NTC — Investor Presentation 2014

Oct 24, 2014

Nuvoton Technology Corporation
3Q14 Investor Conference

October 24, 2014

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 Business Update & 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.
2Q14
3Q13
QoQ change
YoY change
Unit: NT$ M
3Q14
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
| Net Revenue | 1,792 | 100 | 1,894 | 100 | 1,744 | 100 | (102) | (5) | 48 | 3 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Gross Profit | 738 | 41 | 829 | 44 | 700 | 40 | (91) | (11) | 37 | 5 |
| Operating Income | 102 | 6 | 155 | 8 | 140 | 8 | (52) | (34) | (37) | (27) |
| Net Non-Operating Income | 7 | 0 | 54 | 3 | 9 | 0 | (47) | (88) | (3) | (27) |
| Income before Income Tax | 109 | 6 | 208 | 11 | 149 | 8 | (99) | (48) | (40) | (27) |
| Net Income | 88 | 5 | 180 | 10 | 55 | 3 | (93) | (51) | 33 | 61 |
| EPS (NTD) | 0.42 | | 0.87 | | 0.26 | | | | | |

Note: Weighted average outstanding shares were 207.5M units in 3Q14.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.
Unit: NT$ M
Sep 30 ’14
June 30 ’14
QoQ change
Amount
%
Amount
%
Amount
%
| Cash & Cash Equivalents | 1,612 | 33 | 1,758 | 35 | (146) | (8) |
| --- | --- | --- | --- | --- | --- | --- |
| Accounts Receivable | 823 | 17 | 914 | 18 | (91) | (10) |
| Inventories | 817 | 17 | 837 | 16 | (21) | (2) |
| Long-Term Investments | 409 | 8 | 405 | 8 | 4 | 1 |
| Property, Plant and Equipment | 513 | 11 | 527 | 8 | (14) | (3) |
| Total Assets | 4,900 | 100 | 5,101 | 100 | (201) | (4) |
| Current Liabilities | 1,448 | 29 | 1,740 | 34 | (291) | (17) |
| Non-Current Liabilities | 584 | 12 | 576 | 11 | 7 | 1 |
| Total Liabilities | 2,032 | 41 | 2,316 | 45 | (284) | (12) |
| Total Equity | 2,868 | 59 | 2,785 | 55 | 83 | 3 |
| Current Ratio | 2.34 | | 2.09 | | | |
| Debt/Equity Ratio | 0.71 | | 0.83 | | | |

Nuvoton Consolidated Statement of Cash Flows

Unit: NT$ M
3Q14
2Q14
QoQ change
Amount
Amount
Amount

Cash Flows from Operating Activities	146	124	22
Cash Flows from Investing Activities	(41)	(151)	110
Cash Flows from Financing Activities	(249)	0	(249)
Cash & Cash Equivalents	1,612	1,758	(146)

Nuvoton Revenue and GM Trend- Consolidated

Revenue (NT$ M)
Gross Margin Rate

Revenue
Gross Profit
GM%

Nuvoton Business Update
&Outlook
Nuvoton 3Q14 Business Update
Nuvoton 4Q14 Business Outlook

Nuvoton 3Q14 Business Update

Net Revenue: -5.4% QoQ / 2.7% YoY
Key Reasons for Decrease QoQ
Foundry Business Seasonality
Key Reasons for YoY Increase
Consumer Business Growing
Better PC Demands

3Q14 Major New Products
New 2nd ARM® Cortex® - M4 based 32-bit MCU series - NuMicro M451 Launch
SIO and EC for Intel® Next Generation Platform SkyLake
Note: All trademarks and copyrights mentioned herein are the property of their respective owners.

Nuvoton 4Q14 Business Outlook

4Q14 Business Outlook
Traditional Slow Season for PC, Consumer, and Foundry

4Q14 Major New Products And Activity
Nuvoton NuMicro ARM® Cortex® - M based 32-bit MCU Roadshow
Nuvoton NuMicro ARM® Cortex® - M4 based 32-bit MCU Promotion
New ARM® Cortex® - M0 based Audio SoC

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

Questions & Answers
Company website
Nuvoton: www.nuvoton.com