AVerMedia
Corporate Profile
September, 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: 70 quarters

 Employees (AVerMedia Group): 1136

 Branding / ODM with premium value : 70% / 30%

Updated on July, 2008

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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 Award2

2008 Taiwan Excellence Gold Award

AVerMedia won the recognition ofTaiwan Excellence Gold Awards
with the new AVerVision SPB350
simplicity yet rich functionalities
and user-friendly operation.

Best Choice of COMPUTEX TAIPEI 2008

AVerTV Volar GPS805 is the world’s first DVB-T USB dongle
receiver with integrated GPS capability

Best Choice of COMPUTEX TAIPEI 2008 Award
revealed the award list on June 3,2008. According
to the jury, because the categories are more
complete and more closely in touch with thenewest industry trend, the Best Choice this year
can better illustrate the creativity, technical skills
and specialty of the product itself………

3

2008 CES
Innovations Design & Engineering Award

AVerTV Hybrid NanoExpress

AVerTV Hybrid Volar MAX

AVerTV Hybrid Volar MAX and AVerTV Hybrid NanoExpress were both selected as CES 2008 Innovations
Design and Engineering Award Winner in the Video Accessories category. Each year, CES Innovations
award winning products have been served as benchmark for the latest and most advanced in consumer
technologies, showcasing the latest design and engineering innovations.

CommonWealth’s Top Corporate Citizens
2008 Rank

Large Enterprises

Medium-Sized Enterprises

Foreign Enterprises

1Taiwan Semiconductor

Sinyi Realty

ING Antai Life Insurance

2

Delta Electronics

Everlight Chemical

Citibank

3

Chunghwa Tlecom

HiWin

DuPont Taiwan

4Lite-On Technology

Advantech

IBM Taiwan

5

AU Optronics

AVerMedia Technologies

Bayer Taiwan

AVerMedia was ranked Taiwan’s Top 5 Corporate Citizens in the mediumsized enterprises by CommonWealth Magazine
CommonWealth magazine released its CSR survey of Taiwan's Top 50 Corporate Citizens on Mar. 31, 2008.
AVerMedia was ranked among the top five in the medium-sized enterprises, rising from 10 to 5 in the ranking oflast year.
In the survey, TSMC (Taiwan Semiconductor Manufacturing Company) ranked the first in the large-sizedenterprises. Sinyi Realty Inc obtained the first prize among the medium-sized enterprises, and the winneramong the foreign enterprises was ING Antai Life Insurance Co.,

4

Global Marketing & Service Network
Netherlands, Moscow,
Amsterdam Russia
Ruesselsheim,
Milton Keynes,
Frankfurt,
London,Germany
UKShanghaiChinaTokyo
Japan

Paris,
FranceTaipei,TaiwanMadrid,Spain
Bangkok ,Thailand

Milpitas,
CAUSA

Subsidiaries and Global Network of Distributors, System
Integrators, VARs, and ODMs Over 75 Countries9

2008-1st Half Financial Results
Amount : US$ k

2008 1st-Half

2007 1st-HalfYoY %Net Sales

75,596100 %

58,732

100 %

29 %

COGS

(40,794)(54)%(32,744)

(56)%

25 %

GP

34,80346 %25,98844 %34 %Operating Expense(23,956)(32)%(16,012)

(27)%

50 %

Operating Income

10,847

14 %

9,976

17 %9%Net Non-op Items

(483)

(1)%

6661%

Income before Tax

10,36414 %

10,64218 %Income Tax Exp. (Ben.)

