Solid State System (3S) Y2016 Forth Quarter Investor Conference 鑫創科技：3259 Y2016 Forth Quarter Investor Conference Mar. 9, 2017

Agenda Q4 FY16 Financial Results Q1 FY17 Guidance Q&A

Safe Harbor Statement

Q4 FY16 Income Statement 4Q16 3Q16 4Q15 QoQ(%) YoY(%) Sales 168,591 NT$K 4Q16 3Q16 4Q15 QoQ(%) YoY(%) Sales 168,591 166,998 116,560 1 45 Gross Profit 66,215 51,521 35,861 29 85 Selling Expenses 15,479 17,343 14,620 G&A Expenses 7,546 8,462 9,804 R&D Expenses 44,920 47,585 51,502 Operating Income (1,730) (21,869) (40,065) 92 96 Non-operating Income& Exp. 1,781 439 1,301 Income Before Tax 51 (21,430) (38,764) Net Income 6,297 (33,871) 129 119 EPS(NT$) 0.07 (0.27) (0.42) Weighted Avg. Outstanding Shares 80,860

FY16 Income Statement 2016 2015 YoY(%) Sales 643,069 482,374 33 NT$K 2016 2015 YoY(%) Sales 643,069 482,374 33 Gross Profit 213,784 147,304 45 Selling Expenses 67,610 61,129 G&A Expenses 33,263 38,032 R&D Expenses 193,313 223,132 Operating Income (80,402) (174,989) 54 Non-operating Income& Exp. 4,099 6,034 Income Before Tax (76,303) (168,955) Net Income (70,057) (164,062) 57 EPS(NT$) (0.87) (2.17) Weighted Avg. Outstanding Shares 80,860 75,709

Q4 FY16 Balance Sheet Summary NT$K 4Q16 3Q16 4Q15 Current Assets 463,045 487,797 561,876 Cash and Cash Equivalents 69,684 103,205 184,340 Accounts Receivable 72,462 64,079 50,964 Inventory 124,440 124,223 129,665 Other Financial Assets – Current 188,754 187,339 187,550 Other Current Assets 7,705 8,951 9,357 Non-current Assets 262,871 255,364 271,955 Total Assets 725,916 743,161 833,831 Total Liabilities 59,299 83,913 98,229 Total Stockholders' Equity 666,617 659,248 735,602

Q4 FY16 Cash Flow Summary 4Q16 3Q16 4Q15 Operating Cash Flow (6,550) NT$K 4Q16 3Q16 4Q15 Operating Cash Flow (6,550) (15,934) (43,482) Investment Cash Flow (8,971) (5,678) 7,804 Financing Cash Flow (18,000) 16,950 - Net increase in Cash & Equivalents (33,521) (4,662) (35,678) Cash & Equivalents at the Beginning of the Period 103,205 107,867 220,018 Cash & Equivalents at the End of the Period 69,684(Note) 184,340 Note：Time deposits with original maturities of more than three months amounting to $170 Million as of December 31,2016.

Q1 FY17 Guidance Based on our current business outlook, the Company expects: Consolidated Q1 revenue will be Lower than Q4 Consolidated Q1 gross profit margin will be Lower than Q4 Consolidated Q1 operating profit will be Lower than Q4

Solid State System：3259 Contact Us (Investors)：03-552-6533 www.3system.com.tw Solid State System：3259