Macronix International Co., Ltd. Second Quarter 2017 Results July 24, 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

2017Q2 Financial Results Business Update Remarks and Q&A

C.Y. Lu Paul Yeh C.Y. Lu C.Y. Lu

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Financial Highlights

	2017Q2	2017Q2	2017Q1
	Actual	(same principle	Actual
	(PSE is included)	as Q1)
Revenue	NT$ 6.6B	NT$ 6.6B	NT$ 6.6B
Gross margin %	34%	35%	27%
Operating margin %	9%	11%	6%
Net income	NT$ 616M	NT$ 784M	NT$ 203M

Record date of capital reduction to NT$ 18,059M is on June 29, 2017
2017H1 PSE (Profit Sharing Expenses) of NT$168M is recognized in Q2

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Agenda

Welcome

2017Q2 Financial Results Business Update Remarks and Q&A

C.Y. Lu Paul Yeh C.Y. Lu C.Y. Lu

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Quarterly Consolidated Statements of Comprehensive Income

Unit: NTD Million (except EPS)� 2017/Q2 2017/Q1 2016/Q2 Net Sales 6,563 6,610 5,181 Gross Profit 2,216 1,815 707 Gross Margin% 34% 27% 14% Operating Expenses (1,631) (1,401) (1,553) Operating Income 585 414 (846) Operating Margin% 9% 6% (16%) Net Non-Operating Income (Loss) 37 (210) 11 Income Before Taxes 622 204 (835) Income Taxes Expense (benefit) 6 1 (144) Net Income 616 203 (691) Other Comprehensive Income 107 19 (134) Comprehensive Income 723 222 (825) Net Income(Loss) Attributable to : Shareholders of the Parent 616 203 (689) NoncontrollingInterests (0) (0) (2)	QoQ YoY Change Change (1%) 27% 22% 214% 7ppt 20ppt 16% 5% 41% - 3ppt 25ppt 205% - 329% - 204% - 461% - 226% - 204% -
EPS*(NT$) 0.35 0.12 (0.39)	192% -
EBITDA 1,171 761 (237) Weighted Avg Outstanding Million Shares 1,763 1,756 1,749

Unit: NTD Million (except EPS)�
2017/Q2
2017/Q1
2016/Q2
Net Sales
6,563
6,610
5,181
Gross Profit
2,216
1,815
707
Gross Margin%
34%
27%
14%
Operating Expenses
(1,631)
(1,401)
(1,553)
Operating Income
585
414
(846)
Operating Margin%
9%
6%
(16%)
Net Non-Operating Income (Loss)
37
(210)
11
Income Before Taxes
622
204
(835)
Income Taxes Expense (benefit)
6
1
(144)
Net Income
616
203
(691)
Other Comprehensive Income
107
19
(134)
Comprehensive Income
723
222
(825)
Net Income(Loss) Attributable to :
Shareholders of the Parent
616
203
(689)
NoncontrollingInterests
(0)
(0)
(2)

QoQ
YoY
Change
Change
(1%)
27%
22%
214%
7ppt
20ppt
16%
5%
41%
-
3ppt
25ppt
205%
-
329%
-
204%
-
461%
-
226%
-
204%
-

EPS*(NT$)
0.35
0.12
(0.39)

192%
-

EBITDA
1,171
761
(237)
Weighted Avg Outstanding Million Shares
1,763
1,756
1,749

*EPS are retro-adjusted because of capital reduction

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2017Q2 Financial Highlights

2017Q2 Sales = NTD 6,563M +27% YoY

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Sales
NTD M
10,000
24,125M
8,000
6,000
4,000
2,000
0
16Q1 Q2 Q3 Q4 17Q1 17Q2
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Gross Profit
NTD M
5,836M
2,000
1,000
0
16Q1 Q2 Q3 Q4 17Q1 17Q2
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2017Q2 Financial Highlights

