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Page 1: Investor ppt Q4'13 final - filecache.drivetheweb.comfilecache.drivetheweb.com/ir1_actions-semi/133/download/Investor... · Safe HarborStatement Statements contained in this presentation

Presentation

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Page 2: Investor ppt Q4'13 final - filecache.drivetheweb.comfilecache.drivetheweb.com/ir1_actions-semi/133/download/Investor... · Safe HarborStatement Statements contained in this presentation

Safe Harbor StatementStatements contained in this presentation that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements concerning the outlook for its dual-core and quad-core solutions in domestic and overseas markets, customer acceptance of the Actions Semiconductor's new products and corresponding increases in market share, Actions Semiconductor's belief that it is positioned to capture some upside from these trends, and Actions Semiconductor's future expectations with respect to revenue, gross margin, operating expenses and share-based compensation expense. Actions Semiconductor uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are estimates reflecting current assumptions, expectations and projections about future events and involve significant risks, both known and unknown, uncertainties and other factors that may cause Actions Semiconductor's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, customers' cancellation or modification of their orders; our failure to accurately forecast demand for our products; the loss of, or a significant reduction in orders from, any of our significant customers; fluctuations in our operating results; our inability to develop and sell new products; defects in or failures of our products; the expense and uncertainty involved in our customer design-win efforts; the financial viability of the distributors of our products; consumer demand; worldwide economic and political conditions; fluctuations in our costs to manufacture our products; our reliance on third parties to manufacture, test, assemble and ship our products; our ability to retain and attract key personnel; our ability to compete with our competitors; and our ability to protect our intellectual property rights and not infringe the intellectual property rights of others. Other factors that may cause our actual results to differ from those set forth in the forward-looking statements contained in this press release and that may affect our prospects in general are described in our filings with the Securities and Exchange Commission, including our most recently filed Forms F-1, 20-F and 6-Ks. Other unknown or unpredictable factors also could have material adverse effects on Actions Semiconductor's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as required by law, Actions Semiconductor undertakes no obligation and does not intend to update or revise any forward-looking statement to reflect subsequent events or changed assumptions or circumstances.

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Company Overview

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Actions Semiconductor

HQ: Zhuhai CHN

Founded Zhuhai, China 2001 | IPO: NASDAQ 2005

SoC design for portable multimedia devices

HQ: Zhuhai | Offices: Shanghai, Shenzhen, Hong Kong, Taipei.

Employees: 600+

Main Products:

- Tablet SoC

- Portable video SoC

- Portable audio SoC

A China Semiconductor Industry Association Top 10 IC Design Enterprise for six consecutive years

Leading products received China Innovative Product and Technology Awards for five consecutive years

Attach great importance to protecting IP, holds 258 patents

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Symbol: ACTS Exchange:  NASDAQ (IPO 2005) Market Cap (12/31/2013): $205 million ADS outstanding1: 69 million Revenue 2: $69.4 million Total cash3: $224.6 million Cash per ADS1,3: $3.27

Equity Snapshot

1 As of December 31, 2013; each ADS represents 6 common shares2 The year ended December 31, 20133 As of December 31, 2013; Includes cash & cash equivalents, time deposits and marketable/trading securities

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Investment Highlights

传统便携式多媒体芯片的市场领导者

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Significant market growth potential for whitebox tablet chipsets ~90M shipped globally in 2013; forecast to grow >20% per year to 2016

ACTS R&D drives volumes, market leadership potential Launched China’s 1st quad-core chipset in 2012; dual-core, low-end quad-core and high-

end quad-core owl series chipsets in 2013 ACTS tablet chipset shipments: 100K in Dec 2012 vs. >1M in Dec 2013 (~10% market

share1), expect to continuously increase market share Ongoing R&D for high performance chipset supporting H.265 4K2K video, utilizing 64bit

CPU and operating system in 2014

A market leader in portable multimedia SoC >50% market shares, non-Apple portable audio and video products Focus: fast growing wireless boombox market. 2014 global shipments forecast:

>10M/month ACTS bluetooth boombox reached volume shipments in the fourth quarter of 2013,

forecast rapid 2014 market share increase

Solid Financial Position $224.6M net cash, will support sustainable development Target revenue growth of at least 20%-25% for 2014 Share repurchase program to enhance long-term shareholder value1Market share based on company estimates of overall whitebox market shipments

