SUNPLUS — Interim / Quarterly Report 2018

Aug 13, 2018

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2Q 2018 Investor Conference

August 13, 2018

Spokesman: Wayne Shen Tel: 886-3-5786005 ext.2350 E-mail: wayne@sunplus.com

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Sunplus Affiliates

	Profession	Shareholding	Stock code
	Sunplus Technology Co., Ltd. (592m shares) Automotive IC & IP Design	100%	TWSE#2401
	Generalplus Technology Co., Ltd. (109m shares) Speech/Music, LCD, Digital Video & Image SoC Turnkey Solutions, Micro-Controllers	48%	TWSE#4952
	Sunext Technology Co., Ltd. (64m shares) ODD & Motor Drive IC	74%	Emerging#4921
	iCatch Technology Inc. (55m shares) Portable, Wearable and Automotive Camera IC	45%
	Sunplus Innovation Technology Inc. (51m shares) Web Cam & HID Control IC	69%
	Jumplux Technology Inc. (14m shares) Automotive MCU & USB Storage ASIC	95%

• Based on 2018/6/30 Consolidated-holding by Sunplus

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Sunplus Group

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iCatch Technology Still & Action camera

Sunext Technology Intelligent Driving & Ultra High-Definition

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DVD/Automotive/Audio IC & IP

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Generalplus Technology Consumer IC/ Wireless charger

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Sunplus Innovation Technology

UVC & HID Application

Jumplux Technology Automotive MCU & USB Media Controller

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Sunplus Product Portfolios

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AVM/BSD
In-Vehicle CD/ DVD Player
Infotainment
RSE
Karaoke/Video
boombox
Soundbar
Display Audio
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Sunplus Research & Technologies

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• •
• 2D/3D AVM CarPlay
Dolby, DTS, Hi-
• •
De-interface, 3D Android Auto
Res
•
• comb filter, SNR CarLife
Surround sound
• •
• DeHaze WebLink
EQ, Virtual Bass,
SRC, AEC, NR,..
Image/ Phone
Audio
Video Link
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IP Solutions

-Experience Optimized IP Solutions for SoC Design

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IC Design & IP Design Service
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Media I/F (Audio/Video)

， ， ， MIPI RX IP HDMI Tx IP LVDS IP AUDIO ADC ， AUDIO DAC VIDEO DAC…

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Data/Com I/F (Networking/Datacom)

， ， 10/100 ETHERNET PHY USB 2.0 USB 3.0 ， DDR 3/2 PHY SerDes…

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SoC Companion

， ， ， SAR ADC Pipeline ADC PLL SPREAD SPECTRUM PLL…

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Human Resources

Global Employees

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Production
9 %
Administration
26%
R&D
65%
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Sunplus HR

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Other
42%
R&D
58%
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Global Employees/ R&D 1 331 / 863 ,

42% Master above

Sunplus HR/ R&D 282 / 163

58% Master above

• Data by 2018/6/30

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Q2 Consolidated Results

(NT$ million) Net Sales COGS GrossMargin R&D Expenses SG&A Expenses OperatingNetProfit (Loss) Non-Op. Gain (Loss) NetIncome (Loss) Other Comprehensive Income Total Comprehensive Income Net Profit Attributable To Shareholders ofthe parent Non-controlling interests EPS (NT$)	1,799 100% 1,103 61% 695 39% 467 26% 205 11% 23 1% 36 2% 35 2% (43) (2%) (8) (0%) (25) (1%) 60 3% (0.04) 2018Q2	1,430 100% 880 62% 549 38% 454 32% 219 15% (123) (9%) 147 10% 16 1% 17 1% 32 2% 11 1% 5 0% 0.02 2018Q1	1,830 100% 1,086 59% 743 41% 449 25% 226 12% 67 4% 34 2% 75 4% 17 1% 91 5% 28 2% 46 3% 0.05 2017Q2	QoQ YoY 26% (2%) 25% 2% 27% (6%) 3% 4% (6%) (9%) (119%) (65%) (76%) 4% 124% (53%) (359%) (359%) (124%) (108%) (328%) (187%) 1116% 29%

