NTC — Investor Presentation 2017

Jul 28, 2017

Nuvoton Technology Corporation

1H’17 Investor Conference

July 28, 2017

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 1H’17 Business Results & 2H’17 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 (1H’17)

Selected Items from Statement of Comprehensive Income.

	2Q’17	2Q’17	1Q’17	1Q’17	1H’17	1H’17	1H’16	1H’16		YoY
Unit: NT$ M	Amount	%	Amount	%	Amount	%	Amount	%		Amount	%
Net Revenue	2,406	100	2,123	100	4,529	100	4,075	100		454	11
Gross Profit	992	41	806	38	1,799	40	1,712	42		87	5
Operating Income	227	9	109	5	335	8	329	8		6	2
Net Non-Operating Income	60	3	2	0	62	1	81	2		(19)	(24)
Income before Income Tax	286	12	111	5	397	9	410	10		(13)	(3)
Net Income	248	10	91	4	339	7	339	8		0	0
EPS (NTD)	1.19		0.44		1.63		1.63			0

Note: Weighted average outstanding shares were 207.5M units in 1H’17.

Nuvoton Consolidated Balance Sheet

Selected Items from Balance Sheet.

Cash & Cash Equivalents 1,551 25 1,899 32	(348) (18)
Accounts Receivable 967 16 827 14	140 17
Other Receivable 248 4 257 4	(9) (4)
Inventories 1,537 25 1,178 20	359 31
Long-Term Investments 545 9 452 8	93 21
Property, Plant and Equipment 685 11 588 10	97 17
Total Assets 6,193 100 5,898 100	295 5
Current Liabilities 2,370 38 1,950 33	420 22
Non-Current Liabilities 532 9 570 10	(38) (7)
Total Liabilities 2,902 47 2,520 43	382 15
Total Equity 3,291 53 3,378 57	(87) (3)
Current Ratio 1.91 2.25
Debt/Equity Ratio 0.88 0.75

Nuvoton Consolidated Statement of Cash Flows

	1H’17	2H’16		HoH
Unit: NT$ M	Amount	Amount		Amount
Cash Flows from Operating Activities	(117)	218		(335)
Cash Flows from Investing Activities	(209)	(169)		(40)
Cash Flows from Financing Activities	0	(374)		374
Cash & Cash Equivalents	1,551	1,899		(348)

Nuvoton Revenue and GM Trend - Consolidated

Revenue/Gross Profit (NT$ M)

Gross Margin Rate

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3,000 50.0%
44.1%
42.8% [43.8%]
42.2%
41.2% [41.9%] 41.2%
40.7% 41.3% 41.1% 40.6% [41.5% 42.4%]
40.1% [40.4%]
39.6% [40.2%]
2,500 2,406
38.0% 40.0%
2,223
2,150 2,105 2,123
2,000 1,901 1,894 1,924 [1,987 ]
1,852
1,744 1,792 1,770 30.0%
1,639 1,618 1,632
1,526 1,519
1,500
20.0%
992
943
1,000
803 829 794 816 769 851 846 806
666 700 692 738 720 719
617 637
10.0%
500
0 0.0%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q17
Revenue Gross Profit GM%
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Nuvoton 1H’17 Business Results & 2H’17 Business Outlook

• 1H’17 Revenue by Product

• 1H’17 Revenue by Application

• Nuvoton 1H’17 Business Results

• Nuvoton 2H’17 Business Outlook

1H’17 Revenue by Product

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Non- 27%
MCU 28%
72%
73%
MCU
Non-MCU 27%
30%
70%
73%
MCU
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HoH %
MCU	1%
Non-MCU	-1%

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YoY %
MCU 3%
Non-MCU -3%
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Note: Foundry revenue was not included in the numbers .

1H’17 Revenue by Application

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Car, Ind.,
Auto Computer
24%
24%
40%
45%
4% 4%
Communication
& Others 28%
32%
Consumer
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HoH %
Computer	-5%
Consumer	4%
Communication & Others	0%
Car, Industry& Auto	0%

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Car, Ind.,
Auto Computer
24%
25%
40%
42%
4%
4%
Communication
& Others 28%
32%
Consumer
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YoY %
Computer -2%
Consumer 4%
Communication & Others 0%
Car, Industry & Auto -1%
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Note: Foundry revenue was not included in the numbers .

Nuvoton 1H’17 Business Results(1)

1H’17 YoY :Revenue + 11.1% ； Gross Margin Rate -2.3 %

• Key reasons for Revenue YoY Increase

• Growth of ARM® Cortex® - M0 32-bit MCU applying on Selected and Mass Market Application

• Growth of ARM[® ] Cortex[®] - M4 32-bit MCU and ARM[®] 9 SoC applying on Industrial Control

• Shipments of TPM 2.0 for Desktop, Laptop

• Shipments of Power IC for Intel Kabylake Platform and EC for Chromebook

• Key reasons for Gross Margin Rate YoY Decrease

• Product Mix and Foreign Exchange

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

Nuvoton 1H’17 Business Results(2)

• 1H’17 Main Achievements

• Shipments of ARM[®] Cortex[®] - M0 32-bit MCU for Emerging and Mass Market Application

• Shipments of ARM[®] Cortex[® ] - M4 32-bit MCU and ARM[®] 9 SoC for Industrial Control

• Shipments of Audio CODEC for Tablet and Chromebook

• Shipments of EC for Chromebook, TPM 2.0 and Power IC for Intel Kabylake Platform

• Mass Production of 0.35um 80V BCD Process for Power IC (Foundry Service)

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

Nuvoton 2H’17 Business Outlook

• New Products

• ARM[®] Cortex[®] - M MCU applying on HMI, IoT Security and Industry Control

• Audio IC for Smart Amplifier in Mobile phone and PC

• BMC for Intel Purley Server Platform and EC for Chromebook

• New Foundry Service Processes

− 0.35um 140V/600V HVIC Motor Driver

• GaN on Si Development

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

Questions & Answers

Company website Nuvoton: www.nuvoton.com