AVerMedia
Corporate Profile

June. 2011
By Moses Lee
1

AVerMedia Group Overview
Founded in 1990, Specializing in Designing, Manufacturing andMarketing of Multimedia Entertainment Product (MPD), Consumer
Electronics Product (CED) 、IPTV Product (IPD) , Presentation
Product (PPD) , Digital Surveillance Products(NVD), Consumer
Electronics Product (CPD) and Manufacturing (AVE).
 2010 Annual Turnover (AVerMedia Group): US$ 183.74 Million(AVT): US$ 90.19 Million
 Consecutive profitable years: 20 years

 Employees (AVerMedia Group): 600(1298)

 RD Engineers (AVerMedia Group): 187(425)

AVerMedia Group includes AVerMedia Technologies Inc., AVerMediaInformation Inc., and all of the oversea affiliates.
Updated on June. 2011
Exchange Rate: 1:32 (US$:NT$)2

[Consolidated Sales Revenue] by year from 1990 to 2010
7,000.00 M

CAGR 41.92%
6,000.00 M

5,000.00 M

4,000.00 M

3,000.00 M

2,000.00 M

1,000.00 M

0.00 M

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Consolidated Sales Revenue 3.75 23.41 78.24 138.01 252.37 425.31 568.76 770.12 760.72 902.10 993.25 1,144. 1,529. 2,374. 2,798. 2,886. 3,352. 4,276. 4,932. 4,913. 5,847.

Unit: NTD$ Million

3 Years Consolidated Income Statement
Amount : US$ k
Net Sales
COGS
GP
Operating Expense
Operating Income
Net Non-op Items
Income before Tax
Income Tax
Minority Interest
Net Income
Fully Diluted EPS(NT$)
Sales Grew
Exchange Rate: 1:32 (US$:NT$)

2011Q1

2010Q1

2009Q1

30,525 100 %(15,819) (52)%
14,706 48 %(13,620) (45)%3%
1,087
4,756 16 %
5,843 19 %
2%
737
4%
1,085

49,919 100 %(24,995) (50)%24,925 50 %(16,349) (33)%8,576 17 %
12,794 26 %
21,370 43 %
5%
2,435
3%
1,584

36,103 100 %(18,567) (51)%
17,536 49 %(12,090) (33)%5,445 16 %
1%511
5,956 17 %
1%
221
1%
388

4,021
0.57
-39 %

13 %

17,351
2.51
38%

35 %

5,347
0.78
15 %

15 %

Key Financial indicators
2011Q1

2010Q1

2009Q1ROE

8.44 %

39.13 %

16.19 %

ROA

6.58 %

29.49 %

12.33 %AR Turnover

52 days

55 days

45 daysInventory
Turnover78 days86 days

74 days

Debt ratio

21.98 %

24.63 %

23.80 %

Balance sheet highlights
Amount : US$ k

2011Q1

2010Q1

2009Q1

Cash & Equivalent

111,941

46 %

98,51742 %

65,05338 %Accounts
Receivable

17,417

7%

30,117

13 %

17,736

10 %Inventory

13,484

6%

23,45510 %15,146

9%

Fixed Assets

56,54023 %40,59717 %

40,49123 %Other Assets

44,89518 %

42,63518 %

34,97420 %Total Assets

244,277

100 % 235,322

100 %

173,400

100 %Liabilities

53,702

22 %

57,95425 %

41,26924 %Equities

190,576

78 % 177,368

75 %

132,130

76 %Exchange Rate: 1:32 (US$:NT$)

2008~10 Quarterly Revenue/Profit
55,00050,00045,00040,00035,00030,00025,00020,00015,00010,0005,000
020,00018,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

Amount : US$ k

RevenueAmount : US$
2008-Q1k

2008-Q2

2008-Q3 2008-Q4

2009-Q1

2009-Q2

Net Income

2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1

Revenue

31,26740,431

38,99240,01836,10334,241

37,59145,60349,91945,94649,52538,34530,525Net Income

3,531

6,547

5,599

5,280

5,347

7,212

6,524

5,936

17,351

2,351

8,711

9,391

4,021

Exchange Rate: 1:32 (US$:NT$)
Note 1 : 2011 Q1 and 2010 Q1 recognized gain (after 10% tax) on disposal of AVI shares USD$3,350K and USD$11,949K respectively.
Note 2 : 2010 Q2 adjusted for deferred income tax of USD$3,037K.

