FocalTech — Investor Presentation 2018

Dec 6, 2018

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敦泰電子(3545)法人說明會

FocalTech Investor Conference

2018/12

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

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Q3 18’Income Statement /107年第3季損益表

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Unit�in�NT$�Million�/單位:�新台幣佰萬元

	18'Q3	18'Q2	QoQ	17'Q3	YoY
Revenue/營業收入	2,530	2,733	-7.4%	3,265	-22.5%
GrossProfit/營業毛利	618	589	4.9%	673	-8.2%
GrossMargin/營業毛利率	24.4%	21.6%	↑287bps	20.6%	↑384bps
OperatingExpense/營業費用	586	552	6.2%	543	7.9%
OperatingIncome/營業淨利	32	37	-14.0%	129	-75.2%
NonOperatingIncome/營業外收入	38	67	-42.4%	22	72.7%
ProfitbeforeTax/稅前淨利	71	104	-32.2%	151	-53.0%
ProfitafterTax/稅後淨利	76	80	-4.6%	134	-43.3%
EPS(Basic)/每股盈餘(基本)	0.30	0.31		0.49

CONFIDENTIAL

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

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Q3 18’Balance Sheet / 107年第3季資產負債表

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Unit�in�NT$�Million�/單位:�新台幣佰萬元

	2018.9.30	2018.6.30	QoQ	2017.9.30	YoY
Cash & Market Securities/ 現金及其他金融資產	5,223	5,336	‐2.1%	4,806	8.7%
Accounts Receivable/ 應收帳款	1,177	1,780	‐33.9%	1,496	‐21.3%
Inventory/ 存貨	2,385	2,152	10.8%	3,345	‐28.7%
Other Current Assets/ 其他流動資產	215	223	‐3.6%	222	‐3.2%
Non Current Asset/ 非流動資產	5,331	5,333	0.0%	5,438	‐2.0%
Total Assets/ 資產總計	14,331	14,824	‐3.3%	15,307	‐6.4%
Current Liabilities/ 流動負債	3,277	3,474	‐5.7%	3,849	‐14.9%
Non Current Liabilities/非流動負債	325	497	‐34.6%	416	‐21.9%
Owner's Equity/ 股東權益	10,729	10,853	‐1.1%	11,042	‐2.8%
Total Liabilities and Owners' Equity/ 負債與權益	14,331	14,824	‐3.3%	15,307	‐6.4%
Net Worthper share/ 每股淨值	35.8	36.2		36.98
AR Days(Annual Basis)	53	56		48
InventoryDays(Annual Basis)	107	87		127

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

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2018 Q3 Results Summary /107年第3季總結

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• 雖然敦泰受到晶圓代工產能限制，無法享受IDC市場的高速成長，但充分利用原本的庫存，成功地保持 第3季IDC的出貨量與第2季相當，另外傳統的觸控晶片及DDIC晶片方面，整體表現比預期強勁，使得 第3季營收僅季減7.4%。

• The�production�volume�of�IDC�in�Q3�was�constrained�by�limited��wafer�supply.��However,�with� the�supply�from�spare�inventory,�the�IDC�shipment�in�Q3�remained�at�a�level�similar�to�Q2.� Furthermore,�the�touch�controller�IC�and�DDIC�business�had��a�stronger�than�expected� quarter.�This�resulted�in�only�a�7.4%�decrease��in�Q3�revenue.

• 第3季雖然營收衰退，但受益於產品組合的改善、生產成本下降及產品漲價效益，毛利率跳升2.87個百 分點，達24.4%，一舉創下敦泰與旭曜合併後單季新高紀錄。

• Even�with�declined�revenue�in�Q3,�the�gross�margin�rose�287 bps,�reaching�24.4%,�which�was� a�record�high�after�merger�of�FocalTech and�Orise.�This�was�achieved�by�the�combination�of�� better�product�portfolio,�lower�production�cost�and�price�hike�on�selected�products.�

CONFIDENTIAL

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

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2018 Q3 Results Summary /107年第3季總結

