Advantech 2014 1H Investors Meeting 2014/02/18 Eric Chen, VP of Finance & IT [email protected] 1 Y2013 Financial Results Consolidate NT$M Y2011 Y2012 26,434 Y2013 YoY% 1Q 2Q 3Q *4Q *Full 27,521 6,630 7,809 7,949 8,268 30,656 15% 4% 6% 8% 13% 18% 11% 39.8% 39.5% 41.7% 40.9% 40.3% 40.3% 40.7% 1.2% 10,525 10,882 2,766 3,195 3,200 3,330 12,491 15% Operating Expense 6,498 7,032 1,801 1,900 1,952 2,158 7,811 11% Operating Income 4,027 3,850 965 1,295 1,248 1,172 4,680 22% 318 374 102 127 164 109 502 34% 17.8% 17.7% 18.8% 20.8% 21.5% 19.8% 20.3% 2.6% Net sales YOY growth Gross Profit% Gross Profit Non-operating income Effective Tax Rate Net Profit AT 11% 3,571 3,478 867 1,126 1,108 1,027 4,129 19% EPS(NT$) 6.44 6.22 1.52 1.98 1.95 1.81 7.26 17% ROE 24.4 20.9 *Un-audited 22.4 Y2013 Sales By Region USD$ M Y2012 Y2013 GR% 274 312 +14% 30% Europe 135 139 +3% 14% Greater China 259 301 +16% 29% Asia/Intercon. 135 143 +6% 14% DMS/E2E 73 68 -7% 7% Affiliates 44 920 62 1,025 +41% +11% 6% 100% DMS/E2E 7% Affiliates 6% Asia/Intercon. Affiliates/Others North America 30% Advansus: 30.9M GR% : +25% Netstar: 8.5M GR% : -20% Others: 9.5M GR%: +49% BroadWin: 1.2M GR% : -47% Japan: Korea: AAU/NZ: SAP: Intercon: LATAM: Europe Greater China 29% % North America Total Asia/ Intercon. 14% Local Sales: US 1,025M, +11% Europe 14% GR% GR% GR% GR% GR% GR% : -3% : +25% : -4% : +13% : -9% : +11% Greater China Europe: 107.0M GR%: +2% ADLoG: +9% 31.8M GR%: 20.7M 43.4M 12.2M 19.4M 31.1M 16.5M China: Taiwan: AiS: 227.1M GR%: +15% 68.9M GR%: +22% 5.4M GR%: +26% Y2013 Sales By Virtual Company Local Sales: US 1,025M, GR:+11% US 207.0M 20%,+13% US 275.1M 27%,+9% AGS US 122.4M 12%,+7% US 259.5M 25%,+18% % of Sales, YoY Growth US 161.0M 16%, +5% Y2013 Working Capital 2011 2012 Full Full Cash Position 3,397 5,022 5,914 6,574 3,765 4,924 Account Receivable 3,808 4,281 4,555 5,201 5,124 5,584 53 55 60 65 59 62 3,895 3,890 4,156 3,783 3,951 4,025 90 84 94 82 77 75 1,710 2,327 2,836 2,653 2,684 2,925 46 49 63 56 52 54 NT$ M DSO(days) Inventory DOH(Days) Account Payable Days *Un-audited 2013 1Q end 2Q end 3Q end *4Q end