NTC — Interim / Quarterly Report 2021

Jul 9, 2021

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Nanya Technology Q2 2021 Investor Conference

Dr. Pei-Ing Lee, President & Spokesman 09 July 2021

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July 9, 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.

July 9, ︱© 2021 Nanya Technology Corporation. All Rights Reserved. ︱NTC Proprietary & Confidential︱ 2021

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Q2’21 Revenue & Results 01 CAPEX & Bit Shipment 02 Market Outlook 03 Business Review & Outlook 04

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July 9, 2021

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01 Q2’21 REVENUE & RESULTS

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Q2’21 Financial Results Summary

Amount in Million NT$, except for EPS & BVPS	Q2’21 (Unaudited)	Q1’21 QoQ Q2’20 YoY
Net Sales	22,637 100%	17,731 100% 27.7% 16,489100% 37.3%
Gross Profit (Loss)Gross Margin(%)	9,583 42.3%	5,162 29.1% 85.7% 5,042 30.6% 90.1%
Operating Income (Loss) Operating Margin(%)	7,063 31.2%	3,027 17.1% 133.3% 3,229 19.6% 118.7%
EBITDA*EBITDA Margin (%)	10,895 48.1%	6,769 38.2% 61.0% 6,784 41.1% 60.6%
Non-operating Income (Expense)	-145 -0.6%	307 1.7% 207 1.3%
Income Tax Benefit (Expense)	-756 -3.3%	-630 -3.6% -216 -1.3%
Net Income (Loss)Net Margin (%)	6,162 27.2%	2,704 15.3% 127.9% 3,220 19.5% 91.3%
Earnings Per Share (NT$)	2.00**	0.88 1.05
Book Value Per Share (NT$)	51.43***	51.00 49.63

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

• ** EPS is based on weighted average outstanding shares of 3,085M

• *** BVPS is calculated based on 3,085M outstanding shares after deduction of approx. NT$ 1.3 cash dividend

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Quarterly Revenue Results

QoQ Q2’21 vs. Q1’21

Revenue

+27.7%

Shipment

Relatively flat

ASP

ASP Increased approx. thirty% Exchange Rate -1.2%

YoY Q2’21 vs. Q2’20

+37.3% Increased mid single digits% Increased high-thirties%

-6.4%

• Q2’21 Revenue increased by 27.7% QoQ

• Q2’21 Bit shipment relatively flat QoQ

• Q2’21 ASP increased by approximately thirty% QoQ

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July 9, 2021

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Q2’21 vs. Q1’21 Results Comparison

	Q2’21 (Unaudited)	Q1’21	QoQ (PPT* Delta)	Remarks
Amount in Million NT$
Net Sales	22,637	17,731 +27.7%  Bit shipment relatively flat  ASP increased approx. thirty%  FX negative impact 1.2%
Gross Profit (Loss) Gross Margin(%)	9,583 42.3%	5,162 29.1% +13.2%  Q2’21 Gross profit increased NT$ 4,421M, mainly due to ASP increase
Operating Expense	2,520 11.1%	2,135 12.0% -0.9%  SG&A expense increased NT$ 146M  R&D expense increased NT$ 239M
Operating Income (Loss) Operating Margin(%)	7,063 31.2%	3,027 17.1% +14.1%  Q2’21 OP income increased NT$ 4,036M
Net Income (Loss) Net Margin (%)	6,162 27.2%	2,704 15.3% +11.9%  Net Income increased NT$ 3,458M • OP Income increase of NT$ 4,036M • FX impact: NT$ 408M unfavorable (Q2’21: NT$ -370M; Q1’21: NT$ +38M ) • Income tax: NT$ 127M unfavorable

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July 9, 2021

*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%
47%
44% [44%] 44% 22,637
42% 41% 42.3%
40%
39%
20,000 40%
35%
17,731
33% 32% [33%] 32%
31% 31%
28% 28% 14,419 16,489 15,324 14,77330.6% 31.2%
27%
25% 13,116 29.1%
25.9%
23%
21% 23.8%
25.7% 19.6% 22.0%
18%
17%
15%
17.1%
13.5%
11.0% 6,162
12.7% 8.8%
3,220
2,704
1,928
1,613 [924]
- 0%
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22,637 42.3% 40%

31.2%

Q1'16 Q2'16Q3'16Q4'16 Q1'17 Q2'17 Q3'17Q4'17 Q1'18 Q2'18 Q3'18Q4'18Q1'19 Q2'19 Q3'19 Q4'19Q1'20 Q2'20 Q3'20 Q4'20Q1'21Q2'21

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Operating Expenses

SG&A Expenses

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(Million NT$) * Unaudited number
509
Q4
503
Q3

574 639
Q2
533 492
Q1
2020 2021
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R&D Expenses
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(Million NT$) * Unaudited number

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Q4
1,439
Q3

1,389
1,882
Q2
1,239
1,643
1,071 Q1
2020 2021
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Note: 2021 R&D expense grow YoY mainly for the increase of 10nm-class technology & product development expense

