Macronix — Interim / Quarterly Report 2012

Jan 30, 2013

Macronix International Co., Ltd. Fourth Quarter 2012 Results January 30, 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 C.Y. Lu 2012Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Copyright © Macronix International Co., Ltd. 2
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Major Fourth Quarter Highlights

2012Q4 Actual

Revenue Gross margin % Operating margin %

NT$ 5.7B

3% -27%

Capacity Utilization rate

75%

• Revenue sequentially decreased 21% because of lower than expected demand

• Gross/OP margin are sequentially lower due to low revenue and low utilization rate

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Current status

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NOR sales breakdown by application

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Unit: NTD M
2012Q3 2012Q4
1,500
1,200 -26%
-20% 22% 20%
21% 30%
900 2 1% -1% 29%
25% 30%
+10%
600
300 -18%
-22%
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%
4,000 17% 22% 31%
2,000
0
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4
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NOR sales breakdown by density

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High density
Unit: NTD M
Mid density
5,000
Low density
4,000 5% 4%
6% 7% 7%
3,000 4% 6% 8%
2,000
1,000
0
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4
ROM + NOR Inventory (net)
Unit: NTD M breakdown by FAB
8,000 FAB5
6,000 FAB2
58%
50% 54% 54% 51%
4,000 16% 33% 41%
2,000
0
11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4
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Copyright © Macronix International Co., Ltd. 4
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Agenda

Welcome C.Y. Lu 2012Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Quarterly Income Statement

Unit: NTD Million (except EPS)

Unit: NTD Million (except EPS)
2012/Q4 2012/Q3 2011/Q4 Net Sales 5,743 7,261 8,414 Gross Profit 192 833 3,148 Gross Margin% 3% 11% 37% Operating Expenses (1,768) (1,859) (1,720) Operating Income (1,576) (1,026) 1,428 Net Non-Operating Income (Loss) (316) (131) (170) Income Before Tax (1,892) (1,157) 1,258 Income Taxes 115 (25) (277) Net Income (1,777) (1,182) 981	QoQ YoY Change Change (21%) (32%) (77%) (94%) (8ppt) (34ppt) (5%) 3% 54% - 142% 86% 64% - - - 50% -
EPS*(NT$) (0.51) (0.34) 0.28	50% -

• As of 12/31/2012, the company had 3,516 million weighted average outstanding shares.

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Annual Income Statement

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Unit: NTD Million (except EPS)

Unit: NTD Million (except EPS)
2012 2011 Net Sales 23,889 27,844 Gross Profit 2,373 10,105 Gross Margin% 10% 36% Operating Expenses (6,969) (6,321) Operating Income (Loss) (4,596) 3,784 Net Non-Operating Income (Loss) (919) (275) Income Before Tax (5,515) 3,509 Income Taxes 77 (592) Net Income (5,438) 2,917	YoY Change (14%) (77%) (26ppt) 10% - 235% - (113%) -
EPS*(NT$) (1.55) 0.83	-

• As of 12/31/2012, the company had 3,516 million weighted average outstanding shares.

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2012 Q4 Financial Highlights

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2012 Sales = NTD 23,889M
-14% YoY
Sales
NTD M
27,844M
10,000 23,889M
8,000
6,000
4,000
2,000
0
11Q1 Q2 Q3 Q4 12Q1 Q2 Q3 Q4
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2012 GP = NTD 2,373M
-77% YoY
Gross Profit
NTD M
5,000
10,105M
4,000
3,000
2,000 2,373M
1,000
0
11Q1 Q2 Q3 Q4 12Q1 Q2 Q3 Q4
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2012 Financial Highlights

2012 2011 YoY Gross Margin (%) 10% 36% (26ppt) EPS (NTD) (1.55) 0.83 Gross Margin (%) EPS * EPS numbers are retro-adjusted

