Slide 1: 2024 Third Quarter Investor Conference
Etron Technology, Inc. Since 1991 2024 Third Quarter Investor Conference Nov.8 , 2024 1
Slide 2: Disclaimer
Disclaimer The forward-looking statements contained in the presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements. Etron makes no representation or warranty as to the accuracy or completenes
Slide 3: Business Overview
Technology Leader - |C+Semi+HI+Al Business Overview ©2024 Etron Dedicated Contribution to Semiconductor, Microsystem, Civilization & Environment All Rights Reserved
Slide 4: Etron Technology, Inc.
Fabless IC Design House since 1991 Etron Technology, Inc. IPO in Taipei Exchange, 1998 (TPEx: 5351.TW) Patents：USA 315；Total 871 (As of October 2024) Number of Employees：425 (As of October 2024) Headquarters：Taiwan Hsinchu Science Park Global Location： - USA：California Bay Area, Boston -
Slide 5: Group Companies Working with Customers in Diverse Applications
[Exon] Group Companies Working with Customers in ate Applications Ed ae High Perf Computing ~VR/AR/XR/6dMVerse Brain: Memories/DRAM+Al S we A a Smart Memory Yall d /\@) ¥ E v y Mobile/5G/10%, ’ Privacy Nerves: USB4.0; SERDES EV er NS Differential Privacy Computing — @ = vt x yi 7 Sd 4) as ets Rees M
Slide 6: MemorAiLink
MemorAiLink One-stop Development Platform Revolutionizing the Way SoC Companies Approach Memory Solutions Comprehensive Streamlined Memory Seamless Memory Solutions /Package System Integration
Slide 7: 33 Years of Innovation: Etron's Value-Driven
33 Years of Innovation: Etron’s Value-Driven Specialized DRAM Designs for Emerging AI Systems Known-Good-Die Memory (KGDM) Wide-IO DRAM Collaboration Pioneered the world’s Known-Good-Die Launch of MemorAiLink Memory (KGDM) with TSMC for Intel’s 3D Collaborated with Intel on Launched MemorAiLink, an
Slide 8: DRAM Revenue (By Applications): 2020 ~ 2024Q3
DRAM Revenue (By Applications)：2020 ~ 2024Q3 Continuously focusing on networking and automotive/industrial applications, these two major applications contributed over 50% of total company revenue over the past three years as of Q3 2024 2020 Revenue 2022 Revenue 2024 Revenue (As of Q3) Automotive &
Slide 9: DRAM Revenue (By Regions): As of Q3 2024
DRAM Revenue (By Regions)：As of Q3 2024 73% of overall business comes from US/EU/JP/KR/TW, slightly higher than in 2023 For discrete business, 94% of revenue comes from US/EU/JP/KR/TW 2024 Revenue (As of Q3) 2024 Revenue in Discrete (As of Q3) JP&KR 13% TW 22% KGD 76% TW CN JP & KR 10% 6% 13% US&E
Slide 10: Etron: Key Memory Supplier in Telecom Broadband Networking
Etron：Key Memory Supplier in Telecom Broadband Networking Networking accounts for nearly a quarter of Etron's total revenue Providing a comprehensive range of DRAM and SPI NAND Flash solutions to meet customer needs from Wi-Fi 5 and Wi-Fi 6/6E to Wi-Fi 7 WiFi 5 WiFi 6/6E WiFi 7 Etron's 8Gb DDR4
Slide 11: A Focus on Electric Vehicles and Autonomous Driving
A Focus on Electric Vehicles and Autonomous Driving Etron's automotive DRAM products have been widely adopted in various automotive applications, including Infotainment, Navigator, CD/DVD, HDD, DAB, HUD, Dash Cam, Display, Surrounding Camera, ADAS, etc. Starting from supporting Japan customers,
Slide 12: Continuously Expanding Product Portfolio to Provide Customers with a Diverse and Enriched Selection
Continuously Expanding Product Portfolio to Provide Customers with a Diverse and Enriched Selection Since launching its first SDR product in 1998, Etron has continuously expanded its memory product line to encompass SDR, DDR, DDR2, DDR3, DDR4, LPDDR2, LPDDR4/4X, RPC, SPI NAND, and e.MMC, along wit
Slide 13: Multi-Streaming Processor- EJ523D
Multi-Streaming Processor- EJ523D Integrated Full-Function SCALER：Up-Scaling/Down-Scaling； PIP ； POP；OSD；MIRROR Support Audio re-sampling, Mixer, and 5.1 channel support Support HEVC 10bit HDR Encoding Support USB capture NV12 4K/30、2K/120 ；HEVC 4K/60 、2K/240；H.264；MJPG For live game strea
Slide 14: USB E-MARKER IC- EJ903
USB E-MARKER IC- EJ903 According to an analysis report from market research firm - Omdia, the annual shipment volume of devices featuring USB-C port designs continues to grow, with handheld devices having particularly high numbers. Overall, the estimated shipment volume is expected to exceed 6 bil
Slide 15: From "Eye" to "Brain"
From “Eye” to “Brain” Work our way up from Vision to compute with AI through Silicon centric technology and Application specific Designs Under the wave of AI, combining special memory, generative AI, multi-dimensional sensing, and fusion technology to meet "Sense & React!" 15
