Slide 1: Financial Results & Company Outlook
Scan & Join Phison's IR list Financial Results & Company Outlook 2022 First Quarter K.S. Pua | CEO of Phison May 6, 2022 CONFIDENTIAL 1Q22 Financial Results
Slide 2: Forward-Looking Statement
Forward-Looking Statement Information included in this earning meeting that are not historical in nature are "forward looking statements“. Phison cautions readers that forward looking statements are based on Phison’sreasonable knowledge and current expectations and are subject to various risks and u
Slide 3: Executive Summary
Executive Summary 1 Phison’s Business Transformation 2 Financial Results 3 Business Highlights 4 Technology Leadership Update 5 Q&A CONFIDENTIAL 1Q22 Financial Results
Slide 4: Phison's Business Transformation
1 Phison’s Business Transformation CONFIDENTIAL 1Q22 Financial Results
Slide 5: Phison's Continuous Transformation Improves Non-consumer Storage Market Results
Phison’s Continuous Transformation Improves Non-consumer Storage Market Results Gaming Enterprise Automotive Industrial Embedded ODM Technology-Leadership Application-Driven Consumer-Driven 70 62.6 60 48.5 50 43.8 44.7 41.9 40.8 Billion in NTD 37.4 40 31.8 32.3 33.1 32.2 33.1 30 24.5 20.3 18.9 17.1
Slide 6: Phison's Non-consumer Deployment Reduces NAND Market Fluctuation Impact
Phison’s Non-consumer Deployment Reduces NAND Market Fluctuation Impact Revenue from Non-consumer/retail Products Others 6% Consumer/Retail Module 20% Embedded ODM Module 21% 1Q22 Revenue Contribution Gaming Module Controller 12% 29% Industrial Module 12% Note: Controller revenue contribution includ
Slide 7: The New Focus of Phison's 5+5 Growth Strategy
The New Focus of Phison's 5+5 Growth Strategy Y2022 Y2021 Y2017 Y 2010 Before Phison 2009 AMD eco-system Partner New Y2000 R&D from Y2019 Focus Investment Industrial Expansion Gaming Consumer Market Focus Enterprise Retail Embedded ODM Market Focus Automotive Market Focus Market Focus Founded NT$31.
Slide 8: 1Q22 Financial Results
2 1Q22 Financial Results CONFIDENTIAL 1Q22 Financial Results
Slide 9: 1Q22 Revenue and Gross Profit
1Q22 Revenue and Gross Profit 1Q22 Revenue 1Q22 Gross Profit $17.1B $5.395B Revenue up 32.7% YoY Gross profit 41.8% YoY A record high for the same period A record high for the same period A record high for single quarter A record high for single quarter Revenue in $NT CONFIDENTIAL 1Q22 Financial Res
Slide 10: 1Q22 Business performance: ASIC and Module
1Q22 Business performance 29% of total revenue in 4Q 2021 ASIC 26% 77% YoY SATA and PCIe total controller unit growth YoY PCIe controller unit growth 65% of total revenue in 4Q 2021 3% YoY unit growth in BGA SSD modules Module 18% YoY revenue growth in gaming modules 125% YoY revenue growth in embed
Slide 11: Revenue Trend
Revenue Trend Successful transformation of the non-consumer storage market, Single-quarter revenue maintaining stable revenue growth hits record high Revenue NT$ millions $16,927 $17,106 $16,833 $15,910 $12,866 $12,844 $12,888 $11,933 $10,854 $62.557 billion NTD 2021 yearly revenue Record high for t
Slide 12: Gross Margin Rate Trend
Gross Margin Rate Trend Continue to improve the non-consumer product portfolio, maintaining a stable gross margin rate Gross Margin % 32.5% 31.6% 31.5% 30.0% 29.5% 28.4% 24.6% 23.0% 23.1% 25.3% 30.53% 2020 yearly gross profit margin 2021 yearly gross profit margin 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 13: Earnings Per Share Trend
