MediaTek — Interim / Quarterly Report 2021

Aug 17, 2021

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聯發科技 2021 年第二季法人說明會 MediaTek 2021-Q2 Investor Conference

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July 27, 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.

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Consolidated Revenue

(NT$ million)

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QoQ
YoY
16.3%
85.9%
140,000
125,653
120,000 108,033
100,000
80,000 67,603
60,000
40,000
20,000
0
2Q20 1Q21 2Q21
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Consolidated Gross Margin

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QoQ
YoY
1.3pt
2.7pt
50%
46.2%
44.9%
45%
43.5%
40%
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35%

2Q20

1Q21 2Q21

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Consolidated Operating Expenses

(NT$ million)

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QoQ
YoY
3.1%
32.8%
35,000
29,204
28,322
30,000
3,890
3,388
25,000
21,991 2,508 2,435
2,730
20,000
Sales
1,844
Admin
15,000
R&D
22,427 22,879
10,000
17,416
5,000
0
2Q20 1Q21 2Q21
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Consolidated Operating Income

(NT$ million)

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QoQ
YoY
42.8%
288.8%
35,000
28,834
30,000
25,000
20,198
20,000
15,000
10,000 7,416
5,000
0
2Q20 1Q21 2Q21
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Consolidated Operating Margin

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QoQ
YoY
4.2pt
11.9pt
25% 22.9%
18.7%
20%
15%
11.0%
10%
5%
0%
2Q20 1Q21 2Q21
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Consolidated Net Income

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QoQ
YoY
(NT$ million) 7%
277.4%
30,000
27,587
25,777
25,000
20,000
15,000
10,000
7,310
5,000
0
2Q20 1Q21 2Q21
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Consolidated Net Profit Margin

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QoQ
YoY
-1.9pt
11.2pt
23.9%
25%
22.0%
20%
15%
10.8%
10%
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5%

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0%
2Q20 1Q21 2Q21
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Consolidated Earnings Per Share

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(NT$ )
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QoQ
YoY
1.23
12.86
20.00
17.44
18.00
16.21
16.00
14.00
12.00
10.00
8.00
6.00 4.58
4.00
2.00
0.00
2Q20 1Q21 2Q21
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Business Outlook

 For 2021-Q3, we currently expect:

• Consolidated revenue: Around NT$125.7 billion ~ 131.9 billion, at a

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

• 46% ± 1.5%

• Consolidated gross margin:

• 24% ± 2%

• Consolidated operating expense ratio:

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Taiwan-International Financial Reporting Standards (TIFRS)

Financial Statements

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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$)	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	1Q21 108,033 (59,513) 48,520 (3,388) (2,508) (22,427) (28,322) 20,198 8,878 29,076 (3,298) 25,777 25,572 205 16.21	2Q20 Q-Q Y-Y 67,603 16.3% 85.9% (38,197) 29,407 19.6% 97.4% (2,730) (1,844) (17,416) (21,991) 7,416 42.8% 288.8% 1,113 8,529 (1,219) 7,310 7.0% 277.4% 7,204 7.6% 281.9% 106 4.58

Note: Sums may not equal totals due to rounding.

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Supplemental Information: Percentage of Revenue

	2Q21	1Q21	2Q20
Gross profit	46.2%	44.9%	43.5%
Selling expenses	(3.1%)	(3.1%)	(4.0%)
Administration expenses	(1.9%)	(2.3%)	(2.7%)
R&D expenses	(18.2%)	(20.8%)	(25.8%)
Operating income	22.9%	18.7%	11.0%
Non-operating income	2.2%	8.2%	1.6%
Income tax expense	(3.2%)	(3.1%)	(1.8%)
Net income	22.0%	23.9%	10.8%

Note: Sums may not equal totals due to rounding.

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Balance Sheet Summary (Unaudited)

(In NT$ millions)	2Q21	1Q21	2Q20
Cash & financial assets-current	238,281	213,483	187,158
Accounts receivable	48,414	46,371	36,101
Inventories	63,149	56,668	36,812
Other current assets	10,411	13,633	7,189
Funds and investments	139,127	130,414	90,066
Intangible assets	75,071	75,572	78,296
Other non-current assets	56,422	50,906	47,259
Total assets	630,875	587,047	482,882
Short-term loans	27,428	27,220	42,557
Accounts payable	45,903	43,301	26,698
Other current liabilities	155,233	88,868	73,712
Total non-current liabilities	14,679	14,703	16,159
Total equity	387,633	412,955	323,756

Note: Sums may not equal totals due to rounding.

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Cash Flow Statement (Unaudited)

(In NT$millions)	2Q21	1Q21	2Q20
Net cash provided by (used in) operating activities	28,131	(1,450)	7,177
Net cash provided by (used in) investing activities	(2,294)	(6,658)	(1,863)
Net cash provided by (used in) financing activities	1,162	5,578	(9,663)
Effect of changes in exchange rate on cash and cash equivalents	(1,883)	46	(1,552)
Net increase (decrease) in cash and cash equivalents	25,115	(2,483)	(5,901)
Cash and cash equivalents at the end of the period	219,212	194,097	168,938

Note : Sums may not equal totals due to rounding.

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

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

onciliations of TIFRS Results to Non-TIFRS Results	onciliations of TIFRS Results to Non-TIFRS Results	onciliations of TIFRS Results to Non-TIFRS Results
(In NT$millions) 2Q21 1Q21 2Q20 Q-Q Y-Y
TIFRS	Operating income Operatingincome margin(%)	28,834 20,198 7,416 42.8% 288.8% 22.9% 18.7% 11.0%
Reconciliations	Share-based compensation Amortization of acquisition related assets	123 115 212 136 198 399
Non-TIFRS	Operating income	29,094 20,510 8,027 41.8% 262.5%
	Operating income margin(%)	23.2% 19.0% 11.9%
TIFRS	Net income Net income margin(%)	27,587 25,777 7,310 7.0% 277.4% 22.0% 23.9% 10.8%
	Net income- Owners of the parent EPS(NT$)	27,511 25,572 7,204 7.6% 281.9% 17.44 16.21 4.58
Reconciliations	Share-based compensation Amortization of acquisition related assets Tax effect	123 115 212 136 198 399 (44) (53) (103)
Non-TIFRS	Net income	27,802 26,036 7,819 6.8% 255.6%
	Net income margin (%)	22.1% 24.1% 11.6%
	Net income- Owners of the parent	27,719 25,831 7,724 7.3% 259.0%
	EPS(NT$)	17.57 16.38 4.92

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.

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Quarterly Product Group Revenue Breakdown

Product Group*	2Q21 Revenue Breakdown	QoQ%	YoY%
Mobile Phone	57%	22%	143%
IoT, Computing and ASIC	22%	13%	59%
Smart Home	14%	2%	62%
Power IC	7%	15%	43%
Total	100%	16%	86%

*** 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

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Copyright © MediaTek Inc. All rights reserved.

www.mediatek.com

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Copyright © MediaTek Inc. All rights reserved.