WEC — Investor Presentation 2017

Jun 15, 2017

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2Q17 Cathay Securities Conference

Safe Harbor Notice

• This presentation contains forward-looking statements concerning, among other things, our financial condition, future expansion plans and business strategies. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements are inherently subject to significant risks, uncertainties and assumptions about us and based on our current expectations and projections about future events.

• We undertake no obligation to 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.

• Except for the numbers and information included in the our financial statements, the information contained in this presentation has not been audited nor reviewed by any accountant or independent expert. We make no express nor imply representations nor warranties as to the fairness, accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. We and our representatives do not accept any responsibility or liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any losses or damages arising from the use of this presentation or the information contained herein or anything related to this document.

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Table of Content

• Company Overview

• Business Model: A Hidden Champion of Specialized Memory Supplier

• Balanced Product Mix

• Growing Application

• Automotive and Industrial

• Other field

• Financial Recap

• Revenue and GM Trend

• CAPEX

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Company Overview - Business Model: A Hidden Champion of Specialized Memory Supplier

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What are the characteristics of a “Hidden
Champion”?
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Leadership in Niche Market with Growth Potential

Close to Customer

Innovative Technology

An International Organization

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Company Overview - Balanced Product Mix

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Specialty Flash
44% 41%
Mobile
15%
Note: 1Q’17 revenue
SDRAM Serial NOR LP SDRAM
DDR/DDR2 SLC NAND LP DDR/DDR2
DDR3 Serial NAND LP DDR3
KGD KGD Pseudo SDRAM
KGD
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Growing Application - Automotive & Industrial

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Why growing?
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Performance than Cost

Longevity

High Quality

Global Demand of DRAM in Automotive and Industrial Applications:

1,200 1,000 800 600 400 200

Growth Potential

2012 2013 2014 2015 2016 2017 2018 2019 2020 Automotive Total Bit Demand (million Gb) Industrial Total Bit Demand (million Gb)

Source: IHS

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All around a car, all around the world

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ADAS Telematics
Infotainment Cluster
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• Winbond has been a memory supplier for Infotainment, Cluster, Telematics, and ADAS.

• Customers including global tier-1 OEM companies in Japan, Germany, Korea, and USA.

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Car & Industrial

Y2012 Revenue Breakdown

Y2016 Revenue Breakdown

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Car & Industrial
18%
Communicatio
n
32%
Consumer
26%
Computer
24%
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Growing Application - AMOLED

Manufacturing costs (US$):

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Source: IHS, 2016
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Source: WitsView
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• Manufacturing cost of AMOLED is lower than LCD from 2016. AMOLED penetration rate in global smartphone will reach 40% in 2019

• Winbond is the major NOR supplier in AMOLED application

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Financial Recap: Revenue and GM Trend

Revenue (NT$B)

Gross Margin

10.0

8.0 6.0 4.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

35% 30% 25% 20% 15% 10% 5%

Revenue GM%

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- Y2017 CAPEX Memory

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(NT$ B)
17.4
20.0
13.0
15.0
10.0
4.8
3.9
3.0
5.0 2.1
0.0
2012 2013 2014 2015 2016 2017 (E)
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CAPEX(Cash Basis) as of 04/28/2017