NTC — Interim / Quarterly Report 2021

Aug 5, 2021

Nuvoton Technology Corporation

1H’21 Investor Conference

August 4, 2021

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Agenda

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Nuvoton Financial Results

Nuvoton Technology Corporation Japan Highlight

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Nuvoton 1H’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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Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

	2Q’21		1Q’21		QoQ			1H’21
Unit: NT$ M	Amount	%	Amount	%	Amount	%		Amount	%
Net Revenue	10,615	100	10,072	100	543		0	20,687	100
Gross Profit	4,342	41	3,920	39	422		2	8,262	40
Operating Income	916	8	381	4	535		4	1,296	6
Non-Operating Income	191	2	10	0	181		2	200	1
Income before Income Tax	1,106	10	390	4	716		6	1,497	7
Net Income	939	9	271	3	668		6	1,210	6
EPS (NTD)	2.36		0.7					3.07

Note: Weighted average outstanding shares were 397.6M units in 2Q’21 and 389.3M units in 1Q’21.

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Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

			June 30 ’21			March 31 ‘21			QoQ
	Unit: NT$ M	Amount		%		Amount	%		Amount
	Cash & Cash Equivalents		6,270		20	5,447		17	823
	Accounts Receivable		4,590		15	4,319		14	271
	Other Receivable		1,034		4	2,029		7	(995)
	Inventories		6,280		20	6,285		20	(5)
	Long-Term Investments		2,388		8	2,028		6	360
	Property, Plant, Equipment and R.O.U		9,116		29	9,790		31	(674)
	Others		1,429		4	1,764		5	(335)
	Total Assets		31,107		100	31,662		100	(555)
	Current Liabilities		9,936		32	11,021		35	(1,085)
	Non-Current Liabilities		7,779		25	8,676		27	(897)
	Total Liabilities		17,714		57	19,697		62	(1,983)
	Total Equity		13,392		43	11,966		38	1,426
	Debt/Equity Ratio		1.32			1.65

Nuvoton Consolidated Statement of Cash Flows

	2Q’21	1Q’21	QoQ
Unit: NT$ M	Amount	Amount	Amount
Cash Flows from Operating Activities	944	189		755
Cash Flows from Investing Activities	1,046	146		900
Cash Flows from Financing Activities	(1,054)	(537)		(517)
Cash & Cash Equivalents	6,270	5,447		823

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Nuvoton Revenue and GM Trend - Consolidated

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Revenue/Gross Profit (NT$ M) Gross Margin
15,000 50.0%
41.2% 40.9%
39.6%
38.9%
36.9% 40.0%
35.8%
10,615
10,072
9,869
10,000
Revenue 30.0%
Gross Profit
GM%
5,605
20.0%
4,342
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
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1H’21 Revenue by Application

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Car, Industry & Auto
Computer
18%
24%
39%
2%
53%
21%
21%
Consumer
22%
Communication &
Others
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Application Computer Consumer Communication and Others Car, Industry & Auto

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Increased Percentage in Communication and Car, Industry & Auto Sectors

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Nuvoton Technology Corporation Japan Highlight

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Realizing a Smart Society with NTCJ Embedded Technology

Target Megatrends/Market

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1.New Energy
Lib/FC
2.Smart Mobility
Robotics
3.Smart Life
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Leading edge technology

Our mission Visual is to enable innovationSensing

Focus Market Growth and Technical Challenges

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 society x4 Autonomous society IOT & Security society
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
Technical challenges Technical challenges Technical challenges
Higher reliability Increasing data processing at edge Higher reliable security and
Reuse technology & ecosystem Higher capability for AI processing real time processing with low power
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Li-B BM-IC in Electrification Ecosystem and Technology

Today Biz 6 2 Automotive 1 3 Industrial /Consumer 5 New Biz 2 Reuse

Next

Biz Key

・ Optimize BMS BOM

• ・ Battery diagnostic Tech & ecosystem

Now

BEV/HEV BM-IC

Next New Products BEV BM-IC ＋ CM-IC

Advanced Key Tech Accelerate reuse Biz EIS technology

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• Supports 20 Cells

• • FuSa (ASIL-D)

• High accurate SOH estimation

• Supports 25 Cells

• Clarify residual value for battery second life

FuSa:Functional safety

SOH:State of Health

EIS:Electrochemical Impedance Spectroscopy

Safety-use of Battery in Handheld/Wearable Devices

◆ Safety IoT device

Technology Leader

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CSP MOSFET
for IoT
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Realize

Share growth Li-B Protection

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Market Size
x1.7
Source:Gartner
2020 2025 2030
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8.6 B units shipment(2012 to 2020) protects the safety of the battery.

