Slide 1: 2024 Second Quarter Earnings Conference
Stock Code: 6643 TT 2024 Second Quarter Earnings Conference August 8th, 2024 1
Slide 2: Agenda
Agenda • Welcome Silvia Su, Spokesperson • 2Q24 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: 2Q24 Financial Results
2Q24 Financial Results M31 Technology Corporation. Proprietary and Confidential 4
Slide 5: 2Q24 Statements of Comprehensive Income
2Q24 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 2Q24 2Q24 (In NT$ thousands unless 2Q24 1Q24 2Q23 over over otherwise noted) 1Q24 2Q23 Net Revenue (US$ thousands) 13,248 10,904 11,590 +21.5% +14.3% Net Revenue 429,383 342,065 347,797 +25.5% +23.5% Gross
Slide 6: 1H24 Statements of Comprehensive Income
1H24 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 1H24 (In NT$ thousands unless 1H24 1H23 over otherwise noted) 1H23 Net Revenue (US$ thousands) 24,153 21,887 +10.4% Net Revenue 771,448 660,759 +16.8% Gross Margin 100% 100% Operating Expenses (662,005) (5
Slide 7: 2Q24 Balance Sheets
2Q24 Balance Sheets Selected Items from Balance Sheets 2Q24 1Q24 2Q23 (In NT$ thousands) Amount % Amount % Amount % Cash & Marketable Securities 842,022 35% 940,323 41% 1,254,658 53% Accounts Receivable 363,123 15% 259,900 11% 198,760 8% Other current assets 283,609 11% 276,481 12% 213,941 9% Net PP
Slide 8: Cash Flow
2Q24 Cash Flow (In NT$ thousands) 2Q24 1Q24 2Q23 6 Months Ended 3 Months Ended 6 Months Ended Beginning Balance 849,121 849,121 546,776 Cash generated from operating activities (131,347) (141,728) 17,076 Cash used in investing activities (152,847) (48,727) 452,547 Cash generated from/(used in) finan
Slide 9: Operating Result
Operating Result M31 Technology Corporation. Proprietary and Confidential
Slide 10: 2Q24 Revenue by Income Source
2Q24 Revenue by Income Source • Starting from 2022, the proportion of License Fee shows a growth trend from 78.6% to 86.1%. • Starting from 4Q23, the proportion of Royalty shows a slight growth trend each quarter. • In general, our License Fee proportion is higher than Royalty, with a ratio of appro
Slide 11: 2Q24 Revenue by Region
2Q24 Revenue by Region • As of 1H24, revenue from China still accounted for the majority, remaining above 40%. • In 1H24, the combined revenue from China, Taiwan, and USA accounted for over 90% of the total revenue. 100% 100% 10.5% 8.5% 9.4% 14.7% 18.6% 20.8% 21.5% 28.6% 80% 80% 24.5% 16.5% 35.1% 30
Slide 12: 2Q24 Revenue by Customer Type
2Q24 Revenue by Customer Type • Except for 4Q2023, revenue from fabless was slightly higher than that from foundry, accounting for over 50%. • As of 1H24, the revenue ratio between fabless and foundry is approximately 6:4. 100% 100% 27.4% 33.2% 36.6% 80% 40.7% 40.9% 80% 47.7% 49.4% 63.1% 60% 60% 40%
Slide 13: 2Q24 Fabless License Fee by Nodes
2Q24 Fabless License Fee by Nodes • The fabless license fee for 22-28nm has consistently remained above 40%. • Since 2022, the fabless license fee ratio for 2-8nm has shown an upward trend, increasing from 10.7% to 27.2%. 100% 2.6% 2.5% 0.9% 100% 2.3% 4.4% 4.2% 4.1% 4.3% 7.6% 15.3% 7.9% 8.6% 15.0% 1
Slide 14: 2Q24 Foundry License Fee by Nodes
2Q24 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 begun to take effect, reaching a ratio of up to 50%. 100% 1.4% 100% 9.6% 16.0% 18.1% 23.8% 23.0% 3
Slide 15: M31 Customers
M31 Customers Region Fabless Foundry Total China 233 7 240 USA 69 2 71 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 413 17 430 ＊Customer numbers by region and business type till 1H24. 15 15
Slide 16: M31 Licenses
M31 Licenses 2000 No. of Cumulative Licenses of the Previous Yeas 1500 125 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 2024H1 2012 2013 2014 2015 2016 2017 2
Slide 17: We Are Moving Forward
We Are Moving Forward USB IP PCIe IP MIPI IP SerDes LPDDR IP Logic Foundation IP e-NVM Foundation IP HV Foundation IP BCD Foundation IP ONFI GPIO Analog IP Integration Service (PHY+Controller) 80nm Above 65-40nm 28-22nm 16/12nm 8/7/6nm 5nm 3/2nm M31 Available M31 In Development 17 17
Slide 18: Recap of 2Q24 Operating Result
Recap of 2Q24 Operating Result ⚫ 2Q24 revenue NT$ 429.38 million, up 25.5% sequentially, boosted both OP Margin and Net Profit Margin from the previous quarter. After a NT$2.00 per share stock dividend from 2023 earnings, 2Q24 EPS was diluted to NT$2.64. ⚫ Royalties in the second quarter are beginni
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