Macronix — Interim / Quarterly Report 2023

Nov 24, 2023

Macronix International Co., Ltd. Third Quarter 2023 Results October 24, 2023

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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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Welcome

Welcome Miin Wu 3Q23 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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3Q23 Financial Highlights

3Q23 2Q23 3Q22 Revenue NT$ 7.3 NT$ 7.4 NT$ 11.5 (Billion NT$) Gross 24.2% 28.3% 44.2% margin % Operating (9.0% ) (2.2%) 21.1% margin %

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3Q23YTD Financial Highlights

3Q23YTD 3Q22YTD Revenue NT$ 21.8 NT$ 34.4 (Billion NT$) Gross 25.9% 46.9% margin % Operating (5.8% ) 25.0% margin %

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Welcome Miin Wu 3Q23 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) Net Sales Gross Profit Gross Margin% Operating Expenses Operating Income (Loss) Operating Margin% Net Non-Operating Income (Loss) (Loss)Income Before Taxes Income Taxes Benefit (Expense) Net(Loss)Income	3Q23 2Q23 3Q22	QoQ YoY
	7,283 7,429 11,472 1,761 2,103 5,072 24.2% 28.3% 44.2% (2,414) (2,269) (2,655) (652) (166) 2,417 (9.0%) (2.2%) 21.1% 202 249 423 (450) 83 2,840 43 (12) (340) (408) 71 2,500	(2%) (37%) (16%) (65%) (4.1ppt) (20.0ppt) 6% (9%) 292% (127%) (6.8ppt) (30.1ppt) (643%) (116%) (674%) (116%)
Basic EPS(NT$)	(0.22) 0.04 1.35
EBITDA EBITDA % Weighted avg outstanding million shares	659 1,193 4,047 9% 16% 35% 1,854 1,854 1,849

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3Q23YTD Revenue and Operating Margin

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 Benefit (Expense) Net Income	3Q23YTD 3Q22YTD	YoY
	21,816 34,410 5,650 16,141 25.9% 46.9% (6,908) (7,526) (1,258) 8,615 (5.8%) 25.0% 503 1,020 (755) 9,635 63 (1,271) (692) 8,365	(37%) (65%) (21.0ppt) (8%) (115%) (30.8ppt) (108%) (108%)
Basic EPS(NT$)	(0.37) 4.52
EBITDA 2,607 13,203 EBITDA% 12% 38% Weighted avg outstanding million shares 1,854 1,849

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Sales and Gross Mar in Rate g

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2019 2020 2021 2022
34,995M 39,801M 50,573M 43,487M
Sales
NTD M Net Sales Gross Margin% Margin%
16,000 80%
14,974
14,545
11,906 11,598
12,000 11,427 11,340 [11,471 ] 60%
10,957
10,158
9,581 9,415 9,271 9,627
9,078
47% [48%] [48%]
8,000 7,479 43% 44% 7,104 [7,429 ] [7,283 ] 40%
6,029 39%
35% [36%]
32% [34%] 34%
31%
30%
28%
4,000 25% [27%] 26% 25% 24% 20%
0 0%
1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q 4Q 1Q23 2Q 3Q
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Cor orate Value p

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3Q23 3Q22
Basic EPS -- NT$ (0.22) 1.35
Book Value -- NT$ 26.43 27.89
Basic EPS Book Value
NTD NTD
4.85
NT$ 1.8
30.0
1.58 1.59 NT$ 1.8 cash dividend
1.35 cash dividend 28.38 28.38
27.89
26.70
26.86
0.33 26.36 26.43
0.05
1Q22 2Q 3Q 4Q 1Q23 2Q 3Q
25.0
(0.19) (0.22) 1Q22 2Q 3Q 4Q 1Q23 2Q 3Q
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Return On Equity (GAAP)

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Annualized ROE - Reported Net Income / Sales
16% -0.3%
13%
-0.2%
2017 2018 2019 2020 2021 2022 3Q23 2017 2018 2019 2020 2021 2022 3Q23
(LTM [] ) (LTM)
Sales / Total Assets Total Assets / Total Equity
37%
58% 180%
164%
2017 2018 2019 2020 2021 2022 3Q23 2017 2018 2019 2020 2021 2022 3Q23
(LTM) (LTM)
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Note ：[*] LTM (Last Twelve Months)

