Faraday — Interim / Quarterly Report 2021

Aug 6, 2021

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Agenda

• 2Q21 Financial Results

• Business Update

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2Q21 Financial Results

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Statements of Comprehensive Income

Unit: NT$ Million	2Q21	1Q21	2Q20	QoQ %	YoY %
Revenues	1,688	1,535	1,306	10.0%	29.2%
IP	261	268	203	-2.4%	28.8%
NRE	393	343	287	14.4%	36.9%
MP	1,034	924	816	11.9%	26.6%
Gross Profit	838	749	611	12.0%	37.3%
Operating Expenses	(618)	(610)	(604)	1.3%	2.2%
Operating Income	221	139	7	59.0%	3292.7%
Non-operating Items	4	70	157	-93.9%	-97.3%
Income Tax	(32)	(29)	(27)	8.9%	18.6%
Net Income	193	179	137	7.8%	40.4%
Net Income Attributable to the Parent	181	170	143	6.4%	25.9%
EPS (NTD)	0.73	0.68	0.58
Gross Margin	49.7%	48.8%	46.8%
Operating Margin	13.1%	9.0%	0.5%
Net Income Margin	11.4%	11.7%	10.5%

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Condensed Balance Sheet

Unit: NT$ Million	2021/06/30	2021/03/31
Cash and Cash Equivalents	3,793	3,692
Notes and Accounts Receivable	785	552
Inventories	786	633
Total Assets	9,516	9,029
Notes and Accounts Payable	980	1,044
Current Liabilities	2,194	2,050
Total Liabilities	2,467	2,327
Stockholders’ Equity	7,048	6,702
A/R Turnover Days	42	37
Inventory Turnover Days	72	66

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Business Update

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Sales Breakdown by Billing Method

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 NT$ M
	2Q20 2Q20	3Q20 3Q20	4Q20 4Q20	1Q21 1Q21	2Q21 2Q21
IP	203	207	214	268	261
NRE	287	240	253	343	393
MP	816	1,046	963	924	1,034
Total	1,306	1,493	1,430	1,535	1,688

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Sales Breakdown by Billing Method

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100%
15% 14% 15% 17% 16%
90%
80%
16%
18%
22%
22% 23%
70%
60%
50%
40%
70%
67%
30% 63% 61% 61%
20%
10%
0%
2Q20 3Q20 4Q20 1Q21 2Q21
MP NRE IP
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NRE/MP Breakdown by Application

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NRE MP
100% 100%
90% 16% 12% 11% 19% 9% 90% 14% 21%
28% 24%
80% 12% 23% 80% 35%
17%
70% 41% 23% 70% 19%
20% 43%
60% 12% 60% 25% 27%
23%
24%
50% 50% 22%
24%
40% 40%
30% 32% 30% 29% 33%
56% 56% 32% 27%
20% 44% 20% 38%
34%
10% 16% 10% 11% 14% 18% 16%
0% 0%
2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21
Communication Industrial AIoT MM / Con / PC Communication Industrial AIoT MM / Con / PC
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• MM / Con / PC includes multimedia, consumer electronics and PC peripheral.

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NRE/MP Breakdown by Technology

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MP
NRE
100% 100% 3% 4% 2% 3% 3%
7% 1% 5% 3%
14% 8% 2% 6% 90%
90% 4%
16% 24% 26%
7% 80% 33%
80%
26%
70% 70% 59% 53%
48%
50%
60%
60% 40%
50% 50% 40% 39%
43%
40% 40%
77%
65%
30% 30%
30%
24%
20% 39% 39% 43% 20% 30% 30%
20%
10% 10%
11%
12%
0% 0% 3% 1% 2% 3% 2%
2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21
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<=28nm 40nm 55nm ~ 90nm 0.11um ~ 0.18um

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

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• 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.

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

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