Slide 1: Q1 2021 Investor Conference
Q1 2021 Investor Conference May 12th, 2021 Embedded wisely, Embedded widely
Slide 2: IPR Notice
IPR Notice All rights, titles and interests contained in this information, texts, images, figures, tables or other files herein, including, but not limited to, its ownership and the intellectual property rights, are reserved to eMemory. This information may contain privileged and confidential inform
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements, which are subject to risk factors associated with semiconductor and intellectual property business. It is believed that the expectations reflected in these statements are reasonable. But they may be affected by a variety of
Slide 4: Contents
Contents 1 Review of Operations 2 Future Outlook 3 PUF is the Key for Zero Trust Security 4 Q&A 5 Appendix Embedded Wisely, Embedded Widely 4
Slide 5: Review of Operations
Review of Operations Embedded Wisely, Embedded Widely 5
Slide 6: Q1 2021 Financial Results
Q1 2021 Financial Results The EPS of Q1 2021 was 3.93 NTD, ROE was 54.6% (thousands of NT dollars) Change Change Q1 2021 Q4 2020 Q1 2020 (QoQ) (YoY) Revenue 596,734 496,682 20.1% 415,436 43.6% Gross Margin 100% 100% - 100% - Operating Expenses 259,023 261,327 -0.9% 221,463 17.0% Operating Income 337
Slide 7: Revenue in Different Stream
Revenue in Different Stream Q1 revenue up 51.5% YoY in US dollar terms Revenue Breakdown 21Q1 in comparison to 20Q4 $500,000 20Q4 21Q1 Royalty 70.3% $0 Licensing Licensing Royalty 29.7% Revenue NT$ Thousands Q1 2021 Q4 2020 QoQ Q1 2020 YoY Licensing 176,993 154,472 14.6% 106,446 66.3% Royalty 419,74
Slide 8: Revenue by Technology
Revenue by Technology The royalty of NeoFuse has a growth of 99.4% YoY in Q1 The royalty revenue of NeoBit up 8.9% QoQ and 7.1% YoY. Its licensing revenue up 3.3% QoQ and 13.4% YoY. The licensing revenue of NeoFuse down 17.6% QoQ, but up 21.6% YoY. Its royalty revenue up 44.5% QoQ and 99.4% YoY.
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size 12-inch wafer increased 70.9% YoY in Q1 Q1 Royalty Breakdown 12-inch 8-inch wafers contributed 54.8% of royalty, up 45.2% 10.2% sequentially and 16.2% YoY. 12-inch wafers contributed 45.2% of royalty, up 42.1% QoQ and 70.9% YoY. 8-inch 54.8% Royalty Q1 2021 Wafer Si
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: eMemory Embedded Everywhere
eMemory Embedded Everywhere eMemory’s IP seeks to penetrate across all the applications Core Tech Security Product Applications: The Future in Security Chip IP: eMemory’s IP are already applied into different The rapid growth in AIoT and 5G drive the applications, which includes PMIC, LCD driver
Slide 12: Our Perspectives
Our Perspectives eMemory continue to create value for the industry and our shareholders Licensing: Licensing • Licensing revenue will grow due to continuing strong demand from & NeoFuse, PUF-based solutions, and MTP. Royalty Royalty: • 8” royalties will grow due to demand and content increases f
Slide 13: Our Perspectives
Our Perspectives eMemory continue to create value for the industry and our shareholders For New Business Development: • NeoFuse in advanced process is adopted for secure key storage. This New will be a trend for security requirement. Business & • Business activities of PUF-based security solutions
Slide 14: PUF is the Key for Zero Trust Security
PUF is the Key for Zero Trust Security Embedded Wisely, Embedded Widely 14
Slide 15: Zero Trust Security
Zero Trust Security A new security model • Never trust, always verify • Authenticated and authorized users and device only • De-perimeterization security protection • Identity-centric policy Source: NIST Embedded Wisely, Embedded Widely 15
Slide 16: Why Zero Trust Security?
Why Zero Trust Security? Security boundary is no longer easy to maintain • Borderless security strategy is essential due to: Work from home in the world of Covid-19 Remote working Deployment of Cloud-based services Embedded Wisely, Embedded Widely 16
Slide 17: PUF Will Be A Must for Zero Trust
PUF Will Be A Must for Zero Trust PUF enables inborn ID and self-generated key for security services • ID generation Risk of Attack Zero Trust ID Injection ID PUF ID 1011…0110 Storage 1011…0110 • Key generation for Authentication and Authorization Risk of Attack Zero Trust Key Key PUF Key Injection
Slide 18: PUF is Essential for Zero Trust Requirements
PUF is Essential for Zero Trust Requirements PUF is the root of trust for achieving security services Crypto Engine Unique ID Authenticity PUF Confidentiality ID & Key Integrity Data Non repudiation Embedded Wisely, Embedded Widely 18
Slide 19: Q&A
Q&A Embedded Wisely, Embedded Widely 19
Slide 20: Appendix
Appendix Embedded Wisely, Embedded Widely 20
Slide 21: Company Overview
Company Overview eMemory is the global leader of embedded non-volatile memory IP Revenue Trend (Unit: NT$ 1,000) 2,000,000 Licensing & Royalty License/Design Revenue Royalty 1,500,000 1,000,000 500,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Founded In 2000
Slide 22: Quarterly Revenue Pattern
Quarterly Revenue Pattern eMemory’s quarterly revenue pattern 1st month: Receive License Fees of the month and Royalty from most foundries on previous quarter’s wafer shipments. 2nd month: Receive License Fees of the month and Royalty from other foundries. 3rd month: License Fees Only. (Unit:
Slide 23: Worldwide Customers
Worldwide Customers Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide New Country Licensing Foundry IDM & Fabless Application & Royalty Technology Taiwan 4 1 304 Development China 8 0 827 Korea 4 0 89 Japan 4 6 68 North 1 2 303 America Europe 2 1 182 Others 1 0 73 Embedde
Slide 24: Business Model
Business Model Recurring royalty is the backbone of our business 70-75% revenue are from royalty based on wafer production More adoption = more volume shipment More advanced node wafers = higher ASP per wafer Revenue Breakdown 1-4 years 1-4 years License Fee Design License Fee Royalty Foundrie
Slide 25: Technology Licenses
Technology Licenses Cumulative technology licenses Number of Licenses Year 2016 2017 2018 2019 2020 Q1 2021 License 43 20 26 18 28 5 Note: Terms (including number of process platforms and licensing fees) for each technology license are set contractually. Payments are made according to set milestones
Slide 26: New Technology Under Development
New Technology Under Development Products in different process nodes New technologies are being developed for 105 platforms by Q1 2021. 5 licensing contracts were signed. 0.11~ 0.15~ Technology 5/6nm 7/10nm 12/16nm 22/28nm 40nm 55/65nm 80/90nm >0.25um 0.13um 0.18um NeoBit - - - - - 1 3 9 13 1 Ne
Slide 27: Technology Development
Technology Development Developments by process nodes 12" Fabs Production Development IP Type Process Type 5/6nm 0 4 OTP, PUF FF 7/10nm 2 1 OTP FF, FF+ 12/16nm 5 4 OTP FF, FF+, FFC, FFC+ 22/28nm 34 12 OTP, MTP LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI 40nm 16 5 OTP, PUF, MTP LP/ULP, E-Flash, HV-DDI/OL
Slide 28: Embedded wisely, Embedded widely
Embedded wisely, Embedded widely Embedded Wisely, Embedded Widely 28