Nuvoton Technology Corporation

1H’18 Investor Conference July 27, 2018

Safe Harbor Notice

• We have made forward-looking statements in this presentation. Our forward-looking statements contain information regarding, among other things, our financial condition, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projects are reasonable, such forward-looking statements are inherently subject to risks, uncertainties and assumptions about us.

• We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future event or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

The information contained herein shall also not constitute an offer to sell or a solicitation of an offer to buy the company’s securities nor shall there be any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country.

Agenda

Nuvoton Financial Results
Nuvoton 1H’18 Business Results & 2H’18 Business Outlook
Q&A

Nuvoton Financial Results

Nuvoton Consolidated Statement of Comprehensive Income
Nuvoton Consolidated Balance Sheet
Nuvoton Consolidated Statement of Cash Flows
Nuvoton Revenue and GM Trend - Consolidated

Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

	2Q’18	2Q’18	1Q’18	1Q’18	1H’18	1H’18	1H’17	1H’17	YoY
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%	Amount	%
Net Revenue	2,684	100	2,243	100	4,927	100	4,529	100	398	9
Gross Profit	1,038	39	859	38	1,897	39	1,799	40	98	5
Operating Income	232	9	103	5	335	7	335	8	-	-
Net Non-Operating Income	76	3	3	-	80	1	62	1	18	29
Income before Income Tax	308	12	107	5	414	8	397	9	17	4
Net Income	261	10	100	4	361	7	339	7	22	6
EPS (NTD)	1.26		0.48		1.74		1.63		0.11

Note: Weighted average outstanding shares were 207.5M units in 1H’18.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

Cash & Cash Equivalents 1,632 25 1,417 23	215 15
Accounts Receivable 1,067 16 794 13	273 34
Other Receivable 284 4 376 6	(92) (25)
Inventories 1,683 26 1,634 26	49 3
Long-Term Investments 580 9 591 10	(11) (2)
Property, Plant and Equipment 712 11 699 11	13 2
Others 605 9 638 11 Total Assets 6,563 100 6,149 100	(33) (5) 414 7
Current Liabilities 2,618 40 1,987 32	631 32
Non-Current Liabilities 451 7 499 8	(48) (10)
Total Liabilities 3,069 47 2,486 40	583 23
Total Equity 3,495 53 3,663 60	(168) (5)
Current Ratio 1.86 2.24
Debt/Equity Ratio 0.88 0.68

Nuvoton Consolidated Statement of Cash Flows

	1H’18	2H’17	HoH
Unit: NT$ M	Amount	Amount	Amount
Cash Flows from Operating Activities	328	496	(168)
Cash Flows from Investing Activities	(114)	(124)	10
Cash Flows from Financing Activities	-	(498)	498
Cash & Cash Equivalents	1,632	1,417	215

Nuvoton Revenue and GM Trend - Consolidated Revenue/Gross Profit (NT$ M) Gross Margin Rate

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3,000 50.0%
44.1% 2,684
42.8% [43.8%]
41.2% [41.9%] 41.2% [42.2%]
41.3% 41.1% 40.6% [41.5% 42.4%]
39.6% [40.2%] 39.9%
2,500 2,406 2,410
2,223 38.0% 2,296 2,243 38.3% [38.7%] 40.0%
2,150 2,105 2,123
2,000 1,894 1,924 [1,987 ]
1,852
1,792 1,770
30.0%
1,618 1,632
1,519
1,500
20.0%
1,038
992 [1,017 ]
1,000 943 917
829 794 816 769 851 846 806 859
738 720 719
692
637
10.0%
500
0 0.0%
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q17 3Q17 4Q17 1Q18 2Q18
Revenue Gross Profit GM%
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Nuvoton 1H’18 Business Results & 2H’18 Business Outlook

1H’18 Revenue by Product
1H’18 Revenue by Application
Nuvoton 1H’18 Business Results
Nuvoton 2H’18 Business Outlook

1H’18 Revenue by Product

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Non-MCU 25%
27%
73%
75%
MCU
Non-MCU 25%
27%
73%
75%
MCU
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HoH %
MCU 2%
Non-MCU -2%
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YoY %
MCU 2%
Non-MCU -2%
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Note: Foundry revenue was not included in the numbers .

1H’18 Revenue by Application

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Car, Ind., Auto
Computer
27%
25%
41%
43%
4%
4%
Communication
28%
& Others
28%
Consumer
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	HoH %
Computer		-2%
Consumer		0%

Communication & Others		0%

Car, Industry& Auto		2%

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Car, Ind., Auto Computer
27%
23%
42%
41%
4%
4%
Communication
32%
& Others
27%
Consumer
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	YoY %
Computer		1%
Consumer		-5%

Communication & Others		0%

Car, Industry& Auto		4%

Note: Foundry revenue was not included in the numbers .

Nuvoton 1H’18 Business Results (1)

1H’18 YoY : Revenue + 9%, Gross Margin -1.2 %, EPS + 0.11

Key reasons for Revenue YoY Increase
Growth of NuMicro MCU applying on Selected and Multi-Market Applications
Growth of NuMicro Arm[® ] Cortex[®] M4 based 32-bit MCU and MPU SoC applying on Industrial Control
Shipments of EC for Chromebook and BMC (Baseboard Management Controller) for Server
Key reason for Gross Margin YoY Decrease
Product Mix

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