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. 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 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 Proliferation of gifts, GPS Wireless automotive, GPS, & PMP applications helping drive unit sales Gaming Gift Large untapped potential in Emerging Markets India Brazil China Russia Diversified digital content drive demand for portable devices

Non-Apple Market Strength and Potential Strength Non-Apple Market Shipments by Segment •60% market share in color 160 (units mm) display segments 145 142 137 140 ≥ 3.5’’ •40% market share in mono MP4 display segments Segment 120 2.4~ 3.5’’ •Complete and competitive 100 product portfolio Color Display 80 60 Mono Potential Display 40 •Wide applications in gift, automotive & MP4 drive 20 unit increase Gift& Automotive 0 •Rapid growth in emerging Markets (BRIC) 2007 2008 2009(F) Source: Company estimates

Actions-Centric Position in Value Chain Upstream Partnerships � � � � Downstream Development Ecosystem � � � � Cost Advantage Better Time to Market and Pricing Power Foundry Software VARs Manufacturers Customers � Hejian Design � Global & Technology � 30+ China � 100’s of Houses Regional focus China-based OEMs resellers players � Dozens of – Newman - GMI Assembly & (ShenZhen China-Based – Onda - WPI Inc.) Test designers – Unibit - Uppo � SPIL – Aigo � 900+ – Disney Actions- focused – iRiver application – Coby developers – LG Importers �

Complete MP3 Portfolio & Roadmap ������� ������� ������ ������� ������� Automotive ��������� ������� Music Only �������� �������� ���� ������� ������� �������� Mono Display ������� ������� �� ������� ��������� �������� ������� Color ���������� ������� ������� Display 2011 2010 2009

Expanding MP4 Advanced Platform ������� HD (1080P) �� ������� �� ���� HD (720P) ������� ������� �� �! ��������� D1 ��������� �������� Resolution ������� ������� �� ������� ���� ��������� ��������� ������� �������� QVGA � �!�� ������!� ���������� �������� ������� 2011 2010 2009

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

Income Statement 3Q’09 2Q’09 1Q’09 (US$ Million) 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