FocalTech — Interim / Quarterly Report 2019

Nov 13, 2019

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敦泰電子(3545)法人說明會

FocalTech Investor Conference

2019/11/13

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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2019 Q3 Results Summary /108年第3季總結 (1)

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• 在晶圓代工產能供應逐步恢復，及傳統季節性拉貨需求的幫助下，敦泰第3季IDC量 產出貨機型明顯增加，且觸控、顯示驅動、電容式指紋產品也均有好的表現，因此 推升營收季增20%，表現優於預期；單季營收也成功終結連四季的年衰退，重新回 到成長軌道之上。

• With the recovery of foundry wafer supply plus the demand increase with the traditional high season, FocalTech's IDC shipment soared in Q3. Traditional product lines, such as touch controller, driver IC, and capacitive fingerprint sensor, all performed well. The revenue increased by 20% quarterly, which was better than original forecast. This also marked the end of revenue decline in the past four quarters.

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

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2019 Q3 Results Summary /108年第3季總結 (2)

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• 隨營業規模放大，同時持續改善產品出貨組合下，讓敦泰第3季產品毛利率持續往正面 發展，單季毛利率為23.18%，較第2季提升0.26個百分點，毛利率連三季走升。

• With the growth of business revenue and better product mix, FocalTech's Q3 gross margin continued to improve and resulted in 23.18%, which was 0.26% higher than Q2, stepping up for three straight seasons.

• 第3季在營收、毛利率皆較第2季增加，且營業費用減少下，讓敦泰一舉擺脫連續三季的 虧損，單季稅後淨利0.73億元，每股純益0.29元。

• Comparing to Q2, better performances in revenue, gross margin, and operating expenses in Q3 helped make FocalTech profitable, and realized a 73 million NTD net profit after tax or 0.29 NTD net profit per share.

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

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Q3 19’Income Statement /108年第3季損益表

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Unit in NT$ Million /單位: 新台幣佰萬元

	19' Q3	19' Q2	QoQ	18' Q3	YoY
Revenue/ 營業收入	2,573	2,139	20%	2,530	2%
Gross Profit/ 營業毛利	596	490	22%	618	-4%
Gross Margin/ 營業毛利率	23.18%	22.92%	↑26bps	24.44%	↓126bps
OperatingExpense/ 營業費用	572	638	-10%	586	-2%
OperatingIncome/ 營業淨利	25	-147		32	-22%
Non Operating Income/ 營業外收入	56	32	75%	38	47%
Profit before Tax/ 稅前淨利	81	-115		71	14%
Profit after Tax/ 稅後淨利	73	-135		76	-4%
EPS(Basic)/ 每股盈餘(基本)	0.29	-0.47		0.3

CONFIDENTIAL

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

5

Q3 19’Balance Sheet / 108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

	19' Q3	19' Q2	QoQ	18' Q3	YoY
Cash & Market Securities/ 現金及流動金融資產	5,315	4,502	18%	5,223	2%
Accounts Receivable/ 應收帳款	1,077	890	21%	1,177	-8%
Inventory/ 存貨	1,406	1,982	-29%	2,385	-41%
Other Current Assets/ 其他流動資產	231	145	59%	215	7%
Non Current Asset/ 非流動資產	2,921	2,988	-2%	5,331	-45%
Total Assets/ 資產總計	10,950	10,507	4%	14,331	-24%
Current Liabilities/ 流動負債	2,785	2,512	11%	3,277	-15%
Non Current Liabilities/非流動負債	334	196	70%	325	3%
Owner's Equity/ 股東權益	7,831	7,799	0%	10,729	-27%
Total Liabilities and Owners' Equity/ 負債與權益	10,950	10,507	4%	14,331	-24%
Net Worthper share/ 每股淨值	27.12	26.99		37.56
AR Days(Annual Basis)	34	33		53
CONFIDENTIAL ~~©2018 FocalTech Systems Co., Ltd. All rights reserved~~ InventoryDays(Annual Basis)	77	120		107

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Future Outlook /未來展望 (1)

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 以往大陸智慧型手機供應鏈第4季的需求會較第3季減緩，但由於敦泰IDC導入客戶機款 有望持續增加，帶動市佔率回升，因此有望力抗淡季效應，讓整體出貨較第3季小幅成長。  Comparing with Q3, demand in Q4 for the mainland smart phone supply chain usually slows down. However, due to the continuous increase of design-wins, we expected the growth trend may continue and make the overall shipment level slightly better than Q3.

• 但在毛利率方面，由於IDC新進者陸續加入下，市場競爭加劇，為產品價格帶負面影響， 因此預期較第3季為低。

• However, in terms of gross margin, severe competition from low-price players will cause decrease to ASP. So it may be difficult to maintain the same level in Q3.

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

7

Future Outlook /未來展望 (2)

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• [] 在Mux1:6 FHD 及 Dual Gate HD 等新世代IDC產品方面，今年由於能提供匹配面板的 供應商有限，外加部份終端客戶的觀望態度，造成市場導入進度慢於預期；隨著時間的 推移，近來客戶導入意願已明顯提高，量產的時間會延滯到明年。

 The adoption of next generation IDC products, such as Mux 1:6 and dual gate have been slower than expected. This is primarily due to limited panel suppliers and the slow decision making process at the end market. However, we started to see more designs adopting these new products and expect high volume shipment in 2020.

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

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Future Outlook /未來展望 (3)

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• [][敦泰在90Hz Mux1:3 FHD的產品也已進入工程送樣階段；隨著5G時代來臨，具有高傳] 輸效率與低延遲的特性，將提高面板的刷新率，而這個擁有較高的顯示刷新率的產品將 逐步進入LCD顯示屏的高階市場。

 FocalTech's 90Hz Mux1:3 FHD products had also entered the engineering samples stage. The coming 5G technology, which has high transmission efficiency and low latency, requires faster frame rate for smartphone display panels. So the products with high frame rate will become a key specification for the high-end LCD market.

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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