ELAN Microelectronics Corp. ELAN Microelectronics Corporation

義隆電子義隆電子義隆電子義隆電子 ELAN Microelectronics Corp.

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ELAN Microelectronics CorporationThe Smart Human Interface Solution Provider


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Sales Breakdown by Product Line (Consolidated)

5,445 7,367 1,537 1,886 2,036

• Touch: Touchscreen Chip, Touchpad• Non-touch: MCU, PC Peripheral , Consumer, Pointing Stick, Affiliated Co. Products

Sales: NT$M 1,908 1,866 2,161

36

64

55

45

39

61

53

47

62

38

62

38

65

35

64

36

57

43

0

25

50

75

100

2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Non-touch

Touch

1,895


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3Q13 Income StatementYoY Comparison (Consolidated)

NT$M

* Based on the current 433 million shares (Reviewed)* Based on the weighted average number of shares outstanding

3Q13 % 3Q12 % YoY(%)

Sales 1,895 100 2,036 100 (7)

Gross profit 830 44 856 42 (3)

Sales expense 118 7 71 3

G&A expense 98 5 100 5

R&D expense 289 15 319 16

Operating profit 325 17 366 18 (11)

Non-operating income & exp. (11) 0 (9) (0)

Profit before tax 314 17 357 18 (12)

Net profit 276 15 324 16 (15)

Belong

Parent company 295 339

Non-Controlling Interests (19) (15)

* EPS (NT$) 0.71 0.88 (19)


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NT$M


3Q13 Income StatementQoQ Comparison (Consolidated)

3Q13 % 2Q13 % QoQ(%)

Sales 1,895 100 2,161 100 (12)

Gross profit 830 44 1,025 47 (19)


G&A expense 98 5 106 5

R&D expense 289 15 278 13

Operating profit 325 17 551 25 (41)

Non-operating income & exp. (11) 0 8 1

Profit before tax 314 17 559 26 (44)

Net profit 276 15 469 22 (41)

Belong

Parent company 295 487


* EPS (NT$) 0.71 1.19 (40)


1Q13~3Q13 Income StatementYoY Comparison (Consolidated)


NT$M

1Q13~3Q13 % 1Q12~3Q12 % YoY(%)

Sales 5,922 100 5,459 100 8

Gross profit 2,746 46 2,166 40 27


G&A expense 311 5 252 5

R&D expense 863 15 812 15

Operating profit 1,288 21 923 17 40

Non-operating income & exp. 36 1 (7) 0

Profit before tax 1,324 22 916 17 45

Net profit 1,121 19 769 14 46

Belong

Parent company 1,176 815


* EPS (NT$) 2.89 2.11 37

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Balance Sheets

NT$M

Sep. 30, 2013 (Consolidated)

(Reviewed)

Current assets 7,216

Cash and cash equivalents 1,114

Current financial assets 355

A/R&A/N 1,634

Inventory 1,227

Other current assets 44

Other current financial assets 2,842

Non-current financial assets 1,119

Fixed assets 744

Other non-current assets 297

Total Assets 9,376

Current liabilities 1,872

Non- current liabilities 447

Total Liabilities 2,319

Capital stock 4,332

Capital surplus 1,445

Retained earnings 1,598

Other equity interest 152

Treasury stock (541)

Non-controlling interests 71

Total Stockholders' Equity 7,057


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Cash Flow Statement

NT$M

(Reviewed)

Sep. 30, 2013 (Consolidated)

Income before tax 1,324

Dep & Amort. 122

Dec.(Inc.) of A/R & N/R (256)

Dec.(Inc.) of inventory (176)

Dec.(Inc.) of investments-trading 141

Others 121

Operating cashflow 1,276

Inc.F/A (31)

Dec.(Inc.) of investments 138

Inc.Time deposit with maturity over three-month (402)

Others (11)

Investment cashflow (306)

Distribution of cash dividends (1,240)

Dec.(Inc.) of Treasury shares (156)

Employee Stock Options exercise 695

Financing cashflow (701)

Change in cash 269

Beg. Cash 845

End Cash 1,114


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Based on current assumptions of future prospects, ELAN expects:

• Consolidate revenue to be approximately between NT$1.78 billionand NT$1.835 billion

• Gross margin to be about 44% to 46%

• Operating income rate to be about 16% to 19%

4Q13 Revenue Forecast


0

200

400

600

800

1000

1200

1400

1600

0

10

20

30

40

50

60

70

Touch Sales 302 435 577 470 455 476 528 528 597 1004 1272 1183 1206 1376 1082

% 23 24 31 35 38 32 37 40 39 53 62 62 65 64 57

Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313

Outstanding Sales for Touch Products

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Unit: NT$M (%)

PS: Based on consolidated sales


1010

2013 Growth Driver in Touch Application

Touchpad for NB & Ultrabook

2Q13: 2.91M 3Q13: 3.86M (QoQ:33%)

Brand: 70%, White-box: 30%

Touchscreen IC for Smart Phone

Touchscreen IC for Tablet

2Q13: 3.23M 3Q13: 2.4M (QoQ: -26%)

