nanya technology 3q 2010 investor conference

October 12, 2015 © 2015 Nanya Technology Corp.

Nanya Technology

3Q’ 2015 Investor Conference

Presentation to Investors and Analysts 12 October 2015

Dr. Pei-Ing Lee , President & Spokesman

2 October 12, 2015 © 2015 Nanya Technology Corp.

01. Q3’15 Revenue & Results

02. Operations

03. Market Outlook

04. Business Outlook

Agenda


01

Q3’15 REVENUE & RESULTS


11,692 11,916

13,09112,409

12,028

11,15610,337

52% 51%

57%

69%

52.3%

38.1%

45.60%

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Net operating revenues(Million NT$) Net Margin(%)

Financial Highlights

2014-2015 Quarterly Results

＊

* Unaudited number * Unaudited number

2015 Monthly Revenues

3,984 3,9654,079

3,9143,798

3,444 3,528 3,596

3,213

Jan Feb Mar Apr May Jun Jul Aug Sep

Net operating revenues(Million NT$)

＊＊

＊


Revenue declined 7.3% quarterly due to seasonality weaker

demand and lower prices.

Q3’15 bit shipments slightly increased 0.9% QoQ.

ASP decreased 11.2% QoQ.

QoQ

Q3 ’15 vs. Q2’15

YoY

Q3’15 vs. Q3’14

Revenue -7.3% -21%

Shipment 0.9% 8.2 %

ASP -11.2% -31.5%

Exchange Rate 3.4% 6.5%

Quarterly Revenue Results


Q3'15 Q2'15 QoQ

Q3'14 YoY

Amount in Million NT$, except for EPS Unaudited Audited Audited

Net Sales 10,337 100% 11,156 100% -7.3% 13,091 100% -21.0%

Gross Margin (Loss) Gross Margin(%) 3,858 37.3% 4,688 42% -17.7% 6,262 47.8% -38.4%

Operating Income (Loss) Operating Margin(%) 2,952 28.6% 3,908 35% -24.5% 5,452 41.6% -45.9%

EBITDA* EBITDA Margin (%) 4,428 42.8% 5,360 48% -17.4% 6,816 52% -35%

Non-operating Income (Exp.) 1,771** 17.1% 847 7.6% 2,883 22%

Income Tax Benefit (Expense) -2 -0.0% -490*** -4.4% -874 -6.7%

Net Income (Loss) Net Margin (%) 4,715 45.6% 4,254 38.1% 10.8% 7,463 57% -36.8%

Earnings Per Share 1.94**** 1.75 3.11

Book Value Per Share 21.57 19.62 13.39

Shares Outstanding(million shares) 2,429 2,428 2,398

Note: * EBITDA = Operating income + Depreciation & Amortization Expenses

** Non-Operating income included NT$ 1,394M from “estimated” Inotera’s profits in Q3’15

*** Q2’15 recognized tax expenses of NT$ 485M from 10% surtax on undistributed earnings.

**** EPS is based on weighted average outstanding shares of 2,423million.

Q3’15 Financial Results Summary


(Million NT$) (Million NT$)

R&D Expenses SG&A Expenses

Note: Q2’14 SG&A recognized NT$ 217M from settling and clearing

Sumpro employees’ seniority of service.

Operating Expenses

Q1, 275 Q1, 429

Q2, 334

Q2, 354

Q3, 358

Q3, 484

Q4, 411

2014 2015

NT$1,378

Q1, 429 Q1, 477

Q2, 643 Q2, 425

Q3, 453

Q3, 421

Q4, 462

2014 2015

NT$1,987

Note: Q3’15 R&D expense increased to NT$ 484M mainly for variety

products development.


Q3'15 Q2'15 Q3'14

(Unit: Million NT$) Unaudited &

Consolidated

Audited &

Consolidated

Audited &

Consolidated

Beginning Balance 7,189 7,429 7,422

Cash from Operating

Activities 4,358 4,418 6,461

Capital expenditures -1,322 -782 -3,933

Long-term & Short-term

loans -1,853 -3,993 -7,764

Investments and others -4,901* 118 1,981

Ending Balance 3,470 7,189 4,167

Free Cash Flow (1) 3,035 3,636 2,528

(1) Free Cash Flow = Cash from operating activities – Capital expenditures

Q3’15 Cash Flows

* Mainly due to cash dividend payout to shareholders


-31%

-102%

-85%

-30%

-4%

13%17.8%

39.9% 43.8%47.8%

48.6%47.2%

42%37.3%

-110%

70%

-20,000

-

20,000

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%, LCM excluded)

Financial Highlights R

eve

nu

e, N

et In

co

me

(M

illio

n N

T$

) G

ross M

arg

in (%

)

*LCM: Lower of cost or market.