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Investment Highlights

传统便携式多媒体芯片的市场领导者

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20 years of low power SoC development experience Leading mixed signal design capabilities and comprehensive analog circuit

intellectual property asset Leader in low power design methodology with 20 years of experience Competitive PMU technology and high integration SoC design 12 years of multimedia R&D, from super-low power full spec audio codec to the most

advanced H.265 4K2K video codec

Solid foundation to serve Tier 1 international brands Disciplined operations as a US publicly listed company

Prudent financial, quality control and process management systems. In-house IC testing capabilities, including CP and FT

Dedicated marketing and technical support team to serve overseas OEM and ODM

Qualified supplier to many Tier 1 international brands

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David Lee, Chairman and COO 15+ years of corporate finance and investment management experience ACTS’ CFO from 2005‐2007 Former CEO of ABN AMRO Asset Management (China) BSc degree in Biometrics from National Taiwan University MBA from Duke University

Nigel Liu, Chief Financial Officer 14+ years of accounting/finance experienceFormer Senior Manager at PricewaterhouseCoopersCPA, Qualified Internal Auditor & Certified Internal Auditor (Taiwan)BA in accounting from Fu Jin Catholic University in Taiwan MBA from National Taiwan University

Experienced Management Team

Dr. Zhenyu Zhou, Chief Executive Officer  17+ years of senior management experience Expertise in establishing R&D teams, setting strategy and product road maps, and 

driving revenue growth through design win activity Founder of Mavrix (acquired by ACTS in 2010) Master’s and PhD from the University of Southern California

Shawn Li,  Chief Technology OfficerServed as Chief Technology Officer since ACTS’ establishment in 2001Former director of research and development at Zhuhai Arestek Electronic Co., Ltd. MSc degree in electrical engineering from Beijing Institute of Technology

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Strong Financials and Investments

$224.6 million in net cash; 55% of which is invested in time deposits in banks and 45% of which is invested in funds

Low risk asset allocation: 90%+ in RMB cash and equivalents

In‐house VC, coupled with external Private Equity partners, to identify synergetic targets based in China and Taiwan

Continued investment in advanced technology and R&D teams Reorganize R&D to focus on advanced tablet solutions and wireless

connectivity enabled multimedia products Better utilize talent and intellectual property Improve efficiency

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Healthy Financial Position

M&A Activities

Research & Development

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Solid Balance Sheet

(US$ Million) 12/31/12 12/31/13

Total assets 322.2 335.9

Shareholders’ equity 278.8 282.6

Net cash1 223.3 224.6

Net assets per ADS2 $4.71 $4.89Net cash per ADS2 $3.26 $3.27

1 Includes cash & cash equivalents, time deposits and marketable/trading securities2 Based on 68.69 mil wtd avg ADS outstanding as of 12/31/13, and 68.37 mil wtd avg ADS outstanding as of 12/31/2012

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Income Statement

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1 Q1’14 guidance reflects the return to a more traditional sales pattern vs Q1’ 13 when the Company had a steep ramp in shipments of its new tablet SoC solutions.

2 Q4’13 gross margin was impacted by aggressive pricing strategy to build share in tablet market and a year end inventory write-off.

(US$ Million) 1Q'14e 1Q’13 2Q’13 3Q’13 4Q’13

Revenue1 $12~$13 $16.4  $18.5  $16.9  $17.6 

Gross profit $5.9  $6.0  $5.6  $3.9 

Gross margin2 ~30% 36.2% 32.2% 33.2% 22.2%

Net Income (loss) $0.4  $0.7  ‐$0.15 ‐$0.83Earnings (loss) per ADS $0.01  $0.01  ‐$0.002  ‐$0.012 

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Share Repurchase Program

As of December 31, 2013, $50.4 million invested to repurchase 22.1 million ADSs

Open to privately negotiated transactions to accelerate pace of buyback program

Board of Directors approved a total of $30 million ADSs buyback

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Significant Progress

Top Priority for the Company

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Product Introduction

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Application Portfolio of Actions’SoCs

Portable Audio & Video Multimedia Devices 

Cloud Connected Devices

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Android Tablet

OTT Box

WiFi Speaker

Bluetooth Speakers

MP3

Boom Box 

PMPiPUSH

(Miracast dongle)E Book

Gaming

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Vital Role in Consumer Electronics Ecosystem

Actions

Consumer Electronics Ecosystem

End users

SoC Platforms

Revenues

Advanced devices & services

Revenues

• Multimedia and Mobile Internet SoC solutions for portable consumer electronics• Production ready, turnkey solutions and support• Creating better time to market, better quality and better BOM Cost

