ESMT — Interim / Quarterly Report 2021

Nov 1, 2021

Elite Semiconductor Memory Technology Inc

Operating Updates 2021 Q3

2021/11/01

Com an Profile p y

• Established Jun, 1998

• Public Listed in TWSE : March 2002

• Advanic EON

• Merger: (2005/12), (2016/06)

• Location : Hsinchu Science Park, Taiwan

• Major Products :

• Memory IC (DRAM/Flash/MCP/eMCP/eMMC)

• Analog/Mixed Mode IC(Audio/Power)

• Wireless Solution for IoT

• IC Design/Development, Manufacturing, Sales and related service Page 2

Operating Updates

Consolidated Rev. 2020Q3 $10,874 M 2021Q3 $17,990 M (65.45%↑)

Month

Operating Updates

Consolidated Income Statement 2021Q3 Unit : K $NTD

		Q1	Q2	Q3	Q1~Q3 合計
	Net Sales	4,971,476	6,175,127	6,843,255	17,989,858
	Gross Margin(%)	23.01%	36.66%	44.27%	35.78%
	Operation Income	633,049	1,623,995	2,159,740	4,416,784
	Rate(%)	12.73%	26.30%	31.56%	24.55%
	Income before tax	730,739	1,501,106	2,269,810	4,501,655
	Rate(%)	14.70%	24.31%	33.17%	25.02%
	EPS	2.30	4.62	6.80	13.72

Operating Updates

Consolidated Income Statement

Unit : Million $NTD

	Item	2021Q3 (Reviewed by the CPAs.)	2021Q2 (Reviewed by the CPAs.)	QoQ	2020Q3 (Reviewed by the CPAs.)	YoY
	Net Sales	6,843	6,175	10.82%	3,999	71.12%
	Gross Margin(%)	44.27%	36.66%		15.79%
	Operation Income	2,160	1,624	33.00%	263	721.29%
	Rate(%)	31.56%	26.30%		6.58%
	Income before tax	2,270	1,501	51.23%	288	688.19%
	Rate(%)	33.17%	24.31%		7.20%
	EPS	6.80	4.62		0.85

Operating Updates

Consolidated Balance Sheet 2021Q3

Unit : K $NTD

	Assets	2021/9/30	2021/6/30	2020/9/30 $2,265,219 1,712,482 6,747,076 11,365,976 1,076,083 12,442,059
	Cash and cash equivalents	$9,216,312	$6,674,997
	Accounts receivable, net	2,160,408	2,298,262
	Inventories	5,066,840	5,058,712
	Total current assets	17,082,470	14,571,548
	Total non-current assets	1,580,037	1,424,072
	Total assets	18,662,507	15,995,620

Operating Updates

Liab.& Equity. 2021/9/30 2021/6/30 Accountspayable $2 851 896 $2 620 279 Consolidated Balance Sheet 2021Q3 , , , , Other payables 1,570,092 1,156,865 Total current liabilities 7,050,927 5,821,717 Total non-current liabilities 112,445 105,352 Total liabilities 7,163,372 5,927,069 Total equity 11,499,135 10,068,551 Total liabilities and equity 18,662,507 15,995,620	Liab.& Equity. 2021/9/30 2021/6/30 Accountspayable $2 851 896 $2 620 279 Consolidated Balance Sheet 2021Q3 , , , , Other payables 1,570,092 1,156,865 Total current liabilities 7,050,927 5,821,717 Total non-current liabilities 112,445 105,352 Total liabilities 7,163,372 5,927,069 Total equity 11,499,135 10,068,551 Total liabilities and equity 18,662,507 15,995,620	Liab.& Equity. 2021/9/30 2021/6/30 Accountspayable $2 851 896 $2 620 279 Consolidated Balance Sheet 2021Q3 , , , , Other payables 1,570,092 1,156,865 Total current liabilities 7,050,927 5,821,717 Total non-current liabilities 112,445 105,352 Total liabilities 7,163,372 5,927,069 Total equity 11,499,135 10,068,551 Total liabilities and equity 18,662,507 15,995,620	Liab.& Equity. 2021/9/30 2021/6/30 Accountspayable $2 851 896 $2 620 279 Consolidated Balance Sheet 2021Q3 , , , , Other payables 1,570,092 1,156,865 Total current liabilities 7,050,927 5,821,717 Total non-current liabilities 112,445 105,352 Total liabilities 7,163,372 5,927,069 Total equity 11,499,135 10,068,551 Total liabilities and equity 18,662,507 15,995,620	2020/9/30 $2 521 962 Unit : K $NTD , , 577,512 4,446,482 109,761 4,556,243 7,885,816 12,442,059
	Accountspayable	$2 851 896 , ,	$2 620 279 , ,
	Other payables	1,570,092	1,156,865
	Total current liabilities	7,050,927	5,821,717
	Total non-current liabilities	112,445	105,352
	Total liabilities	7,163,372	5,927,069
	Total equity	11,499,135	10,068,551
	Total liabilities and equity	18,662,507	15,995,620

Memory Business

Memory Business includes Packaged Niche Memory and Customized SoC Memory.

� Packaged Niche Memory

• Sales covered many fields, such as IoT/AIoT, Smart Devices, Network Communication, Display, Consumer, PC Peripherals, Automotives , Industrial and Medical , etc ..

• Compliant with various main chipsets, we are one of the major suppliers now.

� Customized SoC Memory

• Built-in memory has become the trend of SoC lately, the CAGR of SoC Memory was 30% in the past 4 years.

• Since 2018, the shipping quantities were over 50% out of the total shipments, it reached 66% in 2021 Q1~Q3.

• The SoC memory is packaged with main chips for various applications, such as IoT/AIoT 、 TV 、 WiFi 、 PON 、 IP Cam 、 STB, MCU and Interface IC, etc..

• Main customers include Taiwan, China and Worldwide IC design companies.

SoC Memory Applications

==> picture [781 x 406] intentionally omitted <==

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

Smartphone
IoT, AIoT
AR/VR
OLED, MiniLED
MicroLED, 8K
10GPON,
and advanced devices
WiFi6,…
Smart device
e-Vehicle
Smart Family
Smart Driving
Smart Building
Auto Pilot
Smart Community
Cloud/Edge IP CAM
Computing Survelliance
Data Center
----- End of picture text -----

Business Review & Outlook

• Revenue Record High in Q3/2021 , GM 44.27% , eps 6.80

• Q4/2021 market impact caused by unbalanced component supply and power shortage in China � Packaged Niche Memory

  • Supply Shortage of DDR3 to be not so tight as in Q3

  • • Very little impact on DDR2/DDR1/SDRAM market

• Very little impact on SoC Memory market

• Achieved 4G DDR4 /3200MHz to production

• � Achieved tape out of 256Mb/3V NOR Flash SOP8

• Audio Amp IC

• WW no.1 supplier of TV application

• Achieved to be a supplier of Hi-End Audio application

Thank s ! Q & A