NTC — Interim / Quarterly Report 2021

Nov 5, 2021

Nuvoton Technology Corporation

3Q’21 Investor Conference

November 5, 2021

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Agenda

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Nuvoton Financial Results

Nuvoton Technology Corporation Japan Highlight

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Nuvoton 3Q’21 Business Update

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Q&A

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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.

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Nuvoton Financial Results

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Statement of Comprehensive Income - Consolidated

				Selected Items from Statement of Comprehensive Income.	Selected Items from Statement of Comprehensive Income.	Selected Items from Statement of Comprehensive Income.	Selected Items from Statement of Comprehensive Income.	Selected Items from Statement of Comprehensive Income.
	3Q’21		2Q’21		QoQ		YTD
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%
Net Revenue	10,380	100	10,615	100	(235)	0	31,067	100
Gross Profit	4,266	41	4,342	41	(76)	0	12,528	40
Operating Income	817	8	916	8	(99)	0	2,113	7
Non-Operating Income	17	0	191	2	(174)	(2)	217	1
Income before Income Tax	834	8	1,106	10	(272)	(2)	2,330	8
Net Income	642	6	939	9	(297)	(3)	1,852	6
EPS (NTD)	1.56		2.36				4.63

Note: Weighted average outstanding shares were 412.1M units in 3Q’21 and 397.6M units in 2Q’21.

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Balance Sheet - Consolidated

Selected Items from Balance Sheet.

Sep 30 ’21 June 30 ’21 QoQ Unit: NT$ M Amount % Amount % Amount Cash & Cash Equivalents 6,370 20 6,270 20 100	Sep 30 ’21 June 30 ’21 QoQ Unit: NT$ M Amount % Amount % Amount Cash & Cash Equivalents 6,370 20 6,270 20 100	Sep 30 ’21 June 30 ’21 QoQ Unit: NT$ M Amount % Amount % Amount Cash & Cash Equivalents 6,370 20 6,270 20 100
	6,370 20
Accounts Receivable	4,775 15	4,590 15 185
Other Receivable	895 3	1,034 4 (139)
Inventories	6,776 21	6,280 20 496
Long-Term Investments	2,487 8	2,388 8 99
Property, Plant, Equipment and R.O.U	8,857 28	9,116 29 (259)
Others Total Assets	1,489 5 31,649 100	1,429 4 60 31,107 100 542
Current Liabilities	9,815 31	9,936 32 (121)
Non-Current Liabilities	7,562 24	7,779 25 (217)
Total Liabilities	17,377 55	17,714 57 (337)
Total Equity	14,272 45	13,392 43 880
Debt/Equity Ratio	122	132
. .	.

Statement of Cash Flows - Consolidated

	3Q’21	2Q’21	QoQ
Unit: NT$ M	Amount	Amount	Amount
Cash Flows from Operating Activities	822	930	(108)
Cash Flows from Investing Activities	(170)	1,046	(1,216)
Cash Flows from Financing Activities	(474)	(1,039)	565
Cash & Cash Equivalents	6,370	6,270	100

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Revenue and GM Trend - Consolidated

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Revenue/Gross Profit (NT$ M) Gross Margin
15,000 50.0%
41.2% 40.9% 41.1%
39.6%
38.9%
36.9% 40.0%
35.8%
10,615
10,380
10,072
9,869
10,000
Revenue 30.0%
Gross Profit
GM%
5,605
20.0%
4,342 4,266
5,000
3,920
3,534
3,061
2133 2,066 10.0%
1,262
844
0 0.0%
1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21
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Revenue by 4C Application

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Automotive & Industrial
Computer
18%
28%
38%
42%
22%
8%
Consumer
22%
22%
Communication & Others
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Application
Computer
Consumer
Communication & Others
Automotive & Industrial
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Increased Percentage in Communication and Auto & Industry Sectors

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Nuvoton Technology Corporation Japan Highlight

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Focus Market and NTCJ Contribution

1.New Energy (Li-B)

