AVerMedia
Corporate ProfileMarch, 2008
ByMoses Lee

AVerMedia Overview
Founded in 1990, Specializing in Designing, Manufacturingand Marketing of Multimedia Entertainment, Presentation andDigital Surveillance Products.

 Annual Turnover (2007): US$ 133.5 Million

 Consecutive profitable years: 17 years Plus

 Consecutive profitable quarters: 68 quarters

 Employees (AVerMedia Group): 1070 Branding / ODM with premium value : 70% / 30%

Updated on Mar. 2008

2

2006 Taiwan Superior Brand•

Based on the evaluation by the 2006 Taiwan Superior
Brand committee, the company is awarded for its
outstanding performance and innovation in researchand development, product quality, branding strategy,
and branding achievement.

3

AVerMedia Wins 2007
Corporate Social
Responsibility Award

Global Marketing & Service Network
Netherlands, Moscow,
Amsterdam Russia
Ruesselsheim,
Milton Keynes,
Frankfurt,London,
GermanyUK

SuZhouChina

Paris,
FranceTaipei,TaiwanMadrid,Spain
Bangkok ,Thailand

Milpitas,
CA
USA

Subsidiaries and Global Network of Distributors, System
Integrators, VARs, and ODMs Over 75 Countries52007 Annual Financial Results
Performance Comparison of 2007 to that of 2006 & 2005
Amount : US$ k2007☆

2006

2005

Net Sales

133,485

100 %

104,773

100 %

90,191

100 %

COGS

(69,954)(52)%(58,874)(56)%(49,806)

(55)%

GP

63,53148 %45,89844 %

40,38545 %Operating Expense(34,907)(26)%(29,965)(29)%(26,769)(30)%

Operating Income

28,62421 %

15,93415 %

13,616

15 %

598

0%

1,603

2%

430%

29,22222 %

17,53717 %

13,659

15 %

(162)

(0)%

1850%

1,137

1%

29,38422 %

17,35117 %

14,79616 %Net Non-op Items
Income before Tax
Income Tax
Net Income
Fully Diluted EPS(NT$)

4.77

3.043.00

Sales Grew

27 %

16 %

3%

EPS Grew

57 %1%(2)%☆Y2007's annual results are before CPA's audit

Balance sheet highlights
Amount : US$ k

2007☆

2006

2005

Cash & Equivalent

60,04740 %

54,60141 %

61,35449 %Accounts Receivable

20,13414 %

16,92013 %14,757

12 %Inventory

20,69114 %

13,57310 %10,867

9%

L-T Investment

1,547

1%

3,430

3%

865

1%

Fixed Assets

28,74019 %

28,43421 %

20,69517 %Total Assets

148,651

100 %

133,979

100 %

124,705

100 %Liabilities

30,21620 %

34,78826 %

36,76529 %Equities

118,43680 %

99,19274 %

87,94071 %☆Y2007's annual results are before CPA's audit

Key Financial indicators
2007

2006

2005

2004

ROE

24.81 %

17.24 %

16.82 %

22.60 %

ROA

19.77 %

12.93 %

11.86 %

14.65 %AR Turnover

56 days

57 days

60 days

42 daysInventory Turnover

107 days

86 days

79 days

74 days

Debt ratio

20.33 %

25.96 %

29.48 %

40.67 %

2005~07-4Q Quarterly Revenue/Profit
45,00040,00035,00030,00025,00020,00015,00010,0005,000
012,000
Amount : US$ k

10,0008,000
6,0004,000
2,00002005-Q1 2005-Q2 2005-Q3 2005-Q4 2006-Q1 2006-Q2 2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3 2007-Q4
Revenue

