EDT — Investor Presentation 2021

Dec 24, 2021

1

Emerging Display Technologies Corp. 全台晶像股份有限公司

2021年第三季 法人說明會 12月24日

==> picture [125 x 59] intentionally omitted <==

2

免責聲明

本簡報及同時發佈之財務業務訊息及預測性資訊，乃建立於本 公司自內部與外部所取得之資訊基礎。本公司未來實際發生之營運 結果及財務狀況，若與此預測性資訊有所差異，其原因可能來自於 本公司無法掌握之各種風險因素。

對未來之展望係反映本公司截至目前為止對於未來的看法。未 來若有任何變動或調整時，本公司不負責隨時提醒或更新相關資訊。

==> picture [125 x 59] intentionally omitted <==

3 議程

Presentation Time Speaker ® 10分鐘 What embedded in Smart Embedded ? 王臺光總經理 Pauli Wang 5分鐘 營運概況 5分鐘 Our Goals in 2025 黃綉文財務長 10分鐘 財務資訊 Sandy Huang 10分鐘 Q & A

==> picture [125 x 59] intentionally omitted <==

4

What embedded in Smart Embedded® ? 新世代的智慧型觸控顯示器

Investor Conference 2021

Dec. 24[th]

By 總經理王臺光 CEO Pauli Wang

==> picture [125 x 59] intentionally omitted <==

5

Post Pandemic Era

• Game change for Taiwanese panel manufacture

• Go Premium，Go Vertical ， Concept of panel semiconductor

• 極大化面板價值的場域經濟

• 從顯示器核心技術再升級，並跨入系統、解決方案及服務

• 生態: 智慧醫療、智慧零售、智慧交通、智慧育樂+智慧製造

6

Vision and Insight

• An Intelligent HMI...

==> picture [338 x 143] intentionally omitted <==

It can provide almost unlimited control, monitoring, and visibility, giving users and manufacturers more data, and more analytic to actionable power improve decision making.

• 智慧化的人機介面...

• 直覺式操作選單(由機器解讀使用者意圖)

• AIoT sensor 資料回饋(由嵌入式系統整合)

• 高效率掌控決策面數據(研判並應用端點場景資料)

7

Vision and Insight

• ®

• • Smart Embedded is the platform and solution to fulfill Intelligent HMI...

==> picture [209 x 123] intentionally omitted <==

==> picture [209 x 123] intentionally omitted <==

It provides visualization for monitoring, control and taking inputs from sensors to trigger action.

• 智慧化互動顯示平台

(AIoT 邊緣端平台)

• 數據處理化繁為簡

• 硬體垂直整合

• 軟體水平整合

8

Vision

==> picture [131 x 95] intentionally omitted <==

1980s PC DOS

==> picture [116 x 108] intentionally omitted <==

1990s ~ Windows PC

==> picture [149 x 90] intentionally omitted <==

Text User Interface (TUI) : command line interface.

==> picture [45 x 58] intentionally omitted <==

Graphical User Interface (GUI): Graphic icons touch the slightest set of movements give users access to a range of features and functionality.

==> picture [45 x 58] intentionally omitted <==

Natural User Interface (NUI): with natural, intuitive, immersive and intelligent beyond-touch methods/techniques.

BEFORE

AS NOW

FUTURE

2020s ~?

9

Smart Embedded Platform

• Adds-on Platform

==> picture [404 x 302] intentionally omitted <==

----- Start of picture text -----

)
----- End of picture text -----

• Main evaluation board and application board (可擴充式加值平台)

• Extension board

==> picture [83 x 117] intentionally omitted <==

==> picture [89 x 92] intentionally omitted <==

• Carrier board

==> picture [104 x 73] intentionally omitted <==

• Sensor board

• Value

• Concept proof physically

  • (最終成品概念在早期階段可具體化)

• Integration solution vertically

  • (軟硬體垂直整合以簡化供應鏈管理)

10

Interactive User Interface

各型態的互動式人機介面

• Display

• True 3D image for intuitive touch

• Display

• Hardware

• Gesture Touch

• Menu selection

• Predictive touch

• Touch Display

• Hardware/Firmware

• Intelligent HMI

• Sensors fusion

• Machine learning

• Sensors data inference

• Smart Embedded Display

• Application/Solution

11

Smart Embedded Trending

• 互動式人機介面的發展趨勢

==> picture [708 x 337] intentionally omitted <==

----- Start of picture text -----

2010~ 2020~ 2025~
• • •
Device level Machine Sensors
driver learning fusion
coding capability integration
•
Rule base
algorithm
----- End of picture text -----

12

Smart sensors and Intelligent HMI are embedded in

• 互動式人機介面的應用場景

==> picture [209 x 169] intentionally omitted <==

==> picture [191 x 38] intentionally omitted <==

----- Start of picture text -----

Large Water Tolerance
----- End of picture text -----

==> picture [292 x 244] intentionally omitted <==

----- Start of picture text -----

Air touch
50mm (select)
Air touch
(confirm)
30mm
Direct touch
0mm
Predictive Touch
----- End of picture text -----

