ASUSTeK March

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Dayna Jacobs
5 years ago
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1 ASUSTeK March

2 Company History Company established. Introduced ASUS MB & card. IPO at Taiwan Stock Exchange Introduced ASUS NB and ODD Giant Lion Plan ASUS become WW#1 MB maker Introduced ASUS phone and PDA ASUS become WW#1 graphics card maker Created Eee PC (netbook) Spun off ODM operation to Pegatron WW#1 MB/card maker and #6 NB/netbook maker Giant Lion Plan II 2

3 ASUS Brand Overview Business Scope Business Group Open Platform System Handheld Products MB & Graphics (WW #1), Server, Networking/WLAN, ODD, Display NB & Netbook (WW #6), Eee products Handheld % of Sales ~30% ~70% ~1% Operation ~10,000 employees, ~3,000 engineers 30+ overseas offices 50+ direct service sites in 32 countries & 500+ service partners Brand Equity Brand revenue reached US$ 8.2bn in 2008 Brand value of US$ 1.3bn #9 on BusinessWeek InfoTech 100 Inspiring Innovation Persistent Perfection 3

4 Best Innovation & Perfection 3056 awards in 2008 Design Awards, Media Review Awards, Editor s Choices and Channel Recommendations 4

5 Best Quality & Service No.1 in Reliability ~SquareTrade, Rescuecom and PC Magazine No.1 in Quality & Service ~Wall Street Journal ASIA Best in Quality, Functionality & Service ~Taiwan MIC Russia: No.1 laptop service award ~FERRA China: The most reliable service award ~CCIID India: No.1 MB service ~CRN 5

6 Giant Lion Strategy / KPI Cybernetic Mgt. Market Position Relative market share with respect to markets, channels of distribution and target groups Value to the customer Relative quality of the products Pricing power Relative costs Innovative Strength Innovation rate Hit-to-flop ratio Time to market Price-driven costing Relative number and size of customers Relative service Marketing index Productivity (V/C): Total-factor-productivity Productivity of labor Productivity of capital Productivity of time Productivity of knowledge 6

7 Giant Lion Position Market Position Nobody Giant Pig Silver Leopard Giant Lion Giant Lion King state (p,q) state (p,q) state (P,q) state (P,Q) state (P 2,Q 2 ) MB Graphics EPC NB EeeFamily Handheld 7

8 Appendix 8

9 Historical Results and Challenges 800 in NT$bn Revenue Net Income (left-hand scale, group consolidated) (right-hand scale) "96 "97 "98 "99 "00 "01 "02 "03 "04 "05 "06 "07 "08 0 Challenges Actions Internet bubble MB price competition Established virtual BU MB Giant Lion strategy & Asrock Expanded NB, Networking & ODM Credit crisis NB price competition BG/sales unit reorg. GL 2 plan - NB & MB Handheld, E family 9

10 Brand Operation Summary in NT$ mn Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Revenue 62,967 58,062 78,259 67,592 46,213 49,263 68,236 84,750 GM% 17.7% 17.9% 15.8% 4.7% 2.9% 10.7% 16.0% 13.3% OPM% 10.6% 7.6% 6.9% -7.5% -6.7% 0.2% 5.8% 4.2% Brand OPM 6,665 4,397 5,414 (5,071) (3,107) 114 3,990 3,561 in mn units NB EPC MB 6+ ~5 6+ ~5 ~5 ~5 ~6 5.3 * Based on unaudited consolidated brand financials Q408~Q109 Big drop in demand, excess inventories, FX loss and wrong cost. Q109~Q409 Established prudent inventory management and FX hedging policy. Business group reorganization & realignment of global sales units. Strengthened product leadership and re-engineered business process. Giant Lion II Plan. 10

11 Product Mix in NT$bn Others Handheld Eee PC NB MB& cards Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Others 11% 13% 10% 10% 14% 12% 9% 11% Handheld 3% 3% 2% 1% 1% 1% 1% 1% EPC 10% 18% 22% 23% 20% 21% 22% 19% NB 48% 45% 47% 48% 36% 43% 49% 55% MB & Cards 28% 21% 19% 18% 29% 23% 19% 14% 11

12 Region Mix in NT$bn 85 Others APAC EURP Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Others 7% 8% 11% 9% 14% 17% 16% 19% APAC 39% 39% 36% 31% 43% 48% 42% 30% EURP 54% 53% 53% 60% 43% 35% 42% 51% 12

13 NB & Netbook Shipment in million units "04 "05 "06 "07 "08 "09 "10 NB EPC Total >30% growth 13

14 Key Management Objectives Facts Key mgt. objectives Become one of the most admired leading enterprises Dominant position on MB/Graphics business A top brand with the lion s s share in MB/NB/netbook market Lean cost mindset and operation Optimize sales, operation and supply chain management Proven innovation and design capability Strong footprints in high growth emerging markets Invest in and deliver growth in new markets, products and channels 14

15 Thank you For more information, please visit or contact us via 15

ASUSTeK. 1Q 2011 Investor Conference

ASUSTeK. 1Q 2011 Investor Conference ASUSTeK 1Q 2011 Investor Conference 1 Disclaimer ASUSTeK s presentation contains forward-looking statements subject to significant risks and uncertainties. Actual results may differ materially from those