Macronix — Interim / Quarterly Report 2013

Oct 30, 2013

Macronix International Co., Ltd. Third Quarter 2013 Results

October 30, 2013

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Disclaimer

The presentation and discussion contain certain forward-looking statements with respect to the results of operation, financial condition and current expectation. The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements.

Such risks and uncertainties include but are not limited to the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks.

The forward-looking statements in this release reflect the current belief of Macronix as of the date of this release and Macronix undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

Agenda

Welcome Miin Wu 2013Q3 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

Major Third Quarter Highlights

2013Q3 2013Q2 Actual Actual

NT$ 5.2 B 18% 4% -14% -36% 92% 88%

Revenue NT$ 6.7 B

Gross margin % Operating margin %

Capacity Utilization rate

• Revenue sequentially increased 28% because of better demand in all product lines

• Gross/OP margin increase sequentially due to higher revenue, better Fab operation & higher yield rate

Agenda

Welcome Miin Wu 2013Q3 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

Quarterly Consolidated Statements of Comprehensive Income

2013/Q3 2013/Q2 2012/Q3 Net Sales 6,708 5,231 7,363 Gross Profit 1,231 225 892 Gross Margin% 18% 4% 12% Operating Expenses (2,160) (2,089) (2,087) Operating Income (929) (1,864) (1,195) Net Non-Operating Income (Loss) 22 11 25 Income Before Taxes (907) (1,853) (1,170) Income Taxes (1) (1) (32) Net Income (908) (1,854) (1,202) Other Comprehensive Income (31) (72) (28) Comprehensive Income (939) (1,926) (1,230) Net Income(Loss) Attributable to : Shareholders of the Parent (897) (1,840) (1,184) NoncontrollingInterests (11) (14) (18) TD Million (except EPS)

QoQ YoY Change Change 28% (9%) 446% 38% 14ppt 6ppt 3% 3% (50%) (22%) 100% (14%) (51%) (22%) (24%) (98%) (51%) (24%) (57%) 12% (51%) (24%) (51%) (24%) (25%) (42%)

Unit: NTD Million (except EPS)

2013Q3 Financial Highlights

2013 Q3 Sales = NTD 6,708 M -9% YoY

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Sales
NTD M
18,389M 16,344M
10,000
8,000
6,000
4,000
2,000
0
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2013 YTD GP = NTD 1,271 M
-43% YoY
Gross Profit
NTD M
2,227M 1,271M
1,500
1,000
500
0
12Q1 Q2 Q3 Q4 13Q1 Q2 Q3
(500)
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2013Q3 Financial Highlights

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2013Q3 2012Q3
Gross Margin (%) 18% 12%
EPS (NTD) (0.26) (0.33)
Gross Margin (%) EPS
EPS numbers are retro-adjusted
GM% NTD
25% 1.00
18%
15% 0.75
15% 12%
10% (1.55)
0.50
2% 4%
5% 0.25
0.00
-5% 12Q1 Q2 Q3 Q4 13Q1 Q2 Q3 12Q1 Q2 Q3 Q4 13Q1 Q2 Q3
(0.25)
(4%) (0.26)
(0.31) (0.33)
(0.50) (0.40)
-15% (0.51)
(0.59) (0.52)
(0 75)
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Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million	09/30/2013	06/30/2013
Cash	12,783	13,929
Inventory(Net)	8,709	8,046
Property, Plant and Equipment	27,534	27,325
Total Assets	56,703	56,352
Interest bearing debt - short term	7,063	5,944
Interest bearing debt - long term	13,034	13,238
Total Liabilities	26,606	25,317
Shareholders' Equity	30,097	31,035
Debt Ratio (%)	47%	45%
Book Value (NT$)	8.5	8.8
Quarterly Highlight	2013/Q3	2013/Q2
Depreciation & Amortization	1,934	1,974
Capital Expenditures	(1,739)	(886)
Cash Flow from Operating	(306)	(469)
EBITDA	1,111	208

Quarterly Sales Breakdown by Products (Parent Company)

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Unit: NTD Million
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8,000
6,000
52%
54%
4,000
63%
2,000
39%
38%
25%
9%
12% 8%
0
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QoQ YoY Change Change 54% Flash +10% -5% ROM +98% -12% FBG -13% -16% * FBG (foundry business group)

Quarterly Quantity Breakdown by Products (Parent Company)

