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Silicon for Mobile Information

2Q 2013Investor Presentation

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This presentation contains "forward-looking statements" within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. Suchforward-looking statements include, without limitation, statementsregarding trends in the consumer electronics and semiconductorindustries, any future growth projections or expectations in such marketsand our future results of operations, financial condition and businessprospects. Although such statements are based on our own informationand information from other sources we believe to be reliable, you shouldnot place undue reliance on them. These statements involve risks anduncertainties, and actual market trends or our actual results ofoperations, financial condition or business prospects may differmaterially from those expressed or implied in these forward lookingstatements for a variety of reasons.

Safe Harbor Statement

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• Cards & USB Flash Drives• SSD & Embedded Memory

72%

• LTE & CDMA EVDO RTx• Mobile TV

24%

• Embedded Graphics

4%

Silicon Motion at a Glance

Fabless semiconductor leader in NAND flash controllers and mobile RF ICs

– Est. 1995 in San Jose, CA; now HQ in Taiwan– NASDAQ: “SIMO” (2005 IPO)– 688 employees (2012 year‐end) & 77% engineers– Design centers in Taiwan, Korea, US & China

Mobile Storage Mobile Comms Others

2012 Revenue = $281m (+25% YoY)

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Growth Drivers

1        Dynamic NAND Flash Industry

2        Global Smartphone Ramp

5        New SSD + Embedded Solutions

3 Advanced Controller Technologies

4        OEM Focus

6        4G LTE Opportunity 

Dynamic NAND Flash Industry

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Robust Flash Supply/Demand Driving Strong Controller Growth

• +60 to 80% YoY NAND bit growth• New fab capacity• Geometry shrink• MLC & TLC architecture

• Strong demand for NAND flash• Improving affordability• Smartphones & tablets (embedded & 

card)• PCs (SSD, cache, hybrid drive & UFD)• Enterprise (SSD card, storage 

appliance & cache)

• Controller TAM rapidly increasing• All solid state storage devices need a 

controller!

Controller TAM CAGR = 31%

Source: Broker & industry analyst research, Silicon Motion analysis

0.0

0.5

1.0

1.5

2.0

2.5

2010 2011 2012 2013 2014

Enterprise & industrial SSD

PC SSD

Other consumer embedded

Smartphone & tablet embedded

Memory card + UFD

$bn

Global Smartphone Ramp

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• Our exposure: 60‐70% of revenue• All smartphones have embedded memory + high memory card bundled rate

• #1 supplier of controllers for memory cards

• 30%+ share of card market• 50%+ of sales are for bundled biz

• Supplying eMMC controllers to Samsung & SK Hynix

• Also supply: LTE RTx, EVDO RTx & mobile TV ICs

We are Highly Levered to Smartphone Growthm units

CAGR = 34% RIM + Others

iOS

Android

0

200

400

600

800

1,000

2010 2011 2012 2013 2014Source: Broker & industry analyst research, Silicon Motion analysis

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Advanced Controller Technologies

Value of Our Solutions of Increasing Importance

• NAND flash getting weaker• Weaker endurance & reliability from 

geometry shrink & TLC architecture• Controllers address these weakness• Partner & enabler to flash makers

• Advanced controller technologies• ECC engines & wear‐leveling 

algorithms mask flash weakness• Configurable ECC engine improves 

customer time‐to‐market• New generation of predictive & 

auto‐correcting ECC algorithms• Proprietary technologies

• Higher value‐added, higher blended ASPs

OEM Customer Focus

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Creating Higher Quality, Long‐Term Growth

Over 60% Growth (2012)

• Why Focus on OEMs• Source of NAND flash supply• Vendor of devices to consumers• Value‐added food‐chain partner

• Our OEM customers• NAND flash makers• Tier‐1 device makers• Specialists (e.g. SSD vendors)

• Benefits of strategy• Better business visibility• Reduced volatility• Focus on quality• Enter SSD + Embedded solutions

New SSD + Embedded Solutions

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2x TAMEnlarging Our Addressable Market with New Solutions 

• Double addressable market with eMMC

• Embedded controller technology significantly more sophisticated

• Random data (vs. sequential for cards)• Higher reliability requirement

• Primary customers: Samsung &     SK Hynix

• Our other SSD+Embeddeds:• NAND cache• PC SSD • eUFD• Industrial SATA/PATA SSD• Ferri

4G LTE Opportunity

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Samsung LTE Devices Using our RTx

Stratosphere

Galaxy Nexus

Galaxy Tab 10.1

Galaxy SIII

m Units LTE Market CAGR = 174%

Samsung’s LTE Transceiver Partner

0

100

200

300

400

500

600

2011 2012 2013 2014 2015Source: Broker & industry analyst research, Silicon Motion analysis

Core & New Growth Products

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Revenue

2011 2012 2013

Cards, UFD, etc.

