Slide 1: 3Q 2018 Investor Conference
ASUSTeK 3Q 2018 Investor Conference
Slide 2: Disclaimer
Disclaimer ASUSTeK’s presentation contains forward-looking statements subject to significant risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. The forward-looking statements in this release reflect the current belief of ASUS as of t
Slide 3: Agenda
Agenda • 3Q 2018 Financial Result • Business Highlights • Strategy & Outlook •Q&A 3 Confidential
Slide 4: 3Q 2018 Financial Result
3Q 2018 Financial Result 7 tS INSEARCH OF INCREDIBLE
Slide 5: 3Q 2018 Brand Income Statement
3Q 2018 Brand Income Statement (unaudited brand consolidated financials) in NT$ Mn 2018 3Q 2018 2Q QoQ 2017 3Q YoY Net Revenue 93,771 80,525 16% 104,203 -10% COGS (82,814) (70,291) 18% (89,240) -7% Gross Profit 10,958 10,234 7% 14,963 -27% Operating Expenses (8,716) (7,411) 18% (11,969) -27% Operati
Slide 6: 3Q 2018 Non-OP Items
3Q 2018 Non-OP Items (unaudited brand consolidated financials) Non-OP Items 2018 3Q 2018 2Q QoQ 2017 3Q YoY Interest Income (net) 298 391 -24% 190 57% Investment Income (496) (161) -208% 148 -434% Askey (777) (612) -27% (293) -165% Others 282 451 -38% 441 -36% Exchange Gain/(Loss) (279) (1,407) 80%
Slide 7: 3Q 2018 Brand Balance Sheet
3Q 2018 Brand Balance Sheet in NT$ Mn Sep 30, 2018 Jun 30, 2018 QoQ Sep 30, 2017 YoY Cash & equivalents 62,449 71,864 -13% 52,873 18% Accounts receivable 82,717 69,830 18% 79,660 4% Inventories 85,618 79,400 8% 84,314 2% Current Assets 238,396 230,875 3% 223,684 6.6% Long-term investments 69,237 66,
Slide 8: Business Highlights
Business Highlights 7 tS INSEARCH OF INCREDIBLE
Slide 9: Product Mix
Product Mix 3Q 2018 2Q 2018 IOT IOT 4% 4% Component Component 18% 21% PC PC 62% 60% Mobile Mobile 16% 15% 9 Confidential
Slide 10: Region Mix
Region Mix 3Q 2018 2Q 2018 Americas Americas 22% EURP 24% EURP 27% 29% ASIA ASIA 51% 47% 10 Confidential
Slide 11: 4Q 2018 Business Outlook
4Q 2018 Business Outlook • PC QoQ flattish • Mobile QoQ 0% ~ +5% • Component QoQ 0% ~ -5% 11 Confidential
Slide 12: Strategy & Outlook
Strategy & Outlook 7 tS INSEARCH OF INCREDIBLE
Slide 13: Smart Enterprise and Connected Service
al} Smart Enterprise © 0 Connected Service (Data)
Slide 14: Two Pronged Strategy
Two Pronged Strategy 14 Confidential
Slide 15: Sustain Current Business
15 Sustain Current Business 4 » Design - Innovation - Talents - Computing & Power Performance N / (- > Scale - Agility Gaming / Eco system "a : \ The trade war between China & the US Intel CPU Shortage L Peers price pressure )
Slide 16: Strategy to Current Business
16 BU Strategy to Current Business Build value added team Build research team Focus More talents Reduce OPEX Keep profit bottom line
Slide 17: Catch Future Trend
17 Catch Future Trend Connected Service (Data) Al Cloud Computing
Slide 18: Q&A
Q&A f= >UJ—> IN SEARCH OF INCREDIBLE