LED Vision

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LED Vision Everlights Strengths
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Company Features
Founded 1983 IPO Nov 1998 Business
Focus Design Design, market license
intelligent
light emitting diode (LED) packages. Offering
all kinds of
visible and invisible LEDs solutions
to meet customers
demands. Customers Base Over 4,000 Customers
Worldwide Headquarter Taipei, Taiwan
Employees Approximately 3,000 World Wide
Patents Over 30 Issued Over 30 Ongoing
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Business Philosophy
Innovation
Excellence
Business Philosophy
Harmony
Trust
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Organization Chart
Board of Directors
Audit Office
President
General Manager
EnvironmentalHealth and Safety
General Manager Office
Production Group
Sales Group
MIS Division
HR Division
Financial Division
Quality Assurance Division
RD Division I
RD Division II
Technology Division
Logistics Division
Tu-Cheng Factory
Yue-Lee Factory
Pan-Yu Factory
Su-Zhou Factory
Marketing Sales Division
Overseas Sales Division
Great China Sales Division
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Introduction

• LED Lamps and Displays manufacturing established
  in 1983.
• Infrared Products introduced in 1984.
• Established global market presence through
  private label manufacturing.
• ISO-9001, ISO-9002, ISO-14001 and TS-16949
  certifications.
• Publicly listed and traded on TAIEX
• Design, market license intelligent light
  emitting diode (LED) packages. Offering all kinds
  of visible and invisible LEDs solutions to meet
  customers demands.
• Over 4,000 Customers Worldwide
• Approximately 4,000 World Wide

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Total Solution for LEDs
LED Modules
Signage LEDs
High Power LEDs
Circuit Board Indicators
Infrared (IR) Components
LED Lamps and Displays
Surface Mounted LEDs
Photo coupler
Light Bar
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Plants
CHINA
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Global LED Market
US Million

• Total LED market in Japan dropped -7.4 in 2005
• Total LED market in Taiwan went up
  7.8,Everlight was 9.8
• Predicted total global LED market(11.3)
  ,Taiwan(15).

SourcePIDA,2006/1
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Major LEDs Applications and Growth Outlook
Market Share 2005 2009
Handset 36 22
LCD BL 12 19
Lighting 9 23
57
64

• Everlights marketing strategy will focus on
  handset ?BL and lighting applications conforming
  to the global development trends.

SourceiSuppli,PIDA,2005/8
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Global White LED market
SourceFuji Chimera,PIDA??,2005/10
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Forecast Demand For Handset with High Power LED
Unit Million (PCS) 2004 2005 2006
Global Cell Phone amount 696 797 895
White LED in Keypad 344 773 1,698
White LED in Backlight 1,239 1,659 2,271
White LED in Flash 257 471 695
83 48
Flash LED Growth Rate
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LED Vs.CCFL

• For Small Size LCD Backlight,LEDs Price is
  approaching CCFL .LED will replace CCFL to large
  Size LCD TV Backlight . According to Insight
  Medias research report , Backlight LED in LCD TV
  will surpass more than 50 in 2010?

Cost difference LED backlight vs. CCFL -7LCD Cost difference LED backlight vs. CCFL -7LCD Cost difference LED backlight vs. CCFL -7LCD
7LCD White LED CCFL
Quantity used 2535 1CCFL1 inverter
Unit Price 0.14 CCFL US1, Inverter US2
Total Cost US 4.2 3
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White LED seizes NB backlight market

• Toshiba announced the first White LED backlight
  NB used in the world. LCD size is 7.2and only
  weighs 980g.
• 11/2005 Sony started selling White LED Backlight
  NB.Size1.26Kg,and 21mm. VAIO embedded CD burner
  model is the thinnest in the world.(NT59800NT69
  800)
• 12/2005 Fujitsu started selling LED backlight NB
  with Lifebook P7120 series. Size1.38Kg and
  4.2mm?4.2mm 10.6 widescreen 169 aspect.

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LED Backlight in NB LCD TV

• Sony announced the first LED Backlight TV in
  2004.11.
• The LED Backlight TV market is upbeat due to
  SONYs QUALIA series.

• LED applied in NB is expansible.

