Macronix International Co., Ltd. Third Quarter 2017 Results

October 26, 2017

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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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Agenda

Welcome

2017Q3 Financial Results Business Update Remarks and Q&A

Miin Wu Paul Yeh Miin Wu Miin Wu

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Financial Highlights

2017Q3 2017Q2 Actual Actual Revenue NT$10.5B NT$ 6.6B Gross margin % 38.4% 33.8% Operating margin % 20% 9%

Revenue sequentially rallied by 59% because of strong demand for all memory product lines: ROM(+209% QoQ), NAND(+100%) and NOR(+23%)
Gross margin sequentially improved by 4.6ppt because of higher density product mix and favorable pricing
OP margin increased by 11ppt QoQ due to higher gross profit and only moderately added OP expense

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Agenda

Welcome

Welcome Miin Wu 2017Q3 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)� 2017/Q3 2017/Q2 2016/Q3 Net Sales 10,467 6,563 7,092 Gross Profit 4,022 2,216 2,176 Gross Margin% 38.4% 33.8% 30.7% Operating Expenses (1,923) (1,631) (1,500) Operating Income 2,098 585 676 Operating Margin% 20% 9% 10% Net Non-Operating Income (Loss) 30 37 (41) Income Before Taxes 2,128 622 635 Income Taxes Expense (benefit) 5 6 2 Net Income 2,123 616 633 Other Comprehensive Income 138 107 187 Comprehensive Income 2,261 723 820 Net Income(Loss) Attributable to : Shareholders of the Parent 2,123 616 633 NoncontrollingInterests (0) (0) (0)	QoQ YoY Change Change 59% 48% 81% 85% 4.6ppt 7.7ppt 18% 28% 259% 210% 11ppt 10ppt 242% 235% (17%) 124% 245% 236% 29% (27%) 213% 176% 245% 235%
Basic EPS*(NT$) 1.20 0.35 0.36	243% 233%
EBITDA 2,667 1,171 1,219 Weighted Avg Outstanding Million Shares 1,766 1,763 1,751

Unit: NTD Million (except EPS)�
2017/Q3
2017/Q2
2016/Q3
Net Sales
10,467
6,563
7,092
Gross Profit
4,022
2,216
2,176
Gross Margin%
38.4%
33.8%
30.7%
Operating Expenses
(1,923)
(1,631)
(1,500)
Operating Income
2,098
585
676
Operating Margin%
20%
9%
10%
Net Non-Operating Income (Loss)
30
37
(41)
Income Before Taxes
2,128
622
635
Income Taxes Expense (benefit)
5
6
2
Net Income
2,123
616
633
Other Comprehensive Income
138
107
187
Comprehensive Income
2,261
723
820
Net Income(Loss) Attributable to :
Shareholders of the Parent
2,123
616
633
NoncontrollingInterests
(0)
(0)
(0)

QoQ
YoY
Change
Change
59%
48%
81%
85%
4.6ppt
7.7ppt
18%
28%
259%
210%
11ppt
10ppt
242%
235%
(17%)
124%
245%
236%
29%
(27%)
213%
176%
245%
235%

Basic EPS*(NT$)
1.20
0.35
0.36

243%
233%

EBITDA
2,667
1,171
1,219
Weighted Avg Outstanding Million Shares
1,766
1,763
1,751

*EPS are retro-adjusted because of capital reduction

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Improved Annualized Return on Equity (Parent Company)

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20%
20%
9%
10%
4%
0%
17Q1 Q2 Q3
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2017Q3 Financial Highlights

2017Q3 Sales = NTD 10,467M +48% YoY

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Sales Gross Profit
NTD M NTD M
4,500
12,000
24,125M
5,836M
9,000
3,000
6,000
1,500
3,000
0 0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
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2017Q3 Financial Highlights

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2017Q3 2016Q3
Gross Margin (%) 38.4% 30.7%
Basic EPS -- NT$ 1.20 0.36
Basic EPS
Gross Margin (%)
(retro-adjusted)
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GM%
NTD
40% 38.4% (0.14)
1.50
32% 34% 1.20
30.7% 1.20
27%
0.90
0.60 0.36 0.41 0.35
20%
15% 14% 0.12
0.30
0.00
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
(0.30)
(0.39)
0% (0.60) (0.52)
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
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Quarterly Consolidated Balance Sheet / Cash Position

	2017/09/30	2017/06/30
Cash	6,883	5,406
Inventory(Net)	9,389	9,075
Property, Plant and Equipment	15,490	15,204
Total Assets	41,361	36,980
Interest bearing debt - short term	8,233	7,822
Interest bearing debt - long term	963	1,215
Total Liabilities	19,656	17,591
Shareholders' Equity	21,705	19,389
Debt Ratio (%)	47.5%	47.6%
Book Value -- NT$	12.04	10.75
Quarterly Highlight	2017/Q3	2017/Q2
Depreciation & Amortization	488	492
Capital Expenditures	(657)	(122)
Cash Flow from Operating	1,970	608

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

12,000

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14%
9,000
QoQ YoY
11% Change Change
48%
6,000 11%
NAND +100% +78%
53% NOR +23% +36%
63%
ROM +209% +70%
3,000
FBG +8% +14%
32%
28% * FBG (foundry business group)
17%
8% 9% 6%
0
2016Q3 2017Q2 2017Q3
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Quarterly Quantity Breakdown by Products (Parent Company)

Unit : Million 900 6% 4% QoQ YoY 600 7% Change Change NAND +55% +12% 90% NOR +3% +31% 94% 300 ROM +142% +98% 91% FBG +3% +20% * Equivalent 8” WF base for FBG (foundry business group) 2% 2% 4% 0 2016Q3 2017Q2 2017Q3

