WEC — Investor Presentation 2022

Aug 9, 2022

~~1H22 Investor Conferen~~ ce

Aug. 5[th] , 2022

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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 forward-looking 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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Agenda

01 Financial Results

Jessica Huang - CFO

02 Business Recap & Outlook

James Chen - President

03 Q & A

James Chen & Jessica Huang

3

Financial Results

4

- Statement of Comprehensive Income Consolidated

Unit: NT$ M	2Q22	1Q22			QoQ		1H22	1H21			YoY
Net Sales Gross Profit Gross Margin Operating Income Net Non-Operating Income (Loss)	26,647 12,888 48% 5,799 1,296	26,514 12,877 49% 6,305 65			133 11 -1 ppts (506) 1,231		53,161 25,765 49% 12,104 1,361	46,560 18,664 40% 6,918 (14)			6,601 7,101 +9 ppts 5,186 1,375
Income Tax Benefit (Expense)	(1,279)	(1,224)			(55)		(2,503)	(1,415)			(1,088)
Net Income (Loss)	5,816	5,146			670		10,962	5,489			5,473
Earnings Per Share (Unit: NT$) EBITDA	1.29 8,417	1.15 8,947			0.14 (530)		2.44 17,364	1.24 12,387			1.20 4,977

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– Revenue and GM Trend Consolidated

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(NT$ B)
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21.3
20.3 49% 48%
45% 45%
42%
16.0
38%
12.8
30%
29%
27%
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q222Q22
Gross Profit Revenue
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6

Balance Sheet - Consolidated

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Unit: NT$ M Jun. 30, '22 % Dec. 31, '21 % Jun. 30, '21 %
Cash 26,419 15% 30,914 20% 17,751 13%
Inventory(Net) 18,816 10% 15,941 10% 14,454 10%
Property, Plant, Equipment and ROU 91,601 51% 65,882 43% 65,558 47%
Total Assets 179,088 100% 152,740 100% 139,208 100%
L/T Liability 30,614 18% 23,305 15% 21,381 15%
Total Liabilities 85,109 48% 62,707 41% 56,647 41%
Shareholders' Equity 93,979 52% 90,033 59% 82,561 59%
Debt / Equity Ratio 0.91 0.70 0.69
Current Ratio 1.62 2.53 2.26
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Statement of Cash Flow - Consolidated

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Unit: NT$ M 2Q22 1Q22 QoQ 1H22 1H21 YoY
Operating Cash Flow 3,660 8,138 (4,478) 11,797 9,738 2,059
Depreciation & Amortization 2,617 2,642 (25) 5,259 5,469 (210)
Investing Cash Flow (15,956) (9,332) (6,624) (25,288) (2,817) (22,471)
CAPEX (15,835) (9,125) (6,710) (24,960) (4,454) (20,506)
Financing Cash Flow 8,515 370 8,145 8,885 (485) 9,370
Net Change (3,734) (761) (2,973) (4,495) 6,006 (10,501)
Cash & Equivalents 26,419 30,153 (3,734) 26,419 17,751 8,668
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Memory Business Performance (1)

Unit: NT$ M	2Q22	1Q22	QoQ	1H22	1H21	YoY
Net Sales Cost of Goods Sold Gross Profit Gross Margin Operating Expense Operating Income	15,299 7,320 7,979 52% 3,464 4,515	15,563 7,621 7,942 51% 3,063 4,879	(264) (301) 37 +1 ppts 401 (364)	30,862 14,941 15,921 52% 6,527 9,394	26,029 15,578 10,451 40% 4,779 5,672	4,833 (637) 5,470 +12 ppts 1,748 3,722
Operating Income Margin	30%	31%	-1 ppts	30%	22%	+8 ppts

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Memory Business Performance (2)

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(NT$ B)
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52%
51%
47% 47%
43%
11.3
9.7 10.5 10.5
36%
25% 25%
22%
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q222Q22
Gross Profit Revenue
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10

Logic Business Performance (1)

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Unit: NT$ M 2Q22 1Q22 QoQ 1H22 1H21 YoY
Net Sales 11,181 10,722 459 21,903 20,687 1,216
Gross Profit 4,689 4,702 (13) 9,391 8,262 1,129
Gross Margin 42% 44% -2 ppts 43% 40% +3 ppts
Operating Income 1,300 1,442 (142) 2,742 1,296 1,446
Net Non-Operating Income (Loss) 424 10 414 434 200 234
Income Tax Benefit (Expense) (365) (249) (116) (613) (286) (327)
Net Income (Loss) 1,359 1,203 156 2,563 1,210 1,353
Earnings Per Share (Unit: NT$) 3.24 2.87 0.37 6.10 3.07 3.03
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Logic Business Performance (2)