Net Income

Amount : US$ k

2005-Q1

2005-Q2

2005-Q3

2005-Q4

2006-Q1

2006-Q2

2006-Q3

2006-Q4

2007-Q1

2007-Q2

2007-Q3

2007-Q4

Revenue

21,21917,14622,14029,686

21,444

23,66029,111

26,35526,49632,236

40,06534,687Net Income

3,150

1,780

3,636

6,230

3,546

2,826

5,500

6,516

5,064

6,041

10,6607,619

Breakdown of ROE
30.00 %

180.00 %154.29 %141.67 %25.00 %

141.81 %126.92 %160.00 %133.35 %125.51 %120.00 %20.00 %
90.49 %
15.00 %

88.66 %

89.80 %
72.32 %

72.52 %

79.37 %

100.00 %80.00 %
60.00 %

10.00 %
5.00 %

140.00 %12.71 %

0.00 %

17.91 %

22.60 %
16.52 %

13.81 %

13.97 %

2002

2003

16.82 %
16.40 %

24.81 %

17.24 %

22.01 %

16.29 %

40.00 %
20.00 %
0.00 %

2004

2005

2006

2007

ROE = Profit / Net Equity

Profit / Sales

Assets / Net Equity

Assets / Net Equity

2002

2003

2004

2005

2006

2007

Profit / Sales

13.81 %

13.97 %

16.52 %

16.40 %

16.29 %22.01 %Sales / Assets

72.52 %

90.49 %

88.66 %

72.32 %

79.37 %

89.80 %

Assets / Net Equity

126.92 %141.67 %154.29 %141.81 %133.35 %125.51 %ROE = Profit / Net Equity

12.71 %

17.91 %

22.60 %

16.82 %

17.24 %

24.81 %

Dividends distribution
4.775
4.5

EPS
Cash
Stock

4
3.5
3

3.26

3.00

3.04

2.34

2.5
2

1.43

1.5 1.02
10.5
0

20 01

2 002

Year

2 003

20 04

2005

Cash

2 006

Stock

2007

Total

2007
2006

2.00

85 %

0.365

15 %

2.365

2005

1.37

58 %

1.00

42 %

2.37

2004

1.5755 %

1.26

45 %

2.83

2003

1.52

60 %

1.01

40 %

2.53

2002

0.79

44 %

0.99

56 %

1.78

2001

0.51

50 %

0.51

50 %

1.02

Revenue Evolution
140,000

CAGR : 22.81%

120,000

133,485

100,000

87,45280,00090,191

104,773

74,20060,00047,78840,00020,0000

2002
Amount : US$ k

2003

2004

2005

2006

2007

Net Sales

Amount : US$ k

2002

2003

2004

2005

2006

2007

Net Sales

47,78874,20087,452

90,191

104,773

133,485

Compound Annual Growth Rate

22.81 %

R&D Expenditures
R&D Expenditures
12,00010,000CAGR : 19.11%

8,448

8,000

9,903

10,755

6,392

6,000
4,000

10,310

4,487

2,000
0
R&DExpenditures

2002

2003

2004

2005

2006

2007

Amount : US$ k2002

2003

2004

2005

2006

2007

R&D Expenditures

4,487

6,392

8,448

10,3109,903

10,755Compound Annual Growth Rate

19.11%

Product Portfolio
Multimedia Product- Watch TV on NB solution- Analog TV Tuner- Hybrid TV Tuner- Digital TV Tuner- Digital Home Solution (ViiV, MCE & Vista)- External TV Tuner Box

Presentation Product- Document Camera

Network Video Product- Digital Video Surveillance
14External marketing trend• Multimedia Products– Strong demand in Notebook PCs: annual demand ofaround 95 million sets ( less than 2% of attachment
rate of TV Tuner in Notebook PCs except Japan)

15

ODM solution

Hybrid Mini card

DVB-T Mini cardHybrid Mini PCI

Hybrid ATSC

Hybrid DVB-T

Analog Worldwide

Analog Worldwide Hybrid DVB-T

ATSC

DVB-T
Analog Worldwide

Hybrid DVB-T

DVB-H SDIO

DVB-H Mini card

DVB-T USB

Hybrid PCIe

16

MiniPCI TV Tuner card for NB

17

ODM main customers

18Analog TV Tuner / PVRz Watch, Record & Enjoy TV / Video on PC

z Desktop PC Solution

AVerTV (Studio) 503

AVerMedia AVerTV PVRHigh-Quality TV Tuner Card TV Tuner Card, H/W compressionz Notebook PC Solution

AVerTV Hybrid Express Slim

AVerTV USB MCE

Express Tuner Card

USB TV Tuner,
H/W compression

19Hybrid TV Tuner Cardz Watch Digital Terrestrial and Analog TV on PC

USB Solution
Analog TV

EXPress Card Solution

DVB-T

CardBus Solution
VCD\DVD Player

20

PCI Solution

Viiv & Windows Vista••

Microsoft launched Windows Vista at the beginning of 2007.
Most significantly, Windows Vista includes all of the Windows Media Center capabilities forturning your PC into an all-in-one home entertainment center. Windows Media Center inWindows Vista provides new ways for you to enjoy your music, photos, DVD movies. andrecord and watch your favorite TV shows (even HDTV).

