MediaTek — Interim / Quarterly Report 2022

Oct 5, 2022

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聯發科技 2022 年第三季法人說明會 MediaTek 2022-Q3 Investor Conference

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October 28, 2022

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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Copyright © MediaTek Inc. All rights reserved.

Consolidated Revenue

(NT$ million)

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QoQ
YoY
-8.7%
8.5%
155,730
160,000
142,161
140,000 131,074
120,000
100,000
80,000
60,000
40,000
20,000
0
3Q21 2Q22 3Q22
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Consolidated Gross Margin

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QoQ
YoY
0pt
2.6pt
50% 49.3% 49.3%
46.7%
45%
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40%
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35%

3Q21

2Q22 3Q22

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Consolidated Operating Expenses

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(NT$ million)
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QoQ
YoY
-1.4%
16%
40,000 37,583 37,041
35,000 3,636 3,530
31,929
3,768 3,406
30,000
5,076
2,489
25,000
Sales
20,000
Admin
15,000 30,180 30,106 R&D
24,364
10,000
5,000
0
3Q21 2Q22 3Q22
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Consolidated Operating Income

(NT$ million)

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QoQ
YoY
-15.6%
12.9%
45,000
39,181
40,000
35,000 33,054
29,287
30,000
25,000
20,000
15,000
10,000
5,000
0
3Q21 2Q22 3Q22
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Consolidated Operating Margin

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QoQ
YoY
-1.9pt
1pt
30%
25.2%
23.3%
25% 22.3%
20%
15%
10%
5%
0%
3Q21 2Q22 3Q22
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Consolidated Net Income

(NT$ million)

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QoQ
YoY
-12.7%
9.6%
40,000
35,612
35,000
31,085
30,000 28,361
25,000
20,000
15,000
10,000
5,000
0
3Q21 2Q22 3Q22
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Consolidated Net Profit Margin

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QoQ
YoY
-1pt
0.3pt
30%
25% 21.6% 22.9% 21.9%
20%
15%
10%
5%
0%
3Q21 2Q22 3Q22
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Consolidated Earnings Per Share

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QoQ
(NT$ )
YoY
-2.85
1.62
25.00
22.39
19.54
20.00
17.92
15.00
10.00
5.00
0.00
3Q21 2Q22 3Q22
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Business Outlook

◆ For 2022-Q4, we currently expect:

• Consolidated revenue: Around NT$108 billion ~ 119.4 billion,

at a forecast exchange rate of 31.5 NT dollars to 1 US dollar

• 48.5% ± 1.5%

• Consolidated gross margin:

• 31% ± 2%

• Consolidated operating expense ratio:

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Copyright © MediaTek Inc. All rights reserved.

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$) Average Exchange Rate - USD/NTD	3Q22 142,161 (72,066) 70,095 (3,530) (3,406) (30,106) (37,041) 33,054 2,542 35,596 (4,511) 31,085 30,955 131 19.54 30.41	2Q22 155,730 (78,966) 76,764 (3,636) (3,768) (30,180) (37,583) 39,181 1,756 40,937 (5,325) 35,612 35,437 175 22.39 29.44	3Q21 Q-Q Y-Y 131,074 (8.7%) 8.5% (69,858) 61,216 (8.7%) 14.5% (5,076) (2,489) (24,364) (31,929) 29,287 (15.6%) 12.9% 2,903 32,190 (3,829) 28,361 (12.7%) 9.6% 28,287 (12.6%) 9.4% 74 17.92 27.87

Note: Sums may not equal totals due to rounding.

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Supplemental Information: Percentage of Revenue

	3Q22	2Q22	3Q21
Gross profit	49.3%	49.3%	46.7%
Selling expenses	(2.5%)	(2.3%)	(3.9%)
Administration expenses	(2.4%)	(2.4%)	(1.9%)
R&D expenses	(21.2%)	(19.4%)	(18.6%)
Operating income	23.3%	25.2%	22.3%
Non-operating income	1.8%	1.1%	2.2%
Income tax expense	(3.2%)	(3.4%)	(2.9%)
Net income	21.9%	22.9%	21.6%

Note: Sums may not equal totals due to rounding.

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Balance Sheet Summary (Unaudited)

(In NT$ millions)	3Q22	2Q22	3Q21
Cash & financial assets-current	159,193	256,547	187,344
Accounts receivable	65,913	61,899	55,717
Inventories	83,438	91,410	68,793
Other current assets	14,268	14,579	10,031
Funds and investments	126,921	124,679	122,654
Intangible assets	73,834	73,662	74,661
Other non-current assets	116,327	107,966	89,274
Total assets	639,894	730,742	608,475
Short-term loans	48,611	41,291	50,449
Accounts payable	30,515	45,328	45,581
Other current liabilities	111,124	234,301	97,548
Total non-current liabilities	21,320	17,026	15,834
Total equity	428,323	392,797	399,063

Note: Sums may not equal totals due to rounding.

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Cash Flow Statement (Unaudited)

(In NT$ millions)	3Q22	2Q22	3Q21
Net cash provided by (used in) operating activities	19,259	35,554	(4,323)
Net cash provided by (used in) investing activities	(15,042)	(12,678)	(10,872)
Net cash provided by (used in) financing activities	(110,118)	(19,712)	(35,835)
Effect of changes in exchange rate on cash and cash equivalents	9,252	4,621	56
Net increase (decrease) in cash and cash equivalents	(96,649)	7,785	(50,974)
Cash and cash equivalents at the end of the period	141,569	238,218	168,238

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]

(In NT$ millions)	3Q22 2Q22 3Q21 Q-Q Y-Y	3Q22 2Q22 3Q21 Q-Q Y-Y
TIFRS	Operating income Operatingincome margin(%)	33,054 39,181 29,287 (15.6%) 12.9% 23.3% 25.2% 22.3%
Reconciliations	Share-based compensation Amortization of acquisition related assets	1,119 1,248 453 159 90 136
Non-TIFRS	Operating income	34,332 40,519 29,876 (15.3%) 14.9%
	Operating income margin(%)	24.1% 26.0% 22.8%
TIFRS	Net income Net income margin(%)	31,085 35,612 28,361 (12.7%) 9.6% 21.9% 22.9% 21.6%
	Net income- Owners of the parent EPS(NT$)	30,955 35,437 28,287 (12.6%) 9.4% 19.54 22.39 17.92
Reconciliations	Share-based compensation Amortization of acquisition related assets Tax effect	1,119 1,248 453 159 90 136 (176) (185) (86)
Non-TIFRS	Net income	32,187 36,765 28,865 (12.5%) 11.5%
	Net income margin (%)	22.6% 23.6% 22.0%
	Net income- Owners of the parent	32,025 36,569 28,784 (12.4%) 11.3%
	EPS(NT$)	20.22 23.10 18.23

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*	3Q22 Revenue Breakdown (Note 1)	QoQ%	YoY%
Mobile Phone	55%	-8%	7%
Smart Edge Platforms	38%	-9%	11%
Power IC	7%	-17%	4%
Total	100%	-9%	8%

Note 1: Sums may not equal 100% due to rounding.

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

Smart Edge Platforms: Wireless/wired connectivity and SoC for router, broadband, PON, laptop, wireless headset, smart speaker and automotive; ARM-based computing and IoT; TV; customized service for consumer/enterprise platforms

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.