Touchscreen IC for Win 8 NB/Ultrabook/Tablet

2Q13: 11.98M 3Q13: 9.74M (QoQ: -19%)

2Q13: 2.37M3Q13: 3.02M (QoQ: 27%)


Touch Panel Fortune in NB & UB

Source:Witsview11


Touch Panel Fortune in AIO

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13Source: Lenovo, Engadget, CNET

Lenovo Ideapad U330

Acer Aspire R7Sony Vaio T13 HP Envy X2

Samsung ATIV Book 9Dell Inspiron

Win 8 with Touch from 11.6” ~ 21.5” Passed Win 8 Certification ( 114 Models, 230 Project )


Smart-TouchscreenTM Has Mass Production Experience for Windows 8

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• Collaboration with >25 ITO Sensor Maker on Windows

• 11 Different EMS Companies

• Over 10.5 Million Total Units

• 11 Notebook Brand Names


Elan’s Smart-TouchscreenTM Supports Windows 8.1

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Elan’s Smart-TouchscreenTM Supports Intel Baytrail -T

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5.5Touch Sensor B Cover

LCD PanelA Cover

Direct Bonding

eTP

A Cover

B CoverTouch Sensor

LCD Panel

Air Bonding

Inno-touch

Smart-TouchscreenTM Provide for AUO & INLX Standard LCD & Touch Panel Module

Cross Section (eTP vs Inno-touch)

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Elan Smart-TouchscreenTM Main Stream

Stack Up for NB & Tablets

Type Stack up Thickness Anti-Bend Optics Cost

OGS

With Direct Bonding

☆☆☆☆Thin

☆☆☆☆Excellent


△△△△High

OGS

With Air Bonding

◎◎◎◎Middle

△△△△Bad

◎◎◎◎Best

◎◎◎◎Low

G1F

With Air Bonding

○○○○Thicker

◎◎◎◎Best

○○○○Good

◎◎◎◎Low

GFF

With Air Bonding

△△△△The Most

Thick

◎◎◎◎Best

○○○○Good

○○○○Middle

Direct bond to LCM

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Without S

OCA/LOCALCM

Sensor Glass

AirLCM

Sensor Glass

ASF

Sensor Glass

OCA1

Film Sensor 1

Cover Lens

OCA1

Film Sensor 1

Film Sensor 2

OCA2

TxRx

TxRx

TxRx

TxRx


Elan Smart-TouchscreenTM Main Stream Film Type Material

Materials Top ViewResistance

Ohm/sq

Resistance

Uniform

Pattern Visibility

Cost

ITO Film△△△△

High

◎◎◎◎

Best


△△△△High

Metal Mesh ☆☆☆☆

Low


○○○○Good

○○○○Middle

AgNW

Silver Nanowire

○○○○Middle

△△△△Bad

◎◎◎◎Best

☆☆☆☆Low

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義隆電子義隆電子義隆電子義隆電子 Elan Microelectronics Corp.

Elan’s Smart-TouchscreenTM

Provides On Cell Solution for Win 8.1

�On-cell Structure Demo

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Elan’s Smart-ClickPadTM Certified for Windows 8.1 Precision Touch Pad

(USB PTP)

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Elan’s Smart-ClickPadTM Certified for Windows 8.1 Precision Touch Pad

(I2C PTP)

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Elan’s Smart-ClickPadTM Provides for Nokia 2520 Power Keyboard

“the Nokia Power Keyboard includes a fully functional keypad with gesture trackpad,

so typing feels as natural as on a laptop” ~Reuters

“Unlike the Surface, however, the attachment features a gesture trackpad” ~thenextweb

Powered by Elan’s Keyboard Module & Touchpad Solution

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Elan’s Smart-ClickPadTM Solution for Chrome Notebook AVL

• ELAN’s Latest Generation Touchpad pass the most recent Google Chrome OS Touchpad Certification Test

• Start shipment in Q114 24


Elan’s Smart-TouchscreenTM with eStylusTM

Solution for Smart Phones

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Hover Control

Glove Operation

Moisture Proof

Stylus Operation

DemoDemoDemoDemo


Coolpad

Elan’s Smart-TouchscreenTM Design Win Smart Phone

Huawei

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Tinno天瓏移動天瓏移動天瓏移動天瓏移動CK TelecomSLHT8561 Y320U S9083


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One Layer - On Cell Capacitive Structure

Cover lensCover lens

Glass

Glass

Glass

Glass

Liquid CrystalLiquid Crystal

Touch Sensor

Color Filter

TFT Process

Polarizer

Two Layers - On Cell Capacitive Structure

Air GapAir Gap

Smart-TouchscreenTM Uses One / Two Layers ITO for On-Cell Application

Caterpillar Type ITO Sensor SITO Type ITO Sensor

Demo


Elan’s Smart-TouchscreenTM Supports

In-Cell Solutions

�In-cell Structure Demo

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Elan’s Smart-TouchscreenTM Design Win New Tablet

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HP DellToshiba


The Smart Human Interface for Multi-Screen of Cloud Computing

30Q & A

Documents

ELAN Microelectronics Corp. ELAN Microelectronics Corporation