Slide 1: 2024 Third Quarter Earnings Conference
Stock Code: 6643 TT 2024 Third Quarter Earnings Conference November 7th, 2024 1
Slide 2: Agenda
Agenda • Welcome Silvia Su, Spokesperson • 3Q24 Financial Results Silvia Su, Spokesperson • Outlook & Key Messages Scott Chang, CEO • Q&A Scott Chang, CEO 22
Slide 3: 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 4: 3Q24 Financial Results
3Q24 Financial Results M31 Technology Corporation. Proprietary and Confidential 4
Slide 5: Statements of Comprehensive Income
3Q24 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 3Q24 3Q24 (In NT$ thousands unless 3Q24 2Q24 3Q23 over over otherwise noted) 2Q24 3Q23 Net Revenue (US$ thousands) 11,858 13,248 13,785 -10.5% -14.0% Net Revenue 381,878 429,383 432,489 -11.1% -11.7% Gross
Slide 6: Balance Sheets
3Q24 Balance Sheets Selected Items from Balance Sheets 3Q24 2Q24 3Q23 (In NT$ thousands) Amount % Amount % Amount % Cash & Marketable Securities 506,626 24% 842,022 35% 1,047,864 46% Accounts Receivable 381,166 18% 363,123 15% 318,906 8% Other current assets 281,968 13% 283,609 11% 173,836 14% Net P
Slide 7: Cash Flow
3Q24 Cash Flow (In NT$ thousands) 3Q24 2Q24 3Q23 9 Months Ended 6 Months Ended 9 Months Ended Beginning Balance 849,121 849,121 546,776 Cash generated from operating activities (137,034) (131,347) 68,613 Cash used in investing activities (78,600) (152,847) 371,829 Cash generated from/(used in) finan
Slide 8: Operating Result
Operating Result M31 Technology Corporation. Proprietary and Confidential
Slide 9: Revenue by Income Source
3Q24 Revenue by Income Source • Starting from 4Q23, the proportion of Royalty has shown a quarterly growth trend, increasing from 8.6% to 22.3%. • In general, our License Fees are higher than Royalties, with a ratio of approximately 83:17 in the first three quarters of 2024. 100% 100% 8.6% 10.7% 16.
Slide 10: Revenue by Region
3Q24 Revenue by Region • As of the first three quarters of 2024, revenue from China still accounted for the majority, remaining about 40%. • In 3Q24, revenue from US grew by more than double compared to the previous quarter, accounting for 32.4%. 100% 3.0% 100% 8.5% 7.3% 10.5% 14.7% 18.6% 20.8% 21.5
Slide 11: Revenue by Customer Type
3Q24 Revenue by Customer Type • Except for 4Q23, quarterly revenue from fabless has consistently exceeded that from foundries, accounting for over 59%. • As of the first three quarters of 2024, the revenue ratio between fabless and foundry is approximately 63:37. 100% 100% 27.4% 33.2% 80% 37.5% 80%
Slide 12: Fabless License Fee by Nodes
3Q24 Fabless License Fee by Nodes • In 3Q24, the proportion of fabless license fee for process nodes below 16nm has exceeded 50%, reaching 59.1%. • Since 2022, the fabless license fee ratio for 2-8nm has shown an upward trend, increasing from 10.7% to 28.3%. 100% 2.5% 0.9% 2.6% 100% 2.3% 4.4% 4.2% 4
Slide 13: Foundry License Fee by Nodes
3Q24 Foundry License Fee by Nodes • Since 2022, the foundry license fee ratio for 90-180nm has significantly declined, dropping from 47.4% to 8.2%. • Since 2023, the foundry license fee for 12-16nm has taken effect, with the proportion reaching nearly 50%. 100% 1.4% 100% 5.2% 8.2% 16.0% 18.1% 23.8%
Slide 14: M31 Customers & Partners
M31 Customers & Partners Region Fabless Foundry Total China 234 7 241 USA 71 2 73 Taiwan 69 4 73 Korea 11 2 13 Japan 8 0 8 Eurasia 21 2 23 Others 2 0 2 ＊Our IP solutions are adopted by leading foundries and fabless worldwide. Total 416 17 433 ＊Customer numbers by region and business type till 3Q24.
Slide 15: M31 Licenses
M31 Licenses 2000 No. of Cumulative Licenses of the Previous Yeas 1500 176 No. of New Licenses in the Corresponding Period 214 225 1000 241 1428 194 1214 500 174 989 748 147 554 112 380 70 233 51 121 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2012 2013 2014 2015 2016 2017 201
Slide 16: Recap of 3Q24 Operating Result
Recap of 3Q24 Operating Result 3Q24 revenue totaled NT$ 381.87 million, marking an 11.1% sequential decline, primarily due to project delays at foundries and a slow recovery in non-AI sectors. Additionally, 3Q24 net profit was significantly impacted by foreign exchange losses. Licensing: ➢ Licensing
Slide 17: Recap of 3Q24 Operating Result
Recap of 3Q24 Operating Result Advanced process nodes at ≤16nm consistently contribute significant revenue, accounting for over 50% of total licenses. Fabless: ➢ IP demand for the most advanced process nodes at 8nm and below remains robust among fabless customers. ➢ Our 2nm IP has gained further rec
Slide 18: M31 Future Prospects
M31 Future Prospects a" (ZB M31 M31 Technology.Corporation. Proprietary and Confidential 18 = \ pee \ ‘| Z| ] —— if |
Slide 19: Thank You
Your IP Partner Your Virtual Team Thank You 19