Investor Presentation December 2009 Safe Harbor Statement - - PowerPoint PPT Presentation
Investor Presentation December 2009 Safe Harbor Statement - - PowerPoint PPT Presentation
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.
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
- f our products; consumer demand; worldwide economic and political conditions; fluctuations in our costs to manufacture
- ur 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 Applications
– 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
India China Brazil Russia
Large untapped potential in Emerging Markets Proliferation of gifts, automotive, GPS, & PMP applications helping drive unit sales
Wireless Gaming Gift GPS
Non-Apple Market Strength and Potential
20 40 60 80 100 120 140 160 2007 2008 2009(F)
Gift& Automotive Mono Display Color Display MP4 Segment 137 145 (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
Software Design Houses
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 Advantage
Downstream Development Ecosystem
- Better Time to Market and Pricing Power
Complete MP3 Portfolio & Roadmap
Music Only Mono Display Color Display 2009 2010 2011
- Automotive
HD (1080P) HD (720P) D1 Resolution 2009 2010 2011
- !
- !
- QVGA
- !
Expanding MP4 Advanced Platform
Recent Developments & Strong Financials
- Healthy Financial Position
– Over $254 million in net cash, with positive cash flow since IPO – Low risk asset allocation: 80% cash in RMB, highly liquidated, principle-guaranteed by China’s state-owed financial institutes
- Worldwide Market Development
– Partnership with major local firms for German and Taiwanese markets – Series 13 featured in Coby’s PMP products for US mainstream demand – Partnership with Disney’s Digital Blue for US gift market
- Continued Cost Down by Technology Migration
– Recently introduced new Series 2, 3, and Automotive products – Rolled out cost-down versions of low-end and advanced product lines in Q3 – Further cost down from 0.16um to 0.15um & 0.11um in 2009
- M&A Activities
– Focus on synergy creation to closely align with our core in CE
Share Repurchase Program
- Major Progress
– As of September 30, 2009, 9.8 million ADSs were repurchased – Board authorized up to 20 million ADSs through December 31, 2010
- Top Priority for the Company
– Create long-term shareholder value – Open to all possible approaches to optimize long term buyback costs
Solid Balance Sheet
(US$ 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