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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Merry Electronics IntroductionMerry Electronics Introduction

Presented by :Chintang TsengDate :2014.02.20

Version: V1.0-201402

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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Merry’sMerry’s Vision & MissionVision & Mission

Vision

Carrying Fidelity Sound to Enrich Human’s LifeCarrying Fidelity Sound to Enrich Human’s Life

MissionTo be a To be a WorldWorld--class class

ElectroElectro--Acoustic Solution ProviderAcoustic Solution Provider

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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Global PresenceGlobal Presence

Functions

HQ

RD

Sales

Manufacture

Taipei

Taiwan

Taichung(HQ)

West CoastUSA Singapore

Shenzhen Suzhou

China

Huizhou

Shanghai Hong Kong

Hebei

Thailand

Hsinchu

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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• Won the G-Mark Design Award• Launched Hebei factory in Northern China

Established Battery Product LineBAT

Built manufacturing and R&D site in Suzhou, China

Key MilestonesKey Milestones

1989

1998

2003

2005

2005 & 2007

2010

2011

Built manufacturing and R&D site in Shenzhen and Bangkok

1975 Merry Electronics Founded

Initial trading (IPO) on the OTC in Taiwan

Acquired Huges Hi-Tech Inc. for RF technology

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

Expanded Shenzhen factory to Huizhou, China

Set up factory in Taichung Industrial Park, Taiwan 1985

• Won the IF Design Award• Launched Thailand factory (2014)

2012 ~ 2014

2002

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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Product Evolution Product Evolution

• Wireless charging power bank

• Ultra Dynamic Speaker for Wearable Device

• Hybrid Active Noise Cancelling Earphone

• Headset with OLED display/ NFC/ FM Radio

• Customised Earphone

• BT Portable Hi-Fi Speaker (NFC)

• Personal Sound Amplifier and

Hearing Protecting Earphone

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

1986 ~ 2000• Speaker for NB• Hands-free Headset for mobile phone• Compact Receiver for mobile phone

2001~ 2005• Battery Pack• BT Headset/ Car-Kit• SMD Mic for Headset

2006 ~ 2010• Power Bank

• BT Stereo PSS/ Headset

• Active Noise Cancelling Earphone

Vast Advanced Products Offer2011 ~ 2014

1975 2010

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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Leading Acoustic and RF TechnologyLeading Acoustic and RF Technology

EntertainmentPC / Portable

Gaming

Core Competence

Acoustic RF

Battery

Component

Mobile

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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Entertainment Communication Computer

Portable device Automotive Health Care

MicrophoneSpeakerHeadset

Speaker System Car-kit Battery

Merry Product is EverywhereMerry Product is Everywhere

Product Application

Merry Products

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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Earphone

Portable Speaker System

Portable Hand-free Headset

Wireless Headset

(2.4GHz/5.8GHz)BT Stereo Headset

Active Noise Cancelling Earphone

Assistive Listening

Device

Product Overview Product Overview -- AccessoryAccessory

Sound bar BT Speaker

Headset / Headphone Speaker System

Wired

Wireless

USB Headset

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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Product Overview Product Overview –– BatteryBattery

Universal Power Pack

for Smart Phone & Tablet

Power Case Battery Pack

Power Case

Rugged & IPx7 Power Case

for Tablet & Portable Device

Wireless Charging

Power Case + RX

Power Pack + TX

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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Micro Speaker

Product Overview Product Overview -- ComponentComponent

Speaker

Analog MEMS MicBi-directional Mic Uni-directional Mic SMD Mic

Condenser MIC / MEMS 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 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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Vertical Integration CapabilityVertical Integration Capability

Component Manufacturer

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

PlasticInjection

ECMAutomaticAssembly

Plastic Molding

Diaphragm

Voice CoilStampingPart

AcousticsReceiver/Speaker

Electret CondenserMicrophone

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/MIMPCB

Fabrication

CableExtrusion

Components Accessory

FET

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

Merry Core CompetencyMerry Core Competency

Breadth of product solution in Breadth of product solution in Acoustic Acoustic , RF & , RF & Battery Battery

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

Vertical Vertical Manufacturing Integration Manufacturing Integration

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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202

Merry PatentMerry Patent

IP Number

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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Quality CertificationsQuality Certifications

ISO9000 ISO14001 ISO14064 QC080000

Shenzhen, China & Suzhou, China

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

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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GP Compliance EvolutionGP Compliance Evolution

YEAR 2006 2007 2008 2009 2010 2013 ~

Recycle metal

Recycle packing

Waterborne paint

Recycled plastics

REACH SVHC free

Be , Sb,… free

Halogen free

PVC free

Nickel free

RoHS+Lead free

Merry ahead industry standards

Phthalates free

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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Merry ‘s Responsibility to CSRMerry ‘s Responsibility to CSR

Environment Care Talent Cultivation

Social CareAcoustic Education

• Support “Electro-Acoustic " graduate program

• Donate Electro-acoustic Lab

• Found Merry Electro-acoustic Thesis Award

• Hold Electro-acoustic Seminar

• Hold Electro-acoustic Camp

• Philanthropic Library

•「 Philanthropic Library 」Learning Symposium

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

• Fund charity concerts

• Volunteers for community service

Recognizing our role in the society

Merry believes that corporate social

responsibility is our mindset

• Energy saving and carbonreduction

• Environmental protection and greening

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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• 2006 : Sponsored the first Acoustic Engineering Graduate Program in Taiwan.

• 2008 : Donated the electro-acoustic lab, the first ISO 3745 and ISO 7779-certified electro-acoustic laboratory in Taiwan.

• 2010 ~ 2012: Held the Merry Electro-Acoustic Thesis Contest and offers the scholarship for encouraging graduates to join in the acoustic industry.

• 2012 ~: Held the Electro-Acoustic Seminar among universities and Electro-Acoustic Campamong senior high schools.

Collaboration with UniversitiesCollaboration with Universities

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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Financial RatiosFinancial Ratios

Item Sep 30th,2013 2012 2011 2010Hand Cash 1,417 997 1,353 1,730Net Cash 1,017 678 788 1,119Receivables Turnover Ratio(Days) 82.1 97.8 94.7 80.9Payable Turnover Ratio(Days) 92.2 116.0 105.9 90.1Days To Sell The Average Inventory 56.6 75.2 67.6 54.4Operating Cycle 46.5 57.0 56.4 45.2Book Value Per Share $27.59 $27.15 $27.55 $27.85ROE 16.51% 10.87% 7.18% 13.49%ROA 9.78% 6.43% 4.22% 8.43%Capax 247 466 486 302Depreciation 207 235 228 237

Unit：NTD/ Million

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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Million NT$ 2011 2012 2013Q3 2013Q1~Q3Consolidated Revenue 7,843 7,690 3,023 7,527Gross profit 1,203 1,460 690 1,561Operating income 234 434 388 731Pre-tax profit 362 587 390 716Net income 315 481 316 577Gross profit % 15.35% 18.99% 22.84% 20.74%Operating income % 2.99% 5.64% 12.85% 9.72%

Earnings per share (Dollar) NT$2.00 NT$2.90 NT$1.79 NT$3.28

Consolidated profit comparisonConsolidated profit comparisonUnit：NTD/ Million

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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Thank you.Thank you.

A Total Solution Provider for A Total Solution Provider for ElectroElectro--Acoustic Products and ServicesAcoustic Products and Services