

• FocalTech is well prepared for future market uncertainty, as the Company has signed long term agreements with both key customers and major foundry partners. Hence, foundry capacity in 2022 will surpass 2021.

• 為減緩未來部分晶圓及生產材料調漲對毛利的影響，敦泰也將加速降低生產及營運成 本並列為本年度的重點目標。

• In order to alleviate the margin impact from potential future cost increase, FocalTech has set manufacturing and operating cost reduction as our key focus in 2022.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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New Products /新產品佈局 (I)

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 在策略佈局上，敦泰將持續致力於分散市場及優化產品組合。運用在LCD IDC (TDDI)技術的領先地位作為基礎，在車用及工控等產品及市場的拓展達到加乘效 果，在2021年敦泰已成為車用IDC晶片的全球領導廠商。電動車、自駕車等汽車 智慧化的趨勢將持續增加車用內嵌式面板的需求，成為公司未來成長的重要動力。

 FocalTech has always been dedicated in market diversification and product portfolio optimization. Leveraging our advantage as the inventor and pioneer of IDC(TDDI), FocalTech has enjoyed the positive synergy and penetrated into both automotive and industrial markets, and was recognized as a leader in automotive IDC market in 2021. Going forward, persisting growth momentum in automotive is expected, as the trends of electric, autonomous and intelligent vehicles continue to drive the adoption of incell touch screens.

CONFIDENTIAL

© 2021 FocalTech Systems Co., Ltd. All rights reserved

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New Products /新產品佈局 (II)

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 在AMOLED方面，敦泰穩定的技術能力與品質深獲客戶信賴，觸控產品出貨數量逐 年提升，預期2022年將持續擴大AMOLED手機的市場佔有率。在穿戴式應用上驅動 IC產品也已開始量產，另外新IDC (TDDI) 已開發並驗証完成，預期IDC將是 AMOLED穿戴式市場中規格最高、也最具競爭力的產品。

 Regarding AMOLED, FocalTech has earned customers' trust with stable quality and technical performance. Our shipments for mobile phone touch controllers increased rapidly in recent years, and will proceed to expand our market share in 2022. For wearable applications, AMOLED driver was already in the mass production stage, followed by IDC (TDDI) now ready for its debut, standing as the most advanced and competitive application in the AMOLED market.

CONFIDENTIAL

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THANKS
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Copyright © 2021 FocalTech Systems Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those contained in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. FocalTech makes no warranties, express, implied or otherwise, regarding the accuracy or completeness of those information. FocalTech may change the information at any time without keeping recipients updated of any information contained in this document.

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www.focaltech-electronics.com