ir 20124q tse - emops.twse.com.tw

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ASUSTeK

4Q 2012 Investor Conference

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

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Agenda

• 4Q 2012 Financial Result

• Business Highlights

• Strategy & Outlook

• Q & A

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4Q 2012 Financial Result

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4Q 2012 Brand I/S (YoY)(unaudited brand consolidated financials)

* EPS $ 7.82 based on 752.8m shares

*

in NT$ Mn 4Q 2012 % 4Q 2011 % YoY

Net Revenue 116,601 100.0% 102,646 100.0% 14%

COGS (100,808) (86.5%) (88,673) (86.4%) 14%

Gross Profit 15,793 13.5% 13,973 13.6% 13%

Operating Expenses (9,738) (8.4%) (9,110) (8.9%) 7%

Operating Income 6,055 5.2% 4,863 4.7% 25%

Non-OP Items 1,269 1.1% 561 0.5% 126%

Pre-Tax Income 7,324 6.3% 5,424 5.3% 35%

Tax (1,438) (1.2%) (543) (0.5%) 165%

Net Income 5,886 5.0% 4,881 4.8% 21%

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4Q 2012 Brand I/S (QoQ)(unaudited brand consolidated financials)

in NT$ Mn 4Q 2012 % 3Q 2012 % QoQ

Net Revenue 116,601 100.0% 111,436 100.0% 5%

COGS (100,808) (86.5%) (96,993) (87.0%) 4%

Gross Profit 15,793 13.5% 14,442 13.0% 9%

Operating Expenses (9,738) (8.4%) (8,678) (7.8%) 12%

Operating Income 6,055 5.2% 5,764 5.2% 5%

Non-OP Items 1,269 1.1% 1,789 1.6% -29%

Pre-Tax Income 7,324 6.3% 7,553 6.8% -3%

Tax (1,438) (1.2%) (839) (0.8%) 72%

Net Income 5,886 5.0% 6,714 6.0% -12%

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2012 Brand I/S (YoY)(unaudited brand consolidated financials)

* EPS $ 29.79 based on 752.8m shares

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in NT$ Mn 1~4Q 2012 % 1~4Q 2011 % YoY

Net Revenue 413,145 100.0% 350,256 100.0% 18%

COGS (356,852) (86.4%) (301,771) (86.2%) 18%

Gross Profit 56,293 13.6% 48,485 13.8% 16%

Operating Expenses (34,283) (8.3%) (30,655) (8.8%) 12%

Operating Income 22,011 5.3% 17,830 5.1% 23%

Non-OP Items 4,916 1.2% 1,886 0.5% 161%

Pre-Tax Income 26,927 6.5% 19,715 5.6% 37%

Tax (4,504) (1.1%) (3,137) (0.9%) 44%

Net Income 22,422 5.4% 16,578 4.7% 35%

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4Q 2012 Non-OP Items(unaudited brand consolidated financials)

Non-OP Items 4Q 2012 3Q 2012 QoQ 4Q 2011 YoY

Interest Income (net) 89 56 58% 51 75%

Investment Income 556 202 175% 146 280%

Pegatron 645 329 96% 235 174%

Askey (138) (91) -51% (14) -884%

Others 50 (35) 241% (74) 167%

Exchange Gain / (Loss) 534 1,175 -55% 214 149%

Dividend Income 423

Other Income (net) 90 (67) 234% 149 -40%

Total Non-OP items 1,269 1,789 -29% 561 126%

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4Q 2012 Brand B/S

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

in NT$ Mn Dec 31, 2012 Sep 30, 2012 QoQ Dec 31, 2011 YoY

Cash & cash equivalents 48,726 42,572 14% 40,542 20%

Accounts receivable 59,892 66,396 -10% 49,285 22%

Inventories 75,154 70,213 7% 53,374 41%

Current Assets 194,314 190,113 2% 163,684 19%

Long-term investments 50,946 49,628 49,969

Fixed assets 4,835 4,532 4,166

Other assets 2,115 2,160 1,905

Total Assets 252,209 246,433 2% 219,724 15%

Accounts payable 57,869 55,481 4% 49,237 18%

Current Liabilities 121,729 123,215 -1% 100,101 22%

Total Liabilities 126,147 127,652 -1% 104,776 20%

Paid-in capital 7,528 7,528 7,528

Stockholders' equity 126,062 118,781 6% 114,948 10%

Days of Inventory 68 66 61

Days of AR 47 54 44

Days of AP 58 52 56

CCC Days 57 68 49

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Business Highlights

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Revenue Growth

In NT$ billion

YoY +23% +31% +9% +14%

350

413

2011 2012

91 94 111 117

1Q 12 2Q 12 3Q 12 4Q 12

74 72

102 103

1Q 11 2Q 11 3Q 11 4Q 11

17.8

22.0

2011 2012

4.75.4 5.8 6.1

1Q 12 2Q 12 3Q 12 4Q 12

3.54.2

5.3 4.9

1Q 11 2Q 11 3Q 11 4Q 11

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Operating Profit Growth

In NT$ billion

YoY +37% +28% +10% +25%

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4Q 2012 Revenue Mix

By Product By Region

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2012 Product Mix

2012 2011

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2012 Region Mix

2012 2011

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1Q 2013 Shipment Outlook

targets

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

NB/hybrid 4.1m 4.4m 5.0m 5.5m 4.7m

EPC 0.9m 1.1m 0.8m 0.3m -

EPAD 0.6m 0.8m 2.3m 3.0m 3.0m

MB 5.5m 5.4m 5.8m 5.5m 5.0m

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2013 Shipment Outlook

2011 2012 2013 targets

NB/hybrid 14.7m 19.0m 20~25m*

EPC 4.9m 3.1m -

EPAD 1.8m 6.7m >12m

MB 23.2m 22.2m 22~24m

* Note: Total Windows based device to deliver >10% YoY revenue growth.