==> picture [256 x 180] intentionally omitted <==

==> picture [191 x 39] intentionally omitted <==

----- Start of picture text -----

Short Voice Commands
----- End of picture text -----

13

營運概況Business Status

• Invest AI and Solution is the King

• Smart Manufacture (智慧型製造)

• Mass customization (客製化量產)

==> picture [200 x 125] intentionally omitted <==

==> picture [185 x 121] intentionally omitted <==

==> picture [125 x 59] intentionally omitted <==

==> picture [404 x 302] intentionally omitted <==

14

Technologies Profile : 2010 – 2021Q1~Q3

		2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others	2% 1% 1% 1% 2% 1% 2% 2% 43% 42% 36% 33% 27% 17% 15% 12% 22% 29% 31% 32% 34% 23% 18% 16% 13% 8% 8% 7% 5% 5% 8% 3% 20% 20% 24% 27% 32% 54% 57% 67% 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3 20% 20% 24% 27% 32% 54% 57% 67% 13% 8% 8% 7% 5% 5% 8% 3% 22% 29% 31% 32% 34% 23% 18% 16% 43% 42% 36% 33% 27% 17% 15% 12% 2% 1% 1% 1% 2% 1% 2% 2% TFT+TP TP TFT STN Others
		2014	2015	2016	2017	2018	2019	2020	2021Q1-Q3
	TFT+TP	20%	20%	24%	27%	32%	54%	57%	67%
	TP	13%	8%	8%	7%	5%	5%	8%	3%
	TFT	22%	29%	31%	32%	34%	23%	18%	16%
	STN	43%	42%	36%	33%	27%	17%	15%	12%
	Others	2%	1%	1%	1%	2%	1%	2%	2%

15

Revenue Trend : 1994 – 2021Q1~Q3

==> picture [798 x 318] intentionally omitted <==

----- Start of picture text -----

(In MUSD)
151
144
133 133
129 129
126 126 127
122
116
113
110
107
99 99
94
87
56
52
50
42
----- End of picture text -----

==> picture [781 x 38] intentionally omitted <==

16

ASP Trend : 2008 – 2021Q1~Q3

==> picture [847 x 379] intentionally omitted <==

----- Start of picture text -----

27.59
25.22
(US Dollar)
16.73
14.19
13.04
11.51
10.79 10.83
10.08 10.30 10.02
8.33
7.59
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3
----- End of picture text -----

17

Our Goals in 2025

• Invest AI and Solution is the King

• Smart Embedded (更新人機智慧介面)

• Smart Integration (更多人機整合功能)

==> picture [125 x 59] intentionally omitted <==

==> picture [404 x 302] intentionally omitted <==

18

==> picture [403 x 76] intentionally omitted <==

2018~2021 Q3 Smart Embedded

==> picture [793 x 257] intentionally omitted <==

----- Start of picture text -----

100
90
80
70
60
Number of
project 50 Target 50 won projects
40
into mass production in
30
20 2025
10
0
USA EUR JPN KOR TWN TOTAL
QUOTE 20 67 3 0 3 93
DR1 3 14 1 0 1 19
MP 0 6 0 0 0 6
----- End of picture text -----

19

==> picture [828 x 510] intentionally omitted <==

----- Start of picture text -----

GO FAR, FASTER - FOR A LONG TIME
WITH Smart Embedded
We make your work easier – and your display smarter
The Clear Choice
----- End of picture text -----

20

財務資訊 Financial Information

Investor Conference 2021

Dec. 24[th]

By 財務長黃綉文 CFO Sandy Huang

==> picture [125 x 59] intentionally omitted <==

合併損益表

21

Consolidated Income Statement Highlights

==> picture [783 x 348] intentionally omitted <==

----- Start of picture text -----

(NT$ thousands) 2021Q1-Q3 2020Q1-Q3 YoY
Revenue 3,080,613 100% 2,843,294 100% +8.3%
Cost of revenue 2,556,120 2,238,946
Gross profit 524,493 17.0% 604,348 21.3% -4.3ppts
Operating expenses 327,196 338,232
Operating income 197,297 6.4% 266,116 9.4% -3.0ppts
Non-operating income & expenses 6,062 (20,848)
Profit before tax 203,359 6.6% 245,268 8.6% -2ppts
Net income
to Shareholders of the Parent 182,537 5.9% 206,726 7.3% -1.4ppts
Company
Basic EPS (NT$) [(a)] 1.23 1.39 -0.16
----- End of picture text -----

(a) Basic EPS in 2021Q1-Q3 & 2020Q1-Q3 were both calculated based on the weighted average outstanding shares of 148.6M shares.

