NTC — Interim / Quarterly Report 2020

Apr 12, 2021

Nuvoton Technology Corporation

2H’20 Investor Conference

Feb 19, 2021

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Agenda

• Nuvoton Financial Results

• Nuvoton Technology Corporation Japan Introduction

• Nuvoton 2H’20 Business Update

• 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

• Nuvoton Consolidated Statement of Comprehensive Income

• Nuvoton Consolidated Balance Sheet

• Nuvoton Consolidated Statement of Cash Flows

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Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

	4Q’20		3Q’20		2H’20		2H’19			YoY
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%		Amount	%
Net Revenue	9,869	100	5,605	100	15,474	100	5,733	100		9,741	170
Gross Profit	3,535	36	2,066	37	5,601	36	2,294	40		3,307	144
Operating Income	38	0	(63)	(1)	(25)	0	400	7		(425)	(106)
Net Non-Operating Income	77	1	272	5	349	2	9	0		340	3,778
Income before Income Tax	115	1	209	4	324	2	409	7		(85)	(21)
Net Income	70	1	119	2	189	1	344	6		(155)	(45)
EPS (NTD)	0.2		0.41		0.61		1.5

Note: Weighted average outstanding shares were 295.1M units in Y2020.

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Nuvoton Consolidated Statement of Comprehensive Income

Selected Items from Statement of Comprehensive Income.

Y2020 Y2019 YoY Unit: NT$ M Amount % Amount % Amount % Net Revenue 20,668 100 10,367 100 10,301 99	Y2020 Y2019 YoY Unit: NT$ M Amount % Amount % Amount % Net Revenue 20,668 100 10,367 100 10,301 99
	10,301 99
Gross Profit 7,707 38 4,128 39	3,579 87
Operating Income 322 2 584 5	(262) (45)
Net Non-Operating Income 421 2 83 1	338 407
Income before Income Tax 743 4 668 6	75 11
Net Income 533 3 558 5	(25) (4)
EPS (NTD) 1.81 2.53

Note: Weighted average outstanding shares were 295.1M units in Y2020.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

Cash & Cash Equivalents 5,882 18 4,859 44	1,023 21
Accounts Receivable 4,246 13 1,078 10	3,168 294
Other Receivable 1,710 5 497 4	1,213 244
Inventories 6,250 20 1,605 14	4,645 289
Long-Term Investments 1,807 6 1,117 10	690 62
Property, Plant, Equipment and R.O.U 10,513 33 1,405 13	9,108 648
Others 1,915 5 595 5 Total Assets 32,323 100 11,156 100	1,320 222 21,167 190
Current Liabilities 11,550 36 2,342 21	9,208 393
Non-Current Liabilities 9,251 28 1,422 13	7,829 551
Total Liabilities 20,801 64 3,764 34	17,037 453
Total Equity 11,521 36 7,392 66	4,129 56
Debt/Equity Ratio 1.81 0.51 7

Nuvoton Consolidated Statement of Cash Flows

	2H’20	2H’19		YoY
Unit: NT$ M	Amount	Amount		Amount
Cash Flows from Operating Activities	1,167	800		367
Cash Flows from Investing Activities	(7,256)	(1,084)		(6,172)
Cash Flows from Financing Activities	5,379	3,520		1,859
Cash & Cash Equivalents	5,882	4,859		1,023

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Nuvoton Technology Corporation Japan Introduction

• NTCJ’s Company Profile

• NTCJ’s History

• NTCJ’s Business and Product Strategy

• NTCJ’s Main Products and Applications

• Technology and Business Integration between NTC and NTCJ

• Balanced Business in 4C Application after the Merger

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NTCJ’s Company Profile

• Company Name ： N uvoton T echnology C orporation J apan (“NTCJ”) previously named Panasonic Semiconductor Solutions (“PSCS”)

• Business ： Semiconductor IC design, development, manufacturing and sales

• Acquired date ： September 1, 2020

• Location ： Nagaokakyo City, Kyoto, Japan

• Capital ： Around 400 Million yen

• Employees ： 2,000+

• Management team ：

• Chairman: Yuan-Mou Su

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• President: Kazuhiro Koyama

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© 2020 Nuvoton Technology Corporation Japan

