Macronix — Interim / Quarterly Report 2020

May 27, 2020

Macronix International Co., Ltd. First Quarter 2020 Results April 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

2020Q1 Financial Results Business Update Remarks and Q&A

Copyright © Macronix International Co., Ltd.

Miin Wu Paul Yeh Miin Wu Miin Wu

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Financial Highlights

	2020Q1	2019Q4	2019Q1
	Reviewed	Audited	Reviewed
Revenue	NT$ 9.4B	NT$ 9.6B	NT$ 6.0B
Gross margin %	31%	26%	25%
Operating margin %	12%	8%	1%

Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome Miin Wu 2020Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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/Q1 Reviewed 2019/Q4 Audited 2019/Q1 Reviewed	QoQ Change YoY Change (2%) 56% 18% 92% 5ppt 6ppt 2% 23% 53% 1,262% 4ppt 11ppt - - 106% 751% - - 62% 762% - - (21%) 93% 62% 761%
	9,415 9,581 6,029 2,945 2,506 1,531 31.3% 26.2% 25.4% (1,779) (1,744) (1,446) 1,166 762 86 12% 8% 1% 60 (168) 59 1,226 594 144 4 (160) 2 1,222 754 142 (589) 50 186 633 803 328 1,222 754 142 (0) 0 (0)
Basic EPS(NT$)	0.67 0.41 0.08	63% 738%
EBITDA Weighted avg outstanding million shares	2,104 1,405 810 1,838 1,836 1,830

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Copyright © Macronix International Co., Ltd.

2020Q1 Financial Highlights

2020Q1 Sales = NTD 9,415M -2% QoQ +56% YoY

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Sales 34,995M
NTD M
12,000
9,000
6,000
3,000
0
19Q1 Q2 Q3 Q4 20Q1
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Gross Profit
9,615M
NTD M
4,500
3,000
1,500
0
19Q1 Q2 Q3 Q4 20Q1
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2020Q1 Financial Highlights

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2020Q1 2019Q4
Gross Margin (%) 31% 26%
Basic EPS -- NT$ 0.67 0.41
Basic EPS
Gross Margin (%)
(retro-adjusted)
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GM% NTD
50% 43% 42% [45%] 2.0
1.64
38%
35%
34%
31%
27%
28% 25% 27% [30%] 26%
1.01
25% 1.0
0.67
0.41
0.08
0.14
0%
0.0
17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1
19Q1 Q2 Q3 Q4 20Q1
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Copyright © Macronix International Co., Ltd.

Quarterly Consolidated Condensed Balance Sheet / Cash Flow

Unit: NTD Million (except BV)	2020/03/31 Reviewed	2019/12/31 Audited	2019/03/31 Reviewed
Cash	9,059	8,725	11,064
Inventory(Net)	10,776	12,810	18,475
Property, Plant and Equipment	29,021	29,366	21,931
Total Assets	58,644	60,657	60,133
Interest bearing debt - short term	3,276	4,817	3,621
Interest bearing debt - long term	10,620	9,774	5,411
Total Liabilities	25,435	28,164	28,438
Shareholders' Equity	33,210	32,493	31,695
Debt Ratio (%)	43.4%	46.4%	47.3%
Book Value -- NT$	18.07	17.68	17.24
Quarterly Highlight	2020/Q1	2019/Q4	2019/Q1
Depreciation & Amortization	823	755	624
Capital Expenditures	(849)	(1,722)	(2,603)
Cash Flow from Operating	1,876	3,017	249

Copyright © Macronix International Co., Ltd.

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

12,000

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9,000 9% 11%
43% QoQ YoY
45%
Change Change
6,000
15%
NAND [+24% ] +20%
NOR +6% +26%
56%
ROM -11% +183%
3,000
43% 38% FBG +13% +24%
FBG (foundry business group)
21%
8% 5% 6%
0
2019Q1 2019Q4 2020Q1
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Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome Miin Wu 2020Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

Copyright © Macronix International Co., Ltd.

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Business update - ROM

 ROM business

• ≥ 64Gb products represented 76% of ROM business in 2020Q1

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3,784
Density shipment index: 2016Q1 =100
2,477
2,414
2,013
1,923
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
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4,000 Density shipment index: 2016Q1 =100

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2,000
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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
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
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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 20Q1

6,000

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3,000
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Accumulative design-win case count
4,068 [4,246 4,467 4,703 4,872 ]
3,728
3,170
2,676
1,624 [1,862 ][2,021 2,239 ]
1,375
1,139
756
349
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5,047
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16Q1 Q2 Q3 Q4 17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1
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0

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%	(
	48%		50%		47%
							52%
									48%
											44%
													45%
															43%
																			40%
																	42%				40%
																							38%		41%
	40%				40%
			38%
											34%
							32%		33%				32%		32%
																			31%		30%
																	28%
																							26%
																									23%

Copyright © Macronix International Co., Ltd.

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Business update – NOR flash breakdown (Parent Company)

2019Q4 NOR revenue breakdown 2020Q1 NOR revenue breakdown

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Consumer, Comm,
18% 34%
Computer,
23%
I.M.A., Auto , 14%
11%
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Consumer, Comm,
16% 37%
Computer,
20%
Auto , 14%
I.M.A.,
13%
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*** Comm:** including handsets

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

2020Q1 NOR revenue comparison

Computer -6% QoQ +20% YoY

Consumer Communication Automotive I.M.A -10% QoQ +9% QoQ +3% QoQ +25% QoQ +11% YoY +44% YoY +14% YoY +27% YoY

Copyright © Macronix International Co., Ltd.

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Agenda

Welcome

Welcome Miin Wu 2020Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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