1. Merrill Lynch Forum-Senao International
Copyright © 2007 Senao Inc. All rights reserved

2. Company History About Senao： May 1979: Established in Taiwan
Nov 1997: Contracted representative of Chung Hwa Telecom Mobile Business
May 2001: IPO in Taiwan Stock Exchange (Stock code：2450)
Oct 2006: separation of wireless unit, which became Senao Networks, Inc
Jan 2007: CHT completed public offer, become largest shareholder of Senao, Senao became sole distributor of CHT mobile phone business.
May 2011: 223 Direct distribution Stores, number of employees: 2,270

3. Taiwan Communication Channel Market
System Channel
Operator(ChungHwa Telecom、Taiwan Mobile、Far Eastern、Vibo…)
Operator Service Center
Mobile phone Brand
Nokia
Motorola
Sony Ericsson
Samsung LG
HTC
APPLE
Garmin ASUS
OKWAP
CHT
Channel
Senao
Synnex
Aurora
Arcoa
Tecom
Channel direct stores
Senao Stores
Aurora Stores
Arcoa Stores
consumer
Franchis and distributors
Independent stores、3C、whole sale
Others
─ ─ Close channel
─ ─ Open Channel

4. Differential Service

5. 2006-2010 Financial results Unit: NT$M 2010 2009 2008 2007 2006 IS％
2009
2008
2007
2006
Revenue
19,495 5%
18,531
-16%
22,064
13%
19,490
22%
15,960
Gross Profit
3,755 6%
3,546 0%
3,547
32%
2,688
104%
1,318
Operating Profit
1,296 7%
1,214
-12%
1,373
26%
1,086
400%
217
EBIT
1,454 9%
1,332
-10%
1,485
19%
1,246
361%
270
Net Profit
1,208
20%
1,008
-7%
1,089
17%
931
234%
279
EPS
4.81
18%
4.08
-9%
4.49
11%
4.03
217%
1.27
Gross Margin
19.26%
19.14%
16.08%
13.79%
8.26%
Operating Margin
6.65%
6.55%
6.22%
5.57%
1.36%
Net Margin
6.20%
5.44%
4.94%
4.78%
1.75%
ROE
27.07%
23.96%
27.48%
27.79%
10.05%

6. 2006-2010 Financial results 2006~2010 Revenue and EPS
Revenue: NT$M
EPS:NT$
2006~2010 Revenue and ROE
Net Profit %
ROE

7. 22 Stores in Shanghai, Jiangsu, Fujian
Senao in China
22 Stores in Shanghai, Jiangsu, Fujian
Jiangsu
Shanghai
Fujian
Taiwan