Nanya Technology Corporation

The BofAML TTB 2014 Conference

Dr. Pei-Ing Lee SVP & Spokesman March 18th-19th , 2014
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Company Profile

March 18, 2014

NTC Shareholders
Approximately 87% shares owned by FPG conglomerate

March 18, 2014

Nanya Fab 3A 300mm Fabrication

Location : New Taipei City, Taiwan, 2007

Capacity
Technology Product

: 55,000 WSPM*
: 30nm/42nm/50nm : Specialty DRAM (Consumer, Industrial, Mobile) and elixir

30nm wafer output over 70% of total capacity

*WSPM = wafers per month March 18, 2014

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Nanya & FPG DRAM Operation Framework

FPG
Shareholding,
Shareholding,

86.87%

36.79% (Nanya included, 26.17%)

Shareholding,

35.34%

55,000 WSPM

120,000 WSPM

Nanya and FPG affiliates jointly own 36.79% of Inoteras ownership. FPGs affiliated companies (Nanya + Inotera) contributed 15% of worldwide DRAM capacity, estimated 50% of non-Korea DRAM capacity. Nanya recognized NT$ 5,012 Million from Inoteras profits in 2013 through Equity Method. Nanya has the right to license 20nm technology from Micron.

March 18, 2014

Financial Review

March 18, 2014

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

46,975 17% 37,125 33,882

-111%

-109%

2011

2012
March 18, 2014

2013
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2013 Revenue Results

2013 vs. 2012

Revenue Shipment ASP Exchange Rate +38.6% Flat +37.4% +0.2 %

March 18, 2014

2013 Income Statement

Y2013 Amount: Million NT$ Y2012

YoY Audited
46,975 39,465 100% 84%

Audited
33,882 56,169 100% 166% 39%

Net Sales
Cost of Goods Sold Gross Margin

7,510
1,892 1,518

16%
4% 3%

-22,287
2,076 6,192

-66%
6% 18%

SG&A Expenses
R&D Expenses Operating Income Non-operating Income (Exp.)

4,100
4,050 8,150 -39 -27 8,138 0.34

9%
9% 17% 0% 0% 17%

-30,555
-5,411 -35,966 -53 13 -36,033 -2.24

-90%
-16% -106% 0% 0% -106%

Income before Tax

Income Tax Benefit (Expense) Net income attributable to noncontrolling interests Net Income attributable to NTC EPS(NT$)

March 18, 2014

2013 Cash Flows

4Q'13 (Unit: Million NT$) Net Cash Provided by Operating Activities therein depreciation & amortization Audited 5,157 3Q'13 Audited 4,414 2Q'13 Audited 5,232 1Q'13 Audited -1,468

1,722

1,671

1,674

1,684

Net Cash Used in Investing Activities

-94

-751

-4,821

-1,671

Free Cash Flow Net Cash Provided by Financing Activities

5,063

3,663

411

-3,139

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

-4,202

-5,246

1,751

-5,653

March 18, 2014

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Sales Breakdown by Application

100% 28%
Non PC : 66%

Applications

34%

Non PC : reach 72%

Commodity

% of Total Revenue

7% 10%
Sever

10% 50% 8%

Low Power

48%

55%
Consumer & Specialty

0% Q1'13 Q2'13 Q3'13 Q4'13

March 18, 2014 * Revenue portion

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2014 Revenue Breakdown Guidance

Applications

Non-PC: >80%

Commodity

Non PC : 54%

Low Power : >20%

Sever Low Power Consumer & Specialty : >60%

Consumer & Specialty

* Revenue portion by Application

March 18, 2014

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Driving Business to Diversified Segments

Growing Product Portfolios are: Storage, Printer, Networking, KGD, Industrial Grade, Automotive, Pachinko, Low Poweretc.
March 18, 2014

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Business Update
NT$ Billion
25 20 15 10

Capex
23

12

13

11 5.61

5
0 2008 2009 2010 2011

2
2012 2013

3.05

2014

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.
March 18, 2014

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Market Outlook

March 18, 2014

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DRAM Market Outlook 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.
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 mobile phones, computer servers and wearable devices. Expect stable DRAM pricing in Q114, moderate correction in Q214, and remain healthy throughout 2014.

Demand

Price

March 18, 2014

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Y2013/Y2014 DRAM Supply-Demand

Supply, 2Gb eqv. M 35,000 Demand, 2Gb eqv. M Suf f iciency 150%

28,000

21,000

102%

98%

95%

100%

14,000

7,000

0 2012 2013 2014F

50%

DRAM supply shortfall continuing into 2014. DRAM Supply/ Demand insufficiency with limited capacity addition and DRAM demand profile strengthen. Source: Gartner, 2013/12
March 18, 2014

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DRAM Demand Driven by Non-PC

Source: Gartner, 2013/Q4

March 18, 2014

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DRAM Demand Driven by Non-PC

100% Others 80% Consumer+AIMM* Mobile Phone Tablet 40% Server 20% NB PC PC 0% 2010 2011 2012 2013 2014 2015 2016 2017 DT PC Tablet Server Ultramobile PC

DRAM Bit Share

60%

Mobile Phone

Source: Gartner , NTC marketing AIMM* = Automotive, Industrial, Medical, Military March 18, 2014

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Business Outlook

March 18, 2014

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2014 Business Outlook

Improve Financial Structure & Outlook
Nanya BOD Approved 90% Capital Reduction Plan, summit to AGM for approval 6/6/2014. Nanya BOD approved VIS acquisition of Sumpros 8-inch Fab at

approximately NT$ 2.18 billion, target closing 7/1/2014.

Improved Gross Margin projected for Q114.

Focus on Consumer and Low Power Business

Non-PC sales revenue targeted 80% in 2014.
Launched Die Shrink Program.
March 18, 2014

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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. March 18, 2014

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