#1OF 先進設備科技整合領航者 的京鼎精密科技 Foxsemicon Company Introduction Stanley Lu, CFO 2017/8/28#2Disclaimer 3413.TT We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding our financial conditions and business strategies. We have based these forward-looking statements on our current expectations and projection are reasonable, such forward-looking statements are inherently subject to risk, uncertainties, and assumptions about us. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risk, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements. 2017/8/28 Foxsemicon integrated technology inc. 2#3Agenda 01 Company Profile 02 Operation Strategies 03 Competitive Advantage 04 Operation Performance 3413.TT 2017/8/28 Foxsemicon integrated technology inc. 3#4Company Profile 2017/8/28 01 Company Profile 02 ☑Operation Strategies 03 ☑Competitive Advantage 04☑Operation Performance 3413.TT Foxsemicon integrated technology inc. 4#5Company Profile 3413.TT Foxsemicon fit: Established: 2001/04/26 Listed on Taiwan Stock Exchange: 2015/7 President: Yin-Kuang, Liu Capital: NT$ 787.5 million Employees: 1800+ Business: ■Semiconductor equipment (Contract Manufacturing) Automation equipment (Total Solution Provider) 【Headquarter Hsinchu Science Park, TW Fiti - Chunan Manufacturing Sites 】 Shanghai & Jiangsu, CN Fiti - Songjiang & Kunshan 【Sales Office】 CA & TX, US Fiti - San Jose & Austin 2017/8/28 +A+SILKE sica grated teenage hung hai Foxsemicon integrated technology inc. 5#6Company History 2001-2005 2006-2015 2016~ 3413.TT 2001 Foxsemicon Company setup in Chunan 2002 Approved vendor certified by the largest semiconductor equipment maker of the world 2003 Hsinchi Science Park HQ setup 2005 Shanghai, China Manufacture Center setup 2017/8/28 2007 Ranked 578th out of Taiwan Great 1000 Manufacture Company 2013 Supplier Performance awarded by world's leading semiconductor equipment provider 2014 ISO ISO-13485 Certified 2015 IPO on Taiwan Stock Exchange Foxsemicon integrated technology inc. 2016 Supplier Aftermarket Collaboration awarded by world's leading semiconductor equipment provider 2016 Global Views: Taiwan's Rank 17 in 2000 Survey Top 50th operating performance companies 2017 Contract Manufacturing supplier of the year awarded by world's leading semiconductor equipment provider 6#7Management Team Title President 3413.TT Name Experience Years Ying-Kuang, Liu Senior Vice President, Hon Hai Precision IND. CO., LTD >30 Senior Vice President Jackson Huang of Sales Dept. Chairman, Prosys Technology Integration, Inc. Vice President, Sales department of ASYST/PST >25 Vice President of R&D Dept. Director, SIMPLO TCHNOLOGY CO., LTD. Cheng-Tsu Fu >25 Associate Professor, National United University CFO, Promise Technology, Inc. Executive Assistant to Chairman Frank Chen Vice President, Foxsemicon Integrated Technology Inc. Controller, Applied Materials Taiwan >30 Senior associate vice president of Sales Dept. Kevin Chiu Manager of Prosys Technology Integration, Inc. Manager of Sales department of ASYST/PST >20 Senior Manager of Financial Control Division Stanley Lu Senior Deputy Manager, FIH Mobile Limited Deputy Manager, Foxconn Technology Co., LTD. >20 Manager of Account Dept. Deborah Chung Foxsemicon Integrated Technology Inc. >15 2017/8/28 Foxsemicon integrated technology inc. 7#8Operation Strategies 01 ☑[ Company Profile 02 Operation Strategies 03 ☑Competitive Advantage 04 ☑Operation Performance 3413.TT 2017/8/28 Foxsemicon integrated technology inc. 8#9Market Orientation Semiconductor front-end process equipment Upstream Mid-stream Downstream IC Manufacturing (Foundry/Memory) IC Packaging & Testing IC Module IP Design /IC Design OEM Goods & Services 3413.TT Automation equipment Layer 5 Business Layer 4 Factory Layer 3 System + Flexibility Service IC Design Manufacturi ng Manufacturing & & Mask Chemicals Substrate Inspection equipment Inspection equipment Lead Frame Speed Cost IC Channel Layer 2 Machine Contract Manufacture Business Model Component Module Machine parts • Sheet metal • PCBA • Cable harness • Surface treatment • Welding • Testing & CMM Layer 1 Component Move Service • Mechanical assembly . • System assembly ⚫ Refurbish Service • ODM/JDM design • Client-side One-stop shop for integrated service solution Electrical assembly inventory mgnt • Virtual Factory . • Equipment Sub-system assembly • Concurrent System installation Design • Global logistics Customize Module Intelligent 2017/8/28 Foxsemicon integrated technology inc. 9#10Product Distribution 3413.TT Toward a company of professional technology service, FITI developed advanced equipment integrated with mechanical, electrical, software and optical engineering capabilities Semiconductor Equipment Thin Film Equipment(CVD, PVD) Etching