Macronix — Interim / Quarterly Report 2022

Sep 14, 2022

Macronix International Co., Ltd. Second Quarter 2022 Results July 26, 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 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. 1
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A enda g

Welcome C.Y. Lu 2Q22 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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2Q22 Financial Highlights

2Q22 1Q22 2Q21 Reviewed Reviewed Reviewed Revenue NT$ 11.3 NT$11.6 NT$ 11.4 (billion NT$) Gross 48.2% 48.3% 39.1% margin % Operating 26.3% 27.7% 20.2% margin %

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1H22 Financial Hi hli hts g g

1H22 1H21 Reviewed Reviewed Revenue NT$ 22.9 NT$21.1 (billion NT$) Gross 48.3% 36.9% margin % Operating 27.0% 16.5% margin %

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Copyright © Macronix International Co., Ltd. 4
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A enda g

Welcome

Welcome C.Y. Lu 2Q22 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Solid Financial Results

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 Net Income Basic EPS (NT$) EBITDA EBITDA % Weighted avg outstanding million shares	2Q22 Reviewed 1Q22 Reviewed 2Q21 Reviewed	QoQ Change YoY Change (2%) (1%) (2%) 22% (0.1ppt) 9.1ppt 4% 15% (7%) 29% (1.4ppt) 6.1ppt (0%) 56% 0% 52%
	11,340 11,598 11,426 5,465 5,604 4,466 48.2% 48.3% 39.1% (2,484) (2,387) (2,160) 2,980 3,218 2,305 26.3% 27.7% 20.2% 409 188 (131) 3,389 3,406 2,174 (454) (477) (248) 2,935 2,929 1,925
	1.59 1.58 1.04 4,579 4,577 3,289 40% 39% 29% 1,849 1,849 1,844

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1H22 Revs. Up 9% Y/Y with Margin Expansion

Unit：NTD Million (except EPS) 1H22 Reviewed 1H21 Reviewed YoY Change Net Sales 22,938 21,054 9% Gross Profit 11,069 7,766 43% Gross Margin% 48.3% 36.9% 11.4ppt Operating Expenses (4,871) (4,293) 13% Operating Income 6,198 3,473 78% Operating Margin% 27.0% 16.5% 10.5ppt Net Non-Operating Income (Loss) 597 (308) Income Before Taxes 6,795 3,165 115% Income Taxes Expense (931) (323) Net Income 5,864 2,842 106% Basic EPS (NT$) 3.17 1.54	1H22 Reviewed 1H21 Reviewed	YoY Change 9% 43% 11.4ppt 13% 78% 10.5ppt 115% 106%
	22,938 21,054 11,069 7,766 48.3% 36.9% (4,871) (4,293) 6,198 3,473 27.0% 16.5% 597 (308) 6,795 3,165 (931) (323) 5,864 2,842

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Sustainable Sales and Mar in Growths g

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Sales
NTD M Margin%
2019 2020 2021
16,000 34,995M 39,801M 50,573M 80%
14,974 14,545
11,906
12,000 11,426 11,598 11,340 60%
10,957
10,158
9,581 9,415 9,271 9,627
48% 48%
47%
8,000 7,479 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
Net Sales Gross Margin%
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Risin Cor orate Value g p

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2Q22 2Q21
Basic EPS -- NT$ 1.59 1.04
Book Value -- NT$ 26.36 21.20
Basic EPS Book Value
NTD NTD
3.0 1.54 2.94 3.17 28.0 26.86 26.36
25.20
1.92 2.00 23.21
2.0
1.58 1.59 22.5 21.20 1.8 dividend
20.18
1.04
1.0
0.50
17.0
0.0 1Q21 2Q 3Q 4Q 1Q22 2Q
1Q21 2Q 3Q 4Q 1Q22 2Q
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Improving ROE (GAAP)

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40% 40%
Annualized ROE - Reported
Net Income / Sales
34%
29% 29%
30%
24%
20% 20%
16% 13%
9%
9%
10%
0% 0%
2019 2020 2021 2Q22 2019 2020 2021 2Q22
(LTM) (LTM)
100% Sales / Total Assets 200% Total Assets / Total Equity
187%
184%
71%
75% 70% 180%
172%
63%
171%
58%
50% 160%
2019 2020 2021 2Q22 2019 2020 2021 2Q22
(LTM) (LTM)
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Improving ROE (non GAAP)

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40% Annualized ROE – Pro Forma 40% Net Income / Sales
33%
27%
30% 25%
20%
17%
20% 20%
13%
9%
10%
10%
0% 0%
2019 2020 2021 2Q22 2019 2020 2021 2Q22
(LTM) (LTM)
100% Sales / Total Assets 210% Total Assets / Total Equity
199%
194%
74%
73%
75% 190%
184%
65% 182%
60%
50% 170%
2019 2020 2021 2Q22 2019 2020 2021 2Q22
(LTM) (LTM)
Pro Forma - excluding all effects of disposal of 6” fab
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Quarterly Consolidated Condensed Balance Sheet

