Company Profile 2008 Working on Better Solutions Oct. 7, 2008.

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Presentation transcript:

Company Profile 2008 Working on Better Solutions Oct. 7, 2008

2 Performance- Status Leader of precision test and measurement equipment & systems in Taiwan. No.1 Power Supply Testing Video & Color Testing Taiwan No.1, Worldwide TOP 3 Passive Component Testing Electrical Safety Testing Asia NO.1 LED Testing Taiwan NO.1 LCD/LCM production test equipment for Tier-one key accounts VLSI/SOC IC testing platforms, ASFT for Graphic IC, CIS, and other applications Manufacturing Execution System Turn-key Solution for Solar Cell & Module Expansion in AOI applications and Nanometer Optical Measurements Unique Turn-key Solutions Provider- Testing + Automation + MES Unique Turn-key Solutions Provider- Testing + Automation + MES

3 China : Shenzhen / Dongguan / Xiamen / Suzhou Nanjing / Shanghai / Beijing Europe : Ede, Netherlands / Finland & 20 Distributors Performance- Global Operation Sites US : Irvine, CA. Hong Kong : Neworld Employees : 1426 , Branch Offices x15, Distributors x44 Taiwan Headquarters

4 Performance- Sales/Consolidated / Net Income Sales Revenue Net Income NT$ Million *Growth Rate>20% for the 4 th consecutive year Growth x4.5 Growth x4.3 *CAGR -T&M 21% -All 28%

5 Performance- ROE/EPS/Dividend EPS ROE (NT$)(%) Dividend (NT$)

6 Business- Profile Sales Gross Profit G&A Exp. R&D Exp. Operating Income , % % % % , % 1,514 57% % % , % 1,925 60% % 1,042 33% , % 1,475 60% % % YOY 31% 30% -3% 24% 47% , % 2,498 60% % 1,534 37% NT$ Million *RD Expense – annual RD expense 12% of sales revenue, time to market 3-5 years. *HR headcounts 1,426, over 380 in RD, over 600 EE engineers.

7 Net Sales Cost of Sales Unrealized Gross Profit Gross Profit Operating Exp. General & Admin. R & D Exp. Operating Income Non-Operating Income Non-Operating Exp. Income before Tax Income Tax Net Income EPS(NT$) QoQ % 10% 3% -2% 18% 16% 2Q’08 Amt % 1, % 570 (5) % % 117 ** % * 31% 1.20 YoY % 16% 5% -11% 7% -% Income Statement (Parent only) QoQ Comparison 1Q’08 Amt % NT$ Million 2Q’ 07 Amt % 1, % % % % % , % % 159*** 139*** % % % 1.03 *Proforma Net Income 442M(13% YOY Growth) including employee bonus 50M. **2Q’08,Income from investments: 13M from 100% Subsidiaries, -5M from Gold Wire Business. 35M from MAS Automation. ***Adjust reallocation Base for Employee Bonus in 2Q.

8 Net Sales Cost of Sales Gross Profit Operating Exp. General & Admin. R & D Exp. Operating Income Non-Operating Income Non-Operating Exp. Income before Tax Income Tax Net Income EPS (NT$) 1H’08 Amount % 2, % 1,057 1,346 56% % % 239 ** % * 30.4% 2.23 *** 1H’07 Amount % 1, % 782 1, % % % % % 2.33 *** Income statement – (Parent only) * Proforma Net Income 831M and EPS2.54 (15% YoY Growth) including employee bonus 100M. **1H’08,Income from investments: 33M from 100% Subsidiaries, 23M from Gold Wire Business. 50M from MAS Automation. ***Outstanding Shares: M Shares, 2008 – 327M Shares. NT$ Million YoY % 21% 12% 26% -1% 4% 1%

9 Income statement (Consolidated) Net Sales Cost of Sales Gross Profit Operating Exp. General & Admin. R & D Exp. Operating Income Non-Operating Income Non-Operating Exp. Income before Tax Income Tax Minority Interest Net Income 1H’07 Amount % 5, % 4,105 1, % % % % 1H’08 Amount % 7,117 * 100% 5,374 1, % % % % YoY % 24% 8% -5% -2% 1% NT$ Million * Sales: Parent 2,403M, Gold Wire 4,189M, MAS Automation 256M, Operating Subsidiaries 269M.

10 Product Power Supply Testing Video Color Testing Component Testing LCM Testing IC Testing LED Testing Solar Power Testing Customized System Service & Others Total Sales 1, ,492 Sales – By Testing Solution YOY 5% -10% 14% 55% -21% 2% 6% Sales 1, ,203 YOY 14% 4% 17% 15% 374% -8% 29% Sales 1, , ,208 YOY 3% 5% -2% 28% 288% 23% 31% NT$ Million Sales 1, , Q’07 1-3Q’08 YOY Sales 1, ,507 17% -21% 1% -34% 9% 17% 100% 11%

11 2H08 Guideline  Global economy slow down will affect short term sales growth, add uncertainty to 2H outlook.  Power Supply ATS, Automated System Function Tester (ASFT), Solar Cell Inspection Sorting System, LED ATS are strong growth drivers.  Promote new Solar Power ATS, ASFT for Non- Semicon Products, Programmable DC Power Sources, LED test systems, and LED Light Bar testing systems.  Strengthen Sales Activity in Japan and US.  Continue to grow Testar Electronics Corp in LED testing service business.

12  Proven track record with 23 consecutive years of profit and positive cash flow.  Sustained growth in EPS, ROE, and Free Cash Flow.  Management focus on T&M business.  Dividends Policy Dividends pay out 70%($3.6) in cash, and 11%($0.6) in stock.  Employee Bonus Employees Bonus expense targets at 15% of net profit, bench mark to ROE and Free Cash Flow. Corporate Governance

13 Growth And Applications Test Solution Industry LED AOI IC Parametric / ASFT LCD/LCM Video and Color Electrical Safety Passive Component Power Supply 2008 SAM (USD Million) Power Supply Passive Component TV/ Monitor LCM IC LED Nano Product Solar Automotive Solar Power 85

14 Test Equipments Supplier Technology Test Solutions Provider Test Equipments Process Automation MES Turn-Key Solutions Platform & Service Provider Year Business Roadmap

15 Integrated Image Sensor Production Wafer Test Dicing Die Bond Capture Image TestElectrical Function TestParticle Inspection IC Handler Image Process Software IC Handler VLSI Test System IC Handler AOI Electronic Testing Wire Bond Encap- sulation Final Test Turn-key Solution

16 ■ PV Inverter Tester - AC Source - DC Power Supply - Power Meter *Underdeveloping ■ Solar Cell Inspection System ■ Solar Cell Printing Inspector ■ Solar Cell Color Classification System ■ Solar Cell Micro-crack Inspector * ■ Solar Cell I-V Tester * ■ EVA Cutter ■ Lay-up Station ■ Process Automation CellSilicon/WaferModuleSystem Crystalline Silicon Solar Power Manufacturing Process Solar Power Turn-key Solution New Business Expansion- for Solar Power

17 New Business Expansion- for IC Testing Model 314XModel 327XModel 326XModel 328X Automatic System Function Tester CPU Chipset Graphics DVD USB CIS RF UM Device CPU Chipset Graphics DVD USB CIS RF Bluetooth HDMI GPS WiMax / WiFi Power Device UM Device CIS Power Device RF Flash Memory SD Cards Memory Stick MMC APPLICATIONS

18 Solar Industry Automotive Industry Nano Product Industry LED Industry Semiconductor Industry LCM Industry Growth Proliferation Power SupplyMonitorComponent/Safety IT Industry

19 Thank you very much