MERRY — Investor Presentation 2013

Mar 8, 2013

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Merry Electronics Introduction

Presented by :Chintang Tseng Date :2013.3.12

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 0

Vision

~~Deliver excellent sound to enrich human ’ s life~~

Mission

~~To be a world-class total solution provider for electro-acoustic applications in communication and entertainment~~

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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• Won the G-Mark and IF Design Award

• Established factory in Hebei, China (2011)

• Set up Sales office in Singapore (2011)

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Awarded as one of the Best 200 Asia Pacific Enterprises with revenue under 1 Billion

2010 2011 & 2012 Established factory in Huizhou , China

2005 & 2007

Established factory in Suzhou, China 2005

2002 Established factory in Shenzhen, China and 1998 Bangkok, Thailand

Acquired Huges Hi-Tech Inc. for RF technology

1989 Initial trading (IPO) on the OTC in Taiwan

1985 Established factory in Taichung, Taiwan 1975 Merry Electronics Established

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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Key Milestones ( Product Evolution )
•
Ultra-thin Laptop speaker
•
High-End AIO PC speaker
•
Headset with OLED display,
NFC and built-in FM Radio
•
Wireless charging power bank 2012
2011
•
BT Portable Hi-Fi Speaker (NFC)
•
BT Mono Headset
2006 ~ 2010
•
BT Car-Kit
• Hi-Fi Speaker • Power Bank
• •
Battery Pack Active Noise Cancelling Earphone
•
ECM for Headset •
100M/Yr headsets shipment
2001 ~ 2005
•
BT Stereo Headset
•
BT Stereo PSS
1986 ~ 2000
•
Hands-free Headset for mobile phone
•
1975 ~ 1985 Speaker for NB
•
Compact Receiver for mobile phone
•
Dynamic Receiver for telephone
•
Micro SPK for Walkman Headphone
•
Dynamic Microphone for Radio Transceiver
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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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Leading Acoustic and RF Technology
Gaming Mobile
Core
Competence
Acoustic Entertainment
PC / Portable
+
RF
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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Monthly Manufacturing Capacity •Based on 20hrs a day and24days a month Date: Jan. 2013 ~~Products~~ ~~Total~~ ~~Capacity~~ ~~(K pcs)~~ ~~Manufacturing Sites~~ Portable Hands Free Headset (PHF) 15,932 Shenzhen, Huizhou, Suzhou, Hebei Receiver & Speaker 29,700 Shenzhen, Suzhou, Hebei Electro Condenser Microphone(ECM) 15,000 Shenzhen, Suzhou Bluetooth Headset & Car Kit 346 Shenzhen Headphone (HDT) 849 Shenzhen Battery Pack 600 Shenzhen High Performance Speaker (HPS) 26,560 Suzhou, Hebei Portable Speaker System(PSS) 100 Suzhou

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
Total Product Solution of Acoustic , RF & Power
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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

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Acoustic Education
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• Establish "Master's Degree in Electro-acoustic " 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
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• 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		Sep.30,2012	2011	2010	2009
Hand Cash		11.00E	13.53E	17.30E	21.12E
Net Cash		6.46E	7.88E	11.19E	16.80E
Receivables Turnover Ratio(Days)		90.5	94.7	80.9	88.6
Payable Turnover Ratio(Days)		108.3	105.9	90.1	106.4
Days To Sell The Average Inventory		75.9	67.6	54.4	53.9
Operating Cycle		58.1	56.4	45.2	37.1
Book Value Per Share		$26.03	$27.55	$27.85	$28.15
ROE		8.08%	7.18%	13.49%	11.90%
ROA		7.49%	4.22%	8.43%	7.46%
Capax		3.3E	4.9E	3.0E	2.0E
Depreciation		1.09E	2.28E	2.37E	2.51E

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	Consolidated profit	Consolidated profit	comparison	comparison	comparison
Million NT$			2011		2012Q1~Q3
Consolidated Revenue			7,843		5,598
Grossprofit			1,203		988
Operating income			234		211
Pre-taxprofit			362		319
Net income			315		271
Grossprofit %			15.35%		17.64%
Operating income %			2.99%		3.77%
Pre-tax Earnings per share(Dollar)			NT$2.39		NT$1.90
Earnings per share(Dollar)			NT$2.00		NT$1.63

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

~~.~~ [for your visiting] 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 19