Earnings Per Share Trend Phison’s unique business model drives strong profitability In $NT Disposal of HFCS $19.20 $12.26 Epostar disposed subsidiary Disposal of $12.10 KSI $11.49 $9.63 $9.30 $11.09 $1.66 $4.02 $9.19 $8.56 $7.97 $6.94 $6.00 $5.28 $26.19 TWD + one-time gain $17.94 TWD $41.34 TWD 2020
Slide 14: Income Statement Highlights
Income Statement Highlights A record high over the same period in history NT$mn 1Q22 4Q21 Q/Q (%) 1Q21 Y/Y (%) Revenue in US$Mn 613 605 1.3 455 34.7 Revenue 17,106 16,833 1.6 12,888 32.7 Gross Profit 5,395 4,776 13.0 3,804 41.8 Operating Expenses 2,935 2,916 0.7 1,968 49.1 Operating Profit 2460 1,86
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights 1Q22 4Q21 1Q21 NT$mn Amount % Amount % Amount % Total Assets 63,155 100.0 63,021 100.0 51,716 100.0 Cash & Current Financial 13,947 22.1 20,248 32.1 18,676 36.1 assets at fair value Account Receivable 10,003 15.8 8,729 13.9 7,760 15.0 Inventories 23,780 37.7 19,497 30.9 13,1
Slide 16: April 2022 Consolidated Revenue
April 2022 Consolidated Revenue April 2022 Consolidated Revenue Cumulative Consolidated Revenue (Jan to Apr in 2022) $5.902B $23.008B Revenue up 28% YoY Revenue up 16% YoY A record high over the same period in history A record high over the same period in history *The unit of revenue is NTD CONFIDEN
Slide 17: Business Highlights
3 Business Highlights CONFIDENTIAL 1Q22 Financial Results
Slide 18: Phison Ranked Top 10 Storage Companies Globally
Phison Ranked Top 10 Storage Companies Globally Phison Ranked Top 10 Storage Companies Globally in 2021 https://www.storagenewsletter.com/2022/03/22/top-storage-companies-in-2021/ CONFIDENTIAL 1Q22 Financial Results
Slide 19: 1Q22 Business Highlights
1Q22 Business Highlights Retail OEM Gaming Server / DC Industrial • Phison Gen4 SSD E16, • Phison Gen4 E21T SSD • Phison Gen4 E19T SSD • Phison SATA S12DC SSD • Phison PS8211 SD card E19T, and E18 were solution started to ramp up enabled multiple gaming solution qualitied by data solution installed
Slide 20: 2Q22 NAND Market Highlights
2Q22 NAND Market Highlights Seagate and Phison Broaden Phison Strengthens its Phison Gen5 SSD Phison’s Self-Designed Partnership to Bolster Position in Automotive Controller E26 ReDriver IC PS7101 already Portfolio of Enterprise-Class Storage Market: Secures Awarded Best Of CES 2022 Passed all PCIe
Slide 21: Technology Leadership Update
4 Technology Leadership Update CONFIDENTIAL 1Q22 Financial Results
Slide 22: Continue to Strengthen Phison Leading Technology Position
Continue to Strengthen Phison Leading Technology Position Category 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 R&D Exp. / Revenue (%) 5% 6% 7% 9% 9% 11% 14% 13% 14% R&D Exp. / Operating Exp. 65% 71% 73% 78% 79% 79% 81% 81% 79% Phison R&D Expenses in USD/Mn 2014 2015 2016 2017 2018 2019 2020 2021 1Q
Slide 23: Phison Aims to Be the World's Most Influential NAND Controller
2025 and beyond Phison Aims to Be the World’s Most Influential NAND Controller Most Influential NAND Supplier Controller Supplier Our technology leadership will 2019 - 2024 continuously expand across all NAND applications Leading Edge Technology Our leading technology will drive growth and Before 20
Slide 24: If you have any other questions, please feel free to ask
If you have any other questions, please feel free to ask CONFIDENTIAL 1Q22 Financial Results