2013 1H Financial Results 2013/08/14 By Eric Chen VP of Finance & IT [email protected] Y2012 1H Financial Highlights Consolidated NT$M Y2012 Y2013 QoQ% YoY% 1H 2H 1Q 2Q 1H 13,498 14,041 6,630 7,809 14,438 18% 7% 5,359 5,531 2,766 3,194 5,961 15% 11% 39.7% 39.4% 41.7% 40.9% 41.3% -0.8% 1.6% Operating Expense 3,386 3,642 1,801 1,900 3,701 5% 9% Operating Profit 1,974 1,889 965 1,295 2,260 34% 14% 104 270 102 229 25% 120% 1,732 1,758 867 1,993 30% 15% 3.11 3.12 1.52 3.50 30% 13% Net Sales Gross Profit GP% Non-Operating Income NPAT EPS (NT$) *Highest EPS in single season since 2010 127 1,126 * 1.98 Y2013 1H Sales By Region/Sales Force Local Sales: US 482M, +7% USD$ M North America Y2012 1H Y12 GR% Y2013 1H GR% % 129 +15% 150 +16% 31% 69 -11% 67 -3% 14% Greater China 122 -5% 140 +15% 29% Asia/Intercon. 68 +13% 69 3% 14% DMS/E2E 42 -29% 34 -21% 7% Affiliates 21 451 -16% -2% 23 482 +10% 7% 5% 100% Europe Total DMS/E2E 7%, -21% Asia/Intercon. 14%, +3% Affiliates 5%, +10% North America 31%, +16% Greater China 29%, +15% % of Sales, YoY Growth Europe 14%, -3% Y2013 1H Sales By Sector - 1/2 • • • • Industrial I/O Machine Automation Industrial HMI Automation Controller iService Embedded Market Industrial Market • • • • Embedded Board Embedded System Gaming Intelligent Display Market • Digital Logistics • Digital Healthcare • Digital Retail & Hospitality -Stable Growth; Higher Margin - Leading Position in ECT - Most growth in market size -Far & Wide AOnline Sales Model - Expected to have 12-15% growth in upcoming 3 years due to greater bandwidth demand. -Through M&A and expending the partnership, leads innovation growth. -More Focus on Power & Engine; Machine Automation .. Virtual Market. - Automation Group - Embedded - Embedded US 78.2M 16%, -1% US 65.7M 14%, +6% US 125.7M 26%,+22% System Core - Services Automation US 35.6M 7%, +10% Y2013 1H Sales By Sector - 2/2 Advantech Global Services Design & Manufacturing Services • Global CTOS Services • Global RMA Services • Trusted and worry-free compatible peripherals Services • • • • Established 4 Regional Services Center (China, TW, US, EU), Provide - World-Class x86/RISC design, manufacturing and quality assurance capabilities - Fast deliver CTOS - Certificated Industrial Modules - High-quality repair services - AGS US 57.4M 12%, -2% Blade Computing Platforms Network Application Platforms DSP Processing Platforms Medical Computing Platforms - Strong DSP customization & integration team; highly recognized by TI(Texas Instruments) - World leading ATCA high performance platforms. - NC-DMS US 68.3M 14%, +21% - AC-DMS US 51.5M 11%,-13% Y2013 1H Working Capital consolidated 2013 2011 2012 Year-End Year-End Cache Position 3,397 5,022 5,914 6,574 Account Receivable 3,861 4,281 4,555 5,201 53 55 60 65 3,895 3,890 4,156 3,783 DOH (Days) 90 83 94 82 Account Payable 1,710 2,327 2,836 2,653 46 49 63 56 NT M DSO (Days) Inventory Days 1Q End 2Q End