3 Years Consolidated Income Statement
Amount : US$ k
Net Sales
COGS
GP
Operating Expense
Operating Income
Net Non-op Items
Income before Tax
Income Tax(Ben.)
Minority Interest
Net Income
Fully Diluted EPS(NT$)
Sales Grew
Exchange Rate: 1:32 (US$:NT$)

2010

2009

2008

183,736 100 %(88,091) (48)%95,645 52 %(62,620) (34)%33,025 18 %
11,635
6%
44,660 24 %
7,236
4%
6,168
3%

153,538 100 %(77,559) (51)%75,979 49 %
(51,374) (33)%
24,605 16 %9,122
6%
33,727 22 %
3,936
3%
4,772
3%

154,253 100 %(83,300) (53)%70,953 47 %(47,578) (32)%23,375 15 %
2,666 2 %26,041 17 %2,877 2 %0 0%31,25625,01923,164 15 %

4.49
20 %

17 %

3.64
(0)%

16 %

3.34
15 %

Breakdown of ROE
30.00 %
25.00 %

180.00 %154.29 %141.67 %141.81 %133.35 %134.33 %124.52 %129.52 %128.61 %140.00 %20.00 %

120.00 %90.49 %

88.66 %

79.37 %

72.32 %

15.00 %

90.83 %

89.27 %

78.28 %

77.49 %

100.00 %80.00 %

10.00 %
5.00 %

160.00 %60.00 %
17.91 %

22.60 %

16.82 %

17.24 %

24.44 %

13.97 %

16.52 %

16.40 %

16.29 %

21.99 %

16.35 %

18.32 %
15.02 %

0.00 %

2003

2004

ROE = Profit / Net Equity

2005

2006
Profit / Sales

2007

2008
Sales / Assets

17.13 %

16.30 %

17.01 %

40.00 %
20.00 %
0.00 %

20092010
Assets / Net Equity

Profit / Sales
Sales / Assets
Assets / Net Equity

2003
13.97 %
90.49 %
141.67 %2004
16.52 %
88.66 %
154.29 %2005
16.40 %
72.32 %
141.81 %2006
16.29 %
79.37 %
133.35 %2007
21.99 %
89.27 %
124.52 %2008
15.02 %
90.83 %
134.33 %

2009

2010

16.30 %
77.49 %

17.01 %
78.28 %
128.61 %17.13 %

129.52 %ROE = Profit / Net Equity

17.91 %

22.60 %

16.82 %

17.24 %

24.44 %

18.32 %

16.35 %

Dividends distribution
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

Amount : NT$

EPS

4.77

4.49

Cash
3.26
Stock
1.02

2001

3.64

3.34

3.00

3.04

2005

2006

2.34

1.43

2002

2003

Year

2004

2007

Cash

2008

Stock

2009

2010
Total

2010

3.156

100%

0

0%

3.156

2009

2.70

100%

0

0%

2.70

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

Corporate Governance• AVerMedia announced it received “CG6005: Corporate
Governance System Evaluation Certificate” from
Corporate Governance Association in Taiwan (TCGA)• Information Transparency and Disclosure Ranking
Results in Taiwan– AVerMedia was ranked as “Grade A+” in 2008 and 2009
– 2008, in the 1,118 listed companies of TWSE and GTSM, only 37
companies were ranked as “Grade A+”– 2009, in the 1,154 listed companies of TWSE and GTSM, only 35
companies were ranked as “Grade A+”

11

AVerMedia Receives the 21th National Quality Award

National Quality Award is the highest national honor granted on quality; the mission
is: 'to establish a highest quality control paragon for corporations and organizations
to study and learn from, also through the review process, the quality control
standard will be referential to corporations and organizations on strengthening theorganizations and enhancing competitiveness.

