WEC — Interim / Quarterly Report 2013

Apr 29, 2013

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1Q13 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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1Q13 Comprehensive Income Statement - Consolidated

	1Q’13		4Q’12		QoQ change	QoQ change
Unit: NT$ M	Amount	%	Amount	%	Amount	%
Net Sales	7,675	100	7,869	100	(194)	(2)
Gross Profit	1,249	16	1,161	15	88	8
Operating Income	(259)	(3)	(459)	(6)	200	(44)
Pretax Income	(301)	(4)	(504)	(6)	203	(40)
Net Income	(337)	(5)	(533)	(7)	196	(37)
EPS (NTD)	(0.10)		(0.15)		0.05
EBITDA	1,780	23	1,704	22

Note: Above figures are in accordance with IFRSs

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1Q13 Balance Sheet - Consolidated

	Mar. 31	’13	Dec. 31	’12	QoQ change	QoQ change
Unit: NT$ M	Amount	%	Amount	%	Amount	%
Current Assets	20,614	37	20,058	36	556	3
Net Fixed Assets	27,449	49	29,021	52	(1,572)	(5)
Total Assets	55,722	100	56,276	100	(554)	(1)
L-T Liabilities	6,750	12	6,550	12	200	3
Total Equity	34,300	62	34,116	61	184	1
Current Ratio	1.53		1.39
Debt/ Equity Ratio	0.62		0.65

Note: Above figures are in accordance with IFRSs

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1Q13 Statement of Cash Flows - Consolidated

	1Q’13	4Q’12	QoQ change
Unit: NT$ M	Amount	Amount	Amount
Operating Cash Flow	556	1,920	(1,364)
Investing Cash Flow	(420)	(1,273)	853
Financing Cash Flow	(41)	(852)	811
Cash & Equivalents	5,835	5,711	124
Depreciation and Amortization	2,039	2,163	(124)
CAPEX	237	858	(621)

Note: Above figures are in accordance with IFRSs

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1Q13 Income Statement - Memory

	1Q’13		4Q’12		QoQ change	QoQ change
Unit: NT$ M	Amount	%	Amount	%	Amount	%
Net Sales	6,014	100	6,236	100	(222)	(4)
Gross Profit	546	9	513	8	33	6
Operating Income	(354)	(6)	(509)	(8)	155	(30)
Pretax Income	(363)	(6)	(567)	(9)	204	(36)
Net Income	(363)	(6)	(567)	(9)	204	(36)
EPS (NTD)	(0.10)		(0.15)		0.05
EBITDA	1,630	27	1,601	26

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1Q13 Balance Sheet - Memory

	Mar. 31	’13	Dec. 31	’12	QoQ change	QoQ change
Unit: NT$ M	Amount	%	Amount	%	Amount	%
Current Assets	16,238	31	15,665	29	573	4
Net Fixed Assets	26,822	51	28,396	53	(1,574)	(6)
Total Assets	52,923	100	53,439	100	(516)	(1)
L-T Liabilities	6,750	13	6,550	12	200	3
Total Equity	33,152	63	33,006	62	146	0
Current Ratio	1.33		1.20
Debt/ Equity Ratio	0.60		0.62

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1Q13 Statement of Cash Flows - Memory

	1Q’13	4Q’12	QoQ change
Unit: NT$ M	Amount	Amount	Amount
Operating Cash Flow	442	2,017	(1,575)
Investing Cash Flow	(281)	(1,042)	761
Financing Cash Flow	(53)	(787)	734
Cash & Equivalents	3,815	3,707	108
Depreciation and Amortization	1,984	2,110	(126)
CAPEX	194	843	(649)

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Revenue and GM Trend - Consolidated

Revenue (NT$ B)

12.0

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10.0
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8.0
6.0
4.0
2.0
0.0
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25% 22% 19% 18% 20% 16% 16% 15% 13% 15% 10% 8% 5% 9.6 8.9 7.3 7.5 9.1 8.5 7.9 7.7 0% 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

Revenue Gross Profit GM%

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)

Gross Margin

8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0

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20%
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17%
13% 15%
11%
9%
8% 10%
6%
5%
5%
-2%
0%
7.4 6.9 5.7 5.8 6.8 6.6 6.2 6.0
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
-5%
Revenue Gross Profit GM%
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Y2013 Memory CAPEX

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NT$ B
16.0
14.1
14.0
12.0
10.0
8.0 7.4
6.0
6.0
4.2
4.0
3.0
1.9
2.0
0.0
2008 2009 2010 2011 2012 2013E
Cash Basis CAPEX as of 4/26/2013
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Business Update & Outlook

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1Q13 Business Recap

QoQ	YoY
-4%	+3%

► Business was weak due to seasonality

 Slow in PC and PC peripherals

• Model changes / inventory adjustment in some key customers

► Increased demand for low power DRAM in mobile devices

• ASP erosion was improved

• Continuous improvement in product mix

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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 8.0	74	74	74	74	74	74	74	74	QoQ YoY
	42% 45% 49% 46% 45% 44% 44% 44% 25% 16% 14% 15% 13% 13% 11% 14% 33% 39% 37% 39% 42% 43% 45% 42% . 6.9 5.7 5.8 6.8 6.6 6.2 6.0
	2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Specialty Mobile Flash

Note: Specialty including Graphic

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1Q13 Flash Memory Business Winbond – Worldwide Top Serial Flash Supplier

QoQ	YoY
-11%	+ 11%

• Slow market demand in PC and PC peripheral

• 58nm products accounted for 33% Flash sales

• (vs 20% in 4Q12)

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1Q13 Mobile DRAM Business

QoQ	YoY
+21%	-5%

• Low Power DRAM drove business growth  Contributed > 50% of Mobile RAM revenue

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1Q13 Specialty DRAM Business

QoQ	YoY
0%	+1%

• Strong demand in networking and STB, but weak in HDD.

► 46nm products accounted for 25% of Specialty DRAM revenue

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Market Outlook

• Booming market in smart phones and tablets triggers strong demand on DRAM

• Market digestion of mobile devices from brand names and white brands in 2H may influence demand at year end

• Surging ASP of PC DRAM supports ASP of Specialty DRAM

• LCD TV market stays flat or gains small growth

• DT/NB PC continues to lose share to tablets

• Clouds and HD broadcast drive demand in networking and STB

• Healthy demand in Serial Flash and built into more new applications

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2Q13 Business Outlook

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Flash
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• Tier-1 customer base and 58nm product portfolio will drive business growth in both embedded and mobile applications

• Strong demand in Specialty DRAM

• ASP will be gradually adjusted to a healthy balance

• Strong market in mobile devices drives the demand of medium density Low Power DRAM