FocalTech — Interim / Quarterly Report 2019

May 15, 2019

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敦泰電子(3545)法人說明會

FocalTech Investor Conference

2019/5/15

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 Q1 Results Summary /108年第1季總結 (1)

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• 雖然轉廠版本的IDC產品，已逐步開始導入客戶，但在終端產品上仍需一段驗證期，因此第1季 出貨量尚無明顯改善，加上第1季為智慧型手機的傳統淡季，在此雙重衝擊之下，使得敦泰單季 營收季減19.8%及年減37.2%。

 Despite the constraint on the wafer supply is removed, the Q1 shipment has not yet recovered due to the long design-in cycle for new smartphone models and furthermore, Q1 has always been the traditionally slow season of the year. The Q1 revenue declined 19.8% QoQ and 37.2% YoY.

• 與2018年第4季相比，因少了提列存貨呆滯及跌價損失的因素，敦泰第1季毛利率20.96%，恢 復正常水準；而在成本效益持續改善下也比去年同期提升0.86個百分點。

• Free from the inventory write-off in Q4, the gross margin rate in Q1 improved to 20.96%. Comparing to the same period last year, the margin increased slightly by 86 bps.

CONFIDENTIAL

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

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2019 Q1 Results Summary /108年第1季總結(2)

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• 由於整體營收規模顯著衰退，因此儘管毛利率有所改善，敦泰第1季稅後仍淨損1.94億 元，每股淨損0.67元。

• Due to the reduction of revenue in Q1, FocalTech posted a net loss of 194 million NTD or 0.67 NTD per share, despite the slight improvement in gross margin.

CONFIDENTIAL

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

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Q1 19’Income Statement /108年第1季損益表

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Unit in NT$ Million /單位: 新台幣佰萬元

	19' Q1	18' Q4	QoQ	18' Q1	YoY
Revenue/ 營業收入	1,640	2,044	-19.8%	2,613	-37.2%
Gross Profit/ 營業毛利	344	(171)		525	-34.5%
Gross Margin/ 營業毛利率	20.96%	-8.35%	↑2931bps	20.1%	↑86bps
OperatingExpense/ 營業費用	569	578	-1.6%	521	9.1%
OperatingIncome/ 營業淨利	(225)	(749)		4
Non Operating Income/ 營業外收入	30	(1,954)		21	41.2%
Profit before Tax/ 稅前淨利	(195)	(2,703)		25
Profit after Tax/ 稅後淨利	(194)	(2,654)		10
EPS(Basic)/ 每股盈餘(基本)	(0.67)	(9.63)		0.05

CONFIDENTIAL

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

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Q1 19’Balance Sheet / 108年第1季資產負債表

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Unit in NT$ Million /單位: 新台幣佰萬元

	19' Q1	18' Q4	QoQ	18' Q1	YoY
Cash & Market Securities/ 現金及其他金融資產	4,091	4,771	-14.3%	4,409	-7.2%
Accounts Receivable/ 應收帳款	678	983	-31.0%	1,617	-58.1%
Inventory/ 存貨	2,414	2,121	13.8%	1,992	21.2%
Other Current Assets/ 其他流動資產	155	158	-1.9%	248	-37.5%
Non Current Asset/ 非流動資產	3,347	3,267	2.4%	5,362	-37.6%
Total Assets/ 資產總計	10,685	11,300	-5.4%	13,628	-21.6%
Current Liabilities/ 流動負債	2,559	2,879	-11.1%	2,594	-1.3%
Non Current Liabilities/非流動負債	192	343	-44.0%	381	-49.6%
Owner's Equity/ 股東權益	7,935	8,078	-1.8%	10,653	-25.5%
Total Liabilities and Owners' Equity/ 負債與權益	10,685	11,300	-5.4%	13,628	-21.6%
Net Worthper share/ 每股淨值	26.48	26.93		36
AR Days(Annual Basis)	46	48		50
InventoryDays(Annual Basis)	157	92		101

CONFIDENTIAL

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

6

Future Outlook /未來展望(1)

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• 由於第1季開始敦泰IDC晶圓代工產能已成功紓解，敦泰產品打入客戶新機種的數量也開始 放大，預期有助於後市整體營運的逐步回溫，加上觸控產品線出貨同步提升，整體第2季業 績表現將較第1季成長。

• The IDC wafer shortage issue is relieved in Q1. The shipment of IDC and touch controllers are expected to increase in Q2, which traditionally being an up season. So, we are expecting to see the overall performance in Q2 to be better than in Q1.

• 隨產能的紓解，市場的售價也隨之下滑，但因生產良率逐步改善，及公司整體產品組合趨於 正面，因此第2季毛利率仍可望持續向上提升。

• The price starts to decrease almost immediately as the shortage in supply being resolved. However, we still expect to see the gross margin to increase in Q2 as a result of both production yield and overall product mix improvement .

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

CONFIDENTIAL

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Future Outlook /未來展望 (2)

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• [] 敦泰持續在技術與規格上站在產業的前沿，在Mux 1:6、Dual Gate等新世代IDC產品 開發上率先告捷，新產品在COG封裝方案上，可將下邊框較上一代進一步縮小，讓客 戶在產品上實現超窄邊框；在COF方案上，可實現較大間距 COF封裝，紓解現有供應 丌足且單價昂貴的小間距COF，預料新的COG/COF規格，將成為未來市場主流，並帶 領IDC產業進入新世代。

 FocalTech has succeeded in the development of new generation IDC products including Mux 1:6 and Dual Gate technologies. The new products will enable customers to achieve ultra-narrow bezels for smartphones. New COG solutions will reduce the bottom boarder down to 3.1 ~3.4 mm. Whereas on the COF side, the new generation products can alleviate the problems in both cost and production capacity shortage that current generation product is suffering.

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

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Future Outlook /未來展望(4)

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Single Gate Dual Gate
Mux. 1:3 Mux. 1:6
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COG COG
5.3~4 mm 3.1~3.4 mm
COF COF
3.0mm 3.0mm
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CONFIDENTIAL

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

9

Future Outlook /未來展望(5)

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A-Si面板
規格 量產時間 COG下邊框窄度
Single Gate 2017/Q4 5.3mm
Dual Gate 2019/Q3 3.4mm
LTPS面板
規格 量產時間 COG封裝- COF封裝-
下邊框窄度 下邊框窄度
Mux 1:3 2018/Q1 4.0mm 3.0mm (fine pitch COF)
Cost down
Mux 1:6 2019/Q3 3.1mm 3.0mm (general COF) >30%
Cost down
>45%
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CONFIDENTIAL
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• © 2018 FocalTech Systems Co., Ltd. All rights reserved

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Future Outlook /未來展望 (6)

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• [][在AMOLED顯示屏應用領域中，敦泰觸控晶片的布局已有所突破，成功獲得一線面板] 廠認證，至於AMOLED的顯示驅動IC，則正在送樣面板廠，觸控產品將在下半年量產 出貨而顯示驅動IC則有望在下半年試量產。

• In AMOLED panel applications, FocalTech’s touch controller has passed the verification of a first-tier panel supplier. Whereas the display driver IC for AMOLED is being sampled. The former will be in mass production and the latter is expected to be in prototype in 2[nd] half of 2019.

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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