NTC — Interim / Quarterly Report 2021

Oct 8, 2021

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Nanya Technology Q3 2021 Investor Conference

Dr. Pei-Ing Lee, President & Spokesman 08 October 2021

︱© 2021 Nanya Technology Corporation. All Rights Reserved.

October 8, 2021

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Safe Harbor

The information herein and the presentation made during the conference contain forward-looking statements. Neither Nanya Technology Corp. nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements or undertakes duty to update the statements.

You are urged to review carefully the information provided herein. This information shall not be distributed, reproduced or disclosed in whole or in part without prior written permission of NANYA Technology Corp.

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved. ︱NTC Proprietary & Confidential︱

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01 02 03 04

Q3’21 Revenue & Results

CAPEX & Bit Shipment Market Outlook Business Review & Outlook

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October 8, 2021

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01 Q3’21 REVENUE & RESULTS

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October 8, 2021

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Q3’21 Financial Results Summary

Amount in Million NT$, except for EPS & BVPS	Q3’21 (Unaudited)	Q2’21 QoQ Q3’20 YoY
Net Sales	23,837 100%	22,637 100% 5.3% 15,324100% 55.6%
Gross Profit (Loss)Gross Margin(%)	11,735 49.2%	9,583 42.3% 22.5% 3,962 25.9% 196.2%
Operating Income (Loss) Operating Margin(%)	9,073 38.1%	7,063 31.2% 28.5% 2,069 13.5% 338.4%
EBITDA*EBITDA Margin (%)	12,966 54.4%	10,896 48.1% 19.0% 5,728 37.4% 126.4%
Non-operating Income (Expense)	314 1.3%	-143 -0.6% 25 0.2%
Income Tax Benefit (Expense)	-1,862 -7.8%	-756 -3.3% -481 -3.1%
Net Income (Loss)Net Margin (%)	7,526 31.6%	6,163 27.2% 22.1% 1,613 10.5% 366.5%
Earnings Per Share (NT$)	2.44**	2.00 0.53
Book Value Per Share (NT$)	53.87***	51.43 49.91

Remark: * EBITDA = Operating income + Depreciation & Amortization Expenses

*** BVPS is calculated based on 3,091M outstanding shares

** EPS is based on weighted average outstanding shares of 3,088M

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved.

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Quarterly Revenue Results

QoQ YoY Q3’21 vs. Q2’21 Q3’21 vs. Q3’20

Revenue

Shipment

+5.3%

Decrease low-teens%

+55.6% Decreased mid-single digits%

ASP

Increased twenties%

Increased seventies%

Exchange Rate

-0.6%

-5.6%

• Q3’21 Revenue increased by 5.3% QoQ

 Q3’21 Bit shipment decreased by low-teens% QoQ

 Q3’21 ASP increased by twenties% QoQ

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved.

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Q3’21 vs. Q2’21 Results Comparison

	Q3’21 (Unaudited)	Q2’21	QoQ (PPT* Delta)	Remarks
Amount in Million NT$
Net Sales	23,837	22,637 +5.3%  Bit shipment decreased by low-teens%  ASP increased approx. twenties%  FX negative impact 0.6%
Gross Profit (Loss) Gross Margin(%)	11,735 49.2%	9,583 42.3% +6.9%  Q3’21 Gross profit increased NT$ 2,152M, mainly due to ASP increase
Operating Expense	2,662 11.2%	2,520 11.1% +0.1%  SG&A expense relatively flat  R&D expense increased NT$ 138M
Operating Income (Loss) Operating Margin(%)	9,073 38.1%	7,063 31.2% +6.9%  Q3’21 OP income increased NT$ 2,010M
Net Income (Loss) Net Margin (%)	7,526 31.6%	6,163 27.2% +4.4%  Net Income increased NT$ 1,362M • OP Income increase of NT$ 2,010M • FX impact: NT$ 472M favorable (Q3’21: NT$ 101M; Q2’21: NT$ -370M) • Income tax: NT$ 1,105M unfavorable

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved.

*PPT: Percentage Points

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Quarterly Financial Highlights

Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%) Operating Margin(%)

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59%
55%
53%
50% [52%] 51%
23,837
47%
49.2%
44% [44%] 44% 22,637
42% 41%
40% 42.3%
39%
20,000 38.1% 40%
35%
17,731
33% 32% [33%] 32%
31% 31%
30.6%
28% 28% 14,419 16,489 15,324 14,773 31.2%
27% 29.1%
25% 13,116
25.9%
23%
21% 23.8%
25.7% 19.6% 22.0%
18%
17%
15%
17.1%
13.5% 7,526
11.0% 6,163
12.7% 8.8%
3,220
2,704
1,928
1,613 [924]
- 0%
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Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved.

