A Worldwide Leading ODMs Company

1
Compal Electronics, Inc.

• A Worldwide Leading ODMs Company
• July 7, 2008
• http//www.compal.com
• Investor_at_compal.com

2

• Compal Outstanding Performance
• Strategy Vietnam Project
• Market Outlook
• Recap of 1Q08 Financial Results
• QA
• Supplement Compal Group History

3
Compal Outstanding Performance
4
Compal Outstanding Performance
22.6 mm
NB PCs Shipment ( Million)
14.5 mm
9.8 mm
7.7 mm
250K
240K
LCD TVs Shipment ( Thousand)
180K
140K
LCD Monitor Shipment ( Million)
3.2 mm
3.0 mm
2.7 mm
1.8 mm
Note Compal Consolidated Financial Results
5
A Leading Position in NB PCs
NB PCs Shipment Million
Compal Market Share ()
(Million) 2002 2003 2004 2005 2006 2007 1Q08
Worldwide NB PCs Shipment 27.8 35.4 42.2 57.5 74.5 100.6 31.5
Compal NB PCs Shipment 4.0 5.5 7.7 9.8 14.5 22.6 6.1
Worldwide NB PCs Growth () 11 27 19 36 30 35 37
Compal Growth () 74 36 40 28 48 56 26
Compal WW Market Share () 14 16 17 17 19 22 20
Source IDC, April 2008 Company Date
6
A Steadily Profit Competence
NT Bn
427.4
13.7
303.1
220.9
8.7
211.4
8.4
6.6
101.6
97.0
3.2
2.6
//
Source Company Unconsolidated data
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Strategy Vietnam Project
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Corporate Value
Compal Strengths Compal Strategies
Differentiated Products Tracking Strong Market Trends ( Computers ? Communications ? Consumers ) Dedicated RD for Specific Products and Customers Solid Execution to Guarantee Customer Satisfaction Efficient Economic Scale and Global Logistics Infrastructure Sound Financials Support New Business Expansion Leverage Sales Growth and Profitability Strengthen Our Industry-Leading Position Invest in RD Continuously for Emerging Technologies Enhance Cost Advantages through Economic Scale Accelerate Internal Resources Integration through Merger or Acquisition Explore New Digital/ Consumer Appliances / Auto Electronics
9
Compal Group Vertical Integration

• NB PCs
• LCD Monitor/ TVs
• MID / Digital Media Player
• Automatic Electronics
• Handset / PDA
• Smartphone

Semi-conductors Components
a-Si TFT / LTPS Panel

• Wireless Broadband
• Multimedia Telecom

Touch Panel
Metal Mechanics
Drive IC Testing Packing
10
Compal New Business Resource Integration

• Compal will, through Mergers and Acquisitions,
  accelerate its new business expansion and
  component resource integration to speed up its
  sales and profit growth in the future.

Vertical Vertical Horizontal
2006 Wireless Device LCD TVs Portable Consumer Device, (Portable Media Players, Digital Photo Frame, Internet Radio) MID (Mobile Internet Device) Auto Electronics (Audio/ Video/ Navigation)
2007 Metal Mechanics Solution LCD TVs Portable Consumer Device, (Portable Media Players, Digital Photo Frame, Internet Radio) MID (Mobile Internet Device) Auto Electronics (Audio/ Video/ Navigation)
Next Target in 2008 Plastics Mechanics Solution Connectors LCD TVs Portable Consumer Device, (Portable Media Players, Digital Photo Frame, Internet Radio) MID (Mobile Internet Device) Auto Electronics (Audio/ Video/ Navigation)
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Second Manufacturing Site in Vietnam
Headquarter

• Investment in Vietnam
• Build second manufacturing site in Vietnam,
  besides China
• Satisfy customers needs for global resource
  leverage, risk management and cost
  competitiveness
• Schedule Mass Production at 2Q 2009
• Produce High/ Medium end model in China and Low
  cost/ Entrance model in Vietnam, respectively
• Enhance China site operational function -
  Employ Chinese engineers to leverage Taiwan RD
  capacities

