Nanya Presentation Material 20140318 ENG

8/12/2019 Nanya Presentation Material 20140318 ENG

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Dr. Pei-Ing Lee

SVP & Spokesman

March 18th-19th, 2014

The BofAML TTB2014 Conference

Nanya Technology Corporation


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2March 18, 2014

Company Profile


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NTC Shareholders

Approximately 87%shares owned by FPG conglomerate


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4March 18, 2014

Nanya Fab 3A 300mm Fabricat ion

Location : New Taipei City, Taiwan, 2007

Capacity :55,000 WSPM*

Technology : 30nm/42nm/50nm

Product : Specialty DRAM (Consumer,Industrial, Mobile) and elixir

*WSPM = wafers per month

30nm wafer output over 70% of total capacity


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Nanya & FPG DRAM Operat ion Framework

Nanya and FPG affiliates jointly own 36.79% of Inoterasownership.

FPGs affiliated companies (Nanya + Inotera) contributed 15% of worldwide DRAMcapacity, estimated 50% of non-Korea DRAM capacity.

Nanya recognized NT$ 5,012 Million from Inoterasprofits in 2013 through EquityMethod.

Nanya has the right to license 20nm technology from Micron.

Shareholding,

35.34%Shareholding,

86.87%

Shareholding,36.79%(Nanya included,26.17%)

55,000 WSPM 120,000 WSPM

FPG


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Financial Review


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Annual Revenue

37,12533,882

46,975

-111% -109%

17%

2011 2012 2013

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


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2013 vs. 2012

Revenue +38.6%

Shipment Flat

ASP +37.4%

Exchange Rate +0.2 %

2013 Revenue Resu lts


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2013 Income Statement

Y2013 Y2012YoY

Amount: Million NT$ Audited Audited

Net Sales 46,975 100% 33,882 100% 39%

Cost of Goods Sold 39,465 84% 56,169 166%

Gross Margin 7,510 16% -22,287 -66% SG&A Expenses 1,892 4% 2,076 6%

R&D Expenses 1,518 3% 6,192 18%

Operating Income 4,100 9% -30,555 -90% Non-operating Income (Exp.) 4,050 9% -5,411 -16%

Income before Tax 8,150 17% -35,966 -106% Income Tax Benefit (Expense) -39 0% -53 0%

Net income attributable to noncontrollinginterests

-27 0% 13 0%

Net Income attributable to NTC 8,138 17% -36,033 -106% EPS(NT$) 0.34 -2.24


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2013 Cash Flows

4Q'13 3Q'13 2Q'13 1Q'13

(Unit: Million NT$) Audited Audited Audited Audited

Net Cash Provided by OperatingActivities

5,157 4,414 5,232 -1,468

therein depreciation & amortization 1,722 1,671 1,674 1,684

Net Cash Used in Investing Activities -94 -751 -4,821 -1,671

Free Cash Flow 5,063 3,663 411 -3,139

Net Cash Provided by FinancingActivities

-4,202 -5,246 1,751 -5,653

Free Cash Flow = Net Cash Provided by Operating Activities + Net Cash Used in Investing Activities


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48%55%

8%

10%10%

7%

34%28%

0%

50%

100%

Q1'13 Q2'13 Q3'13 Q4'13

Sales Breakdown by App l icat ion

* Revenue portion

%o

fTotalR

evenue

Applications

Commodity

Sever

Low Power

Consumer &

Specialty

Non PC :reach 72%Non

PC :

66%


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Applications

Commodity

Sever

Low Power

Consumer &Specialty

Consumer &

Specialty :

>60%

Low Power :

>20%Non

PC :

54%

2014 Revenue Breakdown Guidance

* Revenue portion by Application

Non-PC:

>80%


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Driv ing Bus iness to Divers i f ied Segments

Growing Product Portfolios are: Storage, Printer, Networking, KGD,

Industrial Grade, Automotive, Pachinko, Low Poweretc.


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Business Update

Capex NT$5.61B Capex of 2013.Estimated NT$3.05B for 2014 Capex.

(mainly for 30nm capacity enhancement and 20nm preparation.)

Bit Shipment Flat bit growth in 2013 YoY. Estimated up to mid-teen% bit shipment decrease in 2014.

NT$ Billion

12 13

23

11

2

5.61

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014

Capex

3.05


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Market Outlook


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DRAM Market Out look Moderate 2014

Market Outlook

Supply The oligopolistic market structure will lead to limited DRAM growth.

Supply remain stable in Q114, supply growth expected in Q214.

Demand

New game consoles (PS4, XBOX one) increase the Graphic DRAM and

DDR3 demand.

Increasing ratio in 4K/2K and smart TV and OTT high end settop box. Server business remain strong.

PC market slightly better than expectation.

DRAM demand will be stimulated by various applications from mobilephones, computer servers and wearable devices.

Price Expect stable DRAM pricing in Q114, moderate correction in Q214, and

remain healthy throughout 2014.


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102%98%

95%

50%

100%

150%

0

7,000

14,000

21,000

28,000

35,000

2012 2013 2014F

Supply, 2Gb eqv. M Demand, 2Gb eqv. M Suff iciency

Y2013/Y2014 DRAM Supp ly -Demand

DRAM supply shortfall continuing into 2014. DRAM Supply/ Demand insufficiency with limited capacity addition and DRAM demand

profile strengthen.Source: Gartner, 2013/12


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DRAM Demand Driven by Non -PC

Source: Gartner, 2013/Q4


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DRAM Demand Driven by Non-PC

0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014 2015 2016 2017

Others

Consumer+AIMM*

Mobile Phone

Tablet

Server

Ultramobile PC

NB PC

DT PC

DRAM

BitShare

AIMM* = Automotive, Industrial, Medical, Military

Server

Mobile

Phone

Tablet

PC

Source: Gartner , NTC marketing


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Business Outlook


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2014 Business Out look

Nanya BOD Approved 90% Capital Reduction Plan, summit to

AGM for approval 6/6/2014.

Nanya BOD approved VIS acquisition of Sumpros8-inch Fab at

approximately NT$ 2.18 billion, target closing 7/1/2014. Improved Gross Margin projected for Q114.

Improve Financial Structure & Outlook

Non-PC sales revenue targeted 80% in 2014.

Launched Die Shrink Program.

Focus on Consumer and Low Power Business


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Q & A

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.

Nanya Presentation Material 20140318 ENG

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