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July 9, 2021

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Cash Flows

Q2’21 Q1’21 (Unaudited) Unit: Million NT$ Beginning Balance 59,113 51,726 Cash from Operating 10,556 8,388 Activities Capital Expenditures -1,233 -1,485 Financial Activities & -847 * 484 Others Ending Balance 67,588 59,113 Free Cash Flow[(1)] 9,323 6,903

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

• Mainly from exchange differences on translation of foreign F/S

2021 1H Cash Flow

Unit: Million NT$

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-2,718
-364
Financial
Capital
18,944 Activities
Expenditures
& Others
Cash from
Operating
Activities
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51,726
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Jan. 1, 2021 Beginning Balance

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67,588
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Jun. 30, 2021 Ending Balance

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02 CAPEX & BIT SHIPMENT

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CAPEX & Bit Shipment

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NT$ Billion
20.4
15.6
8.5
5.5
Q2 1.2
Q1 1.5
2018 2019 2020 2021 E
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Mid-thirties % Mid thirties%
Low-teens%
Flat to up
2018 2019 2020 2021 E
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CAPEX
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Bit Shipment (YoY)
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Capital Expenditure (CAPEX)

Bit Shipment

• Q2’21 CAPEX NT$ 1.2 billion (B)

• 2021 CAPEX plan is up to NT$ 15.6B

• Q2’21 bit shipment relatively flat QoQ

• Q3’21 bit shipment estimated to down single digits%

• 2021 YoY bit shipment expected to be flat to marginally increase

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July 9, 2021

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New FAB Investment Plan

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• 12-inch DRAM FAB

• Construction • Located New Taipei City, Taiwan

• • Total investment is approximate NTD 300 billion

• Investment • The investment plan will take 3 phases within 7 years

• Process • 10nm-class process technologies

• Technology Total • Approximately 45,000 wafers / month

• Capacity •

• Schedule First phase production start 2024

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03 MARKET OUTLOOK

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Market Outlook(Q3’21)

Outlook

• Global economic recovering, favoring DRAM demand growth

• Q3’21 consumer electronics, server and PC demand healthy, 5G smartphone penetration increasing

• Component supply shortage may slow down PC and Server shipment, and COVID-19 situations may defer economic recovery

Supply

• 2H’21 DRAM suppliers’ CAPEX increased, mainly for New FABs constructions and EUV equipment. Shipment increasing for high density DRAM products

• Q2’21 DRAM suppliers’ inventory at relatively low

Demand

• Mobile Market: Smart phone regaining annual growth, 5G penetration reaches 40%, high-end shipment improved, while mid-to-low-end sluggish in developing countries

• Server Market: Expansion of corporate IT spending and new platforms with high DRAM content contributing to strong server DRAM demand in 2H’21

• PC market: Enterprise PC/NB demand strong YOY growth, however, components shortage issues may delay shipments in 2H’21

• Consumer Market: Positive outlook for DTV, networking, wearables, HDD, SSD, IP camera, game consoles and automotive electronics

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04 BUSINESS REVIEW & OUTLOOK

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Nanya Business Review & Outlook

 Improved Q2’21 results, positive Q3’21 DRAM market outlook

• 1st 10nm-class 8Gb DDR4, DDR5 start to piloting

• 2nd 10nm-class product development on track

• Announced a new DRAM fab construction and plan production by 2024

• No impact on business operations by COVID-19

• 2021 AGM date reschedule to August 4[th] due to governmental authority order

• BOD approved dividend distribution NT$ 4 billion, subject to AGM approval

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July 9, 2021

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Thanks & Questions

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July 9, 2021

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Q2’21 Consolidated Income Statement

	Q2’21 (Unaudited)	Q1’21	QoQ	Q2’20	YoY
Amount: Million NT$
Net Sales	22,637 100.0%	17,731 100.0% 27.7% 16,489 100.0% 37.3%
Cost of Goods Sold	13,054 57.7%	12,569 70.9% 11,447 69.4%
Gross Margin	9,583 42.3%	5,162 29.1% 85.7% 5,042 30.6% 90.1%
SG&A Expenses	639 2.8%	492 2.8% 574 3.5%
R&D Expenses	1,882 8.3%	1,643 9.3% 1,239 7.5%
Operating Income	7,063 31.2%	3,027 17.1% 133.3% 3,229 19.6% 118.7%
Non-operating Income (Exp.)	-145 -0.6%	307 1.7% 207 1.3%
Income before Tax	6,918 30.6%	3,334 18.8% 107.5% 3,436 20.8% 101.3%
Income Tax Benefit (Expense)	-756 -3.3%	-630 -3.6% -216 -1.3%
Net Income	6,162 27.2%	2,704 15.3% 3,220 19.5%
Earnings Per Share (NT$)	2.00	0.88 1.05
Book Value Per Share(NT$)	51.43	51.00 49.63

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