Plant Facilities
Kunshan
Taiwan
Vietnam (2009)
Location Operational Function
Taipei, Taiwan Marketing, RD, Procurement, Accounting Finance, HR/ Administrative
Kunshan (Great Shanghai), China Manufacturing, Logistics, RD
Vietnam (2009e) Manufacturing, Logistics, RD
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Dividend Policy
13
Dividend Payout
2002 2003 2004 2005 2006 2007
Yearly Earning
EPS (NT) 3.21 3.80 1.95 2.43 2.35 3.58

Dividend Payout
Cash (NT) 1.0 2.0 1.1 1.5 1.7 2.4
Stock (NT) 1.5 0.7 0.4 0.3 0.05 0.05
2.5 2.7 1.5 1.8 1.75 2.45


Cash Dividend Payout () 31 53 56 62 72 67
Source Company data
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Market Outlook
15
Speed-Up of NB PCs Replacing DTs
Thats PC
Worldwide NB PCs Shipment Estimate (000)
NB PCs Penetration Ratio
2007-2012 CAGR 17
()
2006 2007 2008E 2009F 2010F 2011F 2012F
NB PCs Growth () 29 35 27 20 16 13 10
Source IDC, April 2008
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Emerging Market Keeping Growing
Source IDC, April 2008
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Tier One Customers Base
IDC Market Share Data by Unit Shipment
Compals Qualified Customers Base
1Q07 2Q07 3Q07 4Q07 1Q08 2006 2007
21.0 20.8 21.6 21.4 21.7 17.9 21.2
12.6 13.1 14.2 15.7 15.8 11.6 14.1
13.7 14.6 13.7 13.9 14.9 16.4 13.9
10.7 10.3 10.0 9.1 9.7 11.2 9.9
6.9 8.2 8.2 7.6 7.2 7.7 7.8
3.4 3.6 4.2 4.7 4.4 3.3 4.1
4.5 3.8 3.8 4.7 4.4 4.2 4.2
5.6 4.1 4.5 4.5 5.0 5.3 4.7
3.8 4.8 4.6 4.2 4.5 3.9 4.4
Others 17.8 16.7 15.2 14.2 12.4 18.5 15.7
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source IDC, May 2008
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1Q08 Financial Results
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1Q08 Income Statement
1Q08 (Reported) 1Q08 (Reported) 1Q08 (Reported) 4Q07 4Q07 4Q07 1Q07 1Q07 1Q07 Q o Q Change() Y o Y Change()

Net Sales 101,641 100.0 116,228 100.0 96,980 100.0 - 13 5
Gross Margin 4,808 4.7 5,729 4.9 4,624 4.8
Operating Income 2,730 2.7 3,996 3.4 3,307 3.4 - 32 - 17
Net Non-operating Gain (Loss) 1,229 1.2 1,055 0.9 (175) - 0.2
Income before Tax 3,959 3.9 5,051 4.3 3,132 3.2 - 22 26
Net Income 3,209 3.2 4,146 3.6 2,601 2.7 - 23 23
EPS (NT Dollars) 0.84 1.09 0.69

• Note
• All figures in million of NT except for earnings
  per share Financial data is unconsolidated
• 1Q08 Result Reported has accrued of Employee
  Bonus and Director Remuneration

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Balance Sheets
March 31, 2008 March 31, 2008 Dec. 31, 2007 Dec. 31, 2007 March 31, 2007 March 31, 2007

Cash and Cash Equivalents Marketable Securities 34,467 22 31,443 20 31,796 21
A/R 63,334 40 64,836 41 61,503 40
Inventories 11,197 7 12,339 8 12,328 8
Investments 45,304 29 45,002 29 43,198 28
Total Assets 157,971 100 157,689 100 154,042 100

