ASUSTeK

2Q 2013 Investor Conference

1

Disclaimer
ASUSTeKs 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 the date of this
release, we undertake no obligation to update these
forward-looking statements for new information,
future events, or otherwise.

Agenda
2Q 2013 Financial Result
Business Highlights
Strategy & Outlook
Q&A

2Q 2013 Financial Result

2Q 2013 Brand I/S (QoQ)

(unaudited brand consolidated financials)

in NT$ Mn
Net Revenue
COGS
Gross Profit
Operating Expenses
Operating Income

2Q 2013

1Q 2013

QoQ

89,663

100.0%

105,157

100.0%

-15%

(77,535)

(86.5%)

(91,282)

(86.8%)

-15%

12,129

13.5%

13,875

13.2%

-13%

(8,186)

(9.1%)

(8,314)

(7.9%)

-2%

3,942

4.4%

5,561

5.3%

-29%

Non-OP Items

1,883

2.1%

1,636

1.6%

15%

Pre-Tax Income

5,825

6.5%

7,197

6.8%

-19%

(1.1%)

-7%

5.8%

-21%

Tax
Net Income

(1,060)

(1.2%)

4,765*

5.3%

(1,144)
6,053

* EPS $6.3 based on 752.8m shares

2Q 2013 Brand I/S (YoY)

(unaudited brand consolidated financials)

in NT$ Mn
Net Revenue
COGS
Gross Profit
Operating Expenses
Operating Income

2Q 2013

2Q 2012

YoY

89,663

100.0%

94,197

100.0%

-5%

(77,535)

(86.5%)

(80,787)

(85.8%)

-4%

12,129

13.5%

13,410

14.2%

-10%

(8,186)

(9.1%)

(7,960)

(8.5%)

3%

3,942

4.4%

5,450

5.8%

-28%

Non-OP Items

1,883

2.1%

845

0.9%

123%

Pre-Tax Income

5,825

6.5%

6,295

6.7%

-7%

(1.6%)

-28%

5.1%

-1%

Tax
Net Income

(1,060)
4,765

(1.2%)
5.3%

(1,478)
4,817

2Q 2013 Brand Non-OP Items

Non-OP Items
Interest Income (net)
Investment Income
Pegatron

2Q 2013

1Q 2013

QoQ

2Q 2012

YoY

127

72

76%

102

25%

(131)

394

-133%

329

-140%

557

188

Ask ey

(151)

(182)

17%

Others

21

19

7%

142

-86%

246

1,013

-76%

204

21%

Exchange Gain / (Loss)

Disposal Gain
Other Income (net)
Total Non-OP items

(1)

-12597%

1,462

178

157

13%

210

-16%

1,883

1,636

15%

845

123%

2Q 2013 Brand B/S

in NT$ Mn

Jun 30, 2013

Mar 31, 2013

QoQ

Jun 30, 2012

YoY

Cash & cash equivalents

61,237

49,825

23%

37,346

64%

Accounts receivable

49,947

57,438

-13%

57,013

-12%

Inventories

78,648

70,135

12%

70,974

11%

198,136

185,277

7%

177,712

11%

51,208

52,195

50,464

Fixed assets

4,262

4,345

4,487

Other assets

6,097

5,945

726

Total Assets

259,704

247,762

5%

233,390

11%

47,899

42,262

13%

47,587

1%

Current Liabilities

127,060

108,184

17%

113,999

11%

Total Liabilities

132,029

113,337

16%

118,307

12%

7,528

7,528

127,675

134,425

Current Assets
Long-term investments

Accounts payable

Paid-in capital
Stockholders' equity

7,528
-5%

115,082

Days of Inventory

93

70

80

Days of AR

51

50

55

Days of AP

61

46

54

CCC Days

82

74

82

11%

*CCC calculation based on net ending inventory balance and quarterly unaudited consolidated brand financials

Business Highlights

Product Mix
2Q 2013

1Q 2013

10

Region Mix
2Q 2013

1Q 2013

11

3Q 2013 Shipment Outlook

targets

1Q 2013

2Q 2013

3Q 2013

NB/hybrid

4.7m

4.1m

4.3m

EPAD

3.0m

2.0m

3.5m

MB

5.0m

5.0m

5.5m

12

Strategy & Outlook

13


Transformation to a new plateau
in a changing era

Aiming 3-in-1 Market

SoLoMoPersonalize

2012-2017 3-in-1 Device TAM

Unit: Million

Desktop & Mobile PC

2-in-1 (PC Tablet)

Source: Gartner, Q2 2013

Tablet

Smartphone

3-in-1 (PC Tablet Smartphone)

2013 ASUS 2-in-1 Revenue Y/Y

2-in-1 (NB Tablet)
40%

2-in-1 (Mobile PC Tablet)

30%

33%

22%

30%

20%

20%

17%

10%

10%

7%

0%
2%

0%

-10%

Q113

Q213

1H13

-7%

Q113

Q213

1H13

Customer Happiness 2.0

Despite industry,
customer happiness is always the most important thing

Beauty

Sound

Touch

Responsiveness

Ubiquity

Tablet Market
2013(e)

Apple

Amazon
ASUS
Google
Microsoft
Samsung
MNCs

Local Brand
White Box

Total TAM 202M

(240M w/ White Brand)
Source: Industry data & ASUS estimates

ASUS Goal

ASUS Pad Strategy

Innovation
Leading
Perfection
Cost

Transformer

Transformer
Pad FHD
Transformer
Pad HD

Nexus
New Nexus7

MeMO
MeMO Pad
HD 7
MeMO Pad
HD 8

ASUS Smartphone Strategy

Innovative Leader

PadFone

FonePad

PadFone
Infinity

FonePad
HD 7

PadFone
mini

FonePad
Note FHD 6

Sell > 1Mu

MeMOFone

MeMOFone
HD 5

Collaboration

Windows Ecosystem

Android Ecosystem

The worlds most admired

leading enterprise in the
new digital era.

ASUSTeK

2Q 2013 Investor Conference

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