MediaTek — Interim / Quarterly Report 2021

Nov 11, 2021

==> picture [128 x 33] intentionally omitted <==

聯發科技 2021 年第三季法人說明會 MediaTek 2021-Q3 Investor Conference

==> picture [158 x 223] intentionally omitted <==

October 26, 2021

Copyright © MediaTek Inc. All rights reserved.

Safe Harbor Statement

These factors may cause actual results materially different from the information provided herein. The factors include the impact of competitive products and pricing, timely acceptance of products design 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, market oversupply, availability of manufacturing capacity, financial stability in end markets, potential difficulties in talents retention, unexpected costs and expenses, any merger and acquisition associated uncertainties such as obtaining of regulatory approval or integration delay, loss of significant customers, involvement in legal or administrative proceedings, new regulations that may impact our business operation, fluctuations in foreign exchange rates, global economic conditions or non-economic conditions and any other risks factors.

This presentation also supplements Non Taiwan International Financial Reporting Standards(Non-TIFRS) financial measures which exclude share-based compensation, amortization of acquisition related assets, tax effect and other items. This supplemental information is for reference only, not as a substitute for information based on TIFRS. Your attention is called that final actual earnings distribution will be made in accordance with financial statements based on TIFRS.

==> picture [101 x 26] intentionally omitted <==

1

Copyright © MediaTek Inc. All rights reserved.

Consolidated Revenue

(NT$ million)

==> picture [290 x 340] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
4.3%
34.7%
140,000 131,074
125,653
120,000
97,275
100,000
80,000
60,000
40,000
20,000
0
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

2

Copyright © MediaTek Inc. All rights reserved.

Consolidated Gross Margin

==> picture [290 x 208] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
0.5pt
2.5pt
50%
46.7%
46.2%
45% 44.2%
----- End of picture text -----

==> picture [22 x 9] intentionally omitted <==

----- Start of picture text -----

40%
----- End of picture text -----

35% 3Q20 2Q21 3Q21

==> picture [101 x 26] intentionally omitted <==

3

Copyright © MediaTek Inc. All rights reserved.

Consolidated Operating Expenses

(NT$ million)

==> picture [400 x 397] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
9.3%
12.4%
35,000
31,929
29,204
30,000 28,400
5,076
3,890
3,648
2,489
25,000
2,435
2,205
20,000
Sales
Admin
15,000
R&D
24,364
22,547 22,879
10,000
5,000
0
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

4

Copyright © MediaTek Inc. All rights reserved.

Consolidated Operating Income

(NT$ million)

==> picture [315 x 381] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
1.6%
100.2%
35,000
29,287
28,834
30,000
25,000
20,000
14,628
15,000
10,000
5,000
0
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

5

Copyright © MediaTek Inc. All rights reserved.

Consolidated Operating Margin

==> picture [276 x 354] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
-0.6pt
7.3pt
25% 22.9% 22.3%
20%
15.0%
15%
10%
5%
0%
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

6

Copyright © MediaTek Inc. All rights reserved.

Consolidated Net Income

==> picture [442 x 404] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
(NT$ million) 2.8%
112.2%
30,000 28,361
27,587
25,000
20,000
15,000 13,367
10,000
5,000
0
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

7

Copyright © MediaTek Inc. All rights reserved.

Consolidated Net Profit Margin

==> picture [283 x 247] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
-0.4pt
7.9pt
25%
22.0%
21.6%
20%
13.7%
15%
10%
----- End of picture text -----

==> picture [276 x 74] intentionally omitted <==

----- Start of picture text -----

5%
0%
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

8

Copyright © MediaTek Inc. All rights reserved.

Consolidated Earnings Per Share

==> picture [25 x 10] intentionally omitted <==

----- Start of picture text -----

(NT$ )
----- End of picture text -----

==> picture [286 x 377] intentionally omitted <==

----- Start of picture text -----

QoQ
YoY
0.48
9.5
20.00
17.92
17.44
18.00
16.00
14.00
12.00
10.00
8.42
8.00
6.00
4.00
2.00
0.00
3Q20 2Q21 3Q21
----- End of picture text -----

==> picture [101 x 26] intentionally omitted <==

9

Copyright © MediaTek Inc. All rights reserved.

Business Outlook

 For 2021-Q4, we currently expect:

• Consolidated revenue: Around NT$120.6 billion ~ 131.1 billion, at a

• forecast exchange rate of 28 NT dollars to 1 US dollar

• 47.5% ± 1.5%

• Consolidated gross margin:

• 25% ± 2%

• Consolidated operating expense ratio:

==> picture [101 x 26] intentionally omitted <==

10

Copyright © MediaTek Inc. All rights reserved.

Taiwan-International Financial Reporting Standards (TIFRS)

Financial Statements

==> picture [101 x 26] intentionally omitted <==

11

Copyright © MediaTek Inc. All rights reserved.

Consolidated Income Statement (Unaudited)

(In NT$ millions, except EPS) Net Sales Operating costs Gross profit Selling expenses Administration expenses R&D expenses Operating expenses Operating income Net non-operating income Net income before income tax Income tax expense Net income Owners of the parent Non-controlling interests EPS attributable to the parent(NT$)	3Q21 131,074 (69,858) 61,216 (5,076) (2,489) (24,364) (31,929) 29,287 2,903 32,190 (3,829) 28,361 28,287 74 17.92	2Q21 125,653 (67,615) 58,038 (3,890) (2,435) (22,879) (29,204) 28,834 2,753 31,587 (4,000) 27,587 27,511 76 17.44	3Q20 Q-Q Y-Y 97,275 4.3% 34.7% (54,246) 43,028 5.5% 42.3% (3,648) (2,205) (22,547) (28,400) 14,628 1.6% 100.2% 804 15,432 (2,066) 13,367 2.8% 112.2% 13,251 2.8% 113.5% 115 8.42

Note: Sums may not equal totals due to rounding.