** EPS based on outstanding 591,994,919 shares on 2018/06/30

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1H Consolidated Results

(NT$ million) Net Sales COGS GrossMargin R&D Expenses SG&A Expenses OperatingNetProfit (Loss) Non-Op. Gain (Loss) NetIncome (Loss) Other Comprehensive Income Total Comprehensive Income Net Profit Attributable To Shareholders ofthe parent Non-controlling interests EPS (NT$)	3,228 100% 1,984 61% 1,245 39% 921 29% 424 13% (100) (3%) 182 6% 51 2% (26) (1%) 25 1% (14) (0%) 65 2% (0.02) 2018 1H	YoY 3,308 100% (2%) 1,991 60% (0%) 1,317 40% (6%) 887 27% 4% 436 13% (3%) (8) (0%) 1186% 447 14% (59%) 402 12% (87%) (254) (8%) (90%) 149 4% (83%) 346 10% (104%) 56 2% 15% 0.59 2017 1H

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** EPS based on outstanding 591,994,919 shares on 2018/06/30

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2018 Affiliates’ Contribution

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2Q '18 Net Sales : 1,799 MNT$ 2Q '18 Net Income
MNT$
Others Sunplus
17%
21% 102
Sunext
1%
Generalplus 34
47%
SunplusIT 3
14%
Sunplus Generalplus SunplusIT Sunext
(25)
1H '18 Net Sales : 3,228 MNT$ 1H '18 Net Income
Others Sunplus 151
18%
22%
Sunext
2%
34
Generalplus
1
SunplusIT 45%
13%
Sunplus Generalplus SunplusIT Sunext
(14)
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Q2 Consolidated Balance Sheet

10	Amount: NT$million 1H'06 1H'05 YoY Total Assets 21,677 19,210 13% Cash & S-T Investment 6,201 6,349 -2% Account Receivable 3,260 3,319 -2% Inventory 2,801 2,132 31% L-T investment (equity method) 4,473 3,031 48% Intangible Assets 1,106 1,183 -7% Total Liabilities 5,572 4,993 12% Account Payable 2,236 2,099 7% Total Shareholder Equity 16,095 14,217 13% Net Cash Folw in(out) 291 2,316 -87% From Operation 652 2,199 -70% From Investment (648) (75) 764% r From Financing 287 192 50% Capex 240 216 11%
	(NT$ million) Total Assets Cash and Cash equivalents Inventory Equity Method Investments Intangible Assets Total Liabilities S-T Bank Loans L-T Bank Loans, Current Portion Account Payable L-T Bank Loans, Net of Current Portion TotalShareholder Equity ROE% Net Asset Value per Share (NT$)	2018Q2 13,375 3,455 1,097 344 222 3,285 373 279 868 50 10,090 0.50% 14.38	2018Q1 13,333 3,921 1,093 425 217 2,652 601 289 625 100 10,682 0.15% 15.19	2017Q2 13,648 3,879 1,101 371 179 3,309 628 239 713 188 10,340 3.89% 14.91	QoQ YoY 0% (2%) (12%) (11%) 0% (0%) (19%) (7%) 2% 24% 24% (1%) (38%) (41%) (3%) 16% 39% 22% (50%) (73%) (6%) (2%)
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Cash Flows

(NT$ million) From Operation From Investment From Financing Net Cash Flow in(out) Cashand Cashequivalents	2018Q2 120 (313) (287) (465) 3,455	2018Q1 (179) (200) 151 (236) 3,921	2017Q2 (105) (75) 114 (59) 3,879	QoQ YoY (167.1%) (215.1%) 56.9% 320.3% (289.5%) (352.8%) 97.5% 683.1% (11.9%) (10.9%)

