Morgan Stanley Taiwan Discovery Forum September, 2008 Safe Harbor Statement Except for facts in respect of historical matters and figures, the statements in this release are "forward-looking statements“. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance, financial condition or results of operations of AAT (“the Company”) to be materially different from what may be implied by such forward-looking statements. The financial forecasts and forward-looking statements in this release reflect the current belief of the Company as of the date of this release and the Company undertakes no obligation to update these forecasts and forward-looking statements for events or circumstances that occur subsequent to such date. 2 Company Profile www.aatech.com.tw Establishment: March 1999 Capital: NT$398 mn (~US$12.6 mn) Listing: July 2006, Taiwan OTC Ticker: 3438.tw Market Cap: ~NT$3.38bn (~US$107mn) Employee: 106 (as of August, 2008) Business Nature: Fabless IC design house Product: Power Management ICs Headquarters: 2F, No. 17, Industry E. 2nd Road, Science-Based Industrial Park, Hsinchu 300, Taiwan. Tel:(886)-3-563-3125 Fax:(886)-3-563-3126 Taipei Branch Office: 10F, No. 205, Sec. 3, Beishin Rd, Shindian City, Taipei County 231, Taiwan Tel:(886)-2-8913-2268 Fax:(886)-2-8913-2269 3 AAT Product Application 4 Sales Breakdown by Applications (1H 2008) TFT DSC GPS Networking DSC 11.2% Others GPS Networking 1.5% 1.2% Others 2.7% TFT-LCD Panel 83.4% 5 Main Customer List 6 Partner List Foundry: Assembly/Testing: Distributors: Banks: 7 Winning Strategy P-Q-R-S-T (Application Specific ICs for Customers’ New Products) (Cost Effective Solutions) (Competitive Prices) (Guaranteed After Services) 8 (Excellence in Quality) (Trusted by Many Well-known Companies) Significant Achievements 9 Historical Monthly Revenue Unit: 1,000 NTD 2008 2007 160,000 140,144 140,000 120,000 112,512 105,561 112,258 109,141 125,503 116,916 113,652 110,713 104,362 102,135 94,710 98,278 100,000 84,805 81,023 71,203 80,000 67,431 67,572 70,608 60,000 40,000 20,000 0 Jan. 10 Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. AAT Income Statement QoQ NTD Thousand Q2 2008(Audited) Net sales Q1 2008(Audited) QoQ% 331,471 100.0% 319,930 100.0% 3.6% (199,515) -60.2% (192,130) -60.1% 3.8% Gross margin 131,957 39.8% 127,800 39.9% 3.3% Total operating expenses (58,010) -17.5% (45,717) -14.3% 26.9% 73,947 22.3% 82,083 25.7% -9.9% Non-operating income 5,342 1.6% 3,988 1.2% 34.0% Non-operating expense (986) -0.3% (39,056) -12.2% -97.5% 78,303 23.6% 47,015 14.7% 66.5% 2,024 0.6% 9,833 3.1% -79.4% 80,327 24.2% 56,848 17.8% 41.3% COGS Operating profit EBIT Income tax Net earnings EPS(after tax) 11 2.05 1.45 41.3% AAT Income Statement YoY NTD Thousand 1H 2008(Audited) Net sales 1H 2007(Audited) YoY% 651,401 100.0% 443,441 100.0% 46.9% (391,644) -60.1% (262,973) -59.3% 48.9% Gross margin 259,757 39.9% 180,468 40.7% 43.9% Total operating expenses (103,727) -15.9% (56,458) -12.7% 83.7% 156,030 24.0% 124,010 28.0% 25.8% Non-operating income 9,330 2.8% 10,260 2.3% -9.1% Non-operating expense (40,043) -12.1% (2,883) -0.7% - EBIT 125,317 37.8% 131,387 29.6% -4.6% 11,858 3.6% (9,615) -2.2% -223.3% 137,175 21.1% 121,772 27.5% 12.6% COGS Operating profit Income tax Net earnings EPS(after tax) EPS(after tax)12 Weighted Adj. 3.50 4.11 3.05 AAT Balance Sheet QoQ & YoY NTD Thousand 2008.6.30 2008.3.31 QoQ% Cash and equivalents 1,031,804 795,516 29.7% 910,550 Inventories 99,607 102,655 -3.0% 116,735 1,512,840 1,237,740 22.2% 1,322,889 Long term debtsCB 142,770 - Total Liabilities 637,992 160,742 296.9% 380,522 Common Share 379,570 379,570 0.0% 296,000 Shares Bought Back 135,052 132,582 1.9% Shareholder's equity 874,848 1,076,998 -18.8% 27.3% 20.6% Total Assets ROE 13 2007.6.30 - 942,367 22.9% Average Selling Price (ASP) NT$16 NT$12 NT$8 NT$4 NT$0 Jan Feb Mar Apr 2006ASP 14 May Jun 2007ASP Jul Aug 2008ASP Sep Oct Nov Dec Sales Breakdown by Applications QoQ Q2 2008 Networking Others 1.5% 2.7% GPS 1.2% DSC 11.2% TFT-LCD Panel 83.4% 15 Q1 2008 Networking 2.2% GPS 0.4% Others 6.2% DSC 14.3% TFT-LCD Panel 76.9% Sales Breakdown by Application YoY Q2 2008 Networking Others 1.5% 2.7% GPS 1.2% DSC 11.2% TFT-LCD Panel 83.4% 16 Q2 2007 Networking 1.5% GPS 6.0% Others 1.3% DSC 10.9% TFT-LCD Panel 80.3% Sales Breakdown by Geographic Areas QoQ Q2 2008 China 22.8% Taiwan 77.2% 17 Q1 2008 China 19.29% Taiwan 80.71% Q&A 18