1. Solid State System (3S) 2018 Q4 Investor Conference 鑫創科技：3259
03/21/2019

2. Agenda Q4 FY18 Financial Results Q1 FY19 Guidance
MEMS Mic. Status– Launch 2 Chips Series
New Business

3. Safe Harbor Statement

4. Q4 FY18 Financial Results
Q1 FY19 Guidance
MEMS Mic. Status– Launch 2 Chips Series
New Business

5. Q4 FY18 Income Statement 4Q18 3Q18 4Q17 QoQ(%) YoY(%) Sales 220,138
NT$K
4Q18
3Q18
4Q17
QoQ(%)
YoY(%)
Sales
220,138
190,333
211,841 16 4
Gross Profit
78,239
70,957
83,422 10 -6
Selling Expenses
18,914
16,742
16,741
G&A Expenses
11,380
10,520
8,818
R&D Expenses
47,331
43,985
41,665
Operating Income
614
(290)
16,198
312
-96
Non-operating Income& Exp.
(313)
1,151
(1,136)
Income Before Tax
301
861
15,062
Net Income
1,317
16,131 53
-92
EPS(NT$)
0.02
0.01
0.20
Weighted Avg. Outstanding Shares
80,860

6. FY18 Income Statement 2018 2017 YoY(%) Sales 739,621 611,896 21
NT$K
2018
2017
YoY(%)
Sales
739,621
611,896 21
Gross Profit
255,238
202,885 26
Selling Expenses
66,061
62,085
G&A Expenses
43,588
36,093
R&D Expenses
173,905
180,383
Operating Income
(28,316)
(75,676) 63
Non-operating Income& Exp.
2,845
(3,821)
Income Before Tax
(25,471)
(79,497)
Net Income
(20,159)
(78,428) 74
EPS(NT$)
(0.25)
(0.97)
Weighted Avg. Outstanding Shares
80,860

7. Q4 FY18 Balance Sheet Summary
NT$K
4Q18
3Q18
4Q17
Current Assets
488,286
429,987
401,714
Cash and Cash Equivalents
33,899
25,691
48,790
Accounts Receivable
129,377
102,953
95,803
Inventory
246,412
208,168
132,018
Other Financial Assets – Current
66,025
81,891
115,777
Other Current Assets
12,573
11,284
9,326
Non-current Assets
264,517
268,468
254,650
Total Assets
752,803
698,455
656,364
Total Liabilities
184,181
130,716
67,149
Total Stockholders' Equity
568,622
567,739
589,215

8. Q4 FY18 Cash Flow Summary 4Q18 3Q18 4Q17 Operating Cash Flow (42,688)
NT$K
4Q18
3Q18
4Q17
Operating Cash Flow
(42,688)
(43,654)
2,081
Investment Cash Flow
10,482
18,442 64
Financing Cash Flow
40,414
30,586
(33,168)
Net increase in Cash & Equivalents
8,208
5,374
(31,023)
Cash & Equivalents at the Beginning of the Period
25,691
20,317
79,813
Cash & Equivalents at the End of the Period
33,899
48,790

9. Q4 FY18 Financial Results
Q1 FY19 Guidance
MEMS Mic. Status– Launch 2 Chips Series New Business

10. Q1 FY19 Guidance
Based on our current business outlook, the Company expects:
Consolidated Q1FY19 revenue will be lower than Q4FY18
Consolidated Q1FY19 gross profit margin will be lower than Q4FY18
Consolidated Q1FY19 operating profit will be lower than Q4FY18

11. Q4 FY18 Financial Results
Q1 FY19 Guidance
MEMS Mic. Status– Launch 2 Chips Series
New Business

12. Patented CMOS One Chip Design
3S In-house 1 Chip Mic. Tech.
CMOS MEMS Microphone Single Chip
(Sensor & ASIC in One Chip)
Patented CMOS One Chip Design
v.s.
Multi Chips Design
Pre-Amp
MEMS Sensor
Capacitors

13. Patented CMOS One Chip Design
3S In-house 2 Chip Mic. Tech.
Pure MEMS Microphone Sensor Chip
Analog MEMS Microphone Pre-Amp ASIC Chip
Digital MEMS Microphone Pre-Amp ASIC Chip
Patented CMOS One Chip Design
v.s.
Multi Chips Design
Pre-Amp
MEMS Sensor
Capacitors

14. 3S All Around Product Line–Single Chip Series
Key Features
Application
Major Player
CMOS Single Chip MEMS Microphone
Unique
Small, Sensitivity & Phase Matching
TWS, Slim Frame NB, ANC, Watch, Glasses, Array Mic. 3S

15. 3S All Around Product Line–2 Chips Series
Key Features
Target Application
Major Player
2 Chips MEMS Microphone
　Ultra
SNR 68dB/AOP 132dB,
Smart Phone
Smart Speaker
Feed Back Mic of ANC,
Automobile
Knowles, Infineon
SNR 70dB/AOP 124dB,
Performance
SNR 64dB/AOP 132dB, TV
Knowles, Goertek, AAC, STM
SNR 65dB/AOP 124dB,
Value
SNR 62dB/AOP 132dB,
Memsensing
SNR 62dB/AOP 124dB,
TWS
Memsensing, Zilltek, Goertek
SNR <60dB
Headset Mic.

16. 2 Chips MEMS Mic. Status Key Features Status MP Digital Performance
SNR 64dB/AOP 132dB, Bottom
Eng. sample
July
SNR 65dB/AOP 124dB, Bottom
Analog
　Ultra
SNR 68dB/AOP 132dB, Bottom
Sample
April
SNR 70dB/AOP 124dB, Bottom
Value
SNR 62dB/AOP 132dB, Bottom
SNR 62dB/AOP 124dB, Bottom
SNR 59dB/AOP 124dB, Top
SNR<60dB/AOP 124dB, Top & Bottom
Sep.

17. Q4 FY18 Financial Results
Q1 FY19 Guidance
MEMS Mic. Status– Launch 2 Chips Series
New Business

18. New Business Headset is likely to become entry platform to access AI.
The challenges of existing ANC headset makers are poor production yield and product noise reduction quality.
3S owns key ANC technology to high production yield and consistent yet excellent noise reduction quality. dB Hz dB Hz
V.S.
Industry ANC solution MP result
3S ANC solution MP result

19. Analog ANC Headset
3.5mm audio jack
Bluetooth

20. Digital ANC Headset
Bluetooth
MP: July

21. Contact Us (Investors)：03-552-6533
Solid State System：3259