2.Smart mobility & Robotics

3.Smart Life

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(KMWh) Carbon neutral (TOPS) x1,000 (PCS) (Munit)
500
- Carbon neutral accelerates 'Autonomous' evolution leads to - IOT Home appliance and heath
market expansion x5 - Sensor demand increase care market expansion
- - -
A huge reuse market emerges AI processing increase at edge Security regulation proceeds x2
400 1,000
Smart
IOT
mobility
x20 Healthcare
300 100
Reuse 20
Li-B
IOT
AMR
Li-B
H/A
200 10
10 Robotics
100 1 1
TOPS PCS
2016 2020 2030 2015 2020 2030 2017 2020 2030
NTCJ Contribution NTCJ Contribution NTCJ Contribution
Creation of businesses that Providing smarter and Providing highly reliable
support carbon neutrality simpler solutions and efficient solutions
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Achievement topics products, overview in the focus market

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Focus Market NTCJ New Products
Component BG
・
CSP MOSFET for car audio
New Energy LIB/FC
Visual Sensing BG
・
Automotive rear sensing camera IC
functional safety : ASIL-B
Smart mobility, Robotics
Battery Application BG
・
4th generation BM-IC for automotive
functional safety : ASIL-D
Edge IoT security BG
・
Smart Life USB4 Re-Timer with 40Gbps performance
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New Energy market

NTCJ‘s BMIC is in a strong position for automotive. ⇒ Expanding to smart mobility & ESS market

Major Car-OEM(JP, EU, CN) >9 companies

Smart BMS configuration

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Conventional
Main parts: 7 Main parts: 2
Hi-side Driver
BMIC-22ch
Isolator Hi-side Driver Already shipping
Smart
BMIC-15ch BM-IC KA49522A
MCU
BMIC-15ch
MCU
・・・
・・・
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Fast development kit

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Delivering Completed design

- BMS Reference for customer business consisting of BM-IC, MCU and Software

Fast Development kit for China and Taiwan

e-Bike/e-Scooter market

Discussing 70+ customers in collaboration in WW Some project already started business. Starting biz will gradually increase toward ‘22.

ESS market

Focus on CN & TW ESS players - Discussing with

China : Top 10 ESS suppliers for base station and server system Taiwan : 3 ESS suppliers ESS : E nergy S torage S ystem

Smart Mobility market

Sensing solution(ToF)

TOF : T ime O f F light

NTCJ ToF sensor developed the automotive use. ⇒ Sensing application rapidly increasing in WW

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Smart Mobility Market growth (2022～2024)
Expanding
The use case AMR X9
of our
ToF Solution
Face ID X2
2021 main business
Driver monitor x3
Automotive: 2
Infrastructure, Robots: 5
2020 2021 2022
Completed TOF solution ToF sensor
-sensor, reference design, software
Optimize for customer needs
- HW/SW support with eco system
Reference design
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On going 20 major customers in WW Some of Customers biz will starting in ‘22

MOSFET solution

NTCJ is the No. 1 supplier of MOSFETs for mobile. ⇒ Expanding to Automotive market.

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Automotive Audio
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High reliability & withstanding Optimize for customer needs - Speedy support - Solution proposal - New technology MOSFET

Automotive new application expectation over 170 M units (MOSFET)

CAGR ‘ ( 21 – ‘25) +420% collaborated with major partners to create new application 2025 ※NTCJ Estimation based on the market research

Smart Life market

Next-generation USB4 NTCJ is the No. 1 supplier of HDMI ICs for home video game consoles and AV equipment. ⇒ Creating to new market with new IC

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- Leading Edge Technology (Patents) - Experiences of high speed design - Analog signal I/F

-USB4 will be adopted USB4 Re-Timer market from next-generation PCs. over 300M units -Collaboration with leading processor manufacturers -Mass production chip 2024 tape out in November

※NTCJ Estimation based on the market research

Surveillance camera Driver-IC

NTCJ MTD has been strong position for MFP ⇒ Expanding for growing market.

