Contact Information Spokesperson: Name: David Ku Title: Chief Financial Officer TEL: +886 (0)3-567-0766 Fax: +886 (0)3-578-7610 Email: [email protected] Deputy Spokesperson: Name: Jane Chen Title: Director, Financial Division TEL: +886 (0)3-567-0766 Fax: +886 (0)3-578-7610 Email: [email protected] MediaTek Inc. Headquarters: Address: No. 1, Dusing Rd. 1, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C., 300 TEL: +886 (0)3-567-0766 MediaTek Inc. Taipei Office: Address: No. 15, Lane 91, Sec. 1, Neihu Rd., Neihu District, Taipei, Taiwan, R.O.C., 114 TEL: +886 (0)2-2659-8088 Transfer Agent: Company: Chinatrust Commercial Bank, Corporate Trust Service Department Address: 5F, No. 83, Chungching S. Rd., Sec. 1, Taipei, Taiwan, R.O.C. Website: http://ecorp.ctbcbank.com/cts/index.jsp TEL: +886-(0)2-6636-5566 Independent Auditor: Company: Ernst & Young Auditors: Shao-Pin Kuo, Chih-Lai Wang Address: 9F, No.333, Keelung Rd., Sec. 1, Taipei, Taiwan, R.O.C. TEL: +886-(0)2-2757-8888 Website: http://www.ey.com MediaTek Inc. Website: Website: http://www.mediatek.com MediaTek Inc. | 2014 Annual Report 2 2014 MediaTek Annual Report Table of Contents I. Letter to Shareholders .................................................................................................................................................................. 5 II. Company Profile .............................................................................................................................................................................. 7 1. MediaTek Company Profile........................................................................................................................................ 7 2. Milestones .......................................................................................................................................................................... 7 III. Corporate Governance................................................................................................................................................................ 11 1. Organization ..................................................................................................................................................................... 11 2. Directors and Supervisors ....................................................................................................................................... 13 3. Management Team ..................................................................................................................................................... 19 4. Corporate Governance Report ............................................................................................................................. 22 5. .................................................................. 39 6. Net Changes in Shareholding .............................................................................................................................. 40 7. Top 10 Shareholders Who are Related Parties to Each Other ............................................................ 41 8. Long-Term Investment Ownership .................................................................................................................... 41 IV. Capital and Shares ..................................................................................................................................................................... 42 1. Capital and Shares ...................................................................................................................................................... 42 2. Status of Corporate Bonds ................................................................................................................................... 46 3. Status of Preferred Stocks .................................................................................................................................... 46 4. Status of GDR/ADR .................................................................................................................................................... 46 5. Status of Employee Stock Option Plan .......................................................................................................... 47 6. Status of New Employees Restricted Stock Issuance: ......................................................................... 48 7. Status of New Shares Issuance in Connection with Mergers and Acquisitions ...................... 49 8. Financing Plans and Implementation ............................................................................................................ 50 V. Business Activities ....................................................................................................................................................................... 51 1. Business Scope .............................................................................................................................................................. 51 2. Market, Production, and Sales Outlook .......................................................................................................... 57 3. Employees ....................................................................................................................................................................... 63 4. Important Contracts ................................................................................................................................................. 64 VI. Corporate Social Responsibility .......................................................................................................................................... 66 MediaTek Inc. | 2014 Annual Report 3 1. Corporate Promise ......................................................................................................................................................66 2. Social Participation ....................................................................................................................................................69 3. Environmental Efforts.............................................................................................................................................. 72 VII. Financial Status, Operating Results and Status of Risk Management ........................................................... 75 1. Financial Status ........................................................................................................................................................... 75 2. Operating Results ....................................................................................................................................................... 77 3. Cash Flow Analysis ..................................................................................................................................................... 79 4. Major Capital Expenditure ..................................................................................................................................... 80 5. Investment Policies ................................................................................................................................................... 80 6. Risk Management ........................................................................................................................................................81 7. Other Material Events.............................................................................................................................................. 86 VIII. Special Disclosure ................................................................................................................................................................... 87 1. Summary of Affliated Companies ..................................................................................................................... 87 2. Private Placement Securities .............................................................................................................................. 101 3. Holding or Disposition of MediaTek Stocks by Subsidiaries .............................................................. 102 4. Stated in Item 2 Paragraph 2 of Article 36 of Securities and Exchange Law of Taiwan .............. 102 5. Other Necessary Supplement............................................................................................................................ 102 IX. Financial Information ............................................................................................................................................................. 103 1. Condensed Balance Sheets ................................................................................................................................ 103 2. Condensed Statements of Comprehensive Income / Statements of Income ....................... 106 3. from 2010 to 2014 ........................................................................................................... 107 4. Five-Year Financial Analysis ............................................................................................................................... 108 5. .................................................................................................................................. 113 6. Financial Statements and Ind MediaTek & Subsidiaries (Page F1 - Page F95)..........................................................................................................................................................................