Macronix — Interim / Quarterly Report 2016

Apr 28, 2016

Macronix International Co., Ltd. First Quarter 2016 Results April 28, 2016

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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 2016Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Financial Highlights

2016Q1 2015Q4 Actual Actual Revenue NT$5.1 B NT$ 5.6B Gross margin % 15% 8% Operating margin % -16% -27%

• Revenue sequentially decreased by 9% because of seasonal lower demand in ROM and NOR product lines

• Gross margin and OP margin sequentially improved by, respectively, 7ppt and 11ppt due to lower production cost and operating expenses

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Inventory trend

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NTD M
12,000
2013 2014 2015 2016
10,000 9,334
9,652 8,231
9,136
8,000
Inventory (net)
6,000
4,000
2,000
0
13Q4 14Q4 15Q4 16Q1
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Agenda

Welcome Miin Wu 2016Q1 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: NTD Million (except EPS) 2016/Q1 2015/Q4 2015/Q1 Net Sales 5,086 5,599 4,706 Gross Profit 791 467 620 Gross Margin% 15% 8% 13% Operating Expenses (1,596) (2,002) (1,868) Operating Income (805) (1,535) (1,248) Operating Margin% (16%) (27%) (26%) Net Non-Operating Income (Loss) (85) (129) 894 Income Before Taxes (890) (1,664) (354) Income Taxes (1) (2) (3) Net Income (891) (1,666) (357) Other Comprehensive Income (108) (210) 208 Comprehensive Income (999) (1,876) (149) Net Income(Loss) Attributable to : Shareholders of the Parent (890) (1,663) (355) NoncontrollingInterests (1) (3) (2)	QoQ YoY Change Change (9%) 8% 69% 27% 7ppt 2ppt (20%) (15%) (48%) (35%) 11ppt 10ppt (47%) 151% (47%) 149% (49%) (152%) (47%) 570% (47%) 151%
EPS*(NT$) (0.25) (0.47) (0.10)	(47%) 150%
EBITDA (296) (120) 1,202 Weighted Avg Outstanding Million Shares 3,536 3,522 3,518

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2016Q1 Financial Highlights

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2016Q1 Sales = NTD 5,086M 2016 Q1 GP = NTD 791M
+8% YoY +27% YoY
Sales Gross Profit
NTD M NTD M
1,500
10,000
20,928M 2,512M
8,000
1,000
6,000
4,000
500
2,000
0 0
15Q1 Q2 Q3 Q4 16Q1 15Q1 Q2 Q3 Q4 16Q1
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2016Q1 Financial Highlights

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2016Q1 2015Q1
Gross Margin (%) 15% 13%
EPS -- NT$ (0.25) (0.1)
Gross Margin (%) EPS
GM% NTD
20%
1.00
0.75
15%
14%
13% 12% 0.50 (1.19)
0.25
10%
8%
0.00
15Q1 Q2 Q3 Q4 16Q1
(0.25)
(0.10) (0.27)
(0.50) (0.35) (0.25)
(0.47)
(0.75)
0%
(1.00)
15Q1 Q2 Q3 Q4 16Q1
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Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million

Unit: NTD Million
	2016/03/31	2015/12/31
Cash	5,341	5,593
Inventory(Net)	8,231	9,334
Property, Plant and Equipment	16,272	16,596
Total Assets	35,632	37,627
Interest bearing debt - short term	5,476	6,224
Interest bearing debt - long term	8,027	7,862
Total Liabilities	18,126	19,198
Shareholders' Equity	17,506	18,429
Debt Ratio (%)	50.9%	51.0%
Book Value -- NT$	4.84	5.10
Quarterly Highlight	2016/Q1	2015/Q4
Depreciation & Amortization	512	1,461
Capital Expenditures	(170)	(81)
Cash Flow from Operating	488	1,724

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

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9%
10%
6%
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62%
64%
65%
19%
14% 12%
15% 10% 14%
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		QoQ	YoY
	NAND	Change +0.2%	Change +74%
	NOR	-6%	+5%
	ROM	-42%	-6%
	FBG	+23%	+10%
* FBG (foundry business group)

