FocalTech — Investor Presentation 2018

Apr 27, 2018

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FocalTech 敦泰電子(3545TT) Investor Conference法人說

2018/4/27

The world leader in human machine interface solutions

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 © 2018 FocalTech Systems Co., Ltd. All rights reserved

2

Q1 18’Income Statement /107年第1季損益表

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Unit in NT$ Million /單位: 新台幣佰萬元

	18' Q1	17' Q4	QoQ
Revenue/ 營業收入	2,613	2,775	-5.8%
Gross Profit/ 營業毛利	525	567	-7.5%
Gross Margin/ 營業毛利率	20.1%	20.4%	↓30bps
Operating Expense/ 營業費用	521	557	-6.5%
Operating Income/ 營業淨利	4	10	-58.8%
Non Operating Income/ 營業外收入	21	18
Profit before Tax/ 稅前淨利	25	28	-11.6%
Profit after Tax/ 稅後淨利	10	(260)
EPS(Basic)/ 每股盈餘(基本)	0.05	(0.87)

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

3

Balance Sheet /資產負債表

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2018.3.31 2017.12.31 QoQ Cash & Market Securities/ 現金及其他金融資產 4,409 4,018 10% Accounts Receivable/ 應收帳款 1,617 1,258 29% Inventory/ 存貨 1,992 2,686 -26% Other Current Assets/ 其他流動資產 248 211 17% Non Current Asset/ 非流動資產 5,362 5,371 0% Total Assets/ 資產總計 13,628 13,544 1% Current Liabilities/ 流動負債 2,594 2,544 2% Non Current Liabilities/ 非流動負債 381 257 48% Owner's Equity/ 股東權益 10,653 10,743 -1% Total Liabilities and Owners' Equity/ 負債與權益 13,628 13,544 1% Net Worthper share/ 每股淨值 36 36 AR Days(Annual Basis) 50 44 InventoryDays(Annual Basis) 101 112 Unit in NT$ Million /單位:新台幣佰萬元	2018.3.31 2017.12.31 QoQ Cash & Market Securities/ 現金及其他金融資產 4,409 4,018 10% Accounts Receivable/ 應收帳款 1,617 1,258 29% Inventory/ 存貨 1,992 2,686 -26% Other Current Assets/ 其他流動資產 248 211 17% Non Current Asset/ 非流動資產 5,362 5,371 0% Total Assets/ 資產總計 13,628 13,544 1% Current Liabilities/ 流動負債 2,594 2,544 2% Non Current Liabilities/ 非流動負債 381 257 48% Owner's Equity/ 股東權益 10,653 10,743 -1% Total Liabilities and Owners' Equity/ 負債與權益 13,628 13,544 1% Net Worthper share/ 每股淨值 36 36 AR Days(Annual Basis) 50 44 InventoryDays(Annual Basis) 101 112 Unit in NT$ Million /單位:新台幣佰萬元	2018.3.31 2017.12.31 QoQ Cash & Market Securities/ 現金及其他金融資產 4,409 4,018 10% Accounts Receivable/ 應收帳款 1,617 1,258 29% Inventory/ 存貨 1,992 2,686 -26% Other Current Assets/ 其他流動資產 248 211 17% Non Current Asset/ 非流動資產 5,362 5,371 0% Total Assets/ 資產總計 13,628 13,544 1% Current Liabilities/ 流動負債 2,594 2,544 2% Non Current Liabilities/ 非流動負債 381 257 48% Owner's Equity/ 股東權益 10,653 10,743 -1% Total Liabilities and Owners' Equity/ 負債與權益 13,628 13,544 1% Net Worthper share/ 每股淨值 36 36 AR Days(Annual Basis) 50 44 InventoryDays(Annual Basis) 101 112 Unit in NT$ Million /單位:新台幣佰萬元	2018.3.31 2017.12.31 QoQ Cash & Market Securities/ 現金及其他金融資產 4,409 4,018 10% Accounts Receivable/ 應收帳款 1,617 1,258 29% Inventory/ 存貨 1,992 2,686 -26% Other Current Assets/ 其他流動資產 248 211 17% Non Current Asset/ 非流動資產 5,362 5,371 0% Total Assets/ 資產總計 13,628 13,544 1% Current Liabilities/ 流動負債 2,594 2,544 2% Non Current Liabilities/ 非流動負債 381 257 48% Owner's Equity/ 股東權益 10,653 10,743 -1% Total Liabilities and Owners' Equity/ 負債與權益 13,628 13,544 1% Net Worthper share/ 每股淨值 36 36 AR Days(Annual Basis) 50 44 InventoryDays(Annual Basis) 101 112 Unit in NT$ Million /單位:新台幣佰萬元
	2018.3.31	2017.12.31	QoQ
Cash & Market Securities/ 現金及其他金融資產	4,409	4,018	10%
Accounts Receivable/ 應收帳款	1,617	1,258	29%
Inventory/ 存貨	1,992	2,686	-26%
Other Current Assets/ 其他流動資產	248	211	17%
Non Current Asset/ 非流動資產	5,362	5,371	0%
Total Assets/ 資產總計	13,628	13,544	1%
Current Liabilities/ 流動負債	2,594	2,544	2%
Non Current Liabilities/ 非流動負債	381	257	48%
Owner's Equity/ 股東權益	10,653	10,743	-1%
Total Liabilities and Owners' Equity/ 負債與權益	13,628	13,544	1%
Net Worthper share/ 每股淨值	36	36
AR Days(Annual Basis)	50	44
InventoryDays(Annual Basis)	101	112

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

4

2018 Q1 Results Summary /107年第1季總結

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• 儘管受到季節性影響，加上大陸智慧型手機市場衰退的衝擊，但受惠於IDC滲透率大 幅提升及客戶提前拉貨效應下，第一季營收達26.13億元，僅季減5.8%，並較去年大 幅成長20.9%，優於市場預期。

• In spite of the seasonal impact and the slowdown in China mainland‘s smart phone market, benefit from the continuing increase in IDC penetration rate and the pull-in effect, the first-quarter revenue result was better than expected.

