Corporate Profile
S e p t e m b e r, 2007

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

 Annual Turnover (2006): US$ 104.9 Million

 Consecutive profitable years: 16.5 years

 Consecutive profitable quarters: 66 quarters

 Employees (AVerMedia Group): 946

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

Updated on Sep. 2007

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 research and development,
product quality, branding strategy, and branding achievement.

AVerMedia Wins 2007 Corporate
Social Responsibility Award

3

Global Marketing & Service Network
Milton Keynes,London,
UK

Ruesselsheim,
Frankfurt,
Germany

Paris,
FranceKun ShanShanghai
China

Madrid,Spain

Taipei,TaiwanBangkok ,Thailand

Milpitas,
CAUSA

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

5

2007 1st Half Financial Results, YoY
Amount : US$ k2007 1st-H

Net Sales

58,732100 %46,503100 %26 %COGS(32,744)(56)%(26,116)

(56)%

25 %

GP

25,98844 %

20,38744 %27 %Operating Expense(16,012)(27)%(15,366)

(33)%

4%

Operating Income

9,976

17 %

5,021

11 %

99 %

666

1%

296

1%

10,642

18 %

5,318

11 %

(463)

(1)%

(517)

(1)%

11,105

19 %

5,835

13 %

Net Non-op Items
Income before Tax
Income Tax Exp.
(Ben.)Net Income
Fully Diluted
EPS(NT$)

1.83

2006 1st-H

1.06

YoY %

100 %

90 %
73 %
6

Balance sheet highlights
Amount : US$ k

2007 1st H.

2006

2005

Cash & Equivalent

52,84839 %54,601

41 %

61,35449 %Accounts
Receivable

18,382

13 %

16,92013 %14,757

12 %Inventory

16,185

12 %

13,57310 %10,867

9%

L-T Investment

160

0%

3,430

3%

865

1%

Fixed Assets

27,52820 %

28,43421 %

20,69517 %Total Assets

137,262100 %

133,979

100 %

124,705

100 %Liabilities

37,11127 %

34,78826 %

36,76529 %Equities

100,15173 %

99,19274 %

87,94071 %Full consolidated base

7

Key Financial indicators
2007
1st-H.

2006

2005

2004

ROE

22.38 %

17.24 %

16.82 %

22.60 %

ROA

16.33 %

12.93 %

11.86 %

14.65 %AR Turnover

57 days

57 days

60 days

42 daysInventory
Turnover89 days86 days

79 days

74 days

Debt ratio

27.04 %

25.96 %

29.48 %

40.67 %
8

2005~07-2Q Quarterly Revenue/Profit
35,00030,00025,00020,00015,00010,000
5,000
0

8,000
6,000
4,000
2,000
0123423421
120 05 -Q 20 05 -Q 20 05 -Q 20 05 -Q 20 06 -Q 20 06 -Q 20 06 -Q 20 06 -Q 20 07 -Q 20 07 -Q

Amount : US$ k
Amount : US$ k

Revenue
2005-Q3

2005-Q4Net Income

2005-Q1

2005-Q2

2006-Q1

2006-Q2

2006-Q3

2006-Q4

2007-Q1

2007-Q2

Revenue

21,21917,14622,14029,686

21,444

23,66029,111

26,35526,49632,236Net Income

3,150

1,780

3,636

6,230

3,546

2,826

5,500

6,516

5,064

6,041

9

Breakdown of ROE
25.00 %

180.00 %154.29 %141.67 %141.81 %15.00 %

90.49 %

12.71 %
5.00 %

85.58 %

79.37 %

22.60 %

17.24 %

16.82 %
16.52 %

13.81 %

120.00 %72.32 %

17.91 %

160.00 %140.00 %88.66 %

72.52 %
10.00 %

137.05 %133.35 %126.92 %20.00 %

22.38 %
19.08 %

16.40 %

16.29 %

13.97 %

100.00 %80.00 %
60.00 %
40.00 %
20.00 %
0.00 %

0.00 %

2002

2003

2004

2005

2006

2007-1st.H

ROE = Profit / Net Equity

Profit / Sales

Assets / Net Equity

Assets / Net Equity

2002

2003

2004

2005

2006

2007
1st.H

Profit / Sales

13.81 %

13.97 %

16.52 %

16.40 %

16.29 %

19.08 %

Sales / Assets

72.52 %

90.49 %

88.66 %

72.32 %

79.37 %

85.58 %

Assets / Net Equity

126.92 %141.67 %154.29 %141.81 %133.35 %137.05 %ROE = Profit / Net Equity

12.71 %

17.91 %

22.60 %

16.82 %

17.24 %22.38 %10

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
0

2001

2002

Year2003

2004

Cash2005

2006

StockTotal

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

11

Revenue evolution
120,000
100,000

104,932

CAGR : 21.73%
87,45280,00090,191

74,20060,00040,00047,78820,00002002
Amount : US$ k2003

20042005

2006

Net Sales

Amount :US$ k2002

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(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% of attachment rate of
TV Tuner in Notebook PCs except Japan)

15

Notebook demands
Business ()Home ()

16

ODM solution

Hybrid Mini card

DVB-T Mini cardHybrid Mini PCI

Hybrid ATSC

Hybrid DVB-T

Analog Worldwide

DVB-H SDIO

DVB-H Mini card

Analog Worldwide Hybrid DVB-T

ATSC

Hybrid PCIe

DVB-TAnalog Worldwide

DVB-T USB

17Hybrid DVB-T

MiniPCI TV Tuner card for NB

18

ODM main customers

19Sony 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

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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

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

Digital TV Broadcasting Standard
Terrestrial Cable

Satellite

Deadline ofAnalog TV
Terminated

USA

ATSC

Open Cable DSS, DVB-S 2008

Europe

DVB-T

DVB-C

DVB-S

2010-2015

Japan

ISDB-T

DVB-C

DVB-S

2010

Taiwan

DVB-T

DVB-C

DVB-S

2008

26

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 Player27

PCI SolutionViiv & 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)

VSanta Rosa

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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.

30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 Box

31

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 DocCamw/Optical Zoom, Smart Focus

AVerVision530
Digital Platform DocCam

32

DocCam Application

33

Top 10 wish list as selected byAmericans in education field

34

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

35

AVerDigi Surveillance
AVerDiGi EB1704Hybrid

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

digital video recorder w/network access

DVR

Standalone DVRs

36

Surveillance Application

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

37

Internal organization capability
Multimedia
Product•Culture•Technology•BrandNetwork Video
ProductPresentation
Product

Growth Drivers

38

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 field ofNotebook PCs– Patents : 93 of patents being granted, 234 of patents
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•Brand
41

Presentation Products Potential market size• No statistic data investigating the market sizeof DocCam.
– Number of schools: the maximum market size can bederived 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 andeach classroom shall install 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.

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