SUNPLUS — Interim / Quarterly Report 2020

Aug 20, 2020

==> picture [102 x 56] intentionally omitted <==

==> picture [72 x 41] intentionally omitted <==

2Q 2020 Investor Conference

August 20, 2020

Deputy Spokesman: Joseph Chuang Tel: 886-3-5786005 ext.3120 E-mail: joseph@sunplus.com

==> picture [15 x 540] intentionally omitted <==

Sunplus Affiliates

	Profession	Shareholding	Stock code
	Sunplus Technology Co., Ltd. (592m shares)	100%	TWSE#2401
	Automotive IC & IP Design
	Generalplus Technology Co., Ltd. (109m shares)	48%	TWSE#4952
	Speech/Music, LCD, Digital Video & Image SoC Turnkey Solutions,Micro-Controllers
	Sunplus Innovation Technology Inc. (51m shares)	69%
	Web Cam & HID Control IC
	Sunext Technology Co., Ltd. (64m shares)	92%
	ODD & Motor Drive IC
	Jumplux Technology Inc. (24m shares)	97%
	Automotive MCU & USB Storage ASIC

• Based on 2019/6/30 Consolidated-holding by Sunplus

==> picture [58 x 10] intentionally omitted <==

, Make difference

1

==> picture [15 x 540] intentionally omitted <==

Sunplus Group

==> picture [79 x 26] intentionally omitted <==

==> picture [87 x 22] intentionally omitted <==

Sunplus Innovation Technology UVC & HID Application

Generalplus Technology

==> picture [98 x 61] intentionally omitted <==

Consumer IC/ Wireless charger

==> picture [83 x 85] intentionally omitted <==

==> picture [82 x 89] intentionally omitted <==

==> picture [77 x 51] intentionally omitted <==

Automotive/Audio/DVD IC & IP

==> picture [95 x 28] intentionally omitted <==

Jumplux Technology Automotive MCU & USB Media Controller

==> picture [35 x 38] intentionally omitted <==

Sunext Technology Intelligent Driving & Ultra High-Definition Disc

==> picture [62 x 52] intentionally omitted <==

==> picture [48 x 69] intentionally omitted <==

==> picture [83 x 63] intentionally omitted <==

==> picture [58 x 10] intentionally omitted <==

, Make difference

2

==> picture [15 x 540] intentionally omitted <==

Sunplus Product Portfolios

==> picture [607 x 367] intentionally omitted <==

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

AVM/BSD
In-Vehicle CD/ DVD Player
Infotainment
RSE
Karaoke/Video
boombox
Soundbar
Display Audio
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

3

==> picture [15 x 540] intentionally omitted <==

Plus1：Share Smart Computing Chiplet Structure

Peripheral (P) chip Computing (C) chip GPIO/ I2C/ USB/ UART/ MIPI CPU/ NPU/ GPU / DSP 130nm 55nm 40nm 28nm 16nm 12n 7nm 製程 m <$200K <$400K <$700K <$1M <$3M <$4M >$7M 光罩費用

==> picture [185 x 186] intentionally omitted <==

==> picture [177 x 77] intentionally omitted <==

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

將界面週邊P與高運算力C
區隔為兩個不同的晶粒(Chiplet)
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

4

==> picture [15 x 540] intentionally omitted <==

Industrial Gateway, Education

==> picture [223 x 294] intentionally omitted <==

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

SUNPLUS SP7021 Inside
Plug and Play
type of features
----- End of picture text -----

==> picture [251 x 161] intentionally omitted <==

==> picture [344 x 161] intentionally omitted <==

==> picture [58 x 10] intentionally omitted <==

, Make difference

5

==> picture [15 x 540] intentionally omitted <==

+ AI on (your) Chip

==> picture [477 x 440] intentionally omitted <==

==> picture [58 x 10] intentionally omitted <==

, Make difference

6

==> picture [15 x 540] intentionally omitted <==

IP Solutions

-Experience Optimized IP Solutions for SoC Design

==> picture [541 x 30] intentionally omitted <==

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

IC Design & IP Design Service
----- End of picture text -----

==> picture [139 x 92] intentionally omitted <==

Media I/F (Audio/Video)

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

==> picture [146 x 93] intentionally omitted <==

Data/Com I/F (Networking/Datacom)

