IR Presentation 3Q IR...2-2. Display & OLED Market Outlook 16 Oxide TFT Technology is Solution for Flexible, Wearable Display LTPS and Oxide TFT Backplane Manufacturing Capacity Display

Confidential and Proprietary

www.jusung.com

240 Opo-ro, Opo-eup, Gwangju-si

Gyeonggi-do, Korea

World 1St Technology

Only 1 In The World

IR Presentation

September, 2015

0


1

Table of Contents

1. Company Overview

2. Market Trend & Competitiveness

3. Financial Status


1-1. Vision

Culture Spirit

Innovate Technology!

Create New Industry!

Make Happiness!

2


1-2. Mission

First Mover & Market Developer

Semiconductor, Display, Solar Cell Technology Integration

World’s 1 Technology

Only 1 in the World

st

3


1-3. Spirit & Culture

Think for the First !

Work for the No.1 !

Make New Records !

1. Creative · Innovative People

4

2. Success-Sharing Culture

Mutual Success of JUSUNG &

Its Customer


5

1-4. Campus Map

Leading Korean Enterprise with Creative · Innovative Technology!


1-5. Future Growth Engine

Future Growth Engine = Innovative R&D

46.0% 47.9% 46.4% 41.8%

66.0%

10%15%20%25%30%35%40%45%50%55%60%65%70%

2010 2011 2012 2013 2014

R&D Employee Ratio R&D Investment (Accumulated)

0

1000

2000

3000

4000

5000

6000

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

USD 507.4 M

Number of Patents

1,573 1,667 1,723 1,739

1,875

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2010 2011 2012 2013 2014

6


1-6. Core Technology Competitiveness

Competency With Leading-Edge Technology in Core Industries

1. Semiconductor

(Core Technologies)

2. Display(LCD & OLED)

3. Solar Cell 4. OLED Lighting

Light Emitting PV Electricity

Technology

7


8 World’s First Technology & Product !

Korea First

1995 2001 2002 2005 2006 2009 2010 2011 2012 2014 2013

World’s First

Warm Wall Type

UHV- CVD

Korea First

Dry Etcher

& Asher

World’s First

Selective EPI

PE-CVD

World’s First

SD-CVD (ALD)

World’s First

Local Space

Plasma Tech.

Korea First

LED MO-CVD

World’s First

IGZO-CVD

OLED Lighting

Total Solution

World’s First

SDP-CVD

World’s First

LSP-CVD

World’s First

TSD-CVD

Business Area

Solar Total

Solution

(c-Si, J-Cell, TF)

Only One Only One

1-7. Milestone

8


1-8. Mutual Success of JUSUNG & Its Customers

■ 78 Worldwide Customers with World’s Best Product & Technology

Outstanding

Contribution Award Best Partner Award Best Supplier

Award Outstanding

Contribution Award

◆

◆

◆

9

Headquarter

Subsidiary

Local Office

Sales Agent

Appreciation

Plaque Appreciation

Plaque

Appreciation

Plaque Best Supplier

Award


10

Table of Contents

1. Company Overview


3. Financial Status


2-1. Semiconductor_Tech Roadmap

11

Source : Gartner

Number of DPT steps

with DRAM Tech Migration

Tech Migration Roadmap of DRAM

Manufacturers

Number of DPT steps to increase in line with DRAM tech migration

Device Tech Migration : 2Xnm → 1Xnm

Source : Gartner

2012 2013 2014 2015 2016

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

28 25 20 1X

29 25 21

30 25 20 2

4

5

7

9

0

1

2

3

4

5

6

7

8

9

10

30nm 2Xnm 2Ynm 2Znm 1Xnm

DPT Steps


NAND Tech (2D → 3D) : ALD Step ( 3~4 layer → 12~13 layer)

0 0.4 5.2

30.2

49.8

65.2

0

20

40

60

80

100

2012 2013 2014 2015 2016 2017

3D

Ma

rke

t S

ha

re (

%)