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NTD
GM%
60%
0.90
50% 0.83
42% 0.65
37%
40%
34%
31% 0.40 0.30
0.28 (1.55)
30% 0.15
0.15 0.10
20% 14%
11% 11%
(0.10)
11Q1 Q2 Q3 Q4 12Q1 Q2 Q3 Q4
10%
3%
(0.35)
0% (0.31) (0.34)
(0.39)
11Q1 Q2 Q3 Q4 12Q1 Q2 Q3 Q4 (0.60) (0.51)
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Quarterly Net Non-Operating Income

Net Non-Operating Income Net Interest Income (Expense) Net Foreign Exchange Gain(Loss) Net Investment Gain(Loss) Gain (Loss) on disposal of Asset Net Other Income Net Non-Operating Income Unit: NTD Million	2012/Q4 2012/Q3
	(48) (44) (47) 3 (180) (107) (54) 0 13 17 (316) (131)

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Annual Net Non-Operating Income

Unit: NTD Million Net Non-Operating Income Net Interest Income (Expense) Net Foreign Exchange Gain(Loss) Net Investment Gain(Loss) Gain (Loss) on disposal of Asset Net Other Income Net Non-Operating Income	2012 2011
	(148) 98 (90) (94) (596) (369) (138) (1) 53 91 (919) (275)

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Quarterly Sales Breakdown by Products

Unit: NTD Million

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9,000
8,000
7,000
44%
QoQ YoY
6,000
Change Change
52%
5,000 Flash -13% -11%
57%
4,000 ROM -28% -52%
FBG -36% -3%
3,000 51%
2,000 39% * FBG (foundry business group)
36%
1,000
5% 9% 7%
0
2011Q4 2012Q3 2012Q4
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Annual Sales Breakdown by Products

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Unit: NTD Million
30,000
25,000
YoY
20,000 55%
Change
57%
Flash -11%
15,000
ROM -22%
10,000 FBG +2%
37%
34%
FBG (foundry business group)
5,000
8% 9%
0
2011 2012
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Quarterly Quantity Breakdown by Products

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Unit : Million
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450
400
350
QoQ YoY
300 Change Change
250 Flash -9% +4%
89% 91% 93%
200 ROM -29% -39%
FBG -28% +4%
150
100
Equivalent 8” WF base for FBG
50 (foundry business group)
11% 9% 7%
0
2011Q4 2012Q3 2012Q4
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• Equivalent 8” WF base for FBG (foundry business group)

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Annual Quantity Breakdown by Products

Unit : Million

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1,600
YoY
Change
1,200
Flash +3%
ROM -28%
800 90% 93% FBG +2%
Equivalent 8” WF base for FBG
(foundry business group)
400
10%
7%
0
2011 2012
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Quarterly Sales Breakdown by Technology

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Unit: NTD Million
9,000
8,000
7,000
6,000 45%
38%
5,000
�65 nm
30%
75 nm
7%
4,000
9% 0.10 m
�
12% 0.13 m
�
3,000
�0.15�m
40% 47%
2,000
50%
1,000
3%
2%
5% 4% 5% [3][%]
0
11Q4 12Q3 12Q4
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Annual Sales Breakdown by Technology

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Unit: NTD Million
28,000
24,000
29%
20,000
31% �65 nm
8%
75 nm
16,000
0.10 m
�
8%
0.13 m
�
12,000
�0.15 � m
49%
8,000
52%
4,000
6%
3%
8%
6%
0
2011 2012
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Quarterly 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	12/31/2012	09/30/2012
	17,793 6,798 29,274 62,190 5,322 15,800 26,948 35,242 43.3% 10.01 2012/Q4	17,779 6,970 30,897 65,208 6,224 16,441 28,133 37,075 43.1% 10.53 2012/Q3
	1,983 (459)	1,994 (702)
	2,033 180	834 920

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Annual Balance Sheet / Cash Position

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Unit: NTD Million Cash Inventory(Net) Property, Plant and Equipment Total Assets Interest bearing debt - short term Interest bearing debt - long term Total Liabilities Equity Debt Ratio Book Value (NT$) Annual Highlight Depreciation & Amortization Capital Expenditures Cash Flow from Operating EBITDA	12/31/2012 12/31/2011
	17,793 17,727 6,798 6,399 29,274 34,855 62,190 67,877 5,322 3,328 15,800 16,079 26,948 25,927 35,242 41,950 43.3% 38.2% 10.01 12.39 2012 2011
	7,780 5,417 (2,751) (15,368) 2,601 5,505 2,568 8,945

