Macronix — Interim / Quarterly Report 2022

Oct 25, 2022

Macronix International Co., Ltd. Third Quarter 2022 Results October 25, 2022

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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 from those or materially expressed 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. 1
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A enda g

Welcome

Welcome Miin Wu 3Q22 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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3Q22 Financial Highlights

	3Q22	2Q22	3Q21	3Q21
	Reviewed	Reviewed	Reviewed	Pro Forma*
Revenue (billion NT$)	NT$ 11.5	NT$11.3	NT$ 15.0
Gross	44.2%	48.2%	42.9%	44.1%
margin %
Operating	21.1%	26.3%	23.4%	26.2%
margin %

Note ： *Excluding all effects of disposal of 6” fab

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Copyright © Macronix International Co., Ltd. 3
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Welcome

Welcome Miin Wu 3Q22 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Quarterly Financial Results

Unit：NTD Million (except EPS) 3Q22 Reviewed 2Q22 Reviewed 3Q21 Reviewed Net Sales 11,472 11,340 14,974 Gross Profit 5,072 5,465 6,421 Gross Margin% 44.2% 48.2% 42.9% Operating Expenses (2,655) (2,484) (2,924) Operating Income 2,417 2,980 3,497 Operating Margin% 21.1% 26.3% 23.4% Net Non-Operating Income (Loss) 423 409 2,625 Income Before Taxes 2,840 3,389 6,122 Income Taxes Expense (340) (454) (693) Net Income 2,500 2,935 5,430	QoQ Change YoY Change 1% (23%) (7%) (21%) (4.0ppt) 1.3ppt 7% (9%) (19%) (31%) (5.2ppt) (2.3ppt) (16%) (54%) (15%) (54%)
Basic EPS(NT$) 1.35 1.59 2.94
EBITDA 4,047 4,579 7,263 EBITDA % 35% 40% 49% Weighted avg outstanding million shares 1,849 1,849 1,844

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Stead Revenue with Hi her O eratin Mar in y g p g g

Unit：NTD Million (except EPS) '22 YTD Reviewed '21 YTD Reviewed '21 YTD Pro Forma* Net Sales 34,410 36,028 Gross Profit 16,141 14,187 Gross Margin% 46.9% 39.4% Operating Expenses (7,526) (7,217) Operating Income 8,615 6,970 Operating Margin% 25.0% 19.3% Net Non-Operating Income (Loss) 1,020 2,317 (188) Income Before Taxes 9,635 9,287 7,208 Income Taxes Expense (1,271) (1,016) (831) Net Income 8,365 8,271 6,377	YoY Change (4%) 14% 7.5ppt 4% 24% 5.7ppt 4% 1%	Pro Forma YoY 34% 31%
Basic EPS(NT$) 4.52 4.48 3.46

Note ： *Excluding all effects of disposal of 6” fab

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Stable Sales and Mar in Growths g

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Sales
2021
2022YTD
NTD M Margin%
2019 2020 50,573M
34,410M
16,000 34,995M 39,801M 14,974 80%
14,545
11,906
12,000 11,426 11,598 11,340 11,472 60%
10,957
10,158 9,627
9,581 9,415 9,271
48% 48%
47%
8,000 7,479 44% 40%
43%
6,029 39%
36%
35%
34%
32%
31%
30%
27%
4,000 25% 26% 20%
0 0%
1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
Net Sales Gross Margin%
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Risin Cor orate Value g p

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3Q22 3Q21
Basic EPS -- NT$ 1.35 2.94
Book Value -- NT$ 27.89 23.21
Basic EPS Book Value
4.52
4.48
NTD NTD
2.94 27.89
3.0 3.46
26.86
26.36
1.92 [] 25.20
2.00
2.0 25.0
1.59 23.21
1.58
NT$ 1.8 dividend
1.35
21.20
1.04
1.0
20.18
0.50
18.0
0.0
1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
Note ： [] Excluding all effects of disposal of 6” fab in Q3 2021
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Robust ROE (GAAP)

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40% Annualized ROE - Reported
29%
30%
25%
20%
16%
9%
10%
0%
2019 2020 2021 3Q22
(LTM)
100% Sales / Total Assets
71%
75%
63%
62%
58%
50%
2019 2020 2021 3Q22
(LTM)
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40% Net Income / Sales
24% 25%
20%
13%
9%
0%
2019 2020 2021 3Q22
(LTM)
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200% Total Assets / Total Equity
187%
184%
180%
172%
168%
160%
2019 2020 2021 3Q22
(LTM)
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Quarterly Consolidated Condensed Balance Sheet

Unit: NTD Million (except BV)	9/30/'22 Reviewed	6/30/'22 Reviewed	9/30/'21 Reviewed
Cash	19,493	20,078	15,152
Inventory(Net)	15,386	15,241	13,313
Property, Plant and Equipment	36,426	35,278	31,320
Total Assets	85,074	83,722	73,694
Interest bearing debt - short term	3,257	3,220	4,706
Interest bearing debt - long term	12,009	8,678	6,707
Total Liabilities	33,362	34,845	30,662
Debt Ratio (%)	39.2%	41.6%	41.6%
Shareholders' Equity	51,713	48,877	43,032
Book Value -- NT$	27.89	26.36	23.21