Total Current Liabilities 68,431 43 69,185 44 79,188 51
Total Liabilities 77,730 49 79,440 50 79,431 52
Shareholders Equity 80,241 51 78,249 50 74,611 48
Book Value per Shares 20.7 20.2 19.6
Debt 13,117 9,744 14,367
Net Cash 21,350 21,699 17,429
Note All figures in million of NT Financial
data is unconsolidated
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Thank You http//www.compal.com Investor_at_compal.c
om
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Supplement - History of Compal Group
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A Leading Company in IT Industry

• Founded 1984
• Headquarters Taipei, Taiwan ROC
• Exchange Taiwan Stock Exchange, Luxembourg (GDR)
• Ticker Symbol 2324 TT
• Market Cap(1) US 4.16bn
• Ranked by BusinessWeek as the Info Tech 100
  Company in worldwide since 2001

1990
1985
1995
2002
2004
2005
2000
2008
2007
The Technology Evolution and Business Models in
Compal (Computer to Consumers)
LCD TV
Handset / PDA
PDA Phone
3G Handset
CRT
LCD
NB PCs
MID
MP3
PDP TV
Portable Media Player
Note(1) As of Closing Price of Trading on June
27, 2008
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Sales Growth Momentum
Leading Technology, High Quality and Products
Diversification
NT 498bn (US 16.6bn)
30
NT 382bn
44
15
NT 265bn
30
NT 230bn
45
NT 177bn
54
NT 123bn
NT 80bn
Note Company Consolidated Financial Data
(including major consolidated entity -Compal
Communications)
25
Sales Mix
Sales Breakdown by Products

• Looking for Products Diversification

2006
2007
2005
Note Company Consolidated Financial Data
(including major consolidated entity -Compal
Communications)
26
Group Financial Results Update
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Income Statements (Consolidated)
2005
2006
2007
NT Million
Net Sales 265,462 100.0 382,399 100.0 498,271 100.0
YoY Change 15.5 44.0 30
Gross Profit 20,566 7.7 25,355 6.6 31,483 6.3
YoY Change 20.9 23.3 24
Operating Income 12,302 4.5 15,886 4.1 20,127 4.0
YoY Change 15.6 29.1 27
Net Non-operating Income/ (Loss) (960) (0.3) (2,155) (0.6) (400) (0.1)
YoY Change - - -
Net Income 8,419 3.2 8,751 2.3 13,683 2.7
YoY Change 28 4 56
EPS (NT dollars) 2.43 2.35 3.58
Note Company Consolidated Financial Data
(including major consolidated entity -Compal
Communications)
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Balance Sheets (Consolidated)
NT Million
2006 End
2005 End
2007 End
Cash / Cash Equivalent Market Securities 43,747 29 60,304 30 62,957 30
A/R 46,944 30 72,034 36 79,843 37
Inventory 21,987 14 26,799 13 30,772 14
Investments 23,651 15 22,689 11 20,532 9
Total Assets 153,614 100 199,776 100 213,375 100

Total Current Liabilities 66,894 44 121,897 61 116,624 55
Total Liabilities 83,812 55 122,375 61 127,430 60
Shareholders Equity 69,802 45 77,401 49 85,945 40

Debt 23,693 22,126 21,274
Net Cash 20,054 38,178 41,683
Capital 35,765 38,115 38,659
Note Company Consolidated Financial Data
(including major consolidated entity -Compal
Communications)
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Financial Ratios

DSI (Days) 27 26 29 25 23
DSO 67 66 60 57 56
DPO 76 75 73 74 72
CCC 18 17 16 8 7

ROA () 10.0 5.1 6.0 6.3 7.7
ROE 20.5 10.9 12.9 15.2 19.5
ROIC 16.7 9.7 11.3 11.1 14.5
Cash Conversion Cycle
2005
2004
2003
2006
2007
ROA ROE
Note Company Consolidated Financial Data
(including major consolidated entity -Compal
Communications)