Sales Breakdown by Application

* Revenue portion

% o

f To

tal R

eve

nu

e

Applications

Commodity

Server

Low Power

Consumer &

Specialty

Non PC

reach 76.5%

65%

Consumer & Specialty, 64.1%

13%Low Power,

12.4%

22%

Commodity, 23.5%

0%

50%

100%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Consumer & Specialty Low Power Server Commodity


Financial Summary

Gross margin 37.3%, Operating margin 28.6%, net margin 45.6%

Recognized NT$ 1,394 million(M) from Inotera’s profits in Q3

Net income NT$ 4,715M, EPS NT$ 1.94, BVPS NT$ 21.57

30nm Design Shrink exceed 40% output in 3Q15

Cost per bit improved mid-single digits in QoQ

*BVPS: Book Value Per Share

Q3’15 Highlights

Q1~Q3’15 Highlights

Accumulated Net income of NT$15,260M, net margin 45.5%

Accumulated EPS NT$ 6.3


02

OPERATIONS


61.6%

12.1%

26.3%

0%

50%

100%

2012 2013 2014 2015(E)

Consumer & Specialty Low Power Server PC

Consumer

& Specialty

>65%

Low

Power

>15% Non

PC :

49.7%

* Revenue portion by Application

Non-PC:

>80%

2015 Revenue Breakdown Guidance

Applications

Commodity

Low Power

Consumer &

Specialty

Server


Capital

Expenditure

(Capex)

NT$1,322M Capex of Q3’15.

Estimated NT$5,119M for 2015 Capex.

(20nm facility expenditure starts from Q1’16.)

Bit Shipment Q3’15 bit shipment increase 0.9% QoQ.

Estimated bit shipment up single digits in Q4’15.

2015 bit shipment remains guidance to increase mid-teens yoy.

NT$ Billion

Capex & Bit Shipment

53%

28%

Flat -8.6%

Up mid-teens

2011 2012 2013 2014 2015

Bit Shipment (YoY)

11

2

5.61 5.8 5.1

2011 2012 2013 2014 2015

Capex


03

MARKET OUTLOOK


PC DRAM price decline continue in early Q4,

however inventory is gradually reducing

Seasonal demand gradually picking up in market

other than PC

Potential positive demand outlook from iPhone 6s and

major brand smartphone

Expect Skylake gradually increasing PC DRAM

demand by year end, and 2016

Upcoming holiday season for consumer electronics,

TV, STB

DRAM Market Outlook


04

BUSINESS OUTLOOK


Business Outlook

Q4 bit shipment up single digits.

30nm Design Shrink exceed 50% output Q4’15.

Cost improvement targets mid single digits Q4’15.

Resume equity funding plan.

20nm conversion plan on schedule.

nanya.com 19 October 12, 2015 © 2015 Nanya Technology Corp.

Thanks & Questions

“The slides herein and the presentation made during the conference contain forward-looking statements and are provided for

information purposes only. Neither Nanya Technology Corp. nor any other person assumes responsibility for the accuracy and

completeness of the forward-looking statements or undertakes duty to update the statements. Investor(s) is urged to review

carefully the information provided herein and shall make investment decision after conducting their own investigation.”


Q3'15 Q2'15 QoQ

Q3'14 YoY

Audited Amount: Million NT$ Unaudited Audited

Net Sales 10,337 100.0% 11,156 100.0% -7.3% 13,091 100.0% -21.0%

Cost of Goods Sold 6,480 62.7% 6,468 58.0% 6,828 52.2%

Gross Margin 3,858 37.3% 4,688 42.0% -17.7% 6,262 47.8% -38.4%

SG&A Expenses 422 4.1% 425 3.8% 453 3.5%

R&D Expenses 484 4.7% 354 3.2% 358 2.7%

Operating Income 2,952 28.6% 3,908 35.0% -24.5% 5,452 41.6% -45.9%

Non-operating Income (Exp.) 1,771 17.1% 847 7.6% 2,883 22.0%

Income before Tax 4,722 45.7% 4,755 42.6% -0.7% 8,335 63.7% -43.3%

Income Tax Benefit (Expense) -2 -0.0% -490 -4.4% -874 -6.7%

Profit from Continuing Operation 4,720 45.7% 4,265 38.2% 7,461 57.0%

Income (Loss) from Discontinued

Operation 0 0.0% 0 0.0% 4 0.0%

Net income attributable to

noncontrolling interests 5 0.0% 10 0.1% 3 0.0%

Net Income attributable to NTC 4,715 45.6% 4,254 38.1% 10.8% 7,463 57.0% -36.8%

EPS(NT$) 1.94 1.75 3.11

Book Value Per Share 21.57 19.62 13.39

3Q’15 Consolidated Income Statement

nanya technology 3q 2010 investor conference

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