AVerMedia
Corporate ProfileAug. 2009
ByMoses Lee

1

AVerMedia Group Overview
Founded in 1990, Specializing in Designing, Manufacturingand Marketing of Multimedia Entertainment(MPD),Presentation(PPD) and Digital Surveillance Products(NVD).

 Annual Turnover (2008 ): US$ 148.1 Million

 Consecutive profitable quarters: 72 quarters Plus Employees (AVerMedia Group): 1193

 RD Engineers (AVerMedia Group): 395

 Branding / ODM: 70% / 30%

AVerMedia Group includes AVerMedia Technologies Inc., AVerMediaInformation Inc., and all of the oversea affiliates.
Updated on July, 2009

Exchange Rate: 1:33 (US$:NT$)

2Revenue (1990-2008)
NT$Million
1990 – 2008 CAGR: 45.86%
2000 – 2008 CAGR: 19.37%
2005 – 2008 CAGR: 14.07%

3consolidated

Product Awards

2009 CES Best ofInnovations Award

The CES award
announcement wasdisplayed on the TV
wall of Time Square in
N.Y.

5Global Marketing & Service Network
Netherlands,
Amsterdam
Milton Keynes,
London,UK

Moscow, Ruesselsheim,
RussiaFrankfurt,
Germany
Shanghai
China
Tokyo
Japan

Paris,
FranceTaipei,TaiwanMadrid,Spain
Bangkok ,Thailand

Milpitas,
CAUSA

10 Overseas offices and Global Network of Distributors, System Integrators,
VARs, and ODMs Over 75 Countries

6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.
 Certificate of Sony Green Partner

7

New Office/Factory of AVerMedia

8

2009- Q1 Financial Results

2008- Annual Financial Results

3 Years Income Statement

11Balance sheet highlights-Q1

Key Financial indicators-Q1

2006~09-Q1 Quarterly Revenue/Profit

Breakdown of ROE-Q1

Dividends distribution
4.77

5EPSCashStock

4.5
43.53.26

3.00

3.4

3.04

3
2.34

2.5
2

1.43

1.5 1.02
10.502001

2002

2003

Year

2004

2005

Cash2006

2007

Stock2008

Total

2008

2.40

96 %

0.10

4%

2.50

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

16

Internal organization capability
Multimedia
ProductNetworkVideo

Presentation
Product

Technology

Product

Products
Brand

Growth Drivers

17TechnologyTechnology
Products

Brand– Video conversion between analogand digital– Leading technology for embedded TV tuners in thefield of Notebook PCs– Patents : 138 patents have been granted, while 247
patents are still in the process.
– Product awards

18

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

TechnologyProductsBrand

Presentation Product- Document Camera
Network Video Product- Digital Video Surveillance19Hybrid TV Tuner Card
 Watch Digital Terrestrial and Analog TV on PCTechnologyProductsBrandUSB Solution
Analog TV

EXPress Card Solution

CardBus Solution
DVB-T

VCD\DVD Player

PCI Solution20

External marketing trend• Multimedia Products– Strong demand in Notebook PCs: annual demand of around
140 million sets ( less than 2% of attachment rate of TV Tunerin Notebook PCs except Japan)

21Windows 7 & Media Center TV pack 2008••••

Microsoft will launch Windows 7 at 3Q of 2009.
Windows 7 includes Windows Media Center TV pack 2008 features
MCE TV Pack 2008 support Worldwide TV tuner solutions
AVerMedia is listed Windows Media Center PBDA (Protected Broadcast DriverArchitecture) Partners that announced at IBC 2008.

22

Windows OS vs PC Shipment

Vista VersionPrice (Est.)

Windows 7 Home Starter

TV Function(MCE TVPack)

Upgrade toTV Function

XVVWindows 7 Home Basic

$ 200

X

Windows 7 Home Premium

$ 260

V

Windows 7 Professional

$ 300

V

Windows 7 Ultimate

$ 320

V23

PC/TV Strategies- 3 Phases• How to enable PC/TV to penetrate into main stream
market, the same as wireless/camera modules in PC
plate form:
1) Incorporate PC/TV spec into PC standard through coalliance with Microsoft and Intel.
2) Leverage marketing power thru first tier PC international
brand players to increase the PC/TV awareness to endusers.
3) Lower down the price of PC/TV to push it to the mainstream market by activating the virtuous circle ofsupply/demand for larger economy scale with lower
prices offering by vendors of key components.
24How SnugTV works?
Internet

SNUG TV
Management Server

ADSL/CABLE Modem
3G/ InternetRouter/ Hub

SNUG TV Portal

LAN

PC + TV Card++SnugTV Station

Home PC User

Internet

Remote PC User

Mobile phone User
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SnugTV Business Blueprint
Service Bundle

Content
Operator

Broadband
Operator

Terrestrial/ Cable/Satellite

ISPfor Station

IPTV

3G/ Wimaxfor Client

Product Bundle

Website ServiceDirect Sell
Video on Demand(by 3rd Party)
Advertisement(by 3rd Party)

PhysicalChannel

ODM

OBM

Media ServerMini-PC

Tuner Product+SnugTV Station

TV Card/USB/ Box

SnugTV Boxe-commerce

26

SnugTV Benefit to AVerMedia• New revenue stream• Create add-on value to OBM/ODM customers– Bundle promotion and cross selling• Membership service to improve customer relationshipand new product marketing• Shift from device maker to “Watching TV” solution
provider.
– Device+Service & ATV+DTV+IPTV
27

Live TV – Station in Russia

28Live TV – Station in China

29

Live TV – Station in Taiwan30

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

31

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

32Document Camera Applications

33

Document Camera Business Potential• A huge market potential with double digit annual growth rate
• Vision:• Long-term:

