1. Taiwan Top 50 Corporates: Survey – Trends & Outlook Tony Tsai, Director Taiwan Ratings Sep. 8, 2005

2. 2 Who Are In The Top 50

3. 3 Top 50 Sector Breakdown

4. 4 Top 50 Electronics Sector Breakdown

5. 5 Taiwan Top 50 Companies

6. 6 Key Findings  Taiwan top 50 reported record high aggregated profits in 2004  Taiwan top 50 profitability trend in line with Taiwan’s GDP growth  High-tech sector has the highest and the lowest operating margins  Auto sector has the lowest leverage ratio ， while airlines sector has the highest leverage ratio  Majority of Taiwan 50 companies had adequate to strong financial ratios and good cash balances in 2004  Old economy sector had very favorable industry conditions in 2004  Semiconductor and TFT-LCD sectors had down cycle since 2H2004  Electronics sector still faces pricing and margin pressure

7. 7 Earnings cycle had peaked, slowdown in 2005  Taiwan top 50 aggregated earnings expected to decline 29% in 2005  Slowing economic growth in the globe and in Taiwan  High oil price impact and cool down measures in China  Old economy sector faces less favorable pricing environment in 2005  TFT-LCD and semiconductor sectors will report biggest profit declines  But leading players among top 50 will maintain sound financial ratios  Clear divergence of operating performance because of size  Stalemate of cross straits relations constrains long-term growth and could undermine long-term competitiveness  Investors and bankers should watch out for weak players in the high- tech sector

8. 8 Taiwan Top 50 Companies

9. 9 Median FFO/ Total debt (%)

10. 10 Taiwan Top 50 Companies

11. 11 Taiwan Top 50 Companies Median Total debt/capital (%)

12. 12 Operating Margin Comparison

13. 13 EBITDA Interest Coverage Comparison

14. 14 FFO/Total Debt Comparison

15. 15 Total Debt/Capital Comparison

16. 16 Operating Margin Comparison-Electronics Sector

17. 17 Debt to Capital Comparison-Electronics Sector

18. 18 Who Has The Highest Interest Coverage? The highest EBITDA interest coverage in 2004 >1,000 851.5 296.3 123.4 74.9 60.9 61.2 59.1 68.2 87.6

19. 19 Who Has The Lowest Interest Coverage? The lowest EBITDA interest coverage in 2004 (x)

20. 20 Who Has The Highest Operating Margin? The highest operating margin in 2004 (%)

21. 21 Who Has The Lowest Operating Margin? The lowest operating margin in 2004 (%)

22. 22 Who Has The Largest Cash Balances? The largest cash on hand in 2004 (NT$ bil.)

23. 23 Who Had The Largest Total Debt In 2004? (NT$ bil.)

24. 24 Who Had The Largest FFO in 2004? (NT$ bil.)

25. 25 Who Has The Lowest FFO/Total Debt? The lowest FFO/total debt in 2004 (%)

26. 26 Who Has The Highest Leverage? The highest total debt/ total capital in 2004 (%)

27. 27 Who Are The Most Profitable? The most profitable in 2004 (NT$ bil.)

28. 28 Who Are The Most Profitable? The most profitable in 1H2005 (NT$ bil.)

29. 29 Who Are The Least Profitable? The least profitable in 1H2005 (NT$ bil.)

30. 30 Standard & Poor’s Ratings Matrix

31. 31 Taiwan Ratings Corporate Ratings List

32. 32 Taiwan Ratings Corporate Ratings List

33. 33 Taiwan Ratings Corporate Ratings List