NTCJ’s History

• 1952 Founded : Matsushita Electronics Corporation(MEC) as a joint venture by Matsushita Electronic Industrials(MEI) and Philips

• 2001 Absorption into MEI as a division company for Semiconductor

• 2014 Spin off PSCS as a subsidiary of Panasonic IS company

• 2020 Transferred to Nuvoton and start business as NTCJ

1952 2001 2014 2020 Semiconductor Matsushita Electronics Corp. PSCS NTCJ Company Start-up Growth Revolution Revitalization Restructuring Diode/Transistor DRAM/MCU, Digital Technology Vertical integration Separate SLSI ➜ IC Manufacturing model Fab-lite model

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NTCJ’s Business and Product Strategy

• Products and technologies meet market trend

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Core
Market Trend Focus Area Main Products
Technology
Image TOF
Visual
Application Processing Imaging LiDAR
of Visual AI Sensing with AI DSP/ISP TOF sensor Automotive DSP
Solutions
Security and Secure MCU for Ticket
Low Power and Personal ID
IC card
Connected
System Inverter MCU/
IoT
but Secure Knowledge HDMI MCU
Battery Monitor/
SOI and Analog Design
BMS Motor Driver Motor Driver
BMS
Green and &
CSP
Electrification Motor MOSFET, RF-GaN
Technology MOSFET 5G Module
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© 2020 Nuvoton Technology Corporation Japan

NTCJ’s Main Products and Applications (1)

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TOF/Imaging LiDAR
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• Enables highly accurate obstacle detection and recognition of human facial expressions and motions

• High robustness against environmental changes

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Home/Industrial Robot
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Store In-cabin
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DSP/ISP
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• The high-quality 2D/3D graphics can be displayed on information devices

• Comfortable sound space by high-performance analog & digital audio processing with noise suppression

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Head Up
Electric Mirror
Display
Center
Information
Display
Sound
Electric Meter Display Audio
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© 2020 Nuvoton Technology Corporation Japan

NTCJ’s Main Products and Applications (2)

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Inverter MCU
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• Excellent system knowledge based on over 40 years of business experience in consumer, automotive and industrial market

• Enable to make digital control of various power conversions

• and inverter motor control

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Air Conditioner

Washing Machine

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HDMI
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Server/ESS

• Leading supplier for various applications such as AV receiver, sound bar, switcher, game, VR/AR, signage, etc.

• Provide high quality connectivity based on the advanced analog technology

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HDMI HDMI
-IC -IC
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© 2020 Nuvoton Technology Corporation Japan

NTCJ’s Main Products and Applications (3)

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Battery Monitor
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• Excellent reliability by unique Silicon on Insulator(SOI)

• Technology to achieve high reliability requirements in automotive market

• Easy launch and horizontal expansion for industrial battery

Electric Vehicle

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Server/ESS

E-Scooter

• pack

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Motor Driver
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• Our unique Auto Phase Control (APC) technology provides long life motor driving and enables application to cooling FAN of various devices

• Long life motor for Industry

• Small motor required relievable operation

• Motor that rotating silent for Home appliances

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Cool!
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Cooling Fan

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© 2020 Nuvoton Technology Corporation Japan

NTCJ’s Main Products and Applications (4)

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MOSFET(CSP)
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• Small size and low on resistance provides,

• Design ability for small and thin devices

• Long battery run time for Li battery devices

• Zero defects for automotive and medical

• High speed charge for 5G smartphone

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RF-GaN
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Li-ion Battery

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Smartphone VR/AR
TWS Tablet
Smart Watch Hearing Aid
Automotive 3D Sensing
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LiDAR
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5G Base Station

• More than 30 years of high-frequency circuits knowledge

• Enables high efficiency and small size module with bias circuit for 5G base station

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Small Cell
Massive MIMO
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© 2020 Nuvoton Technology Corporation Japan

Technology and Business Integration between NTC and NTCJ

**Technology **	Business General Purpose Smart Home Cloud Security Image Processing Battery Management	Business General Purpose Smart Home Cloud Security Image Processing Battery Management	Business General Purpose Smart Home Cloud Security Image Processing Battery Management	Business General Purpose Smart Home Cloud Security Image Processing Battery Management	Business General Purpose Smart Home Cloud Security Image Processing Battery Management	Business General Purpose Smart Home Cloud Security Image Processing Battery Management
	MCU / DSP					
	Security					
	Analog Interface / Audio					
	Low Power					
	Sensing				