SourceLehman Brothers
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Reading light
Interior Light
Dashboard
UV light catalyst
Turn Light?rear light and 3rd stop light
Insignia decoration
Antennae decoration light
License Plate light
Mirror reverse and turn light
sidelight
IR Night Vision
Headlamp
Footrest light
Tire Pressure detector
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LED in Automotive
SourceiSuppli
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Global LED lighting market

• Genera1 20042010 CAGR45
• Indoor Indicator 20042010 CAGR36

SourceiSuppli
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Why Everlight ?
Osram grants license to Everlight

• Everlight is the 1st LED maker in Taiwan to
  receive Osram License for TAG phosphor. Our
  technology and experience leads other
  competitors.

White LEDs license
Nichia
Osram
Everlight
White LEDs Cross license

• Osram GmbH, Munich, and Everlight Electronics Co. 
  Ltd., Taipei, recently signed a patent license
  contract. Osram has granted Everlight a royalty
  license to manufacture and sell surface mountable
  light emitting diodes (SMT LEDs) for white and
  coloured light and for other white LEDs with
  conversion technology, for which Osram holds
  patents. Typical applications include
  backlighting for mobile phone and car radio
  displays.
• ( Source by OSRAM website Press )

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Why Everlight ?
LED Supply Chain Integration
LED Chip

• Vertical integrated with Epistar (LED chip
  manufacturer)
• Epistar is the biggest LED chip manufacturer in
  the world.
• Epistar was approved by major companies all over
  the world.
• Own a great many patents in chip technology.

Epistar United Epitaxy
Epistar - Largest quaternary compound LED die
maker in the world. Quad1200KK Blue300KK ITO
120-150KK OMA60-80KK
LED Packaging
Everlight

• Advance new technology and product development
  through integrated supply chain.

• Widest SMD LED product line with high production
  capacity. Offering fast lead-time and low cost.
  

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Core Competence

• R D
• Certificates
• Marketing
• Manufacturing
• Quality

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R D
Taipei Headquarter
RD Division I
RD Division II
High Brightness LEDs SMD LEDs LED Lamp Array
LEDs Infrared LEDs Infrared Sensor Photo Coupler
New Products Modules Mechanical Optical Material
Chip
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Manufacturing
Total Quality Management
ISO 9001
ISO 9002
ISO 14001
TS 16949
6 - SIGMA
OHSAS 18001
SPC Activities
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Environmental Protection
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Everlights current market strengths

• Everlight is the leading company in LED
  package,Everlight has all series of LED products.
• Everlights vertical integration with Epsitar
  gives Everlight unsurpassed dominance in the
  market.
• Everlights market position

Monthly Capacity(KK) BrightLed Haravtek AOT Everlight
LAMP 100 - - 190
SMD 150 300 150 600
Display 10 - - 10
Infrared 50 - - 150
Other - - - 6
Total 310 300 150 956
Taiwan No1
Taiwan No1
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Global Network
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Sales Turnover
US Million
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Sales Distribution
2004
2005
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Past Three Years Sales Patterns
(A)
(B)
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ELs Product share in term of Applications

• Product share in 2005

Product share in 2006

• Consumer Electronics share is decreasing.
• Mobile Phone will grow to a 40 share.
• TFT LCD, Automotive and Display applications are
  increasing.

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LED Application Roadmap
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Future Target Market

• Future Target Markets
• Cell Phone
• Automotive
• Illumination
• Back Light
• Combine Solar cells application

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Financials Summary
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Income Statement
Year Financial Information Financial Information Financial Information Financial Information
Item 2005 2004 2003 2002
Sales Revenue 6,900,916 6,259,642 5,508,111 3,987,215
Gross Profit 2,503,551 2,038,405 1,601,704 1,083,460
Gross Profit Margin() 36.28 32.56 29.08 27.17
Operating Income 1,658,043 1,358,154 1,009,577 579,894
Operating profit to sales() 24.03 21.70 18.33 14.54
Nonoperating Income 275,103 265,234 263,325 207,799
Nonoperating Expenses and Losses 185,550 253,019 157,641 115,545
Income before Tax 1,747,596 1,370,369 1,115,261 621,925
Net profit margin before tax() 25.32 21.89 20.25 15.60
Net income 1,474,142 1,152,748 958,305 548,526
Basic net income per share (calculated by adjusting dividends declared retroactively) 5.04 4.01 3.52 2.43
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2007 Jan.-Nov. Financial Results(Unaudited)
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Dividend Policy
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Employee Bonus Reward Dilution Effects
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Past 4-Years Financial Ratios