Advantech 2011 Financial Results Eric Chen Feb, 24, 2012 [email protected] 1 Revenue & Growth Trends Y2011 USD 861M +23% 1000 900 Revenue in millions, USD 861 800 700 698 600 500 523 482 452 400 444 373 300 334 282 200 249 100 0 2002 * un-audited 2003 2004 2005 2006 2007 Year 2002-2011 2008 2009 2010 2011 Y2011 Financial Overview *Un-Audited, Consolidate Y2011 NT$M Net Sales Y2009 15,323 Y2010 23,031 YoY 1Q 2Q 3Q *4Q 6,497 6,952 6,689 6,396 *Year 26,534 15% -12% 50% 50% 17% 6% 0% 15% Gross Profit % 40.7% 40.0% 37.3% 39.0% 40.0% 39.9% 39.1% -0.9% Gross Profit 6,243 9,205 2,426 2,711 2,675 2,550 10,362 13% Operating Expense 4,442 5,741 1,481 1,582 1,693 1,643 6,398 11% Operating Expense % 29.0% 24.9% 22.8% 22.8% 25.3% 25.7% 24.1% -0.8% Operating Profit 1,801 3,464 945 1,129 982 907 3,964 14% Operating Profit % 11.8% 15.0% 14.5% 16.2% 14.7% 14.2% 14.9% -0.1% 246 193 211 42 110 23 386 100% 14.0% 16.1% 21.8% 16.5% 16.7% 15.8% 17.8% 1.7% YoY Growth Non-operating Income Effective Tax Rate Net Profit AT EPS(NT$) ROE 1,760 3,067 903 978 910 784 3,575 17% 3.50 6.06 1.63 1.77 1.63 1.42 6.44 6% 14.28 22.93 24.70 Y2011 Sales By Product - 1/2 Consolidated Sales: US$861M,+23% Services Automation US 86.5M 10%,+37% Embedded System 57% US 143.0M 17%,+8% Automation US 145.9M 17%,+18% Global Services US 111.8M 13%,+13% % of Sales, YoY Growth US 861M +23% Y2011 Sales By Product - 2/2 Consolidated Sales: US$861M,+23% DMS-NC 43% US 118.5M 14%,+40% DMS-AC US 861M +23% US 124.3M 14%,+22% Embedded Core US 125.9M 15%,+43% % of Sales, YoY Growth Y2011 Sales By Region/Sales Force Local Sales: US$861M, +23% USD$ M Y2010 Y2011 GR% % North America 154 201 +30% 23% Europe/ADLoG 106 147 +38% 17% Greater China 201 243 +21% 28% Asia/Intercon. 105 126 +20% 15% Global DMS 117 133 +13% 16% AiS & Others 5 698 10 861 +100% +23% 1% 100% Total Global DMS 16%, +13% North America 23%, +30% Asia/Intercon. 15%, +20% Greater China 28%, +21% % of Sales, YoY Growth Europe/A-DLoG 17%, +38% Y2011 Working Capital NT$ M 2009 2010 Year Year 2011 1Q 2Q 3Q *4Q Cash Position 3,153 2,288 2,339 2,771 1,868 2,522 Accounts Receivable 2,489 3,338 4,461 4,560 4,791 4,116 55 47 62 63 63 58 2,044 3,531 3,674 4,412 4,537 3,896 77 83 83 97 100 90 1,505 1,759 2,788 2,683 1,829 1,988 56 41 63 58 40 46 DSO(Days) Inventory DHO(Days) Accounts Payable Days *un-audited 7 Y2011 Financial Recap NT$ M *Y2011 Y2010 YoY% Net Sales 26,534 23,031 +15% Sales & Profit YoY increase 15% & 6% respectively, EPS NT 6.44 sets the record high Gross Margin 39.1% 40.0% Net Profit After Tax +40% growth in Embedded core and Network communication -0.9% group. +30% growth in North America and Europe region 13.5% 13.3% +0.2% EPS (元) 6.44 Return on Equity(ROE) *un-audited 24.70 6.01 22.93 +6% Kun-San R&D center is under construction, expected to be launched in 2013 Acquire Advansus 100% share, integration with Embedded core group is ongoing