Source : 2013.10 IHS Inc. Source : 2013.08 Flash Memory Summit

2-1. Semiconductor_3D NAND Flash Era for Future

NAND Flash Technology Trend Global Forecast

3D NAND’s Share of Total NAND Flash

12


Defects Control

Decrease of *TAT

Simplify Processing Step

Customer’s Requirement JUSUNG System

1. Defects Control

1) In Chamber Native Oxide

Control

2) Incubating Time Control

3) Interface Control

4) Cross Contamination Zero

5) Particle Zero

6) Thermal & Plasma Damage

Zero

7) Stress Control

2. Decrease of TAT

3. Simplify Processing Step

Inn

ov

ati

ve

Tech

no

log

y

2-1. Semiconductor_Customer’s Requirement &Challenges

*TAT : Turn Around Time

13


14

2-1. Semiconductor_JUSUNG LSP Technology

SDP System (Space Divided Plasma)

:Semi-Batch Type

TSD System (Time Space Divided)

: Single Type

LSP Technology (Local Space Plasma)

① Interface Control

② Incubation Time Control

③ Thermal & Plasma Damage Free

④ Easy System / Process Integration

⑤ Individual Source/Reactant System


UHV-CVD

& OEC (Warm Wall Type )

LSP Technology Dry Etcher

Hidden Champion First Mover

SDP-CVD TSD-CVD SD-CVD MO-CVD

2-1. Semiconductor_Product & Technology

15

Future Transistor Tech.

- Si SEG ; Elevated

Source Drain

- SiGe, SiC

- a-Si, Poly Si

- OEC (Oxide Elimination Chamber)

- High-K

- Metal

- ULTO

Defect Free Tech.

- High-K

- Metal

- SiO / SiOC / SiON

- SiN / SiBN

- Oxidation

- Nitridation

- High-K

- Metal

Defect Free Tech.

- DPT Partition Etch

- STI & Gate Etch

- Hard Mask Etch

- Poly Etch Back

- MTJ Etch

Defect Free Tech.

- High-K

- Metal

- SiO / SiOC / SiON

- SiN / SiBN

- Oxidation

- Nitridation


2-2. Display & OLED Market Outlook

16

Oxide TFT Technology is Solution for Flexible, Wearable Display

LTPS and Oxide TFT Backplane

Manufacturing Capacity Display Panel Maker CAPEX Forecast

Source: HIS, Eugene Investment Source: DisplaySearch


Only One for the Future Technology

a-Si TFT LCD IGZO TFT LCD IGZO

AMOLED

Bendable/ Flexible

AMOLED

Transparency

AMOLED

Tech.

Trend

KPI

JUSUNG

Tech.

(up to 8G) :

a-Si, SiNx

OLED Encapsulation : Thin Film Encap. (SiON, SiOC, Al2O3)

Touch panel sensor : Insulator, TCO, Index matching (Al2O3, BZO, SiN/SiO)

LTPS

AMOLED

LSP

CVD

CCP

PE-CVD

Thin Film Transistor : Active, GI, ESL, PAS(a-Si, IGZO, SiO2, SiNx, Al2O3)

Plastic OLED : Barrier (SiO2, Al2O3)

1. Mobility 0.5cm2/Vs 2. Well Known

1. Mobility >50cm2/Vs 2. Anneal Unif.

3. Cost Reduction

4. Scale Up

1. Mobility >50cm2/Vs 2. Reliability

3. Repeatability

4. Stability

1. Mobility >50cm2/Vs 2. Encap Reliability

3. Repeatability

4. Stability

1. Mobility > 50cm2/Vs 2. Isolated Thin Film

3. Encap Reliability

4. Repeatability

5. Stability

1. Mobility >50cm2/Vs 2. Black Light Unit Control 3. Transparency

4. Reliability

5. Repeatability

6. Stability

2-2. Display & OLED_ Trend vs. JUSUNG

17


Innovative Technology for New FPD

TV Panel

High Speed

High resolution

Good uniformity

Large size

Particle free

Very Thin Film

IT Panel

High Quality

New material

Flexible

Transparent

Up to Gen. 10

Inn

ov

ati

ve

Tech

no

log

y

Low Power

Consumption

Main Product Requirements Key parameters

Local

Space

Plasma

Advantage of LSP

1) Low Plasma Damage

2) Low Falling Particle

3) Zero Arcing

Core Requirement

1) Brightness

2) Speed

3) Reliability

Technology

2-2. Display & OLED_ FPD Key Requirements and Solution

18


LCD OLED

First Mover & Market Developer

TSP LED

2-2. Dispaly & OLED(Lighting)_ Product & Technology

R2R

19

- Index matching

(SiNx/SiO2)

