Slide 1: ASUSTeK 4Q 2018 Investor Conference
ASUSTeK 4Q 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 • 4Q 2018 Financial Result • Business Highlights • Strategy & Outlook •Q&A 3 Confidential
Slide 4: 4Q 2018 Financial Result
4Q 2018 Financial Result 7 tS INSEARCH OF INCREDIBLE
Slide 5: 4Q 2018 Brand P&L (including discontinued smartphone models)
4Q 2018 Brand P&L (including discontinued smartphone models) (unaudited brand consolidated financials) in NT$ Mn 2018 4Q 2018 3Q QoQ 2017 4Q YoY Net Revenue 88,099 93,771 -6% 103,944 -15% COGS (84,446) (82,814) 2% (89,719) -6% Gross Profit 3,653 10,958 -67% 14,225 -74% Operating Expenses (9,998) (8,
Slide 6: 4Q 2018 Brand P&L (pro forma – excluding old phones)
4Q 2018 Brand P&L (pro forma – excluding old phones) (unaudited brand consolidated financials) in NT$ Mn 2018 4Q Phone W/O Phone Net Revenue 88,099 8,646 79,453 COGS (84,446) (14,844) (69,603) Gross Profit 3,653 (6,197) 9,850 Operating Expenses (9,998) (2,486) (7,511) Operating Profit* (6,345) (8,68
Slide 7: 4Q 2018 Brand Non-OP Items
4Q 2018 Brand Non-OP Items (unaudited brand consolidated financials) Non-OP Items 2018 4Q 2018 3Q QoQ 2017 4Q YoY Interest Income (net) 269 298 -10% 219 23% Investment Income 517 (496) 204% (206) 352% Askey (319) (777) 59% (455) 30% Others 837 282 197% 250 235% Exchange Gain/(Loss) 514 (279) 284% 96
Slide 8: 4Q 2018 Brand Balance Sheet
4Q 2018 Brand Balance Sheet in NT$ Mn Dec 31, 2018 Sep 30, 2018 QoQ Dec 31, 2017 YoY Cash & equivalents 55,773 62,449 -11% 67,377 -17% Accounts receivable 75,273 82,717 -9% 75,223 0% Inventories 86,694 85,618 1% 76,110 14% Current Assets 226,428 238,396 -5% 227,154 -0.3% Long-term investments 64,515
Slide 9: 2018 Brand P&L (including discontinued smartphone models)
2018 Brand P&L (including discontinued smartphone models) in NT$ Mn 2018 1~12 % 2017 1~12 % YoY Net Revenue 352,452 100.0% 392,899 100.0% -10% COGS (315,030) (89.4%) (340,562) (86.7%) -7% Gross Profit 37,422 10.6% 52,337 13.3% -28% Operating Expenses (34,641) (9.8%) (39,819) (10.1%) -13% Operating P
Slide 10: 2018 Brand P&L (pro forma – excluding old phones)
2018 Brand P&L (pro forma – excluding old phones) (unaudited brand consolidated financials) in NT$ Mn 2018 1~12 Phone 2018 W/O Phone Net Revenue 352,452 37,363 315,088 COGS (315,030) (43,661) (271,369) Gross Profit 37,422 (6,298) 43,720 Operating Expenses (34,641) (7,864) (26,777) Operating Profit*
Slide 11: Business Highlights
Business Highlights 7 tS INSEARCH OF INCREDIBLE
Slide 12: Product Mix
Product Mix 4Q 2018 2018 Others Others 5% 7% Component Component 21% 23% PC PC 74% 70% * Excluding revenue from old smartphone models 12Confidential
Slide 13: Region Mix
Region Mix 4Q 2018 2018 Americas Americas 24% EURP 22% EURP 34% 32% ASIA ASIA 42% 46% * Excluding revenue from old smartphone models 13Confidential
Slide 14: 1Q 2019 Business Outlook
1Q 2019 Business Outlook • PC QoQ -5%~-10% • Component QoQ -5% 14Confidential
Slide 15: Strategy & Outlook
Strategy & Outlook 7 tS INSEARCH OF INCREDIBLE
Slide 16: Key Business Objectives
Key Business Objectives Transformation • PC business under pressure in 1H 2019 due to key component shortage, inventory adjustment on cryptocurrency demand, and an unstable economy with trade conflicts. • Smartphone business transformation to be completed in 1H 2019. ROG phone created a new product
Slide 17: Q&A
Q&A f= >UJ—> IN SEARCH OF INCREDIBLE