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

==> picture [134 x 91] intentionally omitted <==

SoC Companion

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

==> picture [58 x 10] intentionally omitted <==

, Make difference

7

==> picture [15 x 540] intentionally omitted <==

Human Resources

Global Employees

==> picture [261 x 135] intentionally omitted <==

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

Production
Administration 7%
26%
R&D
67%
----- End of picture text -----

Sunplus HR

==> picture [246 x 135] intentionally omitted <==

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

Other
34%
R&D
66%
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

Global Employees/ R&D 1 074 / 724 ,

40% Master above

Sunplus HR/ R&D 315 / 208

59% Master above

• Data by 2020/6/30

, Make difference

8

==> picture [15 x 540] intentionally omitted <==

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$)	1,530 100% 844 55% 685 45% 380 25% 204 13% 100 7% 65 4% 121 8% 0 0% 121 8% 46 3% 75 5% 0.08 2020Q2	1,042 100% 554 53% 489 47% 363 35% 173 17% (48) (5%) (44) (4%) (106) (10%) (59) (6%) (165) (16%) (125) (12%) 19 2% (0.21) 2020Q1	1,532 100% 886 58% 646 42% 379 25% 195 13% 72 5% 17 1% 71 5% (34) (2%) 38 2% 6 0% 65 4% 0.01 2019Q2	QoQ YoY 47% (0%) 52% (5%) 40% 6% 5% 0% 18% 5% (309%) 39% (248%) 289% (214%) 70% (101%) (101%) (174%) 224% (137%) 634% 299% 16%

==> picture [58 x 10] intentionally omitted <==

** EPS based on outstanding 591,994,919 shares on 2020/06/30

, Make difference

9

==> picture [15 x 540] intentionally omitted <==

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$)	2,572 100% 1,398 54% 1,174 46% 734 29% 378 15% 52 2% 21 1% 15 1% (59) (2%) (44) (2%) (79) (3%) 94 4% (0.13) 2020 1H	YoY 2,711 100% (5%) 1,561 58% (10%) 1,150 42% 2% 736 27% (0%) 385 14% (2%) 29 1% 83% 96 4% (78%) 99 4% (85%) 36 1% (265%) 135 5% (132%) 13 0% (692%) 86 3% 9% 0.02 2019 1H

==> picture [58 x 10] intentionally omitted <==

** EPS based on outstanding 591,994,919 shares on 2019/06/30

, Make difference

10

==> picture [15 x 540] intentionally omitted <==

2020 Affiliates’ Contribution

==> picture [592 x 415] intentionally omitted <==

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

2Q '20 Net Sales : 1,530 MNT$ 2Q '20 Net Income
MNT$
Others
Sunplus
6% 109
13%
SunplusIT 80
31%
46
Generalplus Sunplus Generalplus SunplusIT
50%
1H '20 Net Sales : 2,572 MNT$ 1H '20 Net Income
MNT$
Others Sunplus
7% 18% 139
SunplusIT 99
27%
Sunplus Generalplus SunplusIT
Generalplus
48%
(79)
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

11

==> picture [15 x 540] intentionally omitted <==

(NT$ million) Total Assets Cash and Cash equivalents	(NT$ million) Total Assets Cash and Cash equivalents	2020Q2 11,675 2,523	2020Q1 11,138 2,752	2019Q2 12,306 2,978
Financial asset at fair value through profit or loss		1,135	988	1,467
Inventory Equity Method Investments Intangible Assets Total Liabilities S-T Bank Loans L-T Bank Loans, Current Portion Account Payable Shareholder Equity to parent ROE% Net Asset Value per Share (NT$)		1,019 679 187 2,451 349 0 581 7,870 0.33% 13.29	920 691 166 1,713 252 0 388 8,003 (4.49%) 13.52	792 706 177 2,668 241 187 639 8,302 2.06% 14.02
, Make difference

==> picture [15 x 540] intentionally omitted <==

Cash Flows

(NT$ million) From Operation From Investment From Financing Net Cash Flow in(out) Cashand Cashequivalents	2020Q2 67 (400) 107 (229) 2,523	2020Q1 (182) (24) (63) (269) 2,752	2019Q2 152 (277) 5 (117) 2,978	QoQ YoY (136.6%) (56.0%) 1564.0% 44.6% (269.5%) 1936.7% (14.7%) 96.0% (8.3%) (15.3%)

(NT$ million) From Operation From Investment From Financing Net Cash Flow in(out) Cashand Cashequivalents	2020 1H (116) (424) 44 (498) 2,523	2019 1H YoY 183 (163.2%) (295) 43.8% (150) (129.2%) (258) 93.0% 2,978 (15.3%)

