Taiwan Chi Cheng Enterprise (

1
Taiwan Chi Cheng Enterprise (CCC)
Jun. 2008
2
Notice

• Some forward-looking statements will be made
  during this presentation. These forward-looking
  statements are based on the current expectations
  and involve risks and uncertainties. Actual
  results could differ materially from these
  forward-looking statements.
• For clients confidential safety, we dont
  provide any specific clients information.
• This presentation contains confidential
  information intended for a specific individual
  and purpose, and is protected by law. Any
  disclosure, copying, or distribution of this
  presentation , or the taking of any action based
  on it, is strictly prohibited.

3
Table of Contents

1. Company Overview
2. Competitive Advantage
3. Rising Metal Trend
4. Financial Outlook
5. Our New TV Business

4
CCC Overview
Worldwide 1 3C Aluminum Casing Manufacturer
5
Company Overview

• Established March 1973
• Products Metal casing and precision mechanical
  components
• Production base Taiwan, China, Malaysia
• Headquarters Taipei, Taiwan
• Employees 5,667
• 2007 Revenue NT 7.22bn
• Shares Outstanding 145mn shares
• Top 500 Manufacturers in Taiwan (Common Wealth
  Magazine 2006)

As of May 20th, 2008
6
History and Milestones
35-yrs of Dedicated Experience in Precise
Mechanical Components
Global Expansion History
2007
1973
1987
1992
1997
1998
1999
2000
2006
TCC Setup
Wai-Gin
BCC Setup
ZCC Setup
KCC Setup
KCC II Setup
PCC Setup
Technological Milestones
Stamping Parts
TV Parts
Automobile
Plastic Parts
Insert Parts
Metal Casing
Assembly
7
Global Locations
??
Manufacturing Plants Taiwan Zhuhai,
China Kunshan, China Tianjin, China Malasia
Sales Points USA Singapore Hong Kong
Wai-Gin Plants Taiwan Ning Bo,China Nai Hai,China

8
Competitive Advantage
9
Integrated Technologies in Mechanical Components

Anodizing
Spray Painting
Etching
Plating
Spining
Injection
Stamping
Printing
Diamond Cutting
Molding Development
NCVM
Hair Lining
PVD
Insert molding
Assembly
ED Coating
Welding
Thermal bonding
10
Mechanical Components for end applications

DSC
Handset
Automobile
Plastic parts
Metal parts
Mechanical Components
PC related
MP3
Insert parts
LCD TV
GPS
NB
Reference To be developed.
11
Q1, 2008 Revenue Breakdown
12
Jan.-Apr. Customer Breakdown
Source Company. Breakdown by revenue
contribution
13
Revenue Breakdown
2006 2007 2008
Communication 75 40 4045
Consumer 22 34 2428
TV - 21 2732
Computer Others 3 5 36
TV revenues start from CCC acquired Wai-Gin by
the end of April 2007. Others include Computer
components.
14
Rising Metal Trend
15
The Value of Metal Casing

• Compared to plastic, metal is more
  environmentally friendly
• Consumers are demanding for lighter and thinner
  handsets
• Metal casing is perceived by the end user as
  more high-end

• Environmental
• Protection
• Recyclable
• Toxic free

• Engineering Value-Added
• Thinner
• Lighter
• Greater Strength

• Higher Qualityand More High End
• Diamond Cut
• Hair Line
• Etching

16
Comparison of Aluminum and Magnesium
Aluminum Magnesium
Surface Attractiveness Simple with attractive surface finish More complicated and susceptible to bubbles
Finish Anodizing Spray Painting
Cost Cheaper More expensive
Yield High yield Low yield
Weight Heavier (Atomic Mass 26.9 amu) Lighter (Atomic Mass 24.3 amu)
Surface TreatmentBreadth Wide (e.g., anodizing, painting, diamond cut, hairline, etching) Limited (e.g., painting, etching)
Suitable Applications External Parts For Internal Parts
Stamping Injection / Die-Casting
Production Rates 60 units/minute 6 units/minute
Time Shorter Longer, as metal needs time to solidify
Cost per machine NT5 million NT30 million
Material Aluminum / Stainless Aluminum / Magnesium
Source Company, Chemicalelements.com
17
Expansion Strategy
Short Term
Long Term
18
Financial Outlook
19
2007 Result YoY Comparison
2007 2007 2006 2006 QoQ
In NT million Amount Amount
Net Sales 7,223 100.0 7,227 100.0 -
Gross Profit 1,430 19.8 1,575 21.8 -9.2
Operating Expense 897 12.4 599 8.3 49.7
Operating profit 533 7.4 976 13.5 -45.4
Earning Before Tax 516 7.1 891 12.3 -42.1
Earning After Tax 416 5.8 759 10.5 -45.2
EAT w/o Minority 399 5.5 728 10.1 -45.2
EPS 2.78 5.38
Source Company. Results are on a consolidated
basis, 07 and 06 capital based on NT1,450mn and
NT1,201mn respectively.
20
2008 1Q Result YoY Comparison
2008.1Q 2008.1Q 2007.1Q 2007.1Q YOY
In NT million Amount Amount
Net Sales 1,551 100.0 1,790 100.0 -13.4
Gross Profit 286 18.4 446 24.9 -35.9
Operating Expense 229 14.8 169 9.4 35.5
Operating profit 57 3.6 277 15.5 -79.4
Earning Before Tax 37 2.4 285 15.9 -87.0
Earning After Tax 3 - 245 13.7 -98.8
EAT w/o Minority 5 - 235 13.1 -97.9
EPS 0.03 1.95
Source Company. Results are on a consolidated
basis, 06 and 05 capital based on NT1,201mn and
NT1,163 respectively.
21
Financial Ratio Analysis
(Consolidated)
In NT Thousand 2004 2005 2006 2007
Receivable 804,078 1,338,201 1,985,614 2,029,608
Allowance for doubtful accounts 14,452 13,385 99,527 94,846
Receivable, Net 789,626 1,324,816 1,886,087 1,934,762
Receivable Turnover 4.70 4.13 4.35 3.60
Inventories 662,409 1,030,038 1,293,719 994,230
Allowance for devaluation 58,660 66,729 111,572 111,680
Inventories, Net 603,749 963,309 1,182,147 882,550
Inventory turnover 4.13 4.28 4.86 5.06
Operating income rate 16.82 9.45 13.50 7.38
Profit margin 11.15 7.31 10.07 5.53
Source Company. Results are on a consolidated
basis.
22
Financial Performance
Net Income
Revenues
(in NT mns)
(in NT mns)
Source Company, Revenues and Net Income are on
a Consolidated Basis.
23
EPS ROE
ROE
EPS
()
(NT)
Source Company. Results are on a consolidated
basis.
24
Our New TV Business
25
Business Scope
25
CCC acquired Wai-Gin by the end of April 2007.
26
WaiGin Plan
Short term

• Diversify clients base in Taiwan and Asia Market.
• Set up new plants in China.
• Expand economic scale.

Mid to long term

• Diversify products base in TV / NB / Moniter and
  other areas.
• Vertical integration in module production and
  surface treatment.
• Diversify material base.
• Listing in stock market.

27
Thank You! QA