Asustek Computer Inc. · TWSE:2357
Asustek Computer — Q2 2018 Earnings Presentation
33 slides from Asustek Computer's earnings presentation, August 2018
Slide 1: ASUSTeK 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: Innovation - Agility
SUS ale & Innovation - Agility ~
Slide 14: Connected Service & New Retail
14 Connected Service & New Retail Po wm Smart Enterprise © alot (ABC)
Slide 15: 2018 PC: 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
Slide 28: Q&A
QeEA f= >UJ—> IN SEARCH OF INCREDIBLE
Slide 29: Questions 1-3
1. ASUS hopes to have over 10% YoY growth for ROG notebooks, what is the percentage growth for the new CPU? Also, when will the new VGA GPUs arrive on the market? 2. What is ASUS’ reaction to the supply chain shortages for smartphone? Since Intel’s chip has been delayed as well, will you consider to
Slide 30: Questions 4-6
4. SYS products in Europe seem to be suffering more difficult competition and pressures, please comment as to why that is so. 5. Regarding the Intel CPU delay, how is ASUS handling this situation? 6. This year Commercial PC business is doing better than Consumer PCs. For the long term, how will ASUS
Slide 31: Questions 7-9
7. Can you provide your business growth expectations for the second half of the year Q3 and Q4? 8. How is the situation for the gaming market? Will ASUS maintain or improve its profit rates for gaming PCs? 9. What was the percentage for Gaming PC in Q2? What do you expect it will be in the second ha
Slide 32: Questions 10-12
10.Has the decrease in the bitcoin market affected your company’s revenues? 11.What is the composition of your gaming products? Do you expect to separate your gaming operations into an independent business? What are your gaming market strategies including those for the esports teams? 12.How is ASUS
Slide 33: Questions 13-15
13.What are your expectations for the mobile gaming market? When will ROG Phone be available on the market? 14.How will you turn the smartphone business into profit or at least break even? 15.What is the status on 5G development for smartphones? When do you expect to produce 5G smartphones? Confiden