合併損益表

22

Consolidated Income Statement Highlights

Revenue by technology

==> picture [775 x 305] intentionally omitted <==

----- Start of picture text -----

Highlights:
TFT
TP
Others STN 16% TFT& CTP : 83% → 86%
3%
2%
12% STN : 15% → 12%
STN
TFT
TP
TFT+TP
TFT+TP Others
67%
----- End of picture text -----

合併損益表

23

Consolidated Income Statement Highlights

==> picture [296 x 29] intentionally omitted <==

----- Start of picture text -----

8 yeas trend by technology
----- End of picture text -----

==> picture [796 x 347] intentionally omitted <==

----- Start of picture text -----

86% TFT+TP
TP
20% 20%
24%
27% TFT
32% 54% 57% 67%
STN
8%
13%
55% 8%
7% Others
5%
22% 29%
31%
32%
34%
5%
8%
3%
23%
18%
43%
42% 16%
36% 33%
27%
17% 15%
12%
2%
2% 1% 1% 1% 2% 1% 2%
2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3
----- End of picture text -----

合併損益表

24

Consolidated Income Statement Highlights

Revenue by application

==> picture [495 x 295] intentionally omitted <==

----- Start of picture text -----

Commercial &
Office
Automotive
2%
2%
Others
5% Smart Home
Medical
10%
Industrial
Medical
Industrial
33%
Automotive
Smart Home
48%
Commercial & Office
Others
----- End of picture text -----

Highlights: Smart Home : 41% → 48% Industrial : 31% → 33% Medical : 16% → 10%

合併損益表

25

Consolidated Income Statement Highlights

8 years trend by application

==> picture [812 x 358] intentionally omitted <==

----- Start of picture text -----

Smart Home
11%
12% 16% 15% 14%
91%
Industrial
41%
40% 48% Medical
Automotive
42% 50%
53% 48%
49%
60%
Commercial & Office
30%
Others
6% 31%
2%
33%
18% 9% 11% 12% 15%
2% 2% 2% 13%
3% 16%
13% 12% 9%
9% 4% 10%
20% 6% 2%
3% 2%
10% 11% 13% 11% 2%
7% 7% 5%
2014 2015 2016 2017 2018 2019 2020 2021Q1-Q3
----- End of picture text -----

合併資產負債表

26

Consolidated Balance Sheet Highlights

(NT$ thousands)		2021.09.30		2020.09.30
Cash & Equivalent		844,876 23%		1,483,745 38%
Accounts Receivable		713,241 20%		620,052 16%
Inventory		1,008,290 28%		867,404 23%
PP&E		327,575 9%		334,629 9%
Total Assets		3,617,698 100%		3,879,867 100%
Financial Debt(a)		593,058 16%		1,006,469 26%
Accounts Payable		518,821 15%		431,507 11%
Total Liabilities		1,629,113 45%		1,955,348 50%
Total Equity		1,988,585 55%		1,924,519 50%
Net Worth per Share (NT$)(b)		13.13		12.70

(a) Financial debt included long-term and short-term financial debts. (b) Net worth per share was calculated based on total outstanding shares of 148.6M shares

合併現金流量表

27

Consolidated Cash Flow Highlights

(NT$ thousands)		2021Q1-Q3			2020Q1-Q3
Beginning Balance		1,242,331			1,368,252
Cash from operating activities		37,158			154,346
Capital expenditures		(34,444)			(20,645)
Cash dividends		(178,342)			(178,330)
Short-term & Long-term loans		(105,445)			286,727
Others		(116,382)			(126,605)
Ending Balance		844,876			1,483,745
Free Cash Flow*		2,714			133,701
* Free cash flow = Cash from operating activities – Capital expenditures

配息率趨勢 Dividend Payout Ratio

28

==> picture [30 x 12] intentionally omitted <==

----- Start of picture text -----

EPS
----- End of picture text -----

==> picture [20 x 8] intentionally omitted <==

Cash Dividends

==> picture [149 x 15] intentionally omitted <==

----- Start of picture text -----

Dividend Payout Ratio
----- End of picture text -----

(NT Dollar)

==> picture [816 x 290] intentionally omitted <==

----- Start of picture text -----

1.73
1.57
⇧
121.2%
1.25 1.23
1.20 1.20
1.03
76.4%
70.4% 69.4%
0.71
38.8%
25.6% 0.50
0.40 0.40
0.32 0.33
2015 2016 2017 2018 2019 2020 2021Q1-Q3
----- End of picture text -----

29

權益報酬率與股本 ROE & Capital

==> picture [812 x 353] intentionally omitted <==

----- Start of picture text -----

(Billion NT Dollar)
Capital ROE
2.5
13.66%
2.15
11.84%
1.95
2
12.55% 1.83 ⇧
1.74
1.62 1.62 1.62 9.15%
1.5
9.04%
Capital
↓25%
1
6.02%
2.81%
0.5
0
2015 2016 2017 2018 2019 2020 2021Q1-Q3
----- End of picture text -----

30

==> picture [535 x 473] intentionally omitted <==

----- Start of picture text -----

Question?
?
?
FOR A LONG TIME
----- End of picture text -----