21

Windows OS vs PC Shipment

Santa Rosa

Vista VersionPriceTV Function

Windows Vista Business$ 299 (199)

X

Windows Vista Home Premium$ 239 (159)

V

Windows Vista Home Basic$ 199 ( 99)X

Windows Vista Ultimate$ 399 (259)V
22

Watch DVB-H TV Solution

South of Taiwan starts
broadcasting to enter into the trial stage.
AVerMedia provides DVB-H platform aspart of the solutions.

23External TV Tuner BOX
z Watch Digital Terrestrial TV on PC Monitor/TVor

AVerTV DVB-T STB7
Digital Terrestrial TV Set-top-Box

z Watch Analog TV / Video on PC Monitor

AVerTV DVI Box9
TV/Video viewing w/ highdefinition 1920x1200（WUXGA）TV Box24

Portable Document Cameraz Display 3D Objects or Documents on Projector /Monitor / TV

AVerVision SPC300
Digital Portable DocCam
Super High Quality, Fast Auto Focus,
PIP & Spilt Screen, 48X total ZOOMAVerVision130

AVerVision300AF

Gooseneck DocCam

Digital Portable DocCam
High Quality, Fast Auto Focus,
Excl. AVERZOOMTM

AVerVision330
Digital Portable DocCam
w/Optical Zoom, Smart Focus

AVerVision530
Digital Platform DocCam25

Document Camera Applications

26

Top 10 wish list as selected byAmericans in education field

27

AVerDigi Surveillance
AVerDiGi NV7000H

AVerDiGi NV6480 Express

AVerDiGi NV5000-Single 8 Ch. DVR card,-Single 16 Ch. DVR PCI Express, -Up to 16 Ch.,120~240fps
240fps display/recording, 480fps display/recording
display/recording, remote
H/W H264 compression
monitoring via internet or PDA

NV Series

Windows DVRs
AVerDiGi SA6416

AVerDiGi SA6000E Pro- Hybrid standalone DVR, 16 Ch.
Real Time Digital Video Recorder

DVR with video loop out ports.

- Advanced 16 Ch. hybrid embedded

28

Standalone DVRs – PC baseAVerDigi SurveillanceAVerDiGi EB1704Hybrid

AVerDiGi EB1304NET- 4 Ch. standalone security- 4CH Multiplex Networking

digital video recorder w/network accessDVRStandalone DVRs

AVerDiGi EB1304 MOB
4CH Mobile DVR
29

Mobile DVRs

Surveillance Application

The AVerDiGi Central Monitoring System Software (CM3000)enables users
to access and monitor multiple DVRs simultaneously for a wide range ofapplications. Features include: instant notification on DVR latest status orevents, supports remote PTZ and I/O control for alarm events, up to quadmonitor outputs, full remote DVR control, etc.

30

Internal organization capability
MultimediaProduct•Culture•Technology•BrandNetwork VideoProductPresentation
ProductGrowth Drivers

31Culture• Core Value– Down-to-Earth•Culture– Value Creation•Technology– Self- Devotion•Brand– Service to Society• Humanity- Self Awareness / Transcendence /Honesty & Integrity

32

Technology– Video conversion between analog and digital– Leading technology for TV tuners in the fieldof Notebook PCs– Patents : 100 of patents being granted, 224 ofpatents application in the process•Culture– Product awards•Technology•Brand33

Brand• MultiMedia products: Brand premium in certain
geographical areas, like Spain, Russia and EastEurope etc.
• DoCam: Distinguished as one of the firstmovers with strong presence in K-12. Education
market in the U.S. with brand recognition inheritedfrom the glamour of previous product lines.
•Culture•Technology•Brand34

Presentation Products Potential market size
• No statistic data investigating the market
size of DocCam.
– Number of schools: the maximum market size
can be derived from number of schools. Take
USA as an example, there are 90,792 K-12
schools in the US. If we assume each school has
30 to 40 classrooms and each classroom shallinstall one DocCam, the potential market is 3 M
units in total.

35

Quality & Environment Management
 ISO 14001 Environment Manage System- Lead – Free Process (by the end of 2006)
 ISO9001: 2000 Version Quality System
 OHSAS:18001
 Passed the Quality System Audit by first tier companies.

36

Q&A