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Strategy & Outlook

Ubiquitous Cloud Computing (UCC)

SoLoMo．Personalize

2012-2015 Key UCC Device TAMUnit: Million

Source: PC & Tablet, Gartner, Q4 2012 ; Smartphone, IDC, Sep 2012

Desktop & Mobile PC Tablet Smartphone

2-in-1 (NB ∙ Tablet) 3-in-1 (NB ∙ Tablet ∙ Smartphone)

TouchBeauty ResponsivenessSound Ubiquity

Customer Happiness 2.0

4,158 Awards won in 2012

7% Growth

ASUS was nominated for a record breaking 11 awards across 9

categories at this years annual T3 awards (the biggest annual

awards in the industry). We won a total of 5 which is amazing

including Tech Brand of the Year, beating Apple and Samsung Tech Brand of the Year, beating Apple and Samsung Tech Brand of the Year, beating Apple and Samsung Tech Brand of the Year, beating Apple and Samsung

who only won 1 each.

To have that may wins at T3 is nearly unheard of.... The only other The only other The only other The only other

manufacture to win 5 awards in one night was apple about 3 manufacture to win 5 awards in one night was apple about 3 manufacture to win 5 awards in one night was apple about 3 manufacture to win 5 awards in one night was apple about 3

years ago!years ago!years ago!years ago!

Source: Metro Newspaper

Circulation: 3.4 million

Date: 09/Oct/2012

“Many say the Transformer tablets are the iPad’s number one

challenger, while it’s Ultrabooks are beyond reproach. The

innovative, bold company is on a roll. Has ASUS’s time comeHas ASUS’s time comeHas ASUS’s time comeHas ASUS’s time come?” ?” ?” ?”

T3, Gadget Award 2012

Compete(Legacy)

G, N, K series

Win(Touch)

VivoBook

LeadTAICHI

ZENBOOK

Transformer Book

ASUS NB Windows 8 Strategy

ZENBOOK

TouchTAICHI

Transformer

Book

(NB) Hero Innovation · Wow Experience

VivoBook

S200

VivoBook

S300/S400

VivoBook

S500/S550

VivoBook

(NB) Hero Innovation · Wow Experience

(Tablet) Hero Innovation · Wow Experience

Mar Jun

ME172

Nexus 7

TF700T

ME301

Hero

Products

沉魚落雁之沉魚落雁之沉魚落雁之沉魚落雁之姿姿姿姿

出神入化出神入化出神入化出神入化之之之之技技技技

千千千千錘百練之錘百練之錘百練之錘百練之質質質質

怦怦怦怦然心動之價然心動之價然心動之價然心動之價

Micro SD Up to 32GB

Up to 9 Hours Battery Life Intel® Atom™ Z2420 1.2GHz

Fantastic Vivid 7” DisplayIPS panel, HD 1280 x 800

Auto Focus Rear Camera

720P Video Recording

Full 3G PhoneDual-Microphone for Noise suppression +

Echo cancelation

Meeting

Speaker

On the Go

HeadsetReceiver Bluetooth

Streamlined Metallic FinishMicro SD & SIM discretely hidden

(Fonepad) Hero Innovation · Wow Experience

(Smartphone) Leading Innovation

4.7” / 10” Panel1280 x 800 HD IPS1.2/13 MP Camera, F2.4

5” / 10” Panel1920 x 1080 FHD IPS2/13 MP Camera, F2.0Voice AgentMetal Craft

2012 WW ASUS Mobile PC Business

Source: IDC, Feb 2013

WW ASUS market share WW YOY Growth – ASUS vs. TAM

NO. 3 ASUS_GR% > TAM_GR%

ASUS NB Growth Momentum

China

North America South America

ASIA

Source: IDC, Feb 2013

Market share%

WW ASUS market share WW YOY Growth – ASUS vs. TAM

2012 WW ASUS Tablet Business

3X TAM GR%NO. 4

Source: IDC, Feb 2013

Tablet Ecosystem

2012 2013(e)

AppleSamsung

Amazon

Other

brandWhite

box

Apple

ASUS

Samsung

Amazon

Other

brand

Total TAM 126M Total TAM 203M

Source: Gartner, Q4 2012

White

box

2013 ASUS Goal

Smartphone Leading Innovation

2-in-1NB & Tablet

NO. 2

Touch NB NO. 1

The world’s most admired

leading enterprise in the

new digital era.

The world’s most admired

leading enterprise in the

new digital era.

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Thank you