==> picture [101 x 26] intentionally omitted <==

12

Copyright © MediaTek Inc. All rights reserved.

Supplemental Information: Percentage of Revenue

	3Q21	2Q21	3Q20
Gross profit	46.7%	46.2%	44.2%
Selling expenses	(3.9%)	(3.1%)	(3.7%)
Administration expenses	(1.9%)	(1.9%)	(2.3%)
R&D expenses	(18.6%)	(18.2%)	(23.2%)
Operating income	22.3%	22.9%	15.0%
Non-operating income	2.2%	2.2%	0.8%
Income tax expense	(2.9%)	(3.2%)	(2.1%)
Net income	21.6%	22.0%	13.7%

Note: Sums may not equal totals due to rounding.

==> picture [101 x 26] intentionally omitted <==

13

Copyright © MediaTek Inc. All rights reserved.

Balance Sheet Summary (Unaudited)

(In NT$ millions)	3Q21	2Q21	3Q20
Cash & financial assets-current	187,344	238,281	184,310
Accounts receivable	55,717	48,414	37,997
Inventories	68,793	63,149	31,010
Other current assets	10,031	10,411	16,630
Funds and investments	122,654	139,127	95,939
Intangible assets	74,661	75,071	77,105
Other non-current assets	89,275	56,422	47,675
Total assets	608,475	630,875	490,666
Short-term loans	50,449	27,428	30,626
Accounts payable	45,581	45,903	29,288
Other current liabilities	97,548	155,233	74,934
Total non-current liabilities	15,834	14,679	14,514
Total equity	399,063	387,633	341,304

Note: Sums may not equal totals due to rounding.

==> picture [101 x 26] intentionally omitted <==

14

Copyright © MediaTek Inc. All rights reserved.

Cash Flow Statement (Unaudited)

(In NT$ millions)	3Q21	2Q21	3Q20
Net cash provided by (used in) operating activities	(4,323)	28,131	31,839
Net cash provided by (used in) investing activities	(10,872)	(2,294)	(2,687)
Net cash provided by (used in) financing activities	(35,835)	1,162	(25,402)
Effect of changes in exchange rate on cash and cash equivalents	56	(1,883)	(1,332)
Net increase (decrease) in cash and cash equivalents	(50,974)	25,115	2,418
Cash and cash equivalents at the end of the period	168,238	219,212	171,356

Note : Sums may not equal totals due to rounding.

==> picture [101 x 26] intentionally omitted <==

15

Copyright © MediaTek Inc. All rights reserved.

【 Supplemental Information 】 Reconciliations of TIFRS Results to Non-TIFRS Results and Quarterly Revenue Product Segment

==> picture [101 x 26] intentionally omitted <==

16

Copyright © MediaTek Inc. All rights reserved.

Reconciliations of TIFRS Results to Non-TIFRS Results[Note2]

(In NT$ millions)	3Q21 2Q21 3Q20 Q-Q Y-Y	3Q21 2Q21 3Q20 Q-Q Y-Y
TIFRS	Operating income Operatingincome margin(%)	29,287 28,834 14,628 1.6% 100.2% 22.3% 22.9% 15.0%
Reconciliations	Share-based compensation Amortization of acquisition related assets	453 123 418 136 136 406
Non-TIFRS	Operating income	29,876 29,094 15,452 2.7% 93.4%
	Operating income margin(%)	22.8% 23.2% 15.9%
TIFRS	Net income Net income margin(%)	28,361 27,587 13,367 2.8% 112.2% 21.6% 22.0% 13.7%
	Net income- Owners of the parent EPS(NT$)	28,287 27,511 13,251 2.8% 113.5% 17.92 17.44 8.42
Reconciliations	Share-based compensation Amortization of acquisition related assets Tax effect	453 123 418 136 136 406 (86) (44) (131)
Non-TIFRS	Net income	28,865 27,802 14,059 3.8% 105.3%
	Net income margin (%)	22.0% 22.1% 14.5%
	Net income- Owners of the parent	28,784 27,719 13,946 3.8% 106.4%
	EPS(NT$)	18.23 17.57 8.86

Note1: Sums may not equal totals due to rounding.

Note2: Non-TIFRS financial information should be considered in addition to, not as a substitute for, TIFRS financial information. Reconciliations between TIFRS and Non-TIFRS results include share-based compensation, amortization of acquisition related assets, tax effect and other items. Earnings distribution is made in accordance with financial statements based on TIFRS.

==> picture [101 x 26] intentionally omitted <==

17

Quarterly Product Group Revenue Breakdown

Product Group*	3Q21 Revenue Breakdown	QoQ%	YoY%
Mobile Phone	56%	2%	72%
IoT, Computing and ASIC	23%	11%	22%
Smart Home	14%	4%	13%
Power IC	7%	6%	26%
Total	100%	4%	35%

*** Mobile Phone:** 5G/4G/3G smartphone and feature phone

IoT, Computing and ASIC: wireless/wired connectivity and SoC for IoT applications including but not limited to router, broadband, fixed wireless access, laptop, wireless headset, smart speaker and automotive; ARM-based SoC for computing devices; customized service for consumer/enterprise platforms. Smart Home: Digital TV, Smart display, Set-top box, Over-the-top box

Power IC: Power IC

==> picture [101 x 26] intentionally omitted <==

18

Copyright © MediaTek Inc. All rights reserved.

www.mediatek.com

==> picture [101 x 26] intentionally omitted <==

19

Copyright © MediaTek Inc. All rights reserved.