Slide 1: 2Q 2018 Investor Conference
ASUSTeK 2Q 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 • 2Q 2018 Financial Result • Business Highlights • Strategy & Outlook •Q&A 3 Confidential
Slide 4: 2Q 2018 Financial Result
2Q 2018 Financial Result 7 tS INSEARCH OF INCREDIBLE
Slide 5: 2Q 2018 Brand I/S
2Q 2018 Brand I/S (unaudited brand consolidated financials) in NT$ Mn 2018 2Q 2018 1Q QoQ 2017 2Q YoY Net Revenue 80,525 90,056 -11% 86,546 -7% COGS (70,291) (77,480) -9% (76,549) -8% Gross Profit 10,234 12,577 -19% 9,997 2% Operating Expenses (7,411) (8,517) -13% (8,252) -10% Operating Profit 2,823
Slide 6: 2Q 2018 Non-OP Items
2Q 2018 Non-OP Items (unaudited brand consolidated financials) Non-OP Items 2018 2Q 2018 1Q QoQ 2017 2Q YoY Interest Income (net) 391 300 30% 265 48% Investment Income (161) (144) -12% 10 -1664% Askey (612) (505) -21% (166) -270% Others 451 361 25% 176 156% Exchange Gain/(Loss) (1,407) 1,173 -220% 5
Slide 7: 2Q 2018 Brand B/S
2Q 2018 Brand B/S in NT$ Mn Jun 30, 2018 Mar 31, 2018 QoQ Jun 30, 2017 YoY Cash & equivalents 71,864 70,783 2% 65,250 10% Accounts receivable 69,830 65,917 6% 70,361 -1% Inventories 79,400 77,983 2% 88,813 -11% Current Assets 230,875 222,896 4% 231,496 -0.3% Long-term investments 66,973 72,997 80,79
Slide 8: Business Highlights
Business Highlights 7 tS INSEARCH OF INCREDIBLE
Slide 9: Product Mix
Product Mix 2Q 2018 1Q 2018 IOT IOT 4% 3% Component Component 21% 25% PC PC 60% 61% Mobile Mobile 15% 11% 9 Confidential
Slide 10: Region Mix
Region Mix 2Q 2018 1Q 2018 Americas Americas 24% 19% EURP EURP 29% 34% ASIA ASIA 47% 47% 10 Confidential
Slide 11: 3Q 2018 Business Outlook
3Q 2018 Business Outlook • PC QoQ +20% ± 5% • Mobile QoQ +50% ± 5% • Component QoQ +10~15% 11 Confidential
Slide 12: Strategy & Outlook
Strategy & Outlook 7 tS INSEARCH OF INCREDIBLE
Slide 13: Agility and Innovation
SUS ale & Innovation - Agility ~
Slide 14: Connected Service & New Retail
14 Connected Service & New Retail Po wm Smart Enterprise © alot (ABC)
Slide 15: Innovation * Design * Performance
15 2018 PC Innovation * Design * Performance ASUS Rev YoY 0~-10% Better Position (ASP) (TAM YoY 0~-5%)
Slide 16: ScreenPad intelligent touchpad
16 Gotothe beach 2n3t0 Have a meeting with Cathy By some sled source Daddy'sbithday (PC) ScreenPad™ The world’s 1% intelligent touchpad
Slide 17: Project Precog GPC
PROJECT PRECOG GPC Al Face Recognition « Al Object Recognition - Al Keyboard * Al Charging Stand Model - Tent Mode - Flat Mode - Book Mode 17
Slide 18: Commercial PC
18 Commercial PC Leading == (emia urciole Desktop Chromebook Performance Leading Thin & Light
Slide 19: Commercial PC
19 Commercial PC Focus ° Profitable Growth 2018 Profit YoY > 15%
Slide 20: ROG (2018)
ROG (2018) Trade off ? (Revenue ° Profit ) Rev YoY >10%
Slide 21: Republic of Gamers
21 EPUBLIC OF GAMERS Pursuit of Leadership
Slide 22: Empowering Luxury For Everyone
Empowering Luxury For Everyone Rog Phone Ultimate Luxury Premier Luxury call A | RUG PHONE Zenfone Zenfone Max Pro Hero Model + Hero Country 22
Slide 23: 2018 Phone
2018 Phone Qty YoY 15~20% Profitable in O4
Slide 24: Revenue Growth (MB)
Revenue Growth (MB) 2018 Rev YoY > TAM (TAM YoY -4%)
Slide 25: World No.1 motherboard brand
25 World No.1 motherboard brand ROG Strix ROG MAXIMUS PRIME 2370-A 2370 Plus Best-selling + Easytouse + Stable + Trusted
Slide 26: Revenue Growth (VGA)
26 Revenue Growth (VGA) 2018 Rev YoY > TAM (TAM YoY 0~1%)
Slide 27: Design for ASUS Future
27 Design for ASUS Future Bb tl Transformation