• 第一季季產品組吅持續優化，雖然IDC比重持續逐季提升，但由於觸控產品線受到較 低毛利率標案集中出貨影響，整體毛利率與上季相當。

• The revenue proportion of IDC kept improving quarterly. However, due to the low margin portion of the out-cell product surged in Q1, the overall gross margin remained about the same as past quarter.

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

5

2018 Q1 Results Summary /107年第1季總結

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• 受到春節長假的影嚮，每年Q1都是全年的營收低點，自2015年敦泰與旭曜吅併後， 今年是首次Q1當季度獲利，營業利益為400萬元，稅後淨利1,000萬元。這顯示敦泰 已經渡過了艱苦的整吅期，吅併綜效開始展現。IDC產品推廣獲得良好成效，使敦泰 的產品在手機面板中取得更高的價值。

 Due to Chinese New Year holidays, Q1 is the traditional low season of the year, After the merger with Orise in 2015, 2018 Q1 was the first profit-making quarter, with an operating profit of NT 4 million and a net profit after tax of NT 10 million. This result demonstrates the recovery of FocalTech’s competitiveness after the merger and the combined synergies start to show. IDC is becoming a mainstream choice in LCD-based smartphone designs, enabling FocalTech’s to enjoy higher value in the mobile phone supply chain.

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

6

Future Outlook /未來展望(1)

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• 根據歷史數據，第二季整體市況及公司業績表現會較第一季成長，但由於大陸手機 市場成長幅度趨緩、美陸貿易戰爭導致關鍵零組件供貨穩定度下降、部分客戶於三 月提前拉貨等影響，Q2的成長將丌至於太顯著。

• According to historical experience, the overall market and our performance in the second quarter typically improves. However, due to the slowdown in the growth rate of China mainland‘s mobile phone market, and the uncertainty on the supply of key components resulted from the possible trade war between China mainland and U.S., we are somewhat conservative on the growth in second quarter.

• 雖然今年大陸智慧型手機市場出貨量難以較去年成長，但全螢幕手機滲透率會大幅 提升，將有助於IDC的市場需求，並為全年度的產品組吅帶來正面幫助。

• China mainland‘s smartphone shipment might not increase this year, but the penetration of full-screen phones will increase significantly, which will drive the IDC market demand, and improve our product mix.

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

7

全螢幕手機滲透率將快速成長

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100.0%
92.1%
90.0%
87.7%
80.0%
71.6%
70.0%
60.0%
50.0%
44.6%
40.0%
30.0%
20.0%
10.0%
8.7%
0.0%
2017 2018(E) 2019(E) 2020(E) 2021(E)
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資料來源：Trendforce 2018

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

8

Future Outlook /未來展望(2)

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• 敦泰持續深耕IDC產品線，除原有COG解決方案以外，也同時提供COF產品。此外，領先 業界推出Interlace規格IC，已得到多家面板廠認證，預期將使敦泰在IDC的市場保持市場 地位。

 FocalTech continues to expand IDC product line, in addition to the original COG solution, but also providing COF products. Recently, the launching of FHD interlace ICs, which had been certified by many panel makers, could enable FocalTech to maintain a solid position in IDC market.

• 隨著生產供應鏈生產成本的提高，目前在部分DDIC產品已受到影嚮，敦泰會適度調漲產 品售價。IDC上下游供應鏈產能，尚未進入穩態，因部份客戶或生產鏈上的廠商備貨或需 求的變化，可能造成短中期產能吃緊的狀況。

 With the increase of production cost, some of the DDIC products have been affected, and FocalTech has reflected on the selling price of some products. The IDC supply chain production capacity has not reached a steady state yet. If any, there could be a short to mid-term supply shortage situation in the near future.

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

9

Future Outlook /未來展望(3)

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• 敦泰光學偵測技術，已逐步和品牌客戶展開吅作，在LCD面板或AMOLED面板全面 屏的基礎上，發展高整吅度的屏下指紋與生物檢測技術，拉開與競爭對手的差距。

• The collaboration with brand customers in optical sensing technology has been in good progress. Tailored for full-screen display, the in-display fingerprint sensing for different types of panels and biometric detection that FocalTech is developing will be the differentiation against competitors.

• 針對AMOLED屏的觸控方面，敦泰早先已開始量產首顆應用於智慧型手機的晶片 FT3517U，今年則將主打適用於全螢幕規格的FT3518，預計Q2會正式量產。而在 穿戴式裝置方面，觸控晶片也持續有更多客戶採用，DDIC晶片更將有新產品問世。

• For the AMOLED panel, FocalTech first Touch Controller chip FT3517U for smartphones had successfully turned mass production last year. Now, new generation touch controller IC for full-screen specification will start shipping in Q2. Stand-alone touch Controller IC continues to be used in wearable devices, and new DDIC for AMOLED will also be available soon.

CONFIDENTIAL © 2018 FocalTech Systems Co., Ltd. All rights reserved

10

Phones with FocalTech IDC Inside in MWC 2018

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New Nokia 6
Zenfone 5 &
& Nokia 7 Plus
Zenfone 5Z
FT8716U
FT8716F
FT8716U COF
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CONFIDENTIAL

© 2018 FocalTech Systems Co., Ltd. All rights reserved

11

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THANKS
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Copyright © 2018 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