Macronix — Interim / Quarterly Report 2020

Aug 10, 2020

Macronix International Co., Ltd. Second Quarter 2020 Results July 29, 2020

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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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Copyright © Macronix International Co., Ltd.

Agenda

Welcome

2020Q2 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

2020Q2 2020Q1 2019Q2 Bn: billion Reviewed Reviewed Reviewed Revenue NT$ 9.3 Bn NT$ 9.4 Bn NT$ 7.5 Bn Gross margin % 35% 31% 27% Operating margin % 15% 12% 6%

Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome C.Y. Lu 2020Q2 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) Net Sales Gross Profit Gross Margin% Operating Expenses Operating Income Operating Margin% Net Non-Operating Income (Loss) Income Before Taxes Income Taxes Expense (benefit) Net Income Other Comprehensive Income Comprehensive Income Net Income(Loss) Attributable to : Shareholders of the Parent NoncontrollingInterests	2020/Q2 Reviewed 2020/Q1 Reviewed 2019/Q2 Reviewed	QoQ Change YoY Change (1.5%) 24.0% 10% 62% 4ppt 8ppt 4% 21% 19% 194% 3ppt 9ppt - - 14% 225% - - 9% 403% - - 198% 561% 9% 405%
	9,271 9,415 7,479 3,243 2,945 2,003 35.0% 31.3% 27% (1,850) (1,779) (1,530) 1,393 1,166 473 15% 12% 6% 8 60 (43) 1,400 1,226 430 71 4 166 1,330 1,222 264 560 (589) 22 1,890 633 286 1,330 1,222 264 (0) (0) 1
Basic EPS(NT$)	0.72 0.67 0.14	7% 414%
EBITDA Weighted avg outstanding million shares	2,394 2,104 1,134 1,838 1,838 1,830

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Copyright © Macronix International Co., Ltd.

2020Q2 Financial Highlights

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2020Q2 Sales = NTD 9,271M
-2% QoQ
+24% YoY
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Sales 34,995M
NTD M
12,000
9,000
6,000
3,000
0
19Q1 Q2 Q3 Q4 20Q1 Q2
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Gross Profit
NTD M
4,500
9,615M
3,000
1,500
0
19Q1 Q2 Q3 Q4 20Q1 Q2
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2020Q2 Financial Highlights

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2020Q2 2020Q1
Gross Margin (%) 35% 31%
Basic EPS -- NT$ 0.72 0.67
Gross Margin (%) Basic EPS
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GM% NTD
2.0
50%
43%
42% [45%]
38% 1.64
35% 35%
34%
31%
28%
27% 27% [30%]
26%
25% 1.01
25% 1.0 0.67 0.72
0.41
0.08
0.14
0% 0.0
17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2 19Q1 Q2 Q3 Q4 20Q1 Q2
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Copyright © Macronix International Co., Ltd.

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Quarterly Consolidated Condensed Balance Sheet / Cash Flow

Unit: NTD Million (except BV)	2020/06/30 Reviewed	2020/03/31 Reviewed	2019/06/30 Reviewed
Cash	9,890	9,059	11,520
Inventory(Net)	11,518	10,776	18,867
Property, Plant and Equipment	29,639	29,021	24,728
Total Assets	60,893	58,644	65,480
Interest bearing debt - short term	3,711	3,276	3,668
Interest bearing debt - long term	9,584	10,620	9,370
Total Liabilities	27,918	25,435	35,702
Shareholders' Equity	32,975	33,210	29,779
Debt Ratio (%)	45.8%	43.4%	54.5%
Book Value -- NT$	17.78	18.07	16.20
Quarterly Highlight	2020/Q2	2020/Q1	2019/Q2
Depreciation & Amortization	935	823	657
Capital Expenditures	(894)	(849)	(4,216)
Cash Flow from Operating	2,255	1,876	396

Copyright © Macronix International Co., Ltd.

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

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12,000
9,000 11%
11%
11%
QoQ YoY
6,000 45% 48% Change Change
NAND -9% +17%
52%
NOR +2% +14%
ROM -11% +44%
3,000
38% 34% FBG +11% +5%
29%
FBG (foundry business group)
8% 6% 7%
0
2019Q2 2020Q1 2020Q2
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Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome C.Y. Lu 2020Q2 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 73% of ROM business in 2020Q2
3,784
4,000
Density shipment index: 2016Q1 =100
2,477
2,414
2,013
1,923
1,774
2,000 1,701
1,372
1,225
1,086
898
730 694
436 403
316
100 79
0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2
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Copyright © Macronix International Co., Ltd.

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Business update –NOR Flash

Density shipment index: 2016Q1 =100

200

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157
148
146
135
130 127
127
121
120 119
113 112
106
100
100
95 95
100 93
0
16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2
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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 74% of NOR sales in 20Q2

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6,000
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3,000
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Accumulative design-win case count 5,586
4,872 [5,047 ]
4,068
2,239
1,375
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0
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16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2
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Copyright © Macronix International Co., Ltd.

Business update – NOR flash breakdown (Parent Company)

NTD %

NOR breakdown b densit y y

	12%		12%		13%		16%		19%		22%		23%		25%		30%		29%		30%		36%		36%		39%	(
	48%		50%		47%
							52%
									48%
											44%		45%
															43%
																	42%		40%		40%
																							38%		41%
																											36%
	40%				40%
			38%
									33%		34%
							32%						32%		32%				31%
																					30%
																	28%
																							26%
																											25%
																									23%

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Copyright © Macronix International Co., Ltd.

Business update – NOR flash breakdown (Parent Company)

2020Q1 NOR revenue breakdown 2020Q2 NOR revenue breakdown

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Consumer, Comm, Consumer, Comm,
16% 37% 13% 38%
Computer,
Computer,
20%
Auto , 14% 24%
I.M.A., Auto , 11%
I.M.A.,
13%
14%
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*** Comm:** including handsets

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

2020Q2 NOR revenue comparison

Computer

+15% QoQ +18% YoY

Consumer Communication Automotive I.M.A -21% QoQ +5% QoQ -19% QoQ +8% QoQ -25% YoY +26% YoY -5% YoY +37% YoY

Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome C.Y. Lu 2020Q2 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 ir@mxic.com.tw