Faraday — Interim / Quarterly Report 2022

Mar 30, 2022

Confidential

Agenda

• 1Q22 Financial Results

• Business Update

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Confidential

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1Q22 Financial Results

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Statements of Comprehensive Income

Unit: NT$ Million	1Q22	4Q21	1Q21	QoQ %	YoY %
Revenues	3,207	2,645	1,535	21.3%	108.9%
IP	292	267	268	9.4%	8.9%
NRE	412	367	343	12.1%	19.9%
MP	2,503	2,011	924	24.5%	171.0%
Gross Profit	1,593	1,358	749	17.3%	112.8%
Operating Expenses	(857)	(765)	(610)	12.1%	40.6%
Operating Income	736	593	139	24.0%	430.1%
Non-operating Items	111	22	70	391.6%	59.6%
Income Tax	(134)	(86)	(29)	54.8%	355.9%
Net Income	713	529	179	34.7%	298.2%
Net Income Attributable to the Parent	670	479	170	39.9%	294.7%
EPS (NTD)	2.70	1.93	0.68
Gross Margin	49.7%	51.4%	48.8%
Operating Margin	22.9%	22.4%	9.0%
Net Income Margin	22.2%	20.0%	11.7%

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Confidential

Condensed Balance Sheet

Unit: NT$ Million	2022/03/31	2021/12/31
Cash and Cash Equivalents	5,748	4,763
Notes and Accounts Receivable	1,239	939
Inventories	1,705	1,321
Total Assets	13,565	12,036
Notes and Accounts Payable	1,783	1,372
Current Liabilities	4,660	3,506
Total Liabilities	5,080	3,881
Stockholders’ Equity	8,485	8,155
A/R Turnover Days	31	37
Inventory Turnover Days	86	83

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Business Update

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Sales Breakdown by Billing Method

0 500 1,000 1,500 2,000 2,500 3,000 3,500 NT$ M
	1Q21 1Q21	2Q21 2Q21	3Q21 3Q21	4Q21 4Q21	1Q22 1Q22
IP	268	261	266	267	292
NRE	343	393	306	367	412
MP	924	1,034	1,646	2,011	2,503
Total	1,535	1,688	2,218	2,645	3,207

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Confidential

Sales Breakdown by Billing Method

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100%
12% 10% 9%
17% 16%
90%
13%
14%
80% 14%
22% 23%
70%
60%
50%
40%
74% 76% 78%
30% 61% 61%
20%
10%
0%
1Q21 2Q21 3Q21 4Q21 1Q22
MP NRE IP
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Confidential

NRE/MP Breakdown by Application

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NRE MP
100% 100%
6%
9% 11%
15%
90% 19% 90% 28% 24% 25% 20% 17%
80% 23% 80%
26% 15%
40%
70% 23% 70%
60% 12% 14% 60% 25% 27% 31% 40% 40%
16%
50% 50%
24% 13%
40% 40%
29% 33%
30% 30%
56% 56% 33% 33%
47% 34%
20% 41% 20%
34%
10% 10% 18% 16%
11% 10%
6%
0% 0%
1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22
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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Confidential

NRE/MP Breakdown by Technology

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MP
NRE
100% 5% 3% 1% 1% 100% 3% 3% 1% 2% 2%
6%
2% 6% 10%
14% 90%
90%
16% 10% 24% 26% 30% 26% 25%
80% 14% 8% 80%
26%
70% 11% 70%
29%
19%
60%
60%
50% 50% 40% 39% 41% 47% 41%
40% 40%
77%
65% 66%
30% 30%
57%
54%
20% 20% 25%
30% 30%
25% 21%
10% 10%
7%
0% 0% 3% 2% 3% 4%
1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22
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<=28nm 40nm 55nm ~ 90nm 0.11um ~ 0.18um >=0.25um

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

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Confidential

• 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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Confidential

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

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