Slide 1: Q3 2022 Investor Conference
Q3 2022 Investor Conference November 9th, 2022 Embedded Wisely, Embedded Widely 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 EmbeddedWisely, Wisely,Embedded EmbeddedWidely Widely 4
Slide 5: Review of Operations
Review of Operations Embedded Wisely, Embedded Widely 5
Slide 6: Q3 2022 Financial Results
Q3 2022 Financial Results (thousands of NT dollars) Change Change Change Q3 2022 Q2 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 (QoQ) (YoY) (YoY) Revenue 790,608 796,292 -0.7% 594,277 33.0% 2,314,007 1,732,426 33.6% Gross Margin 100% 100% - 100% - 100% 100% - Operating Expenses 345,160 336,197 2.7% 277,611 2
Slide 7: Revenue across Different Streams
Revenue across Different Streams 22Q3 in comparison to 22Q2 Revenue Breakdown $1,000,000 22Q2 22Q3 Royalty 81.7% $500,000 $0 Licensing Licensing Royalty 18.3% Revenue NT$ Thousands Q3 2022 Q2 2022 Change (QoQ) Q3 2021 Change (YoY) Q1-Q3 2022 Q1-Q3 2021 Change (YoY) Licensing 144,631 200,729 -27.9% 1
Slide 8: Revenue by Technology
Revenue by Technology • NeoFuse licensing down 28.6% QoQ and 28.1% YoY because many NeoFuse customers adopted PUF-based solutions, such as Root of Trust, to upgrade their security functions. Since the royalties for PUF-based solutions consist of both PUF-based royalties and existing NeoFuse royaltie
Slide 9: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q3 Royalty Breakdown • 8-inch wafers contributed 46.7% of royalty, down 0.8% 12-inch sequentially but up 42.3% yearly. 53.3% • 12-inch wafers contributed 53.3% of royalty, up 18.1% QoQ and 77.9% YoY. 8-inch 46.7% Q3 2022 Q1-Q3 2022 Wafer Size % of Q3 Change (QoQ) Change
Slide 10: Future Outlook
Future Outlook Embedded Wisely, Embedded Widely 10
Slide 11: Future Outlook
Future Outlook Licensing & Royalty: New IP Technology & Business Development: Decline in licensing this year was due to NeoFlash technology platforms are waiving technology license fees but developed in several foundries, targeting increasing production royalties for several embedded flash marke
Slide 12: Q&A
Q&A Embedded Wisely, Embedded Widely 12
Slide 13: Appendix
Appendix Embedded Wisely, Embedded Widely 13
Slide 14: Company Overview
Company Overview eMemory is the global leader of embedded non-volatile memory IP Revenue Trend (Unit: NT$ 1,000) 2,500,000 Royalty License/Design Revenue 2,000,000 1,500,000 1,000,000 500,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Founded In 2000 105
Slide 15: Quarterly Revenue Pattern
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. (Unit: NT$ 1,000) 2018 2019 2020 2021 2022
Slide 16: Quarterly Number of New Tape-outs
Quarterly Number of New Tape-outs 2018 2019 2020 2021 2022 (Unit: IP Numbers) 200 189 180 158 160 148 147 150 138 149 134 134 140 120 113 109 109 103 99 97 107 100 91 90 87 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Embedded Wisely, Embedded Widely 16
Slide 17: Worldwide Customers
Worldwide Customers Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide Country Foundry IDM Fabless Taiwan 4 1 316 China 9 0 1030 Korea 4 0 94 Japan 4 7 75 North 1 1 332 America Europe 2 1 204 Others 1 0 115 Embedded Wisely, Embedded Widely 17
Slide 18: 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 1-4 years 1-4 years License Fee Design License Fee Royalty Foundr
Slide 19: Technology Licenses
Technology Licenses Number of Licenses Year 2016 2017 2018 2019 2020 2021 2022 Q1-Q3 License 43 20 26 18 28 32 23 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 there are no
Slide 20: New Technology Under Development
New Technology Under Development New technologies are being developed for 130 platforms by Q3 2022. 4 licensing contracts were signed. 0.11~ 0.15~ Technology 4/5nm 6/7nm 12/16nm 22/28nm 40nm 55/65nm 80/90nm >0.25um 0.13um 0.18um NeoBit - - - - - 2 1 12 13 1 NeoFuse 2 1 6 8 5 17 8 2 3 - PUF-Based
Slide 21: Technology Development
Technology Development Developments by process nodes 12" Fabs Production Development IP Type Process Type 4/5nm 0 4 OTP, PUF FF 6/7nm 4 1 OTP, PUF FF, FF+ 12/16nm 6 7 OTP, PUF FF, FF+, FFC, FFC+, LPP LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM,SOI, ReRAM, 22/28nm 43 12 OTP, PUF ,MTP MRAM, E-Flash 40nm 21
Slide 22: Embedded Wisely, Embedded Widely
Embedded Wisely, Embedded Widely For more information, please visit: eMemory Website: https://www.ememory.com.tw/ PUFsecurity Website: https://www.pufsecurity.com/ Embedded Wisely, Embedded Widely 22