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Operating Expenses

SG&A Expenses

(Million NT$) * Unaudited number

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R&D Expenses
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(Million NT$) * Unaudited number

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Q4
509 2,020
Q4 1,439

642
503
Q3 1,389 Q3
1,882
574 639
Q2
1,239 Q2
1,643
533 Q1 492 1,071
Q1
2020 2021 2020 2021
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Note: 2021 R&D expenses to grow YoY due to the increase of 10nm-class technology & product development

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved.

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Cash Flows

Q3’21 (Unaudited) Unit: Million NT$ Beginning Balance 67,738

Q2’21

59,113

Cash from Operating 10,838 10,707 Activities Capital Expenditures -3,801 -1,233 Financial Activities & -3,420 * -848 Others Ending Balance 71,355 67,738 Free Cash Flow[(1)] 7,037 9,473

• (1) Free Cash Flow = Cash from operating activities – Capital expenditures

* 1. - NT$ 4.0 billion of dividend payout

1. +NT$ 320 million proceeds from treasury stocks

2021 Q1~Q3 Cash Flow

Unit: Million NT$

-6,519 -3,784 Capital Expenditures Financial 29,932 Activities & Others

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71,355
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51,726
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Cash from Operating Activities

Sep. 30, 2021 Ending Balance

Jan. 1, 2021 Beginning Balance

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October 8, 2021

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02 CAPEX & BIT SHIPMENT

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CAPEX & Bit Shipment

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NT$ Billion
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Mid-thirties %

Mid thirties%

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20.4
12.0
8.5
5.5
2018 2019 2020 2021 E
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CAPEX
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Low-teens%
~ Flat
2018 2019 2020 2021 E
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Bit Shipment (YoY)
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Capital Expenditure (CAPEX)

• Q3’21 CAPEX NT$ 3.8 billion (B)

• 2021 CAPEX plan adjusted to NT$ 12B due to defer payment

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Bit Shipment

• Q3’21 bit shipment decreased low-teens% QoQ

• Q4’21 bit shipment estimated to be relatively flat

• 2021 YoY bit shipment expected to be relatively flat

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03 MARKET OUTLOOK

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Market Outlook(Q4’21)

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Outlook

• Q4’21: Consumer electronics, Sever, and Smartphone remain solid, with Chromebook and spot market decline. Supply chains unbalanced and components shortage have impacted many market sectors.

• COVID-19 interruption on South East Asia factories, and High inflation and Geopolitical tensions have slowed down global economy recovery

• DRAM market entering a short term correction from Q4’21

Supply

• More supply and Capex been introduced, expecting global economic recovery

• Market confidence declined due to low-quality products shipments to spot market in Q3

Demand

• Mobile Market: 5G new models launched for Q4 hot season, Mobile market resumes marginal growth in 2021

• Server Market: Strong server DRAM demand, for new platforms with high DRAM content (8-channel, 64GB RDIMMs)

• PC Market: Enterprise PC demand stable, Chromebook slowing down, and components shortage issues not resolved(e.g. PMIC)

• Consumer Market: Positive outlook for networking, wearables, smart speaker, SSD. While DTV, and automotive, demand marred by component shortages

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October 8, 2021

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04 BUSINESS REVIEW & OUTLOOK

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October 8, 2021

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Nanya Business Review & Outlook

• Q3’21 result improved, GM 49%, OPM 38%

• Q4’21 DRAM market entering a short term correction

• 1st 10nm-class 8Gb DDR4, DDR5 piloting on schedule

• 2nd 10nm-class product development on schedule

• New fab ground-breaking postponed to Q1’22 due to longer approval process

• (COVID-19 & document preparation)

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Thanks & Questions

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October 8, 2021

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Q3’21 Consolidated Income Statement

	Q3’21 (Unaudited)	Q2’21	QoQ	Q3’20	YoY
Amount: Million NT$
Net Sales	23,837 100.0%	22,637 100.0% 5.3% 15,324 100.0% 55.6%
Cost of Goods Sold	12,102 50.8%	13,054 57.7% 11,362 74.1%
Gross Margin	11,735 49.2%	9,583 42.3% 22.5% 3,962 25.9% 196.2%
SG&A Expenses	642 2.7%	639 2.8% 503 3.3%
R&D Expenses	2,020 8.5%	1,882 8.3% 1,389 9.1%
Operating Income	9,073 38.1%	7,063 31.2% 28.5% 2,069 13.5% 338.4%
Non-operating Income (Exp.)	314 1.3%	-143 -0.6% 25 0.2%
Income before Tax	9,387 39.4%	6,920 30.6% 35.7% 2,095 13.7% 348.2%
Income Tax Benefit (Expense)	-1,862 -7.8%	-756 -3.3% -481 -3.1%
Net Income	7,526 31.6%	6,163 27.2% 22.1% 1,613 10.5% 366.5%
Earnings Per Share (NT$)	2.44	2.00 0.53
Book Value Per Share(NT$)	53.87	51.43 49.91

October 8, 2021 ︱© 2021 Nanya Technology Corporation. All Rights Reserved.