Y2015 1H Financial Results By Eric Chen VP of finance & IT Aug, 2015 Y2015 1H Financial Results Consolidate NT$M Y2014 Y2015 QoQ YoY 1H 2H 1Q 2Q 1H 17,425 18,307 8,785 10,027 18,812 14% 8% Gross Margin% 40.7% 39.9% 40.9% 39.7% 40.2% -1.2% -0.5% Operatiing Expense 4,219 4,665 2,240 2,348 4,588 5% 9% Operating Margin% 16.5% 14.4% 15.4% 16.3% 15.9% 0.9% -0.6% Non-Operating Income 46 501 129 -7 122 -105% 165% Effective Tax Rate 19.1% 18.0% 18.5% 18.0% 18.2% -0.5% -0.9% NPAT 2,365 2,567 1,206 1,333 2,539 11% 7% 3.75 4.05 1.91 2.10 4.01 10% 7% Net Sales EPS (NT$) Y2015 1H Sales By Region/Sales Force Local Sales: US 606M, +5% USD$ M Y14 1H Y15 1H GR% 160 182 + 14% 30% 89 93 + 5% 15% Greater China 165 181 + 10% 30% Asia/ Intercon. 75 80 + 5% 13% DM S/ E2E 47 35 - 25% 6% Affiliates 40 34 - 16% 6% 577 606 +5% 100% North America Europe Total Europe DMS/E2E 6% Affiliates 6% North America 30% Asia/Intercon AEU: 77.6M GR%: +6% ADLoG: 15.8M GR%: Asia Intercon. 13% -1% Japan: Korea: AAU/NZ: SAP: Intercon: LATAM Greater China China: Taiwan: Greater China 30% % Europe 15% AiS: 141.5M 12.9M 21.3M 6.2M 11.3M 20.6M 7.3M GR%: GR%: GR%: GR%: GR%: GR%: +19% -1% +16% +12% +9% -17% Affiliates GR%: +13% 36.7M GR%: -2% 3.3M GR% +57% Advansus: ALNC: APOS: A-Cermate: Advantofine CAPS: 11.0M 6.9M 2.8M 4.8M 1.0M 3.4M GR%: GR%: GR% GR%: GR%: GR%: -17% -5% -38% -1% -20% -24% Y2015 1H Sales By Strategic Product Group Local Sales: US 606M, +5% Embedded Design-In Networks & Communications +5% Embedded Core Computing +8% Applied Computing •Blade Computing & Systems •Embedded Box Computer •Medical Computing •Network Appliances •Modular Computing Boards •Embedded Systems •Network & Embedded Switches US 298.7M •Wireless IoT Modules 49%, +6% •Display Systems & Gaming Solutions •Broadcasting & Surveillance Platforms •Industrial Motherboard & DTOS •Network Virtualization Platforms +1% •Portable Computing •Service Automation DTOS •Embedded Peripherals % of Sales, YoY Growth US 79.6M 13%,+2% Industrial-IoT Industrial Automation +1% •Industrial I/O & Controllers •Industrial HMI •Automation Computing •IoT Devices & Solutions •WebAccess+ Solutions •iFactory (Industry 4.0) Solutions •Machine Automation Solutions •Power & Energy Solutions Smart City Solutions Intelligent Systems +10% •Industrial Computers •Industrial Servers & Storage •Intelligent Video Solutions •Intelligent IoT Modules •Transportation Solutions US 181.2M 30%, +5% iConnectivity -2% •Industrial Communications •Industrial Switches Service Automation Platforms •Industrial Mobile Computing •iRetail Platforms •Medical Computing & Tablets •In-Vehicle Computing US 46.4M 8%, +6% Intelligent Service Solutions •Intelligent Hospital •Digital Logistics & Fleet Management •Intelligent Retail & Hospitality Y2015 1H Working Capital Consolidate NT$ M 2013 Full 2014 2015 1Q End 2Q End 1Q End 2Q End Cash Position 4,924 5,649 6,419 6,778 7,564 Accounts Receivable 5,534 5,959 6,328 5,535 6,765 62 65 65 58 65 4,231 4,511 4,588 4,880 4,680 76 85 74 87 71 3,004 3,106 3,238 3,107 3,571 56 59 52 56 53 DSO (Days) Inventory DOH (Days) Accounts Payable Days