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Merrill Lynch "Taiwan, Technology & Beyond"

Conference

Merrill Lynch "Taiwan, Technology & Beyond"

Conference MPI Co. (6223 TT)MPI Co. (6223 TT)

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AgendaAgenda

• 2009 outlook of Semi-conductor

• Peer group analysis

• MPI Co. 2008 F/S analysis

• Business Units Diagnosis

• Action Plan in response of financial crisis

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2009 Outlook of Semi-conductor2009 Outlook of Semi-conductor

Q1’09 Q1’09 2009

QoQ % YoY % NTD$(k millions)

%

IC Ind. (17.9) (36.3) 9845 (26.9)

IC Design (13.5) (24.7) 3030 (19.2)

IC Manu. (20.9) (43.6) 4350 (33.5)

Foundry* (24.0) (43.7) 3010 (32.6)

IC Pack. (18.1) (34.5) 1680 (24.2)

IC Test.* (16.7) (32.7) 785 (18.7)

Avg. (18.5) (35.9) (25.9)

Source: ITRI, Digitimes 2009/2

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AgendaAgenda

• 2009 outlook of Semi-conductor

• Peer group analysis

• MPI Co. 2008 F/S analysis

• Business Units Diagnosis

• Action Plan in response of financial crisis

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Revenue by QuarterRevenue by Quarter

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FFI MJC JEM TCL MPI SV

NT$ Million

08Q1

08Q2

08Q3

08Q4

P1 ： same quarter period in all company. Ex: Q1= 2008.01~2008.03.

P2 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P3 ： SV probe in 100% wholly own by Ellipsiz, an semi-conductor equipment maker, from 2006.

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Revenue by YearRevenue by Year

12,184 10,164

4,824 4,1271,450

4,593

15,252

10,941

4,286 4,857

1,708

4,347

6,936

11,231

3,963 4,074

1,946

3,973

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FFI MJC JEM TCL MPI SV

NT$ Million

2008

2007

2006

P1 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P2 ： SV probe in 100% wholly own by Ellipsiz, an semi-conductor equipment maker, from 2006.

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By Gross MarginBy Gross Margin

43% 43%

35%33%

0%

10%

20%

30%

40%

50%

60%

FFI MJC JEM TCL MPI SV

(%)

08Q1

08Q2

08Q3

08Q4

P1 ： same quarter period in all company. Ex: Q1= 2008.01~2008.03.

P2 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P3 ： SV probe in 100% wholly own by Ellipsiz, an semi-conductor equipment maker, from 2006.

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Operation Margin by QuarterOperation Margin by Quarter

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

(%)

08Q1

08Q2

08Q3

08Q4

P1 ： same quarter period in all company. Ex: Q1= 2008.01~2008.03.

P2 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P3 ： SV probe in 100% wholly own by Ellipsiz, an semi-conductor equipment maker, from 2006.

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Net Profit Before Income TaxNet Profit Before Income Tax

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

FFI MJC JEM TCL MPI

(%)

08Q1

08Q2

08Q308Q4

P1 ： same quarter period in all company. Ex: Q1= 2008.01~2008.03.

P2 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P3 ： No SV information.

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-80%

-60%

-40%

-20%

0%

20%

40%

FFI MJC JEM TCL MPI SV

08Q1

08Q2

08Q3

08Q4

P1 ： same quarter period in all company. Ex: Q1= 2008.01~2008.03.

P2 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P3 ： SV probe in 100% wholly own by Ellipsiz, an semi-conductor equipment maker, from 2006.

Net Profit After Income TaxNet Profit After Income Tax

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2,107 1,033

15,252

6,7984,286

2,1021,206

1,962

6,936

7,478

3,963

1,550

1,067

1,335

2,5504,8245,247

12,184

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FFI MJC JEM TCL MPI SV

NT$ Million

2008

2007

2006

P.C Revenue by YearP.C Revenue by Year

P1 ： Exchange rate: 1 dollar = NT 33 ; 1 JPY = NT 0.3; 1SGD = NT 22

P2 ： SV probe in 100% wholly own by Ellipsiz, an semi-conductor equipment maker, from 2006.

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• 2009 outlook of Semi-conductor

• Peer group analysis

• MPI Co. 2008 F/S analysis

• Business Units Diagnosis

• Action Plan in response of financial crisis

AgendaAgenda

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• 2009 outlook of Semi-conductor

• Peer group analysis

• MPI Co. 2008 F/S analysis

• Business Units Diagnosis

• Action Plan in response of financial crisis

AgendaAgenda

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Semi-conductor: Probe CardSemi-conductor: Probe Card

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P.C – P.C – Pin-Count ShipmentPin-Count Shipment

0

50,000

100,000

150,000

200,000

250,000

300,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Pin

2006

2007

2008

16

50%

57%

51% 52%

31%

41%

28%30%

17%

8%

15%

20%

0%

10%

20%

30%

40%

50%

60%

Q1'08 Q2'08 Q3'08 Q4'08

%

LCD

Logic

Memory

P.C P.C – 2008 Breakdown of Product Mix– 2008 Breakdown of Product Mix

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P.C – P.C – 2008 Top 10 Customers2008 Top 10 Customers

Design HousesDesign Houses FoundriesFoundries Testing HousesTesting Houses

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P.C P.C - B/B Ratio- B/B Ratio

0%

20%

40%

60%

80%

100%

120%

140%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg.Month

%

2007

2008

2009

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LED: Prober & SorterLED: Prober & Sorter

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LED- LED- 2008 Shipment Monthly2008 Shipment Monthly

0

5

10

15

20

25

30

35

40

45

50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

PC

Shipment

P.O.

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LED- LED- 2008 by Geography and Product2008 by Geography and Product

China20%

Korea11%

USA1%

Taiwan68%

Taiwan China Korea USA

by Geographyby Geographyby Geographyby Geography by Productby Productby Productby Product

3492

6854

10 6

10

0%

20%

40%

60%

80%

100%

Q1 Q2 Q3 Q4 Season

%

Sorter

Prboer

PC

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LEDLED

LED-Auto Taping Machines

PT-350 TAPING

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Semi-Automatic Probe Station

LEDA-PT120 PROBER

LEDLED

24

LEDA-PNP

M7600 Fully-Auto Mapping Sorter

LEDLED

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LED LED – 2008 Top 10 Customers– 2008 Top 10 Customers

TaiwanTaiwan ChinaChinaKoreaKorea

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Solar: Ingot SlicingSolar: Ingot Slicing

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0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month

Pos

Danen

SAS

Motech

FYO

GET

DDK

SPI

S F

Ishii

Solar- Solar- 2008 Shipment Monthly2008 Shipment Monthly

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SolarSolar – 2008 by Geography – 2008 by Geography

US1%

China3%

Japan45%

Taiwan51%

Japan China US Taiwan

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• 2009 outlook of Semi-conductor• Peer group analysis• MPI Co. 2008 F/S analysis• Business Units Diagnosis• Action Plan in response of financial crisis

AgendaAgenda

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Action PlansAction Plans

• Operation Cost reduction

• Non-paid vocations (exchange with overtime)

• Continue R&D investment on next generation Products (eg. RF P.C ... etc)

• Expand targeting Markets (eg. Singapore, US and Europe)