Slide 16: Sensing Sub-Systems
hort Range Application Requirements: (Hoh Frame Rata + Acarey Depth of VGA IR cameras at 30 FPS ‘Active IR projection performance {om 10CM up to 1.5 Meters shor ange + Robust surtace resistance Stereo Vision Sub-System S&S + et G62 Gap Application Requirements High Frame-rate + Accuracy Depth of VGA
Slide 17: Sensing & From Perception to Understanding
SEBIELIX g ader - 1C+Semi+HI+Al | f : 4 —_ a ra / a a Sensing & From Perception to Understanding Past Now 2025 Onward eYs3D Signal Processor(eSP) eYs3D Computer Vision(eCV) eYs3D Neural Processor(eNP) USB 2.0/3.0 Bridge with MIPI out Cortex-M / Cortex-A CPU Cortex-M / Cortex-A CPU VGA up to 3M Pixel
Slide 18: Next-Gen Human Machine Interface
Next-Gen Human Machine Interface Future intelligent human machine interactions Combining 3D sensing, computer vision, large language models (LLM), and convolutional neural network (CNN), we utilize sensing technology to recognize the environment. CNN is employed to assess the scene and environmental
Slide 19: Privacy-Enhancing Products Received CES Innovation Awards
Privacy-Enhencing Products Received CES Innovation Awards 19
Slide 20: Easy to Add-on
Easy to Add-on Free consultation and assessment for application requirement. Design-&-Technology Leader - 1C+Semi+HI+Al Cloud/Edge Computing Through cloud and edge computing, efficiency is greatly improved compared with the general traditional method. image data processed will be Safe and Compliant
Slide 21: Fields Entered
Fields Entered Smart Access Control 、 Smart Digital Retail、Smart Vehicle System • DeCloak has successfully integrated surveillance systems for enterprises and retail shops, ensuring facial data privacy is fully protected while the targeted person can still be accurately identified through the lens.
Slide 22: Financial Summary
Technology Leader - |C+Semi+HI+Al Financial Summary ©2024 Etron Dedicated Contribution to Semiconductor, Microsystem, Civilization & Environment All Rights Reserved
Slide 23: Consolidated Operating Revenue
Consolidated Operating Revenue NT$M 7,000 6,146 6,000 5,000 4,685 4,000 3,551 3,000 2,662 2,794 2,000 1,000 0 2020 2021 2022 2023 2024 Jan~Sep 23
Slide 24: Consolidated Gross profit
Consolidated Gross profit NT$M 3,000 Margin 16% 35% 26% (3%) 13% 2,500 2,122 2,000 1,500 1,200 1,000 565 500 376 (83) 0 2020 2021 2022 2023 2024 Jan~Sep -500 24
Slide 25: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Expressed in millions of New Taiwan dollars 3Q24 2Q24 3Q23 Operating revenue 929 1,018 661 Gross profit (loss) from operations 166 162 (56) Gross margin from operations 18% 16% (9%) Operating expenses (304) (297) (286) Operating loss (121) (118) (326)
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Expressed in millions of Sep.30, 24 Dec.31, 23 Sep.30, 23 New Taiwan dollars Amount % Amount % Amount % Cash and cash equivalents 1,253 17 707 10 620 8 Accounts receivable 917 13 646 10 767 11 Inventories 2,320 33 2,782 41 3,048 42 Total current assets 4,579 64 4,246 62 4,
Slide 27: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Expressed in millions of New Taiwan dollars 2024 Jan~Sep 2023 2022 Cash and cash equivalents at beginning of year 707 842 1,277 Cash flows from operating activities 119 (67) (1,306) Cash flows from investing activities (169) 95 (264) Cash flows from financing ac
Slide 28: Prospects
Technology Leader - |C+Semi+HI+Al Prospects 2024 Etron Dedicated Contribution to Semiconductor, Microsystem, Civilization & Environment All Rights Reserved
Slide 29: Global DRAM Market Outlook
Global DRAM Market Outlook Driven by the growth of high-end products such as HBM, DDR5, and LPDDR5, the global DRAM market is expected to reach nearly US$90 billion in revenue in 2024. Moreover, overall revenue is forecast to grow by more than 50% in 2025, reaching US$134.7 billion YoY % -15.6% -3
Slide 30: Business Outlook
Business Outlook Q4 2024 Outlook and Opportunities ‒ While high-end products like HBM and DDR5 continue to drive DRAM market growth this year, demand for specialty DRAM products remains relatively flat ‒ In the long run, the three major DRAM manufacturers have been focusing on HBM and DDR5 product
Slide 31: SEBIELIR Design-&-Technology-Leader - 1C+Semi+HI+Al
SEBIELIR Design-&-Technology-Leader - 1C+Semi+HI+Al 2024 Etron Dedicated Contribution to Semiconductor, Microsystem, Civilization & Environment 7 All Rights Reserved
Slide 32: www.etron.com
BERIFLIR Design-&-Technology Leader - 1C+Semi+HI+Al , * Bh Oi, Through Semiconductor IC, & S| = 06 [T ® We Connect People to ra ©2024 Etron All Rights Reserved