EDT — Investor Presentation 2021

Dec 24, 2021

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Emerging Display Technologies Corp. 2021 Third Quarter Investor Conference Dec. 24[th]

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Disclaimer

The predictive and financial information mentioned in the present briefing as promulgated simultaneously is based on the information obtained by the Company from internal and external sources. The actual operating result and financial condition might be different from the predictive information which is explicit or implicit. The reason may come from the various risks that the Company cannot control.

The future outlook contained in the present briefing reflects the Company’s perspective to date. In case of a change or adjustment in the future, the Company assumes no responsibility to remind or update.

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Presentation Time Speaker ® 10 min. What embedded in Smart Embedded ? Pauli Wang 5 min. Business Status 5 min. Our Goals in 2025 Sandy Huang 10 min. Financial Information 10 min. Q & A

Agenda

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

全台晶像法說會 2021 Dec. 24[th] by CEO Pauli Wang

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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...

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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...

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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

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1980s PC DOS

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1990s ~ Windows PC

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Text User Interface (TUI) : command line interface.

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

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

BEFORE

AS NOW

FUTURE

2020s ~?

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Smart Embedded Platform

• Adds-on Platform

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

• Extension board

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• Carrier board

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• 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

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Smart Embedded Trending

• 互動式人機介面的發展趨勢

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2010~ 2020~ 2025~
• • •
Device level Machine Sensors
driver learning fusion
coding capability integration
•
Rule base
algorithm
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Smart sensors and Intelligent HMI are embedded in

• 互動式人機介面的應用場景

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Large Water Tolerance
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Air touch
50mm (select)
Air touch
(confirm)
30mm
Direct touch
0mm
Predictive Touch
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Short Voice Commands
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13

Business Status

• Invest AI and Solution is the King

• Smart Manufacture (智慧型製造)

• Mass customization (客製化量產)

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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%

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Revenue Trend : 1994 – 2021Q1~Q3

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(In MUSD)
151
144
133 133
129 129
126 126 127
122
116
113
110
107
99 99
94
87
56
52
50
42
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ASP Trend : 2008 – 2021Q1~Q3

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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
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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)

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2018~2021 Q3 Smart Embedded

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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
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GO FAR, FASTER - FOR A LONG TIME
WITH Smart Embedded
We make your work easier – and your display smarter
The Clear Choice
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20

Financial Information

Investor Conference 2021

Dec. 24[th]

By CFO Sandy Huang

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Consolidated Income Statement Highlights

(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 Company		182,537 5.9%		206,726 7.3%	-1.4ppts
Basic EPS (NT$) (a)		1.23		1.39	-0.16

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

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Consolidated Income Statement Highlights

Revenue by technology

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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%
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Consolidated Income Statement Highlights

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8 yeas trend by technology
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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
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Consolidated Income Statement Highlights

Revenue by application

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Commercial &
Office
Automotive
2%
2%
Others
5% Smart Home
Medical
10%
Industrial
Medical
Industrial
33%
Automotive
Smart Home
48%
Commercial & Office
Others
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Highlights: Smart Home : 41% → 48% Industrial : 31% → 33% Medical : 16% → 10%

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Consolidated Income Statement Highlights

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8 years trend by application
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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
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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

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

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Dividend Payout Ratio

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EPS Cash Dividends Dividend Payout Ratio (NT Dollar)
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
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ROE & Capital

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(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
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Question?
?
?
FOR A LONG TIME
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