Slide 1: 2Q 2019 Investor Conference
2Q 2019 Investor Conference August 14, 2019 Deputy Spokesman: Joseph Chuang Tel: 886-3-5786005 ext.3120 E-mail: joseph@sunplus.com Make difference
Slide 2: Sunplus Affiliates
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
Slide 3: Sunplus Group
Sunplus Group Sunext Technology Generalplus Technology Intelligent Driving & Ultra Consumer IC/ Wireless High-Definition charger DVD/Automotive/Audio IC & IP Sunplus Innovation Jumplux Technology Technology Automotive MCU & USB UVC & HID Application Media Controller , Make difference 2
Slide 4: Sunplus Product Portfolios
Sunplus Product Portfolios AVM/BSD In-Vehicle CD/ DVD Player Infotainment RSE Karaoke/Video boombox Display Audio Soundbar , Make difference 3
Slide 5: Sunplus Research & Technologies
Sunplus Research & Technologies • Dolby, DTS, Hi- • 2D/3D AVM • CarPlay Res • De-interface, 3D • Android Auto • Surround sound comb filter, SNR • CarLife • EQ, Virtual Bass, • DeHaze • WebLink SRC, AEC, NR,.. Image/ Phone Audio Video Link , Make difference 4
Slide 6: Plus1 Concept
Plus1 Concept Peripheral (P) chip Computing (C) chip Mature Process Advanced Technology GPIO/ RS232/ I2C/ USB UART/ Others 1-core/ 2-core/ 4-core/ ARM/ DSP Process 18um 13um 55nm 40nm 28nm 16nm 7nm Technology <$100K <$200K <$700K <$1M <$2M ~$3M >$7M Mask Cost Seperating C chip / P chip According to
Slide 7: C+P = Plus1 Solutions
C+P = Plus1 Solutions , Make difference 6
Slide 8: C+P = Plus1 Solutions
C+P = Plus1 Solutions , Make difference 7
Slide 9: C+P = Plus1 Solutions
C+P = Plus1 Solutions , Make difference 8
Slide 10: Very Wide Ranges of Applications
Very Wide Ranges of Applications Intelligent Terminal Industrial 4.0, Made in China 2025 Smart Payment Maker , Make difference 9
Slide 11: IP Solutions
IP Solutions -Experience Optimized IP Solutions for SoC Design IC Design & IP Design Service Media I/F (Audio/Video) MIPI RX IP，HDMI Tx IP，LVDS IP， AUDIO ADC AUDIO DAC，VIDEO DAC… Data/Com I/F (Networking/Datacom) 10/100 ETHERNET PHY，USB 2.0，USB 3.0 DDR 3/2 PHY，SerDes… SoC Companion SAR ADC，Pipeline
Slide 12: Human Resources
Human Resources Global Employees Production 7% Administration 29% Global Employees/ R&D R&D 64% 1,084 / 699 40% Master above Sunplus HR Other 35% Sunplus HR/ R&D R&D 65% 302 / 197 61% Master above * Data by 2019/6/30 , Make difference 11
Slide 13: Q2 Consolidated Results
Q2 Consolidated Results (NT$ million) 2019Q2 2019Q1 2018Q2 QoQ YoY Net Sales 1,532 100% 1,180 100% 1,799 100% 30% (15%) COGS 886 58% 675 57% 1,103 61% 31% (20%) Gross Margin 646 42% 505 43% 695 39% 28% (7%) R&D Expenses 379 25% 357 30% 467 26% 6% (19%) SG&A Expenses 195 13% 191 16% 205 11% 2% (5%) O
Slide 14: 1H Consolidated Results
1H Consolidated Results (NT$ million) 2019 1H 2018 1H YoY Net Sales 2,711 100% 3,228 100% (16%) COGS 1,561 58% 1,984 61% (21%) Gross Margin 1,150 42% 1,245 39% (8%) R&D Expenses 736 27% 921 29% (20%) SG&A Expenses 385 14% 424 13% (9%) Operating Net Profit (Loss) 29 1% (100) (3%) (128%) Non-Op. Gain
Slide 15: 2019 Affiliates' Contribution
