Slide 1: 2H24 Investor Conference
2H24 Investor Conference Feb. 19th, 2025 1
Slide 2: Safe Harbor Notice
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
Slide 3: Agenda
Agenda 01 Financial Results Chih-Chung Chou - CFO 02 Business Recap & Outlook James Chen - President 03 Excellence & Progress James Chen - President 04 Q & A James Chen & Chih-Chung Chou 3
Slide 4: Financial Results
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Slide 5: Statement of Comprehensive Income - Consolidated
Statement of Comprehensive Income - Consolidated (In NT$ millions unless otherwise noted) 4Q24 3Q24 QoQ 4Q23 YoY Net Sales 18,692 21,312 -12.3% 19,174 -2.5% Gross Profit 5,081 6,246 -18.7% 5,458 -6.9% Gross Margin 27.2% 29.3% -2 ppts 28.5% -1 ppts Operating Expenses 5,822 5,974 -2.5% 5,884 -1.1% Ope
Slide 6: Revenue by Products - Consolidated
Revenue by Products - Consolidated 37% 4Q24 vs. 3Q24 (QoQ) 31% 32% 33% 28% 28% 28% 29% 27% NT$M 21,484 21,312 20,121 19,224 19,506 19,174 18,811 18,692 -712 17,516 -1,082 -841 38% 37% 42% CMS Flash Logic IC 50% 45% 43% 38% 47% 51% 30% 35% 37% 4Q24 vs. 4Q23 (YoY) 34% 32% 38% 32% 33% 29% 1,085 22% 26%
Slide 7: Revenue and Gross Margin by Products
Revenue and Gross Margin by Products NT$M Memory Logic IC NT$M 33% 30% 20% 21% 21% 18% 16% 15% 10% 40% 40% 40% 42% 42% 40% 37% 38% 12,948 12,941 34% 11,283 11,018 10,132 10,349 9,453 9,541 9,391 58% 8,838 8,859 8,871 62% 8,318 8,417 8,171 8,151 54% 7,905 65% 7,193 59% 65% 64% 66% 63% 46% 42% 38% 35%
Slide 8: Memory Business Quarterly Highlights
Memory Business Quarterly Highlights (In NT$ millions unless otherwise noted) 4Q24 3Q24 QoQ 4Q23 YoY Net Sales 11,018 12,941 -14.9% 10,349 +6.5% Gross Profit 1,934 2,777 -30.4% 1,668 +16.0% Gross Margin 17.6% 21.5% -4 ppts 16.1% +1 ppts Operating Expenses 2,525 2,573 -1.8% 2,443 +3.4% Operating Inco
Slide 9: Balance Sheet - Consolidated
Balance Sheet - Consolidated (In NT$ millions unless otherwise noted) 12.31.2024 09.30.2024 12.31.2023 Cash & Cash Equivalents 14,100 8% 15,505 8% 16,963 9% Accounts Receivable 10,038 6% 11,563 6% 9,784 5% Inventories 24,201 13% 23,057 13% 23,870 13% Long-term Investments 19,152 11% 24,379 13% 26,90
Slide 10: Statement of Cash Flow - Consolidated
Statement of Cash Flow - Consolidated (In NT$ millions unless otherwise noted) 4Q24 3Q24 4Q23 2024 2023 Cash Flow from Operating Activities 2,550 2,096 2,960 11,126 3,601 Depreciation & Amortization 3,203 3,236 2,996 12,687 11,856 Cash Flow from Investing Activities (3,370) (2,982) (6,535) (16,658)
Slide 11: 2024 Financial Highlights
2024 Financial Highlights (In NT$ millions unless otherwise noted) 2024 2023 YoY Net Sales 81,610 75,006 +8.8% Gross Margin 29% 30% -1 ppts Operating Margin 0.6% -2.2% +3 ppts Net Income 710 34 +676 EPS (NT$) NT$0.14 NT$-0.29 Operating Cash Flow 11,126 3,601 +7,525 CAPEX 17,057 13,787 +3,270 Free Ca
Slide 12: Operating Expenses - Consolidated
Operating Expenses - Consolidated NT$M 34% 33% 32% 31% 31% 31% 29% 28% 28% 6,243 6,204 5,961 5,978 5,884 5,949 5,974 5,822 5,748 898 853 884 839 802 791 799 783 782 SG&A 938 864 917 971 912 1,040 985 994 1,561 2,219 2,170 2,151 2,242 2,202 2,176 2,129 2,066 2,233 R&D 1,551 1,971 2,194 2,051 1,909 1,
Slide 13: Logic Business Performance - Nuvoton Income Statement
Logic Business Performance - Nuvoton Income Statement (In NT$ millions unless otherwise noted) 4Q24 3Q24 QoQ 4Q23 YoY Net Sales 7,270 7,957 -8.6% 8,470 -14.2% Gross Profit 2,769 2,972 -6.8% 3,354 -17.4% Gross Margin 38.1% 37.3% +1 ppts 39.6% -2 ppts Operating Expenses 2,989 3,004 -0.5% 3,114 -4.0% O
Slide 14: Logic Business Performance - Nuvoton Balance Sheets
