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September 2015
MediaTek to Acquire Richtek
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in
this presentation are forward looking statements that are subject to risks
and uncertainties that could cause actual results to differ materially,
including the impact of competitive products and pricing, timely design
acceptance by our customers, timely introduction of new technologies,
ability to ramp new products into volume, industry wide shifts in supply and
demand for semiconductor products, industry overcapacity, availability of
manufacturing capacity, financial stability in end markets, and other risks.
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Strategic Rationale
3
Power Management IC (PMIC) related products represent one of the largest addressable market opportunities on MediaTek platforms • Complementary IP portfolios create a leadership position in PMIC segment • Short-term: Maximize MediaTek platform synergy to address PMIC SAM* of ~US$6 billion • Mid-term: Expand MediaTek’s presence into the extended PMIC SAM of ~US$11 billion
Immediately accretive to EPS
Broaden MediaTek SAM in the analog IC market in long run by growing beyond PMIC segment
Strengthen MediaTek overall capabilities for future IoT business model • IoT business model: long-tail, diversified and fragmented markets
*SAM= serviceable available market
Transaction /Structure
• Transaction structure : Tender offer
• MediaTek to tender 35% ~ 51% of Richtek’s outstanding shares
• Upon the completion of tender offer, MediaTek plans to further acquire 100% of Richtek’s outstanding shares
Term
• NT$195 in cash per Richtek share
Equity Value • NT$29 billion
Expected Closing
Expected in 2Q 2016, subject to
• Shareholder meetings’ approvals
• Regulatory approval if applicable
• Other customary closing conditions
Transaction Overview
4
World’s Leading Analog IC Design Company with Focus on Power Management Solutions
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Headquarter Hsinchu, Taiwan
Operation sites Taiwan, US, Netherlands, Japan, Korea, China, etc.
Number of Employees 950 (July 2015)
- 2014 Revenue - 2014 Net profit
NT$11.9 billion NT$1.5 billion
Product applications Product categories
Main PMIC
Sub PMIC
Multi-phase DC/DC Converter
General-purpose Regulator
Embedded Regulator (Advanced process node)
AC/DC
Type-C/PD2.0
Fast Charge Protocol
Audio Codec
Smart Amplifier
Other Mixed-signal
Complementary IP Portfolio Create Leadership Position in PMIC Segment
6 Strong market presence Less market presence
2015 H1 (in NT$ million)
Pro-Forma
Revenue 94,580 6,292 100,872
Gross Profit 44,095 2,302 46,397
Gross Margin 46.6% 36.6% 46.0%
Operating Expenses 29,557 1,431 30,988
Operating Income 14,538 871 15,409
Net Income 13,576 742 14,318
EPS 8.68 5.00 9.16
Immediately Accretive to EPS
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EPS accretion of 5%