Slide 1: 2023 Second Quarter Earnings Conference
Stock Code: 6643 TT 2023 Second Quarter Earnings Conference August 16th, 2023 1
Slide 2: Safe Harbor Notice
Safe Harbor Notice • M31’s statements of its current expectations are forward- looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. • Except as required by law, we undertake no obligation to
Slide 3: 2Q23 Financial Results
2Q23 Financial Results M31 Technology Corporation. Proprietary and Confidential 3
Slide 4: 2Q23 Statements of Comprehensive Income
2Q23 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 2Q23 2Q23 (In NT$ thousands unless 2Q23 1Q23 2Q22 over over otherwise noted) 1Q23 2Q22 Net Revenue (US$ thousands) 11,590 10,297 10,134 +12.6% +14.4% Net Revenue 347,797 312,962 299,748 +11.1% +16.0% Gross
Slide 5: 1H23 Statements of Comprehensive Income
1H23 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 1H23 (In NT$ thousands unless 1H23 1H22 over otherwise noted) 1H22 Net Revenue (US$ thousands) 21,887 18,973 +15.4% Net Revenue 660,759 547,470 +20.7% Gross Margin 100% 100% Operating Expenses (528,787) (4
Slide 6: 2Q23 Balance Sheets
2Q23 Balance Sheets Selected Items from Balance Sheets 2Q23 1Q23 2Q22 (In NT$ thousands) Amount % Amount % Amount % Cash & Marketable Securities 1,254,658 53% 1,223,550 52% 922,472 44% Accounts Receivable 198,760 8% 227,823 10% 208,802 10% Other current assets 213,941 9% 187,604 8% 175,368 8% Net PP
Slide 7: 2Q23 Cash Flow
2Q23 Cash Flow (In NT$ thousands) 2Q23 1Q23 2Q22 6 Months Ended 3 Months Ended 6 Months Ended Beginning Balance 546,776 546,776 307,421 Cash generated from operating activities 17,076 21,074 279,101 Cash used in investing activities 452,547 322,092 (112,175) Cash generated from/(used in) financing a
Slide 8: Operating Result
Operating Result M31 Technology Corporation. Proprietary and Confidential
Slide 9: Revenue by Income Source
2Q23 Revenue by Income Source 100% 100% 13.7% 12.8% 15.1% 22.8% 21.4% 20.3% 32.0% 28.6% 80% 80% 60% 60% 86.3% 87.2% 84.9% 40% 77.2% 40% 78.6% 79.7% 68.0% 71.4% 20% 20% 0% 0% 2Q22 3Q22 4Q22 1Q23 2Q23 2021 2022 1H23 License Fee Royalty License Fee Royalty 99
Slide 10: Revenue by Region
2Q23 Revenue by Region 100% 2.3% 100% 6.7% 14.1% 14.7% 13.3% 19.5% 18.8% 28.6% 24.0% 80% 80% 26.2% 16.3% 16.5% 22.1% 18.7% 26.3% 26.2% 60% 60% 26.1% 18.3% 22.3% 31.7% 18.1% 5.8% 11.8% 40% 40% 17.2% 62.3% 49.1% 48.8% 43.7% 46.6% 20% 37.9% 20% 38.0% 28.0% 0% 0% 2Q22 3Q22 4Q22 1Q23 2Q23 2021 2022 1H23
Slide 11: Revenue by Customer Type
2Q23 Revenue by Customer Type 100% 100% 13.8% 24.1% 24.9% 27.4% 33.6% 80% 40.7% 80% 47.7% 44.4% 60% 60% 86.2% 40% 40% 75.9% 75.1% 72.6% 66.4% 59.3% 52.3% 55.6% 20% 20% 0% 0% 2Q22 3Q22 4Q22 1Q23 2Q23 2021 2022 1H23 Fabless Foundry Fabless Foundry 11 11
Slide 12: Fabless License Fee by Nodes
2Q23 Fabless License Fee by Nodes 100% 100% 2.9% 2.0% 5.3% 2.6% 3.2% 2.6% 6.4% 4.1% 8.7% 10.3% 7.6% 8.6% 11.1% 6.2% 14.7% 80% 80% 25.1% 41.6% 43.5% 43.1% 51.5% 60% 60% 54.3% 46.1% 62.2% 41.9% 40% 40% 34.8% 16.6% 33.5% 36.3% 22.4% 16.7% 11.1% 20% 20% 20.9% 20.4% 12.9% 13.6% 16.5% 15.1% 10.7% 7.4% 5.6
Slide 13: Foundry License Fee by Nodes
2Q23 Foundry License Fee by Nodes 100% 100% 32.3% 80% 80% 38.1% 49.4% 47.4% 54.7% 68.7% 60% 60% 85.1% 7.4% 100.0% 41.3% 40% 10.6% 40% 18.4% 30.5% 34.8% 13.0% 15.8% 20% 20% 32.2% 26.4% 21.7% 22.1% 19.6% 15.6% 14.9% 0% 0% 2Q22 3Q22 4Q22 1Q23 2Q23 2021 2022 1H23 12~16nm 22~28nm 40~65nm 90~180nm 12~16nm
Slide 14: Recap of 2Q23 Operating Result
Recap of 2Q23 Operating Result 2Q23 royalties have reflected a lower-than-ideal level of capacity utilization rate in foundries but 1H23 royalties still keep significant YoY growth by >70%. China’s IP demand rebound is weaker than expected as continued economic recovery is still faced with insuf
Slide 15: M31 Future Prospects
M31 Future Prospects a" (ZB M31 M31 Technology.Corporation. Proprietary and Confidential 15 = \ pee \ ‘| Z| ] —— if |
Slide 16: Thank You
Your IP Partner Your Virtual Team Thank You 16