Slide 1: 2024 Fourth Quarter Earnings Conference
Stock Code: 6643 TT 2024 Fourth Quarter Earnings Conference March 19th, 2025 1
Slide 2: Agenda
Agenda • Welcome Silvia Su, Spokesperson • 4Q24 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: 4Q24 Financial Results
4Q24 Financial Results M31 Technology Corporation. Proprietary and Confidential 4
Slide 5: 4Q24 Statements of Comprehensive Income
4Q24 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 4Q24 4Q24 (In NT$ thousands unless 4Q24 3Q24 4Q23 over over otherwise noted) 3Q24 4Q23 Net Revenue (US$ thousands) 10,093 11,858 16,726 -14.9% -39.7% Net Revenue 327,577 381,878 519,089 -14.2% -36.9% Gross
Slide 6: 2024 Statements of Comprehensive Income
2024 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 2024 (In NT$ thousands unless otherwise 2024 2023 over noted) 2023 Net Revenue (US$ thousands) 46,104 52,399 -12.0% Net Revenue 1,480,903 1,612,337 -8.2% Gross Margin 100% 100% Operating Expenses (1,427,63
Slide 7: Balance Sheets
4Q24 Balance Sheets Selected Items from Balance Sheets 4Q24 3Q24 4Q23 (In NT$ thousands) Amount % Amount % Amount % Cash & Marketable Securities 682,446 32% 506,626 24% 1,147,938 48% Accounts Receivable 262,787 12% 381,166 18% 373,804 16% Other current assets 259,526 12% 281,968 13% 132,573 5% Net P
Slide 8: Cash Flow
4Q24 Cash Flow (In NT$ thousands) 4Q24 3Q24 4Q23 12 Months Ended 9 Months Ended 12 Months Ended Beginning Balance 849,121 849,121 546,776 Cash generated from operating activities 46,638 (137,034) 241,341 Cash used in investing activities (93,018) (78,600) 332,001 Cash generated from/(used in) financ
Slide 9: Operating Result
Operating Result M31 Technology Corporation. Proprietary and Confidential
Slide 10: Revenue by Income Source
4Q24 Revenue by Income Source • Our royalty ratio reached its peak in 3Q24, accounting for 22.3%, partly due to the underperformance of license fees in the third quarter. In 4Q24, the royalty ratio returned to 14.5%. • In general, our License Fees are higher than Royalties, with a ratio of approxima
Slide 11: Revenue by Region
4Q24 Revenue by Region • In 4Q24, the main revenue contribution came from China, reaching 53.6%, which was also the highest level in five consecutive quarters. Revenue growth from other regions was significant, reaching 13.7%, primarily driven by customers from Korea and Europe. • In 2024, revenue d
Slide 12: Revenue by Customer Type
4Q24 Revenue by Customer Type • Since 4Q23, the proportion of fabless has grown significantly, increasing from 36.9% to 86%. • Except for 2023, when the proportions of Fabless and Foundry were roughly equal, the Fabless share in both 2022 and 2024 exceeded that of Foundry, at approximately a 7:3 rat
Slide 13: Fabless License Fee by Nodes
4Q24 Fabless License Fee by Nodes • Since 3Q24, the proportion of fabless license fee for process nodes below 16nm has exceeded 50%. • Since 2022, the fabless license fee ratio for 2-8nm has shown an upward trend, increasing from 10.7% to 25.6%. • The 22/28nm nodes have consistently been our primary
Slide 14: Foundry License Fee by Nodes
4Q24 Foundry License Fee by Nodes • Since 2022, the foundry license fee ratio for 90-180nm has significantly declined, dropping from 47.4% to 9.6%. • Since 2023, the foundry license fee for 12-16nm has taken effect, with the proportion reaching nearly 50%. • Revenue from foundry plummeted in 4Q24, w
Slide 15: M31 Customers & Partners
M31 Customers & Partners Region Fabless Foundry Total China 238 8 246 USA 73 2 75 Taiwan 71 4 75 Korea 11 2 13 Japan 8 0 8 Eurasia 22 2 24 Others 2 0 2 ＊Our IP solutions are adopted by leading foundries and fabless worldwide. Total 425 18 443 ＊Customer numbers by region and business type till 4Q24.
Slide 16: M31 Licenses
M31 Licenses 2000 No. of Cumulative Licenses of the Previous Yeas 1500 218 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 17: Recap of 4Q24 Operating Result (1/2)
Recap of 4Q24 Operating Result (1/2) 4Q24 financial results were heavily affected by underperformed revenue and increased employee compensation, resulting in an EPS of NT$ -1.28. Summing up 2024, adjustments in operational strategy led to weaker revenue management, resulting in our first-ever revenu
Slide 18: Recap of 4Q24 Operating Result (2/2)
Recap of 4Q24 Operating Result (2/2) In 2024, licensing revenue from fabless companies grew (YoY +31%); however, revenue from foundries significantly declined (YoY -56%). Fabless: ➢ IP demand for the most advanced process nodes at 8nm and below remains robust among fabless customers. ➢ In 4Q24, our
Slide 19: M31 Future Prospects
M31 Future Prospects a" (ZB M31 M31 Technology.Corporation. Proprietary and Confidential 19 = \ pee \ ‘| Z| ] —— if |
Slide 20: Thank You
Your IP Partner Your Virtual Team Thank You 20