MediaTek — Interim / Quarterly Report 2021

Jan 27, 2022

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聯發科技 2021 年第四季法人說明會 MediaTek 2021-Q4 Investor Conference

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January 27, 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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1

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Consolidated Revenue

(NT$ million)

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QoQ
YoY
-1.8%
33.5%
140,000 131,074 128,654
120,000
96,405
100,000
80,000
60,000
40,000
20,000
0
4Q20 3Q21 4Q21
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YoY
53.2%
550,000
493,415
500,000
450,000
400,000
322,146
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2020 2021
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Consolidated Gross Margin

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QoQ
YoY
2.9pt YoY
5.1pt
3pt
50% 49.6% 50%
46.9%
46.7%
45% 44.5% 45% 43.9%
40% 40%
4Q20 3Q21 4Q21 2020 2021
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Consolidated Operating Expenses

(NT$ million)

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QoQ
YoY
6.8%
YoY
24.1%
25.7%
40,000
140,000
34,109 123,564
35,000
31,929 120,000
4,843 17,196
30,000 27,491 5,076 98,316
2,855 100,000 10,287
25,000 3,713 2,489 13,647
1,753 80,000 7,344
Sales
20,000
Admin
60,000
15,000
R&D
26,411 96,081
24,364
22,025 40,000 77,325
10,000
20,000
5,000
0 0
2020 2021
4Q20 3Q21 4Q21
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Consolidated Operating Income

(NT$ million)

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QoQ
YoY YoY
1.5%
93.3% 150%
35,000 120,000
108,040
29,721
29,287
30,000
100,000
25,000
80,000
20,000
15,373 60,000
15,000 43,219
40,000
10,000
20,000
5,000
0 0
4Q20 3Q21 4Q21 2020 2021
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Consolidated Operating Margin

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QoQ
YoY YoY
0.8pt
7.2pt 8.5pt
25% 23.1%
22.3% 25%
21.9%
20%
20%
15.9%
15% 13.4%
15%
10%
10%
5% 5%
0% 0%
4Q20 3Q21 4Q21 2020 2021
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Consolidated Net Income

(NT$ million)

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QoQ
YoY
YoY
6.3%
170%
101.6%
35,000 120,000 111,873
30,148
30,000 28,361
100,000
25,000
80,000
20,000
60,000
14,957
15,000 41,439
40,000
10,000
20,000
5,000
0 0
4Q20 3Q21 4Q21 2020 2021
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Consolidated Net Profit Margin

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QoQ
YoY YoY
1.8pt
7.9pt 9.8pt
25% 23.4% 25% 22.7%
21.6%
20% 20%
15.5%
15% 15% 12.9%
10% 10%
5% 5%
0% 0%
4Q20 3Q21 4Q21 2020 2021
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5%
0%
4Q20 3Q21 4Q21
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Consolidated Earnings Per Share

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QoQ
YoY YoY
(NT$ ) 1.07
9.64 44.55
20.00 18.99 80.00
17.92 70.56
18.00
70.00
16.00
60.00
14.00
50.00
12.00
9.35 40.00
10.00
8.00 30.00 26.01
6.00
20.00
4.00
10.00
2.00
0.00
0.00
2020 2021
4Q20 3Q21 4Q21
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Business Outlook

◆ For 2022-Q1, we currently expect:

• Consolidated revenue: Around NT$131.2 billion ~ 141.5 billion, at a

• forecast exchange rate of 27.7 NT dollars to 1 US dollar

• 49% ± 1.5%

• Consolidated gross margin:

• 25% ± 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$)	4Q21 128,654 (64,824) 63,830 (4,843) (2,855) (26,411) (34,109) 29,721 4,278 33,999 (3,852) 30,148 30,051 97 18.99	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	4Q20 Q-Q Y-Y 96,405 (1.8%) 33.5% (53,542) 42,863 4.3% 48.9% (3,713) (1,753) (22,025) (27,491) 15,373 1.5% 93.3% 1,519 16,891 (1,934) 14,957 6.3% 101.6% 14,746 6.2% 103.8% 211 9.35

Note: Sums may not equal totals due to rounding.

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Supplemental Information: Percentage of Revenue

	4Q21	3Q21	4Q20
Gross profit	49.6%	46.7%	44.5%
Selling expenses	(3.8%)	(3.9%)	(3.9%)
Administration expenses	(2.2%)	(1.9%)	(1.8%)
R&D expenses	(20.5%)	(18.6%)	(22.8%)
Operating income	23.1%	22.3%	15.9%
Non-operating income	3.3%	2.2%	1.6%
Income tax expense	(3.0%)	(2.9%)	(2.0%)
Net income	23.4%	21.6%	15.5%

Note: Sums may not equal totals due to rounding.

