Macronix — Interim / Quarterly Report 2013

Jan 28, 2014

Macronix International Co., Ltd. Fourth Quarter 2013 Results

January 28, 2014

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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 2013Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Major Fourth Quarter Highlights

2013Q4 Actual

2013Q4 2013Q3 Actual Actual Revenue NT$ 5.9 B NT$ 6.7 B Gross margin % 12% 18% Operating margin % -25% -14% Capacity Utilization rate 91% 92%

• Revenue sequentially decreased by 13% because of seasonal weak demand in ROM

• Gross/OP margin decrease sequentially due to lower revenue

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Agenda

Welcome C.Y. Lu 2013Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Quarterly Consolidated Statements of Comprehensive Income

2013/Q4 2013/Q3 2012/Q4 Net Sales 5,860 6,708 5,839 Gross Profit 680 1,231 179 Gross Margin% 12% 18% 3% Operating Expenses (2,148) (2,160) (1,999) Operating Income (1,468) (929) (1,820) Net Non-Operating Income (Loss) (41) 22 (85) Income Before Taxes (1,510) (907) (1,905) Income Taxes (2) (1) 110 Net Income (1,512) (908) (1,795) Other Comprehensive Income 141 (31) (55) Comprehensive Income (1,371) (939) (1,850) Net Income(Loss) Attributable to : Shareholders of the Parent (1,501) (897) (1,775) NoncontrollingInterests (11) (11) (20) TD Million (except EPS)	QoQ YoY Change Change (13%) 0.4% (45%) 281% -6ppt 9ppt (1%) 7% 58% (19%) - (51%) 66% (21%) 176% - 67% (16%) - - 46% (26%) 67% (15%) 2% (46%)
EPS*(NT$) (0.42) (0.26) (0.51)	64% (17%)
Weighted Average Outstanding Million Shares 3,518 3,518 3,516

Unit: NTD Million (except EPS)

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Annual Consolidated Statements of Comprehensive Income

Unit:	2013 2012 Net Sales 22,204 24,229 Gross Profit 1,951 2,406 Gross Margin% 9% 10% Operating Expenses (8,307) (7,868) Operating Income (6,356) (5,462) Net Non-Operating Income (Loss) 3 (117) Income Before Taxes (6,353) (5,579) Income Taxes (5) 61 Net Income (6,358) (5,518) Other Comprehensive Income 111 (55) Comprehensive Income (6,247) (5,573) Net Income(Loss) Attributable to : Shareholders of the Parent (6,306) (5,438) NoncontrollingInterests (52) (80) NTD Million (except EPS)	YoY Change (8%) (19%) (1ppt) 6% 16% - 14% - 15% - 12% 16% (34%)
	EPS*(NT$) (1.79) (1.55)	16%
	Weighted Average Outstanding Million Shares 3,518 3,516

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2013Q4 Financial Highlights

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2013Q4 Sales = NTD 5,860 M
0.4% YoY
2013 Sales = NTD 22,204 M
-8% YoY
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Sales
NTD M
24,229M
22,204M
10,000
8,000
6,000
4,000
2,000
0
12Q1 Q2 Q3 Q4 13Q1 Q2 Q3 Q4
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2013Q4 GP = NTD 680 M
281% YoY
2013 GP = NTD 1,951 M
-19% YoY
Gross Profit
NTD M
2,406M 1,951M
1,500
1,000
500
0
12Q1 Q2 Q3 Q4 13Q1 Q2 Q3 Q4
(500)
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2013 Financial Highlights

	2013	2012
Gross Margin (%)	9%	10%
EPS (NTD)	(1.79)	(1.55)

Gross Margin (%)

EPS

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GM%
25%
18%
15%
12%
15% 12%
10%
3% 4%
5%
-5% 1 2Q1 Q2 Q3 Q4 13Q1 Q2 Q3 Q4
(4%)
-15%
-25%
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• EPS numbers are retro-adjusted