Equip every classroom a document camera• Singapore: classroom attached rate around 90%• Short-term:

Build up at least one multi-media classroom in every school with adocument camera

34

Reports indicate the trends
TOP 1
The Multimedia Classroom
LCD projectors, interactive white boards, document
cameras, and other display technologies are beginning tochange the face of today’s classroom.
Source： Technology & Learning November 15, 2005

Report of the Teaching andLearning in 2020 Review GroupThe new technologies have an impact on a school in three mainareas:• …
• the creation and delivery of lesson materials, including teachers’
and pupils’ use of whiteboards, visualizers, handheld voting
devices and tablet PCs to enable reproduction of and access toresources• …
Source：Report of the Teaching and Learning in 2020 Review Group, 2006

35

Educational Budget Growth %36

37

AVerPen Product Concept• Group learning tool:
Innovative multiple and simultaneous input device• Multiple features in 1 package:
Less SW / HW to learn, lower learning curve• Many tools in 1 package:
Cost-effective solution for the 21st century classroom•Integrates with existing classroom technologies:

Such as PC, doc cam•Wireless:Write from anywhere38

AVerPen setup
Wireless . 2.4G RFPower adapter

RGB

USB

USB

Wireless . 2.4G RF

Teacher’s
AVerPen
RGB

Student’s AVerPen

39

Main function introduction
Optical Pen Mouse

Student response/Presenterbuttons

Mouse Right-click button
40

2009 product applicationTarget•Countries implement group learning•Classrooms sitting in groups•Class size < = 40 students•Student age from yr11 ~ yr13 / yr14 ~ yr17
•Teachers who have experience with doc cam, IWB or PC•Classrooms looking for wireless slate / IWB + wireless slate / IWB + SRS

41

AVerDiGi SurveillanceStandalone DVRs
AVerDiGi SA9000E Pro- Advanced 16 Ch. hybrid embedded DVR with video
loop out ports.

AVerDiGi SA6032E RACK- 16CH~32CH Hybrid and Real-Time Standalone NVR

Windows DVRs
AVerDiGi NV9000E

AVerDiGi NV8416 E4-16CH D1 Real-Time h/w
compress Hybrid DVR
Solution-World's No.1 PCI-e x 4 interface
capture card for faster data
streaming

AVerDiGi NV6480 Express-Single 16 Ch. DVR PCI Express,
480fps display/recording

AVerDiGi NV5000-Up to 16 Ch.,120~240fps
display/recording, remotemonitoring via internet or PDA

42

AVerDiGi Surveillance
Embedded DVRs
AVerDiGi EB1704HB WiFi-4/ WiFi-4 LITE
- 4CH Embedded Hybrid NVR which can support
both IP and Analog cameras

AVerDiGi EB1304NET SATA
- 4CH Light Weight Standalone
DVR

AVerDiGi EH5116 Pro- The First 16CH Full Functional Embedded
Hybrid DVR in The World

AVerDiGi SEB5116- Super slim 16CH embedded real-time DVRwith GUI43

AVerDigi Surveillance
AVerDiGi EB1704Hybrid

AVerDiGi EB1304NET- 4 Ch. standalone security

DVR

digital video recorder w/network access- 4CH Multiplex Networking

Standalone DVRs

AVerDiGi EB1304 MOB
4CH Mobile DVR
44

Mobile DVRs

Surveillance Application

The AVerDiGi Central Monitoring System Software (CM3000)enables users to access andmonitor 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 for45
alarm events, up to quad monitor outputs, full remote DVR control, etc.

Brand• Multimedia products:
Brand premium in certain geographicalareas, like Spain, Russia and East Europe etc.

TechnologyProductsBrand• Document Camera:
Distinguished as one of the first movers with strong
presence in K-12. Education market in the U.S. ,UK, Singapore etc. with brand recognition
inherited from the glamour of previous productlines.
46

AVerMedia Culture• Core Value– Down-to-Earth– Value Creation– Self- Devotion– Service to Society• Humanity based- Self -awareness / Self Transcendence / Honesty &Integrity• Excellence in Corporate Social Responsibility– Not only to donate money, we physically contribute ourselves by offering ourhelp to those who really need.
– Earth protection and environmental friendly activities under worldwide basis.
47

Volunteers in AVerMedia

After-class accompanied study to those children from lower income family weekly

Volunteer for story telling team48

Clean up the World since 2002

49

2008 Charity Activities in Taiwan

We clean up the Mountain

We Donate Blood

We sponsor NPO EventBeach cleaning

We Donate Money, Clothes, Toys, Books
50

Buy the tea for helping Aboriginies2008 US Office charity activities

Making Strides Against Breast Cancer

AVerMedia Scholarshipon October 25th in San Joseto make the environment a better place andis conscious about its corporate practices.

Each month, employees donate theirtime to read and interact with children
at the San Jose Innvision
women’s shelter.

California’s Coastal Clean-Up Day

51

2008 Thailand Office charity activities

Mangrove Restoration
800 Seedlings were planted by AVerMedia Thai.

Blind School Donation

Donated AVerVision130 to the Rural Schools

Blood Donation52

2008 EU Office charity activities
Pupils have lots of fun interacting withstaff at Fairfields Special School53

2009123452008
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Medium-Sized Enterprises
Sinyi Realty Inc.
Everlight Chemical Industrial
Hiwin Technologies
ZyXEL Communications Corp.
PLANET Technology Corporation.
Phoenix Precision TechnologyCorporation
Advantech Co.
AVerMedia Technologies
ATEN International Co., Ltd.
Makalot Industrial

AVerMedia is ranked Taiwan’s Top 50 Corporate Citizens for three years
in a row by CommonWealth Magazine.

54

Q&AThank you
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