MediaTek to Acquire Richtekcdn-cw.mediatek.com/IR_Reports/Download Presentation/4_Richtek...

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September 2015 MediaTek to Acquire Richtek

Transcript of MediaTek to Acquire Richtekcdn-cw.mediatek.com/IR_Reports/Download Presentation/4_Richtek...

Page 1: MediaTek to Acquire Richtekcdn-cw.mediatek.com/IR_Reports/Download Presentation/4_Richtek TO_deal... · Transaction /Structure • Transaction structure : Tender offer • MediaTek

September 2015

MediaTek to Acquire Richtek

Page 2: MediaTek to Acquire Richtekcdn-cw.mediatek.com/IR_Reports/Download Presentation/4_Richtek TO_deal... · Transaction /Structure • Transaction structure : Tender offer • MediaTek

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

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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

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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

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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

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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

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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%

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