NTC — Interim / Quarterly Report 2022

May 25, 2022

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Nanya Technology Q1 2022 Investor Conference

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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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.

︱© 2022 Nanya Technology Corporation. All Rights Reserved. ︱NTC Proprietary & Confidential︱

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Q1’22 Financial Results Summary

Amount in Million NT$, except for EPS & BVPS	Q1’22	Q4’21 QoQ Q1’21 YoY
Net Sales	19,946 100%	21,399 100% -6.8% 17,731100% 12.5%
Gross Profit (Loss)Gross Margin(%)	8,750 43.9%	10,563 49.4% -17.2% 5,162 29.1% 69.5%
Operating Income (Loss) Operating Margin(%)	6,262 31.4%	8,023 37.5% -22.0% 3,027 17.1% 106.9%
EBITDA*EBITDA Margin (%)	10,105 50.7%	11,850 55.4% -14.7% 6,769 38.2% 49.3%
Non-operating Income (Expense)	1,766 8.9%	101 0.5% 307 1.7%
Income Tax Benefit (Expense)	-1,478 -7.4%	-1,670 -7.8% -630 -3.6%
Net Income (Loss)Net Margin (%)	6,550 32.8%	6,454 30.2% 1.5% 2,704 15.3% 142.2%
Earnings Per Share (NT$)	2.11**	2.08 0.88
Book Value Per Share (NT$)	58.45***	55.85 51.00

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

*** BVPS is calculated based on 3,097M outstanding shares

** EPS is based on weighted average outstanding shares of 3,097M

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Q1’22 vs. Q4’21 Results Comparison

	Q1’22	Q4’21	QoQ (PPT* Delta)	Remarks
Amount in Million NT$
Net Sales	19,946	21,399 -6.8%  Bit shipment decreased 1.0%  ASP decreased mid-single digits%  FX positive on revenue 0.5%
Gross Profit (Loss) Gross Margin(%)	8,750 43.9%	10,563 49.4% -5.5%  Q1’22 Gross profit decreased NT$ 1,813M, mainly due to ASP decrease
Operating Expense	2,488 12.5%	2,540 11.9% 0.6%  Operating expenses decreased NT$ 52M
Operating Income (Loss) Operating Margin(%)	6,262 31.4%	8,023 37.5% -6.1%  Q1’22 OP income decreased NT$ 1,761M
Net Income (Loss) Net Margin (%)	6,550 32.8%	6,454 30.2% 2.6%  Net Income increased NT$ 96M • OP Income decreased NT$ 1,761M • FX favorable NT$ 1,093M (Q1’22: NT$ 1,001M; Q4’21: NT$ -92M) • Facility expense reduction NT$ 514M • Income tax decreased NT$ 192M

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

*PPT: Percentage Points

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Quarterly Financial Highlights

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Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%) Operating Margin(%)
59%
55%
53%
52%
51%
49.4%
49.2%
47%
44%
42% 42.3% 21,399 43.9%
41%
20,000 38.1% 37.5% 19,946 40%
35%
31.2%
30.6% 29.1%
28% 31.4%
27%
25.7% 25.9%
23% 23.8% 22.0%
19.6%
17.1%
15%
13.5% 6,550
6,454
11.0% [12.7%]
8.8%
- 0%
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
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︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Cash Flows

	Q1’22	Q4’21	Q1’21 51,726 8,388 -1,485 484 59,113 6,903
Unit: Million NT$
Beginning Balance	80,700	71,558
Cash from Operating Activities	11,318 -1,165 *1,684	13,972
Capital expenditures		-4,741
Financial Activities & others		-89
Ending Balance	92,537	80,700
Free Cash Flow(1)	10,153	9,231

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

* NT$ 1.76 billion effect of exchange rate changes on cash and cash equivalents

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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CAPEX & Bit Shipment

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NT$ Billion
28.4
20.4
11.3
8.5
5.5
2018 2019 2020 2021 2022 E
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CAPEX
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Mid-thirties % Mid-thirties%
Low-
teens%
~ Flat ~ Flat
2018 2019 2020 2021 2022 E
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Mid-thirties %
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Bit Shipment (YoY)
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Capital Expenditure (CAPEX)

• Q1’22 CAPEX NT$ 1.2 billion (B)

• BoD approved 2022 CAPEX plan up to NT$ 28.4B

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Bit Shipment

• Q1’22 bit shipment decreased by 1.0% QoQ

• 2022 YoY bit shipment expected to be relatively flat

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

Market Outlook(Q2’2022)

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Outlook

• Q2’22: Continuously strong Cloud demand, Consumer remain healthy, as Smartphone and PC softening due to seasonality and global uncertainty

• 2H’22: Component shortage alleviating and DDR5 supply increasing

• 2H’22: Russia-Ukraine Conflict, high inflations and China lockdowns may impact overall demand

Supply

• Suppliers’ inventory remaining low; Suppliers’ CAPEX dynamic adjustments may affect supply growth

Demand

• Server Market: Datacenter leading demand growth and DDR5 shipment start 2H’22

• Mobile Market: 5G models penetration growing, and average DRAM content increasing, however shipment momentum tapering

• PC Market: Enterprise and gaming demand remain solid, while consumer demand soften

• Consumer Market: Positive outlook for networking, wearables, and smart home devices. Automotive still dragged by supply chain issue

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Nanya Business Review & Outlook

Finance

• Cash dividend NT$ 3.7/share approximately

• Q1’22 EPS NT$ 2.11/share

Operation

• 1st and 2nd 10nm-class product development on schedule

• 2022 CAPEX plan up to NT$ 28.4B

• Signed 250 Million kWh Renewable energy purchase agreement

• Maintain appropriate inventories of Laser Gas Mixtures

Market Outlook

• Russia-Ukraine conflict, high inflations and China lockdowns may impact overall demand

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Thanks & Questions

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Q1’22 Consolidated Income Statement

	Q1’22	Q4’21	QoQ	Q1’21	YoY
Amount: Million NT$
Net Sales	19,946 100.0%	21,399 100.0% -6.8% 17,731 100.0% 12.5%
Cost of Goods Sold	11,196 56.1%	10,836 50.6% 12,569 70.9%
Gross Margin	8,750 43.9%	10,563 49.4% -17.2% 5,162 29.1% 69.5%
SG&A Expenses	594 3.0%	584 2.7% 492 2.8%
R&D Expenses	1,895 9.5%	1,956 9.1% 1,643 9.3%
Operating Income	6,262 31.4%	8,023 37.5% -22.0% 3,027 17.1% 106.9%
Non-operating Income (Exp.)	1,766 8.9%	101 0.5% 307 1.7%
Income before Tax	8,028 40.2%	8,125 38.0% -1.2% 3,334 18.8% 140.8%
Income Tax Benefit (Expense)	-1,478 -7.4%	-1,670 -7.8% -630 -3.6%
Net Income	6,550 32.8%	6,454 30.2% 1.5% 2,704 15.3%
Earnings Per Share (NT$)	2.11	2.08 0.88
Book Value Per Share(NT$)	58.45	55.85 51.00

︱© 2022 Nanya Technology Corporation. All Rights Reserved.