Unit: NT$ M Cash Inventory(Net) Property, Plant, Equipment and ROU Total Assets L/T Liability Total Liabilities Shareholders' Equity Debt / Equity Ratio Current Ratio	Jun. 30, '22 % Dec. 31, '21 % Jun. 30, '21 % 11,350 31% 9,699 28% 6,270 20% 7,407 20% 6,859 20% 6,280 20% 7,411 20% 8,452 25% 9,116 29% 36,315100%34,408100%31,107100% 1,500 4% 1,500 4% 1,875 6% 21,037 58%18,854 55%17,714 57% 15,278 42%15,554 45%13,393 43% 1.38 1.21 1.32 1.99 2.24 1.87

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Memory CAPEX

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43.9
(NT$ B)
16.7
13.2
9.3
7.9
2018 2019 2020 2021 2022(E)
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Paid Estimated

Cash Basis, as of Aug. 5[th] , 2022

13

Business Recap

& Outlook

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Memory Business Revenue Breakdown by Product

(NT$ B)

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18
16
14
45%
46% 45%
46%
12 46%
10
44%
43% 43%
44%
8
6
55%
54% 54% 55% 54%
4 56% 57% 57% 56%
2
0
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q222Q 2
Flash DRAM
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Memory Business Revenue Breakdown by Application

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1Q22
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2Q22
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Car & Industrial
Communication
24%
32%
Consumer
19% Computer
25%
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Car & Industrial Communication
26% 30%
Consumer Computer
21% 23%
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Note: Rev excluded foundry and others

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Car & Industrial Consumer
QoQ +6% QoQ +8%
NT$M NT$M
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
1Q22 2Q22 1Q22 2Q22
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Computer Communication QoQ -6% QoQ -9%

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NT$M NT$M
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
1Q22 2Q22 1Q22 2Q22
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Memory Business Revenue Breakdown by Application

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1H21
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1H22
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Car & Industrial
Communication
19%
35%
Consumer
26%
Computer
20%
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Car & Industrial
Communication
25%
31%
Consumer
Computer
20%
24%
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Note: Rev excluded foundry and others

Car & Industrial Consumer YoY +58% YoY -7%

Computer YoY +43%

Communication YoY +7%

NT$M

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NT$M
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8,000
8,000
6,000
6,000
4,000
4,000
2,000
2,000
0
0
1H21 1H22
1H21 1H22
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NT$M
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NT$M

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NT$M NT$M
10,000
8,000
8,000
6,000
6,000
4,000
4,000
2,000 2,000
0
0
1H21 1H22
1H21 1H22
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DRAM Business

• ❑ 1H22 revenue increased by 19% YoY

• ❑ 1H22 bit shipment was flattish vs 1H21

• ❑ 25nm revenue contributed over 65% of total DRAM revenue in 1H22

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51%
45% 54%
66% 70%
31%
14% 10%
19% 11%
6%
4%
33% 31%
42% 29%
22% 21%
8% 8% 8% 6% 6% 5%
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1Q21 2Q21 3Q21 4Q21 1Q22 2Q222Q22
65nm 46nm 38nm 25nm
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Flash Business

• ❑ 1H22 revenue increased by 18% YoY

• ❑ Revenue contribution from high-density NOR kept increasing

• ❑ Leading position in NOR Flash and market share grew continually

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19%
15% 17%
18%
18%
18%
63%
67% 66%
63% 65%
63%
19% 19% 18% 18% 17% 17%
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1Q21 2Q21 3Q21 4Q21 1Q22 2Q22

90nm 58nm 46nm

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Market and Business Outlook (1)

• ❑ Specialty DRAM

• ❖ Supply slightly decreased in 1H22

• ❖ Overall demand declined temporarily, but demand in segments like Wi-Fi 6/7, IoT,

• and industrial remains solid

❑ Code Storage Flash

• ❖ Stable supply in 1H22

• ❖ Weak demand in consumer sectors and low-density products

• ❖ Strong demand in automotive, 5G base station, and server

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Market and Business Outlook (2)

❑ Overall Market

• ❖ Overbooking last year needs some time for inventory adjustment

• ❖ Outlook is expected to be cautious due to inflation and global economic uncertainties

❑ Winbond Business

• ❖ KH fab: 10K wpm mass production will start slightly later than expectation due to delay in equipment delivery

• ❖ 20nm DRAM and 45nm NOR Flash are expected to bring revenue in 2023

• ❖ Continue to promise longevity and maintain stable supply to customers

• ❖ Balanced supply to all applications with automotive, 5G infrastructure, and industrial

focus

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New Product Introduction

1.2V SPI NOR Flash in 64Mb

• ❖ The First Ultra-Low-Voltage SPI Flash M/P in industry

• ❖ Ideal for the latest generation of IoT devices

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LPDDR4/4X 100BGA

• ❖ Latest JEDEC standard

• ❖ Ideal for IoT devices; available in density of 1Gb and 2Gb, up to 4267Mbps

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22

Q & A

23

Thank you

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