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Quarterly FCF with Disciplined Capex

Unit: NTD Million	3Q22 Reviewed	2Q22 Reviewed	3Q21 Reviewed
Cash Flow from Operating	1,960	4,090	4,217
Depreciation & Amortization	1,154	1,141	1,086
Cash Flow from Investing	(3,050)	(1,956)	636
Capital Expenditures	(3,050)	(2,126)	(1,198)
Cash Flow from Financing	85	(294)	(1,521)
Cash Dividends	(3,337)	-	-
Net Change*	(585)	1,545	(981)
EndingBalance	19,493	20,078	15,152
Free Cash Flow**	(1,090)	1,964	3,019

*Net change includes the effect of exchange rate changes

**Free Cash Flow=Cash Flow from Operating - Capital Expenditures

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Quarterly Sales Breakdown by Products (Parent Company)

Unit: NTD Million

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16,000
15%
12,000
9%
15%
52% QoQ YoY
Change Change
8,000
49%
NAND -37% -54%
58%
NOR -14% -26%
ROM +77% -12%
4,000
FBG +10% +35%
28% 32%
18% * FBG (Foundry Business Group)
5% 9% 10%
0
3Q21 2Q22 3Q22
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A enda g

Welcome

Welcome Miin Wu 3Q22 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Business U date - ROM p

 ROM business 3Q22 density shipments rose 100% Q/Q, in-lined with normal seasonality

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500
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Density shipment index: 1Q17 =100
421
314
296 [305 ] 298
285
276
269
224
214 217
198
189
165 172
153 149
136
121
100
81 77
45
0
1Q17 2Q 3Q 4Q 1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
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250

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Business U date - NOR p

 NOR business

• The war, inflation and China COV-control make demand decline and inventory overstock

• Quality customers demand remains flat

• Steady outlook from medical and automobile

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Density shipment index: 1Q17 =100 ≧75 nm
55 nm
197
200
183
165
155 154
139
123 [132] 124 121 118
113
[109] 107
100 [106] [113]
100 [89] 80 [94]
79 [84] 78
0
1Q17 2Q 3Q 4Q 1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
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The Best Flash Solution for Automobile A lications pp

• ArmorFlash obtained ISO/SAE 21434 TARA safety certification in September 2022

• Macronix works with strategic core-chip partners for automobile clients in upcoming future

• High quality, high efficiency and high security/safety flash memory is the most reliable solution for automotive electronic systems

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NOR Flash by Automotive Density shipment
329
Index: 1Q18 =100
283 [310 ] 280
300
240 [253]
192 191
138 [155] [155] 135 [154]
150 100 [109] [113] 116 113
91
0
1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
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Business U date – NOR Breakdown Parent Com an p ( p y)

 NOR business

• ASP remained stable, driven by the high value-added applications

• Focus on 5G/auto/data center high density products

Net Sales %

NOR breakdown by density

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14%
22%
31%
36% 35%
42% 40% 41%
48% 52% 51% 50%
49% High
45%
40%
38% 39%
34%
34% 35%
31% Mid
28% 31% 33%
(32Mb~128Mb)
37%
33%
29%
26% 24% 26% 26% 24% Low
21% 20% 18% 17%
'17 '18 '19 '20 '21 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q
Macronix International Co., Ltd. 17
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Business U date NOR – Well Diverse A lications p pp

2Q22 NOR revenue breakdown

3Q22 NOR revenue breakdown

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Consumer, Comm,
10% 23% Auto,
Computer, 16%
28% I.M.A.,
23%
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Comm,
Consumer,
20% Auto,
8%
23%
Computer,
I.M.A.,
27%
22%
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3Q22 NOR revenue comparison

Computer Consumer Communication Automotive I.M.A -15% QoQ -30% QoQ -23% QoQ +17% QoQ -17% QoQ -33% YoY -47% YoY -48% YoY +54% YoY -16% YoY

Note ： [*] Comm: including handsets ； [] I (Industrial), M (Medical), A** (Aerospace-defense)

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Transformin into Secular A lications g pp

Revenue index: 1Q17 Total =100

NOR revenue Index Trend

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200
PC & CONS Non PC & CONS
Huawei
impact
q/q -14%
100
q/q -9%
0
1Q17 1Q18 1Q19 1Q20 1Q21 1Q22
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PC ： DTPC 、 NB 、 Printers/MFP 、 Monitors 、 Tablet 、 Web Cam CONS ： TV 、 Audio 、 Game Consoles 、 STB 、 Ela Toys 、 Video 、 Pachinko

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Copyright © Macronix International Co., Ltd. 19
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A enda g

Welcome

3Q22 Financial Results Business Update Remarks and Q&A

Miin Wu Paul Yeh Miin Wu Miin Wu

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Copyright © Macronix International Co., Ltd. 20
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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