NTC — Interim / Quarterly Report 2017

Feb 2, 2018

Nuvoton Technology Corporation

2H’17 Investor Conference

February 2, 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 2H’17 Business Results &

• 2018 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.

	4Q’17	4Q’17	3Q’17	3Q’17	2H’17	2H’17	2H’16	2H’16		YoY
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%		Amount	%
Net Revenue	2,296	100	2,410	100	4,706	100	4,254	100		452	11
Gross Profit	917	40	1,017	42	1,934	41	1,697	40		237	14
Operating Income	155	7	223	9	378	8	276	6		102	37
Net Non-Operating Income	5	0	19	1	24	1	23	1		1	4
Income before Income Tax	160	7	242	10	402	9	299	7		103	34
Net Income	144	6	205	9	349	7	274	6		75	27
EPS (NTD)	0.70		0.99		1.69		1.32			0.37

Note: Weighted average outstanding shares were 207.5M units in 2H’17.

Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

	Y2017		Y2016			YoY
Unit: NT$ M	Amount	%	Amount	%		Amount	%
Net Revenue	9,235	100	8,329	100		906	11
Gross Profit	3,733	40	3,408	41		325	10
Operating Income	714	7	605	8		109	18
Net Non-Operating Income	86	1	104	1		(18)	(17)
Income before Income Tax	799	8	709	9		90	13
Net Income	688	7	613	8		75	12
EPS (NTD)	3.32		2.95			0.37

Note: Weighted average outstanding shares were 207.5M units in 2H’17.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

Cash & Cash Equivalents 1,417 23 1,551 25	(134) (9)
Accounts Receivable 794 13 967 16	(173) (18)
Other Receivable 376 6 248 4	128 52
Inventories 1,634 26 1,537 25	97 6
Long-Term Investments 591 10 545 9	46 8
Property, Plant and Equipment 699 11 685 11	14 2
Others 638 11 660 10 Total Assets 6,149 100 6,193 100	(22) (3) (44) (1)
Current Liabilities 1,987 32 2,370 38	(383) (16)
Non-Current Liabilities 499 8 532 9	(33) (6)
Total Liabilities 2,486 40 2,902 47	(416) (14)
Total Equity 3,663 60 3,291 53	372 11
Current Ratio 2.24 1.91
Debt/Equity Ratio 0.68 0.88

Nuvoton Consolidated Statement of Cash Flows

	2H’17	1H’17		HoH
Unit: NT$ M	Amount	Amount		Amount
Cash Flows from Operating Activities	496	(117)		613
Cash Flows from Investing Activities	(124)	(209)		85
Cash Flows from Financing Activities	(498)	0		(498)
Cash & Cash Equivalents	1,417	1,551		(134)

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

Gross Margin Rate

1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%	1,639 1,901 1,744 1,526 1,618 1,894 1,792 1,519 1,632 1,9241,987 1,770 1,852 2,223 2,150 2,105 2,123 2,406 2,410 2,296 666 803 700 617 692 829 738 637 720 794816 719769 943 851846806 9921,017 917 41% 42% 40%40% 43%44% 41%42% 44% 41% 41% 41%42% 42% 40%40% 38% 41%42% 40%

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Revenue Gross Profit GM%

Nuvoton 2H’17 Business Results & 2018 Business Outlook

• 2H’17 Revenue by Products

• 2H’17 Revenue by Applications

• Nuvoton 2H’17 Business Results

• Nuvoton 2018 Business Outlook

2H’17 Revenue by Products

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Non-MCU 27%
27% HoH %
MCU 0%
Non-MCU 0%
73%
73%
MCU
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Non-MCU 27%
28%
72%
73%
MCU
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YoY %
MCU 1%
Non-MCU -1%
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Note: Foundry revenue was not included in the numbers .

2H’17 Revenue by Applications

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Car, Ind., Auto
Computer
26%
24%
40% 43%
4%
3%
Communication
& Others 32%
28%
Consumer
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HoH %
Computer	3%
Consumer	-4%
Communication & Others	-1%
Car, Industry& Auto	2%

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Computer
Car, Ind.,
Auto
26%
24%
43%
45%
3%
3%
Communication
& Others 28%
28%
Consumer
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YoY %
Computer -2%
Consumer 0%
Communication & Others 0%
Car, Industry & Auto 2%
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Note: Foundry revenue was not included in the numbers .

Nuvoton 2H’17 Business Results (1)

  - **2H’17 YoY : Revenue + 11%, Gross Margin + 1.2 %, EPS + 0.37**

• Key reasons for Revenue YoY Increase

• Growth of NuMicro Arm® Cortex® - M0 based 32-bit 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 TPM 2.0 for PC, EC for Chromebook and BMC (Baseboard Management Controller) for Server

• Key reasons for Gross Margin YoY Increase

• Product Mix

Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

•

Nuvoton 2H’17 Business Results (2)

2H’17 Main Achievements

• Shipments of NuMicro Arm® Cortex® - M0 based 32-bit MCU for Emerging and Multi- Market Applications

• Shipments of NuMicro Arm® Cortex® - M4 based 32-bit MCU and MPU SoC for Industrial Control

• Shipments of Ultra-Low Power Audio CODEC for tablet and laptop

• Shipments of EC for Chromebook and TPM 2.0 for Desktop, Laptop

• Mass Production of 3rd generation BMC products, supports Intel Purley server platforms, integrating highest performance duo-core Arm® Cortex® A9 processor

• GaN on Si products are under customer verification testing (Foundry Service)

Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

Nuvoton 2018 Business Outlook

• New Products

• NuMicro Arm® Cortex®-M based MCU applying on HMI, Industry Control, and Multi-Market

• High performance Arm® Cortex® M4 based Audio MCU for Game Consoles and Smart Speakers

• New Foundry Service Processes

− 0.5um UHV process for LED Lighting IC

• 0.35um HVIC process for Motor Driver IC

Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

Revenue Trend

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Net Sales NT$M EPS NT$
10,000 4.5
9,000 4.0
8,000
3.5
7,000
3.0
6,000
2.5
5,000
2.0
4,000
1.5
3,000
1.0
2,000
0.5
1,000
0.0
2010 2011 2012 2013 2014 2015 2016 2017(f)2017
Net sales Poly. (Net sales)
7,941 7,342 7,413 6,809 6,822 7,313 8,329 9,235
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Revenue & EPS Trend

4.13	4.13	4.13	4.13	4.13	4.13	4.13	4.13
3.32
3.02 2.95
226
2.05 .
1.65
1.25
1 2 3 9 2 3 9 5
7,94 7,34 7,41 6,80 6,82 7,31 8,32 9,23

Questions & Answers

Company website Nuvoton: www.nuvoton.com