WEC — Interim / Quarterly Report 2013

Oct 24, 2013

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Winbond Electronics Corporation

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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 forwardlooking statements on our current expectations and projections about future events. Although we believe that these expectations and projections 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 events 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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Winbond Financial Results

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3Q13 Statements of Comprehensive Income - Consolidated

	3Q’13	3Q’13	2Q’13	2Q’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Net Sales 8,309 100 8,846 100 (537) (6) Gross Profit 1,819 22 2,066 23 (247) (12) Operating Income 306 4 521 6 (215) (41) Pretax Income 239 3 524 6 (285) (54) Net Income 137 2 416 5 (279) (67) EPS (NTD) 0.04 0.10 (0.06) EBITDA 1,540 19 2,473 28
						(537) (6) (247) (12) (215) (41) (285) (54) (279) (67) (0.06)

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3Q13 Balance Sheets - Consolidated

	Sept. 30 ’13	Sept. 30 ’13	Jun. 30 ’13	Jun. 30 ’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Current Assets 20,757 39 21,693 39 (936) (4) Net Fixed Assets 24,938 46 25,814 46 (876) (3) Total Assets 53,827 100 55,727 100 (1,900) (3) L/T Debt 7,883 15 7,883 14 0 - Total Equity 35,928 67 35,822 64 106 0 Current Ratio 2.37 2.01 Debt / Equity Ratio 0.50 0.56
						(936) (4) (876) (3) (1,900) (3) 0 - 106 0

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3Q13 Statements of Cash Flows - Consolidated

	3Q’13	2Q’13	**QoQ Change **
Unit: NT$ M	Amount	Amount	Amount
Operating Cash Flow 2,140 2,175 (35) Investing Cash Flow (483) (588) 105 Financing Cash Flow (1,712) (1,734) 22 Cash & Equivalents 5,614 5,684 (70) Depreciation and Amortization 1,235 1,952 (717) CAPEX 392 329 63
			(35) 105 22 (70) (717) 63

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3Q13 Statements of Comprehensive Income - Memory

	3Q’13	3Q’13	2Q’13	2Q’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Net Sales 6,506 100 6,922 100 (416) (6) Gross Profit 1,067 16 1,219 18 (152) (12) Operating Income 204 3 331 5 (127) (38) Pretax Income 136 2 372 5 (236) (63) Net Income 136 2 372 5 (236) (63) EPS (NTD) 0.04 0.10 (0.06) EBITDA 1,373 21 2,218 32
						(416) (6) (152) (12) (127) (38) (236) (63) (236) (63) (0.06)

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3Q13 Balance Sheets - Memory

	Sept. 30 ’13	Sept. 30 ’13	Jun. 30 ’13	Jun. 30 ’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Current Assets 16,485 32 17,277 33 (792) (5) Net Fixed Assets 24,296 47 25,170 48 (874) (3) Total Assets 51,161 100 52,744 100 (1,583) (3) L/T Debt 7,883 15 7,883 15 0 0 Total Equity 34,870 68 34,763 66 107 0 Current Ratio 2.19 1.87 Debt / Equity Ratio 0.47 0.52
						(792) (5) (874) (3) (1,583) (3) 0 0 107 0

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3Q13 Statements of Cash FlowsMemory

	3Q’13	2Q’13	**QoQ Change **
Unit: NT$ M	Amount	Amount	Amount
Operating Cash Flow 1,984 1,855 129 Investing Cash Flow (409) (286) (123) Financing Cash Flow (1,573) (1,738) 165 Cash & Equivalents 3,648 3,646 2 Depreciation and Amortization 1,169 1,887 (718) CAPEX 324 306 18
			129 (123) 165 2 (718) 18

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Revenue and GM Trend- Consolidated

Revenue (NT$B)

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10.0 25%
23%
22%
8.0 20%
18%
16%
16%
6.0 15%
15%
13%
4.0 10%
8%
2.0 5%
7.3 7.5 9.1 8.5 7.9 7.7 8.8 8.3
0.0 0%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Revenue Gross Profit GM%
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Note: Entities in the consolidated statements include Nuvoton, WEC America, WEC Japan, etc..

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Revenue and GM Trend- Memory

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Revenue (NT$B) Gross Margin
8.0 20%
18%
16%
15%
6.0
11%
10%
9%
4.0 8%
6%
5% 5%
2.0
0%
-2%
5.7 5.8 6.8 6.6 6.2 6.0 6.9 6.5
0.0 -5%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Revenue Gross Profit GM%
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Y2013 Memory CAPEX

NT$ B

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16.0
14.1
14.0
12.0
10.0
7.4
8.0
6.0
6.0
4.2
4.0
3.0
2.4
2.0
0.0
2008
2009
2010
2011
2012
2013E
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Cash Basis CAPEX as of 10/24/2013

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Winbond Business Update & Outlook

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3Q13 Memory Business Recap

QoQ YoY Revenue (6%) (1%) Gross Profit (12%) 54%

Q3 market demand was weaker than historical pattern Moderate ASP increase in Specialty DRAM Growing shipments in 46nm and 58nm products Business expansion in Automotive & Industrial segments

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Memory Revenue Breakdown

Revenue (NT$B)

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 14% 15% 13% 13% 11% 14% 13% 11% 49% 46% 45% 44% 44% 44% 46% 48% 37% 39% 42% 43% 45% 42% 42% 41% 6.9 5.7 5.8 6.8 6.6 6.2 6.0 6.5	QoQ YoY
	Flash Specialty Mobile (7%) (5%) (2%) 8% (21%) (18%)

Note: Specialty included Graphic

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Memory Revenue Breakdown by Application

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3Q13
2Q13
Car & Industrial, 4% Car & Industrial, 5%
Computer Communication Computer Communication
29% 35%
39% 31%
Consumer Consumer
27% 29%
Note: Revenue excluded foundry and others
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Memory Revenue Breakdown by Geometry

2Q13 3Q13 100% 100% 18% 35% 80% 39% 42% 80% 37% 46% 60% 60% 80% 40% 40% 59% 63% 60% 54% 54% 20% 20% 0% 3% 6% 0% 1% 4% Flash Mobile Specialty Flash Mobile Specialty 46nm 58nm 65nm 90nm

Note: Specialty included Graphics

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3Q13 Flash Memory Business

QoQ YoY Revenue (7%) (5%)

Reduced demand in PC and mobile phones Severe price erosion continued

• Focused on product/customer mix

58nm product revenue accounted for 46% Flash revenue (vs. 37% in 2Q13)

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3Q13 Specialty DRAM Business

QoQ YoY Revenue (2%) 8%

Weak demand was balanced by favorable condition in supply Satisfactory improvement in gross margin - Driving business in KGD, industrial and automotive 46nm products accounted for 42% of Specialty DRAM revenue (vs. 35% in 2Q13)

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3Q13 Mobile DRAM Business

QoQ YoY Revenue (21%) (18%)

Low Power DRAM business was impacted by model transition in handheld devices. Shrinking feature phone market impacted business in Pseudo RAM Low Power DRAM accounted for 61% Mobile DRAM revenue (vs. 55% in 2Q13)

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Business Outlook

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End market is weak.

Increasing demand on DRAM due to complete product portfolio, quality and service.

Launch 512Mb and 1Gb code storage Flash products in Q4.

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