Corporate Profile
N o v e m b e r, 2 0 0 7

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
Paris,
Milton Keynes, FranceLondon,
UK

Moscow,
RussiaRuesselsheim,
Frankfurt,
Germany

SuZhouChina

Taipei,TaiwanMadrid,
Spain
Bangkok ,Thailand

Milpitas,
CAUSA

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

52007 3rd Quarter Financial Results, YoY
Amount : US$ k

2007 3rd-Q

Net Sales

98,797100 %

75,865

100 %

30 %

COGS

(53,798)(54)%(42,805)

(56)%

26 %

GP

44,99946 %33,06044 %36 %Operating Expenses(24,796)(25)%(22,848)

(30)%

9%

Operating Income

20,20420 %

10,212

13 %

98 %

4020%

1,019

1%

Income before Tax

20,60521 %

11,231

15 %Income Tax Exp. (Ben.)(1,160)

(1)%

(651)

(1)%

21,76522 %

11,88316 %Net Non-op Items

Net Income
Fully Diluted EPS(NT$)

3.55

2006 3rd-Q

1.96

YoY %

83 %
83 %
81 %

Balance sheet highlights
Amount : US$ k

2007 3rd Q.

Cash &Equivalent

52,50036 %54,60141 %

61,35449 %Accounts
Receivable

25,97218 %

16,92013 %14,757

12 %Inventory

21,85915 %

13,57310 %10,867

9%

L-T Investment

2,5822%

3,430

3%

865

1%

Fixed Assets

27,41919 %

28,43421 %

20,69517 %Total Assets

145,817 100 %133,979 100 %124,705

100 %Liabilities

36,50725 %

34,78826 %

36,76529 %Equities

109,31075 %

99,19274 %

87,94071 %Full consolidated base

2006

2005

Key Financial indicators2007 3rd-Q.
(YTD)

2006

2005

2004

ROE

26.55 %

17.24 %

16.82 %

22.60 %

ROA

19.90 %

12.93 %

11.86 %

14.65 %AR Turnover

64 days

57 days

60 days

42 daysInventory Turnover

101 days

86 days

79 days

74 days

Debt ratio

25.04 %

25.96 %

29.48 %

40.67 %

2005~07-3Q Quarterly Revenue/Profit
45,00040,00035,00030,00025,00020,00015,00010,0005,000
012,000
Amount : US$ k

10,000
8,000
6,000
4,000
2,00002005-Q1 2005-Q2 2005-Q3 2005-Q4 2006-Q1 2006-Q2 2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3
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

Revenue

21,21917,14622,14029,686

21,444

23,66029,111

26,35526,49632,236

40,065Net Income

3,150

1,780

3,636

6,230

3,546

2,826

5,500

6,516

5,064

6,041

10,660Breakdown of ROE
30.00 %
25.00 %

141.67 %126.92 %20.00 %

72.32 %

72.52 %

10.00 %

0.00 %

22.60 %

17.91 %

12.71 %

141.81 %133.35 %88.66 %

90.49 %

15.00 %

5.00 %

154.29 %13.81 %

13.97 %

16.52 %

2002

2003

2004

16.82 %

79.37 %
17.24 %

16.40 %

16.29 %

2005

2006

ROE = Profit / Net Equity
Assets / Net Equity

133.40 %90.34 %
26.55 %
22.03 %

180.00 %160.00 %140.00 %120.00 %100.00 %80.00 %
60.00 %
40.00 %
20.00 %
0.00 %

2007-3rd.Q

Profit / Sales
Assets / Net Equity

2002

2003

2004

2005

2006

20073rd.Q

Profit / Sales

13.81 %

13.97 %

16.52 %

16.40 %

16.29 %

22.03 %

Sales / Assets

72.52 %

90.49 %

88.66 %

72.32 %

79.37 %

90.34 %

Assets / Net
Equity126.92 %141.67 %154.29 %141.81 %133.35 %133.40 %ROE = Profit / Net
Equity12.71 %

