Macronix — Interim / Quarterly Report 2015

Jul 23, 2015

Macronix International Co., Ltd. Second Quarter 2015 Results July 23, 2015

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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.

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Copyright © Macronix International Co., Ltd. 1
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Agenda

Welcome C.Y. Lu 2015Q2 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Second Quarter Highlights

2015Q2 2015Q1 Actual Actual Revenue NT$ 4.98B NT$ 4.71B Gross margin % 12 % 13% Operating margin % -24% -26%

• Revenue sequentially increased by 6% because of higher demand in NAND, NOR and FBG

• Gross margin sequentially decreased by 1ppt because of unfavorable product mix

• OP margin improved sequentially due to reduced expense

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Agenda

Welcome C.Y. Lu 2015Q2 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

Unit: NTD Million (except EPS) 2015/Q2 2015/Q1 2014/Q2 Net Sales 4,975 4,706 4,973 Gross Profit 608 620 309 Gross Margin% 12% 13% 6% Operating Expenses (1,779) (1,868) (2,105) Operating Income (1,171) (1,248) (1,796) Operating Margin% (24%) (26%) (36%) Net Non-Operating Income (Loss) (46) 894 (3) Income Before Taxes (1,217) (354) (1,799) Income Taxes (5) (3) (1) Net Income (1,222) (357) (1,800) Other Comprehensive Income (203) 208 (25) Comprehensive Income (1,425) (149) (1,825) Net Income(Loss) Attributable to : Shareholders of the Parent (1,221) (355) (1,794) NoncontrollingInterests (1) (2) (6)	QoQ YoY Change Change 6% 0% (2%) 97% (1ppt) 6ppt (5%) (15%) (6%) (35%) 2ppt 12ppt 244% (32%) 242% (32%) (198%) 712% 856% (22%) 244% (32%)
EPS*(NT$) (0.35) (0.10) (0.51)	250% (32%)
EBITDA 344 1,202 174 Weighted Avg Outstanding Million Shares 3,518 3,518 3,518

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2015Q2 Financial Highlights

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2015 YTD Sales = NTD 9,682 M 2015 YTD GP = NTD 1,259M
-1% YoY +5% YoY
Sales Gross Profit
NTD M NTD M
1,500
10,000 9,763M
1,259M
9,682M 1,196M
8,000
1,000
6,000
4,000
500
2,000
0 0
14Q1 Q2 Q3 Q4 15Q1 Q2 14Q1 Q2 Q3 Q4 15Q1 Q2
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2015Q2 Financial Highlights

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2015Q2 2014Q2
Gross Margin (%) 12% 6%
EPS (NTD) (0.35) (0.51)
Gross Margin (%) EPS
GM% NTD
25%
18% 17%
13%
15% 12%
6% 8% (1.84) (0.45)
5%
-5% 14Q1 Q2 Q3 Q4 15Q1 Q2
-15%
-25%
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Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million

NTD Million
	2015/06/30	2015/03/31
Cash	3,811	6,346
Inventory(Net)	10,412	9,865
Property, Plant and Equipment	18,951	19,893
Total Assets	39,971	42,980
Interest bearing debt - short term	5,649	14,111
Interest bearing debt - long term	8,324	1,607
Total Liabilities	18,783	20,471
Shareholders' Equity	21,188	22,509
Debt Ratio (%)	47.0%	47.6%
Book Value (NT$)	5.95	6.33
Quarterly Highlight	2015/Q2	2015/Q1
Depreciation & Amortization	1,488	1,491
Capital Expenditures	(559)	(453)
Cash Flow from Operating	(226)	(149)

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Quarterly Sales Breakdown by Products (Parent Company)

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Unit: NTD Million
6,000
4%
9%
6%
4,000 QoQ YoY
Change Change
67%
66% NAND +51% +118%
65%
NOR +6% -2%
2,000
ROM -26% -35%
FBG +18% +7%
15% 14% 10%
FBG (foundry business group)
14% 15% 15%
0
2014Q2 2015Q1 2015Q2
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Quarterly Quantity Breakdown by Products (Parent Company)