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2017Q2 2016Q2
Gross Margin (%) 34% 14%
EPS -- NT$ 0.35 (0.39)
EPS
Gross Margin (%)
(retro-adjusted)
GM% NTD (0.14)
40%
32% 34%
0.60
31%
0.35
27% 0.41
0.36
0.30
0.12
20%
15% 14%
0.00
16Q1 Q2 Q3 Q4 17Q1 Q2
(0.30)
(0.39)
0%
(0.60) (0.52)
16Q1 Q2 Q3 Q4 17Q1 Q2
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Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million

Unit: NTD Million
	2017/06/30	2017/03/31
Cash	5,406	6,062
Inventory(Net)	9,075	7,384
Property, Plant and Equipment	15,204	15,574
Total Assets	36,980	35,851
Interest bearing debt - short term	7,822	4,119
Interest bearing debt - long term	1,215	6,058
Total Liabilities	17,591	17,243
Shareholders' Equity	19,389	18,608
Debt Ratio (%)	47.6%	48.1%
Book Value(retro-adjusted) -- NT$	10.75	10.31
Quarterly Highlight	2017/Q2	2017/Q1
Depreciation & Amortization	492	499
Capital Expenditures	(122)	(563)
Cash Flow from Operating	608	487

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

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8,000
6,000 11% 11%
QoQ YoY
11% Change Change
4,000 58% NAND +4% +25%
63%
NOR +9% +21%
66%
ROM -29% +103%
FBG +15% -13%
2,000
FBG (foundry business group)
23%
17%
10%
13%
8% 9%
0
2016Q2 2017Q1 2017Q2
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Quarterly Quantity Breakdown by Products (Parent Company)

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Unit : Million
800
4%
6%
600
QoQ YoY
Change Change
8%
NAND -37% -25%
400
94% NOR +6% +50%
92%
ROM -4% +107%
91%
200 FBG +27% -3%
Equivalent 8” WF base for FBG
(foundry business group)
1% 2% 2%
0
2016Q2 2017Q1 2017Q2
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Agenda

Welcome

Welcome C.Y. Lu 2017Q2 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

Density shipment index: 2013Q1 =100

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1,064
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800

400

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517
478
365 374
352
285
267
168 [200]
149
115 126 118
100 102 93
82
13Q1 Q2 Q3 Q4 14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2
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1,200

Current status of ROM memory business

 ROM business

≥ 64Gb products represented 25% of ROM business in 2017Q2
With similar quantity shipment, Q2 revenue is sequential lower because of different product/density mix

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NTD % ≦ 4Gb 8Gb 16Gb 32Gb 64Gb ≧ 128Gb
100%
10%
18%
28%
15%
80%
44%
54%
25%
67%
60% 28%
51%
20%
40%
36% 13%
18%
12% 19%
21%
20% 7%
26% 7% 7%
21% 5% 21%
4%
10%
7% 6%
0%
16Q1 Q2 Q3 Q4 17Q1 Q2
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Business update – NOR equivalent density shipment

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Density shipment index: 2013Q1 =100
200 190
182
180 179
171 169
161
151 151 150
134 135 134
128
125
119
113
100
100
0
13Q1 Q2 Q3 Q4 14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2
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Current status of NOR memory business

 NOR flash business

≤75nm products represented 50% of NOR business in 2017Q2
Allocation is the key theme for NOR business
Strong demand for each density and application

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≤ 55 nm
NOR (by tech & sales) ≤ 75 nm
NTD % ≧ 0.10μm
100% 1% 1% 1% 2% 2% 1% 3%
39%
80%
42% 46% 43% 46%
46% 49% 48% 49%
60%
40%
61%
58% 53% 50% 53% 55% 50% 53% 48%
20%
0%
16Q1 Q2 Q3 Q4 17Q1 Q2 2015 2016 2017 (E)
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NOR global market share
37% Macronix
Peer A
33%
Peer B
26%
22%
17%
4%
08' 09' 10' 11' 12' 13' 14' 15' 16' 17Q1
Source: iHS, Macronix
Speedy growth in automotive segment
Revenue
H1
2011 2012 2013 2014 2015 2016 2017
(F)
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Revenue
2500
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Business update – NOR flash breakdown

