Macronix — Interim / Quarterly Report 2013

Jul 29, 2013

Macronix International Co., Ltd. First Quarter 2013 Results May 3, 2013

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Disclaimer

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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.

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Copyright © Macronix International Co., Ltd. 1
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Agenda

Welcome Miin Wu

2013Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Major First Quarter Highlights

2013Q1 Actual

Revenue Gross margin % Operating margin %

NT$ 4.4B

-4%

-48%

Capacity Utilization rate 84%

• Revenue sequentially decreased 25% because of seasonal lower demand

• Gross/OP margin decline sequentially due to old equipment instability for advanced technology and low revenue

• Utilization is sequentially higher preparing for hot season

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Agenda

Welcome Miin Wu

2013Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Quarterly Consolidated Statements of Comprehensive Income

2013/Q1 2012/Q4 2012/Q1 Net Sales 4,405 5,839 5,143 Gross Profit (185) 92 755 Gross Margin% (4%) 2% 15% Operating Expenses (1,911) (1,998) (1,721) Operating Income (2,096) (1,906) (966) Net Non-Operating Income (Losses) 12 1 (135) Income Before Tax (2,084) (1,905) (1,101) Income Taxes (1) 110 (6) Net Income (2,085) (1,795) (1,107) Other Comprehensive Income 75 64 165 Comprehensive Income (2,010) (1,731) (942) Net Income(Losses) Attributable to : Shareholders of the Parent (2,069) (1,775) (1,085) NoncontrollingInterests (16) (20) (22) nit: NTD Million (except EPS)	QoQ YoY Change Change (25%) (14%) - - - - (4%) 11% 10% 117% - - 9% 89% - - 16% 88% 18% (55%) 16% 113% 17% 91% (15%) (25%)
EPS*(NT$) (0.59) (0.50) (0.31)	17% 90%
Weighted Average Outstanding Million Shares 3,518 3,516 3,513

Unit: NTD Million (except EPS)

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2013 Q1 Financial Highlights

2013 Q1 Sales = NTD 4,405M

2013 Q1 GP = NTD -185M

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Sales
NTD M
24,229M
10,000
8,000
6,000
4,000
2,000
0
12Q1 Q2 Q3 Q4 13Q1
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Gross Profit
NTD M
2,406M
1,000
750
500
250
0
12Q1 Q2 Q3 Q4 13Q1
(250)
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2013Q1 Financial Highlights

2013Q1 2012Q1 Gross Margin (%) (4%) 15% EPS (NTD) (0.59) (0.31)

Gross Margin (%)

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GM%
25%
15%
15% 11% 12%
2%
5%
-5% 12Q1 Q2 Q3 Q4 13Q1
(4%)
-15%
-25%
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EPS
EPS numbers are retro-adjusted
NTD
1.00
0.75
(1.55)
0.50
0.25
0.00
12Q1 Q2 Q3 Q4 13Q1
(0.25)
(0.31) (0.34)
(0.50) (0.40)
(0.50)
(0.59)
(0.75)
(1.00)
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Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million

Unit: NTD Million
Cash Inventory(Net) Property, Plant and Equipment Total Assets Interest bearing debt - short term Interest bearing debt - long term Total Liabilities Shareholders' Equity Debt Ratio (%) Book Value (NT$) Quarterly Highlight Depreciation & Amortization Capital Expenditures Cash Flow from Operating EBITDA	03/31/2013	12/31/2012
	17,036 7,537 28,339 59,503 5,732 15,171 26,542 32,961 44.6% 9.36 2013/Q1	19,097 6,860 29,884 62,331 5,322 15,800 27,360 34,971 43.9% 9.93 2012/Q4
	1,976 (482) (1,344)	2,009 (501)
		1,846
	(22)	193

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

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6,000
5,000
QoQ YoY
57%
4,000
Change Change
61%
Flash -10% -5%
3,000
67% ROM -54% -39%
FBG +11% +9%
2,000
36% * FBG (foundry business group)
31%
1,000
22%
8% 7% 11%
0
2012Q1 2012Q4 2013Q1
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Quarterly Quantity Breakdown by Products (Parent Company)

Unit : Million

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400
350
300
QoQ YoY
Change Change
250
Flash -5% +14%
200
93%
ROM -54% -38%
97%
150 94% FBG +7% +9%
100
Equivalent 8” WF base for FBG
50 (foundry business group)
6% 7% 3%
0
2012Q1 2012Q4 2013Q1
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Quarterly Memory Sales Breakdown by Technology

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Unit: NTD Million
6,000
5,000
30%
4,000 25%
3%
7% 12% 18%
45nm
3,000
65 nm
13%
75 nm
0.10 m
�
2,000
57%
50% 0.13 m
�
58%
�0.15�m
1,000
4% 3% 4%
8% 5% 4%
0
12Q1 12Q4 13Q1
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8” Equivalent Wafer Out & Utilization Rate

