Slide 1: Q1 2020 Investor Conference
Q1 2020 Investor Conference May 13th, 2020 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 Q&A 4 Appendix Embedded Wisely, Embedded Widely 4
Slide 5: Review of Operations
Review of Operations Embedded Wisely, Embedded Widely 5
Slide 6: Q1 2020 Financial Results
Q1 2020 Financial Results The EPS of Q1 2020 was 2.38 NTD, ROE was 39.5%. (thousands of NT dollars) Change Change Q1 2020 Q4 2019 Q1 2019 (QoQ) (YoY) Revenue 415,436 361,896 395,061 14.8% 5.2% Gross Margin 100% 100% 100% - - Operating Expenses 221,463 202,386 201,088 9.4% 10.1% Operating Income 193,
Slide 7: Revenue in Different Stream
Revenue in Different Stream Revenue up 14.8% QoQ and 5.2% YoY. Revenue Breakdown Comparison to 19Q4 $400,000 19Q4 20Q1 Royalty 74.4% $200,000 $0 Licensing Licensing Royalty 25.6% Revenue NT$ Thousands Q1 2020 Q4 2019 Q1 2019 QoQ YoY Licensing 106,446 115,944 105,824 -8.2% 0.6% Royalty 308,990 245,95
Slide 8: Q1 Revenue by Technology
Q1 Revenue by Technology The royalty of NeoFuse has a growth of 187.8% YoY. The licensing revenue of NeoFuse increased 13.5% QoQ and 15.0% YoY. Its royalty revenue increased 40.8% QoQ and 187.8% YoY. The royalty revenue of NeoBit increased 19.9% QoQ but decreased 17.7% YoY. Its licensing revenue
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size 12-inch wafer increased 50.4% QoQ and 13.7% YoY. Q1 Royalty Breakdown 12-inch 35.9% 12-inch wafers contributed 35.9% of royalty, increased 50.4% sequentially and 13.7% YoY. 8-inch wafers contributed 64.1% of royalty, increased 15.0% sequentially and 3.3% YoY. 8-inch
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: eMemory Embedded Everywhere: Security
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 drive
Slide 12: Our Perspectives
Our Perspectives eMemory continue to create value for the industry and our shareholders. New Licensing & Application & Royalty Technology Development Licensing: For new applications: • NeoFuse and NeoPUF will continue to grow due to • PUF-based security IPs adopted by customers in AI, IoT, incre
Slide 13: Q&A
Q&A Embedded Wisely, Embedded Widely 13
Slide 14: Appendix
Appendix Embedded Wisely, Embedded Widely 14
Slide 15: Company Overview
Company Overview eMemory is the global leader of embedded non-volatile memory IP. Revenue Trend (Unit: NT$ 1,000) 1,600,000 Licensing & 1,400,000 Royalty License/Design Revenue Royalty 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 16: Revenue Trend by Product Line
Revenue Trend by Product Line NeoFuse will continue to drive revenue in the future as it is adopted by more advanced nodes. Revenue Trend (Unit: NT$ 1,000) 450,000 千 415,436 400,000 350,000 300,000 250,000 200,000 172,897 150,000 100,000 50,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20
Slide 17: 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. Note:
Slide 18: 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 1 291 Development China 8 0 744 Korea 4 0 84 Japan 4 7 61 North 1 1 296 America Europe 2 1 142 Others 1 0 56 Embedd
Slide 19: 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 2-3 years 2-3 years License Fee Design License Fee Royalty Foundri
Slide 20: Technology Licenses
Technology Licenses Cumulative technology licenses. Number of Licenses Year 2016 2017 2018 2019 Q1 2020 License 43 20 26 18 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, and t
Slide 21: New Technology Under Development
New Technology Under Development Products in different process nodes. New technologies are being developed for 89 platforms by Q1 2020. 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 2 9 5 1 Neo
Slide 22: Technology Development
Technology Development Developments by process nodes. 12" Fabs Production Development IP Type Process Type 5/6nm 0 3 OTP, PUF FF 7/10nm 2 1 OTP, PUF FF, FF+ 12/16nm 3 3 OTP FF, FF+ 22/28nm 25 15 OTP, PUF LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI 40nm 14 5 OTP, PUF, MTP LP/ULP, E-Flash, HV-DDI/OLED 55
Slide 23: Security Function IP Platform
Security Function IP Platform eMemory’s security IP blocks enable a wide range of different security functions. eMemory Security Algorithms Security Function IP Solution NeoPUF AES-ECB SHA-256 ECDH PUFrt PUFflash PUFiot OTP AES-CBC MAC ECDSA PUFuid PUFkeygen PUFse AES-CTR HMAC SM3 PUFtrng PUFauth ……
Slide 24: PUF-based Hardware Security IP
PUF-based Hardware Security IP NeoPUF provide the foundation for developing eMemory’s security function IPs. Standard Solution: Premium Solution: High-End Solution: Secure Embedded: PUFrt PUFiot PUFse PUFflash Feature Highlights: Feature Highlights: Feature Highlights: Feature Highlights: Fast & l
Slide 25: Root of Trust
Root of Trust Root of Trust guarantees a secure system operation. Root of Trust (RoT) is a SOURCE that can always be trusted within a cryptographic system. Cryptographic Security is dependent on KEYS to encrypt and decrypt data and perform functions, such as digital signatures. Always Trusted Ke
Slide 26: 5G – A Connected World
5G – A Connected World 5G facilitates multi-services in diverse application scenarios. uRLLC (ultra Reliable & Low Latency Communications) mMTC (massive Machine Type Communications) Abbreviation: 3GPP: 3rd Generation Partnership Project eMBB (enhanced Mobile Broadband) UE: User Equipment UE Auth
Slide 27: PUFsecurity Application in 5G
PUFsecurity Application in 5G PUFsecurity enables secure authentication & data protection between UE & network. UE Authentication to 5G Without PUFsecurity With PUFsecurity PUFrt PUFuid Case I Case II Case III - Root key Root Key (from Telecom Operator) Root Key (from manufacturer) - Unique ID PUFui
Slide 28: Authentication in 5G
Authentication in 5G Unique IDs play a critical role in 5G authentication. User Equipment (A) Service Network (B) (e.g. cell phones, IoTs) in secure environment UID Step 1 1. UID of A is registered in B. UID UID Registrations 2. B issues its Public Key br, br br b, br generated from Private Key b, t
Slide 29: Authentication in 5G – cont.
Authentication in 5G – cont. Unique IDs play a critical role in 5G authentication. User Equipment (A) Service Network (B) (e.g. cell phones, IoTs) Step 3 1. B uses the Private Key b and UID UID Authentication Public Key ar to generate Shared br b, br Key bar (bar=abr). a, ar ar 2. B uses Shared Key
Slide 30: Embedded wisely, Embedded widely
Embedded wisely, Embedded widely Embedded Wisely, Embedded Widely 30