ASUSTeK. 4Q 2013 Investor Conference

Transcription

1 ASUSTeK 4Q 2013 Investor Conference

2 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. 2 Confidential

3 Agenda 4Q 2013 Financial Result Business Highlights Strategy & Outlook Q & A 3 Confidential

4 4 4Q 2013 Financial Result

5 4Q 2013 Brand I/S (QoQ) (unaudited brand consolidated financials) in NT$ Mn 4Q 2013 % 3Q 2013 % QoQ Net Revenue 119, % 107, % 12% COGS (104,445) (87.4%) (93,814) (87.6%) 11% Gross Profit 15, % 13, % 13% Operating Expenses (9,709) (8.1%) (8,419) (7.9%) 15% Operating Income 5, % 4, % 10% Non-OP Items 1, % 1, % 21% Pre-Tax Income 7, % 6, % 13% Tax (1,597) (1.3%) (1,526) (1.4%) 5% Net Income 5, % 4, % 15% * EPS $ 7.7 based on 742.8m shares * 5 Confidential

6 4Q 2013 Brand I/S (YoY) (unaudited brand consolidated financials) in NT$ Mn 4Q 2013 % 4Q 2012 % YoY Net Revenue 119, % 116, % 2% COGS (104,445) (87.4%) (100,808) (86.5%) 4% Gross Profit 15, % 15, % -5% Operating Expenses (9,709) (8.1%) (9,738) (8.4%) 0% Operating Income 5, % 6, % -12% Non-OP Items 1, % 1, % 55% Pre-Tax Income 7, % 7, % 0% Tax (1,597) (1.3%) (1,438) (1.2%) 11% Net Income 5, % 5, % -3% 6 Confidential

7 2013 Brand I/S (YoY) (unaudited brand consolidated financials) in NT$ Mn 2013 % 2012 % YoY Net Revenue 421, % 413, % 2% COGS (367,075) (87.1%) (356,853) (86.4%) 3% Gross Profit 54, % 56, % -4% Operating Expenses (34,629) (8.2%) (34,283) (8.3%) 1% Operating Income 19, % 22, % -11% Non-OP Items 7, % 4, % 44% Pre-Tax Income 26, % 26, % -1% Tax (5,327) (1.3%) (4,504) (1.1%) 18% * EPS $ 28.9 based on 742.8m shares * Net Income 21, % 22, % -4% 7 Confidential

8 4Q 2013 Non-OP Items (unaudited brand consolidated financials) Non-OP Items 4Q Q 2013 QoQ 4Q 2012 YoY Interest Income (net) (97) % % Investment Income % % Pegatron Ask ey % (138) 240% Others (97) % % Exchange Gain / (Loss) % % Dividend Income % - Other Income (net) % % Total Non-OP items 1,962 1,620 21% 1,269 55% 8 Confidential

9 4Q 2013 Brand B/S in NT$ Mn Dec 31, 2013 Sep 30, 2013 QoQ Dec 31, 2012 YoY Cash & cash equivalents 62,169 40,833 52% 48,726 28% Accounts receivable 66,565 61,635 8% 59,892 11% Inventories 71,681 76,240-6% 75,154-5% Current Assets 209, ,422 12% 194,314 8% Long-term investments 53,057 50,283 50,946 Fixed assets 4,850 4,400 4,835 Other assets 8,137 7,023 2,115 Total Assets 275, ,128 11% 252,209 9% Accounts payable 55,333 47,214 17% 57,869-4% Current Liabilities 133, ,087 15% 121,729 10% Total Liabilities 140, ,771 16% 126,147 11% Paid-in capital 7,428 7,528 7,528 Stockholders' equity 135, ,358 6% 126,062 7% Days of Inventory Days of AR Days of AP CCC Days *CCC calculation based on net ending inventory balance and quarterly unaudited consolidated brand financials Confidential

10 10 Business Highlights

11 4Q 2013 Revenue Mix By Product By Region 11 Confidential

12 2013 Product Mix Confidential

13 2013 Region Mix Confidential

14 1Q 2014 Shipment Outlook targets 1Q Q Q Q Q 2014 NB/hybrid 4.7m 4.1m 4.5m 5.5m 4.8m EPAD 3.0m 2.0m 3.5m 3.6m 2.4m MB 5.0m 5.0m 5.5m 5.2m 5.0m 14 Confidential

15 15 Strategy & Outlook

16 創新迎戰變中求勝 In Search Of Incredible

17 Aiming 3 in 1 Market ZenFone ZENBOOK PadFone VivoBook PadFone mini Transformer Book Fonepad Vivo Tab Nexus 7 Transformer Pad MeMO Pad

18 Customer Happiness 2.0 Despite industry, customer happiness is always the most important thing Beauty Sound Touch Responsiveness Ubiquity

