AVerMedia
Corporate Profile
September, 2009
By
Moses 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

1

Revenue (1990-2008)
NT$
Million1990 – 2008 CAGR: 45.86%
2000 – 2008 CAGR: 19.37%
2005 – 2008 CAGR: 14.07%

3
consolidated

Product Awards

2

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

2009 CES Best of
Innovations Award

5

2009
1
2
3
4
5

2008
1
2
3
10

2007
1
2
4
-

6

-

-

7
8
9
10

4
5
8

24
10
-

Medium-Sized Enterprises
Sinyi Realty Inc.
Everlight Chemical Industrial
Hiwin Technologies
ZyXEL Communications Corp.
PLANET Technology Corporation.
Phoenix Precision Technology
Corporation
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.

63

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

7

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

8

4

New Office/Factory of AVerMedia9

2009- H1 Financial Results
Amount : US$ k

2009-H1

2008-H1YoY %Net Sales

70,344100 %

71,698 100 %

(2)%

COGS

(34,771)(49)%(38,707)

(54)%

(10)%

GP

35,57351 %

32,99146 %8%Operating Expense(24,079)(34)%(22,720)

(32)%

6%

Operating Income

11,49316 %10,27114 %12 %Net Non-op Items

5,930

8%

(441)

(1)% 1,444 %Income before Tax
Income Tax Exp. (Ben.)

17,424
3,205

25 %
5%

9,829
(248)

14 %
(0)%

77 %

18 %

10,07814 %25 %Minority Interest

1,660

Net Income

12,559EPS(NT$)

0

1.81

1.47

23 %

*The gain is from the disposal of long-term investment $5,847 K
105

3 yrs Income Statement
Amount : US$ k

2008

Net Sales
COGS
GP
Operating Expense
Operating Income
Net Non-op Items
Income before Tax
Income Tax(Ben.)Net Income

154,253 100 %(83,300) (53)%70,953 47 %(47,578) (32)%23,375 15 %2,666
2%
26,041 17 %2,877
2%
23,164 15 %Fully Diluted EPS(NT$)
Sales GrewEPS Grew

2007

2006

133,649 100 % 104,773 100 %(71,121) (53)% (58,874) (56)%62,528 47 % 45,899 44 %
(35,375) (26)% (29,965) (29)%27,153 20 % 15,934 15 %
1,645
1%
1,603
2%
28,798 22 % 17,537 17 %(434) (0)%185
0%29,232 22 % 17,352 17 %

3.40

4.77

3.04

15 %
(29)%

28 %
57 %

16 %
1%

Balance sheet highlights
Amount : US$ k
Cash &
Equivalent
Accounts
Receivable

2009-H1

2008

2007

93,38650 %

75,34044 %61,68041 %17,0689%18,365

11 %

17,84912 %Inventory

14,445

8%

14,9489%20,54914 %Fixed Assets

39,23421 %

40,90324 %

29,52320 %Other Assets

21,10412 %

20,27912 %20,11013 %Total Assets

185,237

100 % 169,835

100 %

149,712100 %Liabilities

48,82726 %

43,40226 %

29,48420 %Equities

136,41074 % 126,433

74 %

120,22880 %6Key Financial indicators
2009-H1

2008

2007

2006

ROE

18.41 %

18.32 %

24.31 %

17.24 %

ROA

13.56 %

13.64 %

19.53 %

12.93 %AR Turnover

44 days

43 days56 days

57 daysInventory
Turnover76 days

65 days 107 days

86 days

Debt ratio

26.36 %

25.56 %

25.96 %

20.33 %

2006~09-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
0

0

Amount : US$ k
Revenue

Net Income

Amount : US$ k 2006-Q1 2006-Q2 2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2
Revenue

21,444

23,66029,111

26,35526,49632,236

40,06534,68731,26740,431

38,99240,01836,10334,241Net Income

3,546

2,826

5,500

6,516

5,064

6,041

10,660

7,619

3,531

6,546

5,599

5,280

5,347

7,212

7

Breakdown of ROE
30.00 %
25.00 %

180.00 %154.29 %141.67 %141.81 %126.92 %133.35 %134.33 %124.52 %20.00 %
88.66 %

90.49 %
15.00 %

89.27 %

72.52 %

140.00 %120.00 %90.83 %

100.00 %75.95 %

79.37 %

72.32 %

160.00 %135.79 %80.00 %

10.00 %

22.60 %

17.91 %

12.71 %

16.82 %

16.52 %

5.00 %
13.81 %

13.97 %

2002

2003

24.44 %

17.24 %

16.40 %

60.00 %

18.32 %
18.41 %

40.00 %

15.02 %

17.85 %

20.00 %

2008

2009-H1

21.99 %

16.29 %

0.00 %

0.00 %

2004

ROE = Profit / Net Equity

2005
Profit / Sales

2006

2007
Sales / Assets

Assets / Net Equity

Profit / Sales
Sales / Assets
Assets / Net Equity

2002
13.81 %
72.52 %
126.92 %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-H1
17.85 %
75.95 %
135.79 %ROE = Profit / Net Equity

