Slide 1: 2023 Third Quarter Investor Conference
Etron Technology, Inc. Since 1991 2023 Third Quarter Investor Conference Nov 9 , 2023 1
Slide 2: Disclaimer
Disclaimer The forward-looking statements contained in the presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements. Etron makes no representation or warranty as to the accuracy or completenes
Slide 3: Business Overview
SEB Design Technology Leader Bussiness Overview ©2023 Etron Heterogeneous Integration Enabler 7 All Rights Reserved
Slide 4: Etron Technology, Inc.
Fabless IC Design House since 1991 Etron Technology, Inc. IPO in Taipei Exchange, 1998 (TPEx: 5351.TW) Patents ：USA 224；Total 803 (As of October 2023) Number of Employees ： 420 (As of October 2023) Headquarters: Taiwan Hsinchu Science Park Gobal Location : - USA : Santa Clara, CA - China
Slide 5: Group Companies Working with Customers in Applications
[eee Group Companies Working with Customers in —— Applications sll [hte { Y aN peer High Perf Computing “VR/AR/XR/6dM Verse itey Brain: Memories/DRAM+Al Ra — Smart Memory % a y oo a Mobile/SG/10%, , Privacy E/ soniert or NX Nerves: USB4.0; SERDES cE Ver “Ga | DasCloak Differential Privacy Computing
Slide 6: DRAM Revenue (By Applications)
DRAM Revenue (By Applications) Continuously focusing on automotive/industrial and networking applications. As of 2023 Q3, these two major applications account for more than 50% of the company's total revenue 2021 Revenue 2022 Revenue 2023 Q1~Q3 Revenue Automotive & Networking & Networking & Automo
Slide 7: DRAM Revenue (By Regions)
DRAM Revenue (By Regions) Revenues >70% from US/EU/JP/KR/TW Discrete Business：Revenues > 80% from US/EU/JP/KR End Customers 2023 Q1~Q3 Revenue 2023 Q1~Q3 Revenue in Discrete JP&KR TW 21% 18% KGD 74% TW JP & KR 10% CN 21% 6% US&EU US & EU KGD 87% 35% CN 27% 63% > 72% from > 84% from US/EU + TW+ J
Slide 8: Continuously Expanding Product Portfolio to Provide Customers with a Diverse and Enriched Selection
Continuously Expanding Product Portfolio to Provide Customers with a Diverse and Enriched Selection Etron’s complete line of specialty DRAM products includes SDR, DDR, DDR2, DDR3, DDR4, LPDDR2 and LPDDR4/4X, which provide densities ranging from 16Mb to 16Gb, and I/O numbers from 4 to 64 bits 8
Slide 9: Responding to the Rise of Electric and Autonomous Vehicles: Strategic Moves in the Automotive Sector
Responding to the Rise of Electric and Autonomous Vehicles: Strategic Moves in the Automotive Sector SEMI projected the global automotive electronics market will surpass $400 billion by 2028, at a CAGR of 7.9%. The automotive sector has become a key focus for major tech companies Etron’s special
Slide 10: RPC DRAM Has Successfully Entered the Supply Chain of Leading Global Automotive Manufacturers
RPC DRAM® Has Successfully Entered the Supply Chain of Leading Global Automotive Manufacturers X16 X16 Etron’s Innovative Low-Pin-Count DRAM RPC DRAM DDR3 The 1st WLCSP for Small Form Factor and Low Power Applications Switching 24 47 Provide Total Solution - Controller + DRAM Signals Automot
Slide 11: LRTDRAM Has Completed Validation and Is in the Sampling Phase
LRTDRAMTM Has Completed Validation and Is in the Sampling Phase Etron’s Long Retention Time (LRT) Technology New JEDEC-Compatible DRAM with Very Long Data Retention Time (tREF), Spending Less Time Refreshing and More Time Reading & Writing Data — From the testing data, the tREF can be extended b
Slide 12: Streaming Processor - EJ523D
Streaming Processor - EJ523D Integrated SCALER: Full Range Up & Down Support Audio Mixer; Resample: Full Range Up & Down Support H.265 10 bits HDR; PIP; OSD; MIRROR Support USB OUT NV12 4K/30F, 2K/120F; HEVC 4K/60F, 2K/240F；H.264/.265; MJ 12
Slide 13: Streaming Processor - EJ523D