19 Desktop 100% Growth in volume & profit

20 ASUS Chromebox for Meetings Mettings with anyone, anywhere Joint conference with up to 15 participants Instant Collaboration Wireless screen sharing Easy to management Up-to-date features and security fixes

21 ASUS NB Strategy Lead Zenbook /Gaming Attack Clamshell NB Game Changer Transformer Book New EeePC Transformer Book ChromeBook N, K, X Gain share Trio Grow TAM T100, T200 Grow TAM C200, C300 Grow TAM Gain share Grow TAM

22 ASUS NB 2013 Q NO.3 Incredible momentum with T100 Weakening competitors Competitors withdraw

23 T100 EeePC Revival Performance & Mobility Entertainment & Productivity New life to EeePC, Windows tablet & Windows 8 Quad-core CPU Battery life (11 hrs) Windows tablet Keyboard docking station with USB 3.0 Microsoft office

24 ASUS Tablet Strategy Innovation Leading Perfection Cost Innovative Leader (Premium Position) Disruptive Innovation Max (Value / Cost)

25 Tablet Market (e) ASUS Goal Source: Industry data & ASUS estimates

26 十年磨劍 破繭而出

27 ASUS Smartphone Design Philosophy 沉魚落雁之美 千錘百練之質 出神入化之技 怦然心動之價 Benchmarking Apple & Samsung Incredible price

28 ASUS Smartphone Strategy Innovative Leader (Premium Position) Disruptive Innovation Max (Value / Cost) 沉魚落雁之美 出神入化之技 千錘百練之質 怦然心動之價

29 PadFone X PadFone... the Best Phone-to-Tablet Transformer Series is Landing Exclusively at AT&T -CNET Finally, one of the most interesting Android devices is coming to the United States - Android Authority PadFone X won CES 2014 Editors Choice Awards (USA Today)

30 ZenFone Styling Design Color DIY Gorilla Touch Panel ASUS TruVivid Technology Smoothest Touch Pixel Master Camera Sonic Master Audio 1080P Video Playback 42Mb DC-HSPA+

31 ZenUI ZenUI seeks to simplify the user experience really feels quite pleasant proved responsive and snappy -PhoneArena

32 The world s most admired leading enterprise in the new digital era.

33 Q & A

34 UBS, Analyst 1. Is it possible to raise 2014 shipment target? 2. Your OPM% target in 2014? 3. Please comment on the relationship and nexus project with Google? 4. Handset shipment target in this year? 34 Confidential

35 Fubon Securities, Analyst 1. Considering the changes in NB industry landscape, possible upsides in your 2014 shipment? 2. The plan and outlook on more 2 in 1 devices? 35 Confidential

36 Unidentified Investor 1. Is the gross margin of smartphone lower than corporate average gross margin? 2. Will you work with telcom carriers on ZenFone distribution? 36 Confidential

37 Robert Cheng, Merrill Lynch, Analyst 1. With more handset volumes, do you see higher IP risk, will you increase the IP reservation per unit for smartphone? 2. Your headset distribution in terms of regional exposure? 3. As you use relatively more Intel solutions on handsets, what might be different in terms of customer perception? 37 Confidential

38 Ellen Tseng, Macquarie, Analyst 1. Does Intel provide some support to your phone business, as ZenFone has Intel Inside label with it? 38 Confidential

39 Unidentified Investor 1. What s your view on the overall hardware industry landscape? What s your capital management plan in light of the different landscape? 2. What s the plan on cloud, software or service solutions? 39 Confidential

40 Angela, KGI, Analyst 1. What s your plan on marketing expense and overall OPEX in 2014? 2. What s your plan to expand into more new product areas and channels in China market, for example DT and smartphone? 3. What s the expected percentage of sales on Chrome device in 2014? 40 Confidential

41 Grace Chen, Morgan Stanley, Analyst 1. Does T100 replace some NB demand or create new demand? 2. How will you expand DT business, any potential impact to MB and NB? The margin profile of DT? 41 Confidential

42 Unidentified Investor 1. What s the penetration rate of Touch solution in NB device in 2014? 2. What s the expected regional exposure in terms of sales in 2014? 3. Will you consider using MediaTek or China vendors solution on handsets? 42 Confidential

43 Jenny Lai, HSBC, Analyst 1. What s your product strategy on 2 in 1 or 3 in 1 deices?? 2. As T100 generate nice gross margin, is it a result of the docking keyboard making better margins? 43 Confidential

44 Julie, UBS, Analyst 1. What s your long term targets on OPM% and ROE? Still in 4~5% OPM? 2. Will you use China ODM supplier? 44 Confidential

45 ASUSTeK 4Q 2013 Investor Conference