MERRY — Investor Presentation 2013

Nov 1, 2013

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Merry Electronics Introduction

Presented by :Chintang Tseng

rry and shal l not be di stributed, reproduced, or di sclosed in wh ere or in part without prior wri en permis sion of Mer ry. Page 0

Vision

~~Carrying Fidelity Sound to Enrich Human’s Life~~ Mission

~~To be a World-class Electro-Acoustic Solution Provider~~

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Global Presence
Functions
HQ
RD
Sales
Manufacture
Taichung
(HQ) Taipei Thailand
West Coast
Taiwan Singapore
USA
Shenzhen Huizhou Suzhou Hebei
Hong
Shanghai
China
Kong
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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2011 & 2012

• Won the G-Mark and IF Design Award

• Launched Hebei factory in Northern China (2011)

• Set up Sales office in Singapore (2011)

2005 & 2007 Awarded as one of the Best 200 Asia Pacific Enterprises by Forbes with Revenue under 1 Billion

2010

Expanded Shenzhen factory to Huizhou, China

2002 Built manufacturing and R&D site in Suzhou, China

2005

Acquired Huges Hi-Tech Inc. for RF technology

1989 Built manufacturing and R&D site in Shenzhen and Bangkok

1998 Initial trading (IPO) on the OTC in Taiwan

1985 Set up factory in Taichung Industrial Park, Taiwan 1975 Merry Electronics Founded

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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2011 ~ 2013

Vast Advanced Products Offer

• Wireless charging power bank

• BT Portable Hi-Fi Speaker (NFC)

• Headset with OLED display/ NFC/ FM Radio

• Speaker for Ultra Notebook/ High-end PC 2006 ~ 2010

• • Power Bank

• 1986 ~ 2000 • BT Stereo PSS/ Headset

• • • Speaker for NB 100M/Yr headsets shipment

• • Hands-free Headset for mobile phone • Active Noise Cancelling Earphone

• • Compact Receiver for mobile phone 2001 ~ 2005 • Battery Pack • BT Headset/ Car-Kit

• • SMD Mic for Headset

• 1975 ~ 1985 • Dynamic Receiver for telephone • Micro SPK for Walkman Headphone • Dynamic Microphone for Radio Transceiver

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Leading Acoustic and RF Technology
Gaming Mobile
Core
Competence
Acoustic Entertainment
PC / Portable
RF
Battery
Component
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Entertainment Communication
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Computer
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Portable device Automotive Health Care
Product Application
Merry Products
Headset Speaker Microphone
Speaker System Car-kit Battery
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Product Overview - Accessory
Speaker System
Headset / Headphone
Wired
Portable
USB Active Noise
Earphone Hand-free Headset Headset Cancelling Earphone Sound bar BT Speaker
Wireless
Wireless Assistive
BT Stereo Headset Listening Portable Speaker System
Headset
(2.4GHz/5.8GHz) Device
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Product Overview - Component
Speaker Micro Speaker High Performance Speaker
NB / Tablet Speaker
Speaker for VOIP Phone
Speaker for NB
&
Mobile phone
LCD TV Speaker
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Condenser MIC / MEMS MIC

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Bi-directional Mic Uni-directional Mic SMD Mic Analog Mic
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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–
Product Overview Battery
Universal Power Pack Power Case/Docking Battery Pack
for Smart Phone & Tablet
for Tablet & Portable Device
Power Docking
Power Case
Wireless Charging
Power Pack
Rugged Power Case
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Components Accessory Acoustics Portable Plastic Receiver/ Plastic Hands free Molding Speaker Molding Cable Headset Diaphragm Extrusion Plastic Speaker Plastic Injection Automatic Injection Assembly Voice Coil Cable Stamping Molding Bluetooth Part Standard Headset Painting Electret Double RF/Circuit ECM Condenser PCB Design Injection FET Automatic Microphone Stereo Assembly Speaker PCB IMD/MIM Fabrication Battery Pack Battery PCB SMT Process Bluetooth Cell Assembly Car Kit Component Manufacturer In-House In-House and Outsourced Joint-Ventured Strategic Partner

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Merry Core Competency
Years of Track Record in Acoustic Industry
Breadth of product solution in Acoustic , RF & Battery
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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178 (33% growth)

IP Number

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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Quality Certifications
ISO9000 ISO14001 ISO14064 QC080000
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Shenzhen & Suzhou

Remark: Huizhou was certificated by ISO9000 and ISO14001 by 2012.

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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GP Compliance Evolution
Phthalates free
Recycle metal
Merry ahead Recycle packing
industry standards
Waterborne paint
Recycled plastics
REACH SVHC free
Be , Sb,… free
Halogen free
PVC free
Nickel free
RoHS+Lead free
YEAR 2006 2007 2008 2009 2010 2012 ~
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Merry believes that Recognizing our role corporate social in the society responsibility is our mindset

Acoustic Education

• Support “ Electro-Acoustic " graduate program

• Donate Electro-acoustic Lab

• Found Merry Electro-acoustic Thesis Award

• Hold Electro-acoustic seminar

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Environment Care

• Energy saving and carbon reduction

• Environmental protection and greening

Social Care

• Sponsor "Taiwan Happiness March" program by the Classical FM radio station since 2004.

• Sponsor charity concerts

• Volunteers for Community service

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Talent Cultivation

• Philanthropic Library

• 「 Philanthropic Library 」 Learning Symposium

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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單位： NTD

Item		Jun 30th,2013	2012	2011	2010
Hand Cash		15.26E	9.97E	13.53E	17.30E
Net Cash		10.91E	6.78E	7.88E	11.19E
Receivables Turnover Ratio(Days)		82.2	97.8	94.7	80.9
Payable Turnover Ratio(Days)		87.3	116.0	105.9	90.1
Days To Sell The Average Inventory		56.1	75.2	67.6	54.4
Operating Cycle		51.0	57.0	56.4	45.2
Book Value Per Share		$26.02	$27.15	$27.55	$27.85
ROE		11.56%	10.87%	7.18%	13.49%
ROA		6.88%	6.43%	4.22%	8.43%
Capax		2.3E	4.7E	4.9E	3.0E
Depreciation		1.33E	2.35E	2.28E	2.37E

The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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Consolidated profit comparison
Million NT$ 2011 2012 2013H1
Consolidated Revenue 7 843 7 690 4 505
, , ,
Gross rofit 1 203 1 460 870
p , ,
O eratin income 234 434 343
p g
Pre-tax rofit 362 587 326
p
Net income 315 481 261
Gross rofit % 15.35% 18.99% 19.32%
p
O eratin income % 2.99% 5.64% 7.62%
p g
Earnings per share (Dollar) NT$2.00 NT$2.90 NT$1.49
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The information contained herein is the property of Merry and shall not be distributed, reproduced, or disclosed in where or in part without prior written permission of Merry.

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A Total Solution Provider for Electro-Acoustic Products and Services

~~.~~ Thank you

The informa on contai ned herei n is the property of Merry and shal l not be di stributed, reproduced, or di sclosed in wh ere or in part without prior wri en permis sion of Mer ry. Page 18