Slide 1: Q3 2019 Investor Conference
Q3 2019 Investor Conference Nov 13th, 2019 Embedded wisely, Embedded widely 1 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 4 Embedded wisely, Embedded widely
Slide 5: Review of Operations
Review of Operations 5 Embedded wisely, Embedded widely
Slide 6: Q3 2019 Financial Results
Q3 2019 Financial Results The EPS of Q3 2019 was 1.62 NTD, ROE was 29.1%. (thousands of NT dollars) Change Change Q3 2019 Q2 2019 Q3 2018 (QoQ) (YoY) Revenue 336,587 316,541 393,225 6.3% -14.4% Gross Margin 100% 100% 100% - - Operating Expenses 197,399 187,889 204,342 5.1% -3.4% Operating Income 139
Slide 7: Q1-Q3 2019 Financial Results
Q1-Q3 2019 Financial Results The EPS of Q1-Q3 2019 was 5.56 NTD, ROE was 33.3%. (thousands of NT dollars) Q1-Q3 2019 Q1-Q3 2018 Change (YoY) Revenue 1,048,189 1,069,764 -2.0% Gross Margin 100% 100% - Operating Expenses 586,376 581,249 0.9% Operating Income 461,813 488,515 -5.5% Operating Margin 44.1
Slide 8: Revenue in Different Stream
Revenue in Different Stream Revenue up 6.3% QoQ but down -14.4% YoY. Comparison to 19Q2 Revenue Breakdown $250,000 Royalty 19Q2 19Q3 $200,000 69.2% $150,000 $100,000 $50,000 $0 Licensing Licensing Royalty 30.8% Revenue Q1-Q3 Q1-Q3 NT$ Thousands Q3 2019 Q2 2019 Q3 2018 QoQ YoY YoY 2019 2018 Licensing
Slide 9: Q3 Revenue by Technology
Q3 Revenue by Technology The total revenue of NeoFuse has a growth of 28.5% YoY. The licensing revenue of NeoFuse decreased 26.9% QoQ but increased 25.8% YoY. Its royalty revenue decreased 2.2% QoQ but increased 31.4% YoY. The royalty revenue of NeoBit increased 16.6% QoQ but decreased 21.6% YoY
Slide 10: Royalty Revenue by Wafer Size
Royalty Revenue by Wafer Size Q3 Royalty Breakdown The royalty of 12-inch wafer increased 49.5% 8-Inch 66.9% QoQ, but decreased 34.2% YoY. The increased in QoQ was due to semiannual payments by two foundries reported in January and July. 12-inch The decreased in YoY was due to inventory 33.1%
Slide 11: Future Outlook
Future Outlook 11 Embedded wisely, Embedded widely
Slide 12: eMemory Embedded Everywhere
eMemory Embedded Everywhere eMemory’s IP seeks to penetrate across all the applications. Product Applications: eMemory’s IP are already applied into different scenarios, Core Tech which includes PMIC, LCD driver, Sensors, RFID, OLED Driver, Connectivity IC, DTV, STB, SSD Controller, Bluetooth, TDD
Slide 13: Our Perspectives
Our Perspectives eMemory continue to create value for the industry and our shareholders. New Licensing & Application & Royalty Technology Development Expect revenue to grow on a sequential basis and NeoPUF has a distinctive progress in the most return to accelerated growth in 2020. advanced proc
Slide 14: Q&A
Q&A 14 Embedded wisely, Embedded widely
Slide 15: Appendix
Appendix 15 Embedded wisely, Embedded widely
Slide 16: Company Overview
Company Overview eMemory is the global leader of embedded non-volatile memory IP Revenue Trend License/ Design Revenue Royalty Revenue (Unit: NT$ 1,000) 1,600,000 1,400,000 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 2017 2018 Fou
Slide 17: Worldwide Customers
Worldwide Customers Our IP solutions are adopted by leading foundries, IDMs and fabless worldwide North Taiwan China Korea Japan Europe Others America Foundry 4 7 4 4 1 2 1 IDM 1 0 0 7 1 1 0 Fabless 282 688 83 59 278 137 60 17 Embedded wisely, Embedded widely
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 2-3 years 2-3 years License Fee Design License Fee Royalty Foundrie
Slide 19: Quarterly Revenue Pattern
Quarterly Revenue Pattern eMemory’s revenue are mostly received in the first month of the quarter 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
Slide 20: Technology Licenses
Technology Licenses Cumulative technology licenses Number of Licenses Year 2016 2017 2018 2019 Q1-Q3 License 43 20 26 11 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
Slide 21: New Technology under Development
New Technology under Development Products in different process nodes • New technologies being developed for 100 platforms by Q3 2019. • 4 licensing contracts were signed, 2 for NeoBit and 2 for NeoFuse. 0.11~ 0.15~ 5/6nm 7/10nm 12/16nm 28nm 40nm 55/65nm 80/90nm >0.25um 0.13um 0.18um NeoBit - - - - -
Slide 22: Technology Development
Technology Development Developments by process node 12" Fabs Production Development IP Type Process Type 5/6nm 0 1 7/10nm 1 2 OTP, PUF FF, FF+ 12/16nm 3 3 OTP FF, FF+ 28nm 18 16 OTP, PUF LP/ULP/ULL, HPC/HPC+, HV-OLED, DRAM, SOI 40nm 11 7 OTP, PUF, MTP LP/ULP, E-Flash, HV-DDI/OLED LP/ULP, E-Flash, HV
Slide 23: PUF-based Hardware Security IP
PUF-based Hardware Security IP NeoPUF provide the foundation for developing eMemory’s security function IPs. Key Generations True Random Number Generator Each device can generate its NeoPUF based true random number own key from embedded generator(tRNG) with the best PUFkeygen NeoPUF. PUFtrng randomn
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