A Global Supplier of Advanced Memory Solutions 2Q11 Investor Conference 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 forwardlooking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties and assumptions about us. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements. The information contained herein shall also not constitute an offer to sell or a solicitation of an offer to buy the company’s securities nor shall there be any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country. Agenda • 2Q11 Financial Results • Business Update & Outlook • Q&A 2Q11 Financial Results 2Q11 Income Statement(QoQ) 1Q’11 2Q’11 QoQ change Amount % Amount Net Sales 7,420 100 7,159 100 261 4 Gross Profit 1,234 17 1,035 14 199 19 Operating Income 339 5 224 3 115 51 Pretax Income 324 4 142 2 182 129 Net Income 269 4 118 2 151 129 EPS (NTD) 0.08 0.05 167 Unit: NT$ mil EBITDA 2,841 % 0.03 38 3,058 Amount % 43 Note: 1. All financial figures are unconsolidated 5 2Q11 Income Statement(YoY) 2Q’11 Unit: NT$ mil Amount 2Q’10 % Amount YoY change % Amount % Net Sales 7,420 100 8,531 100 (1,111) (13) Gross Profit 1,234 17 2,119 25 (885) (42) Operating Income 339 5 1,290 15 (951) (74) Pretax Income 324 4 1,236 14 (912) (74) Net Income 269 4 1,236 14 (967) (78) EPS (NTD) 0.08 (0.25) (76) EBITDA 2,841 0.33 38 3,967 47 Note: 1. All financial figures are unconsolidated 6 Balance Sheet as of Jun. 30, 2011 Jun 30 ’11 Unit: NT$ mil Cash & Equivalents Amount Mar 31 ’11 % Amount QoQ change % Amount % 4,250 7 4,912 8 (662) (13) Net Fixed Assets 36,686 59 37,127 59 (441) (1) Total Assets 62,311 100 62,903 100 (592) (1) L-T Liabilities 8,792 14 9,200 15 (408) (4) 37,366 60 37,349 59 17 0 SH Equity Current Ratio 1.01 0.97 Net Debt/ Equity Ratio 0.38 0.40 Note: 1. All financial figures are unconsolidated 7 2Q11 Statement of Cash flow Unit: NT$ mil 2Q’11 1Q’11 QoQ change Amount Amount Amount 2,605 2,848 (243) Investing Cash Flow (1,842) (1,929) 87 Financing Cash Flow (1,425) (239) (1,186) Cash & Equivalents 4,250 4,912 (662) Depreciation and Amortization 2,502 2,834 (332) CAPEX 1,721 1,492 229 Operating Cash Flow Note: 1. All financial figures are unconsolidated 8 Revenue and GM Trend - Winbond alone Revenue (NT$ bil) Gross Margin 10.0 40% 8.0 25% 17% 16% 6.0 24% 12% 8.5 4.0 5.7 8.6 7.0 6.5 7.7 14% 7.2 17% 7.4 2.0 0.0 20% 0% -2% -2.0 -20% 3Q09 4Q09 1Q10 2Q10 Revenue 3Q10 Gross Profit 4Q10 1Q11 2Q11 GM% Note: 1. All financial figures are unconsolidated 9 Revenue (NT$ bil) Revenue and GM Trend - Consolidated 12.0 8.0 6.0 40% 29% 10.0 21% 28% 22% 9% 17% 19% 8.3 9.6 10.7 8.9 22% 20% 10.8 7.8 Gross Margin 9.5 8.9 0% 4.0 2.0 -20% 0.0 -2.0 -40% 3Q09 4Q09 Revenue 1Q10 2Q10 3Q10 Gross Profit 4Q10 1Q11 2Q11 GM% Note: 1. Entities in the consolidated statements include Nuvoton, WEC America, WEC Japan, etc.. 2. Figures before Y2009 were re-classified in accordance with SFAS NO.10 10 Geometry Breakdown Thousand Wafers per Quarter 120 100 65nm 80 60 40 75nm 80nm 90nm 20 110nm - 2Q09 4Q09 2Q10 4Q10 2Q11 • Memory Geometry in 2Q11 : 5% in 110nm, 54% in 90nm and 41% in 65nm. 11 Y2011 CAPEX NT$ Billion 16 14 14.1 12 10 7.35 8 6.21 6 4.2 Purposes of Y2011 CAPEX : • 90nm & 58nm Flash capacity to 14K WPM 4 2 • 65 & 46nm DRAM capacity to 20K WPM. 0 Y2008 Y2009 Y2010 Y2011 Cash Basis CAPEX as of 8/5/2011 12 Business Update and Outlook Revenue Breakdown by Product Revenue (NT$ bil) 9.0 8.5 8.6 7.7 8.0 7.0 7.0 6.5 6.0 5.7 5.0 15% 4.0 3.0 2.0 1.0 12% 42% 4% 26% 18% 16% 41% 3Q09 7.4 27% 18% 18% 31% 38% 16% 10% 4Q09 1Q10 40% 12% 2% 2Q10 Graphics 28% QoQ YoY % % 34% 24% 29% 13% Commodity 28% 21% 8% 0.0 28% 7.2 25% Flash 11% 2% Mobile -10% 18% Specialty 18% -9% 39% 35% 36% 9% 9% 4% 3Q10 4Q10 1Q11 Specialty Mobile Flash 42% 2Q11 14 12” Fab Output by Product Wafer out (K pcs) 40 35K 35 33K 32K 2 3 4 31 30 29 30 25 33K 6 36K 36K 35K 7 6 8 29 28 36K 11 23K 22K 1 20 15 10 22 22 1Q09 2Q09 30 29 25 5 3Q09 4Q09 1Q10 2Q10 DRAM 3Q10 4Q10 1Q11 2Q11 Flash 15 Flash Memory Business +11% QoQ / +2% YoY Mobile phone application accounted for 10% revenue in Q2 Serial Flash ─ Provide complete serial Flash solution in new mobile phone platforms ─ 58nm product released for customer design-in Parallel Flash ─ Many design-in’s completed in 1H ─ Business ramps up in 2H 16 Mobile RAM Business -10% QoQ/ +18% YoY Pseudo RAM ─ Increasing price pressure due to weak mobile phone demand in China and MCP-to-SiP platform migration ─ 65nm products accounted for 40% revenue in June ─ Slow demand remains in Q3 Low Power DRAM ─ Ongoing promotion in networking and handheld applications 17 Specialty DRAM Business 18% QoQ / -9% YoY Strong demand in HDD and Printer drove growth in Q2 65nm products accounted for 80% revenue in June Continuous improvement in product mix and customer mix 46nm 2Gb DDR3 product vehicle achieved satisfactory yield ─ Own-design specialty 46nm DRAM products to be introduced in Q4 18 Market Challenges Ahead Global economy slows down NTD appreciation erodes profit Oversupply is driving down component price ─ Slower demand growth ─ Output increases driven by technology migration Impacts on Winbond 2H business ─ Price pressure in all product segments ─ Mobile RAM: Inventory adjustment and platform shift ─ Specialty DRAM: Stay flat with diversified business base 19 Opportunities to Winbond Product cost down ─ 65nm DRAM production increases to 20K wafers/mo in Q3 ─ Flash production increases to 14K wafers/mo in Q3 ─ 58nm Flash products into mass production in Q4 ─ 46nm DRAM products to be introduced in Q4 Business expansion into new markets ─ Fast business growth in mobile phone segment ─ Steady business growth in KGD, industrial and automotive applications 20 Q uestions & A nswers Website: www.winbond.com 21