HTC Investors

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Convening of an investor conference concerning Q3 09 Business Review
1.Date of the investor/press conference:2009/11/09

2.Location of the investor/press conference:Conference call

3.Financial and business related information:
3Q09 BUSINESS REVIEW:
(1)3Q revenue reached NT$34bn.
(2)3Q GPM was 32.3%.
(3)3Q OPEX ratio came better than guidance (15% ± 0.5%) at 13.9%; therefore, 3Q operating margin came at 18.6%, also better than 17.5% mid-point guidance.
* All the numbers above are based on unconsolidated financial statements.
 
BUSINESS ENVIRONMENT:
(1)HTC is in a favorable competitive position amid mobile OS platform landscape where we continue to dominate both WM (Windows Mobile) as well as Android platforms.
(2)As smart phone penetration further expands into end consumers, HTC gained strong brand awareness due to our leadership position within smart phone industry.
(3)US market continues to show strong growth momentum, though Europe market remain relatively weaker.
 
MANAGEMENT INITIATIVES:
(1)HTC continues to lead the innovation on WM and Android platforms by superior touch capability, HTC Sense UI, performance and attractive ID (industrial design) such as HD2 (WM), Hero and Droid Eris (Android).
(2)HTC is well positioned at fast growing US market by increasing shelf space from major carriers’ hero product launch at upcoming Christmas season, management aims to further strengthen partnership relation with US carriers from 2010 onward.
(3)Phase II branding process has been unveiled globally by mid Oct. and highlighted particularly at US as well as Europe activities. Management aims to build long term brand awareness in addition to drive growth momentum at this phase.
(4)Creative channel management has been planed and executed to increase consumer sell-through and further establish HTC brand awareness.
 
4Q09 BUSINESS OUTLOOK:
(1)4Q brand unit expects to grow 5%~6%YoY despite ODM shipment coming toward end of life; 4Q revenue expects at the range from NT$40bn to NT$42bn.
(2)GPM expects to be around 32.5%± 0.5%.
(3)OPEX ratio expects to be around 17%± 0.5%, due to higher marketing budget for the quarter.
* All the numbers above are based on unconsolidated financial statements.
 
2009 BUSINESS OUTLOOK:
(1)Revenue maintain from original guidance range and expects to decline mid single digit from the 2008 level.
(2)Gross margin comes in at upper level of guided range (30%~32%).
(3)OPEX ratio maintain from original guidance at around 15%.
* All the numbers above are based on unconsolidated financial statements.

4.Any other matters that need to be specified:The material for the investor conference is disclosed under corporate governance item on Market Observation Post system and HTC Corporation Website.