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Unit : Million
500
4%
3%
3%
400
QoQ YoY
Change Change
300
NAN D +58% +79%
95% NOR +11% +5%
95%
94%
200
ROM +7% -34%
FBG +27% +9%
100 * Equivalent 8” WF base for FBG
(foundry business group)
2% 2% 2%
0
2014Q2 2015Q1 2015Q2
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Agenda

Welcome C.Y. Lu 2015Q2 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:
1,600 2010Q1 =100
1,490
1,439
1,164
1,200
1,090
957
800
629
598 610
469
514
435 408
417
382
365
400 336
230
186 166
132
100
99
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012 2013 2014 2015
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Current status of ROM memory business

� ROM business

• ≤ 45nm products represented 66% of ROM business in 15Q2

• 32nm 16Gb products are already MP in 15Q2

• Lacking support from third-party software developers from our customer will impact our ROM business in the second half of year

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NTD %
ROM (by tech & sales)
100% 2%
35%
80%
60% 61%
66%
73%
60% 80% 80%
84%
76%
32 nm
40%
65% 45 nm
≥ 65 nm
20% 40% 39%
34%
24% 25%
20% 20%
16%
0%
14Q1 Q2 Q3 Q4 15Q1 Q2 2013 2014 2015
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Business update – NOR equivalent density shipment

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Density shipment index:
250 2010Q1 =100 238 238
211
214
211
197 201 188
200 178
171
158
157
145
142
150
133
117
111 111
100
95
100 84
71
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012 2013 2014 2015
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Current status of NOR memory business

� NOR flash business

• ≤ 75nm products represented 39% of NOR business in 15Q2

• 75nm wide-range Vcc 1~64Mb NOR CS were sent in 15Q2 (for wearable / IoT application)

• 55nm serial 3V 256/512Mb NOR ES were sent to global top-tier auto customers

• Increasing requests from customers for high density products will help to grow our business in the future

High density Mid density (32Mb~128Mb) Low density NOR (by density & sales)

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≤ 75 nm Mid density (32Mb~128Mb)
NTD % ≧ 0.10 µ m NTD % Low density
100% NOR (by tech & sales) NOR (by density & sales)
100%
21% 12%
16%
19%
28% 30% 33% 34% 33% 32%
80% 39% 41%
80%
60%
60% 54%
52%
52%
40% 79%
40%
72% 70% 67% 66% 67% 61% 68%
59%
20%
20%
34% 32% 29%
0% 0%
14Q1 Q2 Q3 Q4 15Q1 Q2 2013 2014 2015(E)
2013 2014 2015(E)
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Business update – NOR flash breakdown

2015Q2 NOR

Revenue breakdown

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Consumer,
35% Comm,
20%
Handset,
Computer,
6%
20%
Auto &
Indu., 19%
2015Q2 NOR QTY breakdown
QTY.
(M ea) Computer Consumer Communication Handset Auto & Indu.
200 +2% QoQ+9% YoY +17% QoQ+16% YoY +5% QoQ+6% YoY +12% QoQ-53% YoY +60% YoY+35% QoQ
150
150 150 150 150
100
100 100 100 100
50 50 50 50 50
0 2015Q1 2015Q2 0 2015Q1 2015Q2 0 2015Q1 2015Q2 0 2015Q1 2015Q2 0 2015Q1 2015Q2
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Business update – SLC NAND breakdown & outlook

� SLC NAND flash business

• 36nm 3V 1Gb ECC-free NAND started shipment in 15Q2

• 36nm 3V 1Gb serial NAND CS were sent for qualification in 15Q2

2015Q2 NAND

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SLC NAND Flash equivalent density shipment
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Total density (Tb)
Revenue breakdown
Index 3,000 150,000
1,500 Density shipment index: 40,000
2014Q1 =100 1,272
Comm,
2,000 100,000
61%
Consumer, 1,000 877
33%
593 573 20,000
398 501 1,000 50,000
500
Others, 6%
100
0 0 0 0
14Q1 Q2 Q3 Q4 15Q1 Q2 Q3(E) 2013 2014 2015(E)
36 nm 75 nm
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Agenda

Welcome C.Y. Lu 2015Q2 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. 18
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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