Macronix — Interim / Quarterly Report 2021

Mar 12, 2021

Macronix International Co., Ltd. Fourth Quarter 2020 Results January 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 C.Y. Lu 2020Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Financial Highlights

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2019Q4 2020Q3 2020Q4
Audited Reviewed Unaudited 18Q4 19Q4 20Q4
QoQ QoQ QoQ
18Q4 19Q4 20Q4
Revenue NT$ 9.6 NT$ 11.0 NT$ 10.2
-7%
(billion NT$) -10%
-20%
35% 36%
31% 32%
Gross
26.2% 35.9% 32.4% 26%
margin %
17%
15% 14%
Operating 8.0% 17.1% 14.1% 8% 12%
margin %
1.01
0.83
0.76
Basic EPS 0.67
0.41 0.88 0.63 0.41 0.88
0.72
0.63
(NT$)
Q4 20Q1 Q2 Q3 Q4
Pre-tax EPS
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Financial Highlights

2019 2020 Audited Unaudited Revenue NT$ 35.0 NT$ 39.8 (billion NT$) 34% Gross 28% 27.5% 33.7% margin % 15%

Operating 8.9% 14.7% 9% margin % 3.18 Basic EPS 1.64 2.90 2.90 1.65 (NT$) 1.64 2019 2020 *Pre-tax EPS

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Agenda

Welcome 2020Q4 Financial Results Business Update Remarks and Q&A

C.Y. Lu Paul Yeh C.Y. Lu C.Y. Lu

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Quarterly Consolidated Statements of Comprehensive Income

Unit：NTD Million (except EPS) 2019/Q4 Audited 2020/Q3 Reviewed 2020/Q4 Unaudited Net Sales 9,581 10,957 10,158 Gross Profit 2,506 3,934 3,287 Gross Margin% 26.2% 35.9% 32.4% Operating Expenses (1,744) (2,063) (1,850) Operating Income 762 1,870 1,437 Operating Margin% 8.0% 17.1% 14.1% Net Non-Operating Income (Loss) (168) (9) (84) Income Before Taxes 594 1,861 1,353 Income Taxes Expense (benefit) (160) 244 197 Net Income 754 1,618 1,156 Basic EPS (NT$) 0.41 0.88 0.63 EBITDA 1,405 2,905 2,431 Weighted avg outstanding million shares 1,836 1,838 1,843	2019/Q4 Audited 2020/Q3 Reviewed 2020/Q4 Unaudited	QoQ Change YoY Change (7%) 6% (16%) 31% (3.5ppt) 6.2ppt (10%) 6% (23%) 89% (3.0ppt) 6.1ppt (27%) 128% (29%) 53%
	9,581 10,957 10,158 2,506 3,934 3,287 26.2% 35.9% 32.4% (1,744) (2,063) (1,850) 762 1,870 1,437 8.0% 17.1% 14.1% (168) (9) (84) 594 1,861 1,353 (160) 244 197 754 1,618 1,156

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Annual Consolidated Statements of Comprehensive Income

Unit: NT$ Million (except EPS) 2019 Audited 2020 Unaudited Net Sales 34,995 39,801 Gross Profit 9,615 13,409 Gross Margin 27.5% 33.7% Operating Expenses (6,517) (7,543) Operating Income 3,099 5,866 Operating Margin 8.9% 14.7% Net Non-Operating Income (Loss) (73) (25) Income Before Taxes 3,026 5,841 Income Taxes Expense (benefit) 13 515 Net Income 3,013 5,326 Basic EPS -- NT$ 1.64 2.90 EBITDA 5,954 9,834 Weighted average outstanding million shares 1,832 1,839	2019 Audited 2020 Unaudited	YoY Change 14% 39% 6.2ppt 16% 89% 5.8ppt - 93% - 77%
	34,995 39,801 9,615 13,409 27.5% 33.7% (6,517) (7,543) 3,099 5,866 8.9% 14.7% (73) (25) 3,026 5,841 13 515 3,013 5,326

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2020Q4 Financial Highlights

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2018 2019 2020
Sales 36,953M 34,995M 39,801M
NTD M 80%
11,906
12,000 10,957
Margin%
10,158
10,030
9,581
10,000 9 ,061 8,981 9,415 9,271 60%
8,880
7,479
45%
8,000
42%
35% 6,029 35% 36% 40%
31% 32%
6,000 30%
28% 27%
26%
25%
4,000
20%
2,000
0 0%
18Q1 Q2 Q3 Q4 19Q1 Q2 Q3 Q4 20Q1 Q2 Q3 Q4
Gross Margin%
Net Sales Gross Profit
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Quarterly Consolidated Condensed Balance Sheet

