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3Q08 Business OutlookJuly 7, 2008
2382.TW/2382 TTQuanta Computer Inc..
Safe Harbor NoticeSafe Harbor Notice
This presentation contains forward looking statements and is subject to significant risks and uncertainties. Actual results may differ materially from those in the forward looking statements.
2
Snapshot of QuantaSnapshot of Quanta
3
World’s largest notebook computer manufacturerNB shipment of ~32M units in 2007 or 30% market shareServing world leading consumer/IT customersMaintain number one position in notebook ODM
Strong NB growth accompanying solid revenue growthReport revenue of USD 22.8B in 2007Rank number 10 in Fortune Global 500 in computerRank 15 in Fortune World’s Most Admired Companies
R&D center in Taiwan with manufacturing in ChinaTotal employee of 42,000 worldwideGlobal fulfillment centers across the continents
Expanding Non-NB business in server, GPS and MP4 market
Main Operation BasesMain Operation Bases
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QRDC, Linkou, Taiwan
CSMC, Changshu, ChinaQSMC, Songjiang, China
Headquarters &RD Center30 minutesnorth ofCKS Airport
EMSManufacturing Center2 hoursWest ofPudong Airport
NB PCManufacturing
Center50 minutes
west ofPudong Airport
Worldwide Fulfillment, CTO & ServiceWorldwide Fulfillment, CTO & Service
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Fremont NashvilleShanghai
Taipei
Aachen
Changshu
Robust Portable PC DemandRobust Portable PC Demand
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472.5432.4393.8351.5310.0269.1Total
9.3%9.8%12.0%13.4%15.2%15.0%YoY Growth %
13.5%14.7%19.5%24.9%34.5%33.9%YoY Growth %
3.6%3.9%4.1%3.2%2.2%5.1%YoY Growth %
216.9
176.9
2010
248.7
183.7
2011
282.5181.6145.3108.0Portables
190.3169.9164.7161.1Desktop & x86 Server
2012200920082007
• Note: PCs include Desktop, Notebook, Ultra Portable, and x86 Server and do not include handhelds.
• Source: IDC, 2008
Worldwide PC Shipment & Growth Forecast, 2007-2012 (in MN units)
Portables lead the overall PC Market growth
Notebook PC shipment expected to surpass Desktop PC shipment in 2009
Top ODMs Gain SharesTop ODMs Gain Shares
7Taiwan wins shares in worldwide notebook manufacturing space and top-tier ODMs outpace industry growth
Expanding SegmentationExpanding Segmentation
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Worldwide Ultra-Low Cost Notebook ShipmentForecast
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2007 2008 2009 2010 2011 2012
Year
Ship
ment
in K
units
in K units
2007 2008 2009 2010 2011 2012Worldwide 430.0 3,581.1 5,052.1 6,326.8 7,831.1 9,191.9YoY Growth 733% 41% 25% 24% 17%
•Source: IDC, 2008
Consolidated Income Statement Consolidated Income Statement
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Consolidated
1.92.92.65.5
1.164,003
(1,662)5,912
5365,376
11,383206,429
1Q08
2.42.32.05.7
3.8612,920(3,143)12,2781,725
10,55330,421
537,6812006
43%
97%
87%
32%
45%
YOY2007NT$MN
(4,569)Tax
4,432Non-Op Income
18,455Net Income
3.1Pre-Tax Margin
5.33Basic EPS (NT$)
2.4Net Margin
2.5Op Margin5.2Gross Margin
Margin (%)
24,183Pre-Tax Income
19,751Op Income40,278Gross Profit
777,436Net Sales
• 1Q08 numbers have not been audited
• Estimated effective tax rate would be 22~24% in consolidated basis and ~20% for parent level for 2008
4,003
536
236
550(55)
(508)
314
(195)
1Q08
12,920
1,725
769
2,462115
(2,855)
1,234
(1,621)
2006
4,432Total Non-Op. Income
18,455
1,922
3,879(100)
(2,553)
1,284
(1,269)
2007
Interest Income
Interest Expense
Others
Net Income
Foreign ExchangeInvestment Income
Net Interest Income
All figures in NT$MN; numbers for 1Q08 are unaudited.
Consolidated Non-Op IncomeConsolidated Non-Op Income
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Consolidated Balance SheetConsolidated Balance Sheet
96,162
227,204
220,993
323,366
75,818
106,035
86,0301Q08
77,250
149,923
140,770
227,173
43,090
74,137
62,3752006
225,824Current Liabilities
94,743Shareholders’Equity
231,067Total Liabilities
325,810Total Assets
76,165Inventory
128,806A/R
66,366Cash & ST Investments
2007
All figures in NT$MN; numbers for 1Q08 are unaudited 11
Business UpdatesBusiness Updates
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Target 40 mn NB shipment for 2008
Expect 3Q NB unit growth ~20% QoQ
Macroeconomics mildly impact on NB demand
New opportunity in low cost segment as demand from second notebook, students and emerging market
Component tightness such as battery remains but with limited impact
Focus on operation efficiency
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TotalProfitability
TotalProfitability
Customer SatisfactionCustomer
SatisfactionInnovation
&Quality
Innovation&
Quality
Execution
Management CommitmentManagement Commitment
VerticalIntegration
ProductDiversification
Cost Control
Operation Optimization
Product DiversificationProduct Diversification
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Multimedia & Entertainment
Wireless & Networking
SMB & Enterprise
Mobile Computing
Home, Auto• Satellite Radio, STB
• MP4
• Handset
• Switch, Hub
• LCD PC, UMPC
• GPS
• Digital Photo Frame
• IP Phone
• Server, Storage
• NB, OLPC
Notebook Know-how underpins new product capabilities
Vertical IntegrationVertical Integration
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Steady in the progress, Q-BUS a joint venture with suppliers
Work on mechanical parts, such as plastic injection, tooling, casing and enclosures
Improve cost structure through in-house supply
QSMC for NB related production, while CSMC for consumer electronics, and both are expanding
Solid Sales and Profit GrowthSolid Sales and Profit Growth
16• Figures are consolidated.
Net Sales vs. Profitability
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2002 2003 2004 2005 2006 2007
Time
Net
Sale
s (N
T$M
N)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Net
Pro
fits
(N
T$M
N)
Net Sales Net Profits
0%
5%
10%
15%
20%
25%
30%
2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
ROE Pre-Tax ROE
ROE Well Above 20%ROE Well Above 20%
17
23.1%
28.0%
Dividend DistributionDividend Distribution
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Dividend History (NT$ per share)
Employee bonus shares: 70,000,000 sharesThe capitalization of retained earnings and issuance of
employee bonus shares will be 174,258,046 new shares
0.22.53.862006
0.22.53.372005
0.52.53.862004
0.33.55.332007
StockCashEPSYear