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Strong Position in Key Markets

(M pcs)− Provider of the first quad-core

tablet SoC and tablet chipsets with the most competitive price-to-performance ratio in the white-box tablet market

− Leading position(>50%) in portable audio and video multimedia segments

Strength

− Great opportunity and continued growth in sub $100 Tablets

− Growth from Bluetooth boom box and other wireless connectivity enabled multimedia products

− Rapid growth in overseas markets

Potential

Potential Market Shipments for Actions by Segment

Source: Company estimates

MP3 Player42

Automotive/Boombox

85PMP

related35

Android Tablet110

FY 2014e

• White-box tablet market & non-apple portable multimedia market

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Expanding Total Available Market

($M USD)TAM for Actions’ Products by Segment

Source: Company estimates

0

100

200

300

400

500

600

700

FY 2011 FY 2012 FY 2013e FY 2014e

MP3 Player Automotive/BoomboxPMP related Android Tablet

$305

$550$600 $620

• White-box tablet market and non-apple portable multimedia market

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Fast Growing Tablet Market

Source: IHS iSuppli January 2014

141

488

0

100

200

300

400

500

600

2012 2013 2014e 2015e 2016e 2017e

Worldwide Tablet Sales(millions of units)

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Fast Growing Tablet Market

Source: Digitimes December 2013

234

289

0

50

100

150

200

250

300

350

2011 2012 2013 2014e

WhiteboxTop Tier Int'lApple

Worldwide Tablet Sales(millions of units)

• Approx. 20% annual growth

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• High performance, quad‐core SoC• High performance, 64bit CPU and operating system

High end

• Primarily dual‐core solutions for 2013

• Increasing adoption of quad‐core SoC for 2014

Mid end

• Predominately Single‐core for 2013

• Rapid migration to dual‐core SoC for 2014

Low end

Shipments

White-box Tablet Market Segmentation• Complete product family of OWL series chipsets

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Actions' Competitive Advantages

Value Proposition

• Production-ready turnkey solutions and support accelerate introduction of new products to the mass market

• Highly competitive total BOM costs with compelling price-to-performance ratio

Technology

• Internally developed IP portfolio• Advanced process technology roadmap (28 nm)• Leading IC design in low power, high performance, highly

integrated solutions

Proven Partner

• Market leader in portable multimedia products• System-level knowledge of customers’ manufacturing process• Quickly adapt to various customer requirements and evolving

industry standards

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20142012

1.3GHz Quad core CPU

High performance Multi‐core GPU

Low power consumption

Highly integration for best performance/cost ratio

ATM7029

2013

ATM7039

1.6GHz Quad Core CPU

The Imagination PowerVR SGX544 GPU

OPEN GL ES 3.0/RederScript Supporting

HEVC Supporting 

ATM705x

2GHz Quad core CPU 

Most Advanced GPU 

Open GL ES 3.0/Render Script/HEVC  Supporting

Lower Power Consumption

Tablet SoC Product Roadmap (OWL Family)

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Entry 

Mainstream

Performance

1.3GHz Dual core CPU

The Imagination PowerVR SGX540  GPU

Low power consumption

Highly integration for best performance/cost ratio

ATM7021

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2012 2014

Complete Value Line Functional Portable Audio and Video SOC platform 

-MP3 and Boombox for various display support

- PMP for QVGA, SD and HD resolution

- Portable Gaming  

2013

Portable Multimedia SoC Platform Roadmap• Market leader in portable multimedia SoC, dozens of hot selling SoC

Audio and Video SOC platform w/ Wireless Connectivity (Smart Accessory)

-MP3  and Boombox  with Bluetooth connectivity

-Wifi based internet audio and video system

- Bluetooth soundbar

- SmartTV Box and dongle

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Smart Accessory

Featured Product

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Important Upstream and Downstream Partners

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IC Companies - Central Position in Value Chain

Manufacturers

Foundry UMC TSMC SMIC

Assembly & Test

SPIL Fujitsu Tianshuihuatian

Customers

OEMs /Brands Global &

Regional OEMs

300+ China, Global & Regional brands and traders

IDHs / VARs/ Manufacturers

Dozens of China-based designers

10+ China focused resellers

>500s Actions-focused application developers

100s of China-based manufacturers

IP Providers

ARM IMG

MIPS Real

DTS HDMI

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Strong Relationships with Top TMT Companies

•Respected IP rights•The most licensing

Others

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Thank You

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