Faraday — Interim / Quarterly Report 2023

Nov 17, 2023

Confidential

Agenda

• 3Q23 Financial Results

• Business Update

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Confidential

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3Q23 Financial Results

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Statements of Comprehensive Income

Unit: NT$ Million	3Q23	2Q23	3Q22	QoQ %	YoY %
Revenues	2,962	2,917	3,244	1.6%	-8.7%
IP	330	343	380	-3.8%	-13.3%
NRE	321	489	420	-34.3%	-23.4%
MP	2,311	2,085	2,444	10.8%	-5.4%
Gross Profit	1,281	1,271	1,576	0.8%	-18.7%
Operating Expenses	(853)	(851)	(866)	0.3%	-1.5%
Operating Income	428	420	710	2.0%	-39.6%
Non-operating Items	24	95	49	-74.7%	-50.8%
Income Tax	(111)	(127)	(156)	-12.9%	-28.8%
Net Income	341	388	603	-11.9%	-43.4%
Net Income Attributable to the Parent	354	414	599	-14.5%	-40.9%
EPS (NTD)	1.42	1.66	2.41
Gross Margin	43.2%	43.6%	48.6%
Operating Margin	14.5%	14.4%	21.9%
Net Income Margin	11.5%	13.3%	18.6%

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Confidential

Condensed Balance Sheet

Unit: NT$ Million	2023/09/30	2023/06/30
Cash and Cash Equivalents	5,544	6,392
Notes and Accounts Receivable	1,521	1,315
Inventories	1,640	1,766
Total Assets	13,470	13,873
Notes and Accounts Payable	1,378	1,159
Current Liabilities	3,770	4,601
Total Liabilities	4,140	4,925
Stockholders’ Equity	9,330	8,948
A/R Turnover Days	43	39
Inventory Turnover Days	124	126

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Confidential

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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
	3Q22 3Q22	4Q22 4Q22	1Q23 1Q23	2Q23 2Q23	3Q23 3Q23
IP	380	352	382	343	330
NRE	420	447	617	489	321
MP	2,444	2,451	2,263	2,085	2,311
Total	3,244	3,250	3,262	2,917	2,962

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Confidential

Sales Breakdown by Billing Method

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100%
12% 11% 12% 12% 11%
90%
11%
13% 14%
80% 19% 17%
70%
60%
50%
40%
78%
75% 75%
69% 71%
30%
20%
10%
0%
3Q22 4Q22 1Q23 2Q23 3Q23
MP NRE IP
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Confidential

NRE/MP Breakdown by Application

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NRE MP
100% 100%
11% 13% 10% 11% 10% 12% 10% 7% 10% 8%
90% 90%
80% 19% 20% 80%
31% 31%
34% 34%
70% 41% 70% 35%
43%
51%
60% 60%
25%
50% 40% 50%
40% 40%
48%
24%
7% 18% 40% 47% 45% 53%
30% 30%
20% 45% 20%
31% 30%
10% 26% 25% 10%
13% 9% 14% 11% 8%
0% 0%
3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23
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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NRE
100% 1%
1%
9%
90% 18% 13% 12% 9%
80% 15% 11% 10% 15%
14%
70%
16%
7% 21%
60%
45%
47%
50%
40%
30% 61% 60%
54%
20%
29% 32%
10%
0%
3Q22 4Q22 1Q23 2Q23 3Q23
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MP
100% 2% 2% 1% 1% 1%
90%
26% 27% 25%
30%
80% 36%
70%
60%
37% 36%
50% 37% 46%
35%
40%
30%
23%
20% 20% 28% 15% 15%
10%
12% 11% 13% 13%
8%
0%
3Q22 4Q22 1Q23 2Q23 3Q23
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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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