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Agenda

Welcome

Welcome Miin Wu 2017Q3 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Business update - ROM equivalent density shipment

 ROM business

≥ 64Gb products represented 59% of ROM business in 2017Q3
Increasing demand for high density products from new platform

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2,015
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2,100 Density shipment index: 2013Q1 =100

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Density shipment index: 2013Q1 =100
1,064
700
517 478
365 352 374
285 267
200
168
149
100 115 102 126 82 118 93
0
13Q1 Q2 Q3 Q4 14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
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1,400

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Business update – NOR equivalent density shipment

Density shipment index: 2013Q1 =100

250

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202
190
182
180 179
171 169
161
151 151 150
134 135 134
128
125
119
125 113
100
0
13Q1 Q2 Q3 Q4 14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
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Current status of NOR memory business

 NOR flash business

Accumulative design-win case count

≤75nm products represented 54% of NOR business in 2017Q3

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900
LD (512K~16M)
800
700 MD ( 32M~128M)
600 HD (≥256M )
500
400
300
200
100
0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
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With the best-in-class product quality and performance, Macronix is gaining more business & shares from global customers
Macronix remains No.1 position in the NOR industry

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≤ 55 nm
NOR (by tech & sales) ≤ 75 nm
NTD % ≧ 0.10μm
100% 1% 1% 1% 2% 2% 3% 1% 3%
80% 39%
42% 46% 49% 46% 43% 48% 51% 46%
50%
60%
40%
61%
58% 53% 50% 53% 55% 50% 46% 53% 47%
20%
0%
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 2015 2016 2017
(E)
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Speedy growth in automotive segment

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Revenue
2500
1500
500
2011 2012 2013 2014 2015
-500
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2011 2012 2013 2014 2015 2016 2017
Q1~Q3
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Business update – NOR flash breakdown

2017Q3 NOR Revenue breakdown

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Consumer,
31%
Comm, 31%
Computer,
21%
I.M.A., 8% Auto , 9%
Comm: including handsets
I (Industrial), M (Medical), A (Aerospace-defense)
2017Q3 NOR Qty breakdown
Computer Consumer Communication Automotive
QTY. -4% QoQ +10% QoQ +4% QoQ +6% QoQ
(M ea)
+10% YoY +24% YoY +68% YoY +6% YoY
300 300 300 100
150 150 150 50
0 0 0 0
2017Q2 2017Q3 2017Q2 2017Q3 2017Q2 2017Q2 2017Q2 2017Q3
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I (Industrial), M (Medical), A (Aerospace-defense)

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Business update – SLC NAND breakdown & outlook

 SLC NAND flash business

Demand is stronger than expected
Because of increased wafer-out and better pricing, NAND business increased by 100% in Q3 QoQ

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Accumulative design-win
case count of 36nm
500
322 [366 412 ]
282
229
250
123
49
0
2016Q1 Q2 Q3 Q4 2017Q1 Q2 Q3
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SLC NAND Flash equivalent density shipment

2017Q3 NAND

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Total density (Tb) 350,000
Density shipment index: 36 nm Revenue breakdown
2016Q1 =100
75 nm
Index
500
120,000 175,000 Consumer, Comm, 59%
311 100,000 32%
279 276
225 241 80,000
250 199 60,000 Others, 9%
100 40,000
20,000
0 0 0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3
2015 2016 2017 (E)
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Agenda

Welcome

Welcome Miin Wu 2017Q3 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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For more information regarding Macronix http://www.macronix.com

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For all inquiries, suggestions and comments [email protected]

AI assistant

Macronix Interim / Quarterly Report 2017

52013_rns_2017-10-26_0ad11c34-c761-4613-94b0-ba6bece3dd71.pdf

Macronix International Co., Ltd. Third Quarter 2017 Results

Disclaimer

Agenda

Welcome

Financial Highlights

Agenda

Welcome

Quarterly Consolidated Statements of Comprehensive Income

2017Q3 Financial Highlights

2017Q3 Financial Highlights

Quarterly Consolidated Balance Sheet / Cash Position

Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

Quarterly Quantity Breakdown by Products (Parent Company)

Agenda

Welcome

Business update - ROM equivalent density shipment

 ROM business

Business update – NOR equivalent density shipment

Density shipment index: 2013Q1 =100

Current status of NOR memory business

 NOR flash business

Accumulative design-win case count

Speedy growth in automotive segment

Business update – NOR flash breakdown

2017Q3 NOR Revenue breakdown

Business update – SLC NAND breakdown & outlook

 SLC NAND flash business

SLC NAND Flash equivalent density shipment

Agenda

Welcome

AI assistant

Macronix — Interim / Quarterly Report 2017

52013_rns_2017-10-26_0ad11c34-c761-4613-94b0-ba6bece3dd71.pdf

Macronix International Co., Ltd. Third Quarter 2017 Results

Disclaimer

Agenda

Welcome

Financial Highlights

Agenda

Welcome

Quarterly Consolidated Statements of Comprehensive Income

2017Q3 Financial Highlights

2017Q3 Financial Highlights

Quarterly Consolidated Balance Sheet / Cash Position

Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

Quarterly Quantity Breakdown by Products (Parent Company)

Agenda

Welcome

Business update - ROM equivalent density shipment

 ROM business

Business update – NOR equivalent density shipment

Density shipment index: 2013Q1 =100

Current status of NOR memory business

 NOR flash business

Accumulative design-win case count

Speedy growth in automotive segment

Business update – NOR flash breakdown

2017Q3 NOR Revenue breakdown

Business update – SLC NAND breakdown & outlook

 SLC NAND flash business

SLC NAND Flash equivalent density shipment

Agenda

Welcome

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Macronix Interim / Quarterly Report 2017