2010 Outstanding IT Talent Award &Application Award

AVerTV TwinStar

AVerMedia has once again proved its dedication in Information Technology forEntertainment and Education by receiving the Outstanding Product andApplication Award , AVer3D Capture HD (3D TV card with HD capture) , SUNGTV(IP TV solution) and AVerVision Visualizer, from 2009 Taipei IT Month. 』

AVerMedia Group

AVerMedia Receives the Outstanding Enterprise Innovation Award

AVerMedia has stood out from some 100 well-known companies in Taiwan andgarnered the 18th (2010) Excellent Enterprise Innovation Award, also known as “TheTechnology Oscars”, hosted by Taiwan’s Ministry of Economic Affairs. The Excellent
Enterprise Innovation Award is given to honor companies which are rigorously
involved in industrial innovation, and has an overall outstanding performance.
AVerMedia GroupProduct Awards

2010 2009

Company

Aggregate

Corporate
GovernanceSocialEngagement

SocialEngagement

Environmental
Protection

9.21
8.19
8.03

9.6
7.5
7.2

9.3
8.9
8.7

9.2
8.7
8.0

8.8
7.8
8.2

7.94
7.94
7.75
7.61
7.26

7.5
7.9
7.0
7.7
6.7

7.9
7.8
8.3
7.4
6.5

7.7
8.1
7.7
8.5
7.3

8.6
7.9
8.0
6.8
8.5

1
2
3

1
3
2

4
4
6
7
8

5
8
-

Sinyi Realty Inc.
Hiwin Technologies
Everlight Chemical
Industrial
TXC Corporation
Planet Technology
Inventec Besta Co.
AVerMedia
China Hi-ment Corp.

99

ATEN International

7.08

6.7

7.0

8.1

6.5

10

-

Tainan Enterprises Co.

7.03

5.8

7.8

8.6

6.0
16

Global Marketing & Service Network
Netherlands
Operation
CenterUK
OfficeFrenchOfficeRussiaOfficeChina
OfficeJapan
OfficeTaipei,TaiwanSpain
Office

Italy
OfficeThailand
OfficeUSA
OfficeSubsidiaries and Global Network of Distributors, System Integrators, VARs, and ODMs
Over 75 Countries

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

18

New Office/Factory of AVerMediaNew Tucheng plant groundbreaking ceremony was held in August of
2009 and will be completed by second half of 201119

Internal Organization Capability

Technology

Products
Brand

Technology

Technology
Products
Brand– Video conversion between analog and digital– Digital/ analog TV standard integration– Digital Video Streaming– Mechanical, optical and electronic integration technology– Hardware, Software and Firmware development capability– Leading technology for embedded TV tuners in the field of
Notebook PCs– Patents : 184 patents have been granted which 47 patents havebeen granted by advanced countries such as US, E.U. andJapan, while 149 patents are still in the process.
– Product awards

21

Watch TV Anywhere & Anytime

Watch TV Anytime and Anywhere• Watch TV on PC– Watch TV on PC via any PC interface– Watch 3D TV or Transform 2D Live TV/Video into 3D– Watch TV on Mac– HD TV/Video Capture solution– ODM Tuner Module• Watch TV on Internet & Intranet solution– SnugTV (Watch TV on Internet)– HomeFree (Watch TV on Intranet)• Consumer Electronics Product– STB– Digital TV receiver with Media Player– Internet TV box

Technology
Products
Brand

Watch TV on PC Watch Digital Terrestrial or/and Analog TV on PC

Analog TV
USB Solution

DVB-T

VCD\DVD
PlayerPCI & PCI-e Solution24

25

PC/TV Strategies• Penetrate PC/TV module into main stream IT market, the same as wireless/camera
modules in PC/NB plate form:
1) Incorporate PC/TV spec into PC standard through co-alliance with Microsoft
and Intel.
2) Leverage marketing power thru first tier PC international brand players aswell as the introduction of IP/TV products as complementary products toincrease the PC/TV awareness to end users.
3) Lower down the price of PC/TV and promote the bundling of IP/TV products& services to push it to the main stream market by activating the virtuous
circle of supply/demand for larger economy scale with lower prices offering
by vendors of key components.
•
Extend TV Tuner to mobile devices and other platforms, such as Mac, iOS,
Android•
Extend TV/PC solution into consumer market•
Providing Total solution for watching TV anytime , anywhere.

