義隆電子 ELAN Microelectronics Corp. ELAN Microelectronics Corp. 2Q15 Investor Conference 2015/08/04 1 義隆電子 ELAN Microelectronics Corp. Sales Breakdown by Product Line (Consolidated) Sales: NT$M 7,795 7,686 1,706 2,113 2,001 1,866 1,684 1,519 • Touch: Touchscreen Chip, Touchpad, Fingerprint ID • Non-touch: MCU, PC Peripheral , Consumer, Pointing Stick, Affiliated Co. Products 2 義隆電子 ELAN Microelectronics Corp. 2Q15 Income Statement YoY Comparison (Consolidated) NT$M Sales Gross profit Sales expense G&A expense R&D expense Operating profit Non-operating income & exp. Profit before tax Net profit 2Q15 1,519 643 78 80 303 182 (2) 180 144 % 100 42 5 5 20 12 (0) 12 10 2Q14 2,113 985 162 86 309 428 107 535 440 Belong Parent company Non-Controlling Interests 160 (16) 462 (22) * EPS (NT$) 0.38 1.12 % YoY(% ) 100 (28) 47 (35) 8 4 15 20 (57) 5 25 (66) 21 (67) (66) * Based on the current 441 million shares (Unreviewed) * Based on the weighted average number of shares outstanding 3 義隆電子 ELAN Microelectronics Corp. 2Q15 Income Statement QoQ Comparison (Consolidated) NT$M Sales Gross profit Sales expense G&A expense R&D expense Operating profit Non-operating income & exp. Profit before tax Net profit 2Q15 1,519 643 78 80 303 182 (2) 180 144 % 100 42 5 5 20 12 (0) 12 10 1Q15 1,684 782 99 81 315 287 (9) 278 222 Belong Parent company Non-Controlling Interests 160 (16) 246 (24) * EPS (NT$) 0.38 0.59 % 100 46 6 5 19 16 0 16 13 QoQ(% ) (10) (18) (37) (35) (35) (36) * Based on the current 441 million shares (Unreviewed) * Based on the weighted average number of shares outstanding 4 義隆電子 ELAN Microelectronics Corp. 1H15 Income Statement YoY Comparison (Consolidated) NT$M Sales Gross profit Sales expense G&A expense R&D expense Operating profit Non-operating income & exp. Profit before tax Net profit 1H15 3,203 1,425 177 161 618 469 (11) 458 366 % 100 45 6 5 19 15 (0) 15 12 1H14 3,819 1,769 261 166 605 737 158 895 735 Belong Parent company Non-Controlling Interests 406 (40) 782 (47) * EPS (NT$) 0.97 1.90 % 100 46 7 4 16 19 4 23 19 YoY(% ) (16) (19) (36) (49) (50) (49) * Based on the current 441 million shares (Unreviewed) * Based on the weighted average number of shares outstanding 5 義隆電子 ELAN Microelectronics Corp. Balance Sheets Jun. 30, 2015 (Consolidated) NT$M Current assets Cash and cash equivalents Current financial assets A/R&A/N Inventory Other current assets Other current financial assets Non-current financial assets Fixed assets Other non-current assets Total Assets Current liabilities Non- current liabilities Total Liabilities Capital stock Capital surplus Retained earnings Other equity interest Treasury stock Non-controlling interests Total Stockholders' Equity 8,070 2,370 552 1,092 1,199 25 2,832 1,282 641 351 10,344 3,214 507 3,721 4,411 923 1,552 205 (481) 13 6,623 (Unreviewed) 6 義隆電子 ELAN Microelectronics Corp. Cash Flow Statement Jun. 30, 2015 (Consolidated) NT$M Income before tax 458 Dep & Amort. 74 Dec.(Inc.) of A/R & N/R 195 Dec.(Inc.) of inventory (4) Dec.(Inc.) of investments-trading 76 Others (137) Operating cashflow 662 Inc.F/A (12) Dec.(Inc.) of investments (31) Dec.(Inc.)Time deposit with maturity over three-month 533 Acquisition of intangible assets (11) Others Investment cashflow 7 486 Inc.(Dec.) in short-term loans payable 72 Inc.