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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$)	2021 493,415 (261,810) 231,605 (17,196) (10,287) (96,081) (123,564) 108,040 18,812 126,852 (14,980) 111,873 111,421 451 70.56	2020 Y-Y 322,146 53.2% (180,610) 141,536 63.6% (13,647) (7,344) (77,325) (98,316) 43,219 150.0% 4,363 47,583 (6,144) 41,439 170.0% 40,917 172.3% 522 26.01

Note: Sums may not equal totals due to rounding.

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Supplemental Information: Percentage of Revenue

	2021	2020
Gross profit	46.9%	43.9%
Selling expenses	(3.5%)	(4.2%)
Administration expenses	(2.1%)	(2.3%)
R&D expenses	(19.5%)	(24.0%)
Operating income	21.9%	13.4%
Non-operating income	3.8%	1.4%
Income tax expense	(3.0%)	(1.9%)
Net income	22.7%	12.9%

Note: Sums may not equal totals due to rounding.

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Balance Sheet Summary (Unaudited)

(In NT$ millions)	4Q21	3Q21	4Q20
Cash & financial assets-current	204,764	187,344	210,113
Accounts receivable	58,660	55,717	33,133
Inventories	73,271	68,793	37,677
Other current assets	10,171	10,031	10,939
Funds and investments	128,123	122,654	116,767
Intangible assets	73,526	74,661	76,272
Other non-current assets	112,363	89,274	49,006
Total assets	660,877	608,475	533,906
Short-term loans	51,267	50,449	21,471
Accounts payable	43,504	45,581	34,470
Other current liabilities	116,335	97,548	87,857
Total non-current liabilities	16,123	15,834	15,023
Total equity	433,648	399,063	375,084

Note: Sums may not equal totals due to rounding.

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Cash Flow Statement (Unaudited)

(In NT$ millions)	4Q21	3Q21	4Q20
Net cash provided by (used in) operating activities	24,737	(4,323)	38,611
Net cash provided by (used in) investing activities	(9,100)	(10,872)	(2,782)
Net cash provided by (used in) financing activities	1,144	(35,835)	(9,540)
Effect of changes in exchange rate on cash and cash equivalents	(1,314)	56	(1,065)
Net increase (decrease) in cash and cash equivalents	15,467	(50,974)	25,224
Cash and cash equivalents at the end of the period	183,705	168,238	196,580

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)	4Q21 3Q21 4Q20 Q-Q Y-Y	4Q21 3Q21 4Q20 Q-Q Y-Y
TIFRS	Operating income Operatingincome margin(%)	29,721 29,287 15,373 1.5% 93.3% 23.1% 22.3% 15.9%
Reconciliations	Share-based compensation Amortization of acquisition related assets	1,066 453 384 136 136 340
Non-TIFRS	Operating income	30,923 29,876 16,097 3.5% 92.1%
	Operating income margin(%)	24.0% 22.8% 16.7%
TIFRS	Net income Net income margin(%)	30,148 28,361 14,957 6.3% 101.6% 23.4% 21.6% 15.5%
	Net income- Owners of the parent EPS(NT$)	30,051 28,287 14,746 6.2% 103.8% 18.99 17.92 9.35
Reconciliations	Share-based compensation Amortization of acquisition related assets Tax effect	1,066 453 384 136 136 340 (170) (86) (127)
Non-TIFRS	Net income	31,179 28,865 15,554 8.0% 100.5%
	Net income margin (%)	24.2% 22.0% 16.1%
	Net income- Owners of the parent	31,072 28,784 15,343 7.9% 102.5%
	EPS(NT$)	19.63 18.23 9.73

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

(In NT$ millions)	2021 2020 Y-Y	2021 2020 Y-Y
TIFRS	Operating income Operatingincome margin(%)	108,040 43,219 150.0% 21.9% 13.4%
Reconciliations	Share-based compensation Amortization of acquisition related assets	1,757 1,283 606 1,549
Non-TIFRS	Operating income	110,403 46,051 139.7%
	Operating income margin(%)	22.4% 14.3%
TIFRS	Net income Net income margin(%)	111,873 41,439 170.0% 22.7% 12.9%
	Net income- Owners of the parent EPS(NT$)	111,421 40,917 172.3% 70.56 26.01
Reconciliations	Share-based compensation Amortization of acquisition related assets Tax effect	1,757 1,283 606 1,549 (353) (470)
Non-TIFRS	Net income	113,882 43,800 160.0%
	Net income margin (%)	23.1% 13.6%
	Net income- Owners of the parent	113,400 43,292 161.9%
	EPS(NT$)	71.81 27.52

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*	4Q21 Revenue Breakdown	QoQ%	YoY%
Mobile Phone	52%	-9%	51%
IoT, Computing and ASIC	26%	10%	31%
Smart Home	15%	2%	16%
Power IC	7%	3%	30%
Total	100%	-1.8%	33.5%

*** 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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www.mediatek.com

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