NTC — Interim / Quarterly Report 2022

Mar 8, 2022

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Nanya Technology Q4 2021 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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Q4’21 Financial Results Summary

Amount in Million NT$, except for EPS & BVPS	Q4’21	Q3’21 QoQ Q4’20 YoY
Net Sales	21,399 100%	23,837 100% -10.2% 14,773100% 44.8%
Gross Profit (Loss)Gross Margin(%)	10,563 49.4%	11,735 49.2% -10.0% 3,251 22.0% 224.9%
Operating Income (Loss) Operating Margin(%)	8,023 37.5%	9,073 38.1% -11.6% 1,304 8.8% 515.5%
EBITDA*EBITDA Margin (%)	11,850 55.4%	12,966 54.4% -8.6% 4,937 33.4% 140.0%
Non-operating Income (Expense)	101 0.5%	316 1.3% -167 -1.1%
Income Tax Benefit (Expense)	-1,670 -7.8%	-1,862 -7.8% -213 -1.4%
Net Income (Loss)Net Margin (%)	6,454 30.2%	7,527 31.6% -14.3% 924 6.3% 598.4%
Earnings Per Share (NT$)	2.08**	2.44 0.30
Book Value Per Share (NT$)	55.85***	53.87 50.02

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 3,095M

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Q4’21 vs. Q3’21 Results Comparison

	Q4’21	Q3’21	QoQ (PPT* Delta)	Remarks
Amount in Million NT$
Net Sales	21,399	23,837 -10.2%  Bit shipment decreased mid-single digits%  ASP decreased low-single digits%
Gross Profit (Loss) Gross Margin(%)	10,563 49.4%	11,735 49.2% 0.2%  Q4’21 Gross profit decreased NT$ 1,172M, mainly due to ASP and shipment decrease
Operating Expense	2,540 11.9%	2,662 11.2% 0.7%  SG&A and R&D expenses decreased NT$ 122M
Operating Income (Loss) Operating Margin(%)	8,023 37.5%	9,073 38.1% -0.6%  Q4’21 OP income decreased NT$ 1,050M
Net Income (Loss) Net Margin (%)	6,454 30.2%	7,527 31.6% -1.4%  Net Income decreased NT$ 1,073M • OP Income decrease of NT$ 1,050M • FX impact: NT$ 193M unfavorable (Q4’21: NT$ -92M; Q3’21: NT$ 101M) • Income tax: NT$ 192M favorable

︱© 2022 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% 49.4%
23,837
47%
44% [44%] 44% 22,637 49.2%
42%41% 21,399
40% 42.3%
39%
20,000 38.1% 40%
35%
17,731 37.5%
33% 32% [33%] 32%
31% 31%
30.6%
28% 28% 16,489 15,324 14,773 31.2%
14,419
27% 29.1%
25%
25.9%
23%
21% 23.8%
25.7% 19.6% 22.0%
18%
17%
15%
17.1%
13.5% 7,527
11.0% 6,163 6,454
12.7% 8.8%
3,220
2,704
1,928
1,613 [924]
- 0%
Revenue, Net Income (Million NT$)
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Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Cash Flows

Q4’21 Q3’21 Unit: Million NT$ Beginning Balance 71,558 67,738 Cash from Operating 13,972 11,041 Activities Capital Expenditures -4,741 -3,801 Financial Activities & -89 -3,420 Others Ending Balance 80,700 71,558 Free Cash Flow[(1)] 9,231 7,240

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

• 1. • NT$ 4.0 billion of dividend payout

• +NT$ 320 million proceeds from treasury stocks

2021 Cash Flow

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Unit: Million NT$

-11,260
-3,873
44,107 Capital
Financial
Expenditures
Activities
& Others
Cash from
Operating 80,700
Activities
51,726
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Jan. 1, 2021 Beginning Balance

Dec. 31, 2021 Ending Balance

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2021 Consolidated Income Statement

	2021	2020	YoY
Amount: Million NT$
Net Sales	85,604 100.0%	61,006 100.0%	40.3%
Cost of Goods Sold	48,560 56.7%	45,314 74.3%
Gross Margin	37,044 43.3%	15,692 25.7%	136.1%
SG&A Expenses	2,358 2.8%	2,119 3.5%
R&D Expenses	7,500 8.8%	5,138 8.4%
Operating Income	27,186 31.8%	8,434 13.8%	222.3%
Non-operating Income (Exp.)	581 0.7%	557 0.9%
Income before Tax	27,767 32.4%	8,991 14.7%	208.8%
Income Tax Benefit (Expense)	-4,918 -5.7%	-1,305 -2.1%
Net Income	22,849 26.7%	7,686 12.6%
EPS(NT$)	7.40	2.51
Book Value Per Share(NT$)	55.85	50.02

