Macronix International Co., Ltd. Fourth Quarter 2018 Results January 24, 2019

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Safe Harbor Statement

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

2018Q4 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

2018Q4 Pro Forma * 2018Q4 2018Q3 2017Q4 Revenue NT$ 9.0B NT$ 9.0B NT$ 10.0B NT$ 10.6B Gross margin % 30% 28% 35% 43% Operating margin % 12% 7% 18% 25%

*Intellectual property rights income is excluded

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Financial Highlights

2018 2018 2017 Pro Forma *

Revenue NT$ 37.0B NT$ 37.0B NT$ 34.2B Gross margin % 38% 38% 37% Operating margin % 19% 18% 17%

*Intellectual property rights income is excluded

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Agenda

Welcome

Welcome C.Y. Lu 2018Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Quarterly Consolidated Statements of Comprehensive Income

Unit: NTD Million (except EPS)� 2018/Q4 2018/Q3 2017/Q4 Net Sales 8,981 10,030 10,557 Gross Profit 2,535 3,546 4,582 Gross Margin% 28% 35% 43% Operating Expenses (1,921) (1,783) (1,926) Operating Income 614 1,763 2,656 Operating Margin% 7% 18% 25% Net Non-Operating Income (Loss) 2,504 155 (74) Income Before Taxes 3,118 1,918 2,582 Income Taxes Expense (benefit) 250 2 7 Net Income 2,867 1,916 2,576 Other Comprehensive Income (596) 60 343 Comprehensive Income 2,271 1,976 2,919 Net Income(Loss) Attributable to : Shareholders of the Parent 2,867 1,916 2,576 NoncontrollingInterests (0) 0 (0)	QoQ YoY Change Change (10%) (15%) (29%) (45%) (7ppt) (15ppt) 8% (0%) (65%) (77%) (11ppt) (18ppt) - - 63% 21% - - 50% 11% - - 15% (22%) 50% 11%
Basic EPS(NT$) 1.57 1.05 1.42 *	50% 11%
EBITDA 3,730 2,486 3,126 Weighted avg outstanding million shares 1,822 1,822 1,812

Unit: NTD Million (except EPS)�
2018/Q4
2018/Q3
2017/Q4
Net Sales
8,981
10,030
10,557
Gross Profit
2,535
3,546
4,582
Gross Margin%
28%
35%
43%
Operating Expenses
(1,921)
(1,783)
(1,926)
Operating Income
614
1,763
2,656
Operating Margin%
7%
18%
25%
Net Non-Operating Income (Loss)
2,504
155
(74)
Income Before Taxes
3,118
1,918
2,582
Income Taxes Expense (benefit)
250
2
7
Net Income
2,867
1,916
2,576
Other Comprehensive Income
(596)
60
343
Comprehensive Income
2,271
1,976
2,919
Net Income(Loss) Attributable to :
Shareholders of the Parent
2,867
1,916
2,576
NoncontrollingInterests
(0)
0
(0)

QoQ
YoY
Change
Change
(10%)
(15%)
(29%)
(45%)
(7ppt)
(15ppt)
8%
(0%)
(65%)
(77%)
(11ppt)
(18ppt)
-
-
63%
21%
-
-
50%
11%
-
-
15%
(22%)
50%
11%

Basic EPS(NT$)
1.57
1.05
1.42
*

50%
11%

EBITDA
3,730
2,486
3,126
Weighted avg outstanding million shares
1,822
1,822
1,812

*EPS is retro-adjusted

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Quarterly Consolidated Statements of Comprehensive Income

Unit: NTD Million (except EPS)�	2018/Q4		2018/Q4
	Pro Forma	*
Net Sales	8,981		8,981
Gross Profit	2,732		2,535
Gross Margin%	30%		28%
Operating Expenses	(1,698)		(1,921)
Operating Income	1,034		614
Operating Margin%	12%		7%
Net Non-Operating Income (Loss)	30		2,504
Income Before Taxes	1,065		3,118
Income Taxes Expense (benefit)	3		250
Net Income	1,062		2,867
Basic EPS (NT$)	0.58		1.57
EBITDA	1,676		3,730

*Intellectual property rights income is excluded

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Annual Consolidated Statements of Comprehensive Income