2019 Affiliates’ Contribution 2Q '19 Net Sales : 1,532 MNT$ 2Q '19 Net Income MNT$ Others 8% Sunplus 21% 98 SunplusIT 17% 45 Generalplus 54% 6 Sunplus Generalplus SunplusIT 1H '19 Net Sales : 2,711 MNT$ 1H '19 Net Income MNT$ Others 9% Sunplus 24% 130 SunplusIT 17% 62 13 Generalplus 50% Sunplus Gene
Slide 16: Q2 Consolidated Balance Sheet
Q2 Consolidated Balance Sheet Amount: NT$million Total Assets Cash & S-T Investment Account Receivable Inventory L-T investment (equity method) Intangible Assets Total Liabilities Account Payable Total Shareholder Equity Net Cash Folw in(out) From Operation From Investment From Financing Capex 1H'06
Slide 17: Cash Flows
Cash Flows (NT$ million) 2019Q2 2019Q1 2018Q2 QoQ YoY From Operation 152 30 (89) 410.0% (270.8%) From Investment (277) (16) (497) 1599.0% (44.3%) From Financing 5 (155) 20 (103.4%) (73.6%) Net Cash Flow in (out) (117) (141) (560) (17.0%) (79.1%) Cash and Cash equivalents 2,978 3,095 3,455 (3.8%) (13
Slide 18: Non-Operating Gain
Non-Operating Gain (NT$ million) 2019Q2 2019Q1 2018Q2 QoQ YoY Other Income 27 23 25 14% 6% Exchange Gain (Loss) (8) 15 (11) (149%) (30%) Gain on Disposal of Investment 0 61 23 (100%) (99%) Investment Gain Recognized under 1 (17) (5) (104%) (113%) Equity Method Non-Operating Gain 17 80 36 (79%) (53%)
Slide 19: Consolidated Net Sales & Gross Profit
Consolidated Net Sales & Gross Profit NT$ million GP YoY: GP YoY: -7% -8% GP QoQ: +28% 43% 42% 42% 39% 39% 1,799 3,228 1,532 2,711 695 1,245 1,180 646 1,150 505 2Q '18 1Q '19 2Q '19 1H '18 1H '19 COGS Gross Profit Gross Margin COGS Gross Profit Gross Margin , Make difference 18
Slide 20: R&D Expenses (Sunplus only)
R&D Expenses (Sunplus only) NT$ million 41% 43% 39% 40% 37% 33% 133 136 129 112 112 103 1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 R&D Expense R&D Expense of Sales , Make difference 19
Slide 21: Consolidated Operating Net Profit
Consolidated Operating Net Profit NT$ million YoY: +211% YoY: -128% QoQ: -266% 72 29 1.1% 23 4.7% 1H '18 1H '19 -3.1% 1.3% 2Q '18 1Q '19 -3.7% 2Q '19 -100 -44 Operating Net Profit Operating Margin Operating Net Profit Operating Margin , Make difference 20
Slide 22: Consolidated Net Profit
Consolidated Net Profit NT$ million YoY: -125% YoY: -197% QoQ: -12% 13 7 0.6% 6 0.4% 0.5% 2Q '18 -1.4% 1Q '19 2Q '19 1H '18 -0.4% 1H '19 -25 -14 Net Profit Net Profit Margin Net Profit Net Profit Margin , Make difference 21
Slide 23: Financial Statement
Financial Statement 1 0.72 0.72 42% 40% 42% 42% 42% 0.2 40% 0.01 0.02 8.47 7.87 7.56 6.82 6.08 2.71 2014 2015 2016 2017 2018 2019 1H Consolidated Net Sales (BNT$) Gross Margin EPS , Make difference 22
Slide 24: SunplusiT
SunplusiT - Smart Imaging and Man-Machine Interaction Enabler UVC Application HID Application NB Cam Backend ISP MCU Web Cam RF Dashboard Cam Optical Sensor Document Scanner Controller Easy Gesture Solution , Make difference 23
Slide 25: Sunext IC Solutions
Sunext IC Solutions - Driving to Intelligent Automation Intelligent Driving Ultra High-Definition 3D Printer 4K UHD BD Barcode Printer HD BD IP CAM Driver USB DVD/CD for Automotive , Make difference 24
Slide 26: Jumplux
Jumplux - Automotive MCU for Mobile Device USB Media HUB for CarPlay USB PD + Wireless Charger 48V PMIC + MCU USB PD/BC , Make difference 25
Slide 27: Q & A
Q&A , Make difference