Macronix — Interim / Quarterly Report 2021

Apr 27, 2021

Macronix International Co., Ltd. First Quarter 2021 Results April 27, 2021

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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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Agenda

Welcome

2021Q1 Financial Results Business Update Remarks and Q&A

Miin Wu Paul Yeh Miin Wu Miin Wu

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Financial Highlights

2021Q1 2020Q4 2020Q1 Reviewed Audited Reviewed Revenue NT$ 9.6 NT$ 10.2 NT$ 9.4 (billion NT$) Gross 34.3% 32.4% 31.3% margin % Operating 12.1% 14.1% 12.4% margin %

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Agenda

Welcome Miin Wu 2021Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Quarterly Consolidated Statements of Comprehensive Income

Unit：NTD Million (except EPS) 2021/Q1 Reviewed 2020/Q4 Audited 2020/Q1 Reviewed Net Sales 9,627 10,158 9,415 Gross Profit 3,301 3,287 2,945 Gross Margin% 34.3% 32.4% 31.3% Operating Expenses (2,133) (1,850) (1,779) Operating Income 1,168 1,437 1,166 Operating Margin% 12.1% 14.1% 12.4% Net Non-Operating Income (Loss) (177) (84) 60 Income Before Taxes 991 1,353 1,226 Income Taxes Expense (benefit) 75 197 4 Net Income 916 1,156 1,222 Basic EPS (NT$) 0.50 0.63 0.67 EBITDA 2,097 2,431 2,104 Weighted avg outstanding million shares 1,844 1,843 1,838	2021/Q1 Reviewed 2020/Q4 Audited 2020/Q1 Reviewed	QoQ Change YoY Change (5%) 2% 0% 12% 1.9ppt 3.0ppt 15% 20% (19%) 0% (2.0ppt) (0.3ppt) (27%) (19%) (21%) (25%)
	9,627 10,158 9,415 3,301 3,287 2,945 34.3% 32.4% 31.3% (2,133) (1,850) (1,779) 1,168 1,437 1,166 12.1% 14.1% 12.4% (177) (84) 60 991 1,353 1,226 75 197 4 916 1,156 1,222

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2021Q1 Financial Highlights

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2018 2019 2020
Sales
NTD M 36,953M 34,995M 39,801M Margin%
11,906
12,000 60%
10,957
10,030 10,158
10,000 9,581 9,415 9,627 50%
9,271
9,061 8,880 8,981
45%
42%
8,000 7,479 40%
36%
35% 35%
34%
31% 32%
6,029 30%
6,000 28% 27% 26% 30%
25%
4,000 20%
2,000 10%
0 0%
18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2 Q3 Q4 21Q1
Net Sales Gross Profit Gross Margin%
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2021Q1 Financial Highlights

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2021Q1 2020Q1
Basic EPS -- NT$ 0.50 0.67
Book Value -- NT$ 20.18 18.07
Basic EPS Book Value
2.90 NTD
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NTD 2.90 NTD
1.0
0.88
21.0
20.18
0.67 0.72 19.52
0.63
18.71
0.50
18.07
17.78
0.0 15.0
20Q1 Q2 Q3 Q4 21Q1
20Q1 Q2 Q3 Q4 21Q1
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Quarterly Consolidated Condensed Balance Sheet

Unit: NTD Million (except BV) Cash	2021/03/31 Reviewed 10,370	2020/12/31 Audited 11,879	2020/03/31 Reviewed 9,059
Inventory(Net)	13,238	12,945	10,776
Property, Plant and Equipment	30,838	31,463	29,021
Total Assets	64,634	65,892	58,644
Interest bearing debt - short term	5,565	5,412	3,276
Interest bearing debt - long term	8,110	10,737	10,620
Total Liabilities	27,212	29,698	25,435
Debt Ratio (%)	42.1%	45.1%	43.4%
Shareholders' Equity	37,422	36,194	33,210
Book Value -- NT$	20.18	19.52	18.07

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Quarterly Consolidated Condensed Cash Flow

Unit: NTD Million	2021/Q1 Reviewed	2020/Q4 Audited	2020/Q1 Reviewed
Cash Flow from Operating	2,005	4,237	1,876
Depreciation & Amortization	1,036	1,011	823
Cash Flow from Investing	(594)	(1,754)	(843)
Capital Expenditures	(531)	(1,760)	(849)
Cash Flow from Financing	(2,592)	1,636	(716)
Net Change*	(1,510)	4,081	334
EndingBalance	10,370	11,879	9,059
Free Cash Flow**	1,474	2,478	1,027

*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

12,000

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9%
9,000 11% 12%
37%
QoQ YoY
45% Change Change
6,000 52%
NAND +29% +4%
NOR +31% +16%
45% ROM -45% -29%
3,000
38% FBG +12% +74%
26%
FBG (foundry business group)
10%
9%
6%
0
2020Q1 2020Q4 2021Q1
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Agenda

Welcome Miin Wu 2021Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Business update - ROM

 ROM business

• 2021Q1 sequential decline because of seasonality

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500
Density shipment index: 2017Q1 =100
421
314
285
276
269
250 214 224
189 198
165
153
136
121
100
81
77
45
0
17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2 Q3 Q4 21Q1
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Business update - NOR

 NOR business

• Record-high density shipment in 2021Q1

• Strong demand across the board

• 55nm represents 42% of density shipment in 2021Q1

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200
Density shipment index: 2017Q1 =100 ≧75 nm
55 nm 155
132
123 124 121
118
113
109 107
106
100
100 94
89
84
80
79 78
0
17Q1 Q2 Q3 Q4 18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2 Q3 Q4 21Q1
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Business update – NOR breakdown (Parent Company)

 NOR business

• High-density NOR, the key growth driver

• Security flash (ArmorFlash[TM] ) already design-win with leading global core-chip vendor for automotive applications

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NTD %
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NOR breakdown b densit y y

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14%
22%
31%
36% 35%
High
49%
45%
40%
38% 39% Mid
(32Mb~128Mb)
37%
33%
29%
26% 26%
Low
2017 2018 2019 2020 2021Q1
Macronix International Co., Ltd. 14
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Business update – high density NOR (Parent Company)

 High density NOR business

• Industry-wide leading position of high-density NOR

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400
Density shipment index: 2018Q1 =100
327
283 283
257
256
207
201
200
169
149
137
127 126
100
0
18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2 Q3 Q4 21Q1
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Business update – NOR breakdown (Parent Company)

2020Q4 NOR revenue breakdown

2021Q1 NOR revenue breakdown

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Consumer, Comm,
18% 29%
Computer, Auto,
23% I.M.A., 17%
13%
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Consumer,
Comm,
17%
28%
Computer, Auto,
26% I.M.A., 13%
16%
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*** Comm:** including handsets

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

2021Q1 NOR revenue comparison

Computer +49% QoQ +46% YoY

Consumer Communication Automotive I.M.A +20% QoQ +24% QoQ -2% QoQ +53% QoQ +23% YoY -12% YoY +8% YoY +37% YoY

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Business update – SLC NAND (Parent Company)

 SLC NAND business

• Migrate to 19nm

• 19nm represents 47% of density shipment in 2021Q1

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Density shipment index: 2019Q1 =100 ≧36 nm
19 nm
200
185 174
157 158
131 128
111
100 101
100
0
19Q1 Q2 Q3 Q4 20Q1 Q2 Q3 Q4 21Q1
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Agenda

Welcome Miin Wu 2021Q1 Financial Results Paul Yeh Business Update Miin Wu Remarks and Q&A Miin Wu

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Copyright © Macronix International Co., Ltd. 18
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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