(Dec.) in guarantee deposits (9) Financing cashflow 63 Change in cash 1,211 Beg. Cash 1,159 End Cash 2,370 (Unreviewed) 7 義隆電子 ELAN Microelectronics Corp. ELAN, Enabling SmartTM Devices 2-in-1 & NB Smart-TouchscreenTM Any Pen/Active Pen Smart-PadTM Smart-Pointing StickTM Smart-LightingPadTM Smart-IDTM Pad Smart-Force PadTM Tablet Smart-TouchscreenTM Any Pen Smart-Active PenTM Fingerprint Smart-IDTM Smart-GestureTM Smart-ForceTM Smart Phone Smart-TouchscreenTM Any Pen Smart-Active PenTM Fingerprint Smart-IDTM Smart-GestureTM Smart-ForceTM 8 義隆電子 ELAN Microelectronics Corp. Newly Launched Smart Phones with Smart-TouchscreenTM Sony E4g 4.7” Sony E4 5” LG X160C4 5” Sony Xperia C4 5.5” 9 義隆電子 ELAN Microelectronics Corp. Smart-TouchscreenTM Single Layer MultiTouch Solution for Ultra-Slim Border Feature Caterpillar Sensor Pattern Sony C5 Ultra 6” 10 義隆電子 ELAN Microelectronics Corp. Pen Input Trend Microsoft Surface Line is heavily invested in Pen Input and transitioning to Active Capacitive with their release of Generation 3 Surface Pro The market demand is for scalability, with Electro Static as the optimal pen technology INTEL proposal of Universal Pen Concept Active Stylus 11 義隆電子 ELAN Microelectronics Corp. Distinguished Tablet Models with Smart-TouchscreenTM ACER Citizen 2.0mm Passive Stylus ASUS Z380KL/K/C/CG On Cell Multi-Touch 12 義隆電子 ELAN Microelectronics Corp. ELAN’s Smart-TouchscreenTM Solution: Touch, Passive, and Active Pen on 2-in-1 HP Spectre x360 Dell Inspiron 13 7000 Series HP Pavilion x360 Convertible Passive stylus Demo And many more to come with Win 10! 13 義隆電子 ELAN Microelectronics Corp. Touch NB Percentage by Type 14 義隆電子 ELAN Microelectronics Corp. ELAN’s Universal Pen/Touch Goal Pen 1 Pen 2 Pen 3 Passive Pen USI Universal Controller Smart Phone Tablet ELAN Touch Solution AIO NB 15 義隆電子 ELAN Microelectronics Corp. Phone model Iphone5S/6/6+ Meizu MX4 Pro Samsung S6 Huawei Mate 7 OPPO N3 LeTv Max Alg. vendor Authentec Goodix Egis PB PB PB Sensor Vendor Authentec (apple) Goodix Synaptics FPC (1020) FPC (1021) FPC 1025 Pixel Array 88*88 96*96 144 * 64 192*192 160*160 160*160 HTC M9+ Nubia Z9 Coolpad TipTop Pro OPPO R7+ Gionee E8 PB PB PB PB PB PB PB FPC1150 FPC(1140) FPC1025 FPC1025 FPC1021 FPC1025 FPC1155 208*80 192*56 160 * 160 160 * 160 160 * 160 160 *160 208* 80 Huawei Honor 7 Meizu MX5 16 義隆電子 ELAN Microelectronics Corp. Finger Print Reader Location 17 義隆電子 ELAN Microelectronics Corp. ELAN’s Smart-IDTM Module Fingerprint sensor module • FAC-120S/120C Capture area: 6x6 mm • FAC-160S Capture area: 8x8 mm Silver Gold White Black • FAC-820R Capture area: 4x10.5 mm • FAC-519R Capture area: 2.6x9.8mm • Specially formulated Epoxy resin and SiP packages available in surface staining, and the hardness is Mohs 6H of synthetic material, with advantage that the acid and alkali, and resistance to scratch. 18 義隆電子 ELAN Microelectronics Corp. FPR Comparison Table ELAN FPC Surface Coating / Sapphire Coating Algorithm Startek / PB PB Sensor Size (Pixel Array) FAC-120S (120*120) FAC-120C (120*120) FAC-160S (160*160) FAC-820R (80*208) FAC-519R(56*192) FPC1020 (192*192) FPC1021 / FPC1025 (160*160) FPC1150 / FPC1155 (80*208) FPC1140 / FPC1145 (56*192) FPC1022 / FPC1035 (88*112) PKG type SiP(system in package) No external components FPC2050 enhance IC ESD 15KV air W/O bezel Bezel is needed Hardness 6H 5H Noise Immunity Excellent Noise-Sensitive Process 0.35u 5M 0.18u 6M New Feature Under Glass NA 19 義隆電子 ELAN Microelectronics Corp. Smart-IDTM Business Models 1. Wafer ( Die ) 2. LGA Package 3. Molding Strip 20 義隆電子 ELAN Microelectronics Corp. Q&A