Streaming Processor - EJ523D Live Stream market is expected to reach $71.63 Billion in 2023，CAGR 28.3%(2023-2027) Gaming Gaming Gaming Gaming accessories market is expected to reach $14.4 Billion In 2027 Growing at a CAGR of 9.1% (2022-2027) Conference Education Promotion 13
Slide 14: Computer Vision is a combination of Compute and Vision
Computer Vision is a combination of “Compute” and “Vision” Immitation of Human is Gateway to A.I. 14
Slide 15: Unique Vision Engine Leads to Machine Vision Opportunities
Unique Vision Engine Leads to Machine Vision Opportunities Creating Silicon Centric Solutions through the heterogeneous integration of special CV engines, sub-systems, and software. Industrial Solution Machine Vision platform – A.I. & 2D/3D Sensor Hybrid Integrating specialized visual engine chips
Slide 16: Pre-Processors, Application IC, Sub-systems Now with AI
Pre-Processors, Application IC, Sub-systems Now with AI 16
Slide 17: DeCloakFace Solution
BEB PLS Easy to Add-on Free consultation and assessment Face| for application requirement. DeCloakFace is not subject to device D¢Cloak! condition settings and Baroie multiple platforms. Making it easy to add-on to | existing devices and platforms. Safe and Compliant Through DeCloak’s de-identified
Slide 18: Fields Entered
Fields Entered Smart Digital Access Control & Smart Digital Retail DeCloak has successfully integrated surveillance systems for enterprises and retail shops, ensuring facial data privacy is fully protected while the targeted person can still be accurately identified through the lens DeCloak is c
Slide 19: Financial Summary
a FAFR Design Technology Leader Financial Summary ©2023 Etron Heterogeneous Integration Enabler All Rights Reserved
Slide 20: Consolidated Operating Revenue
Consolidated Operating Revenue NT$M 7,000 6,146 6,000 5,000 4,685 4,000 3,551 3,000 1,964 2,000 1,000 0 2020 2021 2022 2023 Jan~Sep 20
Slide 21: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Expressed in millions of New Taiwan dollars 3Q23’ 2Q23’ 3Q22’ Operating revenue 661 741 976 Gross profit from operations (56) (22) 236 Gross margin from operations -9% -3% 24% Operating expenses (286) (301) (272) Operating profit (326) (307) (19) Non-o
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Sep.30,23’ Dec.31 ,22’ Sep.30,22’ Expressed in millions of New Taiwan dollars Amount % Amount % Amount % Cash and cash equivalents 620 9% 842 10% 933 11% Accounts receivable 767 11% 878 11% 1,185 14% Inventories 3,048 42% 3,583 44% 3,171 39% Total current assets 4,574 63%
Slide 23: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Expressed in millions of New Taiwan dollars 3Q23’ 2Q23’ 1Q23’ Cash and cash equivalents at beginning of year 704 669 842 Cash flows from operating activities 49 144 (330) Capital expenditure (37) (14) (78) Cash flows from financing activities and others (96) (95
Slide 24: DRAM Market Outlook
DRAM Market Outlook The DRAM industry is known for its pronounced economic cycles, and the market has been in a correction phase since the beginning of this year With major manufacturers actively reducing production and inventory continuing to decrease, there is a market consensus that the worst
Slide 25: Etron Revenue Outlook
Etron Revenue Outlook The DRAM market is expected to enter a new cycle as inventory reaches a healthier level ‒ After a prolonged period of market correction, the general consensus now is that the bottom has been reached, and a gradual recovery is on the horizon ‒ Global DRAM market is expected to
Slide 26: Design Technology Leader
Design Technology Lea 2023 Etron Heterogeneous Integration Enabler All Rights Reserved
Slide 27: www.etron.com
SEB ELIS Design Technology Leader Q, a Oe Through Semiconductor IC, a >. FE = a ‘ge We Connect People to BHoe www.etron.com ©2023 Etron Heterogeneous Integration Enabler All Rights Reserved