 Nuvoton Taiwan

 NTCJ

Balanced Business in 4C Application after the Merger

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NTC
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NTC + NTCJ
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Increasing percentage in
Automotive and
Communication sectors
Computer
Automotive 18%
Automotive & Industrial Computer & Industrial
24% 37% 39%
Consumer
29%
Consumer
37%
Communicati
on 14%
Communication
2%
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NTCJ @Kyoto

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’21/Jan, Taken photo with NTCJ’s image sensor(MN34450)

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Nuvoton 2H’20 Business Update

• Nuvoton Revenue and GM Trend - Consolidated

• Nuvoton 2H’20 Business Update

• Nuvoton 2021 Business Outlook

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Nuvoton Revenue and GM Trend - Consolidated

Revenue/Gross 0 5,000 10,000 15,000 20,000 25,000 30,000	Gross Margin Profit (NT$ M) 7,313 8,329 9,235 10,040 10,367 20,668 3,048 3,408 3,733 3,913 4,128 7,707 41.7% 40.9% 40.4% 39.0% 39.8% 37.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2015 2016 2017 2018 2019 2020 Revenue Gross Profit GM% 21

Nuvoton 2H’20 Business Update (1)

• Main Achievements – MCU/Smart Home

• Launched the first 32-bit Arm® Cortex®-M0 based NUC131U that is qualified by automotive AECQ100 Grade 2 (-40 ° C to 105 ° C)

• Launched 32-bit Arm® Cortex®-M0 based NuMicro® M0A21 Series MCU with a temperature range from -40 ° C to 125 ° C

• Expansion of NuMicro MCU on multi-segment market and healthcare-related applications

• Released NAU83G10 and NAU83G20, a new breed of efficient Class-D Smart Amplifier solutions with integrated Klippel Controlled Sound technology (KCS) on Tensilica HiFi audio DSP

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Nuvoton 2H’20 Business Update (2)

• Main Achievements – Cloud and Computing/Foundry

• Shipments of BMC products to both Enterprise and Hyperscale Data Center customers

• Nuvoton NCT6692D, a 32-bit security controller chip with on-chip ROM and key storage as the root of trust, passes Cryptographic Algorithm Validation Program (CAVP) by Computer Security Resource Center, which is under National Institute of Standards and Technology (NIST)

• Strong EC demand for Commercial NB (Work from Home) and Chromebook (Study from Home)

• Significant contributions from Power Management IC process (Foundry Service)

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

Nuvoton 2H’20 Business Update (3)

• Main Achievements - NTCJ

• Released CSP MOSFET with the lowest On-resistance for 5G smartphone

• Released reference design for new 3D sensing camera solutions with high-precision, high-

  • resolution TOF sensor approved for robotics platform

• Launched industrial grade battery monitoring solutions for e-Bike that collect data on battery lifespan health status

• Launched the digital power control MCU based on Arm® Cortex®-M7 core with 160MHz performance and PWM resolution of 208ps

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

Nuvoton 2021 Business Outlook (1)

• New Products and Developments

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

• Development of M23 based low-power secure MCU with touch key and LCD interface targeted for Smart Home Appliance applications

• Development of high-power, stereophonic, Smart Amplifier solution for automotive applications

• Development of SIO/EC for new Intel & AMD platforms

• Release ultra-low On-resistance MOSFET for 5G smartphone Li-ion battery protection

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

Nuvoton 2021 Business Outlook (2)

• New Products and Developments

• Establishment of 12nm Fin-FET process SoC development technology, with Arm CA53 core processor, and multiple Gbps high speed Interfaces (LPDDR4, PCIe, USB3.1, HDMI, etc.) implemented

• Development of new industrial battery monitoring IC, with 17-ch and 22-ch lineup for e-Bike, Energy Storage System (ESS), and also Automated Guided Vehicle (AGV)

• Development of new digital power control MCU based on Arm® Cortex®-M7 core for server grade power supply

• New Foundry Service Processes

• Development of new generation BCD process

• Expansion of new customers on Half bridge HVIC process

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

Questions & Answers

Company website Nuvoton: www.nuvoton.com

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