Merry Confidential

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Merry Electronics Company ProfileMerry Electronics Company Profile

Prepared by : Chintang TsengIssue:MAR.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. Page 1

MerryMerry’’ss Vision & MissionVision & Mission

VisionDeliver excellent sound to enrich humanDeliver excellent sound to enrich human’’s lifes life

MissionTo be a worldTo be a world--class total solution provider for class total solution provider for

electroelectro--acoustic applications acoustic applications in communication and entertainmentin 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. Page 2

Global FootprintsGlobal Footprints

Functions

HQ

RD

Sales

Manufacture

Taipei

Taiwan

Taichung(HQ)

West CoastUSA Singapore

Shenzhen Suzhou

China

Huizhou

HongKong HongKong Shanghai Shanghai HEBEIHEBEI

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. Page 3

Key MilestonesKey Milestones

1989

1998

2002

2005

2005 & 2007

2010 2011

Established factory in Shenzhen, China and Bangkok, Thailand

1975 Merry Electronics Established

Initial trading (IPO) on the OTC in Taiwan

Established factory in Suzhou, China

Acquired Huges Hi-Tech Inc. for RF technology

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

Established factory in Huizhou , China

• Expanded Factory II in Suzhou, China• Established factory in Hebei, China• Set up Sales office in Singapore

Established factory in Taichung, Taiwan 1985

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•Active Noise Cancelling Earphone• 100M/Yr headsets shipment• BT Stereo Headset• BT Stereo PSS

• BT Mono Headset• BT Car-Kit• Hi-Fi Speaker• Battery Pack• ECM for Headset

Key Milestones ( Product Evolution )Key Milestones ( Product Evolution )

1986 ~ 2000

2001 ~ 2005

2006 ~ 2010

1975 ~ 1985

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

• Hands-free Headset for mobile phone• Speaker for NB• Compact Receiver for mobile phone

2011• BT Portable Hi-Fi Speaker (NFC)

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. Page 5

Leading Acoustic and RF TechnologyLeading Acoustic and RF Technology

EntertainmentPC / Portable

Gaming

Core CompetenceAcous c

+ RF

Wireless System

Component

Accessory

Mobile

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Merry Product is EverywhereMerry Product is Everywhere

MicrophoneSpeakerHeadset

Speaker System Car-kit Battery

Entertainment Communication Computer

Portable device Automotive Health Care

Product Application

Merry Products

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. Page 7

Earphone

Portable Speaker SystemPortable Hand-free Headset

Wireless Headset

(2.4GHz/5.8GHz)BT Stereo Headset

Active Noise Cancelling Earphone

Assistive Listening

Device

Product Overview Product Overview -- Accessory Accessory

Sound bar

BT Speaker

Headset

Speaker System

Car-kit

Battery

Headphone

Wired

Wireless

USB Headset

Power bank

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. Page 8

Micro Speaker

Product Overview Product Overview -- Component Component Speaker

Digital Mic Analog Mic

MEMS MIC

Digital Mic Bi-directional Mic Uni-direc onal Mi c SMD Mic

Condenser MIC

NB / Tablet Speaker

LCD TV Speaker

High Performance Speaker

Speaker for NB &

Mobile phone

Speaker for VOIP Phone

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. Page 9

Vertical Integration CapabilityVertical Integration Capability

Component Manufacturer

In-House In-House and Outsourced Joint-Ventured Strategic Partner

PlasticInjection

ECMAutomaticAssembly

Plastic Molding

Diaphragm

Voice CoilStampingPart

Acous cs Receiver/Speaker

ElectretCondenserMicrophone

StandardPainting

PlasticInjection

Plastic Molding

CableMolding

RF/CircuitPCB Design

PCBAssembly

PortableHands freeHeadset

BluetoothHeadset

BatteryCell

Battery Pack

Stereo Speaker

Bluetooth Car Kit

SMT Process

Speaker AutomaticAssembly

Double Injection

IMD/MIM PCB Fabrication

CableExtrusion

Components Accessory

FET

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. Page 10

Monthly Manufacturing CapacityMonthly Manufacturing Capacity

Date: Jan. 2012

Products Total Capacity(K pcs)

Manufacturing Sites

Portable Hands Free Headset (PHF) 26,388 Shenzhen, Huizhou, Suzhou, Hebei

Receiver & Speaker 58,060 Shenzhen, Suzhou, Hebei

Electro Condenser Microphone(ECM) 26,500 Shenzhen, Suzhou

Bluetooth Headset & Headphone 1,000 Shenzhen

High Performance Speaker (HPS) 6,200 Suzhou, Hebei

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. Page 11

Merry Core CompetencyMerry Core Competency

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

Total Product Solution of Acoustic , RF & Power Total Product Solution of Acoustic , RF & Power

OneOne--Stop Service (from Component to Finished Goods )Stop Service (from Component to Finished Goods )

Vertical Manufacturing Integration Vertical Manufacturing Integration

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20112011

Sales RevenueSales Revenue-- Product BreakdownProduct Breakdown

Portab le

Handsfree

66~68%

Other

3~5%

Enter tainment

20~22%

Speaker

7~9%

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. Page 13

Financial RatiosFinancial Ratios

Item 2011(F) 2010 2009 2008

Hand Cash 13 .63E 17 .30E 21.12E 18 .76E

Net Cash 8 .48E 11 .19E 16.80E 12 .05E

Receivables Turnover Ratio (Days) 94 .7 80 .9 88 .6 82.4

Payab le Turnover Ratio (Days) 104 .2 90 .1 106 .4 84.4

Days To Sell The Average Inven tory 67 .6 54 .4 53 .9 47.7

Opera ting Cycle 58 .1 45 .2 37 .1 45.7

Book Value Per Share $27.50 $27 .85 $28 .15 $27 .67

ROE 7.18% 13 .49% 11 .90% 12 .64%

ROA 4.23% 8.43% 7.46% 7.61%

Capax 4 .8E 3.0E 2 .0E 6 .4E

Deprecia tion 2 .36E 2 .37E 2.51E 2 .29E

單位：單位：NTDNTD

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. Page 14

Mil l i on NT$ 2011 Q1 2011 Q2 2011Q3 2011Q4(F ) 2011Q 1~ Q 4 (F )

Consol ida t e d Re ve nue 1, 744 1, 755 1, 890 2, 453 7, 842

Gross profi t 278 262 257 407 1, 204

Ope ra t i ng i nc ome 40 13 21 165 239

P re -ta x profi t 57 56 68 180 361

Ne t i nc ome 43 56 62 161 315

Gross profi t % 15. 95% 14. 95% 13. 56% 16. 61% 15. 35%

Ope ra t i ng i nc ome % 2. 28% 0. 73% 1. 13% 6. 74% 3. 05%

P re -ta x Ea rnings pe r

sha re (Dol l a r)NT$0. 36 NT$0. 39 NT$0. 46 NT$1. 17 NT$2. 38

Ea rnings pe r sha re

(Dol l a r)NT$0. 27 NT$0. 36 NT$0. 39 NT$0. 98 NT$2. 00

Consolidated profit comparisonConsolidated profit comparison

Merry Confidential

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