==> picture [58 x 10] intentionally omitted <==

, Make difference

13

==> picture [15 x 540] intentionally omitted <==

Non-Operating Gain

(NT$ million) Other Income Exchange Gain (Loss) Gains on Financial Assets (Liabilities) at Fair Value through Profit or Loss Investment Gain Recognized under Equity Method Non-Operating Gain	2020Q2 37 (10) 26 7 65	2020Q1 19 (5) (49) (6) (44)	2019Q2 27 (8) 0 1 17	QoQ YoY 96% 37% 87% 30% (153%) 18618% (215%) 865% (248%) 289%

(NT$ million)	2020 1H	2019 1H YoY
Other Income	55	50 10%
Exchange Gain (Loss)	(15)	8 (291%)
Gains on Financial Assets (Liabilities) at Fair Value through Profit or Loss	(23)	61 (138%)
Investment Gain Recognized under Equity Method Non-Operating Gain	1 21	(16) (105%) 96 (78%)

==> picture [58 x 10] intentionally omitted <==

, Make difference

14

==> picture [15 x 540] intentionally omitted <==

Consolidated Net Sales & Gross Profit

NT$ million

==> picture [604 x 319] intentionally omitted <==

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

GP YoY: GP YoY:
+6% +2%
GP QoQ:
+40%
47%
45%
42% 46%
42%
2,711
2,572
1,532 1,530
1,150
646 1,042 685 1,174
489
2Q '19 1Q '20 2Q '20 1H '19 1H '20
COGS Gross Profit Gross Margin COGS Gross Profit Gross Margin
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

15

==> picture [15 x 540] intentionally omitted <==

R&D Expenses (Sunplus only)

NT$ million

==> picture [494 x 278] intentionally omitted <==

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

69%
59%
49%
44%
41% 43%
149
144
136 139
129 130
1Q '19 2Q '19 3Q '19 4Q '19 1Q '20 2Q '20
R&D Expense R&D Expense of Sales
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

16

==> picture [15 x 540] intentionally omitted <==

Consolidated Operating Net Profit

NT$ million

YoY: +39%

YoY: +83%

==> picture [580 x 255] intentionally omitted <==

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

QoQ:
-309%
2%
1%
100
72
52
6.6%
4.7%
29
2Q '19 1Q '20 -5% 2Q '20
(48) 1H '19 1H '20
Operating Net Profit Operating Margin Operating Net Profit Operating Margin
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

17

==> picture [15 x 540] intentionally omitted <==

Consolidated Net Profit

NT$ million

==> picture [615 x 302] intentionally omitted <==

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

YoY: +634% YoY: -692%
QoQ:
-137%
13
46
0%
6 3.0%
0.4%
1H '19 1H '20 -3%
2Q '19 1Q '20 2Q '20
-12%
(79)
(125)
Net Profit Net Profit Margin Net Profit Net Profit Margin
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

18

==> picture [15 x 540] intentionally omitted <==

Financial Statement

==> picture [496 x 308] intentionally omitted <==

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

1
0.72
42% 40% 43% 46%
42% 40%
0.2
0.01 0.03
8.47 -0.13
7.56
6.82
6.08
5.51
2.57
2015 2016 2017 2018 2019 2020 1H
Consolidated Net Sales (BNT$) Gross Margin EPS
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

19

==> picture [15 x 540] intentionally omitted <==

Q & A

==> picture [706 x 344] intentionally omitted <==

==> picture [58 x 10] intentionally omitted <==

, Make difference

==> picture [15 x 540] intentionally omitted <==

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

==> picture [108 x 76] intentionally omitted <==

==> picture [120 x 80] intentionally omitted <==

==> picture [70 x 155] intentionally omitted <==

==> picture [115 x 124] intentionally omitted <==

==> picture [91 x 114] intentionally omitted <==

==> picture [99 x 97] intentionally omitted <==

==> picture [151 x 96] intentionally omitted <==

==> picture [58 x 10] intentionally omitted <==

, Make difference

21

==> picture [15 x 540] intentionally omitted <==

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

==> picture [103 x 104] intentionally omitted <==

==> picture [144 x 109] intentionally omitted <==

==> picture [94 x 66] intentionally omitted <==

==> picture [126 x 129] intentionally omitted <==

==> picture [127 x 81] intentionally omitted <==

==> picture [58 x 10] intentionally omitted <==

, Make difference

22

==> picture [15 x 540] intentionally omitted <==

Jumplux - Automotive MCU for Mobile Device

USB Media HUB for CarPlay USB PD + Wireless Charger 48V PMIC + MCU USB PD/BC

==> picture [225 x 165] intentionally omitted <==

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

USB PD/BC
----- End of picture text -----

==> picture [58 x 10] intentionally omitted <==

, Make difference

23