Asustek Computer Inc. · TWSE:2357
Asustek Computer — Q2 2020 Earnings Presentation
23 slides from Asustek Computer's earnings presentation, August 2020
Slide 1: ASUSTeK 2Q 2020 Investor Conference
ASUSTeK 2Q 2020 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 2020 Financial Result • Business Highlights • Strategy & Outlook •Q&A 3
Slide 4: 2Q 2020 Financial Result
2Q 2020 Financial Result 7 te >US=> INSEARCH OF INCREDIBLE
Slide 5: 1H 2020 Brand P&L
1H 2020 Brand P&L in NT$ Mn 2020 1H % 2019 1H % YoY Net Revenue 149,113 100.0% 154,775 100.0% -4% COGS (124,701) (83.6%) (135,321) (87.4%) -8% Gross Profit 24,412 16.4% 19,454 12.6% 25% Operating Expenses (16,686) (11.2%) (17,558) (11.3%) -5% Operating Profit 7,726 5.2% 1,896 1.2% 308% Non-OP Items
Slide 6: 2Q 2020 Brand P&L
2Q 2020 Brand P&L in NT$ Mn 2020 2Q 2020 1Q QoQ 2019 2Q YoY Net Revenue 85,070 64,043 33% 71,272 19% COGS (71,191) (53,510) 33% (61,410) 16% Gross Profit 13,879 10,532 32% 9,862 41% Operating Expenses (9,033) (7,653) 18% (8,852) 2% Operating Profit 4,846 2,879 68% 1,010 380% Non-OP Items 2,151 (1,63
Slide 7: 2Q 2020 Brand P&L (pro forma – excluding phone's P&L)
2Q 2020 Brand P&L (pro forma – excluding phone’s P&L) Phone Phone in NT$ Mn 2020 2Q old models new models W/O Phone Net Revenue 85,070 985 378 83,707 COGS (71,191) (680) (297) (70,214) Gross Profit 13,879 305 81 13,493 Operating Expenses (9,033) (54) (959) (8,020) Operating Profit 4,846 251 (879) 5,
Slide 8: 2Q 2020 Brand Non-OP Items
2Q 2020 Brand Non-OP Items Non-OP Items 2020 2Q 2020 1Q QoQ 2019 2Q YoY Interest Income (net) 160 241 -34% 335 -52% Investment Income 323 (73) 543% 137 135% Askey (107) (296) 64% (57) -89% Others 430 224 92% 194 121% Exchange Gain/(Loss) 1,599 (1,906) 184% 311 415% Dividend Income 2 Other Income (ne
Slide 9: 2Q 2020 Brand Balance Sheet
2Q 2020 Brand Balance Sheet in NT$ Mn Jun 30, 2020 Mar 31, 2020 QoQ Jun 30, 2019 YoY Cash & equivalents 62,178 62,168 0% 61,703 1% Accounts receivable 71,853 44,037 63% 62,949 14% Inventories 81,444 76,699 6% 75,039 9% Current Assets 225,738 193,108 17% 208,186 8% Long-term investments 78,618 67,533
Slide 10: Business Highlights
Business Highlights 7 te >US=> INSEARCH OF INCREDIBLE
Slide 11: 2Q 2020 Product Mix
2Q 2020 Product Mix 2Q 2020 2Q 2019 Component Component & others & others 34% 30% PC PC 66% 70% * Excluding revenue of smartphones 11
Slide 12: 2Q 2020 Region Mix
2Q 2020 Region Mix 2Q 2020 2Q 2019 Americas Americas 23% 23% EURP EURP 34% 31% ASIA ASIA 43% 46% * Excluding revenue of smartphones 12
Slide 13: 3Q 2020 Business Outlook
3Q 2020 Business Outlook • PC QoQ +30% • Component QoQ +10% 13
Slide 14: Strategy & Outlook
Strategy & Outlook 7 te >US=> INSEARCH OF INCREDIBLE
Slide 15: Key Business Objectives
Key Business Objectives Focus on areas of growth Expand addressable Manage market market dynamics 15
Slide 16: Business Growth in Q2 2020
Business Growth in Q2 2020 Chromebook > 30% YoY (Revenue YoY) (Units YoY) 16
Slide 17: Potential Sustainable Growth for PC Market
Potential Sustainable Growth for PC Market • As working and studying from home accelerate development of new usage scenarios, PC demand could experience double-digit growth over the long term. Number of PCs per Household US Europe 17
Slide 18: ASUS AIOT Developments
ASUS AIOT Developments Smart Medical Smart Manufacturing Super Computer 18
Slide 19: ASUS PC Strategy and Aspirational Goals
ASUS PC Strategy and Aspirational Goals Expected market growth rate over the next three years ASUS aspirational goals (growth rate) All1PC 2 Gamers 3 Users Business 4 Creator 5 Student ASUS path to Design Thinking NPS Brand Position aspirational goals Connected AI Evolution CRM 19 Services
Slide 20: Total Gaming Solutions Provider
Total Gaming Solutions Provider • ASUS offers total gaming solutions to revolutionize gaming experiences. 20
Slide 21: Gaming is One Third of ASUS Brand Revenue
Gaming is One Third of ASUS Brand Revenue ASUS provides the most comprehensive portfolio of gaming devices, including motherboards, graphics cards, notebooks, desktops, displays, routers, accessories and ROG Phone. 21
Slide 22: Gaming Notebook Growth by Region
Gaming Notebook Growth by Region ASUS gaming notebook shipments YoY growth (1H 2020) 22
Slide 23: Q&A
Q&A f= >U5—> IN SEARCH OF INCREDIBLE