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• 受惠於毛利率提升，第3季變營業利益為新台幣3,227萬元，稅後淨利為7,6215萬元，每股盈 餘0.3元，與第2季表現幾乎持平。

• Benefiting�from�the�improvement�in�gross�margin,�the�operating�profit�is�NTD 32.27� million,�which�yields�a�net�profit�after�tax�of�NTD�76.21�million.�This�gives�NTD�0.30� earnings�per�share�for�Q3.�

• 為捍衛敦泰同仁多年研發成果、公司利益及股東權益，於第3季正式對聯詠公司提起專利侵權 訴訟。也對聯詠公司涉嫌侵權而所造成敦泰市占率流失等的經濟損失，針對聯詠的兩項代表性 (FHD及HD)產品，向智慧財產法院聲請定暫時狀態處分。

• In�order to�protect�and�safeguard�the�interest�of�company�as�well�as�years�of� hardworking�R&D�results�by�all�colleagues,�FocalTech officially�filed�a�patent� infringement�lawsuit�against�Novatek in�Q3.�At�the�same�time,�FocalTech also�filed� preliminary�injunction�pleas�on�two�products�(FHD�and�HD)�produced�by�Novatek,� which�both�are�suspected�of�infringement�of�FocalTech's�patents.�

CONFIDENTIAL

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

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Future Outlook /未來展望(1)

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• 從第4季開始，因著手機內嵌式面板市場需求持續熱絡，使得敦泰IDC產品庫存接近耗盡，供不應求； 所幸新的貨源將於第4季下半逐步貢獻，故預期IDC出貨將有機會接近第3季水準，故儘管第4季是智 慧型手機市場傳統淡季，敦泰仍可望有優於產業平均水準的營運表現。

• The�demand�of�in-cell�smartphone�panel�is�expected�to�remain�strong�in�Q4,�which�may� deplete�FocalTech current�IDC�inventory.�However,�more�sources�of�foundry�wafers�have� begun�to�flow�in�the�production�line.�These�additional�supplies�will�reach�market�in�the� bottom�half�of�Q4. The�total�IDC�shipment�in�Q4�will�be�at�similar�level�as�Q3.�Therefore,� despite�Q4�is�typically�a�slow�quarter,�we�expect�a�performance�which�is�better�than�industry� average.

• 預期第4季的產品平均售價將維持穩定，而從2019第1季度起IDC的短缺情況將會明顯紓解。

• It�is�expected�that�ASP�will�be�maintained�in�Q4.�We�also�expect�to�see�a�noticeable�relief�in� the�IDC�wafer�shortage�at�FocalTech starting�Q1�of�2019.

CONFIDENTIAL

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

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Future Outlook /未來展望(2)

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• 在AMOLED相關產品方面，支持AMOLED手機面板的觸控晶片出貨量持續增加，至於顯示驅動晶片也 將於明年第1季開始量產。

• Shipment�of�touch�controller�IC�for�the�AMOLED�panels�continue�to�expand.�As�to�the�display� drivers�for�AMOLED�panels,�the�first�product�is�being�verified�by�customers�,�and�would�turn� mass�production�in�early�2019.

• 在車用相關的產品方面,�敦泰支持外掛式的觸控產品已成功通過AEC-Q100車載認証，另外支持內嵌式 LCD面板的晶片也在客戶端進行測試認證中，預料敦泰在IDC產品的開發將持續領先，率先量產全球首 顆專門為車載市場使用，整合觸控與驅動功能的IDC產品。

• FocalTech has�been�in�preparation�to�expand�the�business�into�automotive�market for�years.� The�first�touch�controller�successfully�passed�AEC-Q100�certification,�and�has�been�verified�by� multiple�customers.�FocalTech has�also�successfully�developed�the�world's�first�IDC�� designated�for�automotive�market.�This�IDC�is�now�being�verified�by�customers.