NTD

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1.00
0.75
(1.79)
(1.55)
0.50
0.25
0.00
12Q1 Q2 Q3 Q4 13Q1 Q2 Q3 Q4
(0.25)
(0.26)
(0.31) (0.33)
(0.50) (0.40)
(0.51) (0.42)
(0.59) (0.52)
(0.75)
(1.00)
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Quarterly Consolidated Balance Sheet / Cash Position

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 Unit: NTD Million	12/31/2013	09/30/2013
	11,979 8,795 26,728 54,046 8,223 10,943 25,320 28,726 47% 8.15 2013/Q4	12,783 8,709 27,534 56,703 7,063 13,034 26,606 30,097 47% 8.54 2013/Q3
	1,860 (1,212) 1,539	1,934 (1,739) (306)
	429	1,111

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Annual Consolidated 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	12/31/2013 12/31/2012
	11,979 19,097 8,795 6,860 26,728 29,884 54,046 62,331 8,223 5,322 10,943 15,800 25,320 27,360 28,726 34,971 47% 44% 8.15 9.93 2013 2012
	7,744 7,912 (4,318) (2,806) (579) 1,870 1,726 2,636

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Quarterly Sales Breakdown by Products (Parent Company)

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Unit: NTD Million
8,000
6,000
QoQ YoY
Change Change
54%
Flash -6% +3%
4,000 57%
58%
ROM -21% -4%
FBG -17% +8%
2,000
38% * FBG (foundry business group)
36% 34%
7% 8% 8%
0
2012Q4 2013Q3 2013Q4
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Annual Sales Breakdown by Products (Parent Company)

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Unit: NTD Million
30,000
25,000
YoY
20,000
Change
57%
Flash -4%
15,000 60%
ROM -17%
10,000 FBG -2%
34%
FBG (foundry business group)
30%
5,000
9% 10%
0
2012 2013
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Quarterly Quantity Breakdown by Products (Parent Company)

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Unit : Million
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500
400
QoQ YoY
Change Change
300
Flash -2% +19%
94%
95%
ROM -29% -24%
200 93%
FBG -11% +11%
100 * Equivalent 8” WF base for FBG
(foundry business group)
7% 6% 5%
0
2012Q4 2013Q3 2013Q4
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Annual Quantity Breakdown by Products (Parent Company)

Unit : Million

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2,000
YoY
Change
1,600
Flash +13%
1,200 ROM -25%
FBG -1%
95%
800 93% * Equivalent 8” WF base for FBG
(foundry business group)
400
7% 5%
0
2012 2013
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Quarterly Memory Sales Breakdown by Technology

Unit: NTD Million

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6,000
10%
18%
30%
19%
4,000
12%
12%
18% 45nm
19%
65 nm
75 nm
0.10 m
μ
2,000
0.13 m
50% μ
47%
46% ≧ 0.15 μ m
3%
3% 3%
5% 3% 2%
0
12Q4 13Q3 13Q4
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Annual Memory Sales Breakdown by Technology

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Unit: NTD Million
24,000
20,000
31%
10%
16,000
16%
8%
12,000 17% 45nm
65 nm
75 nm
8,000
52%
0.10 m
μ
0.13 m
50% μ
4,000 ≧ 0.15 μ m
3% 3%
6% 4%
0
2012 2013
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8” Equivalent Wafer Out & Utilization Rate

Wafer Out

Utilization rate

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400,000 120%
102%
350,000 101% 103%
100% 97% 99% 94% 100%
97% 92% 91% 88% 88%92% 91%
300,000 93% 86% 84%
84%
79% 80%
90%
75% 80%
250,000
69%
Design capacity
200,000 60%
150,000
47%
40%
100,000
20%
50,000
0 0%
08Q1 Q2 Q3 Q409Q1 Q2 Q3 Q410Q1 Q2 Q3 Q411Q1 Q2 Q3 Q412Q1 Q2 Q3 Q413Q1 Q2 Q3 Q4
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*LHS: Amount of Wafer Out； RHS: Utilization rate

