Macronix — Interim / Quarterly Report 2015

Apr 29, 2015

Macronix International Co., Ltd. First Quarter 2015 Results April 29, 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 Miin Wu 2015Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Copyright © Macronix International Co., Ltd. 2
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First Quarter Highlights

2015Q1 2014Q4 Actual Actual Revenue NT$ 4.7B NT$ 6.0 B Gross margin % 13 % 8% Operating margin % -26% -36%

• Revenue sequentially decreased by 21% because of seasonal lower demand

• Gross margin sequentially increased by 5ppt because of lower manufacturing cost

• OP margin improved sequentially due to lower operating expense

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Copyright © Macronix International Co., Ltd. 3
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Agenda

Welcome Miin Wu 2015Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Quarterly Consolidated Statements of Comprehensive Income

Unit:	2015/Q1 2014/Q4 2014/Q1 Net Sales 4,706 5,960 4,790 Gross Profit 620 482 861 Gross Margin% 13% 8% 18% Operating Expenses (1,868) (2,637) (2,130) Operating Income (1,248) (2,155) (1,269) Operating Margin% (26%) (36%) (27%) Net Non-Operating Income (Loss) 894 (130) (13) Income Before Taxes (354) (2,285) (1,282) Income Taxes (3) (9) (1) Net Income (357) (2,294) (1,283) Other Comprehensive Income 208 222 265 Comprehensive Income (149) (2,072) (1,018) Net Income(Loss) Attributable to : Shareholders of the Parent (355) (2,292) (1,274) NoncontrollingInterests (2) (2) (9) NTD Million (except EPS)	QoQ YoY Change Change (21%) (2%) 29% (28%) 5ppt (5ppt) (29%) (12%) (42%) (2%) 10ppt 1ppt (84%) (72%) (70%) 150% (84%) (72%) (6%) (22%) (93%) (85%) (85%) (72%) (27%) (81%)
	EPS*(NT$) (0.10) (0.65) (0.36)	(85%) (72%)
	EBITDA 1,202 (330) 672

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2015Q1 Financial Highlights

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2015Q1 Sales = NTD 4,706 M
-2% YoY
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2015Q1 GP = NTD 620M
-28% YoY
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Sales
NTD M
10,000 22,214M
8,000
6,000
4,000
2,000
0
14Q1 Q2 Q3 Q4 15Q1
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Gross Profit
NTD M
2,759M
1,250
750
250
14Q1 Q2 Q3 Q4 15Q1
(250)
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2015Q1 Financial Highlights

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2015Q1 2014Q1
Gross Margin (%) 13% 18%
EPS (NTD) (0.1) (0.36)
Gross Margin (%) EPS
EPS numbers are retro-adjusted
NTD
1.00
17%
0.75
6% 8% 13% 0.50 (1.84)
0.25
0.00
Q2 Q3 Q4 15Q1 14Q1 Q2 Q3 Q4 15Q1
(0.25)
(0.31) (0.10)
(0.36)
(0.50)
(0.52)
(0.75) (0.65)
(1.00)
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GM%
25%
18% 17%
15%
6% 8% 13%
5%
-5% 14Q1 Q2 Q3 Q4 15Q1
-15%
-25%
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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 Unit: NTD Million	2015/03/31 2014/12/31
	6,346 7,636 9,865 9,302 19,893 21,128 42,980 44,843 14,111 14,277 1,607 2,074 20,471 22,237 22,509 22,606 47.6% 49.6% 6.33 6.36 2015/Q1 2014/Q4
	1,491 1,885 (453) (264) (149) 1,760

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Quarterly Sales Breakdown by Products (Parent Company)

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Unit: NTD Million
8,000
6,000
4%
QoQ YoY
2% Change Change
6%
53%
4,000 NAND +10% +286%
66% NOR -2% -3%
65%
ROM -66% -26%
2,000
FBG +10% +1%
33%
FBG (foundry business group)
19% 14%
13% 10% 15%
0
2014Q1 2014Q4 2015Q1
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Quarterly Quantity Breakdown by Products (Parent Company)

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Unit : Million
600
500
QoQ YoY
3%
3%
400 Change Change
NAND -3% +342%
300
NOR -1% -2%
ROM -63% -39%
97% 93% 95%
200
FBG +1% -5%
Equivalent 8” WF base for FBG
100
(foundry business group)
3% 4% 2%
0
2014Q1 2014Q4 2015Q1
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Agenda

Welcome Miin Wu 2015Q1 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:
1,600 2010Q1 =100
1,490
1,439
1,164
1,200
1,090
957
800
610
629
598
514
469
435 408
417
382
365
400
230
186 166
132
99
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 15Q1
2010 2011 2012 2013 2014
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Current status of ROM memory business

� ROM business

• ≤ 45nm products represented 80% of ROM business in 15Q1

• 32nm 16Gb products are already shipped in 15Q1 and 32Gb products are ready for shipment

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NTD %
ROM (by tech & sales)
100% 2%
35%
80%
60% 61%
76%
60% 80% 80%
84%
74%
40%
32 nm
65%
45 nm
20% 40% 39%
≥ 65 nm
24% 24%
20% 20%
16%
0%
14Q1 Q2 Q3 Q4 15Q1 2013 2014 2015
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Business update – NOR equivalent density shipment

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Density shipment index:
250 2010Q1 =100 238
211
214
211
197 201 188
200 178
171
158
157
145
142
150
133
117
111 111
100
100 84 95
71
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 15Q1
2010 2011 2012 2013 2014
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Current status of NOR memory business

� NOR flash business

• ≤ 75nm products represented 33% of NOR business in 15Q1

• 75nm serial 1.8V 512Mb (ultra-low temp) CS was sent for qualification in 15Q1 (for communication application)

• 55nm serial 3V 128~512Mb industrial grade NOR products are in mass-production

• WLCSP NOR products for wearable / IoT applications are ready for shipment

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

2015Q1 NOR

Revenue breakdown

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Consumer,
31% Comm,
21%
Handset,
Computer,
7%
22%
Auto &
Indu., 19%
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2015Q1 NOR QTY breakdown

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QTY.
(M ea) Computer Consumer Communication Handset Auto & Indu.
200 +11% QoQ+3% YoY +11% YoY-4% QoQ +4% YoY-8% QoQ -23% QoQ-59% YoY +28% YoY+14% QoQ
150
150 150 150 150
100
100 100 100 100
50 50 50 50 50
0 2014Q4 2015Q1 0 2014Q4 2015Q1 0 2014Q4 2014Q4 0 2014Q4 2015Q1 0 2014Q4 2015Q1
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Business update – SLC NAND breakdown & outlook

� SLC NAND flash business

• 36nm MCP (2Gb NAND+1Gb DRAM) is ready for shipment

• 36nm 3V 1Gb ECC-free NAND CS was sent for qualification in 15Q1

2015Q1 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
1,200 40,000
Density shipment index:
2014Q1 =100
Comm,
2,000 100,000
691
59%
Consumer, 593 573
33% 600 501 20,000
398
1,000 50,000
Others, 8%
100
0 0 0 0
14Q1 Q2 Q3 Q4 15Q1 Q2( E) 2013 2014 2015(E)
36 nm 75 nm
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Copyright © Macronix International Co., Ltd. 17
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Agenda

Welcome Miin Wu 2015Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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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