CONFIDENTIAL

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

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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

Smartphones with FocalTech Inside

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Lenovo Model Name: Z5 LCM Size: 6.2” IC Solution: FT8716F Touch points: Multi

NOKIA

Model Name: Nokia7 Plus LCM Size: 6.0” IC Solution: FT8716U(COF) Touch points: Multi

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HUAWEI

HUAWEI Model Name: 荣耀 10 LCM Size: 5.8” IC Solution: FT5446/OTM1911 Touch points: Multi

Model Name: nova3e LCM Size: 5.8” IC Solution: FT5446/OTM1911 Touch points: Multi

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smartisan Model Name: 坚果 Pro2S LCM Size:6.01” IC Solution: FT3518 Touch points: Multi

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HUAWEI

Model Name: nova3/3i LCM Size: 6.3” IC Solution: FT8719 Touch points: Multi

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CONFIDENTIAL

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

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Wearables with FocalTech Inside

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GoPro

Louis Vuitton

Model Name: Hero 7 LCM Size: 1.95” IC Solution: FT3306 Touch points: True two points

Model Name: Tambour Horizon LCM Size: 1.29” IC Solution: FT3207 Touch points: True two points

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Montblanc
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Nixon

Model Name: Summit LCM Size: 1.4” IC Solution: FT3207 Touch points: True two points

Model Name: Nixon Mission LCM Size: 1.4” IC Solution: FT3207 Touch points: True two points

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Guess
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Model Name: Connect Touch LCM Size: 1.39” IC Solution: FT3207 Touch points: True two points

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Adidas

Model Name: Smart Run LCM Size: 1.45” IC Solution: FT6206 Touch points: Single Point + Gesture

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

CONFIDENTIAL

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Others Products with FocalTech Inside

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凌度BLACKVIEW

SONY Model Name ： Camera LCM Size: 3.0”

Amazon Echo

Model Name: Smart Speaker LCM Size: 10.1” IC Solution: FT5726 Touch points: Multi

Application: Automotive Model Name ： CarLog LCM Size: 7.84” IC Solution: OTA7290B

IC Solution: FT3327 / OTA5601A Touch points: True two points

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Panasonic

XiaoYuZaiJia

ASUS

Model Name: Smart TV LCM Size: 15” IC Solution: FT5606 Touch points: True two points

Model Name: XiaoYuZaiJia LCM Size: 8” IC Solution: FT3617 Touch points: Multi

Model Name: Touch Pad LCM Size: 4.6” IC Solution: FT5436 Touch points: Multi

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LG

Model Name: Smart Washer LCM Size: 7.0” IC Solution: FT7311 Touch points: Multi

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Ubiquiti

Model Name: Video Camera LCM Size: 1.96” IC Solution: FT3367 Touch points: Multi

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

CONFIDENTIAL

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Under Display Fingerprint Booms from 2019

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source：IHS 2018

CONFIDENTIAL

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

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Future Outlook /未來展望(Extended)

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• 光學式指紋辨識產品開發進度良好，目前已有數個案子在客戶端進行測試、驗證，預期明年可望正式量 產出貨。

• The�development�of�optical�fingerprint�products�is�going�well.��The�in-panel�(also�called�under� glass)�version�is�expected�to�start�MP�early�2019.�

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

CONFIDENTIAL

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Future Outlook /未來展望(Extended)

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• 有別於市面上產品，敦泰光學式指紋辨識產品，藉由特規的獨立光源設計，搭配半導體等級的光學元件， 使產品得以實現以下獨特性:

• ●適用於AMOLED、TFT�LCD屏

• ●具心跳、血壓等健康量測功能

• ●暗屏解鎖

• Different�from�the�products�on�the�market,�FocalTech's�optical�technologies�enable�the�following� unique�features�through�the�design�of�a�unique�independent�light�source�with�semiconductorgrade�optical�components:

• ●Suitable�for�both�AMOLED�and�TFT�LCD�panel

• ●Heart�rate,�blood�pressure�and�other�health�measurement�functions

• ●Unlockable in�dark�screen�mode

CONFIDENTIAL

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

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