Unit: NTD Million (except EPS) 2018 2017 Net Sales 36,953 34,197 Gross Profit 13,926 12,635 Gross Margin% 38% 37% Operating Expenses (7,417) (6,882) Operating Income 6,509 5,753 Operating Margin% 18% 17% Net Non-Operating Income (Loss) 2,755 (217) Income Before Taxes 9,264 5,536 Income Taxes Expense (benefit) 272 19 Net Income 8,993 5,517 Other Comprehensive Income (943) 607 Comprehensive Income 8,050 6,124 Net Income(Loss) Attributable to : Shareholders of the Parent 8,993 5,518 NoncontrollingInterests (0) (1)	YoY Change 8% 10% 1ppt 8% 13% 1ppt - 67% - 63% - 31% 63% -
Basic EPS -- NT$ 4.94 3.06 ****	-
EBITDA 11,528 7,724 Weighted average outstanding million shares 1,822 1,801

Unit: NTD Million (except EPS)
2018
2017
Net Sales
36,953
34,197
Gross Profit
13,926
12,635
Gross Margin%
38%
37%
Operating Expenses
(7,417)
(6,882)
Operating Income
6,509
5,753
Operating Margin%
18%
17%
Net Non-Operating Income (Loss)
2,755
(217)
Income Before Taxes
9,264
5,536
Income Taxes Expense (benefit)
272
19
Net Income
8,993
5,517
Other Comprehensive Income
(943)
607
Comprehensive Income
8,050
6,124
Net Income(Loss) Attributable to :
Shareholders of the Parent
8,993
5,518
NoncontrollingInterests
(0)
(1)

YoY
Change
8%
10%
1ppt
8%
13%
1ppt
-
67%
-
63%
-
31%
63%
-

Basic EPS -- NT$ 4.94
3.06
****

EBITDA
11,528
7,724
Weighted average outstanding million shares
1,822
1,801

*EPS is retro-adjusted

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Gross margin trend

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Gross Margin (%)
50% 45%
43%
42%
38%
35%
32% 34%
31%
27% 28%
25%
15%
14%
0%
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4
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Annualized Return on Equity Performance

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40%
33%
32%
30%
29%
30%
26%
20%
20%
9%
10%
4%
0%
17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4
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Quarterly Consolidated Condensed Balance Sheet / Cash Flow

Unit: NTD Million (except BV)	2018/12/31	2018/09/30	2017/12/31
Cash	13,589	10,502	8,633
Inventory(Net)	17,949	17,160	9,872
Property, Plant and Equipment	19,309	18,389	16,259
Total Assets	59,049	56,907	44,194
Interest bearing debt - short term	3,335	1,986	3,179
Interest bearing debt - long term	5,885	7,504	4,860
Total Liabilities	27,688	27,826	19,538
Shareholders' Equity	31,360	29,081	24,656
Debt Ratio (%)	46.9%	48.9%	44.2%
Book Value -- NT$	17.06	15.82	13.68
Quarterly Highlight	2018/Q4	2018/Q3	2017/Q4
Depreciation & Amortization	576	534	493
Capital Expenditures	(1,151)	(1,381)	(879)
Cash Flow from Operating	4,280	1,061	3,969

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Consolidated Condensed Balance Sheet / Cash Flow

Unit: NTD Million (except Book value)	2018/12/31	2017/12/31
Cash	13,589	8,633
Inventory(Net)	17,949	9,872
Property, Plant and Equipment	19,309	16,259
Total Assets	59,049	44,194
Interest bearing debt - short term	3,335	3,179
Interest bearing debt - long term	5,885	4,860
Total Liabilities	27,688	19,538
Shareholders' Equity	31,360	24,656
Debt Ratio (%)	46.9%	44.2%
Book Value -- NT$	17.06	13.68
Annually Highlight	2018	2017
Depreciation & Amortization	2,120	1,972
Capital Expenditures	(4,862)	(2,220)
Cash Flow from Operating	10,092	7,034

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Quarterly Sales Breakdown by Products (Parent Company)

12,000

9,000 QoQ YoY 68% 55% 51% Change Change 6,000 Flash -17% -36% ROM +1% +50% FBG -23% -35% 3,000 * FBG (foundry business group) 39% 44% 25% 7% 6% 5% 0 2017Q4 2018Q3 2018Q4