Logic Business Performance - Nuvoton Balance Sheets (In NT$ millions unless otherwise noted) 12.31.2024 09.30.2024 12.31.2023 Cash & Cash Equivalents 5,704 19% 5,272 17% 6,325 20% Accounts Receivable 3,604 12% 4,013 13% 4,122 13% Inventories 7,126 24% 6,759 22% 7,756 24% Long-term Investments 3,353
Slide 15: Corporate Value
Corporate Value EPS EBITDA NT Dollar 3.41 NT$M 3.23 30% 29% 22% 19% 18% 16% 0.32 0.33 (0.29) 0.14 30,085 27,690 2019 2020 2021 2022 2023 2024 BVPS 15,005 NT Dollar 23.66 11,571 12,151 22.08 10,749 20.71 20.37 16.44 15.33 2019 2020 2021 2022 2023 2024 EBITDA EBITDA to Revenue 2019 2020 2021 2022 2023
Slide 16: Memory CAPEX
Memory CAPEX 40.8 (NT$ B) 15.5 12.7 9.3 5.3 2021 2022 2023 2024 2025(E) Paid Estimated Cash Basis, as of Feb.19th, 2025 • 2024 CAPEX was NT$15.5B • 2025 CAPEX is estimated approx. NT$5.3B, in which WFE CAPEX accounts for ~70% 16
Slide 17: Business Recap & Outlook
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Slide 18: Memory Revenue Results
Memory Revenue Results QoQ YoY 4Q24 vs. 3Q24 4Q24 vs. 4Q23 CMS CMS Revenue -22% -10% Bit Shipment Decreased high-teens% Decreased low-teens% Blended ASP Decreased low-single digit% Increased low-single digit% Flash Flash Revenue -11% +18% Bit Shipment Decreased mid-single digit% Increased mid-teens%
Slide 19: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application Car & Industrial Communication QoQ -4% QoQ -17% Car & Comm. NT$M NT$M Industrial 22% 23% 4,000 4,000 3Q24 3,000 3,000 Computer Consumer 25% 2,000 2,000 30% 1,000 1,000 0 0 3Q24 4Q24 3Q24 4Q24 Consumer Computer QoQ -27% QoQ -5% Car & Comm. 21% NT$M NT$
Slide 20: Memory Business Revenue Breakdown by Application
Memory Business Revenue Breakdown by Application Car & Industrial Communication NT$M NT$M Car & YoY +18% 16,000 YoY +20% Industrial Comm. 26% 25% 14,000 12,000 12,000 2023 10,000 10,000 Computer 8,000 8,000 Consumer 24% 6,000 6,000 25% 4,000 4,000 2,000 2,000 0 0 2023 2024 2023 2024 Consumer Compute
Slide 21: Flash Business
Flash Business ❑ Revenue in 2024 increased by 20% YoY ❑ NOR Flash bit shipment in 2024 increased in the mid-20% range YoY ❑ Stably leading as WW No.1 NOR Flash supplier 6% 8% 10% 7% 4% 12% 3% 1% 3% 11% 15% 13% 6% 8% 4% 21% 14% 13% 3% 18% 64% 66% 67% 65% 63% 63% 61% 63% 63% 15% 16% 15% 18% 19% 16% 16
Slide 22: CMS Business
CMS Business ❑ Revenue in 2024 increased by 38% YoY ❑ Bit shipment in 2024 increased in the mid-70% range YoY, driven by DDR4 growth ❑ Revenue contribution from 20nm continued to grow in 2024 2% 3% 20% 5% 26% 18% 15% 6% 7% 17% 6% 4% 49% 56% 54% 47% 50% 51% 56% 52% 47% 11% 10% 10% 10% 9% 9% 10% 9% 11
Slide 23: Market and Business Outlook (1)
Market and Business Outlook (1) ❑ Code Storage Flash • A balanced supply-demand for NOR is expected in 1H25, with mild demand growth anticipated in 2H25 • SLC NAND inventory digestion is nearing completion, with potential supply tightness expected in 2H25 • Healthy demand: Server, Wearable, Smart ho
Slide 24: Market and Business Outlook (2)
Market and Business Outlook (2) ❑ Overall Market • US-China competition and US tariff policies remain uncertain, making regional risk management increasingly essential • Edge AI and low-power electronic devices are driving memory industry transformation • ESG trend accelerates the effort in green pr
Slide 25: Excellence and Progress
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Slide 26: Innovation Drives Stable Growth
Innovation Drives Stable Growth ❑ Winbond operations becoming less affected by the memory cycle ⚫ Demonstrated greater resilience than the peers over past years ⚫ Flash and Logic IC businesses bring stable profitability ⚫ Innovating tailored solutions to stay ahead of customer expectations ⚫ Green I