(261)

(0)%

(463)

(1)%

10,62514 %

11,10519 %Net Income
Fully Diluted EPS(NT$)

1.49

Pre-Tax Net Incomebefore[a. Ex-rate loss 1,259;
b. Staffs’ bonus andremuneration to the Board
members 2,153]

13,776

1.51

18 %

10,357

(3)%
(4)%
(1)%

18 %

33 %

52007 Annual Financial Results
Performance Comparison of 2007 to that of 2006 & 2005
Amount : US$ k2007

20062005

Net Sales

133,641 100 %

104,773

100 %

90,191 100 %COGS(71,113)(53)%(58,874)(56)%(49,806) (55)%GP62,528

47 %

45,89844 %

40,385

Operating Expense(35,375)(26)%(29,965)(29)%(26,769) (30)%

Operating Income

27,15320 %

15,93415 %

13,616

15 %

1,645

1%

1,603

2%

430%

28,79922 %

17,53717 %

13,65915 %(434)

(0)%

1850%

1,1371%

29,23322 %

17,35117 %

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

4.77

3.04

3.00

Sales Grew

28 %16 %3%EPS Grew

57 %1%(2)%45 %Balance sheet highlights
Amount : US$ k

2008-1st Half

2007

2006

Cash & Equivalent

69,58742 %

61,68041 %

54,60141 %Accounts Receivable

22,00013 %17,84912 %

16,92013 %Inventory

17,885

11 %

20,54914 %

13,57310 %L-T Investment

160

0%

160

0%

3,430

3%

Fixed Assets

32,06819 %

29,52320 %

28,43421 %Total Assets

165,377

100 %

149,713100 %133,979

100 %Liabilities

48,20029%

29,48420 %

34,78826 %Equities

117,177

71 %

120,22880 %

99,19274 %

6Key Financial indicators(Before Staffs’ bonus andremuneration to theBoard members)
2008-1st Half

2008-1st Half

2007

2006

2005

ROE

19.61 %

18.13 %

24.31 %

17.24 %

16.82 %

ROA

14.15 %

12.85 %

19.53 %

12.93 %

11.86 %AR Turnover

52 days56 days

57 days

60 daysInventory Turnover

79 days

107 days

86 days

79 days

Debt ratio

29.15 %

20.33 %

25.96 %

29.48 %

2006~08-Q2 Quarterly Revenue/Profit
45,00012,00040,00010,00035,00030,0008,000

25,0006,000
20,00015,0004,000

10,000
2,000
5,000
00
2006-Q1

2006-Q2

2006-Q3

2006-Q4

2007-Q1

2007-Q2

2007-Q3

2007-Q4

2008-Q1

2008-Q2

Amount : US$ k
RevenueAmount : US$ k

Net Income

Net Income Before Bonus

2006-Q1

2006-Q2

2006-Q3

2006-Q4

2007-Q1

2007-Q2

2007-Q3

2007-Q4

Revenue

21,444

23,66029,111

26,35526,49632,236

40,06534,687

2008-Q1
31,267

2008-Q2
44,329Net Income

3,546

2,826

5,500

6,516

5,064

6,041

10,660

7,619

3,531

7,094

Net Income Before Bonus

3,546

2,826

5,500

6,516

5,064

6,041

10,660

7,619

4,294

8,4847

Breakdown of ROE
30.00 %
141.67 %25.00 %

141.81 %133.35 %126.92 %20.00 %
15.00 %

180.00 %154.29 %124.52 %160.00 %140.00 %90.49 %

88.66 %
72.32 %

72.52 %

91.42 %

89.27 %

79.37 %

120.00 %100.00 %80.00 %

10.00 %
22.60 %

17.91 %

12.71 %
5.00 %
0.00 %

141.13 %16.52 %

16.82 %

17.24 %

18.13 %

24.31 %

14.05 %
16.40 %

16.29 %

21.87 %

60.00 %
40.00 %
20.00 %

13.81 %

13.97 %

2002

2003

2004

2005

2006

2007

2008-1stHalf

2002

2003

2004

2005

2006

2007

13.81 %
72.52 %
126.92 %12.71 %

13.97 %
90.49 %
141.67 %17.91 %

16.52 %88.66 %154.29 %22.60 %

16.40 %
72.32 %
141.81 %16.82 %

16.29 %
79.37 %
133.35 %17.24 %

21.87 %
89.27 %
124.52 %24.31 %

Profit / Sales
Sales / Assets
Assets / Net Equity
ROE = Profit / Net Equity

0.00 %

2008-1stHalf
14.05 %
91.42 %
141.13 %18.13 %Break down of ROE (With and Without Stock Bonus)
With Stock Bonus

