1

2

• Consolidated financials include: DEI + DIH + DNI – Inter-company

• Interim consolidated numbers are internal figures and reviewed by CPA

• Consolidated numbers are audited only at yearend

3

2004 First Quarter Results

4

12.4 12.3 11.912.9

11.1

1Q03 2Q03 3Q03 4Q03 1Q04

RevenuesRevenuesUnit: NT$ billion

5

42%

11%14%

7%

22%

4%

PS 2

11%

NW

11%

VD

7%

CP

25%PS1

40%

EM

6%

4Q03 1Q04

Revenues by ProductRevenues by Product

6

Gross ProfitGross ProfitUnit: NT$ billion & % of sales

2.73 2.60 2.78 2.482.50

22.3%21.6%21.8%20.4%21.9%

1Q03 2Q03 3Q03 4Q03 1Q04

7

R&D ExpenseR&D ExpenseUnit: NT$ billion & % of sales

0.72 0.82 0.80 0.80 0.73

5.8%

6.7% 6.7%6.20%

6.60%

1Q03 2Q03 3Q03 4Q03 1Q04

8

SG&A ExpenseSG&A ExpenseUnit: NT$ billion & % of sales

0.82 0.74 0.78 0.800.84

6.6%6.0%

6.6% 6.5%

7.2%

1Q03 2Q03 3Q03 4Q03 1Q04

9

Operating ExpenseOperating ExpenseUnit: NT$ billion & % of sales

1.55 1.56 1.58 1.63 1.54

12.4% 12.7%13.3%

12.7%

13.8%

1Q03 2Q03 3Q03 4Q03 1Q04

10

Operating ProfitOperating ProfitUnit: NT$ billion & % of sales

0.951.15

1.020.941.18

9.5%

7.7%8.5% 8.9% 8.5%

1Q03 2Q03 3Q03 4Q03 1Q04

11

Non-Operating ProfitNon-Operating ProfitUnit: NT$ billion & % of sales

-0.003

(0.14)

0.24

0.460.54

4.2%

2.0%

0.0% 4.4%

-1.1%

1Q03 2Q03 3Q03 4Q03 1Q04

12

Non-Operating Income BreakdownNon-Operating Income BreakdownUnit: NT$ million

1Q04

Disposal gain 106Investment income 38Interest income 71Cash Dividend 2F/X 370Others (123)Total 464

13

Net Income Before TaxNet Income Before TaxUnit: NT$ billion & % of sales

1.011.41

1.261.48

1.18

9.5%12.0% 10.6%

7.9%

12.7%

1Q03 2Q03 3Q03 4Q03 1Q04

14

4Q03 1Q04

Net income before tax 1,007 1,411Tax benefit 5 457Minority interest 100 (5)Net income after tax 1,112 1,863

Tax Benefit & Minority InterestTax Benefit & Minority InterestUnit: NT$ million

15

Net Income After TaxNet Income After TaxUnit: NT$ billion & % of sales

1.11

1.86

1.20

1.82

1.08

8.7%

14.8%

10.1%

16.7%

8.6%

1Q03 2Q03 3Q03 4Q03 1Q04

16

EPS (unit: NT$)EPS (unit: NT$)

0.73

1.23

0.81 0.75

1.26

1Q03 2Q03 3Q03 4Q03 1Q04

* ALL EPS fully diluted at current shares outstanding of 1,480 million shares.

17

FY2004 Consolidated Financial Forecast

18

2004 DEI forecast2004 DEI forecast

• Sales 44,070• Operating income 178• Non-operating income 5,791• Non-operating expense 57• Pre-tax profit 5,913• Tax credit 456• Net income 6,369

Unit: NT$ million

19

49.54254.815

2003A 2004F

Consolidated RevenuesConsolidated RevenuesUnit: NT$ billion

+10.6%

20

PS 1

40%

PS 2

12%

VD

8%

CP

23%

NW

12%

EM

5%

39%

10%15%

20%

12%4%

Revenues by ProductRevenues by Product2003A 2004F

21

Gross ProfitGross ProfitUnit: NT$ billion & % of sales

10.61211.967

21.8%

21.4%

2003A 2004F

22

R&D ExpenseR&D ExpenseUnit: NT$ billion & % of sales

3.1483.301

6.0%6.4%

2003A 2004F

23

SG&A ExpenseSG&A ExpenseUnit: NT$ billion & % of sales

3.1753.500

6.4%6.4%

2003A 2004F

24

Operating ExpenseOperating ExpenseUnit: NT$ billion & % of sales

6.3236.802

12.4%12.8%

2003A 2004F

25

4.2905.167

9.4%8.7%

2003A 2004F

Operating ProfitOperating ProfitUnit: NT$ billion & % of sales

+20.5%

26

Non-Operating ProfitNon-Operating ProfitUnit: NT$ billion & % of sales

0.632

0.948

1.8%1.3%

2003A 2004F

27

Non-Operating Income BreakdownNon-Operating Income BreakdownUnit: NT$ million

2003A 2004FInvestment disposal 168 107 Investment income (351) 287 Interest income 159 158 Cash dividend 52 30 F/X 190 358 Others 412 9Total 632 948

28

5.2156.369

11.6%10.5%

2003A 2004F

Net Income After TaxNet Income After TaxUnit: NT$ billion & % of sales

+22.1%

29

3.524.30

2003A 2004F

Pre-diluted EPS *Pre-diluted EPS *

* Current shares outstanding is 1,480 million shares.

30

3.294.02

2003A 2004F

Diluted EPS *Diluted EPS *

* Using assumed capital of 1,586 million shares.

31

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