Slide 27: Green Innovation & Strong Customer Partnership
Green Innovation & Strong Customer Partnership ❑ Our strategy addressing rising Green-driven Demand ⚫ Cutting-Edge Green Technology and Product ⚫ Continuously Sourcing Renewable Energy ⚫ Proprietary Carbon Accounting System ❑ Strengthening customer partnership ⚫ Ensuring our green technologies and p
Slide 28: Cutting-Edge Green Technology and Product
Cutting-Edge Green Technology and Product ❑ Technology ❑ Product ⚫ Low Power Consumption ⚫ Low-Power NOR Flash Memory ⚫ High Performance ⚫ High-Performance NAND Flash Memory ⚫ Small Size and Small Form Factor ⚫ Low-Power Mobile Memory ❑ World First 1.2V NOR Flash Memory Current Achievement and Custo
Slide 29: Continuously Sourcing Renewable Energy
Continuously Sourcing Renewable Energy ❑ We aim to reach RE50 in 2030 ⚫ We have reached RE6 in 2024 RE50 ⚫ The existing CPPA and in-house solar will RE45 enable us to achieve RE45 in 2029 RE26 RE6 2024 2025 2026 2027 2028 2029 2030 2031 2032 29
Slide 30: Why Develop a Carbon Accounting System
Why Develop a Carbon Accounting System Calculating Cost with $ and CO2e To achieve the goal of net-zero carbon emissions, data collection is part of SBTi. However, there are plenty of challenges for this job. 2050 Net-Zero Goal Pain Points • Carbon fee • CBAM Massive Data • Carbon Credits • Green Fi
Slide 31: Winbond Carbon Accounting System
Winbond Carbon Accounting System Winbond has developed a proprietary modular carbon accounting system in combination with ERP-related systems Scope Scope Scope AIS SAP Subcon 1 2 3 EDW Raw materials Business travel Fuel card PR/PO Exp. Reimb. VOCs Zeolite EDWM Employee Rotor commuting Downstream tra
Slide 32: Winbond's Carbon Inventory and Carbon Footprint
Winbond’s Carbon Inventory and Carbon Footprint Digital Transformation is Fundamental Carbon calculation: ISO 14064 for company emissions. Green product lifecycle: Following ISO 14067, calculate the carbon emissions of products. 1 Collect activity data 2 Aggregate data into EDW 4 Calculate prod. lif
Slide 33: Taiwan Carbon Fee Introduction and the Push for Progress
Taiwan Carbon Fee Introduction and the Push for Progress Taiwan Carbon Fee (TAX) Apply for Carbon fee Dry run 2024 Voluntary relative regulations Carbon fee launch Implement carbon fee emissions amounts Reduction Plans Pay 2025 carbon fee Yet, Scope 3 is the largest 2024/8/29 10/21 2025/1/1 5/31 6/3
Slide 34: Green Product & Carbon Emission Data
Green Product & Carbon Emission Data ❑ Green product (manufactured with green electricity) is in MP now. ❑ Carbon data can be in PACT format or specified. Note: PACT: Partnership for Carbon Transparency by WBCSD 34
Slide 35: Proprietary Carbon Accounting System
Proprietary Carbon Accounting System 35
Slide 36: Proprietary Carbon Accounting System
Proprietary Carbon Accounting System 36
Slide 37: Proprietary Carbon Accounting System
Proprietary Carbon Accounting System *Certain information is subject to company confidentiality. 37
Slide 38: Carbon Footprint Disclaimer
Carbon Footprint Disclaimer Our company is committed to promoting sustainability and reducing carbon emissions, and we make every effort to ensure that the carbon footprint data disclosed in relation to our products, services, and operations is accurate. However, as carbon footprint calculations inv
Slide 39: Proprietary Carbon Accounting System (Demo)
Proprietary Carbon Accounting System (Demo) 39
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Slide 41: Thank you
Thank you mam Winbond