Actions Technology Co., Ltd. Class A · SSE:688049

Actions Technology Co., Ltd. Class A — Actions Semiconductor — Investor Presentation (May 2006)

13 slides from Actions Technology Co., Ltd. Class A's investor presentation, May 2006

  1. Slide 1: Corporate Overview

    Nasdaq: ACTS Corporate Overview May 2006 SLIDE 1 | Confidential

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement •• The The Private Private Securities Securities Litigation Litigation Reform Reform Act Act of of 1995 1995 provides provides aa “safe “safe harbor” harbor” for for certain certain forward-looking forward-looking statements statements so so long long as as such such informatio

  3. Slide 3: Who We Are

    Who We Are… #1 Fabless IC Company in China z Founded in 2001; HQ in Zhuhai, China z 280 employees; 210 engineers with IC, system, and software capabilities z Strong financial performance Actions Dominates the “Non-Apple” MP3 System-on-Chip market z Actions shipped ~50M units in 2005 z In 2005 Non-Ap

  4. Slide 4: Actions Dominates Value Segment and Moving into Embedded and Mid-End Segments

    Actions Dominates Value Segment and Moving into Embedded and Mid-End Segments Actions’ Storage Est. 2006 Mkt GM ASP Trends Products > 2GB $200-250M 40-45% $12 Æ Series 13 High- End 512MB to $200-250M 50-55% $5 Æ Series 9 2GB Mid-End 128MB to $150-200M 50-55% $3 Æ Series 8 Value 256MB 2006 2005 < 128

  5. Slide 5: Conservative and Strong Track Record

    Conservative and Strong Track Record ($ in millions) 2003 2004 2005 20061Q (unaudited) Sales $ 5.6 $ 57.3 $ 149.6 $ 35.8 COGS 3.7 27.1 60.6 16.2 GM 1.9 30.2 89.0 19.6 Target Model Op Exp 1.8 3.7 18.2 4.5 • Gross Margin: 53-55% Op Profit 0.1 26.5 70.8 15.1 • Op Margin: 41-45% Net $ 0.1 $ 26.5 $ 73.6

  6. Slide 6: Amongst the Few With >40% Operating Margin

    Amongst the Few With >40% Operating Margin Top3535Semiconductor Top Fabless Co. byCompanies Op Margin 12.00 QCOM 10.00 LLTC Price/2006 Sales 8.00 MRVL MCHP ARMHY MXIM 6.00 ADI BRCM HITT CREE ALTR Mediatek 4.00 INTC ACTS TMTA 2.00 - 0% 10% 20% 30% 40% 50% 60% Operating Margin SLIDE 6 | Confidential S

  7. Slide 7: Our Value Chain Creates Entry Barriers

    Our Value Chain Creates Entry Barriers All located Unsurpassed capacity and price support within 100 miles Nimble & cost leader Foundry Assembly/Test Actions Semi VAR/Mfg OEM • Hejian • SPIL Best Price-to- • Power Radio • Aigo • Tomy •GAPT Functionality SoC • Jess Technology • Lenovo • Zarva with To

  8. Slide 8: Best in Class SoC Based on Flexible Architecture

    Best in Class SoC Based on Flexible Architecture •• DSP DSP ++ MCU MCU Architecture Architecture –– Easy Easy to to port port new new apps/software apps/software •• Optimized Optimized chip chip design design reduces reduces die die size size –– Efficient Efficient layout layout –– Optimized Optimiz

  9. Slide 9: Adding 150 Engineers in 2006

    Adding 150 Engineers in 2006 Beijing f Image and video technology f Adding 30 engineers Shenzhen Beijing f Application & software development, and FAE support f Adding 50 engineers Shanghai Zhuhai f Core design & current product line enhancement Shenzhen f Adding 70 engineers Zhuhai SLIDE 9 | Confid

  10. Slide 10: Technology Roadmap

    Technology Roadmap Multi-Media Game Embedded Java Video MPEG-1 MPEG-2 MPEG-4 H.264 USB 2.0 HS GPS / GPRS Image BMP JPEG GIF USB Host Wi-Fi / OTG Audio MP3 / ACC WMA w/ DRM VOBIS OGG WAV / APE WOW (SRS) Bluetooth USB Slave / IRDA 1.1 / 2.0 Voice PCM / ADPCM ACT G.72X Wireless WIRE CD Flash / Card Mob

  11. Slide 11: Proven Management Experience and Expertise

    Proven Management Experience and Expertise } BS from National Chiao-Tong University ( Taiwan ), MBA from Washington University, St. Louis Nan-Horng Yeh } Served as director and vice president of Realtek Semiconductor Corp. } Director and president of Globaltec Management Consulting CEO } 18+ years o

  12. Slide 12: Recent Developments

    Recent Developments Strong Performance in traditional low season of Q1 • Driven by significant decline of Flash price • Gaining market share compared to main competitors • Series 9 well received by market • Still maintaining 40%+ operating margin Introduced New Video Technology-AMV3.0 • Enable Conve

  13. Slide 13: Market Outlook and Actions' Growth Levers

    Market Outlook and Actions’ Growth Levers Market Outlook: • Most important driver: rapidly dropping NAND flash price • We see the overall unit volume continue to grow at 40% CAGR • ASP per SKU will decline at an annual rate of 20-25% Our Strategy: • Focus on market share gains and generating 40%+ op

Actions Semiconductor — Investor Presentation (May 2006) on 6ix