(NT$ million) From Operation From Investment From Financing Net Cash Flow in(out) Cashand Cashequivalents	2018 1H (59) (513) (136) (701) 3,455	2017 1H YoY (460) (87.2%) 398 (228.8%) (880) (84.6%) (925) (24.2%) 3,879 (10.9%)

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Non-Operating Gain

(NT$ million)	2018Q2	2018Q1	2017Q2	QoQ	YoY
Other Income	25	22	14	12%	75%
Exchange Gain (Loss)	(11)	17	19	(165%)	(156%)
Gain on Disposal of Investment Investment Gain Recognized under Equity Method Non-Operating Gain	23 (5) 36	88 1 147	33 4 34	(73%) (605%) (76%)	(28%) (223%) 4%

(NT$ million)	2018 1H	2017 1H YoY
Other Income	48	30 61%
Exchange Gain (Loss)	6	(20) (130%)
Gain on Disposal of Investment Investment Gain Recognized under Equity Method Non-Operating Gain	111 (4) 182	532 (79%) 89 (105%) 447 (59%)

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Consolidated Net Sales & Gross Profit

NT$ million

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GP YoY: GP YoY:
-6% -6%
GP QoQ:
+27%
41%
38% 39% 40%
39%
1,830 1,799
3,308
3,228
1,430
743 695
1,317 1,245
549
2Q '17 1Q '18 2Q '18 1H '17 1H '18
COGS Gross Profit Gross Margin COGS Gross Profit Gross Margin
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R&D Expenses (Sunplus only)

NT$ million

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41% 39%
36% 37%
35%
30%
126
121 121
114 112 112
1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18
R&D Expense R&D Expense of Sales
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Consolidated Operating Net Profit

NT$ million

YoY: -65%

YoY: +1186%

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QoQ:
-119%
67
4% 23
1%
2Q '17 1Q '18 2Q '18
-9%
-123
Operating Net Profit Operating Margin
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0%
-3%
1H '17 -8 1H '18
-100
Operating Net Profit Operating Margin
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Consolidated Net Profit

NT$ million

YoY: -187% YoY: -104%

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QoQ:
-328%
346
28
11
2%
1%
-1%
10%
2Q '17 1Q '18 2Q '18
0%
-14
-25 1H '17 1H '18
Net Profit Net Profit Margin Net Profit Net Profit Margin
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Financial Statement

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1
0.72 0.72
40% 42% 42% 39%
0.09 42% 0.2 40%
-0.02
8.52 8.47
7.87
7.56
6.82
3.23
2013 2014 2015 2016 2017 2018 1H
Consolidated Net Sales (BNT$) Gross Margin EPS
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Sunplus interim shareholders’ meeting

Date：2018/9/12 Place：Newton Hall, No. 1 Industrial East 2nd Road, Hsinchu Science Park Discussion：The Company's original shareholding of shares and cash increase of share options of the subsidiary “iCatch Technology Co., Ltd." was transferred to all shareholders of the Company

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SunplusiT

• Smart Imaging and Man-Machine Interaction Enabler

UVC Application NB Cam Backend ISP Web Cam Dashboard Cam Document Scanner Controller

HID Application MCU RF Optical Sensor Easy Gesture Solution

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Sunext IC Solutions

- Driving to Intelligent Automation

Ultra High-Definition 4K UHD BD HD BD USB DVD/CD for Automotive

Intelligent Driving 3D Printer Barcode Printer IP CAM Driver

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iCatch Product Portfolios

- Catch the beauty of Life

Still Cameras Action Cameras Automotive DSC Sport Cam Cameras Mirror-less Drone Cam Dash Cam 360 Cam Dual Recording VR Cam AVM e-Mirror

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Jumplux - Automotive MCU for Mobile Device

USB Media HUB for CarPlay USB PD + Wireless Charger

48V PMIC + MCU USB PD/BC

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Q & A

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