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Agenda

Welcome C.Y. Lu 2013Q4 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:
1,500 2008Q1 =100 1,440
1,350
1,184
1,200
900
755
779
741
539
600 506
473 452
285
300 250 237 230 205
211 164
177
148 157
124 123
100 107
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
2008 2009 2010 2011 2012 2013
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Current status of memory business

� ROM business

• ≤45nm products represented 57% of ROM business in 13Q4

• 32nm/45nm 32Gb Hybrid memory ES samples were sent for qualification in 13Q4

• 45nm 4G/8G Hybrid memory ES samples were sent for qualification in 13Q4 and will be in pilot-run production in 14Q1

• Average density per unit was 5Gb in 13Q2, 6.4Gb in 13Q3 and 8.5Gb in 13Q4

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NTD % ROM (by tech & sales)
100%
14%
24%
35%
80% 33%
57%
75%
60%
85% 87% [84%]
76% 32 nm
67%
40%
59% 57% 45 nm
65 nm
38%
20% 75 nm
17%
8% 8% 11% 7% 4% 5% 3% 5% ≧0.10μm
0% 8% 7% 5% 5% 3% 5% 3% 2% 3%
12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 2013
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Business update - NOR Flash equivalent density shipment

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1,000 974
Density shipment index: 934
2008Q1 =100
808
800 763
700 705
647
633
597
600
525
494 497
451 447
425
416
376
400
318
287
200 163 166
141
115
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
2008 2009 2010 2011 2012 2013
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Current status of memory business

� NOR flash business

• 75nm products represented 26% of NOR business in 13Q4

• 55nm serial 1Gb 3V NOR ES will be sent for qualification in 14Q1

• 55nm parallel 1Gb NOR ES will be sent for qualification in 14Q1

• 36nm 4Gb NAND ES already sent for qualification in 13Q4

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• 36nm 2Gb NAND ES will be sent for qualification in 14Q1

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High density
Mid density
NTD % NOR (by tech & sales) 100% NTD % NOR (by density & sales) Low density
100% 5% 7%
1% 4% 10% 12% 15% 12% 21%
19% 23% 26% 21%
80%
75 nm 80%
0.11 μ m 58% 55%
60% 54%
0.13 μ m
60% 51%
84%
≧ 0.15 μ m 83%
81% 77%
76% 71% 68% 70% 40% 11%
40% 67%
20% 37% 38%
34%
20% 28%
6% 5%
4% 5% 4% 5% 5% 4% 5% 0%
0% 9% 8% 5% 6% 5% 5% 4% 3% 4% 2011 2012 2013 2014E
12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 2013
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Business update - NOR Flash breakdown & outlook

2013Q4 NOR

Revenue breakdown

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Consumer
Comm
29%
23%
•OTHERS includes
Computer Handset
Industrials and others
23% 13%
Others Auto
4% 8%
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2013Q4 QTY breakdown

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QTY.
(M ea) Computer Consumer Communication Handset Auto
-
200 +0.5% YoY12% QoQ +51% YoY-1% QoQ +26% YoY+13% QoQ +11% YoY+7% QoQ +14% YoY-28% QoQ
150
150 150 150 150
100
100 100 100 100
50 50 50 50 50
0 2013Q3 2013Q4 0 2013Q3 2013Q4 0 2013Q3 2013Q4 0 2013Q3 2013Q4 0 2013Q3 2013Q4
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Business update - NOR Flash breakdown & outlook

2013 NOR

Revenue breakdown

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Consumer
Comm
28%
24%
•OTHERS includes
Computer Handset
Industrials and others
23% 13%
Others Auto
4% 8%
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2013 QTY breakdown

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QTY. Computer Consumer Communication Handset Auto
(M ea)
-8% YoY +29% YoY +19% YoY +31% YoY +41% YoY
600
600
400
400 400 400 400
200 200 200 200 200
0 0 0 0 0
2012 2013 2012 2013 2012 2013 2012 2013 2012 2013
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Agenda

Welcome C.Y. Lu 2013Q4 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. 25
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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