UMC 4Q12 Financial Review February 06, 2013 NOTE CONCERNING FORWARD-LOOKING STATEMENTS This release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3, F-6 and 20-F, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP. This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. P. 2 Operating Results Summary Unit: NT M 2012 4Q / Dec Net Operating Revenues 2012 3Q / Sep 2011 4Q / Dec 26,088 28,525 24,425 Net Income 1,078 2,417 980 EPS (NTD) 0.09 0.19 0.08 31,757 32,050 30,829 264,220 272,922 258,293 61,770 67,016 50,556 202,450 205,906 207,737 1,069 1,133 915 80% 84% 68% Cash and Cash Equivalents Total Assets Total Liabilities Shareholders' Equity Wafer Shipment (in thousands- 8" wafer eq.) Utilization (%) P. 3 Income Statement - QoQ 4Q12 Net Operating Revenues % 3Q12 Unit: NT M Change % % 26,088 100.0 28,525 100.0 (8.5) 4,384 16.8 6,850 24.0 (36.0) (3,401) (13.0) (3,238) (11.3) 5.0 Gross Profit Operating Expenses Operating Income 983 3.8 3,612 12.7 (72.8) Net Non-operating Income 275 1.0 83 0.3 231.3 (180) (0.7) (1,278) (4.5) (85.9) 4.1 2,417 8.5 (55.4) Income Tax Expense Net Income 1,078 EPS (NTD) EPADS (USD) 0.09 0.016 0.19 0.033 Notes: 1. Information enclosed is UMC unconsolidated financial data. 2. An exchange rate of 29.03 was used to translate NTD to USD. 3. 12,636 million and 12,629 million shares were used in EPS calculations for 4Q12 and 3Q12, respectively. P. 4 Income Statement - YoY: 12 Months 2012 2011 % Jan~Dec Jan~Dec 105,998 100.0 105,880 Net Operating Revenues Gross Profit Operating Expenses Unit: NT M Change % % 100.0 0.1 22,524 21.2 23,995 22.7 (6.1) (13,423) (12.6) (13,857) (13.1) (3.1) 9,101 8.6 10,138 9.6 (10.2) 788 0.7 1,228 1.1 (35.8) (0.7) 173.8 10.0 (26.3) Operating Income Net Non-operating Income Income Tax Expense (2,070) (1.9) Net Income 7,819 7.4 EPS (NTD) EPADS (USD) 0.62 0.107 (756) 10,610 0.84 0.145 Notes: 1. Information enclosed is UMC unconsolidated financial data. 2. An exchange rate of 29.03 was used to translate NTD to USD. 3. 12,625 million and 12,561 million shares were used in EPS calculations for 2012 and 2011, respectively. P. 5 Investment Income Unit: NT M Investment loss accounted for under the equity method Impairment Loss 4Q12 3Q12 (1,140) (1,911) - Gain(Loss) on valuation of financial assets Cash dividends (17) - Total (1,157) P. 6 (3) 39 807 (1,068) Balance Sheet Highlight – Dec. 31, 2012 Unit: NT M Cash and Cash Equivalents 31,757 Funds and Investments 47,919 Fixed Assets 145,136 Total Assets 264,220 Current Liabilities 29,255 Long-term Debts 28,894 Shareholders' Equity 202,450 Depreciation Expense (YTD) P. 7 32,665 Average Selling Price Trend: 8” Wafer Equivalent Unit: USD 1,500 1,000 500 0 4Q11 1Q12 P. 8 2Q12 3Q12 4Q12 Sales Breakdown by Geography 4Q12 3Q12 Europe Japan 9% 1% Europe Japan 9% 1% Asia 45% Asia 40% North America 45% P. 9 North America 50% Sales Breakdown by Geography 2012 2011 Europe Japan 8% 1% Europe Japan 11% 1% Asia 45% Asia 39% North America 46% P. 10 North America 49% Sales Breakdown by Customer 4Q12 3Q12 IDM 17% IDM 10% Fabless 90% P. 11 Fabless 83% Sales Breakdown by Customer 2012 2011 IDM 16% IDM 25% Fabless 84% P. 12 Fabless 75% Sales Breakdown by Application 3Q12 4Q12 Other 3% Other 3% Computer 18% Communication 50% Computer 21% Communication 49% Consumer 29% P. 13 Consumer 27% Sales Breakdown by Application 2012 2011 Other 4% Other 3% Computer 19% Communication 50% Computer 15% Communication 55% Consumer 27% P. 14 Consumer 27% Sales Breakdown by Technology 4Q12 ≥ 0.25/0.35um 10% 0.5um 40nm 3% 15% 3Q12 ≤ 65nm 55% 65nm 40% 0.15/0.18um 10% ≥ 0.25/0.35um 11% 0.5um 40nm 4% 13% 65nm 41% 0.15/0.18um 9% 0.11/0.13um 15% 0.11/0.13um 15% 90nm 7% 90nm 7% P. 15 ≤ 65nm 54% Sales Breakdown by Technology 2012 ≥ 0.5um 40nm 4% 11% 0.25/0.35um 10% 2011 ≤ 65nm 52% 65nm 41% 0.15/0.18um 10% ≥ 0.5um 40nm 5% 6% 0.25/0.35um 9% 65nm 33% 0.15/0.18um 12% 0.11/0.13um 24% 0.11/0.13um 17% 90nm 7% 90nm 11% P. 16 ≤ 65nm 39% Quarterly Capacity unit: in thousands FAB Fab6A Fab8A Fab8C Fab8D Fab8E Fab8F Fab8S Fab8N Fab12A Fab12i Total (6") (8") (8") (8") (8") (8") (8") 2Q12 123 204 90 93 113 98 87 3Q12 123 204 90 93 113 98 87 4Q12 113 204 90 93 113 98 87 141 134 1,372 143 134 1,376 156 134 1,401 (8") (12") (12") (8" eq.) Note：Fab8N's capacity will be included starting February, 2013. P. 17 1Q13E 111 201 86 94 103 96 83 83 158 132 1,461 2013 Foundry Capital Expenditure Plan 8" 12" Total 6% 94% 1.5 billion USD P. 18 For more information regarding UMC www.umc.com For all inquiries, suggestions, and comments [email protected] P. 19