Unit: NTD Million (except BV)	6/30/'22 Reviewed	3/31/'22 Reviewed	6/30/'21 Reviewed
Cash	20,078	18,533	11,796
Inventory(Net)	15,241	13,573	14,009
Property, Plant and Equipment	35,278	33,151	30,428
Total Assets	83,722	79,174	66,883
Interest bearing debt - short term	3,220	3,357	4,847
Interest bearing debt - long term	8,678	8,808	8,059
Total Liabilities	34,845	29,381	27,571
Debt Ratio (%)	41.6%	37.1%	41.2%
Shareholders' Equity	48,877	49,793	39,311
Book Value -- NT$	26.36	26.86	21.20

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Solid FcF with Disciplined Capex

Unit: NTD Million	2Q22 Reviewed	1Q22 Reviewed	2Q21 Reviewed
Cash Flow from Operating	4,090	2,851	2,851
Depreciation & Amortization	1,141	1,123	1,056
Cash Flow from Investing	(1,956)	(2,620)	(453)
Capital Expenditures	(2,126)	(2,075)	(520)
Cash Flow from Financing	(294)	(206)	(875)
Net Change*	1,545	(32)	1,426
EndingBalance	20,078	18,533	11,796
Free Cash Flow**	1,964	777	2,332

*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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12,000
12%
16% 15%
8,000
50%
59% 58%
4,000
27%
21% 18%
8% 9%
7%
0
2Q21 1Q22 2Q22
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QoQ YoY Change Change NAND +17% -9% NOR -4% +14% ROM -15% -33% FBG +11% +21% * FBG (foundry business group)

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A enda g

Welcome

Welcome C.Y. Lu 2Q22 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Business u date - ROM p

 ROM business

• 1H22 density shipments in-lined with historical seasonality

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500
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Density shipment index: 1Q17 =100
421
314
296 [305 ]
285
276
269
250 214 224 217
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
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Business u date - NOR p

 NOR business

• 2Q22 density shipments -10% q/q mainly due to China zero-Covid policy cause supply chain disruption, and components shortage of Automotive industry

• Demand from USA 、 Europe 、 Japan remains stable

• 55nm representing 58% of density shipments in 2Q22

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200
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100

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Density shipment index: 1Q17 =100 ≧75 nm
55 nm
197
183
165
155
154
139
132
123 124 121 118
[109] 107
100 [106] [113]
94
84 [89] 80
79 78
1Q17 2Q 3Q 4Q 1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q
Macronix International Co., Ltd. 17
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0

Desi n-win into To 5 Automotive su liers g p pp

• Macronix OctaBus™ Flash memory provides advanced Ultra-High-Performance solutions for NXP, Renesas, STMicroelectronics, the worldwide leading suppliers of Automotive semiconductors, for their MCUs, processors and/or platform

• Macronix’s octaflash memory has been selected as a key supplier by NXP for its S32Z and S32E real-time processors

• Macronix high quality, high efficiency and high security/safety Flash memory is the best solution for Automotive electronic systems

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NOR Flash by Automotive Density shipment
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
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Business u date – NOR breakdown Parent Com an p ( p y)

 NOR business

• Continued to focus on developing high density products with more than 50% of revenues

• ASP remained stable, driven by the demand from high-end application customers

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NOR breakdown by density
14%
22%
31%
36% 35%
42% 40% 41% High
48%
52% 51%
49%
45%
40%
38% 39% Mid
34%
34% 35%
31% (32Mb~128Mb)
28% 31%
37%
33%
29%
26% 24% 26% 26% 24%
21% 20% 18% Low
'17 '18 '19 '20 '21 1Q21 2Q 3Q 4Q 1Q22 2Q
Macronix International Co., Ltd. 19
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NTD %

Business u date NOR – Well Diverse A lications p pp

Sales %

2Q22 NOR revenue comparison

Sales %			2 Q22 NOR revenue comparison
I.M.A Auto COMM CONS COMP 29% 14% 27% 13% 17%	COMP 27%	I.M.A Auto COMM CONS COMP 28% 10% 23% 16% 23%	-1% ■Consumer -1% ■Computer -19% ■Communication -3% ■Automotive +14% ■I.M.A QoQ Change YoY Change +9% -20% -4% +49% +60%
	CONS
	COMM 10% 27%
	Auto 16%
	I.M.A 20%

2Q21 1Q22 2Q22

• Comm: including handsets

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

Reclassification ： Printers/MFP (CONSCOMP) Surveillance & Security (CONSI.M.A)

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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
q/q -2%
Huawei
impact
100
q/q -10%
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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Business u date – SLC NAND Parent Com an p ( p y)

 SLC NAND business

• 19nm represented 58% of density shipment in 2Q22

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≧36 nm
Density shipment index: 2019Q1 =100
19 nm
300 278
209 203 205
200 185 174
157 158
142
131 128
100 [111 ] 101
100
0
1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q
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A enda g

Welcome

Welcome C.Y. Lu 2Q22 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Copyright © Macronix International Co., Ltd. 23
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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