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All-in One Solution for driving (Iris/Zoom/Focus)
- Small footprint
Actuator M M M - Silent drive
- Easy design
Stepper
Stepper
-
Expanding share up for current customer
-Discussing other customers
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WW top surveillance camera manufacturers WW camera share over 50% in total of Top 4 companies share now biz expansion 1 21% ✔ 2 12% ✔ 3 10% ✔ 4 9% ✔ others 48% ✔	WW top surveillance camera manufacturers WW camera share over 50% in total of Top 4 companies share now biz expansion 1 21% ✔ 2 12% ✔ 3 10% ✔ 4 9% ✔ others 48% ✔	WW top surveillance camera manufacturers WW camera share over 50% in total of Top 4 companies share now biz expansion 1 21% ✔ 2 12% ✔ 3 10% ✔ 4 9% ✔ others 48% ✔
1	21%	✔
2	12%	✔
3	10%
4	9%	✔
others	48%

NTCJ’s Major Automotive solutions (Smart mobility & New Energy)

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Behavior & Motion sensing HMI System
5 years of business 15 years of business
Graphic Cluster
Processor
HUD
eMirror
ToF sensor
HVAC
ADAS sensing
Rear camera
10 years of business Audio &
Sensing Radio IC
Processor
MCU
BM-IC
MOSFET
Analogs
-
BM System
10 years of business Battery pack
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NTCJ@Kyoto
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比叡山 延暦寺
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’3/Nov/2021, Photo Taken by NTCJ
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Nuvoton 3Q’21 Business Update

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Nuvoton 3Q’21 Business Update (1)

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MCU
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• For Industrial Control Connectivity, M031BT/M032BT, M0-based BLE 5.0 and 2.4GHz dual-mode MCU passed BLE 5.1 certification to ensure the quality of the Bluetooth connection

• For 5G Base Station, released M031G, M0-based GPON[1] SFP[2] MCU with hardware pilot tone functions

• Development of the high-performance and low-power MCU series for the new emerging applications

• Development of high processing power MPU by Arm® Cortex®-A35 core for Industrial Edge Gateway applications

• *1 GPON: Gigabit-capable Passive Optical Network

• *2 SFP : Small form-factor pluggable transceiver

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Nuvoton 3Q’21 Business Update (2)

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Smart Home
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• Development of the Expanded Audio CODEC NAU88L25 for Google Chromebook on both Alder Lake and Japser Lake platforms

• Development of highly integrated Audio MCU as a true single chip solution for headset and gaming controller applications

• Development of industrial grade NSP2.0 Voice Prompt solution with voice contents field updateable via BLE or Wi-Fi

• Development of high power Smart Amplifier NAU83G60 for automotive market

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Nuvoton 3Q’21 Business Update (3)

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Cloud Security
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• Strong demand for commercial PC (Office Re-open)

 Healthy growth on BMC products for both Enterprise and Hyperscale Data Centers

• New SIO/EC product released for client PC based on new Intel & AMD platforms

• Development of high performance next-generation BMC is on schedule

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6”-Fab Foundry
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• Significant demands on Power Management IC process

• Expansion of new customers on Half bridge HVIC process for HV gate driver application

• Development of new generation BCD process for DC/DC application

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Nuvoton 3Q’21 Business Update (4)

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Component
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• Started business of high-power blue-violet laser diode for Japanese high-end exposure system

• Released CSP MOSFET withstanding high power for car audio system

• Developing high power Infra-red Laser Diodes for light source of fiber laser

• Started to submit Engineering Samples of high performance RF-GaN power amplifier module for 5G massive MIMO base transceiver station

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Visual Sensing
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• Chinese camera maker released 8k camera in the worldwide using our large size 8k Image Sensor

• Mass-production of the LSI for automotive rear sensing camera

• Development of new TOF image sensor with the long range sensing for AMR and human monitoring

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Nuvoton 3Q’21 Business Update (5)

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Battery and Analog Solutions
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• Chinese OEM expands EV lineup on BMS platform based on our BM-IC and ranks in the top 10 of EV sales

• Increased inquiries about one-chip motor driver ICs for zoom focus control and iris control of surveillance

• cameras

• Provided engineering sample of 4th generation automotive BM-IC, and started to evaluate new BMS system in collaboration with leading customers

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IoT with Security
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• Launched new inverter control MCU for home appliance with 120MHz performance, 256k bytes instruction memory and safety functions

• Development of the USB4 Re-Timer with 40Gbps performance for both the PC and the cable applications

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Questions & Answers

Company website Nuvoton: www.nuvoton.com

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