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Macronix Interim / Quarterly Report 2018

Sep 4, 2018

52013_rns_2018-09-04_4d02205b-3ac0-4af4-9f5a-6758ba2ae636.pdf

Interim / Quarterly Report

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Macronix International Co., Ltd. Second Quarter 2018 Results July 26, 2018

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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.

Agenda

Welcome

2018Q2 Financial Results Business Update Remarks and Q&A

Copyright © Macronix International Co., Ltd.

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

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Financial Highlights

2018Q2 2018Q1 2017Q2 Actual Actual Actual Revenue NT$ 8.9B NT$ 9.1B NT$ 6.6B Gross margin % 45% 42% 34% Operating margin % 24% 22% 9%

Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome C.Y. Lu 2018Q2 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

Copyright © Macronix International Co., Ltd.

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Quarterly Consolidated Statements of Comprehensive Income

Unit: NTD Million (except EPS)�
2018/Q2
2018/Q1
2017/Q2
Net Sales
8,880
9,061
6,563
Gross Profit
4,031
3,814
2,216
Gross Margin%
45%
42%
34%
Operating Expenses
(1,894)
(1,819)
(1,632)
Operating Income
2,137
1,995
584
Operating Margin%
24%
22%
9%
Net Non-Operating Income (Loss)
196
(100)
38
Income Before Taxes
2,333
1,896
622
Income Taxes Expense (benefit)
6
14
6
Net Income
2,327
1,882
616
Other Comprehensive Income
(253)
(154)
107
Comprehensive Income
2,074
1,728
723
Net Income(Loss) Attributable to :
Shareholders of the Parent
2,327
1,882
616
NoncontrollingInterests
0
(0)
(0)
QoQ
YoY
Change
Change
(2%)
35%
6%
82%
3ppt
11ppt
4%
16%
7%
266%
2ppt
15ppt
-
-
23%
275%
-
-
24%
278%
-
-
20%
187%
24%
278%
Basic EPS*(NT$)
1.30
1.06
0.35
23%
271%
EBITDA
2,882
2,431
1,171
Weighted avg outstanding million shares
1,786
1,780
1,763

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Copyright © Macronix International Co., Ltd.

2018Q2 Financial Highlights

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Gross Margin (%)
50% 45%
43%
42%
38%
32% 34%
31%
27%
25%
15%
14%
0%
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2
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Copyright © Macronix International Co., Ltd.

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Annualized Return on Equity Performance

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40%
33%
29%
30%
26%
20%
20%
9%
10%
4%
0%
17Q1 Q2 Q3 Q4 18Q1 Q2
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Copyright © Macronix International Co., Ltd.

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Quarterly Consolidated Balance Sheet / Cash Position

Unit: NTD Million (except BV) 2018/06/30 2018/03/31 2017/06/30
Cash 11,237 10,251 5,406
Inventory(Net) 14,297 11,228 9,075
Property, Plant and Equipment 17,934 17,056 15,204
Total Assets 53,251 48,300 36,980
Debt Ratio (%) 49.1% * 44.5%
47.6%
Book Value -- NT$ 15.03 14.87 10.75
Quarterly Highlight 2018/Q2 2018/Q1 2017/Q2
Depreciation & Amortization 514 496 492
Capital Expenditures (834) (1,496) (122)
Cash Flow from Operating 2,622 2,129 608
  • If cash dividends payable NTD1.8B is excluded, debt ratio will be 47.3%

Copyright © Macronix International Co., Ltd.

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Quarterly Sales Breakdown by Products

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12,000
9,000
6,000
3,000
0
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QoQ YoY
Change Change
70%
74%
Flash +4% +35%
ROM -24% +44%
75%
FBG +9% +26%
FBG (foundry business group)
22%
17%
16%
9% 8% 9%
2017Q2 2018Q1 2018Q2
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Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome C.Y. Lu 2018Q2 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

Copyright © Macronix International Co., Ltd.

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Business update - ROM

ROM business

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≥ 64Gb products represented 47% of ROM business in 2018Q2
2,000
Density shipment index: 2014Q1 =100
1,756
1,417
1,121
927
1,000
753
451
416
318 307 326
174
147
100 89 110 72 103 81
0
14Q1 Q2 Q3 Q4 15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2
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Copyright © Macronix International Co., Ltd.

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Business update – Flash

Density shipment index: 2015Q1 =100

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600
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506
443
386 377
346 342
309
289
271
186
158
141 141
100
0
15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2
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300
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Copyright © Macronix International Co., Ltd.

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Current status of Flash memory business

Flash business

  • ≤75nm products increased to 60% of NOR sales in 18Q2

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Accumulative design-win case count
3600 3,232
2,301
1,865
1800
1,365
749
347
0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2
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Copyright © Macronix International Co., Ltd.

Business update – NOR flash breakdown (Parent Company)

2018Q2 NOR Revenue breakdown

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Consumer,
Comm,
21%
28%
Computer,
25%
Auto , 12%
I.M.A.,
14%
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*** Comm:** including handsets

  • I (Industrial), M (Medical), A (Aerospace-defense)

Computer Consumer +34% QoQ -9% QoQ +15% YoY -25% YoY

Communication Automotive +4% QoQ +2% QoQ -8% YoY +25% YoY

Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome C.Y. Lu 2018Q2 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

Copyright © Macronix International Co., Ltd.

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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]