- TCO layer

(ITO, ZnO)

- Encapsulation

(Al2O3, SiNx)

- LED

(GaN on Sapphire)

(GaN on Si)

- Power Device (GaN on Si)

(SiC)

TFT

- a - Si

- SiN

- SiO

- IGZO

- AlO

- Etcher

Passivation

- AlO

- SiN

- SiO

Barrier

- SiOX

- SiOC

- Al2O3

TFT

- IGZO

- Al2O3

- SiO

- SiN

Encap-

sulation

- SiOX

- SiOC

- Al2O3

- PECVD

- MOCVD

- ALD

- Sputter

Lighting

Flexible Solar

TSP

Display


20

Table of Contents

1. Company Overview


3. Financial Status


3-1. Financial Highlights(Non-consolidated )

21

2015.2Q Earnings Review

Sales

Gross Profit

Operating

Profit

Net Profit

(YoY 26%)

(% of Sales: 42%)

(% of Sales: 4.8%, YoY 304%)

0.4 (YoY 104%)

(Unit:Wbn)

Sales Revenue Trends (Unit:Wbn)

FY 2012 FY 2013 FY 2014 2015.1H

Operating Profit (81.2) 2.1 9.9 2.8

Net Profit (114.6) (36.9) (20.8) (0.3)

408

41.2

17.2

2

76.8

151.6

140.4

40.8 37.8

83.2

57.8

23.1

97.6

42.2

10.1 12.9

16.2

15

7.1

0

20

40

60

80

100

120

140

160

FY 2012 FY 2013 FY 2014 2015 1H

Solar Cell FPD SEMI

75


3-2. Sales Breakdown (Non-consolidated )

(Unit:Wbn,%)

22

Sales Breakdown By Product Sales Breakdown By Region

53%

26%

59%

77%

30%

64%

30%

13%

17% 10% 11% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2012 FY 2013 FY 2014 2015 1H

Solar Cell FPD Semi

76.8 151.6 140.4 75

65% 61%

55%

69%

2% 2%

6%

1%

18% 30% 33%

26% 3%

1% 3% 0% 12%

6% 3% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2012 FY 2013 FY 2014 2015 1H

US(ROW) Europe China Taiwan Korea

(Unit:%)


3-3. Backlog & Expected Sales By Product (2015.6.31)

(Unit: Wmn,%)

23

Total Backlog Expected Sales By Product

SEMI FPD Solar Cell

51%

44%

5% 6,896

(22.7%)

20,793

(68.4%)

2,719

(8.9%)

TOTAL

30,407


24

221 207

143

197%

273%

183%

127

178%

Decrease of Total Loan & Improve Debt Ratio thanks to Sales Recovery and

Increasing Margin

(Unit:Wbn,%)

0%

50%

100%

150%

200%

250%

300%

0

50

100

150

200

250

FY 2012 FY 2013 FY 2014 2015. 1H

Interest Bearing Loan(L) Debt Ratio®

3-4. Interest Bearing Loan & Debt Ratio


25

Appendix.