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Quarterly Consolidated Condensed Balance Sheet

Unit: NTD Million (except BV)	9/30/'23	6/30/'23	9/30/'22
Cash	13,432	15,885	19,493
Inventory(Net)	13,409	14,224	15,386
Property, Plant and Equipment	41,200	40,186	36,426
Total Assets	79,764	81,783	85,074
Interest bearing debt - short term	2,257	5,429	3,257
Interest bearing debt - long term	17,858	11,841	12,009
Total Liabilities	30,765	32,290	33,362
Debt Ratio (%)	38.6%	39.5%	39.2%
Shareholders' Equity	48,999	49,493	51,713
Book Value -- NT$	26.43	26.70	27.89

Note: MXIC Issues 2023/09/30 outstanding million shares of 1,854

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Quarterly FCF and Capex Plan

Unit: NTD Million	3Q23	2Q23	3Q22		2023YTD	2022YTD
Cash Flow from Operating	(348)	(506)	1,960		(1,280)	8,901
Depreciation & Amortization	1,044	1,044	1,154		3,164	3,418
Cash Flow from Investing	(1,717)	(1,746)	(3,050)		(6,153)	(7,625)
Capital Expenditures	(1,706)	(1,703)	(3,050)		(6,158)	(7,250)
Cash Flow from Financing	(495)	3,167	85		1,105	(415)
Cash Dividends	(3,337)	-	-		(3,337)	(3,337)
Net Change*	(2,453)	887	(585)		(6,332)	928
EndingBalance	13,432	15,885	20,078		13,432	18,565
Free Cash Flow**	(2,055)	(2,210)	(1,090)		(7,437)	1,651

*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)

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Unit: NTD Million
12,000
9%
8,000
49%
QoQ YoY
9% 7%
Change Change
NAND -22% -48%
46% 50%
4,000 NOR +4% -36%
32%
ROM -5% -24%
39% 38%
FBG -15% -68%
10%
6% 5%
0 * FBG (Foundry Business Group)
3Q22 2Q23 3Q23
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Welcome Miin Wu 3Q23 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

• Legendary and high-density title released in Q2’23

• Resilient and various mid-density titles shipment in Q3’23

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Density shipment index: 1Q18 =100
400
348
309
259
245 [252 ] 247
236
228
222
212
196
187
200 177 185 179
163
137
142 124
113
100
67
64
0
1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q 4Q 1Q23 2Q 3Q
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Business U date - NOR p

 NOR business

Inventory digestion is undergoing due to macro economy and wars around the world

End markets demand is getting better than previous quarter especially from I.M.A.A*

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Density shipment index: 1Q18 =100
≧75 nm 248
230
55 nm
208
195 194
200
175
154 [166 156 ] 152 149
142
134
119
109 109
98 [101 ]
100 [106 ] [112 ] 95 93
100
0
1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q 4Q 1Q23 2Q 3Q
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Note ：[*] I.M.A.A (Industrial, Medical, Aerospace and Automotive)

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The Best Flash Solution for Automobile A lications pp

 Auto business

• Tier-1 companies release innovative ADAS, in-vehicle Infortainment solutions continuously

• OctaFlash solutions certified for ISO 26262 ASIL – D meeting the real-time system responsiveness in automotive

NOR Flash by Automotive Density shipment

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Index: 1Q18 =100 329
283 [310] 280
300
254
240 [253]
233
214201
192188
138 [155155] 135 [154]
150
116 113
100 [109] [113]
91
0
1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q22 2Q 3Q 4Q 1Q23 2Q 3Q
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Business Update NOR – Quarterly (Parent Company)

2Q23 NOR Revenue Breakdown 3Q23 NOR Revenue Breakdown

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Comm,
Comm,
Consumer, 18% Auto, Consumer, 18% Auto,
9% 8% 26%
23%
Computer, I.M.A., Computer, I.M.A.,
27% 23% 25% 23%
Computer Consumer Communication Automotive I.M.A
-4% QoQ 0% QoQ +3% QoQ +18% QoQ +2% QoQ
-43% YoY -31% YoY -44% YoY -27% YoY -34% YoY
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Note ：[] Comm: including handsets ；[*] I(Industrial), M(Medical), A(Aerospace-defense)

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Welcome Miin Wu 3Q23 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Copyright © Macronix International Co., Ltd. 19
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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