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8” Equivalent Wafer Out & Utilization Rate

Wafer Out

Utilization rate

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400,000 120%
350,000 100% 102% 101% [103%]
99%
94% 95% 93% 97% 94% 92% 100%
91% [88%]
97% 84%
300,000 92%
90% 79% 80%
86% 86% 75 % 80%
250,000 69%
Design capacity
200,000 60%
150,000
47%
40%
100,000
20%
50,000
0 0%
07Q1Q2 Q3 Q408Q1Q2 Q3 Q409Q1Q2 Q3 Q410Q1Q2 Q3 Q411Q1Q2 Q3 Q412Q1Q2 Q3 Q4
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*LHS: Amount of Wafer Out� RHS: Utilization rate

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Agenda

Welcome C.Y. Lu 2012Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Business update - ROM equivalent density shipment

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Density shipment index:
1,495
1,500 2007Q1 =100
1,200
983
935
900
680
597 570
600
360
316 290
299 259
266
300
223 207
188 170 186 198 155
156
112 126 135
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 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:
2007Q1 =100
862
791
800
731
715
674
594
600 559 561
509 505
480
470
425
359
400
325
185 187
200 159
128 124 [121] 130
113
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 2008 2009 2010 2011 2012
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Business update

NOR

� ROM business

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100%
5% 7%
16%
80%
58% 55%
60% High density
55%
Mid density
40% Low density
20% 37% 38%
29%
0%
2011 2012 2013E
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• 65nm products represented 84% of ROM business in 12Q4

• 32nm 32Gb product has been tape-out in 12Q4

• 45nm products will be the mainstream in 2013

� NOR flash business

• 75nm products represented 12% of NOR business in 12Q4 and will increase in 2013

� Hybrid flash business

• Will deliver hybrid memory in 13Q3

NOR

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ROM
100% 100% 1% 1% 4%
2% 10% 12%
31%
80% 80%
46%
60% 82% 75% 85% 87% 84% 60% 85% 84% 83%
81% 77%
32 nm
40% 40% 61%
45 nm 75 nm
44%
65 nm 0.11 m
20% 20%
17% 75 nm 0.13 m
0% 13% 5% 8% 8%7% 8% 5% 11% 5% 5%3% 0.10 m 0% 8%6% 9%6% 8% 5% 5%4% 6% 5% 4%4% 0.15 m
11Q4 12Q1 12Q2 12Q3 12Q4 2013E 11Q4 12Q1 12Q2 12Q3 12Q4 2013E
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Business update - 2012Q4 NOR Flash breakdown

Sales amount breakdown

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Consumer Comm
25% 25%
Computer
Handset
25%
17%
Others Auto
3% 5%
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•OTHERS includes Industrials and others

QTY breakdown

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QTY. Computer Consumer Communication Handset Auto
(M ea) -18% QoQ -19% QoQ +3% QoQ +19% QoQ -9% QoQ
200 -4% YoY -11% YoY +13% YoY +31% YoY +44% YoY
150 150
100 100 100 100 100
50 50 50 50 50
0 0 0 0 0
2012Q3 2012Q4 2012Q3 2012Q4 2012Q3 2012Q4 2012Q3 2012Q4 2012Q3 2012Q4
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Business update - 2012 NOR Flash breakdown

Sales amount breakdown

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Consumer
26% Comm
24%
Computer
•OTHERS includes
28% Handset
Industrials and others
13%
Others Auto
3% 6%
QTY breakdown
Computer Consumer Communication Handset Auto
QTY.
-5% YoY -7% YoY +2% YoY +52% YoY +81% YoY
(M ea)
600
600
400 400 400 400 400
200 200 200 200 200
0 0 0 0 0
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
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Agenda

Welcome C.Y. Lu 2012Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Copyright © Macronix International Co., Ltd. 27
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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