12.71 %

17.91 %

22.60 %

16.82 %

17.24 %

24.44 %

18.32 %

18.41 %

Dividends distribution
4.77

5
EPS
Cash
Stock

4.5
4
3.5

3.26

3.4

3.04

3.00

3
2.34

2.5
2

1.43

1.5 1.02
1
0.5
0

2001

2002

Year

2003

2004

2005

Cash

2006

Stock

2007

2008

Total

2008

2.40

96 %

0.10

4%

2007

2.20

73 %

0.80

27 %

2.50
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

8

Internal organization capability
Multimedia

Product
NetworkVideo

Presentation
Product

Technology

Product

Products
Brand

Growth Drivers

Technology

17

Technology
Products
Brand– Video conversion between analog
and 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

9

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

Technology
Products
Brand

Presentation Product- Document Camera

Network Video Product- Digital Video Surveillance19

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

USB Solution
Analog TV

EXPress Card Solution

CardBus Solution
DVB-T

VCD\DVD Player

PCI Solution

20

10

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

Location Service Solution

1.connecting your TV antenna or video device output to the Base Station .
2.The Base Station grabs the TV or video signal from the source.
3.The digital media process converts the signal into digital data and compresses
the data using a Windows- codec.
4.Then broadcasts the stream video in real time via the PC Ethernet port.
5.You access the stream via your home network or a broadband connection
22
using the installed player on your computer.

11

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.

23

Windows OS vs PC Shipment

Vista Version

Price (Est.)

TV Function(MCE TVPack)

Upgrade to
TV Function

X

V

Windows 7 Home Basic

$ 200

X

V

Windows 7 Home Premium

$ 260

V

Windows 7 Professional

$ 300

V

Windows 7 Ultimate

$ 320

V

Windows 7 Home Starter

24

12

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 end
users.
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.

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

26

13

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

27

Document Camera Applications

28

14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

29

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 and
Learning 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

30

15

Technology receives UK Government Endorsement
BECTA, (British Educational Communications and Technology Agency)
The government agency leading the national drive to ensure
the effective and innovative use of technology throughout
learning.
BECTA website:
http://emergingtechnologies.becta.org.uk/index.php?section=etn&rid=14742

Next Generation Learning is a government campaign initiatedby Becta. It is our ambition to use technology to create a more
exciting, rewarding and successful experience for learners of
all ages and abilities.
Next Generation Learning Website:
http://www.nextgenerationlearning.org.uk:8080/AtSchool/Technology/Visualisers/

31

Excerpt from the website -1
Visualisers - creating a revolution in the classroom
How they are used in school
When visualisers are used in teaching English, for instance, the teacher can place a bookunder the camera. As the class discusses the text on the screen, the teacher can makenotes – on the page or on the whiteboard.
• In maths, the teacher can show the correct use of apparatus e.g. a protractor.
• In geography, everyone can see how to plot grid references accurately on a map.
• In science, all pupils can watch an experiment or observe living creatures.
• In arts and crafts, students can follow and copy skills more easily.
One in 30 UK school classrooms now have a visualiser - this will increase to one in 10 by
the year 2010.
“There was a collective ‘wow’ from the children. They could see all the parts we had beenlearning about. It really brought the facts home and the lesson to life.” St. Mary’s School

32

16

Excerpt from the website -2
Benefits of visualisers
One of the big benefits of visualisers is for presenting and discussing pupils’ work. With thework up on the screen, the teacher or the student can talk with the rest of the class about
what’s good and what could be better.
“Children are engaged by viewing each other’s work.” Bonneville School
Visualisers have many other benefits, too, including:• saving the teacher time on demonstrations• enlarging visuals for children with impaired sight• making lessons more hands-on• motivating all children of all abilities.
“A huge sense of excitement as everyone wanted to be involved.” Hillmead School

33

Educational Budget Growth %34

17

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

35

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

36- Super slim 16CH embedded real-time DVR
with GUI

18

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
37

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 for38
alarm events, up to quad monitor outputs, full remote DVR control, etc.

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

CultureTechnology
Brand• 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.
39

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.
40

20Volunteers in AVerMedia

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

Volunteer for story telling team

41

Clean up the World since 2002

42

21

2008 Charity Activities in Taiwan

We clean up the Mountain

We Donate Blood

We sponsor NPO Event

Beach cleaning

We Donate Money, Clothes, Toys, Books
43

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

44

22

2008 Thailand Office charity activities

Mangrove Restoration

Donated AVerVision130 to the Rural Schools

800 Seedlings were planted by AVerMedia Thai.

Blind School Donation

Blood Donation

45

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

46

23

2009
1
2
3
4
5

2008
1
2
3
10

2007
1
2
4
-

6

-

-

7
8
9
10

4
5
8

24
10
-

Medium-Sized Enterprises
Sinyi Realty Inc.
Everlight Chemical Industrial
Hiwin Technologies
ZyXEL Communications Corp.
PLANET Technology Corporation.
Phoenix Precision Technology
Corporation
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.

47

Q&A

Thank you48

24