Appendix 1. Income Statement(Non-consolidated)

(Unit:Wmn)

26

2Q '14 1Q '15 2Q '15 QoQ YoY 2014 1H 2015 1H YoY

1.Sales Revenue 32,694 100.0% 33,814 100.0% 41,177 100.0% 21.8% 25.9% 65,898 100% 74,991 100.0% 13.8%

Solar Cell

FPD

Semiconductor

5,146 6,926

20,622

15.7% 21.2% 63.1%

5,025 2,024

26,765

14.9% 6,0%

79,2%

2,076 8,125

30,976

5.0% 19.7% 75.2%

-58.7% 301.4% 15.7%

-59.7% 17.3% 50.2%

6,639 16290 42,969

10.1% 24.7% 65.2%

7,101 10,149 57,741

9.5% 13.5% 77.0%

7.0% -37.7% 34,4%

2.COGS 19,981 61.1% 19,827 58.6% 23,953 58.2% 20.8% 19.9% 41,184 62.5% 43,780 58.4% 6.3%

3.Gross Profit 12,714 38.9% 13,986 41.4% 17,224 41.8% 23.2% 35.5% 24,715 37.5% 31,210 41.6% 26.3%

4.SG&A 12,227 37.4% 13,170 38.9% 15,261 37.1% 15.9% 24.8% 24,016 36.4% 28,431 37.9% 18.4%

R&D Expense 7,404 22.6% 7,214 21.3% 7,402 18.0% 2.6% 0.0% 14,262 21.6% 14,616 19.5% 2.5%

5.Operating

Income 486 1.5% 816 2.4% 1,963 4.8% 140.6% 303.9% 698 1.1% 2,779 3.7% 298.1%

6.Other Operating

Expense (2,432) -7.4% 412 1.2% 489 1.2% 18.7% 120.1% (2,090) -3.2% 901 1.2% 143.1%

7.Other Non-

operating

Expense (270) -0.8% (2,011) -5.9% (1,997) -4.8% -0.7% 639.6% (12,135) -18.4% (4,008) -5.3% 67.0%

8.Income Before

Income Tax (10,621) -32.5% (783) -2.3% 455 1.1% 158.1% 115.7% (13,526) -20.5% (328) -0.4% 97.6%

9.Income Tax

Expense 127 0.4% (11) 0.0% 16 0.0% 260.0% 87.3% 1,072 1.6% 6 0.0% 100.4%

10.Net Income (10,748) -32.9% (772) -2.3% 439 1.1% 156.9% 104.2% (14,599) -22.2% (334) -0.4% 97.8%


Appendix 2. Balance Sheet Summary(Non-consolidated)

Accounts 2015.1H FY 2014 FY2013

Current Assets 116,921 116,181 171,139

Quick Asset

Cash and Cash Equivalent

Short-term financial Instruments

Account Receivables-Trade

Other Current Assets

Inventories

4,034 61

54,042 6,647

52,137

14,376 55

49,609 4,136

48,005

24,050 337

84,562 7,489

54,701

Non-Current Assets 183,599 188,419 200,300

Investment Assets

Tangible Assets

Intangible Assets

Other Non-Current Assets

23,162 136,451 12,712 11,274

23,165 140,190 12,819 12,245

43,787 134,154 7,044 15,315

Total Assets 300,520 304,600 371,439

Current Liabilities 179,738 177,251 262,318

Account Payables -Trade

Short-term Borrowings

Current portion of Long-term debts

Other Current Liabilities

44,194 105,566

6,000 23,978

30,944 119,027

6,000 21,280

47,024 120,395 22,000

72,899

Non-Current Liabilities 12,789 18,893 9,666

Long-term Borrowings

Convertible Bonds

Other Non-Current Liabilities

5,100 0

7,689

8,100 0

10,793

0 0

9,666

Total Liabilities 192,528 196,144 271,984

Capital Stock 24,125 24,125 20,625

Capital Surplus

Other Capital

Accumulated Other Comprehensive Income

Retained Earnings or Accumulated Deficit

146,227 317

11,808 -74,485

145,952 591

11,946 -74,158

130,024 591 253

-52,038

Total Shareholders’ Equity 107,992 108,456 99,455

Total Liabilities and Total Shareholders’ Equity 300,520 304,600 371,439

(Unit:Wmn)

27

Documents

IR Presentation 3Q IR...2-2. Display & OLED Market Outlook 16 Oxide TFT Technology is Solution for Flexible, Wearable Display LTPS and Oxide TFT Backplane Manufacturing Capacity Display