26

External marketing trend• Multimedia Products– In Notebook PCs: 2011 demand of around 200 million sets ( less than
3.5% of attachment rate of TV Tuner in Notebook PCs except Japan)– 2011 iPad and Android Pad shipment forecasts around 47 Million sets,
TV function is missing (0% of attachment rate )27

External marketing trend28External marketing trend29

10 things missing from the iPad30

Watch TV on Intranet

HomeFree (Intranet)32

Watch TV on Intranet

Wireless!
TV Signals
Input

TV Shows

33

Tablet PC Shipment forecast
100000
Units: K

80000

60000

Android Pad

40000

iPad

20000
0
2010

2011E

2012E

2013E

2014E

35

Android Pad Market Trend

IPD HomeFree Product will support Android Pad soon!

External marketing trend

更新

37

Watch TV on Internet
Internet

SNUG TV
Management Server

ADSL/CABLE Modem
3G/ Internet
Router/ Hub

SNUG TV Portal

LAN

PC + TV Card++SnugTV Station

Home PC User

Internet

Remote PC User

Mobile phone User
38

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
39

Consumer Electronics Product40

Content Viewing Model

Technology
Products
Brand

New Application or Market Trend

64 Million 3D-Capable TVs By 2018 According to DisplaySearch

Source: DisplaySearch Quarterly TV Design and Features ReportSTB/Media Player Product
Main Features

•
•
•
•

Resolution Up To 1080i
H.264 HDTV Support
EPG/ Schedule Recording
Intranet Windows File Sharing
DVB-T

Supports Playback Formats:Media File
Playback

Video- RH/ RMVB/ MPEG 1/2/4/ H.264/ DIVX/XVID, AVI/ MKV/ MP4/ MPEG/ MPG/ TS
Audio- MP3/ AC3/ LC-AAC/ HE-AAC

AVerLife HD DVB-T

Photo- JPEG/ PNG/ BMP/ GIF

OutputHDMI
Digital RF (Pass Through)
SPDIF (Coaxial/ Optical)
A/V (RCA), S-Video
Component (YPbPr; up to
1080i)RRS Weather
Support43

STB/Media Player Product2011 Business Assumptions• Analog TV with PVR in emerging countries– Assuming 0.5-1% (in Russia, Indonesia and TW) will buy thisproduct, addressable market is around 960K unit

• Media Player– Assuming total market size is around 8M units in 2011

• HD Capture Box– Assuming 5% of Satellite STB buyers need capture function
without paying high monthly package, addressable market sizeis 2.5M units.

• ISDB-T STB– More than 30M home are still in Analog TV, assuming 1/3(10M)
will buy ISDB-T STB for Analog TV switch off in July/2011

Video Capture card solutionVideo Capture & SDK Solution for Professionals

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

CultureTechnology
Brand• Presentation Products:
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.
47

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.
48

Our Mission

We are committed to enriching entertainment
experiences and promoting effective
communication among people.
We strive to be a global corporate citizen that
contributes to society.

49Charity Activities in Taiwan

After-class accompanied study to those children from low-wage family weekly

Volunteer for story telling teamDonation for Morakot victims

Charity Activities in Taiwan

Clean up the World

Charity Activities in US

Making Strides Against Breast Cancer

Employees donate their time to read and interact
with children at the San Jose Innvision women’s
shelter.

AVerMedia Scholarship- make a better environment and is conscious about
its corporate practices.

California’s Coastal Clean-Up Day

Charity activities in Thailand

Clean up the World

Blind School Donation

Donated AVerVision130 to the Rural Schools

Blood Donation

Charity Activities in Europe
Pupils have lots of fun interacting with staff at Fairfields
Special School

Charity at the New Academy Delft

Q&A

Thank you55