Without Stock Bonus

2008-1st Half

2008-1st Half

Profit / Sales

14.05 %

Sales / Assets

91.42 %

91.42 %

Assets / Net Equity

141.13 %138.59 %ROE = Profit / Net Equity

18.13 %

19.61 %

100.00 %141.13 %90.00 %
80.00 %
91.42 %
70.00 %
60.00 %
50.00 %
40.00 %
30.00 %
18.13 %
20.00 %
10.00 % 14.05 %0.00 %

2008-1st Half

16.90 %

138.59 %160.00 %140.00 %91.42 %

120.00 %100.00 %80.00 %
60.00 %

19.61 %
16.90 %

40.00 %
20.00 %
0.00 %

2008-1st Half

Profit / Sales

Sales / Assets

Assets / Net Equity

ROE = Profit / Net Equity

8

Dividends distribution
4.77

5
4.5

EPS
Cash
Stock

4
3.5

3.26

3.00

3.04

3
2.34

2.5
2

1.43

1.5 1.02
10.5
02001

2002Year20032004

2005

Cash

2006

Stock2007

Total

2007

2.20

73 %

0.80

27 %

3.00

2006

2.00

85 %

0.365

15 %

2.365

2005

1.37

58 %

1.00

42 %

2.37

2004

1.57

55 %

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

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
189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)

19

ODM solution

Hybrid Mini card

DVB-T Mini cardHybrid Mini PCI

Hybrid ATSC

Hybrid DVB-T

Analog Worldwide

Analog Worldwide

Hybrid DVB-T

DVB-H SDIO

DVB-H Mini card

Analog Worldwide Hybrid DVB-T

ATSC

DVB-T

DVB-T USB

Hybrid PCIe

20

10

MiniPCI TV Tuner card for NB

21

ODM main customers

2211

Analog TV Tuner / PVR
 Watch, Record & Enjoy TV / Video on PC

 Desktop PC Solution

AVerTV (Studio) 503

AVerMedia AVerTV PVR

 Notebook PC Solution

AVerTV Hybrid Express Slim

AVerTV USB MCE

Express Tuner Card

USB TV Tuner,
H/W compression

High-Quality TV Tuner Card TV Tuner Card, H/W compression

23

Hybrid TV Tuner Card
 Watch Digital Terrestrial and Analog TV on PC

USB Solution
Analog TV

EXPress Card Solution

DVB-T

CardBus Solution

VCD\DVD Player

24

PCI Solution

12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).

25

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
26

13

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.

27

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

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

 Watch Analog TV / Video on PC Monitor

AVerTV DVI Box9
TV/Video viewing w/ highdefinition 1920x1200（WUXGA）
TV Box2814

Portable Document Camera 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 ZOOM

Portable Gooseneck

Portable Mechanical Arm

Portable Dual Arm

Platform DocCam• AVerVision CP130• AVerVision CP150• AVerVision CP300• AVerVision300e• AVerVision300AF• AVerVision SPC300• AVerVision530

29

AVerVision Business Outlook• Top 3 document camera brand worldwide• Reap major market shares in USA, South Asia, and many key countriesin Europe• Offer most complete product line in the market from portable toplatform• Has delivered double digit growth for consecutive 6 years

15Document Camera Applications

31

Top 10 wish list as selected byAmericans in education field

32

16

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

Standalone DVRs – PC base

33

AVerDigi Surveillance
AVerDiGi EB1704Hybrid

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

digital video recorder w/network access

DVR

Standalone DVRs

AVerDiGi EB1304 MOB
4CH Mobile DVR
34

Mobile DVRs17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.

35

Internal organization capability
Multimedia
Product•Culture•Technology•BrandNetwork VideoProductPresentation
Product

Growth Drivers

36

18

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

37

Technology– Video conversion between analog and digital– Leading technology for TV tuners in the fieldof Notebook PCs– Patents : 124 of patents being granted, 242 ofpatents application in the process•Culture– Product awards•Technology•Brand38

19

Brand• MultiMedia products: Brand premium in certain
geographical areas, like Spain, Russia and East
Europe 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•Brand
39

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.

4020

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.

41

Q&A

21