◆ Longer Battery Life & Speed Charge

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Battery
life
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26% longer battery life than 2011 with 2020 product

◆ Lead performance evolution with low Ron

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Ron
Other2
Other1
-45%
2020 2023
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Evolving technology roadmap

Target Ron 45% smaller than 2020 with 2023 products

Sensing Technology for Autonomous & Robotics

Today Biz

In-cabin Robotics visual/audio visual/distance

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Human monitor motion

Next

Biz Key

・ Provide METAdata

• ・ - Edge completed -

• system (Non cloud)

Now Sensing Devises 2D/3D sensor DSP/ISP

• Supports the creation of METAdata required for customer use cases

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New Products
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Next

Sensing Solutions

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ISP
Audio
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• METAdata for customer use case

Required Key Tech

Hi-Response Edge Solutions

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Sensing
Upgraded
METAdata
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-
High accuracy
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Edge/IoT Security for Smart life

Today Biz

- 20 years

leading performance

Next

Highly Reliable

Biz Key

• ・ Root of Trust for H/A ecosystem

Be Smart !

- 15 years

Tough & high reliability

More inside

・ - Design in to the - high reliability New market

Now

Next New Products

Advanced Key Tech

Inverter MCU

• Advanced inverter technology

• Expand to digital power market

Secure MCU

• High reliability with EAL 6+

Secure MCU for IOT H/A

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Root of Trust
H/A
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• “security-key” management

Secure MCU + AI for health care AI Good

• Edge AI with high reliable security

Nuvoton Japan Business and Product Summary

• Products and technologies meet market trend

Core Technology

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Core
Main Products
Market Trend Focus Area Technology
SOI and
BMS & Motor Analog Design BMS Motor Driver
New Energy
LiB application CSP
Technology -
MOSFET 5G Module/RF GaN
Visual
Smart Image
Sensing Processing TOF sensor
mobility Solutions with AI Imaging LiDar DSP(Automotive)
Security and
Low Power Secure MCU IC card
Smart Life IoT
System
Knowledge Inverter MCU HDMI
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© 2020 Nuvoton Technology Corporation Japan

Nuvoton 1H’21 Business Update

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Nuvoton 1H’21 Business Update (1)

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MCU / Smart Home
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• For Smart Home Appliance, released M258, M23-based low-power secure MCU with touch key and LCD interface, and M471, M4-based high-performance main control MCU

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

• For consumer audio market, expanded the market share of NSPxx Voice Prompt solution

• Development of high processing power MPU (based on Arm® Cortex®-A35) for industrial Edge Gateway applications

• 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

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Nuvoton 1H’21 Business Update (2)

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Cloud Security / 6”-Fab Foundry
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• Strong demand for PC related products, including commercial/consumer NB (Work from Home), Chromebook (Study from Home) and Gaming MB (Entertain at Home)

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

• Development of SIO/EC for client PC based on new Intel & AMD platforms

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

• 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 1H’21 Business Update (3)

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Component / Visual Sensing
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• Started shipment of CSP MOSFET for China brand wearable devices as the first NTCJ product with Nuvoton brand name

• Released CSP MOSFET with new process for quick charge enabled smartphones

• Enjoyed very healthy revenue growth in the automotive infotainment, cluster and ADAS products, due to the accelerating electrification of vehicles, traditional or electrical

• Mass-production of the 12nm Fin-FET based low-power consumption SOC for super-high resolution image signal processing

• Released 8K large size CMOS image sensor for commercial Cinema Camera market in China

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Nuvoton 1H’21 Business Update (4)

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Battery and Analog Solutions / IoT with Security
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• First release of industrial-grade battery-monitoring ICs with Nuvoton brand name

• Received many orders for motor driver ICs in the office automation market and home appliance market

• New chipset for automotive grade battery monitoring ICs supporting accurate statistics estimate for large capacity batteries

• Launched new inverter control MCU for home appliance with 120MHz performance, 512k bytes instruction memory and safety functions

• Development of the USB4™ Re-Timer with 40Gbps performance for both personal computer and broadband cable applications

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Questions & Answers

Company website Nuvoton: www.nuvoton.com

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