MERRY — Investor Presentation 2015

Mar 16, 2015

Merry Electronics Introduction

Presented by :Andrew Yen Date : 2015.03.16

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Overview

Merry is the World-leading Electro-acoustic Company

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Established since 1975 by Mr. Leo Liao / Mr. Jack Wei Service and Offering : Acoustic Component (Speaker and Microphone), Wired & Wireless Headphone, Headset and Speaker, Power Bank, Battery Pack, Assistive Listening Device Year 2014 Revenue : US$ 387 Million No. of Employee : 7,600 (as of Jan. 2015)

Global Footprint : 11 presences among Asia and U.S.A.

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Global Presence

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

Vision & Mission

Vision

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Delivering Fidelity Sound to Enrich Human’s Life
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Mission

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To be a World-class
Electro-Acoustic Solution Provider
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Key Milestones

2011 ~ 2014

• Won the IF Design Award / G-Mark Design Award

• Thailand factory (2014)

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2005 & 2007 Awarded as one of the Best 200 Asia Pacific Enterprises by Forbes with Revenue under 1 Billion 2010 Huizhou factory 2002 & 2003 • Suzhou factory • Battery Product Line 2005 Acquired Huges Hi-Tech Inc. 1989 for RF technology Shenzhen and Bangkok factory 1998 Initial trading (IPO) on the OTC in Taiwan 1985 Taichung, Taiwan (Headquarter) 1975 Merry Electronics Founded

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Product Evolution

2011 ~ 2014 Vast Advanced Products Offer

• •

• Wireless charging power bank Headset with OLED display/ NFC/ FM Radio

• •

• Ultra Dynamic Speaker for Wearable Device BT Portable Hi-Fi Speaker (NFC)

• •

• Hybrid Active Noise Cancelling Earphone Personal Sound Amplifier and

Hearing Protecting Earphone

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2001-2005

1986-2000

1975-1985

Speaker for NB Battery Pack Dynamic Receiver for Hands-free BT headset/ Car-Kit telephone Headset for mobile SMD Mic for Headset Micro SPK for Walkman phone Headphone Compact Receiver Dynamic Microphone for Radio Transceiver for mobile phone

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2006-2010

Power Bank BT PSS/Head Set Active Noise Cancelling Earphone

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Leading Technology

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Gaming / Entertainment Mobile
Acoustic
CORE
COMPETENCE
Acoustic
PC / Portable RF
Medical / Healthcare
Battery
Software
Wireless System
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Product Overview – Accessory

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BT Stereo BT Speaker/
Headset/
Portable Speaker
Wireless
System
Headset
Headset /
Speaker System
Headphone
USB Headset /
ANC Earphone/
Sound bar
Portable Hand-free
Headset/ ALD
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• *. ANC: Active Noise Cancelling ; ALD: Assistive Listening Device

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Product Overview - Component

Providing Customized & Standardized Products

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MEMS MIC/
Speaker
Condenser MIC
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Product Overview – Battery

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Power
Wireless
Charging Case
Universal
Battery
Power Pack
Pack
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Consolidated Revenue

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Million NT$
12,316
14,000
11,258
12,000
10,000 7,843
7,690
8,000
6,000
4,000
2,000
-
2011 2012 2013 2014
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Net Income

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Million NT$
1,244
1,400
1,031
1,200
1,000
800
482
600
315
400
200
-
2011 2012 2013 2014
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Revenue by Product Category

Y2014

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Battery, 8% Others, 1%
Handsfree, 16%
Headphone
Headphone
Headphone
19%
Speaker, 26% 30%
19%
BAT
BAT 9%
BAT
8%
15%
ACC 43% Entertainment, ACC 35%
ACC 43%
49%
BAT
15%
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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Responsibility to CSR

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Recognizing our role in the society

Merry believes that corporate social responsibility is our mindset

Acoustic Education

• Support “Electro-Acoustic”

• graduate program

Social Care

• Sponsor "Taiwan’s March of

• Blessings" program by the Classical FM radio station since 2004.

• Donate Electro-acoustic Lab

• Fund charity concerts

• Found Merry Electro-acoustic

• Award

• Hold Electro-acoustic Seminar

• IBM Engineers Week

Environment Care

• Energy saving and carbon

• reduction

• Environmental protection

• and greening

• Volunteers for community

• service

Talent Cultivation

• Philanthropic Library

• “Philanthropic Library“

• Learning Symposium

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Taking the Lead with Merry

Forty Years of Track Record in Acoustic Industry Forty Years of Track Record in Acoustic Industry

Breadth of Product Solution (in Acoustic , RF, Battery & Software)

One-Stop Full Service (from Component to System Product )

Vertical Manufacturing Integration

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Financial Ratios

Unit ： NTD/ Million

Item 2014 2013 2012 2011 2010	Item 2014 2013 2012 2011 2010	Item 2014 2013 2012 2011 2010	Item 2014 2013 2012 2011 2010
Hand Cash 1,728 2,309	997	1,353	1,730
Net Cash 1,728 1,996	678	788	1,119
Receivables Turnover Ratio(Days) 80.6 74.6	97.8	94.7	80.9
Payable Turnover Ratio(Days) 100.3 90.5	116.0	105.9	90.1
Days To Sell The Average Inventory 48.3 48.9	75.2	67.6	54.4
Operating Cycle 28.6 33.0	57.0	56.4	45.2
Book Value Per Share $32.71 $30.33	$27.15	$27.55	$27.85
ROE 21.83% 20.91%	10.87%	7.18%	13.49%
ROA 12.86% 12.36%	6.43%	4.22%	8.43%
Capax 969 459	466	486	302
Depreciation 284 277 235 228 237	235	228	237

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Consolidated profit comparison

Unit ： NTD/ Million

Million NT$ 2014 2013 2012 2011	Million NT$ 2014 2013 2012 2011
	2012 2011
Consolidated Revenue 12,316 11,258	7,690 7,843
Grossprofit 2,972 2,485	1,460 1,203
Operating income 1,439 1,308	434 234
Pre-taxprofit 1,559 1,276	587 362
Net income 1,244 1,031	481 315
Grossprofit % 24.13% 22.07%	18.99% 15.35%
Operating income % 11.68% 11.62% Earnings per share(Dollar) NT$6.72 NT$5.86	5.64% 2.99%
	NT$2.90 NT$2.00

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The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

Thank you

The information contained herein is the proprietary intellectual property of Merry Electronics and shall not be distributed, reproduced, or disclosed in whole or in part without prior written permission from Merry

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