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Unit : Million
500
400
QoQ YoY
Change Change
300
Flash +6% +11%
94%
91%
ROM +51% -24%
96%
200
FBG -16% -11%
100 * Equivalent 8” WF base for FBG
(foundry business group)
9% 4% 6%
0
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Quarterly Memory Sales Breakdown by Technology

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Unit: NTD Million
8,000
6,000
38%
10%
45nm
6% 19%
4,000
9% 65 nm
17%
75 nm
18%
15%
0.10 m
μ
0.13 m
μ
47%
2,000 53% ≧ 0.15 μ m
47%
2%
4% 3%
0 4% 5% 3%
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8” Equivalent Wafer Out & Utilization Rate

Wafer Out

Utilization rate

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400,000 120%
102%
350,000 100% 101% [103%]
99%
94% 95% 93% 97% 94% 92% 92% 100%
88%
91% [88%]
84%
300,000 92% 90% 97% 79% 80% 84%
86%
86% 75% 80%
250,000 69%
Design capacity
200,000 60%
150,000
47%
40%
100,000
20%
50,000
0 0%
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Agenda

Welcome Miin Wu 2013Q3 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

Business update - ROM equivalent density shipment

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Density shipment index:
1,500 2008Q1 =100 1,440
1,184
1,200
900
779 755
741
539
600
506
473 452
285
300 250 237 230 205
211 164
177
148 157
124 123
100 107
0
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Current status of memory business

 ROM business

• ≤ 45nm products represented 33% of ROM business in 13Q3

• 45nm 16/32Gb 32 I/O ROM products were delivered for gaming application in Q3

• 32nm 32Gb ES sample was sent for qualification in Q3

• Average density per unit were 5Gb in Q2 and 6.4Gb in Q3

• Already delivered Hybrid memory products for gaming application

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NTD % ROM (by tech & sales)
100%
14%
24%
80% 33% 39%
75%
60%
85% 87% 84%
76%
67%
40%
59% 45 nm
53%
65 nm
20%
17% 75 nm
8% 8% 11%
7% 4% 5% 5% ≧ 0.10
0% 8% 7% 5% 5% 3% 5% 3% 3%
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Business update - NOR Flash equivalent density shipment

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1,000
Density shipment index: 934
2008Q1 =100
808
800 763
700 [705]
647
633
597
600
525
494 497
451 447
416 425
376
400
318
287
200 163 166
141
115
100
0
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Current status of memory business

 NOR flash business

• 75nm products represented 23% of NOR business in 13Q3

• 75nm 64Mb 3V serial NOR products were qualified by core-chip vendor for next generation computing platform

• 75nm 16Mb 1.8V NOR products were qualified by Korea handset maker

• 55nm parallel 512Mb NOR ES were sent for qualification in Q3

• 36nm 4Gb NAND ES will be delivered in Q4

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NTD %
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NOR (by tech & sales)
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100%
1% 4% 10% 12% 15%
19% 23% 22%
80%
60%
84%
83% 17%
81% 77%
1% 5% 76% 71% 68%35% 69%
40% 22%
17% 31% 75 nm 33%
0.11 μ m
20%
6% 0.13 μ m
5%
4% 5% 4% 5% 5% 5%
9% 8% 5% 6% 5% 5% 4% 4% ≧ 0.15 μ m
0%
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NTD % NOR (by density & sales)

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100%
5% 7%
13%
80%
58% 55%
60% 5% 4% 53%
6% 7%
7%
4% 8%
6% 10% [11%]
40%
High density
20% 37% 38% 34% Mid density
Low density
0%
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Business update - NOR Flash breakdown & outlook

2013Q3 NOR

Revenue breakdown

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Consumer
Comm
32%
21%
•OTHERS includes
Computer Handset
Industrials and others
23% 12%
Others Auto
3% 9%
2013Q3 QTY breakdown
QTY. Computer Consumer Communication Handset Auto
(M ea)
+1% QoQ +21% QoQ -1% QoQ +3% QoQ +12% QoQ
200 -7% YoY +24% YoY +14% YoY +23% YoY +45% YoY
150
150 150 150 150
100
100 100 100 100
50 50 50 50 50
0 2013Q2 2013Q3 0 2013Q2 2013Q3 0 2013Q2 2013Q3 0 2013Q2 2013Q3 0 2013Q2 2013Q3
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Agenda

Welcome Miin Wu 2013Q3 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

For more information regarding Macronix http://www.macronix.com

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For all inquiries, suggestions and comments ir@mxic.com.tw