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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2021 vs. 2020 Resu lts Comparison

Amount in Million NT$	2021	2020	YoY (PPT Delta)*	Remarks
Net Sales	85,604	61,006 40.3%  Bit shipment relatively flat YoY  ASP increased by >40% YoY  FX negative impact 5.3%
Gross Income (Loss) Gross Margin(%)	37,044 43.3%	15,692 25.7% 17.6%  Gross Income increased by NT$ 21,352M mainly due to ASP increase
Operating Expense	9,858 11.5%	7,257 11.9% -0.4%  SG&A expense increased NT$ 239M, R&D expense increased NT$ 2,362M
Operating Income (Loss) Operating Margin(%)	27,186 31.8%	8,434 13.8% 18.0%  Operating Income increased NT$ 18,752M
Net Income (Loss) Net Margin (%)	22,849 26.7%	7,686 12.6% 14.1%  Net Income increased by NT$ 15,163M mainly due to: • Operating Income increased NT$ 18,752M • FX loss favorable NT$ 432M (2021: NT$ -323M, 2020: NT$ -755M) • Interest income unfavorable NT$ 407M • Income tax unfavorable NT$ 3,613M

*PPT: Percentage Points

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CAPEX & Bit Shipment

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NT$ Billion
28.0
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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Bit Shipment (YoY)
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Capital Expenditure (CAPEX)

• Q4’21 CAPEX NT$ 4.7 billion (B)

• 2021 CAPEX NT$ 11.26B

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

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Bit Shipment

• Q4’21 bit shipment decreased mid-single digits% QoQ

• 2021 YoY bit shipment relatively flat

• 2022 YoY bit shipment expected to be relatively flat

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Market Outlook(2022)

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Outlook

 2022: Demand from Cloud computing, Smartphone, PC and Consumer remain healthy

• Component shortage alleviated in 2H’22, and DDR5 and new CPU gradually increase

• Cautions on high inflation and geopolitical tensions may impact on demand growth

• In general, cautiously optimistic outlook for 2022 DRAM market

Supply

• Q4’21 Suppliers and channel inventory remained low

• 2022 Supplier’s dynamic CAPEX increase could change DRAM supply outlook

Demand

• Server Market: Datacenter continuously driving demand growth, components shortage issue lingering, expect easing in 2H’22, and DDR5 and new CPU start shipment

• Mobile Market: 2022 shipment growth led by both 5G and 4G segments, with 5G leading in flagship, and 4G driven by emerging markets, and average DRAM content growing

• PC Market: NB demand remaining healthy, component shortages and international shipping continue to impact delivery, expect easing in 2H’22

• Consumer Market: Positive outlook for networking, wearables, smart speaker, SSD and TV, VR and new game consoles. Automotive chip shortage expect eased by year end

︱© 2022 Nanya Technology Corporation. All Rights Reserved.

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Nanya Business Review & Outlook

• Named to the Dow Jones Sustainability (DJSI) World Index

• 2021 financial result, revenue NT$ 85.6B, GM 43%, OPM 32%, EPS 7.40

• 2022 DRAM market outlook cautiously optimistic

• 1st 10nm-class technology small volume production expected in Q3’22

• 2nd 10nm-class product development on schedule

• New fab ground-breaking scheduled in 1H’22

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Thanks & Questions

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Q4’21 Consolidated Income Statement

	Q4’21	Q3’21	QoQ	Q4’20	YoY
Amount: Million NT$
Net Sales	21,399 100.0%	23,837 100.0% -10.2% 14,773 100.0% 44.8%
Cost of Goods Sold	10,836 50.6%	12,102 50.8% 11,522 78.0%
Gross Margin	10,563 49.4%	11,735 49.2% -10.0% 3,251 22.0% 224.9%
SG&A Expenses	584 2.7%	642 2.7% 509 3.4%
R&D Expenses	1,956 9.1%	2,020 8.5% 1,439 9.7%
Operating Income	8,023 37.5%	9,073 38.1% -11.6% 1,304 8.8% 515.5%
Non-operating Income (Exp.)	101 0.5%	316 1.3% -167 -1.1%
Income before Tax	8,125 38.0%	9,389 39.4% -13.5% 1,137 7.7% 614.7%
Income Tax Benefit (Expense)	-1,670 -7.8%	-1,862 -7.8% -213 -1.4%
Net Income	6,454 30.2%	7,527 31.6% -14.3% 924 6.3%
Earnings Per Share (NT$)	2.08	2.44 0.30
Book Value Per Share(NT$)	55.85	53.87 50.02

︱© 2022 Nanya Technology Corporation. All Rights Reserved.