Unit: NTD Million (except BV)	2019/12/31 Audited	2020/09/30 Reviewed	2020/12/31 Unaudited		Current Ratio (%)	Current Ratio (%)	Current Ratio (%)
					208
Cash	8,725	7,798	11,879	170		171	181	182
Inventory(Net)	12,810	12,485	12,945
Property, Plant and Equipment	29,366	30,812	31,463
Total Assets	60,657	62,528	65,892
Interest bearing debt - short term	4,817	4,462	5,412		Debt Ratio (%)
Interest bearing debt - long term	9,774	10,030	10,737	46.4	43.4	45.8 44.5		45.1
Total Liabilities	28,164	27,838	29,698
Debt Ratio (%)	46.4%	44.5%	45.1%
Shareholders' Equity ROE	32,493 9%	34,691 17%	36,194 16%	9%	15%	16% ROE	17%	16%
Book Value -- NT$	17.68	18.71	19.52
				19Q4	20Q1	Q2	Q3	Q4

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Quarterly Consolidated Condensed Cash Flow

Unit: NTD Million 2020/Q3 Reviewed 2020/Q4 Unaudited	2019 Audited 2020 Unaudited
Cash Flow from Operating 1,486 4,237	4,543 9,855
Depreciation & Amortization 977 1,011	2,731 3,746
Cash Flow from Investing (2,573) (1,754)	(12,404) (6,043)
Capital Expenditures (2,577) (1,760)	(12,788) (6,080)
Cash Flow from Financing (997) 1,636	3,046 (579)
Cash Dividends (2,206) -	(2,206) (2,206)
Net Change* (2,092) 4,081	(4,886) 3,154
EndingBalance 7,798 11,879	8,725 11,879
Free Cash Flow** (1,091) 2,478	(8,245) 3,775

*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
9%
9%
9,000 9%
38%
37%
QoQ YoY
43%
Change Change
6,000
NAND -13% +1%
NOR -10% -7%
46% 45% ROM -8% +15%
3,000
43%
FBG +17% +75%
FBG (foundry business group)
9%
7%
5%
0
2019Q4 2020Q3 2020Q4
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Annual Sales Breakdown by Products (Parent Company)

Unit: NT$ Million

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40,000
10%
10% YoY
30,000
Change
42%
NAND +9%
44%
NOR +7%
20,000
ROM +20%
FBG +27%
41%
10,000
39%
FBG (foundry business group)
7% 7%
0
2019 2020
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Agenda

Welcome C.Y. Lu 2020Q4 Financial Results Paul Yeh Business Update C.Y. Lu Remarks and Q&A C.Y. Lu

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Business update - ROM

 ROM business

• ≥ 64Gb products represented 58% of ROM business in 2020Q4

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3,784
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4,000
Density shipment index: 2016Q1 =100
2,816
2,558
2,477
2,414
2,013
1,923
1,774
2,000 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 Q2 Q3 Q4
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Business update - NOR Flash

200

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Density shipment index: 2016Q1 =100
157
148
146 144
141
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 Q2 Q3 Q4
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Current status of Flash memory business

 Flash business

• ≤75nm products increased to 73% of NOR sales in 20Q4

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7,000
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3,500
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Accumulative design-win case count
6,125
4,872
4,068
More than 35% from
Industrial applications
2,239
1,375
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16Q1Q2 Q3 Q417Q1Q2 Q3 Q418Q1Q2 Q3 Q419Q1Q2 Q3 Q420Q1Q2 Q3 Q4

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0

Business update – NOR flash breakdown (Parent Company)

NTD %

NOR breakdown by density

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14%
22%
31%
36%
High
49%
45%
40%
38% Mid
(32Mb~128Mb)
37%
33%
29%
26%
Low
2017 2018 2019 2020
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Business update – NOR flash breakdown (Parent Company)

2020Q3 NOR revenue breakdown

2020Q4 NOR revenue breakdown

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Comm,
Consumer,
41%
13%
Computer,
Auto,
I.M.A.,
22%
13%
11%
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Consumer, Comm,
18% 29%
Computer, Auto,
23% I.M.A., 17%
13%
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• Comm: including handsets

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

2020Q4 NOR revenue comparison

Computer -4% QoQ -8% YoY

Consumer Communication Automotive I.M.A +32% QoQ -34% QoQ +23% QoQ +5% QoQ -8% YoY -22% YoY +13% YoY +11% YoY

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Business update – NOR flash breakdown (Parent Company)

2019 NOR revenue breakdown 2020 NOR revenue breakdown

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Consumer, Comm,
19%
33%
Computer, Auto,
22% I.M.A., 14%
12%
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Comm,
Consumer,
15% 36%
Computer,
Auto,
22% I.M.A.,
14%
13%
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• Comm: including handsets

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

2020 NOR revenue comparison

Computer +5% YoY

Consumer Communication Automotive I.M.A -18% YoY +18% YoY +2% YoY +18% YoY

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Agenda

Welcome 2020Q4 Financial Results Business Update Remarks and Q&A

C.Y. Lu Paul Yeh C.Y. Lu C.Y. Lu

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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