NTC — Interim / Quarterly Report 2018

Jan 31, 2019

Nuvoton Technology Corporation

2H’18 Investor Conference

January 31, 2019

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’18 Business Results &

2019 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’18	4Q’18	3Q’18	3Q’18	2H’18	2H’18	2H’17	2H’17		YoY
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%		Amount	%
Net Revenue	2,471	100	2,642	100	5,113	100	4,706	100		407	9
Gross Profit	975	39	1,041	39	2,016	39	1,934	41		82	4
Operating Income	199	8	221	8	420	8	378	8		42	11
Net Non-Operating Income	3	0	1	0	4	0	24	1		(20)	(83)
Income before Income Tax	202	8	222	8	424	8	402	9		22	5
Net Income	155	6	194	7	349	7	349	7		0	0
EPS (NTD)	0.74		0.94		1.68		1.68			0

Note: Weighted average outstanding shares were 207.5M units in 2H’18.

Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

	Y2018		Y2017			YoY
Unit: NT$ M	Amount	%	Amount	%		Amount	%
Net Revenue	10,040	100	9,235	100		805		9
Gross Profit	3,913	39	3,733	40		180		5
Operating Income	755	7	714	7		41		6
Net Non-Operating Income	84	1	86	1		(2)		(2)
Income before Income Tax	839	8	799	8		40		5
Net Income	711	7	688	7		23		3
EPS (NTD)	3.42		3.32			0.1

Note: Weighted average outstanding shares were 207.5M units in 2H’18.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

Cash & Cash Equivalents 1,544 25 1,632 25	(88) (5)
Accounts Receivable 997 16 1,067 16	(70) (7)
Other Receivable 181 3 284 4	(103) (36)
Inventories 1,561 26 1,683 26	(122) (7)
Long-Term Investments 539 9 580 9	(41) (7)
Property, Plant and Equipment 748 12 712 11	36 5
Others 548 9 605 9 Total Assets 6,117 100 6,563 100	(57) (9) (446) (7)
Current Liabilities 1,915 31 2,618 40	(703) (27)
Non-Current Liabilities 468 8 451 7	17 4
Total Liabilities 2,383 39 3,069 47	(686) (22)
Total Equity 3,734 61 3,495 53	239 7
Current Ratio 2.33 1.86
Debt/Equity Ratio 0.64 0.88

Nuvoton Consolidated Statement of Cash Flows

	2H’18	1H’18		HoH
Unit: NT$ M	Amount	Amount		Amount
Cash Flows from Operating Activities	545	328		217
Cash Flows from Investing Activities	(107)	(114)		7
Cash Flows from Financing Activities	(519)	0		(519)
Cash & Cash Equivalents	1,544	1,632		(88)

Nuvoton Revenue and GM Trend - Consolidated

Revenue/Gross Profit (NT$ M)

Gross Margin Rate

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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%	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 2,243 2,684 2,642 2,471 692 829 738 637 720 794 816 719 769 943 851 846 806 9921,017 917 859 1,038 1,041 975 42.8%43.8% 41.2%41.9% 44.1% 41.3% 41.1% 40.6% 41.5%42.4% 39.6%40.2% 38.0% 41.2%42.2% 39.9% 38.3%38.7% 39.4% 39.5%

Nuvoton 2H’18 Business Results & 2019 Business Outlook

• 2H’18 Revenue by Product

• 2H’18 Revenue by Application

• Nuvoton 2H’18 Business Results

• Nuvoton 2019 Business Outlook

Nuvoton Revenue and EPS Trend- 10 Years

Net Sale NT$M

2,000 4,000 6,000 8,000 10,000 12,000 le NT$M	7,091 7,941 7,342 7,413 6,809 6,822 7,313 8,329 9,235 10,040 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net sales 1.72 4.13 2.05 3.02 1.25 1.65 2.26 2.95 3.32 3.42 1.0 EPS

11

2H’18 Revenue by Product

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Non-MCU
22%
HoH %
25%
MCU 3%
Non-MCU -3%
75%
78%
MCU
Non-MCU
22%
27%
YoY %
MCU 5%
Non-MCU -5%
73%
78%
MCU
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Note: Foundry revenue was not included in the numbers .

2H’18 Revenue by Application

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Car, Ind., Auto
Computer
27%
27%
44%
42%
3%
3%
Communication &
28%
Others
26%
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HoH %
Computer	2%
Consumer	-2%
Communication & Others	0%
Car,Industry& Auto	0%

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Consumer
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Computer
Car, Ind., Auto
27%
26%
44%
43%
3%
3%
Communication &
28%
Others
26%
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YoY %
Computer 1%
Consumer -2%
Communication & Others 0%
Car, Industry & Auto 1%
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Consumer

Note: Foundry revenue was not included in the numbers .

Nuvoton 2H’18 Business Results (1)

2H’18 YoY : Revenue + 9%, Gross Margin -1.67 %

• Key reasons for Revenue YoY Increase

• Growth of NuMicro MCU applying on Selected and Multi-Market Applications

• Growth of NuMicro Arm[® ] Cortex[®] 32-bit MCU and MPU SoC applying on Industrial Control

• Shipments of BMC (Baseboard Management Controller) for Server

• Key reason for Gross Margin YoY Decrease

• Product Mix

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

Nuvoton 2H’18 Business Results (2)

• 2H’18 Main Achievements

• Launch NuMicro® M2351 IoT Security Microcontroller Series based on the ARM Cortex-M23 TrustZone® empowered technology

• Shipments of Arm® Cortex® M4 based Audio MCU for game consoles manufacture

• Shipments of BMC products, supports Intel Purley server platforms, integrating highest performance duo-core Arm® Cortex® A9 processor

• Mass production of High Voltage Process 60V/80V and 600V UHV (Foundry Service)

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

Nuvoton 2019 Business Outlook

• New Products and Developments

• NuMicro Arm® Cortex®-M based MCU for low-power applications, applying on HMI, industry control, consumer devices and multi-markets

• High performance Arm® Cortex® M4 based Audio MCU for smart home voice recognition applications

• OpenBMC firmware contributed by OCP(Open Compute Project)members supports BMC products to gain market shares

• New Foundry Service Processes

• Mass production of GaN on Si technology

• Developments of HVIC process from 120V to 600V

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

Questions & Answers

Company website Nuvoton: www.nuvoton.com