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Investor Presentation December 2009
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Page 1: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

Investor Presentation

December 2009

Page 2: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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.

Page 3: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 4: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 5: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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’’

Page 6: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 7: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 8: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 9: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 10: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 11: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 12: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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)

Page 13: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

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

Page 14: ACTS Dec 09 Presentation - actions-semi.investorroom.comactions-semi.investorroom.com/file.php/72/ACTS+Dec... · Investor Presentation December 2009. Safe Harbor Statement Statements

Thank You


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