3S3Systemystem

Solid State System (3S)

2014 First Quarter Investor Conference

May 15, 2014

鑫創科技： 3259

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Agenda

Welcome

1QFY14 Financial Results

2QFY14 Outlook

Q&A

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Safe Harbor Statement

Except for historical information contained herein, the matters set forth in

this presentation are forward looking statements that are subject to risks

and uncertainties that could cause actual results to differ materially,

including the impact of competitive products and pricing, timely design

acceptance by our customers, timely introduction of new technologies,

ability to ramp new products into volume, industry wide shifts in supply

and demand for semiconductor products, industry overcapacity, availability

of manufacturing capacity, financial stability in end markets, and other

risks.

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1QFY14 Consolidated Income StatementNT$K

1Q14 4Q13 1Q13 QoQ(%) YoY(%)

Sales 170,193 191,835 117,086 (11) 45

Gross Profit 49,970 76,469 24,639 (35) 103

Selling Expenses 15,897 12,959 14,763 23 8

G&A Expenses 7,350 7,514 7,880 (2) (7)

R&D Expenses 48,196 48,282 48,687 0 (1)

Operating Income (21,473) 7,714 (46,691) (378) -

Non-operating Income& Exp. 2,740 2,676 (2,148)

Income Before Tax (18,733) 10,390 (48,839)

Net Income (18,733) 14,831 (48,839)

EPS(NT$) (0.27) 0.26 (0.78)

Weighted Avg. Outstanding Shares 70,400 63,502 62,549

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Balance Sheet SummaryNT$K

20140331

Current Assets 599,750

Cash and Cash Equivalents 280,846

Accounts Receivable 91,843

Inventory 50,077

Other Financial Assets – Current 166,749

Other Current Assets 10,235

Non-current Assets 194,826

Total AssetsTotal Assets 794,576 794,576

Total LiabilitiesTotal Liabilities 107,399 107,399

Total Stockholders' EquityTotal Stockholders' Equity 687,177 687,177

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Cash Flow Summary

NT$K

1Q14

Operating Cash Flow 9,272

Investment Cash Flow (23,689)

Financing Cash Flow 4,231

Net increase in Cash & Equivalents (10,186)

Cash & Equivalents at Year Beginning 291,032

Cash & Equivalents at Year End 280,846

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MEMS Microphone Market Trend

Y2013 Y2019 CAGRRevenue (USD) 785 Millions 1.65 Billions 13%Quantity (each) 2.4 Billions 6.6 Billions 18%

Source: Yole development

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MEMS Microphone Market Trend

Source: Yole development

Applications:

Cellphone/Smartphone

Laptop/Notebook

Earphone Headset

Wearable/IoT

Smart TV

Medical (Hearing Aid)

Automotive

Consumer Electronics

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2QFY14 Guidance

Based on our current business outlook, the Company expects:

Consolidated Q2 revenue could be lower than Q1

Consolidated Q2 gross profit margin will be similar to Q1

Consolidated operating profit margin still to be minus

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投資人專線： 03-552-6533

www.3system.com.tw

鑫創科技： 3259