WEC — Interim / Quarterly Report 2013

Aug 2, 2013

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2Q13 Financial Results

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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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2Q13 Comprehensive Income Statement - Consolidated

	2Q’13	2Q’13	1Q’13	1Q’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Net Sales 8,846 100 7,675 100 1,171 15 Gross Profit 2,066 23 1,249 16 817 65 Operating Income 521 6 (262) (3) 783 (299) Pretax Income 524 6 (301) (4) 825 (274) Net Income 416 5 (337) (5) 753 (223) EPS (NTD) 0.101 (0.099) 0.200 EBITDA 2,473 28 1,787 23
						1,171 15 817 65 783 (299) 825 (274) 753 (223) 0.200

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2Q13 Balance Sheet - Consolidated

	Jun. 30 ’13	Jun. 30 ’13	Mar. 31 ’13	Mar. 31 ’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Current Assets 21,693 39 20,614 37 1,079 5 Net Fixed Assets 25,814 46 27,449 49 (1,635) (6) Total Assets 55,727 100 55,722 100 5 0 L-T Liabilities 7,883 14 6,750 12 1,133 17 Total Equity 35,822 64 34,300 62 1,522 4 Current Ratio 2.01 1.53 Debt / Equity Ratio 0.56 0.62
						1,079 5 (1,635) (6) 5 0 1,133 17 1,522 4

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2Q13 Statement of Cash Flow - Consolidated

	2Q’13	1Q’13	**QoQ Change **
Unit: NT$ M	Amount	Amount	Amount
Operating Cash Flow 2,185 556 1,629 Investing Cash Flow (598) (420) (178) Financing Cash Flow (1,734) (41) (1,693) Cash & Equivalents 5,684 5,835 (151) Depreciation and Amortization 1,952 2,049 (97) CAPEX 329 237 92
			1,629 (178) (1,693) (151) (97) 92

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2Q13 Income Statement - Memory

	2Q’13	2Q’13	1Q’13	1Q’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Net Sales 6,922 100 6,014 100 909 15 Gross Profit 1,219 18 546 9 673 123 Operating Income 331 5 (354) (6) 685 (194) Pretax Income 372 5 (363) (6) 735 (202) Net Income 372 5 (363) (6) 735 (202) EPS (NTD) 0.101 (0.099) 0.200 EBITDA 2,218 32 1,630 27
						909 15 673 123 685 (194) 735 (202) 735 (202) 0.200

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2Q13 Balance Sheet - Memory

	Jun. 30 ’13	Jun. 30 ’13	Mar. 31 ’13	Mar. 31 ’13	**QoQ Change **	**QoQ Change **	**QoQ Change **
Unit: NT$ M	Amount	%	Amount	%	Amount		%
Current Assets 17,277 33 16,238 31 1,039 6 Net Fixed Assets 25,170 48 26,822 51 (1,652) (6) Total Assets 52,744 100 52,923 100 (179) (0) L-T Liabilities 7,883 15 6,750 13 1,133 17 Total Equity 34,763 66 33,152 63 1,611 5 Current Ratio 1.87 1.33 Debt / Equity Ratio 0.52 0.60
						1,039 6 (1,652) (6) (179) (0) 1,133 17 1,611 5

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2Q13 Statement of Cash Flow - Memory

	2Q’13	1Q’13	**QoQ Change **
Unit: NT$ M	Amount	Amount	Amount
Operating Cash Flow 1,863 442 1,422 Investing Cash Flow (294) (281) (13) Financing Cash Flow (1,738) (53) (1,684) Cash & Equivalents 3,646 3,815 (169) Depreciation and Amortization 1,887 1,984 (97) CAPEX 314 194 120
			1,422 (13) (1,684) (169) (97) 120

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Revenue and GM Trend - Consolidated

Revenue (NT$B)

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10.0 25%
23%
8.0 20%
19% 18%
16%
6.0 16% 15%
15%
13%
4.0 10%
8%
2.0 5%
8.9 7.3 7.5 9.1 8.5 7.9 7.7 8.8
0.0 0%
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
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

Revenue (NT$B)

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Gross Margin
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8.0 20%
18%
15%
6.0
13%
11%
10%
9%
8%
4.0
6%
5% 5%
2.0
0%
-2%
6.9 5.7 5.8 6.8 6.6 6.2 6.0 6.9
0.0 -5%
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
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
2.0 1.8
0.0
2008
2009
2010
2011
2012
2013E
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Cash Basis CAPEX as of 8/2/2013

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Winbond Business Update & Outlook

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2Q13 Memory Business Recap

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QoQ YoY
Revenue 15% 2%
Gross Profit 123% 179%
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• Better mix in products and customers improved ASP and generated higher gross margin

• ► Balanced business in 3C: business in automotive accelerates.

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Memory Revenue Breakdown

Revenue (NT$B)

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6.9 6.9
7.0 6.8
6.6
6.2
6.0
5.8
6.0 5.7
39% 42%
42%
43%
5.0
37% 39% 45% 42% QoQ YoY
4.0 Flash 16% 3%
Specialty 18% 3%
3.0
Mobile 5% -4%
45%
45% 46%
49% 46% 44% 44%
2.0 44%
1.0
16%
14% 15% 13% 13% 11% 14% 13%
0.0
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
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Note: Specialty including Graphic

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Revenue Breakdown by Applications

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Communication
Others
NT$M QoQ +17% / YoY +29%
QoQ -16% / YoY +136%
2Q13 Revenue Breakdown
3,000
NT$M
Others
300 2,000
4%
200
1,000
100
Computer Communication
0 29% 40% 0
2Q13 2Q12 2Q13 2Q12
Consumer
Computer
NT$M QoQ +17% / YoY -22% 27% Consumer
QoQ +16% / YoY -4%
3,000 NT$M
2,000
2,000
1,000
1,000
0
0
2Q13 2Q12 16
2Q13 2Q12
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2Q13 Flash Memory Business

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QoQ YoY
Revenue 16% 3%
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• Increased demand in handheld devices, HDD, and other

• PC peripheral devices

• 58nm product revenue grew 30% QoQ ;

- Accounted for 37% Flash revenue (vs. 33% in 1Q13) ► Moderate price erosion but focused on value-added market segments and customers

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2Q13 Specialty DRAM Business

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QoQ YoY
Revenue 18% 3%
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• Healthy improvement in ASP and gross margin

• Most specialty DRAM business follows quarterly contract price ► Increased business in TV, Networking, HDD and Printer

► Increasing business in KGD, industrial and automotive ► 46nm products accounted for 35% of Specialty DRAM revenue (vs. 25% in 1Q13)

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2Q13 Mobile DRAM Business

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QoQ YoY
Revenue 5% -4%
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• Low Power DRAM accounted for 55% of Mobile DRAM

• revenue (vs. 50% in 1Q13)

► Increasing business in brand-name handheld devices and new opportunities in peripheral modules in handheld devices

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Market Outlook

► Market trend shifts to low-price smart phones and tables

• LCD TV market turns soft

• Integral market of DT, NB and tablets continue to grow

• Increasing opportunities in peripheral modules which enhance the features of electronic devices

• Coverage in both high-end and low-price (but feature rich)

electronic products is the key to keep stable business

• Commodity DRAM will face balanced supply/demand and price

pressure

• Medium and low density specialty DRAM will be relatively stable

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