Scientech Corporation — Interim / Quarterly Report 2014

Apr 25, 2014

==> picture [86 x 48] intentionally omitted <==

==> picture [232 x 122] intentionally omitted <==

(3583)

2014 Q1 results

April, 25, 2014

1

==> picture [86 x 48] intentionally omitted <==

Business Overview

Products

Outlook

2

Business Overview

Statements of

Comprehensive Income

==> picture [86 x 48] intentionally omitted <==

ITEM (NT$ K)	2011	2012	2013	1Q13	1Q14
Revenues	2,761,318	2,252,295	3,067,640	613,076	547,630
Gross Profit	844,247	793,275	982,937	185,232	162,886
Gross Margin(%)	30.6%	35.2%	32.0%	30.2%	29.7%
Operating Expenses	658,733	581,512	629,202	151,079	159,781
Income From Operating	185,514	211,763	353,735	34,153	3,105
Operating Margin(%)	6.7%	9.4%	11.5%	5.6%	0.6%
Non-Operating Income and Expenses	(21,752)	(925)	(25,935)	7,896	10,101
Income Before Income Tax	163,762	210,838	327,800	42,049	13,206
EBIT Margin	5.9%	9.4%	10.7%	6.9%	2.4%
Net Income	79,020	176,216	249,417	33,854	5,475
EPS	1.21	2.38	3.13	0.45	3 0.07

Business Overview

Balance Sheets

==> picture [86 x 48] intentionally omitted <==

Overview	Balan	Balan	e Sheets	e Sheets
Selected Items from Balance Sheets (NT$ K)	1Q14		4Q13		1Q13
	Amount	%	Amount	%	Amount	%
Cash	453,061	14.3%	396,948	12.2%	377,640	12.1%
Accounts Receivable	388,390	12.3%	556,301	17.1%	312,734	10.0%
Inventories	380,110	12.0%	381,777	11.8%	497,024	15.9%
Net PP&E	1,700,896	53.8%	1,677,423	51.7%	1,592,179	50.9%
Total Assets	3,163,963	100.0%	3,246,212	100.0%	3,129,015	100.0%
Current Liabilities	606,547	19.2%	686,765	21.2%	600,295	19.2%
Long-term Interest-bearing Debt	567,706	17.9%	576,022	17.7%	648,043	20.7%
Total Liabilities	1,218,737	38.5%	1,308,250	40.3%	1,286,820	41.1%
Total Shareholders' Equity	1,945,226	61.5%	1,937,962	59.7%	1,842,195	58.9%

4

Business Overview

Cash Flows

==> picture [86 x 48] intentionally omitted <==

Overview	Cas	Flows
(In NT$ K)	1Q14	4Q13	1Q13
Beginning Balance	396,948	356,106	255,691
Cash from operating activities	163,967	86,727	101,696
Capital expenditures	(105,424)	(45,860)	(52,726)
Short-term and long loans	6,580	(8,307)	(183,363)
Raised Fund	0	0	249,576
Investments and others	(9,010)	8,282	6,766
Ending Balance	453,061	396,948	377,640
Free Cash Flow (*)	58,543	40,867	48,970

* Free cash flow = Cash from operating activities – Capital expenditures

5

Business Revenues % and Gross Margin 營運概況 Overview

==> picture [86 x 48] intentionally omitted <==

-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)	-500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 NT K)
Revenues		1,366,513	2,275,507	2,761,318	2,252,295	3,067,640	547,630
Gross Margin(%)		29%	24%	31%	35%	32%	30%
Net profit		(3,163)	(58,584)	79,020	176,216	249,417	5,475
EPS		0.80	0.09	1.21	2.38	3.13	0.07

6

Business 營運概況 Overview

R & D Expenses

==> picture [86 x 48] intentionally omitted <==

==> picture [598 x 356] intentionally omitted <==

----- Start of picture text -----

140,000 8.00%
130,970
129,427
7.35% 121,304
7.00%
120,000 113,564
6.56%
100,465 6.00%
100,000
5.39%
4.99% 5.00%
4.69%
80,000
4.27%
4.00%
60,000
3.00%
35,946
40,000
2.00%
20,000 1.00%
- 0.00%
2009 2010 2011 2012 2013 1Q14
R&D R&D%
----- End of picture text -----

7

Products

Equipment

==> picture [86 x 48] intentionally omitted <==

 Wet process equipment

 Single wafer/ batch type

==> picture [307 x 216] intentionally omitted <==

• 12”/8” Advanced packaging: Bumping / WLP / InFO/ CoWoS/ SiP / TSV / 2.5D IC / 3D IC