Equipment CMP Equipment Metrology Equipment ■Spare Parts and Repair service Fab Automation Micro Contamination Control Industrial Automation FPD/TP Equipment Panel Key Components Laser Cutter Laser Repair ΑΟΙ Light-on Tester/Probe Station Loader/Unloader Cassette Optoelectronic Equipment Precise Wafer Saw PECVD Automated Material Handling PV Module Production Line LED Bulb Production Line Cell Phone Production Line Cable/Connector Production Line Li-ion Battery Robot Application Factory Planning and Building 2017/8/28 Medical MEDICAL Equipment MEDICAL Mobile Nursing Cart Health Managing KIOSK Medical Automation Medical Equipment Key Components Foxsemicon integrated technology inc. Environment 2000.0 0. Control Integrated Eco Monitor Platform Waste Water Plant Automation DAQ and Monitor System 10#11Operation Strategies Depth 2017/8/28 Installed, RMA and Spare Parts professional service System Integration Sub-Module Integration Frame and Enclosure Special Treatment Precise Parts Semiconductor Equipment 3413.TT Factory Automation AOI Advanced laser process Optical Vision Integration algorithm Electromechanical Automation Software Integration Product development engineering analysis Industrial Automation Cloud monitoring system Industry waste water treatment and AC Cloud Integrate ES Equip. and AC Cloud Environment Control Development of high-end medical equipment Peripheral Development Medical critical assembly parts Medical Equipment Installed, RMA and Spare Parts professional service FPD/TP Equipment Breadth Foxsemicon integrated technology inc. 11#12Market Profile (1/2) US$ Billion Worldwide Semiconductor Equipment Market Expense 60.00 120% 54.33 49.64 100% 50.00 40.48 80% 40.00 36.53 37.49 60% 31.82 30.00 40% 20% 20.00 23% 18% 9% 0% 1% 10.00 -3% -20% -14% 0.00 -40% 2013(A) 2014(A) 2015(A) 2016(A) 2017(F) 2018(F) Market -Growth US$ Billion 60 60 World Semiconductor Equipment Market 50 50 40 40 30 20 10 7% 9% 12% 6% 9% 23% 6% 9% 9% 6% 9% Back end Front end 85% HH 84% 0 2015(A) 85% 85% 2016(A) 2017(F) Test Equipment 2018(F) Front End Equipment 2017/8/28 Package Equipment Foxsemicon integrated technology inc. 3413.TT ■SEMI forecasts global semiconductor equipment spending this year and next years will continue to record high ■The main growing momentum is coming from China market Source: World Fab Forecast report, SEMI(2017/6) ■ Semiconductor front end equipment holds more than 80% of the expense, and estimated the equipment will continue to grow for 2017 and 2018. Source: World Fab Forecast report, SEMI(2017/6) 12#13Market Profile(2/2) Fab Equipment Spending by Region US$ Billion Europe & Mideast ROW 3.82 1.95 8% 4% Taiwan China 12.11 6.86 24% 14% Americas 5.21 11% Japan Korea 5.09 14.61 10% 29% 3413.TT US$ Billion Europe & Mideast ROW 4.60 2.13 8% 4% Taiwan 10.14 19% China 11.53 21% Korea 15.12 Americas 28% 5.48 Japan 10% 5.33 10% Demand for 2017 US$ 49.6 billion Demand for 2018 US$ 54.3 billion Source: World Fab Forecast report, SEMI(2017/6) ■SEMI predicted Korea will be the world's largest regional market for semiconductor equipment in the next two years. ■China will exceed Taiwan and becomes the second largest region worldwide in 2018 2017/8/28 Foxsemicon integrated technology inc. 13#14Competitive Advantage 01 Company Profile 02 ☑Operation Strategies 03 Competitive Advantage 04 ☑Operation Performance 3413.TT 2017/8/28 Foxsemicon integrated technology inc. 14#15Competitive Advantage 3413.TT Industry leading in vertically integrated manufacturer ability for the semiconductor equipment Completely management system on design, manufacturing, quality and supply chain Having crucial technology and obtain manufacturing process certificates 2017/8/28 Semiconductor Fab automation and high-performance cleaner technology Fields-crossed RD and integrated capacity of optics, machinery, electronics control, software and process Comprehensive automation systems and output technology ability Foxsemicon integrated technology inc. 15#16Operation Performance 01 10 02 70 03 04 ☑Company Profile ☑Operation Strategies ☑Competitive Advantage Operation Performance 3413.TT 2017/8/28 Foxsemicon integrated technology inc. 16#17Revenue growth (Unit: NT$m) 9,000 8,000 7,000 6,000 5,409 +18% 5,000 4,603 4,000 3,000 2,000 1,000 2017/8/28 +45% 7,838 3413.TT 3,897 2014 2015 2016 2017H1 Consolidated revenue Growth Rate Foxsemicon integrated technology inc. 17#18Dividend Policy 3413.TT 2014 2015 2016 EPS(NT$) 5.38 8.11 9.05 Cash DPS(NT$) 1 4 4 Stock DPS(NT$) Total 0.5 1 4 4.5 Payout ratio(%) 19% 49% 50% 2017/8/28 Foxsemicon integrated technology inc. 18#193413.TT Thanks for your attention. 京鼎精密科技股份有限公司 Foxsemicon Integrated Technology, Inc. 2017/8/28 Foxsemicon integrated technology inc. 19