2017Q2 NOR Revenue breakdown

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Consumer,
29%
Comm, 32%
Computer,
22%
I.M.A., 7% Auto , 10%
Comm: including handsets
I (Industrial), M (Medical), A (Aerospace-defense)
2017Q2 NOR Qty breakdown
Computer Consumer Communication Automotive
QTY. -9% QoQ +2% QoQ +15% QoQ -11% QoQ
(M ea)
+31% YoY +29% YoY +111% YoY +11% YoY
300 300 300 100
150 150 150 50
0 0 0 0
2017Q1 2017Q2 2017Q1 2017Q2 2017Q1 2017Q2 2017Q1 2017Q2
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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

Design-wins in 2016 result in the increased revenue and market share in 2017 and the future
NAND business is also in allocation mode

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Accumulative design-win
case count of 36nm
400 362
320
300 280
227
200
123
100
49
0
2016Q1 Q2 Q3 Q4 2017Q1 Q2
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SLC NAND Flash equivalent density shipment

2017Q2 NAND

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Total density (Tb)
300,000
Density shipment index: 36 nm Revenue breakdown
2016Q1 =100
75 nm
Index
200,000
500
120,000 Consumer, Comm, 56%
100,000 35%
279 276
250 225 241 199 80,00060,000 100,000 Others, 9%
100 40,000
20,000
0 0 0
16Q1 Q2 Q3 Q4 17Q1 Q2
2015 2016 2017 (E)
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Revised 2017 capex plan

 Prudent investment in production capacity

Utilization is still at high level
With just approved of NT$ 1,785M capex, revised 2017 capex plan is ~NT$ 4B for more advanced technology capacity

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Agenda

Welcome

Welcome C.Y. Lu 2017Q2 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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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_2017-08-25_dae9d0ec-e6fe-4b71-b5c6-2abb78327c78.pdf

Macronix International Co., Ltd. Second Quarter 2017 Results July 24, 2017

Disclaimer

Agenda

Welcome

Financial Highlights

Agenda

Welcome

Quarterly Consolidated Statements of Comprehensive Income

2017Q2 Financial Highlights

2017Q2 Financial Highlights

Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million

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

Density shipment index: 2013Q1 =100

Current status of ROM memory business

 ROM business

Business update – NOR equivalent density shipment

Current status of NOR memory business

 NOR flash business

Business update – NOR flash breakdown

2017Q2 NOR Revenue breakdown

Business update – SLC NAND breakdown & outlook

 SLC NAND flash business

SLC NAND Flash equivalent density shipment

2017Q2 NAND

 Prudent investment in production capacity

Agenda

Welcome

AI assistant

Macronix — Interim / Quarterly Report 2017

52013_rns_2017-08-25_dae9d0ec-e6fe-4b71-b5c6-2abb78327c78.pdf

Macronix International Co., Ltd. Second Quarter 2017 Results July 24, 2017

Disclaimer

Agenda

Welcome

Financial Highlights

Agenda

Welcome

Quarterly Consolidated Statements of Comprehensive Income

2017Q2 Financial Highlights

2017Q2 Financial Highlights

Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million

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

Density shipment index: 2013Q1 =100

Current status of ROM memory business

 ROM business

Business update – NOR equivalent density shipment

Current status of NOR memory business

 NOR flash business

Business update – NOR flash breakdown

2017Q2 NOR Revenue breakdown

Business update – SLC NAND breakdown & outlook

 SLC NAND flash business

SLC NAND Flash equivalent density shipment

2017Q2 NAND

 Prudent investment in production capacity

Agenda

Welcome

More from Macronix

Macronix Interim / Quarterly Report 2017