Faraday — Interim / Quarterly Report 2021

Dec 7, 2021

Confidential

Agenda

• 3Q21 Financial Results

• Business Update

Confidential

2

==> picture [184 x 6] intentionally omitted <==

3Q21 Financial Results

==> picture [625 x 9] intentionally omitted <==

3

Statements of Comprehensive Income

Unit: NT$ Million	3Q21	2Q21	3Q20	QoQ %	YoY %
Revenues	2,218	1,688	1,493	31.4%	48.5%
IP	266	261	207	1.8%	28.6%
NRE	306	393	240	-22.2%	27.3%
MP	1,646	1,034	1,046	59.2%	57.3%
Gross Profit	1,144	838	701	36.5%	63.2%
Operating Expenses	(695)	(618)	(625)	12.5%	11.1%
Operating Income	449	221	76	103.7%	493.3%
Non-operating Items	4	4	5	-11.1%	-21.2%
Income Tax	(64)	(32)	(21)	101.7%	213.4%
Net Income	389	193	60	101.6%	548.5%
Net Income Attributable to the Parent	327	181	62	81.0%	425.5%
EPS (NTD)	1.31	0.73	0.25
Gross Margin	51.6%	49.7%	47.0%
Operating Margin	20.3%	13.1%	5.1%
Net Income Margin	17.5%	11.4%	4.0%

Confidential

4

Condensed Balance Sheet

Unit: NT$ Million	2021/09/30	2021/06/30
Cash and Cash Equivalents	4,279	3,793
Notes and Accounts Receivable	787	785
Inventories	1,005	786
Total Assets	10,929	9,516
Notes and Accounts Payable	1,136	980
Current Liabilities	2,979	2,194
Total Liabilities	3,381	2,467
Stockholders’ Equity	7,548	7,048
A/R Turnover Days	37	42
Inventory Turnover Days	76	72

Confidential

5

==> picture [184 x 6] intentionally omitted <==

Business Update

==> picture [625 x 9] intentionally omitted <==

6

Sales Breakdown by Billing Method

0 500 1,000 1,500 2,000 2,500 NT$ M
	3Q20 3Q20	4Q20 4Q20	1Q21 1Q21	2Q21 2Q21	3Q21 3Q21
IP	207	214	268	261	266
NRE	240	253	343	393	306
MP	1,046	963	924	1,034	1,646
Total	1,493	1,430	1,535	1,688	2,218

Confidential

7

Sales Breakdown by Billing Method

==> picture [407 x 306] intentionally omitted <==

----- Start of picture text -----

100%
14% 15% 17% 16% 12%
90%
80% 14%
16%
18%
22% 23%
70%
60%
50%
40%
74%
70%
67%
30% 61% 61%
20%
10%
0%
3Q20 4Q20 1Q21 2Q21 3Q21
MP NRE IP
----- End of picture text -----

Confidential

8

NRE/MP Breakdown by Application

==> picture [630 x 273] intentionally omitted <==

----- Start of picture text -----

NRE MP
100% 100%
12% 11% 9% 11%
90% 19% 90% 21% 24%
28% 25%
80% 12% 23% 80% 35%
26%
70% 41% 23% 70% 19%
20%
60% 12% 60% 25% 27% 31%
16% 24%
50% 50% 22%
24%
40% 40%
30% 32% 30% 29% 33%
56% 56% 27% 33%
47%
20% 20% 38%
34%
10% 16% 10% 14% 18% 16% 11%
0% 0%
3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21
Communication Industrial AIoT MM / Con / PC Communication Industrial AIoT MM / Con / PC
----- End of picture text -----

• MM / Con / PC includes multimedia, consumer electronics and PC peripheral.

Confidential

9

NRE/MP Breakdown by Technology

==> picture [671 x 264] intentionally omitted <==

----- Start of picture text -----

MP
NRE
100% 1% 3% 100% 4% 2% 3% 3% 1%
5%
8% 10%
14% 2% 6% 90%
90%
16% 24% 26% 30%
7% 14% 80% 33%
80%
26%
70% 70% 53%
48% 19%
60%
60% 40%
40%
50% 50% 39% 41%
43%
40% 40%
77%
65%
30% 30%
57% 30%
20% 39% 43% 20% 30% 30%
25%
20%
10% 10%
12%
0% 0% 1% 2% 3% 2% 3%
3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21
----- End of picture text -----

==> picture [7 x 7] intentionally omitted <==

<=28nm 40nm 55nm ~ 90nm 0.11um ~ 0.18um

==> picture [7 x 7] intentionally omitted <==

<=28nm 40nm 55nm ~ 90nm 0.11um ~ 0.18um >=0.25um

Confidential

10

• Confidential information

The material is being disclosed to you pursuant to a non-disclosure agreement between you or your employer and Faraday. Information disclosed in this presentation may be used only as permitted under such an agreement.

• Legal notice

The information contained in this presentation is intended to provide a general guide as to which product is suited for a given requirement and shows suggested product applications. Specified functions and properties for products are only valid when handling instructions and other stated conditions and recommendations have been considered and followed. All descriptions, illustrations and dimensions in the information represent general particulars and do not form part of any contract. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance. All information is subject to change without prior notice. Faraday assumes no responsibility whatsoever for any errors or inaccuracies about the information.

Confidential

11

==> picture [184 x 6] intentionally omitted <==

www.faraday-tech.com ir@faraday-tech.com

==> picture [625 x 9] intentionally omitted <==

12