Investor Presentation
December 2009
Safe Harbor Statement
Statements 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. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause Actions Semiconductor's actual results to differ materially from our current expectations. Factors that could cause Actions Semiconductor's results to differ materially from those set forth in these forward-looking statements include 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. Actions Semiconductor undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.
Actions – Investment Highlights
� Market Leader in PMP SoC– Solid business model during economic crisis– Continue to gain market share– Poised for next growth by leveraging CE core competencies, new
applications, and M&A– Invested in R&D to build out a world-class mixed signal team
� High Potential in International Markets, Additional A pplications – Recession-proof applications in gifts and automotive for unit growth– Rapid penetration in emerging Markets– Promising partnerships in the US (Digital Blue/Disney, Coby)
� Strong Financials− Positive cash flow with over $254M net cash ($3.30/ADS)− Prudent cash management − Aggressive share repurchase program
Key Drivers for Future PMP Growth
Diversified digital content drive
demand for portable devices
IndiaChinaBrazil Russia
Large untappedpotential in Emerging
Markets
Proliferation of gifts, automotive, GPS, & PMP applications
helping drive unit sales
Wireless
Gaming Gift
GPS
Non-Apple Market Strength and Potential
0
20
40
60
80
100
120
140
160
2007 2008 2009(F)
Gift&Automotive
Mono Display
Color Display
MP4 Segment
137145
(units mm)•60% market share in color display segments
•40% market share in mono display segments
•Complete and competitive product portfolio
Strength
•Wide applications in gift, automotive & MP4 drive unit increase
•Rapid growth in emerging Markets (BRIC)
Potential
Non-Apple Market Shipments by Segment
142
Source: Company estimates
≥ 3.5’’
2.4~ 3.5’’
Actions-Centric Position in Value Chain
Foundry� Hejian
Technology
Assembly & Test
� SPIL
SoftwareDesignHouses
� Dozens of China-Based designers
Manufacturers
� 100’s of China-based players(ShenZhen Inc.)
Customers
� Global & Regional OEMs– Newman– Onda– Unibit– Aigo– Disney– iRiver– Coby– LG
� Importers
VARs
� 30+ China focus resellers- GMI- WPI- Uppo
� 900+ Actions-focused application developers
Upstream Partnerships ����
Cost AdvantageDownstream Development Ecosystem ����
Better Time to Market and Pricing Power
Complete MP3 Portfolio & Roadmap
Music Only
Mono Display
Color Display
2009 2010 2011
ATJ2031
ATJ2037
ATJ2035
Series 5
Series
12
Series 11
Series 03
AK2025C
AK2027C
ATJ2117C
Series 5
Plus
Series
12 Plus
ATJ2003
ATJ2009
ATJ2005
AK2028
ATS2502Automotive
ATJ 211x
cost-down
version
HD (1080P)
HD (720P)
D1 Resolution
2009 2010 2011
Series
28
Series 13
ATJ213x
0.162
cost-down
version
ATJ2237T
ATJ2236T
ATJ2235T
Series
27
Series
25 Plus
ATJ 2259A
ATJ2253A
Series 25
Series
23
Plus
QVGA
Series 23
Series
27
Plus
Series
26
Expanding MP4 Advanced Platform
Recent Developments & Strong Financials
� Healthy Financial Position– Over $254 million in net cash, with positive cash flow since IPO– Low risk asset allocation: 80% cash in RMB, highly liquidated, principle-guaranteed
by China’s state-owed financial institutes
� Worldwide Market Development– Partnership with major local firms for German and Taiwanese markets– Series 13 featured in Coby’s PMP products for US mainstream demand– Partnership with Disney’s Digital Blue for US gift market
� Continued Cost Down by Technol ogy Migration– Recently introduced new Series 2, 3, and Automotive products– Rolled out cost-down versions of low-end and advanced product lines in Q3– Further cost down from 0.16um to 0.15um & 0.11um in 2009
� M&A Activities– Focus on synergy creation to closely align with our core in CE
Share Repurchase Program
� Major Progress– As of September 30, 2009, 9.8 million ADSs were repurchased
– Board authorized up to 20 million ADSs through December 31, 2010
� Top Priority for the Company– Create long-term shareholder value
– Open to all possible approaches to optimize long term buyback costs
Solid Balance Sheet
(US$ Million) 30 Sep’09 30 Jun’09
Total assets 296.2 301.1
Shareholders’ equity 282.5 284.2
Net cash * 254.8 259.4
Net cash per share * $3.30 $3.37
* Includes cash & cash equivalents, time deposits, and marketable/trading securities
Income Statement
(US$ Million)3Q’09 2Q’09 1Q’09
Revenue $13.4 $10.5 $12.2
Gross profit $4.1 $2.9 $4.1
Gross margin 30.8% 27.7% 33.6%
Net profit $(0.6) $(0.8) $(1.5)
Net margin (4.5)% (7.4)% (12.2)%
Earnings per ADS $(0.01) $(0.01) $(0.02)
Strategic Initiatives for 2009
� Expediting Share Repurchase
� Managing Cash Prudently
� Optimizing Market Position
� Reducing Costs Aggressively
� Enhancing R&D Capability
� Ramping New Products
� Leveraging Strategic Investments
Thank You