• 6”/8” front-end mature

、 special process (FP sensor RF 、 、 、 CMOS Touch Controller power IC 、 、 MEMS IoT Sensor)

• III-V for PA and RF IC

• HBLED front-end wet process

• for general lighting and backlight

8

Products

Wafer Reclaim

==> picture [86 x 48] intentionally omitted <==

==> picture [664 x 390] intentionally omitted <==

----- Start of picture text -----

Advanced clean technology Complete particle inspection
20nm/16nm Particle (SP1-DLS & SP2)
Low trace metal ( < 5E9)
Cleaning
Etching
Full Process
12” Wafer Reclaim Optimization
Capacity: 120K / month
Polishing Grinding
Complete polishing process Super flatness
Single side polish (GBIR < 0.5 m m)
Double side polish
Final Haze polish
----- End of picture text -----

9

Products

Equipment distributor

==> picture [86 x 48] intentionally omitted <==

==> picture [692 x 361] intentionally omitted <==

----- Start of picture text -----

Multi
Exclsive
applicati
on
Long term
partnership
----- End of picture text -----

==> picture [112 x 38] intentionally omitted <==

==> picture [107 x 30] intentionally omitted <==

==> picture [54 x 27] intentionally omitted <==

==> picture [50 x 40] intentionally omitted <==

10

Outlook 主要產品 SEMI CAPEX

==> picture [86 x 48] intentionally omitted <==

2014 SEMI Capex and outlook

==> picture [608 x 382] intentionally omitted <==

11

Outlook

Equipment

1.Geometry migration 2. New business scope extended from core technology

Single Full Wafer Laser spectrum Wet technolo mass Process gy spectroEquipmeter ment

==> picture [86 x 48] intentionally omitted <==

Wafer Reclaim

1. Geometry migration

2. Non-silicon material wafer

technology

Non-silicon material wafer technology

20/16/10

nm wafer reclaim technology

SiC Ge (silicon Glass: (germanium) carbide): 3D IC high power : HC PV wafer componen carrier t/RF/VE/ HBLED

12

Outlook 主要產品 Outlook Mass spectrometer Outlook

==> picture [86 x 48] intentionally omitted <==

Now mass spectrometer applications

Airports or seaports customs inspection and forensic science	Items such as food, drugs, explosives, or alcohol analysis, etc.
Medicine and pharmacology	Drug metabolism analysis, impurities, natural product analysis, etc.
Clinical medicine	Newborn examination, glycated hemoglobin, hemoglobin variants, etc.
Food inspection	Spices, additives, packaging material, proteins, carcinogens, etc.
Research institute	Study on measurement of proteins, carbohydrates, metabolites, measurement of bio-molecular imaging, proteomics, surface modification of proteomics and metabolism in vitro research, disease biomarker search, etc.
Environmental monitoring	Analysis of pesticides and pesticide residues and organic pollutants, particle analysis in soil/food/water, etc.
Synthetic organic chemistry	Organo-metallic compounds, organic compounds, control of the manufacturing process and quality control of products, surfactants, dyes, etc.
Material utilize	Impurity analysis of materials, such as semiconductors, or analysis of biomaterials, etc.

13

Outlook 主要產品 Mass spectrometer

==> picture [86 x 48] intentionally omitted <==

• Mass spectrometry

• With patented frequency scan, it is capable analyze mass range beyond conventional Mass Spectrometry .

• Dual ion sources, MALDI and ESI, it can analyze both solid and liquid samples.

• Potential applications, to explore

  • Biomacromolecule

  • Nano-particles

  • Environment particles

  • Large molecules

==> picture [292 x 262] intentionally omitted <==

14

Outlook

Equipment

==> picture [86 x 48] intentionally omitted <==

 300mm Single wafer/batch type wet process equipment

• Advanced Packaging

• UBM etch

• Wafer clean

• PR Strip

• Flux clean

==> picture [244 x 182] intentionally omitted <==

• Electro-less plating

15

Outlook

SiC : Application

==> picture [86 x 48] intentionally omitted <==

==> picture [571 x 417] intentionally omitted <==

16

Source: Yole Development

Outlook SiC Wafer Reclaim

==> picture [86 x 48] intentionally omitted <==

==> picture [652 x 425] intentionally omitted <==

----- Start of picture text -----

1 2 4 5
3
17
----- End of picture text -----

17

==> picture [86 x 48] intentionally omitted <==

Thank you ！

Q&A

18