Wafer Out

Utilization rate

400,000																																																							120%
250,000 300,000 350,000		86% 95% 94% 92% 93% 100% 97% 69% 99% Design capacity																				102% 90% 94% 101%										84% 75% 103% 97% 86% 92% 79% 91%88% 84% 80%																							80% 100%
200,000																																																							60%
150,000																		47%																																					40%
100,000
50,000																																																							20%
0																																																							0%
	07Q1Q2						Q3		Q408Q1Q2						Q3		Q409Q1Q2						Q3		Q410Q1Q2						Q3			Q411Q1Q2					Q3			Q412Q1Q2					Q3			Q413Q1

*LHS: Amount of Wafer Out � RHS: Utilization rate

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Agenda

Welcome

Miin Wu

2013Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Business update - ROM equivalent density shipment

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Density shipment index:
1,500 2008Q1 =100
1,184
1,200
779
900
741
473
600 539
506
452
285
188 237 230 205
300 170 164
177
157
148 123
107 124
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 13Q1
2008 2009 2010 2011 2012
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Business update - NOR Flash equivalent density shipment

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1,000
Density shipment index:
2008Q1 =100
800 715
425 647 594 705
597
359
600 497
494
130 447
425
185
470
400 318
287
166
200 124
141
121
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 13Q1
2008 2009 2010 2011 2012
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Current status of memory business

NOR sales breakdown by application

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Unit: NTD M 2012Q4 2013Q1
1,200
900 -13% 22% -5% -4%
20%
21% 30%
21% 29%
25% -32% 30%
600
300 +22%
+4%
0
COMP CONS COMM Handset AUTO Others
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ROM + NOR sales breakdown by FAB

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Unit: NTD M
10,000 FAB5
8,000 FAB2
17%
6,000
5% 35%
1%
22%
4,000 17% 31%
30%
2,000
0
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1
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NOR sales breakdown by density

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High density ( 256Mb)
Unit: NTD M
5,000 Mid density (32 ~ 128Mb)
Low density ( 16Mb)
4,000 5% 4%
6% 7%
7%
3,000 4% 6% 8%
10%
2,000
1,000
0
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1
ROM + NOR Inventory (net)
Unit: NTD M breakdown by FAB
8,000 FAB5
6,000 FAB2
58%
54% 54% 51% 51%
4,000 17% 33% 41% 50%
2,000
0
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1
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Business update

NOR (by density & sales)

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100%
5% 7%
18%
80%
58% 55%
60% High density
53%
Mid density
40% Low density
20% 37% 38%
29%
0%
2011 2012 2013E
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� ROM business

• �45nm products represented 14% of ROM business in 13Q1

• 45nm 32Gb products are mass production in 2013/04

� NOR flash business

• 75nm products represented 15% of NOR business in 13Q1

� Hybrid memory business

• Will ship 45nm 16Gb samples for qualification in 13Q2

NOR (by tech & sales)

ROM (by tech & sales)

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100% 100% 1%
1% 4% 10% 12%
14% 15%
29%
80% 80%
46%
60% 75% 60%
85% 87% 84% 84% 83%
81% 77%
76% 32 nm 76%
40% 40% 64%
45 nm 75 nm
46%
65 nm 0.11 m
20% 20%
17% 75 nm 0.13 m
6%
0% 8% 8%7% 8% 5% 11% 5% 7% 3% 2%5% 0.10 m 0% 9% 5% 8% 4%5% 5% 6% 4%5% 4%3% 0.15 m
12Q1 12Q2 12Q3 12Q4 13Q1 2013E 12Q1 12Q2 12Q3 12Q4 13Q1 2013E
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Business update - 2013Q1 NOR Flash breakdown

Sales amount breakdown

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Consumer
Comm
26%
27%
Computer •OTHERS includes
Handset
24% Industrials and others
13%
Others Auto
3% 7%
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QTY breakdown

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QTY. Computer Consumer Communication Handset Auto
(M ea) -6% QoQ +8% QoQ -2% QoQ -21% QoQ +12% QoQ
150 -1% YoY +32% YoY +17% YoY +22% YoY +41% YoY
100
100 100 100
100
50 50 50 50 50
0 2012Q4 2013Q1 0 2012Q4 2013Q1 0 2012Q4 2013Q1 0 2012Q4 2013Q1 0 2012Q4 2013Q1
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Copyright © Macronix International Co., Ltd. 18
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Agenda

Welcome

Miin Wu

2013Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Copyright © Macronix International Co., Ltd. 19
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For more information regarding Macronix http://www.macronix.com

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