17.91 %

22.60 %

16.82 %

17.24 %

26.55 %

Dividends distribution
3.26

3.5

3.00

EPS
Cash
Stock

3
2.5

3.05

2.34

2
1.5

1.43
1.02

10.5
02001

2002

Year

2003

2004

Cash

2005

Stock

2006

Total

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

0.7944 %

0.99

56 %

1.78

2001

0.51

50 %

0.51

50 %

1.02

120,000
100,000

Revenue evolution
104,932

CAGR : 21.73%
87,45280,00090,191

74,20060,00040,00047,78820,0000

2002
Amount : US$ k

2003

2004

2005

2006

Net Sales

Amount :US$ k

2002

2003

2004

2005

2006

Net Sales

47,78874,20087,452

90,191

104,932

Compound Annual Growth Rate : 21.73 %12

R&D Expenditures
12,000CAGR : 21.89%

10,000

10,310 9,903
8,448

8,000

6,392

6,000

4,487

4,000
2,000
0
Amount :US$ k

2002

2003

2004

2005

2006

Amount : US$ k

2002

2003

2004

2005

2006

R&D Expenditures

4,487

6,392

8,448

10,3109,903

Compound Annual Growth Rate : 21.89%
13

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 of 75 million sets ( less than 2% ofattachment rate of TV Tuner in Notebook PCs
except Japan)

15Notebook demands
Business ()Home ()16

ODM solution

Hybrid Mini cardHybrid Mini PCI

Hybrid DVB-TAnalog Worldwide

DVB-T Mini cardHybrid ATSC

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

17

MiniPCI TV Tuner card for NB

18

ODM main customers

19Sony Notebook TV inside

20

Sony Desktop TV inside

RB Series - HomeLS1 Series - Home21

http://event.asus.com/2006/nb/fullline/mobiletv/eng/
22acer Aspire TV Inside

Aspire 9800/9810

Aspire 9520

Aspire 5650/5670

Aspire 9120

23

DELL Desktop

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

 Desktop PC Solution

AVerTV (Studio) 503

AVerMedia AVerTV PVRHigh-Quality TV Tuner Card TV Tuner Card, H/W compression

 Notebook PC Solution

AVerTV Hybrid Express Slim

AVerTV USB MCE

Express Tuner Card

USB TV Tuner,
H/W compression

25

Deadline of the digital TV broadcasting
Emerging digital TV broadcasting in the forthcoming years.
Area

Digital TV Broadcasting Standard
Terrestrial Cable

USA

ATSC

Satellite

Deadline ofAnalog TV
Broadcasting
TerminatedOpen Cable DSS, DVB-S 2009

Europe DVB-T

DVB-C

DVB-S

2010-2015

JapanISDB-T

DVB-C

DVB-S

2010

Taiwan DVB-T

DVB-C

DVB-S

2008

26

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

USB SolutionAnalog TV

EXPress Card Solution

DVB-T

CardBus Solution

VCD\DVD Player27

PCI Solution

Viiv & Windows Vista••

Microsoft will launch 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).

28

Windows OS vs PC Shipment

Vista VersionPriceTV Function

Windows Vista Business$ 299 (199)

X

Windows Vista Enterprisenot available for retail

X

Windows Vista Home Premium$ 239 (159)

V

Windows Vista Home Basic$ 199 ( 99)X

Windows Vista Ultimate$ 399 (259)V

Santa Rosa

29

Watch DVBDVB-H TV Solution

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

30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 MonitorAVerTV DVI Box9
TV/Video viewing w/ highdefinition 1920x1200（WUXGA）
TV Box31

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 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 DocCam32

Document Camera Applications

33

Top 10 wish list as selected byAmericans in education field34

為了協助保護您的隱私權， PowerPoint 無法自動下載此外部圖片。若要下載並顯示此圖片，請按一下訊息列的 [選項 ]，然後按一下 [啟用] 外部內容。

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

35

Standalone DVRs – PC baseAVerDigi Surveillance
AVerDiGi EB1704Hybrid

AVerDiGi EB1304NET

digital video recorder w/network accessDVR- 4 Ch. standalone security- 4CH Multiplex Networking

Standalone DVRs

AVerDiGi EB1304 MOB
4CH Mobile DVR
36

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.

37

Internal organization capability
Multimedia
Product•Culture•Technology•BrandNetwork VideoProductPresentation
ProductGrowth Drivers38

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

39

Technology– Video conversion between analog and digital– Leading technology for TV tuners in the fieldof Notebook PCs– Patents : 93 of patents being granted, 234 ofpatents application in the process•Culture– Product awards•Technology•Brand40

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•Brand41

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-12schools 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.

42

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.

43