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Annual Sales Breakdown by Products (Parent Company)

Unit: NTD Million

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40,000
YoY
30,000
Change
62%
68% Flash +0%
20,000
ROM +33%
FBG +1%
10,000
FBG (foundry business group)
25% 31%
7% 7%
0
2017 2018
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Agenda

Welcome

Welcome C.Y. Lu 2018Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Business update - ROM

 ROM business

• ≥ 64Gb products represented 72% of ROM business in 2018Q4

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3,000
Density shipment index: 2014Q1 =100
2,558
1,986
2,000 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 Q3 Q4
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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
271 257
266
186
158
141 141
100
0
15Q1 Q2 Q3 Q4 16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4
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300

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Current status of Flash memory business

 Flash business

• ≤75nm products increased to 63% of NOR sales in 18Q4

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5,000
Accumulative design-win case count 4,068
3,728
2,676
3,170
2,500 2,021
1,624
2,239
1,139
1,862
1,375
349
756
0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4
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Copyright © Macronix International Co., Ltd. 18
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Business update – NOR flash breakdown (Parent Company)

NTD % NOR breakdown b densit y y

12%	12%	13%	16%		19%	22%	23%	25%
48%	50%	47%
			52%
					48%
						44%
							45%
								43%
40%		40%
	38%
						34%
			32%		33%		32%	32%
				19 18Q1 Q2

Business update – NOR flash breakdown (Parent Company)

2017Q4 NOR revenue breakdown

2018Q4 NOR revenue breakdown

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Consumer,
27% Comm,
31%
Computer,
22%
Auto , 10%
I.M.A.,
10%
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Consumer, Comm,
19% 32%
Computer,
24%
I.M.A., Auto , 13%
12%
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* Comm: including handsets

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

2018Q4 NOR revenue comparison

Computer Consumer -12% QoQ -23% QoQ -21% YoY -48% YoY

Communication -10% QoQ -25% YoY

Automotive -16% QoQ -3% YoY

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Business update – NOR flash breakdown (Parent Company)

2017 NOR revenue breakdown

2018 NOR revenue breakdown

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Consumer, Consumer, Comm,
29% Comm, 31% 21% 30%
Computer,
Computer,
23% Auto , 13%
22%
I.M.A.,
Auto, 10%
I.M.A, 8% 13%
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* Comm: including handsets

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

2018 NOR revenue comparison

Computer Consumer

-6% YoY

-32% YoY

Communication Automotive -13% YoY +14% YoY

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Agenda

Welcome

Welcome C.Y. Lu 2018Q4 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 2018

52013_rns_2019-01-24_bdf48d1f-7b44-4d61-b314-e68da454218f.pdf

Macronix International Co., Ltd. Fourth Quarter 2018 Results January 24, 2019

Safe Harbor Statement

Agenda

Welcome

Financial Highlights

*Intellectual property rights income is excluded

Financial Highlights

Agenda

Welcome

Quarterly Consolidated Statements of Comprehensive Income

Annual Consolidated Statements of Comprehensive Income

Gross margin trend

Annualized Return on Equity Performance

Quarterly Consolidated Condensed Balance Sheet / Cash Flow

Consolidated Condensed Balance Sheet / Cash Flow

Quarterly Sales Breakdown by Products (Parent Company)

Annual Sales Breakdown by Products (Parent Company)

Unit: NTD Million

Agenda

Welcome

Business update - ROM

 ROM business

• ≥ 64Gb products represented 72% of ROM business in 2018Q4

Business update – Flash

Density shipment index: 2015Q1 =100

Current status of Flash memory business

 Flash business

• ≤75nm products increased to 63% of NOR sales in 18Q4

Business update – NOR flash breakdown (Parent Company)

NTD % NOR breakdown b densit y y

Business update – NOR flash breakdown (Parent Company)

2017Q4 NOR revenue breakdown

2018Q4 NOR revenue breakdown

*** Comm:** including handsets

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

2018Q4 NOR revenue comparison

Business update – NOR flash breakdown (Parent Company)

2017 NOR revenue breakdown

2018 NOR revenue breakdown

*** Comm:** including handsets

2018 NOR revenue comparison

Agenda

Welcome

More from Macronix

Macronix Interim / Quarterly Report 2018

* Comm: including handsets

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

* Comm: including handsets