LTEeMMC

SSD

New Growth Products

Core Products

Bringing On‐Line New Growth Products for Longer Term Growth

1Q 2013 Highlights

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• Revenue = $57.4m (‐19% QoQ)• Gross Margin = 41.0% (vs. 44.6% prior Qtr)• Operating Expense = $15.6m (vs. $17.8m prior Qtr)• Operating Margin = 13.7% (vs. 19.5% prior Qtr)• EPS (diluted) = $0.17 (vs. $0.36 prior Qtr)

Financial

• SSD+embedded now accounts for over 25% of total revenue and eMMC controller sales grew nearly 30% QoQ

• SSD+embedded revenue bigger than UFD and will be bigger than cards in 2Q

• Supplying eMMC controller to Samsung & SK Hynix• eMMC controllers to 8 of the top 10 non‐iOS smartphone OEMS, supporting flagships and low‐cost devices

• Began shipping next‐generation eMMC 4.5 controller, with wins for global flagship handsets and tablets in 2Q

Business

Note: Financial results are Non‐GAAP

Revenue Trends

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Last 3 Years Last 5 Quarters

Note: Non-GAAP

Gross and Operating Margin Trends

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Last 3 Years Last 5 Quarters

Note: Non-GAAP

EPS Trends

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Last 3 Years Last 5 Quarters

Note: Non-GAAP

$0.41  $0.42 

$0.54 

$0.36 

$0.17 

1Q12 2Q12 3Q12 4Q12 1Q13

‐13%+4%

+28% ‐33%

‐52%

Target Financial Model

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2013 Guidance• Revenue (ex. LTE) growth = +0 to 10% YoY• LTE revenue = $15m (minimum)• Gross margin (ex. one‐time items) = 46% to 48%• Operating expenses = $72 to 76m

All financial targets are Non‐GAAP

Long-Term Model

Above Average Growth

About 50%

Disciplined Expansion

Up to 30%

2010 2011 2012

Revenue 132.7 224.3 281.4

Gross Margin 47.0% 48.4% 47.3%

Operating Expenses 49.4 57.9 67.6

Operating Margin 9.8% 22.6% 23.3%

1Q 2013 P&L

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($m) %QoQ %YoY

Mobile Storage 45.9 52.9 43.4 -18% -5%

Mobile Communications 15.0 14.9 12.0 -20% -20%

Others 3.1 2.8 2.0 -29% -35%

Total Revenue 64.0 100% 70.6 100% 57.4 100% -19% -10%

Cost of sales 32.3 51% 39.1 55% 33.9 59% -13% 5%

Gross profit 31.7 49% 31.5 45% 23.5 41% -25% -26%

R&D 10.4 16% 12.3 17% 10.1 18% -18% -3%

SG&A 6.4 10% 5.5 8% 5.5 10% 0% -13%

Operating expense 16.8 26% 17.8 25% 15.6 27% -12% -7%

Operating profit 14.9 23% 13.7 19% 7.9 14% -43% -47%

Other income/(expense) 0.3 0% 0.3 0% 0.6 1% 100% 107%

Pre-tax earnings 15.2 24% 14.0 20% 8.4 15% -40% -44%

Tax expense/(benefit) 1.2 2% 1.6 2% 2.4 4% 51% 106%

Net income 14.0 22% 12.4 18% 6.0 10% -52% -57%

Dilute ADS (in millions) 34.2 34.5 34.5 0% 1%

Earnings per ADS (diluted) 0.41 0.36 0.17 -52% -57%

Q4 2012 Q1 2013Q1 2012

1Q 2013 Non-GAAP Reconciliation

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($m)

Non-GAAP % of Stock-Based Vendor Litigat. FX Gain GAAP % of Revenue Comp. Dispute Exp. / (Loss) Revenue

Revenue 57.4 100% 57.4 100%

Cost of sales 33.9 59% 0.1 (1.7) 32.2 56%Gross profit 23.5 41% (2) (0.1) 1.7 25.1 44%

Research & development 10.1 18% 1.5 11.6 20%Sales & marketing 2.9 5% 0.5 3.4 6%General & administrative 2.7 5% 0.4 0.1 3.1 5%Total operating expenses 15.6 27% 2.4 18.1 32%

Operating income 7.9 14% (2.5) 1.7 (0.1) 7.0 12%

Other income/(expense) 0.6 1% (0.3) 0.3 0%Income before income taxes 8.4 15% (2.5) 1.7 (0.1) (0.3) 7.3 13%

Provision for income taxes 2.4 4% 2.4 4%

Net income 6.0 10% (2.5) 1.7 (0.1) (0.3) 4.8 8%

Earnings per ADS, diluted 0.17 0.14Diluted ADS 34.5 34.1

Effective tax rate 29% 33%

Note: (1) No tax benefits/(losses) are implied for non-GAAP results (2) Gross margin is 44% if $1.4 million one-time inventory charge is excluded

Reconciliation of Preliminary Non-GAAP(1) to GAAP Income Statement(in $m except % amounts & per ADS amounts, unaudited)

Thank You!

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