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Quarterly Quantity Breakdown by Products (Parent Company)

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Unit : Million
600
500
5%
5% QoQ YoY
3%
400 Change Change
NAND -12% +78%
300
NOR -8% +6%
92% 94% ROM -46% +5%
95%
200
FBG +12% +15%
Equivalent 8” WF base for FBG
100
(foundry business group)
2% 3% 1%
0
2015Q1 2015Q4 2016Q1
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Agenda

Welcome Miin Wu 2016Q1 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: 2012Q1 =100
343
350
331
300
267
251
250
200 187
158
145 140
150 138
108 118
111
100 94 96
100 84
77
50
0
12Q1 Q2 Q3 Q4 13Q1 Q2 Q3 Q4 14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1
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Current status of ROM memory business

� ROM business

• ≤45nm products represented 74% of ROM business in 2016Q1

• 2016 ROM business will be flat with potential

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NTD % ROM (by tech & sales)
100%
80%
66%
76% 77% 74% 76% 76%
60% 80%
84%
≤ 45 nm
40%
≥ 65 nm
20%
34%
20% 24% 23% 26% 24% 24%
16%
0%
15Q1 Q2 Q3 Q4 16Q1 2014 2015 2016(E)
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Business update – NOR equivalent density shipment

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Density shipment index: 2012Q1 =100
250 243
228
214 214 213
200 190 192 190
181
177
169
160
154
150 141 142
130
100
100
50
0
12Q1 Q2 Q3 Q4 13Q1 Q2 Q3 Q4 14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1
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Current status of NOR memory business

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Market share in NOR industry
40% Macronix Peer 1 Peer 2
30%
20% 21%
19%
15%
10% 12% 13%
9% 10%
4%
0%
2008 2009 2010 2011 2012 2013 2014 2015
Source: iHS, Macronix
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� NOR flash business

• ≤75nm products represented 42% of NOR business in 2016Q1

• Continue to be the major supplier for global top tier customers in automotive segment

• In 2016Q1 awarded from new major accounts in data storage, networking & automotive applications

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≤ 75 nm
NTD % NOR (by tech & sales) ≧ 0.10 µ m
100%
80% 33% 39% 42% 42% 42% 32% 39%
50%
60%
40%
67% 68%
61% 58% 58% 58% 61%
50%
20%
0%
15Q1 Q2 Q3 Q4 16Q1 2014 2015 2016(E)
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Speedy growth in automotive segment

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Revenue
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Business update – NOR flash breakdown

2016Q1 NOR Revenue breakdown

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Consumer,
31% Comm, 22%
Computer,
Auto , 16%
17%
Indu, 4%
Handset,
Other, 4% 6%
2016Q1 NOR Revenue breakdown
Computer Consumer Communication Automotive
Rev.
-16% QoQ -8% QoQ -8% QoQ +9% QoQ
(NTD M)
-19% YoY +4% YoY +9% YoY +33% YoY
1,000
1,500 1,000 1,000
1,000
500 500 500
500
0 0 0
2015Q4 2016Q1 0 2015Q4 2016Q1 2015Q4 2016Q1
2015Q4 2016Q1
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Business update – SLC NAND breakdown & outlook

� SLC NAND flash business

2016Q1 NAND

• On-track increasing revenue by 75% YoY and target higher growth in the future

• 2Gb/4Gb products will be the growth momentum in 2016H2

Revenue breakdown

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Consumer,
44%
Comm,
52%
Others, 4%
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SLC NAND Flash equivalent density shipment

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3,000 Total density (Tb) 200,000
Index Density shipment index: 36 nm
2014Q1 =100 75 nm
360 40,000
313 2,000
253
240 209 100,000
187
20,000
1,000
100
120
0 0 0 0
15Q1 Q2 Q3 Q4 16Q1 2014 2015 2016(E)
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Agenda

Welcome Miin Wu 2016Q1 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